Report and Recommendation of the President to the Board of Directors

Project Number: 52126-002 August 2020

Proposed Equity Investment and Administration of Equity Investment Avaada Energy Private Limited Avaada Solar Phase 2 Project (India) This is a redacted version of the document approved by ADB’s Board of Directors, which excludes information that is subject to exceptions to disclosure set forth in ADB’s Access to Information Policy.

CURRENCY EQUIVALENTS (as of 2 July 2020)

Currency unit – Indian rupee/s (₹)

₹1.00 = $0.01325 $1.00 = ₹75.4595

ABBREVIATIONS ADB – Asian Development Bank AEPL – Avaada Energy Private Limited AVPL – Avaada Ventures Private Limited CAP – corrective action plan CCD – compulsory convertible debenture COVID-19 – coronavirus disease DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH

(German Investment Corporation) EPC – engineering, procurement, and construction E&S environmental and social

ESIA – environmental and social impact assessment ESMS – environmental and social management system FMO – Nederlandse Financierings-Maatschappij voor

Ontwikkelingslanden NV (Netherlands Development Finance Company)

GW – Gigawatt LEAP – Leading Asia’s Private Infrastructure Fund MW – Megawatt PPA – power purchase agreement PV – Photovoltaic US – United States WREPL – Welspun Renewables Energy Private Limited

NOTES

(i) The fiscal year (FY) of Avaada Energy Private Limited ends on 31 March. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2021 ends on 31 March 2021.

(ii) In this report, “$” refers to United States dollars.

Vice-President Diwakar Gupta, Private Sector Operations and Public–Private Partnerships Director General Michael Barrow, Private Sector Operations Department (PSOD) Director Shantanu Chakraborty, Infrastructure Finance Division 1 (PSIF1), PSOD Team leader Keshari Agrawal, Investment Specialist, PSIF1, PSODa Team members Genevieve Abel, Principal Transaction Support Specialist (Integrity),

Private Sector Transaction Support Division (PSTS), PSOD Julian Chenoweth, Principal Counsel, Office of the General Counsel

Stephen Fleming, Senior Investment Specialist, Private Sector Investment Funds and Special Initiatives Division, PSOD

Toni Rose Galang-Ante, Operations Assistant, PSIF1, PSOD Pablo Guadix-Martín, Investment Specialist, Portfolio Management

Division, PSOD Swati Jairath, Investment Officer, PSIF1, PSODa

Aida Khalil Gomez, Senior Safeguards Specialist, PSTS, PSOD Manfred Kiefer, Senior Economist, PSTS, PSOD Amanda A. Satterly, Senior Social Development Specialist (Gender and

Development), PSTS, PSOD Abhishek Singh, Principal Safeguards Specialist, PSTS, PSOD Grachelle Talicuran, Associate Safeguards Officer (Environment), PSTS,

PSOD a Outposted to the India Resident Mission.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS

Page PROJECT AT A GLANCE I. THE PROPOSAL 1 II. THE PROJECT 1

A. Project Identification and Description 1 B. Development Impacts, Outcome, and Outputs 3 C. Alignment with ADB Strategy and Operations 4 D. Project Cost and Financing Plan 4 E. Implementation Arrangements 4 F. Projected Financial and Economic Performance 4

