Following the loan agreement signed for Lucknow’s Metro on March 30, it’s now Nagpur’s turn!
Yesterday, S.Selvaraj, Joint Secretary of the Department of Economic Affairs at the Ministry of Finance, and Roland Siller, Director General of KfW – Germany’s development bank signed a loan agreement deal for Nagpur’s Metro in Delhi! The €500 mn (Rs 3772 cr) loan has a term period of 20 years with a moratorium of 5 years, and will be disbursed in tranches over the course of the project. The interest rate will based & derived from the Euro Interbank Offered Rate (Euribor) plus a fixed component of 0.60%.
The loan’s proceeds will go towards the development of Nagpur’s 38.215 km Phase 1 project of which a 12 km section is currently under construction with funds provided by both the state and central government. For construction images and news from other sections of the project, see the Nagpur section of my site.
Although the agreement goes into effect now, representatives from the Nagpur Metro Rail Corporation have been in constant touch with KfW officials and obtaining their approval prior to beginning any bidding process, opening financial bids or awarding capital intensive contracts. This includes the 69 coach Rolling Stock contract & the 10.04 km Reach 3 contract (Lokmanya Tilak Nagar to Rani Jhansi Square) which are both expected to be awarded in May.
3 more loan agreements are expected to be signed this year:
• Nagpur Metro Phase 1 – with France’s Agence Française de Développement (AFD) in April/May for a Rs. 980-1100 crore (€130-150 mn) loan.
• Bangalore Metro Phase 2 – with KfW and possibly the Japan International Cooperation Agency (JICA) for Rs. 10,000-12,000 crores sometime later this year. In September 2015, the BMRCL & AFD signed an agreement for a Rs. 1500 crore (€200 mn) loan.
• Mumbai Metro (DN Nagar – Dahisar & Andheri east – Dahisar east) – with either the Japan International Cooperation Agency or Asian Development Bank or World Bank for roughly Rs 5000 crores sometime later this year.
In other news, Nagpur Metro’s General Consultant is expected to be appointed this month. 3 JV firms were shortlisted for the contract in February – see list.
For more updates on Nagpur’s Metro, check out the Nagpur section of The Metro Rail Guy!