Hyderabad: The proposed metro rail project for Vijayawada and Visakhapatnam has moved forward with the central government giving its nod to the AP government to seek international funds to execute the ambitious work. The Japan International Cooperation Agency (JICA) has also agreed in principle to fund the metro rail projects. A JICA team is currently visiting Vijayawada for a first hand assessment of the project.
“The Union urban ministry has recommended to the department of economic affairs to allow AP to seek financial assistance from ex ternal agencies,” said AP municipal administration principal secretary R Karikal Valaven. According to officials, the terms and condi tions offered by JICA are borrower-friendly. The state government can repay the loan over a period of 30 to 40 years.On top of it, a moratorium will be applied for the first 10 years. “The rate of interest is only three per cent. Even in case of fluctuation in the rate of Yen, AP still can handle the situation,” officials said.
Delhi Metro Rail Corporation (DMRC) has been entrusted with the task of monitoring the metro rail projects. It has floated tenders for Vijayawada Metro in September last year. Since then, the DMRC has extended the deadline four times.