Even as the issue of necessity and legality of the third Mandovi bridge is being largely debated, one is left guessing why the government would borrow Rs 460 cr at an interest rate of 10.5 per cent per annum for the project.
The issue gains significance as the State is slipping into a debt trap and the interest on the loan for the Mandovi bridge itself will dent the State’s finances by Rs 48.3 cr annually.
This funding mechanism is extremely expensive for an infrastructure project like a bridge, where normal interest rates for such major projects range from 4 to 6 percent.
The question, therefore, is why is the government/GSIDC opting for funding at such exorbitant rates of interest?
Sources said that the bridge was earlier to be funded by HUDCO where interest rates are in the range of 4 to 6% but the loan was rejected and the State then approached NABARD.
While presenting the Budget in the Assembly, the Chief Minister released figures that public debt in Goa stood at some Rs 12,000 crore. It is but natural to assume that this profligate borrowing of Rs 460 crore from NABARD will add to that debt.
The other aspect to such expensive borrowing is that the government will place a toll on the 3rd Mandovi Bridge to recover their profligacy. Thus, for a third bridge over the Mandovi, which at this point of time appears unnecessary, citizens using it may end up paying through their nose.
Officials at NABARD, speaking on condition of anonymity, said the third Mandovi bridge, which will be Goa’s biggest and most high profile, is a big project for NABARD funds.
The apex bank for agriculture credit has also been roped in by the State to finance the Keri bridge at Tiracol.
NABARD, under RIDF, has sanctioned loans worth Rs 309.4 crore, for five projects in 2014-15. Of these, two are drinking water supply projects at Amthane (Rs 48.8 crore) and Ganjem (Rs 68.1 crore) while the remaining three are the Keri bridge, four public health centres at Shiroda, Curchorem, Cansaulim and Pernem (Rs 101.9 crore) and four roads (Rs 16.3 crore).
The other non-RIDF infrastructure project is a sewerage network in Porvorim for which Rs 70.69 crore has been sanctioned and Rs 14 crore disbursed.
NABARD provides cheap loans for agriculture and infrastructure development.
