The Times of India 03.11.2009
PCMC to get Rs 210 cr loan from WB
PUNE: The Pimpri-Chinchwad Municipal Corporation (PCMC) is the first municipal corporation in the country to receive a loan under sustainable urban transport project (SUTP) from the World Bank (WB). The Rs 210-crore loan will be used for completion of flyovers and other development projects.
Speaking to TOI on Monday, PCMC commissioner Ashish Sharma said, "Various cities, including Pune, Jalandhar, Indore and Mysore, have applied to the WB for loans for their respective development projects. Sharma said the WB was ready to give a loan of Rs 370 crore to the PCMC. "But, after strict financial control for the past five months, we at the PCMC realised that such a huge loan was not required. We need only Rs 210 crore, the period of repayment for which is 30 years," Sharma said.
According to Sharma, negotiations for the loan began in 2006. "Ours is the first city to get the loan. We cleared all the four stages of the loan process, while the other cities are still to clear the first stage," he said.
"The PCMC will appoint a consultant to prepare the conditions of the tenders. We will need WB's approval for the tender format. Bids for the projects will be invited by the end of November and the work is expected to begin by the end of December," Sharma said.
The project works include three flyovers at Nashik Phata chowk, near Empire Estate in Chinchwad and at Dange chowk in Thergaon. The cost of the Nashik Phata flyover is Rs 93 crore, while the one near Empire Estate will cost Rs 60 crore The PCMC will also develop an intelligent transport system for Pune Mahanagar Parivahan Mahamandal Limited (PMPML). This system will cover both Pune and Pimpri-Chinchwad areas," he said.
Elaborating on the loan process, Sharma said all applications to the WB have to pass through four stages. The first stage includes finalising the project components. In the second stage, a detailed project report has to be prepared. In the third stage, the design has to be approved. Social and environmental assessment reports have to be prepared and approval has to be received for them. The next part involves preparation of the tender documents. After all the documents are approved by the WB, bids are invited for the projects. The contracts are awarded after scrutiny of the bids.
