Monday, June 14, 2010

PPP model for Metro Phase 2

PPP model for Metro Phase 2
Senthalir S | TNN

Bangalore: Shortage of funds coupled with escalating costs of the Bangalore Metro Rail project, has forced the government to look in for an alternative options to fund the Phase 2 of Metro Rail project, the date for which has yet not been fixed.
Sources in the infrastructure department say that the government does not have money to fund the Rs 16,000-crore Phase 2 of the project and it will have to be implemented in public-private partnership model. The government cannot pool in such a huge amount on this project since it will have to focus on development in other parts of the state.
BMRCL managing director N Sivasailam said the detailed project report for Phase 2 of Metro Rail is under preparation. The funding pattern for the Phase 2 will be decided by the share holders. The Bangalore Metro Rail Corporation Limited has already started to rope in private partners in their project. It has tied up with Mantri Infrastructure Pvt Ltd to build the Sampige Metro station.
BMRCL had acquired 5.04 acre land belonging to Mantri developers. The agreement signed by them provided land free of cost for the construction of Sampige Road Metro Station. On the other hand, the space surrounding the station would be used for commercial purpose by the developers.
The second phase of the Metro project will be 51.3 km, running from Peenya to Bangalore International Exhibition Centre in the North, Puttenahalli to White Field in the South, Baiyappanahalli to ITPL in the East, Mysore Road to Kengeri in the West and from IIMB to Nagawara.
Phase 1 of the project run across 42 km. The escalation cost of the project has reached Rs 11,809 crore from the earlier projection of Rs 6,395 crore in 2005. At least 25 percent of the work has been completed in this phase.
BMRCL is talking to agencies like Asian Development Bank to raise funds.


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