Kochi Metro Construction at Risk as Loan Delays Persist
The second phase of the Kochi Metro project is currently facing significant delays due to an ongoing loan issue. Intended to extend the metro line from Kaloor Jawaharlal Nehru Stadium to Kakkanad, this critical phase of the metro’s expansion relies heavily on foreign funding. However, a series of technical glitches has caused delays in securing the necessary loan from the Asian Infrastructure Investment Bank (AIIB), pushing back the timeline for the project. Originally expected to receive funding by March, the loan may now be delayed until May, potentially further complicating the situation if the required procedures are not completed by then.
The Kochi Metro Phase II has an estimated cost of ₹1,957 crore, with AIIB expected to contribute ₹1,056 crore. The central and state governments are also part of the financial structure, but the absence of AIIB’s contribution is causing serious financial strain on the project. While the central government had allocated ₹100 crore for the second phase last year, those funds have yet to be received, and the state budget has allocated ₹289 crore for this year’s work. These delays in funding are causing increasing concerns about the project’s completion.
Initially, the French Development Agency (AFD) had agreed to finance the project, but as the timeline extended, AFD withdrew, and AIIB stepped in as the primary funding source. The construction, which officially began with the laying of the foundation stone in September 2022, has made slow progress compared to the first phase. Although preparation work, such as road widening, has started, the construction pace has been notably slower, with work still ongoing at the casting yard near Kalamassery HMT. As a result, traffic congestion has worsened in the surrounding areas.
The original completion date of June next year now seems uncertain, as delays in securing the full loan could push this timeline further. At present, four stations along the 11.2-kilometre stretch from Kaloor to Kakkanad have seen piling work completed, but substantial challenges remain. Additionally, the lack of adequate road width and the ongoing construction activities are making daily commuting difficult, adding to the frustration of residents and commuters alike.
With financial uncertainty still looming, the future of Kochi Metro Phase II hangs in the balance. If the funding delays continue, the project could face further setbacks, impacting the region’s infrastructure development and the daily lives of countless commuters.