III. THE PROPOSED ADB ASSISTANCE 5

A. The Assistance 5 B. Value Added by ADB Assistance 5 C. Risks 5

IV. POLICY COMPLIANCE 5

A. Safeguards and Social Dimensions 5 B. Anticorruption Policy 7 C. Investment Limitations 7 D. Assurances 7

V. RECOMMENDATION 7 APPENDIXES 1. Updated Design and Monitoring Framework 8 2. List of Linked Documents 11

I. THE PROPOSAL 1. I submit for your approval the following report and recommendation on a proposed equity investment of up to $7,500,000 in Indian rupee equivalent in Avaada Energy Private Limited (AEPL) for the Avaada Solar Phase 2 Project in India. The report also describes the proposed administration of an equity investment of up to $7,500,000 in Indian rupee equivalent to be provided by the Leading Asia's Private Infrastructure Fund (LEAP) for the Avaada Solar Phase 2 Project,1 and if the Board approves the proposed equity investment, I, acting under the authority delegated to me by the Board, approve the administration of the LEAP equity investment. 2. The Asian Development Bank (ADB), the German Investment Corporation (DEG), the Netherlands Development Finance Company (FMO), and Proparco2 are shareholders in AEPL and support its business plan that was approved during the previous investment round (phase 1).3 These shareholders now plan to invest a further $40.0 million in AEPL to support the new solar photovoltaic (PV) projects under power purchase agreements (PPA) that AEPL has subsequently won as part of its expansion plans (phase 2). The proposed investment will help AEPL to expand its solar operating generation capacity from 666 megawatts (MW) as of June 2020 to 2,622 MW by March 2023. The project will help the Government of India to meet its targets for nonfossil fuel-based electric power generation and reduce India’s emission intensity.

II. THE PROJECT A. Project Identification and Description 3. Project identification. AEPL is promoted by Vineet Mittal (Confidential information redacted) through Avaada Ventures Private Limited (AVPL or sponsor). In April 2019, ADB led an investment of $100.0 million in Indian rupee equivalent (Confidential information redacted) in AEPL during which ADB, DEG, FMO and LEAP invested $25.0 million each in Indian rupee equivalent (footnote 3). (Confidential information redacted) In November 2019, AEPL raised an additional $15.0 million of equity in Indian rupee equivalent (Confidential information redacted) from Proparco. As part of this phase 1 financing, the shareholders had also negotiated an option to invest an additional $40.0 million by second half 2020 (Confidential information redacted). The existing shareholders propose to exercise this option to invest further equity in AEPL to support its phase 2 expansion. 4. ADB has prior experience of working with Vineet Mittal. It invested $39 million in June 2014 and $11 million in March 2016 in Welspun Renewables Energy Private Limited (WREPL), a company controlled by Welspun Energy Limited, which was cosponsored by Vineet Mittal and B. K. Goenka. WREPL grew to become India’s largest solar power company, with 1,140 MW of capacity, within 2 years of ADB’s first investment. In 2016, ADB fully exited WREPL. AEPL was formed in 2017 as part of a demerger process from Welspun Energy Limited. 5. AEPL has rapidly grown and, in less than 3 years since its inception in June 2017, has become one of the five largest solar developers in India in terms of operational and under-construction capacity. (Confidential information redacted) AEPL approached ADB and the other

1 Financing Partner: Japan International Cooperation Agency. 2 Proparco is a subsidiary of Agence Française de Développement focused on private sector development. 3 ADB. 2019. Report and Recommendation of the President to the Board of Directors: Proposed Equity Investment

and Administration of Equity Investment to Avaada Energy Private Limited for the Avaada Solar Project in India. Manila.

