AIIB Approves Kochi Metro Phase 2’s $122mn Loan

The Asian Infrastructure Investment Bank (AIIB)’s updated website indicates the bank’s board on Wednesday approved a USD 122.32 million (approximately Rs. 1025.21 crore) loan for Kochi Metro Phase 2 project.

Kochi Metro’s Phase 2 by Kochi Metro Rail Ltd. (KMRL) will feature a 11.2 km new elevated line, named Pink Line, with 11 stations connecting JLN Stadium – Kakkanad – Infopark (Smart City). 

Basic construction on Phase 2 started in July 2024 by Afcons Infrastructure barely two weeks after they were awarded a Rs. 1141.32 crore contract with a tight 600 day construction deadline.

Per AIIB, the loan’s proceeds will be disbursed between Q3 2024 – Q4 2027 and will be used for the payments for goods, works and non-consulting services. This includes 2 components:

• Component 1 – Civil Works (CW): This will support the design and build of 11.2 km of elevated viaduct, 11 stations, tracks, and other related civil works (including barrier-free, gender-responsive, and climate-resilient features). Specifically, this component will finance the (i) design and build of 11.2 km of viaduct and 11 stations; (ii) architectural finishes for all stations; (iii) design and build for track work; (iv) construction of the entry/exit structures for all stations; (v) construction of KMRL staff quarters; and (vi) implementation of NMT works.
• Component 2 – Railway Systems and Trains (RS&T): This will support the procurement, installation, and commissioning of systems, including (i) traction and power supply facilities, as well as SCADA; (ii) auxiliary main substation; (iii) electrical and mechanical (E&M) works; (iv) telecommunications; (v) security control; and (vi) AFC. This component will also finance the design, procurement, installation, and commissioning of (vii) lift(s), (viii) escalator(s); and (ix) the procurement of 5 new trains.

Loan Approval Timeline

• Concept Review: November 7, 2023
• Appraisal Review/Final Review: February 29, 2024
• Financing Approval: August 21, 2024

Kochi Metro Pink Line’s new stations will come up at Jawaharlal Nehru Stadium (new station box next to Blue Line), Palarivattom Junction, Alinchuvadu (formerly Palarivattom Bypass), Chembumukku, Vazhakkala, Padamughal (formerly Kunnumpuram), Kakkanad Junction, Cochin SEZ (Special Economic Zone), Chittethukara, KINFRA Park (formerly Rajagiri), and InfoPark / Smart City (connected to Kochi Water Metro).

Kochi Metro’s Phase 2 is estimated to cost USD 229.88mn (Rs. 1926.71 crore), and the rest of the funding will be provided by the Government of Kerala ($66.80mn or Rs. 559.87 crore) and Government of India ($40.76mn or Rs. 341.62 crore).

With this development I expect a loan contract signing ceremony with the Government of India’s representatives to take place in Q4 (October – December).

In related news, Afcons this weekend bored a test pile within Infopark Phase 1

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– TMRG