If all goes as planned, the Kochi Metro Rail Limited (KMRL) will ink an agreement with German funding agency KfW in December to source Rs.590 crore as loan for the Rs.819-crore integrated water transport project in the greater-Kochi area.
This was stated here on Friday by Stephanie Rieger, KfW’s Senior Project Manager, following a week-long final appraisal mission for the project to introduce a fleet of 78 fast, fuel efficient and air-conditioned ferries linking Kochi with West Kochi, Kakkanad and islands that surround the city.
Allied infrastructure such as boat jetties and access to jetties too will be augmented.
Preliminary agreement signed
The two agencies signed an MoU – a preliminary agreement on KfW providing loan and sharing in-house expertise for the project, on Friday. Earlier this week, the Planning Board had approved the draft project report, following which the German team called on Chief Minister Oommen Chandy and key officials of the Finance Department. "We hope to get the formal nod of the State Cabinet, the Central government and KfW’s Board shortly. Once the agreement is inked in December, we hope to begin implementing the project from January 2016. The loan having approximately 1.60 per cent interest works out to 80 per cent of the project cost (after deducting Rs.72 crore as cost of land acquisition). It can be repaid in 20 years’ time,” said Elias George, KMRL’s managing director.
The 78 ferries will be procured over a four-year period. KMRL has appointed a team of consultants to finalise the specifications for ferries.
“The modern ferries that will be procured through international competitive bidding will become the aqua wing of Kochi Metro, while existing ferries operated by agencies such as the State Water Transport Department can either operate here or be taken to other parts of Kerala where there is shortage of ferries,” Mr. George said.
The Director (Finance) of KMRL Abraham Oommen said one third of the 78 boats planned could be operated by private players. “Thus, they can operate boats costing Rs.65 crore, while KMRL could operate boats costing Rs.125 crore.”
This is a win-win situation for both metro rail and waterway transport, Ms. Rieger said.
“We will fast-track the loan since the project pioneers inclusiveness, integration of two public transport systems and thus reduces pollution caused by private vehicles,” she said.
