The Kochi Metro Rail Ltd and French agency Agence Francaise De Development today reached a broad agreement on the provisions of the pacts to be signed between the AFD, Union Government and KMRL, most likely next month.
KRML Managing Director Elias George and other directors of the company participated in the discussions, while the French team comprised AFD's South Asia Acting Director, Cheikh Dia and Project coordinator, Gautier Kohler.
In November last year, the AFD's board of directors had approved 180 million euro (Rs 1,521 crore as per the current exchange rate) as loan for the Metro project. The French loan comes with an interest of 2 per cent.
The KMRL will have a repayment period of 20 years and a moratorium of five years. The agency had, initially, made an offer to provide Euro 150 million which was enhanced to Euro 180 million.
The two day discussions between AFD and Kochi Metro rail concluded today.
The draft agreements have to be approved by the Department of Economic Affairs of the Union Government and it is also tentatively proposed to have the agreement between KMRL and AFD signed at Kochi in February, Elias George told reporters.
A delegation from the French Embassy in India as well as the top officials of AFD, including CEO of AFD Anne Paugam are expected to be in Kochi for signing the agreement.
A key reason for AFD's funding of the Kochi Metro Rail project is KMRL's commitment to having an integrated transportation system in place in Kochi, he said.
