German-funded project by January

KOCHI: The Kochi Metro Rail (KMRL) will begin execution of the German-funded ‘Integrated Water Transport Project for Kochi City’ worth Rs 740 crore, by January next year.

A delegation of the German government bank KfW, during a final appraisal mission,  expressed satisfaction over the detailed project report submitted and offered to provide a long-term soft loan of Rs 590 crore at an interest rate of 1.66 per cent.

After the appraisal mission,  an initial agreement was signed between KMRL managing director Elias George and KfW senior project manager Stephanie Rieger here on Friday.

“The KfW loan will cover 80 per cent of the total project cost and it is as equally important as the AFD loan for the Metro. It’s the best and liberal infrastructure loan availed of by any entity in the state,” said Elias George.

The state Planning Board has already approved the DPR and after the Finance Department’s scrutiny, the cabinet will approve the DPR in three to four weeks. After the Union government’s approval, the KfW director board will sanction the loan.

“To take up the ambitious water transport development project, the KMRL will constitute a special ‘Aqua Wing’ which will be responsible for procurement of boats and coordinating infrastructure development.

The quality and design of the modern vessels will be finalised through international competitive bidding,” informed the KMRL chief.

Of the Rs 590 crore loan, RS 205 crore will be for civil infrastructure while Rs 310 crore will be for ancillary infrastructure development, including road construction in neighbouring islands and feeder buses.

A total of 78 boats will be procured at a cost of Rs 195 crore of which Rs 65 crore will be incurred by private players. But, two thirds of the boats will be under public sector.

“We are happy to associate with the infrastructure development project. This is part of the mega euro 200 billion urban mobility projects proposed for medium cities in India,” said Stephanie Rieger.