Financing Agreement of Nagpur metro rail project
French Development Agency (AFD) Signs 130-million-euro Credit Facility Agreement with Government of India for financing Nagpur Metro.
New Delhi, 17 November 2016
The Government of India, represented by Mr. Selvakumar, Joint Secretary - Department of Economic Affairs (DEA), and the French Development Agency (AFD), represented by Mr. Nicolas Fornage, Regional Director for South Asia, today signed a credit facility agreement of 130 million euros for financing the Nagpur metro rail project.
The signing took place in New Delhi, in the presence of His Excellency Mr. Alexandre Ziegler, Ambassador of France to India, and Mr. Brijesh Dixit, Managing Director of Nagpur Metro Rail Corporation Ltd.
The AFD-supported Nagpur metro project will include two lines covering a stretch of 38.1km, with 36 stations spread across the Nagpur metropolitan area; the objective is to reach a ridership level of 352 000 passengers per day upon the completion of the construction, planned for 2018.
This project develops an interesting approach by integrating the metro into the urban fabric: it has not only included the construction of a modern mass transit system, but also new mobility strategies for the city. Thus, its Comprehensive Mobility Plan has conceived a pedestrian- and cycle-friendly streetscape, junction improvement for public buses, and new feeder bus lines for an efficient last mile connectivity.
In the near future, the project will contribute to significantly reducing traffic jams in the city and adopting a cleaner development model. By encouraging the implementation of mass transport systems, it will help reduce greenhouse gas emissions.
The new metro for Nagpur will benefit from the international initiative “Mobilize your City”. This global programme, launched during the COP21 in Paris in 2015, aims at improving and developing sustainable low-carbon transportation systems in 100 developing cities in the world.
Nagpur is one of the three cities in India to which France is extending its technical assistance under the Smart Cities Mission. AFD is also considering the Nag River holistic rejuvenation project.
This new financing illustrates the willingness of the governments of India and France to strengthen their cooperation in the domain of sustainable urban transport infrastructure. Three French companies are already involved in this massive project: a consortium including Systra and Egis Rail has won the General Consultant contract, Enia Architects were selected to carry out the design of two major stations - Sitaburdi and Zero Mile; Vossloh Cogifer was chosen to provide switch systems.
With this latest financing, AFD’s recent operations in the sustainable urban transport sector in India has totalled to 620 million euros. The Government of India had earlier approached AFD for financing the Bangalore and Kochi metro projects. AFD’s action is conducted in accordance with its mandate in India, which has been defined with the Indian authorities to focus on green and inclusive growth.
As KfW is also financially contributing to the project, the city of Nagpur, and Nagpur Metro Rail Corporation Limited, will thus benefit from a solid Indo-European partnership and cofinancing, in a common endeavor to nurture sustainable urban futures.
Agence Française de Développement (AFD), a public development finance institution that implements the policy defined by the French Government, works to fight poverty and promote sustainable development. AFD operates on four continents via a network of 71 agencies. It finances and supports projects that improve living conditions for people, boost economic growth and protect the planet. In 2014, AFD committed 8.1bn euros to finance projects in developing countries and for overseas France. Since 2005, AFD has committed 18bn euros for projects that reconcile development and climate change, including 2.8bn euros in 2014 (i.e. 53% of its financing) in developing and emerging countries. http://www.afd.fr