French agency to visit Kochi for final metro appraisal

A delegation from the Agence Francaise de -Development, the French financial agency, will hold discussions with the top management of Kochi metro and the Delhi Metro Rail Corporation on the final appraisal of the project from September 17.

Kochi Metro Rail Limited (KMRL) had earlier approached the AFD for long-term funding of the project, which requires an external borrowing of Rs 2,170 crore. However, the French agency has agreed to provide a loan of Rs 1,400 crore (euro 180 million) with a 20- year tenure and comes with a moratorium of five years at an interest rate of 2 per cent.

The visiting AFD delegation includes Alain Ries, head, Transport and Energy division; Xavier Hoang, project manager for Kochi metro and Gautier Kohler, project coordinator. The delegation will be in Kochi till Sept 19. 

The AFD mission had visited Kochi twice this year and evaluated the progress of the project. 

The total estimated cost for the metro project is projected at Rs 5,180 crore and is scheduled to be completed by 2016. Phase I will have 22 stations and a system length of 26 km. The loans expected from AFD and Japan International Co-operation Agency work out to about 42 per cent of the total project cost. The Union government had given the final approval for the project  in last July. 

The state is expected to pool in Rs 2,009 crore (including land acquisition cost) and the Centre Rs 1,002 crore. Both central and state government's will extend financial support through capital investment.