This is a Category B project according to IFC’s Policy on Social and Environmental Sustainability. The project is expected to have limited environmental and social impacts that will be site-specific and temporary, and none are expected to be significant. Risks and impacts can be readily addressed through mitigation measures according to good international industry practice and implementation of effective management practices in line with PSs, procedures and established design.

The project is expected to have a positive impact with respect to climate change by contributing to a reduction of use of cars and minibuses by commuters and therefore a reduction of greenhouse gas (GHG) emissions from automobile traffic.

The main environmental and social considerations during construction and operations of the proposed project, relate to: (i) implementation of appropriate identification of environmental, social, health and safety risks and impacts for both construction and operational phases; (ii) contractor management and occupational health and safety of some 420 construction workers; (iii) management of tree relocation/replantation program; (iv) management of external communication and ongoing reporting to affected communities and related stakeholders; (v) effective community health and safety protection and management including traffic safety; (vi) health and safety management for tunneling; and (vii) avoidance of impacts and protection of the cultural heritage site on the tramline route.