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Project detail:
AIIB’s Environmental and Social Policy (ESP) is applicable to this project. The project has been placed in Category FI, because the financing structure involves the provision of funds through a financial intermediary (the Fund), whereby AIIB delegates to the Fund Manager the decision-making on the use of AIIB’s proceeds for further investing in accordance with the conditions in the Project’s legal documentation to be agreed with the Fund Manager in the form of eligibility criteria and investment guidelines, and applied through an Environmental, Socia and Governance Framework (ESGF) which is to be used as the Project’s Environmental and Social Management System (ESMS).
The Fund has adopted a risk-based approach to Environmental and Social (ES) management codified in its ESGF. As per this ESGF, the Fund Manager: (i) qualifies and quantifies the ESG risks and impacts of potential investees against the applicable ESG regulatory requirements in their jurisdiction of operation and good international industry practices, (ii) defines measures to align their performance with the same, (iii) identifies and enhances ESG-value addition opportunities, and (iv) drives and monitors ESG performance during the investment holding period. Coal mining, coal transportation and coal-fired power plants, as well as infrastructure exclusively dedicated to support any of these activities will be excluded from eligibility for financing under the Project.
The Fund will invest in operating Indian infrastructure projects in the transportation, power, pipeline, water, digital infrastructure, and other infrastructure related sectors. These operating projects present a variety of environmental and social risks in the form of ongoing legacy issues and operational challenges. The risk will be mitigated using the Fund Manager’s ESGF policy complemented by monitoring and supervision by AIIB.
Note: please download project document attached to this project for more information.
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