FinMin – AFD Sign Rs. 975 cr Loan Agreement for Nagpur Metro
Nagpur Metro’s 38.215 km Phase 1 project yesterday achieved financial closure after S.Selvakumar, Joint Secretary of the Department of Economic Affairs at the Ministry of Finance, and Nicolas Fornage, Regional Director for South Asia at Agence Française de Développement (AFD) signed a €130 mn (Rs 975 cr) loan agreement deal for the project’s development in Delhi. This is the second major loan agreement for the project after the April 2016 KfW loan agreement for €500 mn (Rs 3772 crore).
The 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%. Its proceeds will specifically go towards purchasing equipment & services related to Signalling, Telecom, Automatic Fare Collection System, Elevators and Escalators. Bids for these sub-systems have been invited and contracts are expected to be awarded by the mid-2017.
Photo Copyright: CMO Maharashtra
130M€ new financing by French Development Agency to support #Nagpur Metro: 2 lines, 38km & 3,5 lak passengers a day https://t.co/tXXG7jX2Ma
— Alexandre Ziegler (@FranceinIndia) November 17, 2016
Now is a good time to recap the status of the Nagpur’s Metro project where construction work on 2 stretches is underway – see a list of contractors here. For recent construction images, check out my Twitter feed where I share construction images from all over the country.
Besides awarding the rolling stock contract to CRRC Corp which raised quite a storm in the country, the Nagpur Metro Rail Corporation also recently concluded the bidding stage for the 10.387 km Lokmanya Nagar – Jhansi Rani Square ‘Reach 3’ section by finalizing & awarding contracts to ITD Cementation for constructing 10 stations, and to Afcons Infrastructure for constructing its elevated viaduct.
Green: Under Construction (22.497 km) | Black: Construction Bids Yet to be Invited (15.718 km)
Status of Nagpur’s Metro – view Nagpur Metro information
With financial closure achieved, bids for constructing the portions in black (Reach 2, Reach 4 & Sitabuldi Interchange station) are expected to be invited in the coming months. Overall, I’m expecting the entire Phase 1 project to become operational & open to users by 2022.
For more updates, check out the Nagpur section of The Metro Rail Guy!
– TMRG
How are Bangalore Phase 2 and Delhi Phase 4 placed? Do they have all agreements in place?
Both still need funds.
As per BMRCL’s MD, they need to borrow 12,000 crore. Of that, they’ve only signed up for Rs. 1,500 crores with AFD. They’ve been in talks with KfW for Rs. 3500 crores for more than a year, but a loan deal is yet to be signed. Perhaps that explains why bids for many sections (Whitefield & the 2 lines) haven’t been invited and Phase 2 is delayed even before construction begins.
Delhi Metro’s PH4 hasn’t received official sanction (approval) yet. Once that is done and the funding outlay is decided, then we’ll get to hear about its loan deals.
Bangalore metro newsletter?
Hi, there isn’t anything major/significant to cover from it, so I’ll give it a skip this time around. I’ll definitely write next month.
Do check out images from it on my Twitter feed.