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existing shareholders to exercise their option to invest another $40.0 million to support this growth. AEPL has also set an ambitious plan to reach about 4 gigawatts (GW) of installed capacity by FY2024. It had initiated an equity issuance process to support its growth plan, however, this process has been delayed because of the coronavirus disease (COVID-19) pandemic. 6. COVID-19 has had the following impacts on AEPL, each of which is expected to be temporary: (i) construction delays for some of AEPL’s projects; (ii) increased working capital; (iii) delayed release of excess equity from its projects where more than the required equity capital was invested because of unforeseen delays in raising debt, and to finance payment of taxes and duties; (iv) a delay in the sale of 26% shareholding in certain solar PV projects tied to commercial and industrial customers; and (v) short-term liquidity constraints affecting the sponsor’s ability to invest any further capital in AEPL. However, the sponsor has already invested a substantial amount of equity capital in the company, and thus remains highly committed to it. These impacts have already been factored in the revised business plan for AEPL. 7. The project provides ADB with an opportunity to further its commitment to scale up clean energy financing4 through an existing client with an established execution track record. ADB’s initiative will support the Government of India’s target to achieve 175 GW of renewable energy generation capacity by 2022, of which 100 GW is expected to be from solar power. 5 The government expects the private sector to lead the solar capacity addition. As of May 2020, operational utility-scale solar generation capacity in India was about 34.9 GW. While power demand fell by 22.3% in April 2020 because of the COVID-19-related national lockdown announced in March 2020,6 the decline moderated to 14.9% in May and 9.7% in June 2020. This disruption is expected to be temporary and, as per a 2020 report from ICRA Limited (an Indian ratings agency and a Moody’s Investors Service company), the annual power demand for FY2021 is expected to decline by only about 1%.7 This decline is not expected to impact solar projects owing to the must-run status provided to them by both state and central distribution companies. Because of reduced power demand, it is the thermal capacity that has faced lower offtake while there has been negligible impact on solar projects, particularly those that have PPAs with state and central distribution companies. 8. Project design. AEPL had secured or was in advanced stages to secure 2,407 MW of solar PV generation PPAs as of 30 June 2020, of which 666 MW were operational; the remainder is expected to be operationalized by FY2022. (Confidential information redacted) PPAs for 1,935 MW are for terms of 25 years and have been acquired based on a competitive bidding process with the lowest power tariff being the key winning criterion. PPAs for the balance 472 MW (for the business plan up to FY2022) are with industrial customers with strong credit ratings and are of varying tenors (5–25 years), with options to renew on mutually agreeable terms. AEPL will bid for new projects based on rigorous project selection criteria that have been agreed upon between the shareholders and AEPL. 9. The 666 MW of operational capacities were constructed on time and within budget, demonstrating AEPL’s strong execution capability. This successful performance is attributable to AEPL’s single-point in-house engineering, procurement, and construction (EPC) approach, which provides AEPL with a unique edge in bidding, where it can control project costs and timelines while retaining any profits related solely to EPC activities.

4 ADB. 2009. Energy Policy. Manila. 5 Government of India, India’s Nationally Determined Contribution submitted to UNFCCC. New Delhi. 6 Financial Express. 2020. Power consumption falls again in June; economic activity dull in Unlock-1 phase. 1 July. 7 V. Kumar. 2020. Covid-19 impact: Indian electricity demand to decline 1 per cent. The Hindu Business Line. 29 April.

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10. The project also addresses some of the issues faced by women in the power sector in South Asia which result in their low levels of participation and them typically working in middle to lower level administrative positions. The major barriers to women’s careers in the power sector have been identified as lack of role models and networking support, limited fieldwork and training opportunities, and inadequate facilities and policies including lack of separate toilets, safe transportation, daycare and flexible work arrangements.8 11. Investee and sponsor. AEPL is the holding company for the renewable energy projects developed by AVPL in India. It also undertakes the entire EPC for the projects it owns. It has 226 full-time employees. AEPL is sponsored by AVPL, which is owned by Vineet Mittal (Confidential information redacted) and Sindoor Mittal (Confidential information redacted). Vineet Mittal is the chair and managing director of AEPL and is primarily responsible for its overall strategy, including project selection, procurement, and liaison with government agencies. Sindoor Mittal is AEPL’s vice-chair and is responsible for AEPL’s strategy and leadership development. Kishor Nair, who has more than 30 years of business experience, leads project execution and implementation. Sudhir Sehgal, who has more than 35 years of industry experience, leads project development, design, and engineering. The finance team has strong relationships with large domestic financial institutions, having raised more than $1 billion of project financing. A separate team has been put in place for land acquisition—a key activity in solar power development—with extensive experience in purchasing and leasing land. 12. ADB conducted integrity due diligence.9 AEPL, its ultimate beneficial owners, and its management do not appear to constitute a significant or potentially significant integrity risk, as there is no unresolved or substantiated adverse media or other information related to them. ADB’s review of the entity does not give ADB cause to believe that it is being used for money laundering or terrorism financing. No tax integrity due diligence was required. B. Development Impacts, Outcome, and Outputs 13. Impacts. The project is aligned with the following impacts: (i) renewable energy generation capacity of 175 GW achieved by 2022,10 and (ii) share of nonfossil fuel-based electric power generation capacity increased to 40% by 2030 (footnote 8). 14. Outcome.11 The project will have the following outcome: renewable power delivered to the domestic grid increased. The project (in aggregate with the phase 1 projects already supported by ADB) will generate about 5,600 gigawatt-hours of clean energy per annum and will contribute to avoiding 4.9 million tons of carbon dioxide emissions annually from 2024 onward.12 The project will also boost local employment and contribute to the local economy through domestic purchases.

