Chief Secretary A C Punetha said Visakhapatnam Metro was a prestigious project and the government was keen to execute it expeditiously.

Work on Vizag metro to start soon Korean bank to extend Rs 4100 cr loanImage: Wikimedia Commons/Ravikiran Rao
news News Thursday, March 07, 2019 - 07:56

Korea Exim Bank has come forward to extend a Rs 4,100 crore loan for Visakhapatnam Metro Rail project. A team of officials from Korea Exim Bank on Wednesday called on Andhra Pradesh Chief Secretary A C Punetha in Amaravati and discussed the loan proposal and related issues.

The state government had earlier sent a proposal in this regard to the Central government, which in turn forwarded it to Korea Exim Bank. Following this, the Bank deputed a team to Amaravati to hold talks with the state government.

The Chief Secretary urged the delegation to ensure that the loan is made available in time to take up the project.

Punetha said Visakhapatnam Metro was a prestigious project and the government was keen to execute it expeditiously.

It was in November last year that the state cabinet decided to go ahead with the Metro Rail in Visakhapatnam, a long-pending proposal, under the public-private partnership (PPP) mode, after the Centre’s refusal to come forward for the project.

“If the Centre is willing, the state will extend its full cooperation. Otherwise, the state will take up construction with private partnership,” Andhra Information and Public Relations Minister Kalva Srinivasulu told reporters at the time.

The three-corridor Vizag Metro would be built over a stretch of 42.55 km at a cost of Rs 8,300 crore, media reports suggested.

Meanwhile, in another development, the World Bank will provide Rs 2,200-crore loan to Andhra Pradesh for a project aimed at strengthening the state's overall healthcare systems.

The Central and state governments and the World Bank on Wednesday signed the loan agreement for a $328-million project to improve the quality and responsiveness of public health services and increasing access of population to an expanded package of primary health services.

The AP Health Systems Strengthening Project (APHSSP) will be implemented in the state with a focus on improved quality of care, improved responsiveness of public health services and increased access to an expanded package of primary health services, said the state government.

The $328-million loan from the International Bank for Reconstruction and Development (IBRD) has a six-year grace period, and a maturity of 29 years and 6 months.

The agreement was signed by Bandana Preyashi, Director - MI, Department of Economic Affairs, Ministry of Finance, Government of India; Poonam Malakondiah, Special Chief Secretary to the government, Health Medical & Family Welfare Department, State Project Director, APHSSP, Government of Andhra Pradesh; and Mohini Kak and Kari L. Hurt, representatives of the World Bank India.
 

IANS inputs

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