New Delhi : The German Development Bank KfW, mandated by the German Government, has signed the Separate Agreement to the Loan Agreement for EUR 85 million (INR 630 cr.) with Kochi Metro Rail Limited (KMRL), said the Germany embassy here.

Kochi is one of the three smart cities chosen by the German Government for its support.In the presence of German Ambassador Dr. Martin Ney, the agreement was signed.

Ambassador Dr. Ney remarked that this is the first project to be signed under the climate friendly urban mobility framework of Indo-German cooperation and is a step forward for a smart Kochi.

The funds will be utilized to finance an integrated water transport system for Kochi city. The loan will be on-lent to the State of Kerala and KMRL, a Special Purpose Vehicle set up jointly by the State Government of Kerala and the Ministry of Urban Development, Government of India. The total project cost is estimated to be EUR 108 million (INR 801 cr.).

The remaining funds will be provided by the State of Kerala. KMRL, which is responsible for the implementing of the Kochi Metro project, aims to establish a seamless multimodal transport system in the city, integrating various transportation modes like the waterways, buses, metro rail and intermediate para transit systems like auto rickshaws and taxis. To realize this common command and control systems for all modes of urban transport, a harmonized route network and time schedule as well as joint ticketing are planned.

The project envisages the use of funds for the development and modernisation of the water transport system, to facilitate an increased and sustainable use of energy-efficient modes of urban mobility.

The German side will consider financing procurement of ferries, refurbishment or construction of jetties and associated dredging and other relevant investments. The project is expected to run ferries that are at least 20% more fuel efficient than the currently operating boats.

The overall project implementation will be in two phases and targeted to be completed by 2020. For the last mile connectivity, deployment of electric feeder buses, e-rickshaws and pedestrian walkways and bicycle tracks are envisaged. Better facilities for access and, in particular, requirements for the safety of women and specially challenged people will also be implemented.