Malaysian consortium: We’ll bear burden

Malaysian consortium: We’ll bear burden
The Times of India

Bangalore: As if taking the cue from Union finance minister P. Chidambaram’s statement that the cost of the Bangalore Metro Rail project is too high and has to be reworked, Kencana Kasifa Transit Systems (KKTS), the Malaysian consortium, has come forward to submit a counter proposal to build the system on a privatepublic-partnership basis.

The consortium represented by KASIFA managing director Syed Saahil Saif is in Bangalore and has offered to undertake the project on a Build, Own, Operate,

Transfer (BOOT) basis where the Kar nataka government will take an equity of 10 per cent of the total project cost.
The Public Investment Board (PIB) which met in New Delhi a fortnight ago to decide on the Bangalore Metro Rail has sent back the proposal to the Karnataka government seeking clarifications and opined that the estimated cost of Rs 6,207 crore was too high to sustain the project. The Bangalore Mass Rapid Transit Limited (BMRTL) has sent its clarifications, but the next meeting of the PIB has not been held yet.

To fast-track the project, KKTS has agreed to follow the alignment proposed by the Delhi Metro Rail Corporation (DMRC) for the BMRTL project, and keep to the cost and completion schedule as proposed by BMRTL.

KKTS has sought two months to undertake a due-diligence study and submit a counter techno-financial proposal to the government. This proposal will help the government evaluate the two options and take a decision based on the merits, Saahil told The Times of India. KKTS is offering to build either a driver-less system or a conventional system.
Salient features in the proposal include reduction of financial burden on the government: KKTS will take raise the entire loan portion with no government guarantees.

KKTS has also expressed the willingness to work closely with the BMRTL on all important issues including fare structuring. “We feel that the price has to be relevant and economical to the general public to accept a mass transit system for its eventual success.

KKTS is asking for a 30-to 35-year concession period after the commissioning of the project. Saahil said that it has the experience of running two similar systems in Kuala Lumpur where the ridership has been steady.

On revenue generation, Saahil said that KKTS has developed a model to make good the investments and run the system profitably. Listing out some of them, he said commercial development at stations which includes creating parking complexes at city centres like M.G. Road and Majestic area, theme stations, earmarking each station to a corporate to take care of the operations and maintenance of station building in lieu of advertisements.