Agence Francaise de Development not best for funding: Sreedharan
In a mail to Lucknow Metro Rail Corporation’s (LMRC) Sreedharan suggests that an Agence Francaise de Development (AFD) loan is not best suited for the project. He points out that FIDIC contract conditions don’t suit the Indian situations and may lead to international arbitrations hiking the cost of the project. He adds that AFD would like to have clearances at every stage of the process which is very time-consuming and would delay the project. The exchange fluctuations also need to be borne by LMRC. He emphasises that loan from agencies like Japan International Cooperation Agency would be really beneficial.
FIDIC is a French acronym for International Federation of Consulting Engineers, an international standards organization for the construction industry.
Madhukar Jetley, advisor, externally aided projects department points out that the project is a large-scale project which would run up to 150km. Just two corridors from Amausi Airport to Munshipulia Chouraha and from Vasantkunj to Charbagh Railway Station would together comprise 35 kms. ADF has been providing funds for small projects.
JICA, on the other hand, has expertise in extending full loan amount to mega metro projects of the country like Delhi, Chennai, Bombay and Bangalore etc.
Source: The Times of India
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