Loan process for project to be completed this month

Tuesday, 19 March 2019

MahaMetro will finalise loan of 600 million euros for the project with EIB soon

Pune: The process of loan request of Maharashtra Metro Rail Corporation Limited (MahaMetro) from European Investment Bank (EIB) for the metro project in the city will be completed by this month, said 
MahaMetro officials. 

The estimated total project cost of the Pune Metro Project is Rs 11,420 crore, of which the loan component is Rs 5,831.5 crore. 

The loan component is to be funded by the European Investment Bank (EIB) and AFD. 

While AFD has signed the first agreement to extend funding of 245 million euros to the Pune Metro Project, Mahametro officials said that they will soon sign an agreement with EIB. 

The loan by AFD is at 1.2 per cent interest rate for a period of 20 years. 

Around 845 million euros for the project are to be raised by foreign funding agencies. 

While AFD has committed 245 million euros, the remaining 600 million euros will come from the EIB.
Speaking about the loan process, a MahaMetro official said, “Fortunately, we are running the project to date using government funds. Currently, we have the government’s money, which is helping the progress of the project. The loan formalities from EIB and AFD will soon be completed and we will be in a position to accept the loan amount. As loan amount comes with an interest, we will accept the amount when we are in need of it.” 

The MahaMetro has awarded all civil contracts for the project from Vanaz-Ramwadi and Pimpri-Swargate corridors. Similarly, the MahaMetro is also preparing the detailed project reports of an extension of the metro project.
Officials said that currently, the Nigdi-Pimpri, Katraj-Swargate, Vanaz-Chandni Chowk and Nashik Phata-Chakan extension proposals are with the MahaMetro.

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