KOCHI: After French agency AFD backed out, Kochi Metro Rail Ltd (KMRL) has been in talks with international agencies, including Japan’s JICA, for funding the phase two corridor from JLN Stadium to Infopark in Kakkanad.
Denying any uncertainty over the 11.17 km-long phase, with work scheduled to commence in January 2023, KMRL officials expressed confidence that they would be able to clinch new funding soon. “We are in the final round of discussions with another agency, and details have been sent to the central and state governments for approval. There is no uncertainty over moving ahead with the project. KMRL will begin the second phase in January 2023,” a KMRL spokesperson said.
The official said Agence Française de Développement’s withdrawal had nothing to do with the viability of the second phase. “AFD decided not to fund any metro projects for the time being. It has nothing to do with Kochi Metro per se,” the spokesperson added.
AFD is one of the international lending agencies active in India. Before AFD, Japan International Cooperation Agency (JICA) funded most of the metro projects across the country. “When the Kochi Metro project began in 2012, JICA changed its policy and decided to offer tide loans (loans that are tied to procurement of materials with that country) with over 30 per cent materials brought from Japan. KMRL then approached AFD and sought a good deal on technical assistance, and moved ahead with the project,” a KMRL official said.
AFD informed KMRL of its unwillingness to offer a loan for the second phase two months ago. Since then, KMRL officials have initiated talks with other financial agencies, including JICA, the World Bank and the Asian Development Bank (ADB).
AFD’s withdrawal is following the finding that Rs 3,500 crore would be required to complete the second phase of the project, with the central government sanctioning just Rs 1,957 crore. The first phase was completed after receiving a loan from AFD of Rs 1,525 crore at 1.9 per cent interest. The first phase, which was estimated to cost of Rs 5,181.79 crore, was completed for Rs 7,100 crore.