December 21, 2018
New Delhi, December 21, 2018: Japan International Cooperation Agency (JICA) signed an agreement with the Government of India to provide Official Development Assistance (ODA) loan of 75,519 million Japanese yen (approximately INR 4,300 crore) for Chennai Metro Project (Phase 2) (I). The ODA loan conditions are very concessional, i.e. 0.2% interest rate for construction activities and 0.01% interest rate for consulting services with 40 years of repayment period (including 12 years of the grace period). The concessional rates are on account of this being the 1st project utilizing the special conditions for metro sector under ODA loans.
The objective of the Project is to help mitigate traffic on roads in Chennai Metropolitan Area. It will reduce road accidents and vehicular pollution, and will lead to the balanced socio-economic development in Chennai by enhancing the city's transport system.
The Agreement was signed between Dr. C.S. Mohapatra, Additional Secretary, Department of Economic Affairs (DEA), Ministry of Finance, Government of India and Katsuo Matsumoto, Chief Representative, JICA India Office.
Speaking on the occasion, Mr. Katsuo Matsumoto, Chief Representative, JICA India Office said, "The JICA-supported Chennai Metro (Phase 2) Project will further expand the existing metro rail network with additional 52.0 km, covering the construction of Corridor 3 from Madhavaram Milk Colony to Sholinganallur, and Corridor 5 from Madhavaram Milk Colony to Chennai Mofussil Bus Terminus. JICA recognises that Corridor 3 will improve access for industrial workers in the city, while Corridor 5 will cover the central business district and residential cum institutional complex of the Chennai Metropolitan Area. We also expect that Phase 2 will boost the ridership of Chennai Metro, which will promote modal shift and contribute to traffic mitigation, pollution abatement and ensure overall ease of commuting for the people."
Chennai Metro Rail Limited (CMRL) is the Executing Agency of the Project.
Mr. Katsuo Matsumoto, Chief Representative, JICA India and Dr. C.S. Mohapatra, Additional Secretary, DEA, Ministry of Finance, during the signing ceremony
Mr. Matsumoto and Dr. Mohapatra, holding up the signed loan agreement of Chennai Metro (Phase-2)
Since 2008, JICA has extended 183,595 million Japanese Yen (approximately INR 11,000 crore) in concessional ODA loans over five tranches of Phase 1 to help develop around 53.3 km metro rail system in Chennai. With the signing of this ODA loan agreement, the cumulative loan amount for Chennai Metro Project currently amounts to 259,114 million Japanese Yen (approximately INR 16,000 crore), and the cumulative loan amount provided by JICA for metro projects in India (including Delhi, Bengaluru, Kolkata, Mumbai and Ahmedabad Metro's) exceeds 1.2 trillion Japanese Yen (approximately INR 74,000 crore).
Established by a specific law as an independent administrative institution under the Government of Japan, the Japan International Cooperation Agency (JICA) aims to promote international cooperation as the sole Japanese governmental agency in charge of ODA implementation. JICA is the world's largest bilateral donor agency. JICA works as a bridge between Japan and emerging countries, and provides assistance in the form of loans, grants and technical cooperation, so that the emerging countries can strengthen their capabilities.
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