Though the Government expects that international financing agencies would fund Smart City projects in a big way, some instances have come to fore where such institutions are dillydallying decisions to go for such funding.
The Asian Development Bank (ADB) and the Japan International Cooperation Agency (JICA) are reportedly delaying to fund the first Transit Oriented Development Project (TODP).
However, Chief Minister Naveen Patnaik has asked the Smart City Authorities to go ahead for the project to come at `250 crore on a 12-acre land in the city.
This decision was taken after a comparison made between the effective rate of interest of the ADB and the JICA and the rate of interest of State Government borrowings. The interest rates are nearer which seems not encouraging the two agencies, sources said.
Major components of the project include efficient parking place and circulation space, multi-level car parking, business plaza, iconic tower with retail office, hotel, convention hall, residential space, renovated Ashoka Market, city bus terminal, night shelter for homeless, street vendor rehabilitation facilities and public amenities.
Redevelopment of Bhubaneswar railway station is another important sister scheme of this project. The project would be developed in two phases.
The project would be taken up by a Special Purpose Vehicle (SPV) floated by Bhubaneswar Development Authority (BDA) through Project Management Consultants.
Funds would now be sourced from the CDP Infrastructure Development Fund (CIDF) of the BDA and the Smart City Mission Fund, said sources.