France-based AFD to hike assistance for Kochi metro

Kochi metro will now receive higher assistance from the France-based funding agency- Agence Francaise De Development (AFD).

In its discussion with the top brass of Kochi metro and DMRC recently, AFD had in principle agreed to enhance the funding to 180 million euros (amounting to Rs 1,400 crore), up from the previously agreed 150 million euros.

As a follow up to this, the next appraisal mission of AFD would be visiting Kochi on September 16 for finalising modalities. The mission had visited Kochi twice this year for evaluating progress.

The loan appraisal process is now under way and it is expected that the proposal would be finalised by the AFD board in November this year.  A formal agreement between KMRL and AFD would be signed in February 2014.

An appraisal mission led by Xavier  Hoang, AFD's senior transport expert, in April, had done a detailed analysis on the project and expressed satisfaction on its progress.  The team held discussion with Elias George, managing director, Kochi metro, and E Sreedharan, principal adviser, Delhi Metro Rail Corporation. The first team came to Kochi in March.

The metro project needs an external borrowing of about Rs 2,170 crore. The AFD's offer of Rs 1,400 crore comes with a tenure of 20 years, with a moratorium of 9 years and the rate of interest at 2 per cent.

The estimated cost for the metro is Rs 5,180 crore, and is scheduled to be completed by 2016. The first phase will have 22 stations and a system length of 26 km. It also sought financial aid from the Japan International Co-operation Agency (Jica).