The much-awaited announcement has finally been made. The board of directors of Agence Française de Développement (AFD) has approved a 180 million Euro (Rs.1,512 crore as per current exchange rate) loan for the Kochi Metro project. A decision in this regard was taken at the AFD headquarters in France. Sources close to the Rs.5,182-crore project confirmed the report stating that both the Kochi
Metro Rail Ltd (KMRL) and AFD would sign the loan agreement in February, 2014.
The AFD loan comes with an interest rate of 2%. KMRL will have a repayment period of 20 years and a moratorium of five years. The agency had, initially, made an offer to provide 150 million Euros, but has now raised the amount to 180 million Euros.
The French agency’s final appraisal mission, led by head of the transport and energy division (Paris) Alain Ries, had visited KMRL’s office in September 2013. The team had conducted detailed discussions regarding the progress made on various aspects of the project, and expressed their satisfaction over progress made on land acquisition, construction as well as on the procurement plan and financial analysis. They also held talks on initiatives to implement transit-oriented development (TOD), creation of unified metropolitan transport authority (UMTA), social impact study, and resettlement and rehabilitation policy.
KMRL had also approved a proposal to avail a long-term loan to the tune of Rs.1,170 crore from Canara Bank as a part of external funding during the director board meeting held on November 4.
The bank charges floating interest at a rate of 10.80%. The loan comes with a repayment period of 20 years and a moratorium of seven years.
Metro Rail Ltd (KMRL) and AFD would sign the loan agreement in February, 2014.
The AFD loan comes with an interest rate of 2%. KMRL will have a repayment period of 20 years and a moratorium of five years. The agency had, initially, made an offer to provide 150 million Euros, but has now raised the amount to 180 million Euros.
The French agency’s final appraisal mission, led by head of the transport and energy division (Paris) Alain Ries, had visited KMRL’s office in September 2013. The team had conducted detailed discussions regarding the progress made on various aspects of the project, and expressed their satisfaction over progress made on land acquisition, construction as well as on the procurement plan and financial analysis. They also held talks on initiatives to implement transit-oriented development (TOD), creation of unified metropolitan transport authority (UMTA), social impact study, and resettlement and rehabilitation policy.
KMRL had also approved a proposal to avail a long-term loan to the tune of Rs.1,170 crore from Canara Bank as a part of external funding during the director board meeting held on November 4.
The bank charges floating interest at a rate of 10.80%. The loan comes with a repayment period of 20 years and a moratorium of seven years.
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