KMRL is on the verge of crossing a major funding hurdle. AFD; the French financial agency that KMRL had approached for external funding is likely to give a final commitment on providing a loan of about 180 million euros by the end of November this year.
The final appraisal mission led by Alain Ries, Head of the transport and energy division (Paris) along with Xavier Hoang, urban transport expert and Project Manager for Kochi metro (Paris) and Gautier Kohler, Project Coordinator (India) held detailed discussions with the top brass of the metro project last week. The team which held discussions on the progress on Land Acquisition, Project construction, Procurement Plan and Financial Analysis of the project expressed satisfaction on the progress.
During the three-day mission that ended on Thursday, the French team also had deliberations with KMRL on the initiatives taken on transit-oriented development (TOD) and the Unified Metropolitan Transport Authority (UMTA).The AFD team also expressed its willingness to provide technical assistance for preparing a workable action plan for realization of Unified Metropolitan Transport Authority.
The French financial agency had earlier agreed to enhance the funding of Kochi metro to 180 million euros 30 million up from the initial offer of 150 million euros. The agency’s offer of Rs 1500 crores at 2% interest comes with tenure of 20 years and a moratorium of 5 years. The 5537.25crores metro project requires an external funding to the tune of 2174 crores. A nationalized bank had expressed willingness to provide Rs 1,000 crores financial assistance to the project according to Elias George, MD, KMRL.
KMRL is also pinning its hopes on a loan from the Japan International Co-operation Agency for the remaining funding of the project