TN going for PPP in implementing monorail a hitch in funding the project, says JICA official
C Shivakumar
Chennai:
The public private partnership (PPP) model of estimated Rs 16,650
crore Chennai Monorail Project is forcing Japan International
Cooperation Agency (Jica), a governmental agency of Japan, to think
twice on funding the project.
Senior representative of Japan International Cooperation Agency
Ichiguchi Tomohide said that JICA is keen to fund the monorail project
but the hitch is that it won’t be able to fund a private project.
The funding of Chennai monorail project could only happen if the state
government makes a policy change to the project, he said.
To a query on why JICA won’t fund the project, Tomohide said that
currently the project is being implemented on a Public Private
partnership one unlike Chennai Metro Rail which is totally a
government funded project.
The project is built on a public private partnership and is to be
executed under design, build, finance, operate and transfer (DBFOT)
scheme. Sources said the government has agreed to pay Rs 970.5 crore
to the operator as a grant.
Tomohide said as long as the project is a PPP model, it is not
eligible for funding from JICA. Sources said it is likely that the
government may go in for a policy change and make the project a
government funded one like it did in the case of Chennai Metro Rail.
Tamil Nadu created a Special Purpose Vehicle for implementing the
Chennai Metro Rail project.
The SPV was incorporated on December 2007 under the Companies Act. It
has now been converted into a joint venture of Government of India and
Tamil Nadu government.
Meanwhile, the state government has identified four corridors for the
project. And it has already issued request for qualification (RFQ)
from interested parties to develop the project.
Monorails will run between Poonamallee and Kathipara with a link from
Porur to Vadapalani.
C Shivakumar
Chennai:
The public private partnership (PPP) model of estimated Rs 16,650
crore Chennai Monorail Project is forcing Japan International
Cooperation Agency (Jica), a governmental agency of Japan, to think
twice on funding the project.
Senior representative of Japan International Cooperation Agency
Ichiguchi Tomohide said that JICA is keen to fund the monorail project
but the hitch is that it won’t be able to fund a private project.
The funding of Chennai monorail project could only happen if the state
government makes a policy change to the project, he said.
To a query on why JICA won’t fund the project, Tomohide said that
currently the project is being implemented on a Public Private
partnership one unlike Chennai Metro Rail which is totally a
government funded project.
The project is built on a public private partnership and is to be
executed under design, build, finance, operate and transfer (DBFOT)
scheme. Sources said the government has agreed to pay Rs 970.5 crore
to the operator as a grant.
Tomohide said as long as the project is a PPP model, it is not
eligible for funding from JICA. Sources said it is likely that the
government may go in for a policy change and make the project a
government funded one like it did in the case of Chennai Metro Rail.
Tamil Nadu created a Special Purpose Vehicle for implementing the
Chennai Metro Rail project.
The SPV was incorporated on December 2007 under the Companies Act. It
has now been converted into a joint venture of Government of India and
Tamil Nadu government.
Meanwhile, the state government has identified four corridors for the
project. And it has already issued request for qualification (RFQ)
from interested parties to develop the project.
Monorails will run between Poonamallee and Kathipara with a link from
Porur to Vadapalani.
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