8 WePOWER. 2019. The South Asia Women in Power Sector Professional Network Progress Update 2019.

Washington DC. 9 ADB. 2003. Enhancing the Asian Development Bank's Role in Combating Money Laundering and the Financing of

Terrorism. Manila. 10 Government of India, National Institution for Transforming India Aayog. 2018. Strategy for New India@75. New Delhi. 11 The outcome indicators of ADB’s phase 1 investment (footnote 3) have been revised and are based on both phase

1 and phase 2 projects. The updated design and monitoring framework is in Appendix 1. 12 Assuming 2,622 MW of total capacity will be operational by 2023 and applying India’s electricity emission factor of

878 tons of carbon dioxide per gigawatt-hour. On a standalone basis, for the proposed phase 2 projects, the avoidance in carbon dioxide emissions works out to about 1.1 million tons starting from 2024.

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15. Outputs.13 The outputs of the project (in aggregate with the phase 1 projects already supported by ADB) will be (i) installed solar power capacity increased to 2,622 MW; (ii) local employment generated; (iii) growth of local economy supported; (iv) gender equality in AEPL enhanced; and (v) gender equality in implementing corporate social responsibility enhanced. C. Alignment with ADB Strategy and Operations 16. Consistency with ADB strategy and country strategy. The project is fully aligned with ADB's Energy Policy, which prioritizes support for renewable energy development (footnote 7). It strongly relates to two of the five core specializations of ADB: infrastructure and environment. It is consistent with the following operational priorities of ADB’s Strategy 2030: (i) addressing remaining poverty and reducing inequalities; (ii) accelerating progress in gender equality; and (iii) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability.14 It will contribute to ADB’s operational goal of scaling up private sector development and private sector operations, including supporting private sector operations’ long-term cofinancing target where every $1 in financing is to be matched by $2.5 of long-term cofinancing. It will contribute to ADB’s goal to provide climate finance of $80 billion cumulatively from 2019 to 2030. Total climate mitigation finance from ADB for the project (including the LEAP investment) is estimated to be $15.0 million. The project is aligned with ADB’s country partnership strategy for India, 2018–2022, which calls for higher efficiency and carbon mitigation through power generation from renewable sources.15 17. Lessons from previous operations. The extended annual reviews of solar projects previously financed by ADB in India highlighted three key lessons: (i) the importance of resource assessment, (ii) the risks associated with land acquisition, and (iii) the need for adequate power evacuation facilities. In addition, past ADB support for the solar sector point to the risks associated with timely payments of receivables from the offtakers. Means to address, monitor, and mitigate these risks have been suitably incorporated as part of the project’s implementation arrangements and will be closely monitored by ADB as a key shareholder. D. Project Cost and Financing Plan 18. (Confidential information redacted).

19. (Confidential information redacted). E. Implementation Arrangements 20. (Confidential information redacted). F. Projected Financial and Economic Performance 21. (Confidential information redacted).

13 The output indicators are inclusive of ADB’s phase 1 investment (footnote 14). 14 ADB. 2018. Strategy 2030: Achieving a Prosperous, Inclusive, Resilient, and Sustainable Asia and the Pacific.

Manila. 15 ADB. 2017. Country Partnership Strategy: India, 2018–2022—Accelerating Inclusive Economic Transformation.

Manila.

