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Agence Française de Développement (AFD), a French development agency, is learnt to have offered a loan of Rs 1,000 crore for the Kochi Metro rail project.
The loan will be made available at two per cent with a tenor of 23 years, first nine of which would be treated as moratorium period for purposes of repayment, official sources said.
MEET WITH CM
The offer was made by visiting AFD representatives to Chief Minister Oommen Chandy when they met him at the retiring chambers in the State Assembly.
The Chief Minister promised to get back to the French agency after examining the offer and discussions with stakeholders.
The French team comprised of Aude Flogny, the South Asia regional director for AFD, and Gautier Kohler, project coordinator, India.
The AFD team arrived in the State Capital after a detailed inspection of the Aluva-Vyttila alignment of the Kochi Metro project.
DISCUSSIONS HELD
AFD is the main implementing agency for France’s official development assistance to developing countries and overseas territories.
While conducting their pre-appraisal mission, they had detailed discussions with Elias George, managing director, Kochi Metro Rail Corporation (KMRL), and E. Sreedharan, principal advisor to consultants Delhi Metro Rail Corporation.
The French team has sought additional data on environment impact and traffic details to ascertain the sustainability of the metro rail project.
KMRL is seeking to raise Rs 2,170 crore (about 42 per cent of the total project cost) as loan component.
FUNDING SOURCES
State and Central Governments are expected to raise the rest for the Rs 5,182-crore mass rapid transport project. The State Government is expected to pump in Rs 2,009 crore (including land acquisition cost) and the Centre Rs 1,002 crore.
Japanese International Cooperation Agency (JICA) has already offered cheaper loans at 1.4 per cent with a longer tenor of 30 years.
But KMRL sought out alternative options since JICA offer would take longer to fructify and had also featured riders, including local sourcing.
> vinson.kurian@thehindu.co.in
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