INDIA’S IERS INKS FINANCIAL PACT WITH SCOMI-GEODESIC

By P.Vijian

NEW DELHI, July 4 (Bernama) -- India's reputed rail-infrastructure funding
firm, ITNL Enso Rail System Ltd (IERS), has signed a pact with Scomi-Geodesic to
fund the proposed Bangalore monorail project.

Scomi Group, along with its consortium partner Geodesic, has submitted a
proposal under the Swiss Challenge procurement process, to the Karnataka state
government to build the 60km line.

The first phase of the 16 km stretch is estimated at RM1.5 billion (US$0.5
billion).

"We did a preliminary due diligence on the project and decided to take a 74
per cent equity in the project," Sanjiv Rai, managing director and chief
executive officer of IERS, told Bernama.

Under the memorandum of agreement signed last week, IERS would finance 74
per cent of the 16km project, with the balance to be funded by Scomi and
Geodesic.

IERS, a subsidiary of IL&FS Transportation Network Ltd (ITNL), is involved
in funding and business development.

The Bangalore project is undertaken on a public private partnership (PPP)
model and the state government has cleared the detailed project report (DPR)
submitted by Scomi-Geodesic.

"Scomi has proved its technical competency over the last 10 years.

"They have demonstrated globally, to qualify technically, deliver on time
and deliver according to specification. Scomi has positioned itself quite well
outside Malaysia. We are comfortable in taking the stake," added Sanjiv.

Scomi is currently constructing India's first monorail system in Mumbai. The
19.5 km stretch is being built, together with its partner Larsen and Toubro
(L&T).