Mumbai: The Japan International Cooperation Agency (Jica) on Friday signed an agreement with the MMRDA to provide ¥144,795 million, or around Rs8,600 crore, official development assistance (ODA) loan for the ambitious trans-harbour link project in the city (MTHL).

“The financial assistance would be utilised to develop an expressway link comprising a dual three-lane main- carriageway bridge connecting Sewri on the northeastern periphery of Mumbai to Chirle in Navi Mumbai," Jica said in a statement.

The loan is offered at concessional rate of yen-London inter-bank offered rate plus 0.1% for the project activities and 0.01% for consulting services with a 30-year repayment period, including 10 years of grace period.

The agreement was signed in New Delhi between Takema Sakamoto, chief representative of Jica’s India office, and the Mumbai Metropolitan Region Development Authority (MMRDA) commissioner U.P.S. Madan.

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“The MTHL would bring a major change in the development of Mumbai and its suburban areas. The link would provide a crucial connectivity for the proposed Navi Mumbai airport and promote socioeconomic development of the entire Mumbai metropolitan region," Sakamoto said.

In a separate statement, MMRDA said the agreement has been signed for the disbursement of the first tranche of Rs7,910 crore which is about 45% of the total cost of the project.

“This is a big boost to the close to Rs18,000-crore MTHL as we have already shortlisted contractors, who have been issued requests for proposal for the execution of the project," Madan said.

The Jica has committed to fund 85% of the total project cost of Rs17,843 crore. The consortium of Aecom-Dar-Padeco-Ty Lin have been appointed as general consultants for the 22-km long link which is envisaged to be completed by 2021-22.

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