offer, with the agreement of OECD member countries, OECF loan under a very favorable condition, namely 0.75% annual interest for 40 years of repayment period (including 10 years deferment). The future critical situations of environmental problems in case ELRT Project is not implemented should be clearly presented so that the Japanese Government may understand that this Project can solve environmental issues of Bangalore City. It is recommended that UBTSL should take into consideration this matter in securing financial resources from Japanese Government.
(4) Cost estimate for Phase I
JARTS's estimation is about 30% larger than UBTSL's estimation. This difference is caused mainly by difference in cost estimate in civil engineering structures and tracks. With respect to cost for systems, cost estimate by UBTSL and that by JARTS is nearly equal. (only 2% difference) With respect to rail vehicle, cost estimation by UBTSL is a little less than that by JARTS (13% difference).
With respect to software, namely cost for items 22〜item 29 of Table 3.1-2, the total cost for software shares nearly 38% of total cost for hardware. How much cost should be estimated for software depends on the policy / strategy of the enterprise concerned in carrying out the project. Cost for engineering, management & administration, construction management may be decreased by making use of local Indian consultants / experts experienced in railway systems. Cost for contingency and project reserve depends on the policy of the enterprise against the various risks the enterprise may encounter while constructing the project.
In summarizing the review UBTSL is kindly requested to reconfirm the cost estimation for civil engineering structure and track. In India, there will be many experiences in constructing similar railway civil engineering structures and railway tracks. In this context, reconfirmation by UBTSL in these civil engineering and track areas could be easily done with cooperation of engineers from such organizations as Indian Railway Konkan Railways, Calcatta Metro, etc.
(5) Construction schedule
The commercial opening of Phase 1 at the end of 2002 seems not easy. In order to shorten the construction schedule as much as possible, period for financing arrangement should be minimized as much as possible. Further number of laboures and cast in-site pile machines will have to be increased for shortening guideway construction period. UBTSL may be advised to confirm its original construction schedule.
The comments or correction by UBTSL on this draft Report are quite welcome and JARTS is ready to modify the Report appropriately, Lastly JARTS would like to express sincere thanks to UBTSL for its earnest and kind cooperation.
