The request for qualification (RFQ) to construct the final stretch of the Eastern Dedicated Freight Corridor between Son Nagar in Bihar and Dankuni in Bengal is likely to be issued in the next few weeks, with the World Bank proposing to offer viability gap funding to the project.

The 538km project between Son Nagar-Gomoh-Dankuni was originally slated to be constructed in the public–private partnership mode. However, the huge cost of the infrastructure project proved to be a dampener for the participation of the private sector.

“World Bank has indicated that it could provide financial assistance as they consider the project to be viable. They have offered two-three models of funding, which we would have to further discuss and take a call,” Anurag Sachan, managing director, Dedicated Freight Corridor Corporation Limited (DFCCIL), told The Telegraph.

He said construction would be done in two parts: Sonnagar to Gomoh in Jharkhand and Gomoh to Dankuni. While the first phase is estimated to cost Rs 9,364 crore covering a distance of 264km, the second phase would cost about Rs 7,359 crore covering 967km.

Data showed possession of about 89 per cent of the project land of 1,222 hectares in Phase One and 88 per cent of the 967 hectares in Phase Two.

Sachan said the plan was to float RFQ for Phase 1 in the coming weeks and complete the process of signing of the concessional agreement by the end of December.

“The bank provides partial funding for the project, which can be given to the bidding private player at a nominal rate and the rest of the sum is financed by them through banks, making the overall cost of finance lower.”

Atul Agarwal, senior transport specialist, World Bank, said “as the bank does not itself finance private players in the construction of such infrastructure projects, its sister concern International Finance Corporation could be roped in to provide financial assistance for the project.”

The IFC offers investment, advisory, and asset-management services to encourage private-sector development in less developed countries.

The stretch is a part of the 1,839-km eastern freight corridor, which runs from Ludhiana in Punjab to Dankuni.