level of financial participation by the Government is an essential prerequisite to ensure the project's commercial viability and thus the participation of UBGC and the successful implementation of the ELRTS. Cost borne by the Government in terms of land, equity and subordinate debt is shown in Table 3.1-1.
UBTSL is expected to complete the Detailed Feasibility Study (DFS) by January 1988' After approval and acceptance of the DFS by the Government, BMRTL will negotiate and sign a Concession Agreement with UBTSL by about mid-1998, soon after which a new Concession Company will be set up by BMRTL and UBTSL as a joint-venture firm. The Concession Company will thereafter carry out all further activities to bring the project to a successful Financial Close (expected by about mid-1999), and subsequently take up the actual construction of Phase One of the project.
3.1.2 Actions by the government to facilitate project implementation
BMRT CESS:
In order to raise money to meet its financial commitments to the project, the Government has been collecting, from April 1, 1995, a special "BMRT Cess" on various commercial transaction within the Urban Planning Area of Bangalore. This is being put into a separate dedicated "BMRTS Fund" form which moneys will be disbursed periodically only to meet project expenditures.
LANDS FROZEN FORTHE LRTS:
The ELRTS is proposed to be built almost wholly on Government-owned lands. The Government has identified and frozen from further development the right-of-way for all the LRT lines and the various parcels of land required for stations, depots, stabling yards and other LRT facilities.
ENWRONMENTAL IMPACT ASSESSMENT STUDY:
BMRTL has commissioned Rail India Technical and Economic Consultancy Services (RITES) of Delhi, to carry out a detailed EIA Study for the project and recommend ways to mitigate its adverse impacts on the environment.
ENGINEEMNG, LEGAL AND FINANCIAL ADVISERS:
BMRTL has employed American Bechtel Inc. as its General Engineering Consultant. It has also invited global proposals fors and proposes shortly to appoint, internationally-reputed and experienced legal and financial firms as its Project Legal Adviser and Project Financial Consultant respectively. These consultants will review, on a progressive basis and on behalf of the Government / BMRTL, UBTSL's proposals for the project and the documentation which they will produce for the purpose, to ensure that the Government's / BMRTL's
