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Yen may add to Metro muscle

After meetings, the Japanese Bank of International Cooperation (JBIC) is considering to fund a critical part of the Metro Rail project.

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The Japanese may turn out to be one of the biggest investors in the city’s ongoing infrastructure projects. After a series of meetings with state officials on Thursday, the Japanese Bank of International Cooperation (JBIC) is considering to fund a critical part of the Metro Rail project.

Incidentally, the state’s decision to reach out to the bank is significant, considering it had decided against seeking funds from the World Bank, which had laid down some
stringent rehabilitation policies.

The JBIC will soon undertake a pilot study to assess the infrastructure projects while the state continues to promote public-private partnership to boost development.

Post-talks, officials with the Mumbai Metropolitan Region Development Authority (MMRDA) said that the state may turn to JBIC for the high viability gap funding (VGF) required for the third Metro Rail corridor between Mahim and Colaba. (VGF is the difference between the estimated project cost and the actual bid cost).

“The third corridor is very capital intensive since most of the rail will run underground — it will need funds to the tune of Rs10,000 crore — and it would require a high VGF, which can come from JBIC,” said PRK Murthy, chief of the transport and communication division of the MMRDA.

The added rail link on the bridge linking Sewree and Nhava — a part of the Rs4,000 crore Mumbai TransHarbour Link — may also get JBIC funding, said an MMRDA official. “The rail link has been part of the Mumbai Metro Master Plan (MMRP), which talks about the metro connectivity from the mainland to the hinterland,” said another official.

The Japanese pilot project will start as soon as the state sends an official signal. An MMRDA official said that it would take at least one year to procure the loan. “The JBIC  procedures are equally tough,” he said.

“But the bank has been supportive about the problems associated with rehabilitating project affected people (PAPs). JBIC, which will also be funding the Mumbai-Delhi freight rail corridor, has been studying our rehabilitation policies,” added another official.

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