The Pune Metro project being executed by Maha Metro is set to receive €245 million in funds from the French development bank AFD.
The Pune Metro project being executed by Maha Metro is set to receive €245 million in funds from the French development bank AFD. An AFD team led by Nicolas Fornage, regional director for South Asia, has visited the sites where work has begun. AFD has already funded `1,000 crore for the Nagpur Metro Rail, another project being executed by Maha Metro.
While this is a government-guaranteed loan, Fornage said they were open to fund projects in India without sovereign guarantees too. The Pune Metro is an `11,420-crore project which is being part-funded by the state and Central governments. Around €845 million for the project is to be raised from foreign funding agencies. While AFD will commit €245 million, the remaining €600 million will come from the European International Bank, said Brijesh Dixit, MD, Maha Metro. AFD and EIB will be appraising the project at the same time, Dixit added.
Dixit said work has started on the two lines of Pune Metro with their own capital and would need these funds for rolling stock, traction and signalling systems by the end of the year. “We have started working on the funding so that we can get it just in time for the next phase of the two lines,” Dixit said.
According to AFD’s Fornage, the appraisal process will take four to six months and the actual funding will happen at the end of this year or early 2018. Fornage further said he was impressed with what his team saw at the site and is studying the project report. “We cannot fund the project of this size alone and will be doing it with the European International Bank,” he said.
AFD is providing funding to the tune of €1.5 billion to India and 70% of this will go to urban transport related projects as part of its commitment to full sustainability goals under the Paris agreement, Fornage said. “The discussion with AFD was focused on the civil and system packages, the components of the project which are proposed to be funded by AFD and we also discussed the timelines and detailed plans of the project,” Dixit said.
This financing will be in the form of a soft loan without any conditions and at a concessional interest rate which will be based on the MoU signed with the department of economic affairs, ministry of finance. The French team visited the site where NCC has started viaduct tender work on the PCMC to Range Hills and Civil Court to Ramwadi stretches.