German bank offers loan for water transport project in Kochi

Detailed discussions on the interest rates, tenure of the loan and repayment conditions had to be held, said Tony Chammany, Kochi Mayor.

Development of water transport network will improve the traffic scenario of the city and adjoining areas, says Mayor Tony Chammany. File photo

KFW Development Bank, Germany, has offered a loan of Rs. 624 crore for developing a water transport network in the city and related works.

The terms and conditions of the financial aid have not been discussed yet. However, it is expected to be a soft loan. Detailed discussions on the interest rates, tenure of the loan and repayment conditions had to be held, said Tony Chammany, Kochi Mayor.

Usha Rao, the urban transport specialist of the bank, expressed the willingness of the agency to fund the project in a discussion with Elias Joseph, Managing Director of Kochi Metro Rail Limited (KMRL) in New Delhi. Kochi Corporation and KMRL had earlier held discussions with the agency seeking support for the water transport project and development of the Unified Metro Transport Authority, Mr. Chammany said.

The loans from external agencies have to be routed through the State and the Central governments. The State government has to write to the authorities for availing the financial aid. If the formalities for the loan could be completed, the bank would extend the loan before March next, he said.

Incidentally, Cities Development Initiative Asia (CDIA), an international agency, had conducted a detailed study for developing a water transport network in the city.The task of preparing a pre-feasibility study on the project was assigned to a Manila-based agency. The Initiative had also proposed a Rs. 400-crore project for identifying new ferry routes, modernisation of boat jetties and for launching modern boats.

Special Purpose Vehicle

The local body had earlier decided to form a Special Purpose Vehicle for managing the water transport system after the Kochi Corporation council approves the pre-feasibility study.

The local body had also sought financial aid from the CDIA for the formation of the Special Purpose Vehicle. Kochi Corporation had also written to the CDIA in this regard, said Mr. Chammany.

Since the development of the water transport network would go a long way in improving the traffic scenario of Kochi city and adjoining areas, the governments should take the initiative for obtaining the loan for Kochi Corporation, Mr. Chammany said.