AFD signs Credit Facility Framework Agreement for Pune Metro Rail Project
Maharashtra Metro’s Pune Metro Project: Credit Facility Framework Agreement between Government of India – Department of Economic Affairs (DEA) & the French Development Agency (AFD), France towards extending 245m Euro Loan to Maharashtra Metro’s Pune Metro Project.
Pune, 28 January 2019
The French Development Agency (AFD) & Department of Economic Affairs (DEA) on behalf of Government of India signed a Credit Facility Framework agreement on Monday the 28th of January, 2019 in New Delhi for extending bilateral funding to the tune of 245m Euros to fund Maharashtra Metro’s Pune Metro Project.
Maharashtra Metro Rail Corporation Limited (MAHA-METRO) a 50:50 Joint Venture of Government of India & Government of Maharashtra is currently executing the Pune Metro Project. The estimated total project cost of the Pune Metro Project is INR 11,420 crores of which the Loan component is INR 5831.5 crores. The loan component is to be funded by European Investment Bank EIB and AFD. The current credit facility signing between DEA and AFD France would be to extend bilateral funding to the tune of 245m Euros to fund the Pune Metro Project. For Maharashtra Metro, Pune Metro is the second Metro project after Nagpur Metro (130m Euros) to be financed by AFD France under the Indo French partnership for clean, socially inclusive and climate friendly mobility for people in cities.
Shortly after this signing, a project agreement will be signed between Pune Metro & AFD in Pune.
MAHA-METRO has been able to achieve financial closure of the Pune Metro Project, due to very strong support from Government of Maharashtra (GOM), Ministry of Housing & Urban Affairs (MoUHA) and Government of India (GOI) - DEA.
The funds to be received from AFD will be used primarily to fund system packages i.e. Signaling, OHE, Power supply, Telecom and some civil packages. The physical progress of the project is in excess of 27%.
The agreements were signed by Dr. C.S.Mohpatra, Additional Secretary Department of Economic Affairs, and Ms. Clémence Vidal de la Blache, Deputy Director for AFD in India, in the presence of the Ambassador of France to India, H.E. Mr. Alexandre Ziegler. The signing ceremony was attended by Joint Secretary, Ministry of Housing & Urban Affairs (MoHUA) Mr. Mukund Kumar Sinha, Dr. Brijesh Dixit, Managing Director, MAHA METRO, Mr. S. Sivamathan, Director Finance, MAHA-METRO & Mr. Ramnath Subramaniam, Executive Director(Strategic Planning), MAHA-METRO.
MAHA METRO is a Special Purpose Vehicle (SPV) created as a 50:50 joint venture between Government of India (GOI) & Government of Maharashtra (GOM) for speedy implementation of all Metro Projects outside the Mumbai Metropolitan Region (MMR). Maha Metro is currently executing two Metro projects in Maharashtra i.e. Nagpur Metro Project & Pune Metro Project. Maha Metro aims to provide a safe, reliable, efficient, affordable, commuter friendly and environmentally sustainable rapid public transport system for the Nagpur & Pune cities to improve the quality of life of the citizens.
AFD is an inclusive public financial institution and the main actor in France’s development policy. It makes commitments to projects that genuinely improve the everyday lives of people, in developing and emerging countries and in the French overseas territories.
AFD works in many sectors – energy, health, biodiversity, water, digital technologies, training – and supports the transition to a safer, more equitable and more sustainable world: a world in common. Its action is fully in line with the Sustainable Development Goals (SDGs).
Through its network of 85 agencies, AFD operates in 109 countries and is currently supporting over 3,600 development projects. In 2017, it earmarked EUR 10.4bn to finance these projects.