Kaiser Engineers of the US have exited the UB Group-promoted ELRTS (elevated light rail transit system) project in Bangalore. The US company has filed for chapter 11 bankruptcy and has since discontinued its association with the Rs 3,000 crore project.
Morris Mathias, director, UB Group, said that Sumitomo of Japan is likely to step in at an appropriate time.
The project is also likely to tap the Japan Bank of International Co-operation (JBIC) as a source of funds at competitive interest rates as and when sanctions by Japan, imposed after the Pokhran nuclear blast, are lifted, Mathias said.
"We do not see a problem as JBIC has certified the ELRTS as a green project and therefore we do not see a problem getting finances arranged for the project," he said.
At a meeting of the board of the UB Group consortium which includes Nippon Sharyo, Japan, and Transportation & Transit Associates Inc of the US, and officials of the Government of Karnataka and the Bangalore Mass Rapid Transit Ltd (BMRTL), a decision was taken to take into account milestones that are to be surpassed in order to make sure the progress of the project.
The meeting took into account milestones that needed to be completed like conclusion of BMRTL's ridership study, discussions on financial models and the financial planning.
