Agence Francaise de Developpement (AFD) the French Funding agency, has agreed to provide a loan of around 175 Million Euros for Kochi Metro Rail’s extension from JLN Stadium to Infopark via Kakkanad and as a very special case, to give a loan for a longer tenure of 25 years, at an interest rate of 1.35% (Linked to EURIBOR). The normal tenure for such loans for urban infrastructure is presently 20 years.
“ It is a matter of pride for Kochi Metro Rail Limited that AFD has agreed to this offer. This is an indication of the funding agency’s faith in KMRL’s capabilities and its objectives”, said Mr. Elias George, Managing Director, KMRL.
This loan also includes a component of 22 Million Euros for the following:
Ø Non-motorised transportation works at 20 stations
Ø Pedestrianisation of M.G. Road
Ø Junction improvement in Alwaye, Edapally and Vyttila
The 7th Annual Negotiation Meeting between the Ministry of Finance, Government of India and the French funding agency, Agence Francaise de Developpement (AFD) took place at Paris, France on the 9th and 10th of November`16. The meeting was attended by Mr. Elias George, Managing Director, Kochi Metro Rail Ltd. (KMRL) and Mr. S. Selvakumar, Jt. Secretary (ABC), Ministry of Finance. The meeting included a review of the present status of the Kochi Metro Rail project, which is funded by AFD, as well as the proposed extension of the Kochi Metro Rail project from JLN Stadium to Infopark via Kakkanad, over a distance of 11.2 kms, at a cost of Rs.2024 crore.
KMRL is also very happy to note that in this meeting, the Urban Transport Expert of AFD’s Head Office has stated that in AFD’s worldwide assessment, the Kochi Metro Rail project is, as of now, the lowest cost metro rail project worldwide, while at the same time adhering to global quality standards. It was also decided in the meeting that even though the Kakkanad extension proposal is yet to be formally approved by the Government of India, AFD have also agreed, as a very special case, to procure all their formal Board approvals even before the extension proposal is administratively sanctioned by the Government of India, so that no time is lost in launching the implementation of the project. It is expected that AFD’s Board will clear the proposal in December 2016.