30.9.13

MTHL update

After its failure to attract bids to build the Mumbai Trans Harbour Link (MTHL) on a Public Private Partnership (PPP) basis, the MMRDA has sought financial assistance from Japan International Cooperation Agency (JICA), as the project is going to be developed on the cash contract model.
In the cash contract model, MMRDA will arrange for the required funds and then give a contract to a private player to build the project.
In a meeting held about 15 days ago, the planning authority sought a loan from JICA for the trans-harbour project, which has failed to take off for the third time. “We discussed the possible funding structure and financial assistance that JICA could offer and have sought around 80% of the funding from them,” said a senior MMRDA official.
At present, the MTHL project that plans to connect the island city to Navi Mumbai will cost around Rs10,000 crore.
JICA is an independent government agency that aims to aid economic and social growth in developing countries. JICA is also providing Rs 13,235 crore for the Rs 23,136 crore metro III project, planned between Colaba and Seepz via Bandra, at annual interest rate of 1.4%. MMRDA has sent a letter to the state urban development department seeking their opinion on the future course of the project.
According to MMRDA officials, once a formal approval is received from the UD department, the state government will approach the center, asking them to a loan from JICA.

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