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III. THE PROPOSED ADB ASSISTANCE A. The Assistance 22. ADB and LEAP will each subscribe to the Indian rupee equivalent of $7.5 million (total $15.0 million) of compulsory convertible debentures (CCDs) issued by AEPL on terms and conditions substantially the same as the phase 1 investment. (Confidential information redacted) B. Value Added by ADB Assistance 23. ADB’s proposed phase 2 investment will add significant value to AEPL by providing it with access to much needed growth equity - at a time when its planned capital raising plans have been significantly affected due to market disruptions caused by COVID-19. This will help the company sustain the momentum of implementation of its ongoing solar projects in line with its revised business plan – despite the pandemic. Given ADB’s anchor role in structuring the proposed equity raise, the investment will also help mobilize an additional $25 million of equity capital from existing shareholders. The successive rounds of support from ADB in two phases (in 2019 and through the proposed phase 2) – along with ADB’s active engagement in the operations of the company as a shareholder and Board member – will help improve corporate governance standards and boost investor confidence in AEPL – thus attracting other equity investors once markets stabilize. The proposed phase 2 investment will also strengthen the company’s safeguards standards – especially in light of its upgraded environmental categorization – and ensure that its operations continue to be carried out by adopting high and internationally recognized environmental and social (E&S) standards. Lastly, through the proposed phase 2 investment, ADB has incorporated a number of additional gender-related design elements, leading to an improved gender policy and an enhanced gender categorization from SGE to EGM. C. Risks 24. (Confidential information redacted). 25. (Confidential information redacted). 26. (Confidential information redacted). 27. (Confidential information redacted). 28. (Confidential information redacted). 29. (Confidential information redacted). 30. (Confidential information redacted).

IV. POLICY COMPLIANCE

A. Safeguards and Social Dimensions

31. The investment is a general corporate finance transaction. The phase 1 investment was classified category B for environment, involuntary resettlement (IR), and indigenous peoples (IP), based on the potential impacts of AEPL’s existing and likely future portfolio that would be supported by ADB. As the company progresses with its expansion program and more details

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about the location and environmental risks have become available, it is likely that some projects and associated facilities, especially the large projects in its portfolio (300 MW or more), could be located in the proximity of sensitive receptors or could potentially impact environmentally sensitive areas or protected species. Therefore, ADB is taking a conservative and precautionary approach and has recategorized the phase 1 and phase 2 investments category A for environment. The company’s ESMS also addresses potential category A projects and includes terms of reference for the preparation of an environmental and social impact assessment (ESIA) to meet national and ADB’s requirements. Potential project impacts will be addressed through the project environmental management plan. The categorization for IR and IP remains B. ADB will continue to oversee the categorization and ESIA process of future projects.

32. A corporate audit of AEPL’s E&S policies and procedures, and an assessment of the company’s past and current performance against the objectives, principles, and requirements of ADB’s Safeguard Policy Statement (2009), were conducted for the phase 1 investment by a qualified and experienced external expert in 2018. Findings and corrective actions of the ESMS audit were summarized in a corrective action plan (CAP), which was agreed with AEPL. As a condition to ADB’s phase 1 investment, the company improved and upgraded its ESMS to comply with national laws and regulations, ADB’s Safeguard Policy Statement, and other applicable requirements as indicated in the CAP. 16 Implementation of other agreed CAP actions are also underway. AEPL’s institutional capacity for management of E&S issues has also been strengthened (at the corporate as well as the project level) and is deemed satisfactory.

