MMRDA may ask for World Bank loan for third line of metro

After the initial level of talks with the World Bank about funding the upcoming big ticket infrastructure projects in the Mumbai Metropolitan Region, officials of the Mumbai Metropolitan Region Development Authority (MMRDA) have hinted that the third line of metro running between Colaba and Bandra may be funded by the bank.

The officials have also said that the bank is more than willing in funding the infrastructure projects including the metro.

Explaining the idea of a possibility of the Bank funding the third line, MMRDA commissioner Ratnakar Gaikwad said, “The viability gap of the third line is close to 50%. This will mean that the possibility of the Centre fully funding it is slim. We can ask the WB to come up with their share of funds for it.” But he made it clear that the authority is firm on going ahead with the PPP model for constructing all the upcoming lines of the metro rail.

Senior officials in the authority did agree that it will be difficult for the WB to fund the viability gap portion of the metro projects since the Bank wants to fund the metro in Mumbai in totality.

“However, there can be ways out. International Finance Corporation - one of the arms of the WB has been specially created for funding private sector companies in developing countries,” said an official.