Pune metro rail project : AFD and MAHA-METRO sign an agreement
The French Development Agency (AFD - Agence française de développement) and the Maharashtra Metro Rail Corporation Limited (MAHA-METRO) today signed an agreement for extending bilateral funding of up to 245m Euros to fund MAHA-METRO’s Pune metro rail project.
Pune, 9 February 2019
The Credit Facility Framework Agreement for the project was signed last week in Delhi on the 28th of January, 2019.
The Pune Metro aims to improve everyday public transport for the 7.5 million residents of this important economic hub. The metro will decongest the city centre, contribute towards improving air quality and lowering the city’s carbon footprint. The two metro lines, totaling a network of over 33km and 30 stations, are expected to carry 6,00,000 passengers a day once the metro is completed. MAHA-METRO will also encourage physical and fare integration with other modes of transport, including bus and rail services. The project will also foster green urban mobility through multimodal integration, as well as a unique tree transplantation strategy.
The total estimated cost of the Pune Metro Project is 11,420 crore INR, of which the loan component to be funded by the European Investment Bank (EIB) and AFD is 5831.5 crores. This project marks the first co-financing between AFD and EIB.
Under the current Project Agreement between AFD and MAHA-METRO, a first tranche of financing for 180m Euros will be extended, with a second tranche of up to 65m Euros to be availed of in the next three years. The AFD financing will be primarily used to fund system packages, including signaling, overhead catenary systems, power supply, telecom as well as a portion of the civil works.
Speaking at the event, Ms. Sonia Barbry, Consul General of France in Mumbai, said, ‘The Pune Metro is a key piece in our broader bilateral relationship. The bilateral cooperation between France and India is today, more than ever, committed to meeting climate change challenges by promoting collaboration in sustainable urban development.’
The ceremony was also the occasion for AFD and MAHA-METRO to sign a Memorandum of Understanding for a multi-year technical cooperation programme. In addition to the loan, French expertise will be used to support MAHA-METRO in its endeavour to bolster its Operations & Maintenance strategy and multi-modal integration efforts, through a technical cooperation grant financed by the French government.
The signature of the Project Agreement and the Technical Cooperation MoU will deepen a longstanding relationship between MAHA-METRO and AFD, which has also been financing the Nagpur Metro (130m Euros) since 2015. These operations are in line with AFD’s focus, under the Indo-French urban development partnership, on clean, socially inclusive and climate-friendly mobility solutions in India’s booming cities.
The agreements were signed by Dr Brijesh Dixit, Managing Director, MAHA Metro and Mr Nicolas Fornage, Regional Director for AFD in India and Bangladesh, in the presence of the Honorable Chief Minister of Maharashtra, Shri Devendra Fadnavis, Ms. Sonia Barbry, Consul General of France in Mumbai and other dignitaries.
MAHA-METRO is a Special Purpose Vehicle (SPV) created as a 50:50 joint venture between the Government of India (GOI) and the 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 and Pune. Maha Metro aims to provide a safe, reliable, efficient, affordable, commuter-friendly and environmentally sustainable rapid public transport system for Nagpur and Pune to improve the quality of life of their 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 as well as in French overseas territories.
AFD works in many sectors: energy, health, biodiversity, water, digital technologies, training. It supports the transition to a safer, more equitable and more sustainable world, a world we share in common. Its action is fully in line with the UN 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 10.4bn EUR to finance these projects.