JICA extends ODA loan of 19,981million Japanese Yen for the ChennaiMetro Project



JICA extends ODA loan of 19,981million Japanese Yen (approx. INR 1180crore) for the ChennaiMetro Project

The assistance will further contribute to mitigate the traffic congestion and air pollution in the metropolitan area

New Delhi/Chennai, March 4, 2016:  Japan International Cooperation Agency (JICA)today has extended Official Development Assistance Loan (ODA)of 19,981million Japanese Yen (approximately INR 1180 crore) to the Chennai Metro Rail Ltd. (CMRL) for construction of Chennai Metro. The ODA loan's conditions are very concessional, i.e. 1.4% of interest rate and 30 years of repayment period (including 10 years of grace period). The assistance from JICA will facilitate construction of underground tunnels, rail-tracks, electrical, telecommunication and signalling systems, procurement of the trains and consultancy service.
India is JICA’s largest partner in the world. With the signing of this loan agreement for Chennai Metro Project, the cumulative loan amount provided by JICA for metro projects in India (including Delhi, Bengaluru, Kolkata,Mumbai and Ahmedabad Metro’s) has exceeded 1 trillion Japanese Yen(approximately INR 59071 crores).
The agreement was signed between Takema SAKAMOTO, Chief Representative, JICA India Office and   S. Selvakumar, Joint Secretary, Department of Economic Affairs, Ministry of Finance, Govt. of India at Ministry of Finance.
The project will provide the Metro Rail System network of approx. 45 km from Washermenpet to Chennai Airport (Corridor 1) and Chennai Central to St. Thomas Mount (Corridor 2). The project would include the construction of nineteen underground and thirteenelevated stations of Corridor 1 &2. It will cover the center business district area and residential and cum institutional complex area of Chennai Metropolitan Area.The metro line from Koyambedu to Alandur of Corridor 2 (10km), covering seven elevated stations, started commercial operations in June 2015. In 2016, the other stretches will be commissioned, and Chennai Airport will be connected by metro.
The completion of the metro will mitigate the impacts caused by mounting traffic in Chennai such as increased traffic congestion, air pollution, road accidents and journey time. Development of metro in Chennai will provide safe, timely and comfortable travel with high reliability of services to the citizens, as a typical example of high quality infrastructure.
The Executing agency for the project is Chennai Metro Rail Limited (CMRL).
Speaking on the occasion, Mr. Takema SAKAMOTO, Chief Representative, JICA India Office said, "JICA has been promoting development of economic infrastructure which facilitates sustained growth. Chennai metro will mitigate traffic congestion and enhance ease of travel; and reducing traffic congestion and air pollution raises local economic output and improve quality of life significantly. Opening of the first metro line by Chennai Metro Rail Limited is a giant stride towards fulfilling Chennai Metro's mission of providing safe, fast, reliable, accessible, convenient, comfortable, efficient, affordable and sustainable public transport service that is preferred by all."
Once completed the Chennai metro project is expected to have over 260 trains running in either direction each day, transporting an estimated 60 lakh people each day. The Chennai Metro is integrated with other forms of public and private transport including buses and sub-urban trains to facilitate seamless travel by commuters.
Advanced technology and systems will reduce the total life cycle cost (LCC) including operation and maintenance stage. In addition, the cooperation in urban rail sector with advanced technology enhances the development of human resources in India.
The metro provides safe and reliable service for female and vulnerable passengers such as the seniors and persons with disabled, by installing CCTV, intercoms for emergency communication, courtesy seats, women-only passenger car, space for wheelchairs in cars, textured paving blocks and lifts in platforms.
JICA has extended 130,293 millionJapanese Yen (approx. INR 7697crore) in concessional ODA loans over three tranches since 2008 for development of a 45 km metro rail system in Chennai. By adding this loan, the cumulative loan amount for Chennai Metro Project becomes JPY 150,274 million(approx. INR8877crore).
JICA has extended 337,796 million Japanese Yen (approx. INR 19954crore) in ODA loans since 1981 for all-round development in Tamil Nadu. The initiatives facilitated by the assistance include Tamil Nadu investment promotion program to expedite domestic and foreign investments, power transmission system enhancement across Tamil Nadu, provision for safe water supply and sewerage facilities across Tamil Nadu, water supply enhancement and fluorosis mitigation in Dharmapuri and Krishnagiri districts, biodiversity conservation and greening across Tamil Nadu, and the Chennai Metro. JICA has also been implementing technical cooperation for enhancement of Chennai port operations and Master Plan Study of Chennai-Bengaluru Industrial Corridor, among others, and extended grant aid of 2,162 million  Japanese Yen (approx. INR128 crore) for enhancement of facilities at Institute of Child Health and Hospital for Children (ICH) in Chennai.
About JICA
Established,by a specific law, as an independent administrative institution under the Government of Japan, the Japan International Cooperation Agency (JICA) aims to contribute to the promotion of international cooperation, as a sole Japanese governmental agency in charge of ODA implementation. JICA is the biggest bilateral donor agency. JICA works as a bridge between Japan and emerging countries, and provides assistance in forms of loan, grant and technical cooperation so that the emerging countries can strengthen their capabilities.

JICA India Office Web: http://www.jica.go.jp/india/english/


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