KfW’s Board of Directors today approved a loan proposal to India’s Ministry of Finance for lending euro 545 million (approx. Rs 4788 crore) towards the system contracts of Mumbai Metro’s under construction 35.2 km Line-4/4A (Green Line) which will connect Bhakti Park (Wadala) – Kasarvadavali – Gaimukh through 34 elevated stations.
System contracts for this line which are currently in the tendering stage include the 234 coach rolling stock, communications-based train control (CBTC) signaling and 9800 MT head hardened rails contracts.
The loan was approved on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), and the package includes one development loan of EUR 345 million and one promotional loan of EUR 200 million, with interest rates varying between 0.07% and 0.82% for different tranches.
In addition, a financing agreement of EUR 2.2 million was signed for accompanying technical support which will likely go towards financing the General Consultant contract which was awarded to DB – Hill – Louis Berger JV in 2017.
Here’s KfW’s press release:
Protecting the environment and commuters: KfW supports the expansion of Mumbai’s metro system
On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), KfW has committed two loans for a total of EUR 545 million to the Indian Ministry of Finance. The credit package is made up of one development loan of EUR 345 million and one promotional loan of EUR 200 million. In addition, a financing agreement of EUR 2.2 million was signed for accompanying technical support. The Financial Cooperation project, which is being implemented by the Mumbai Metropolitan Region Development Authority (MMRDA), covers system components for Mumbai’s metro line 4, as well as footpaths and cycle routes surrounding the stations to improve integration within the transport system.
With approximately 20 million residents, Mumbai is not only among India’s most populous cities, but it is also globally among the cities which are worst-affected by traffic jams. The existing suburban railway lines are completely overloaded, transporting up to 8 million commuters a day – a situation that often leads to accidents. At the moment, Mumbai has just one metro line, which is 11 km long. In light of this, the plan for the next few years is to build a metro network with 14 lines and a total length of 337km covering the entire metropolitan region. The aim of expanding the metro network is to relieve strain from commuter traffic, reduce traffic accidents and respiratory problems caused by air pollution, and contribute to climate change mitigation.
“Expanding the metro system in Mumbai will not only improve road safety and reduce the level of fine dust pollution, it will also make a valuable contribution to climate change mitigation. Once metro line 4 has begun operations, it will help to save up to 121,000 tonnes of greenhouse gases every year,” explained Dr Günther Bräunig, CEO of KfW.
Energy-efficient trains are due to be provided for the 34-km-long metro line 4 and the goal is for them to be completely automated in the medium term. As well as expanding the metro network, footpaths and cycle routes are due to be expanded around the stations and the safety will be improved through additional markings, signage and video surveillance.
With this development, financial bids for the 234 coach rolling stock contract can be expected to be opened anytime now. The Mumbai Metropolitan Region Development Authority (MMRDA) had received 3 bids from BEML, Bombardier and CRRC – and technical bid evaluation has been underway since May-end. Stay tuned to find out the winner!
For more updates, check out the Mumbai section of The Metro Rail Guy!