• Alignment to IFC’s EV strategy: The Project working on two of the five identified focus areas ie. Public transit electrification and Asset cos. Other identified focus areas include manufacturing, FI financing and logistics) • WBG country strategy on GHG reductions: The project focuses on the carbon reduction replacing the fossil fueled vehicles with EVs, as a climate change supporting act, it is extremely relevant to both the Nepal’s national strategy, WBGs priority for Nepal & IFC country strategy on energy access. • WBG country strategy on energy dependence: Further, energy has been one of the most important sectors for Country as well as WBG. This program strongly encourages the placements of EVs in the market as the mainstream vehicle, which is the best option to manage the demand in the energy surplus scenario, which again connects to the national level. Ministry of the Energy, Water Resources and Irrigation has already assigned NEA with the responsibility to regulate operations of the EV’s charging stations to the NEA. Project is strategically aligned with WB energy DPC where WB is willing to help government in charging policy and regulations. • Nepal National Government Strategy: Besides the demand management, EV’s use of the surplus and spilled energy to charge during the off-peak time is directly relevant to NEA’s financial viability action plan. The financial viability action also speaks of the EV’s promotion. • CPSD alignment: The program opening the electric transport market for the private sector, assessing opportunities and constraints for further involvement and investment depicts its alignment with country strategy, INFRASAP as well as CPSD document promoting energy as of its pillars for implementation. • Socio-Development impact: The e-mobility projects resulting from this program will help to develop the country’s urban transport infrastructure, to improve the quality of life of its urban populations, to offset GHG emissions from the transportation sector and help Nepal meet its commitment to climate mitigation goals. Ground works and investment done for EVs today, would establish a prosperous energy sector, national economy as well as pollution free air to upcoming generations to thrive in, while simultaneously creating well-paid jobs and improving living standards.

Performance Standard	Description and Potential Impact	Mitigation
PS 1. Assessment and Management of Environmental and Social Risks and Impacts	As part of its Due Diligence, and as mandated by IFC's Sustainability Policy, IFC team is screening this project to assess consistency with IFC's Performance Standards.	IFC's advice will be provided in a manner consistent with the principles of the relevant Performance Standards. The IFC team will assist the client, as the final decision maker, in gaining a good understanding of IFC's Performance Standards.