33. During the first year of the phase 1 investment, ADB has monitored AEPL’s portfolio, the ESMS, and CAP implementation. ADB has determined that good progress has been achieved by AEPL over FY2020-FY2021, and AEPL’s E&S performance is considered satisfactory. Nonetheless, ADB and other shareholders have identified certain areas for continued emphasis and improvements (such as independent verification of ESMS implementation, and strengthening of the corporate E&S team with another qualified social specialist); an updated CAP, including such actions, has been agreed with AEPL and will be implemented.17 Requirements to implement these will be included in the terms of ADB’s new investment. ADB will continue to monitor the progress on ESMS implementation and other agreed actions. 34. AEPL will comply with national labor laws and, pursuant to ADB’s Social Protection Strategy (2001), will take measures to comply with the internationally recognized core labor standards.18 AEPL will report on an annual basis to ADB on (i) its compliance with such laws and (ii) the measures taken. Information disclosure and consultation with affected people will follow ADB requirements.19

35. Effective gender mainstreaming. Following ADB’s Policy on Gender and Development (1998), AEPL has incorporated measures to promote gender equality and/or women’s empowerment in its business activities. Key features of the gender action plan are as follows: (i) adding a female member to its board for the first time, (ii) increasing the number of

16 ADB. 2019. Report and Recommendation of the President to the Board of Directors: Proposed Equity Investment

and Administration of Equity Investment to Avaada Energy Private Limited for the Avaada Solar Project in India. Environmental and Social Management System: Audit Findings and Details of Arrangement (accessible from the list of linked documents in Appendix 2). Manila.

17 Environmental and Social Management System: Audit Findings and Details of Arrangement (accessible from the list of linked documents in Appendix 2).

18 ADB. 2003. Social Protection. Manila (adopted in 2001). 19 Summary Poverty Reduction and Social Strategy (accessible from the list of linked documents in Appendix 2).

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officers20 who are women, (iii) increasing the number of women in technical internship roles, (iv) training staff on its prevention of sexual harassment policy, and (v) providing at least 1,500 women with livelihood development training or other opportunities. AEPL will submit periodic reports on the implementation of gender measures to ADB.

B. Anticorruption Policy

36. AEPL was advised of ADB’s policy of implementing best international practice relating to combating corruption, money laundering, and the financing of terrorism. ADB will ensure that the investment documentation includes appropriate provisions prohibiting corruption, money laundering, and the financing of terrorism; and remedies for ADB in the event of noncompliance.

C. Investment Limitations

37. (Confidential information redacted).

D. Assurances

38. Consistent with the Agreement Establishing the Asian Development Bank (the Charter),21 ADB will proceed with the proposed assistance upon establishing that the Government of India has no objection to the proposed assistance to AEPL. ADB will enter into suitable finance documentation, in form and substance satisfactory to ADB, following approval of the proposed assistance by the ADB Board of Directors.

V. RECOMMENDATION

39. I am satisfied that the proposed equity investment would comply with the Articles of Agreement of the Asian Development Bank (ADB) and recommend that the Board approve the equity investment of up to $7,500,000 in Indian rupee equivalent from ADB’s ordinary capital resources in Avaada Energy Private Limited for the Avaada Solar Phase 2 Project in India, with such terms and conditions as are substantially in accordance with those set forth in this report, and as may be reported to the Board.

Masatsugu Asakawa President

31 August 2020

20 Officers are staff roles that include engineering, designing, operations and maintenance of project sites,

administration, accounts and corporate affairs. 21 ADB. 1966. Agreement Establishing the Asian Development Bank. Manila.

Appendix 1 8

UPDATED DESIGN AND MONITORING FRAMEWORKa Impacts the Project is Aligned with Renewable energy generation capacity of 175 gigawatts achieved by 2022 (Strategy for New India@75)b Share of nonfossil fuel-based electric power generation capacity increased to 40% by 2030 (Nationally Determined Contribution, Draft National Energy Policy)c

Results Chain Performance Indicators with

Targets and Baselines Data Sources and

Reporting Mechanisms Risks

Outcome Renewable power delivered to the domestic grid increased

By FY2024: a. Electricity delivered to offtakers increased to 5,600 GWh per year (FY2018 baseline: 0 GWh) b. Annual emission of 4,910,000 tons of CO2 avoided (FY2018 baseline: 0 tons of CO2) c. Number of jobs provided during operations amounted to at least 600 (FY2018 baseline: 167) d. Number of contractual jobs provided for operation and maintenance of operating projects amounted to at least 525 (FY2018 baseline: 25) e. Share of jobs provided to women during operations reached at least 24% (FY2018 baseline: 12%) f. Annual domestic purchase of goods and services amounted to more than $26.5 million during operation (FY2018 baseline: $6.0 million)

a−f. AEPL’s annual development effectiveness monitoring reports

Changes in the regulatory environment or power purchase arrangements Climate and weather risks

