Kochi: The executive committee of the Vytilla Mobility Hub Society chaired by the chief secretary scheduled to meet on Thursday would discuss funding options for the second phase.
It would consider prospects of availing loans from the state’s Kerala Infrastructure Investment Fund Board (KIIFB) besides the French agency Agence Francaise de Developpement (AFD).
Initially, AFD was decided as the funding agency for the project requiring a minimum investment of Rs 250 crore as the Kochi Metro Rail Ltd (KMRL) was entrusted with the preparation of the detailed project report (DPR).
“Though it was earlier decided to avail maximum loan from the French, we’ll also consider taking loans from the KIIFB," a source said.
"The exchange rate fluctuations could make external funding costly. We’ll take an average and calculate the interest rates and make a decision on the agency at the meeting in Thiruvananthapuram."
AFD had earlier expressed willingness to fund the project as part of developing integrated multi-modal transport systems. The agency had offered to extend loan at an interest rate of 1.35 percent and a repayment window of 20 years after a five-year moratorium.
However, a major concern is the susceptibility of interest rate to international currency fluctuations. The authorities aim to complete the second phase before the Metro starts operations in the section. Phase-II involves 120 bus bays and an underground parking bay for 1,000 two-wheelers and 800 cars among others in a total area of 25.16 acres.
KMRL had last week submitted the conceptual plan to the collector. Its ten-point recommendations include the provision of pedestrian-friendly connectivity from the metro station to the bus terminal as well as the boat jetty and the rickshaw stand.
