Q.Under the Guidelines, would projects that will acquire equity interest without additional capital investment be automatically categorized as Category C?

A.

NEXI would check through the screening form and hearing to the Applicants if the project does not have “sensitive characteristics” or is not located in a “sensitive area,” or if the executing project has not been received any strong complaints from local residents (negative check), and if necessary, it would check project proponents’ policies or related documents on environmental and social considerations. NEXI then would decide that further environmental impact would not occur as the project is for acquisition of equity interest without additional capital investment. As a result NEXI would categorize the project as Category C. In addition, even in cases other than "projects that will acquire equity interest without additional capital investment," similar to the above, after conducting negative checks on project characteristics, etc., and if necessary, after checking proponents’ policies or related documents regarding environmental and social considerations. If we consider that there is minimal or no adverse environmental impact, NEXI would categorize them as "Category C".