Outputs 1. Installed solar power capacity increased to 2,622 MW 2. Local employment generated

By FY2023: 1. Total installed renewable energy electricity generation capacity increased to 2,622 MW (FY2018 baseline: 150 MW) 2. Number of jobs provided during construction phase amounted to at least 10,000 (FY2018 baseline: 3,200)

1−5. AEPL’s annual development effectiveness monitoring reports

Construction delays because of force majeure events or inability to raise debt financing Cost overruns

Appendix 1 9

Results Chain Performance Indicators with

Targets and Baselines Data Sources and

Reporting Mechanisms Risks

3. Growth of local economy supported 4. Gender equality in AEPL enhanced 5. Gender equality in implementing corporate social responsibility enhanced

3a. Total payments to the government in relation to project construction amounted to at least $90.0 million (FY2018 baseline: $1.2 million) 3b. Total domestic purchases related to the construction and operation of this project amounted to at least $700.0 million (FY2018 baseline: $88.4 million) 4a. AEPL board has at least one female member (FY2019 baselines: 0 of 5) 4b. At least 4 female interns in technical roles (FY2019 baseline: 1 of 5) 4c. Number of women officersd increased to at least 6 (FY2019 baseline: 3 of 53) 4d. At least 80% of staff received training on the company’s prevention of sexual harassment policy (FY2019 baseline: 0%) 5. At least 1,500 women participated in livelihood development training or opportunities (FY2019 baseline: 259)

Key Activities with Milestones (applicable for phase 2) Outputs 1–5: 1.1 ADB executes shareholders’ agreement and shares subscription agreement for current investment

to support phase 2 projects by 30 September 2020. 1.2 Complete construction of power plants by 31 March 2023.

Inputs (applicable for phase 2) (Confidential information redacted)

Assumptions for Partner Financing Not applicable ADB = Asian Development Bank, AEPL = Avaada Energy Private Limited, CO2 = carbon dioxide, DEG = Deutsche Investitions- und Entwicklungsgesellschaft mbH (German Investment Corporation), DMF = design and monitoring framework, FMO = Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden NV (Netherlands Development Finance Company), FY = fiscal year, GWh = gigawatt-hour, LEAP = Leading Asia's Private Infrastructure Fund, MW = megawatt. a This DMF is an update of the DMF of ADB. 2019. Report and Recommendation of the President to the Board of

Directors: Proposed Equity Investment and Administration of Equity Investment to Avaada Energy Private Limited for the Avaada Solar Project in India. Manila. This DMF aggregates both phases of ADB’s investment. The

10 Appendix 1

performance indicators represent the updated total targets. Only the difference from the original DMF is attributable to the proposed phase 2 investment. This consolidated and updated DMF will be used to measure the overall achievements of the investments made by ADB under phases 1 and 2.

b Government of India, National Institution for Transforming India Aayog. 2018. Strategy for New India@75. New Delhi.

c Government of India, India’s Nationally Determined Contribution submitted to UNFCCC. New Delhi. d Officers are staff roles that include engineering, designing, operations and maintenance of project sites,

administration, accounts and corporate affairs. Source: Asian Development Bank.

11 Appendix 2

LIST OF LINKED DOCUMENTS http://www.adb.org/Documents/RRPs/?id=52126-002-4

1. Sector Overview 2. Client Information 3. Details of Implementation Arrangements 4. Contribution to the ADB Results Framework 5. Financial Analysis 6. Economic Analysis 7. Country Economic Indicators 8. Summary Poverty Reduction and Social Strategy 9. Environmental and Social Management System: Audit Findings and Details of

Arrangement 10. Gender Action Plan