KIIFB may fund mobility hub second phase development.

French Development Agency Agence Francaise de Developpement (AFD) may no longer be the sole agency being considered for funding the long delayed second phase of the Vyttila Mobility Hub with the Kerala Infrastructure Investment Fund Board (KIIFB) also now in the reckoning.

The crucial executive committee meeting of the Vyttila Mobility Hub Society (VMHS) to be chaired by the Chief Secretary on Thursday may consider whether to opt for the AFD or go for KIIFB. The last meeting had entrusted Kochi Metro Rail Limited (KMRL) with the task of drawing up a detailed project report based on which the agency had submitted a conceptual plan to the District Collector last week.

According to sources, the project may need at least ₹250 crore initially.

The AFD had offered to fund the second phase development of the hub as part of its interest in associating with the development of integrated multi-model transport system following their association with Kochi Metro.

The offer was all the more attractive owing to rather rock-bottom interest rate of 1.35% and a repayment window of 20 years after a five-year moratorium.

However, it is now learnt that the VMHS may consider loans from KIIFB considering the possibility of having to pay higher interest owing to the exchange rate fluctuation on availing of AFD assistance.

The plan is to take an average and calculate the interest rates based on which the agency to be approached would be decided.

The VMHS may have to take a decision soon considering that the second phase development spread over 25 acres would have to be completed before Kochi Metro starts operation through the stretch.

A proposal during the term of the previous government to fund the second phase development through Public-Private Partnership mode had to be shelved after no investor evinced interest in the projects owing to obvious feasibility concerns.

Now, the hub has 13 bus bays to park 42 buses while the objective is to develop a terminal with 139 bays for city services, converting the existing terminal into one for inter-State services.

The second phase development of the hub should ideally have parking facility for not less than 1,000 two-wheelers and 800 four-wheelers as was initially planned.

THE HINDU