Bangalore Project Gets Legal Advisers

The UB group-sponsored elevated light rail transport project in Bangalore has roped in Masons, a British legal firm, as legal advisers.

The sponsors are also scouting for financial advisers.

Top accounting and consulting firms, including KPMG, Arthur Anderson and Coopers & Lybrand, are bidding for the contract.

Masons, which has a major presence in Europe, got the mandate because of its expertise in advising one-of-a-kind projects like the Eurotunnel.

The cost of the elevated light rail transport project is estimated to be $2 billion.

The Karnataka government is expected to negotiate and sign a concession agreement with the promoters.

The agreement will form the basis of the fund-raising programme for the promoter consortium consisting of the UB group, ICF Kaiser Transportation and Transit Associates of the United States, and Japan's leading rail coach manufacturer, Nippon Sharyo.

The state government has given about 57 acres of defence land at a cost of Rs 32.5 crore to the project.

The total land required is about 60-65 acres.

The project envisages a rail link spread over a 25 km integrated network all over Bangalore city.

The train will consist of about one to four coaches carrying 250-400 passengers and running at an average speed of about 38 km per hour. This will include stopovers at various stations.

The maximum time spent by a commuter between two extreme points is expected to be under 40 minutes.

The fare structure for the transport system is to be decided in consultation with the state government.

The state government is planning to contribute about 25 per cent of the project cost. It is planning to convert about one-fourth of this contribution into equity in a special purpose vehicle while the rest will be converted into subordinated debt.