AIIB approves $122 Million Loan for Kochi Metro Phase 2 Project

Kochi, India (Metro Rail Today): On August 21, 2024, the Asian Infrastructure Investment Bank (AIIB) granted approval for a substantial loan of USD 122.32 million (approximately ₹1,025.21 crore) to support the Kochi Metro Phase 2 project. This funding marks a significant milestone for the ambitious expansion of the metro system in Kochi, enhancing connectivity across the city.

Kochi Metro Phase 2, being developed by Kochi Metro Rail Ltd. (KMRL), will introduce an 11.2-kilometer elevated line known as the Pink Line. This new corridor will feature 11 stations, stretching from JLN Stadium to Kakkanad and Infopark (Smart City). The expansion aims to streamline transportation within Kochi and connect major hubs in the city.

Construction on this phase began in July 2024, with Afcons Infrastructure awarded a ₹1,141.32 crore contract. The tight deadline for completion is set at 600 days, underscoring the urgency and scale of the project.

Loan Utilization and Components

The AIIB loan will be disbursed between the third quarter of 2024 and the fourth quarter of 2027. The funds will be allocated for a variety of purposes, including goods, works, and non-consulting services necessary for the project. The loan is divided into two key components:

• Component 1 – Civil Works: This component covers the design and construction of the 11.2 km elevated viaduct and stations, including architectural finishes, track work, entry/exit structures, and staff quarters. It also includes the implementation of barrier-free, gender-responsive, and climate-resilient features to enhance accessibility and sustainability.

• Component 2 – Railway Systems and Trains (RS&T): This part of the loan supports the procurement and installation of essential systems and equipment. It includes traction and power supply facilities, auxiliary substations, electrical and mechanical works, telecommunications, security control, and Automatic Fare Collection (AFC) systems. Additionally, it funds the procurement of five new trains, as well as lifts and escalators for the stations.

Loan Approval Timeline

• Concept Review: November 7, 2023
• Appraisal Review/Final Review: February 29, 2024
• Financing Approval: August 21, 2024

The disbursement of the AIIB loan will facilitate the timely execution of Kochi Metro Phase 2, ensuring that the project meets its construction deadlines and quality standards.

Details of the New Stations

The Pink Line will introduce several new stations, including Jawaharlal Nehru Stadium, Palarivattom Junction, Alinchuvadu, Chembumukku, Vazhakkala, Padamughal, Kakkanad Junction, Cochin SEZ (Special Economic Zone), Chittethukara, KINFRA Park and InfoPark/Smart City (which will connect with the Kochi Water Metro).

Funding and Financial Details

The total estimated cost for Kochi Metro Phase 2 is USD 229.88 million (₹1,926.71 crore). In addition to the AIIB loan, the project will receive funding from the Government of Kerala ($66.80 million or ₹559.87 crore) and the Government of India ($40.76 million or Rs. 341.62 crore).

A loan contract signing ceremony with representatives from the Government of India is anticipated to occur in the fourth quarter of 2024.

Recent Developments

In related news, Afcons Infrastructure has recently completed a test pile boring within Infopark Phase 1, marking another step in the progression of the Kochi Metro Phase 2 project.

The approval of the AIIB loan for Kochi Metro Phase 2 signifies a critical advancement in the expansion of Kochi's metro network. This funding will support the construction of new elevated stations and essential railway systems, contributing to improved urban mobility and connectivity. As the project progresses, it promises to enhance public transportation infrastructure in Kochi, fostering economic growth and urban development.