French & German firms to visit the Vijayawada in Feb for funding Amaravati Metro

The State government had already released Rs 300 crore for land acquisition for the project.

Vijayawada: Funding agencies from France and Germany will  be visiting the capital city again in the second week of February. Their proposed meeting with Amaravati Metro Development Authority officials is generating interest among the top bosses of the government, as they are worried about the recent protests at Nidamanuru over the land acquisition for Metro Rail works.

Two funding agencies from Germany and France have visited the capital city on November 10 to have a dialogue with Amaravati Metro Rail Corporation (AMRC) authorities. After JICA’s exit from investing in the project, the AMRC has been exerting all efforts to find out a meaningful investment partner and as part of it, representatives from KFW of Germany and AFD of France have visited the capital city. In fact, the state government has released Rs 300 crore for Vijayawada Metro Rail project in August last. The release of funds will help start the project.

AMRC MD N. Ramakrishna Reddy said that Mr Dubreuil Herve, Ms Rima LeCoguic and Mr Matthieu Verdure from AFD, and Ms Usha Rao, Mr Robert Valkovic and Ms Julia Scholtes from KFW have visited the capital city in November last for a dialogue over granting the loan or financial assistance worth Rs 4,000 crore. “They are visiting again in the second week of February to have a review over the progress of the project,” Mr Ramakrishna Reddy said.

In fact, a four-member Japan International Cooperation Agency (JICA) team inspected the proposed metro corridors in the city in the month of April. Mr Ramakrishna Reddy, who accompanied the team, said that the JICA loan of Rs 4,200 crore would be released by July. The loan was being given with a moratorium of 10 years was the condition then. However, the JICA has incorporated too many conditions later, which prompted the AMRC to drop the idea of sailing with them and the AMRC declared that it in August.

The State government had already released Rs 300 crore for land acquisition for the project, according to the AMRC managing director. The JICA team reportedly expressed willingness to sanction loan to the tune of Rs 3,600 crore prior to their visit in February. But, the AMRC sought the increase in the funding and sanction Rs 5,000 crore. However, the JICA team then only gave a clarity that it has not financed more than Rs 4,000 crore to this kind of project elsewhere in the world.