With Metro rail projects worth nearly Rs 50,000 crore lined up for execution in Mumbai over the next decade, the World Bank has evinced interest in funding these works at competitive rates, thus opening up more financing options for the city’s development authority.
Officials said World Bank loans had been more expensive so far as compared to other international funding agencies such as the Japan International Cooperation Agency (JICA). For the Rs 23,126-crore Colaba-Bandra-Seepz Metro, the Mumbai Metropolitan Region Development Authority (MMRDA) had sought a loan for more than half the project cost from JICA at a nominal rate of 1.4 per cent.
U P S Madan, metropolitan commissioner at the MMRDA, said, “We had an informal discussion with officials from the World Bank about a month ago and they have shown interest in our Metro projects. The World Bank has said it will give loans on a similar interest rate as JICA’s.”
As per MMRDA’s prior experience, the World Bank interest rates have been stiffer. The World Bank had partially financed the Mumbai Urban Transport Project (MUTP), which enhanced the capacity of the city’s suburban railway and road transport network. More info