Kochi: The Rs 5,200-cr Kochi Metro Rail project would get the first instalment of French loan within 14 months after signing the loan agreement with Agence Francaise De Developpement (AFD), the French financial agency, in February.
Officials of the French aid agency held the final round of discussions on various conditions of the loan agreement with Kochi Metro Rail authorities here on Friday. During the discussion, the AFD team agreed to increase the repayment period from the earlier agreed 20 years to 25 years with a moratorium for five years.
Two agreements will be signed, one between AFD and the Union Government and the other between AFD and KMRL. The agreement signing ceremony in Kochi will be attended by a delegation from the French Embassy and top officials of AFD including its CEO Anne Paugam.
Briefing the provisions of the loan agreement, KMRL managing director Elias George said that one of the primary requisites of the French agency was to cause minimum environmental impact and a transparent procurement system.
As per the agreement, KMRL will be bound by OECD (Organization of Economic and Cooperative Development of the United Nations) guidelines.
“As per the agreement, AFD’s approval would be needed in several stages of Metro construction. Their specific nod is mandatory for the tendering process and during various stages of bidding. The agreement also envisages specific provisions for ensuring integrity, openness, transparency, competitiveness and quality in all stages of the procurement process,” said the KMRL MD.
The AFD conditions also include a comprehensive audit during all stages of the project, including project progress, expenditure and a safety and quality audit by an independent third party auditor. Another pre-condition put forward by the French agency is effective implementation of UMTA (Unified Metropolitan Transport Authority) for the city over an agreed timeframe.
The first instalment will be paid as advance while the remaining payments will be released as reimbursement after evaluating the progress of the project. The AFD team has also agreed to provide technical assistance in implementing UMTA, setting up a ‘green’ Metro village and strategy for operation and maintenance of the Metro system.
