Phase II construction of Kochi Metro in limbo due to loan delay

Kochi: The foreign loan for the Kochi Metro Phase II is facing delays due to technical glitches. The loan, which was to be taken from the Asian Infrastructure Investment Bank (AIIB), is intended for the construction of the second phase of the metro, running from Kaloor Jawaharlal Nehru Stadium to Kakkanad. However, due to incomplete procedures, the funds have not been made available yet. Initially, it was assessed that the funds would be available by March. However, according to the latest information, the loan may not be available until May.

If the procedures are not completed by then, the loan could be delayed even further. AIIB, headquartered in Beijing, is expected to provide ₹1,056 crore out of the ₹1,957 crore estimated for the construction of the second phase. Both the central and state governments are also contributing to the construction costs. The delay in receiving this amount is causing a financial crisis.

Though the central government had allocated ₹100 crore for the second phase construction last year, it has not been received yet. The state budget has allocated ₹289 crore for the metro this year. Initially, the loan for the second phase was intended to come from the French Development Agency (AFD), which had agreed to provide the loan. However, as the project got delayed, AFD backed out, and the focus shifted to AIIB. The foundation stone for the construction was laid in September 2022.

Preparation work for the project, including road widening, had started earlier. Compared to the construction of the first phase, from Aluva to Tripunithura, the pace of work in the second phase has been slower. It was initially announced that the second phase would be completed by June next year. However, if the funds continue to be delayed, it will be difficult to adhere to this timeline. The construction covers a distance of 11.2 kilometers from Kaloor Stadium to Kakkanad, and the piling for four stations along this section has been completed so far.

Construction work is progressing at the casting yard near Kalamassery HMT. The work is taking place with barricades in the middle of the road, leading to severe traffic congestion in the area. In several places along the route, the lack of sufficient road width is also making travel difficult.