industry

Bengaluru Metro gets Rs 2,300 crore loan from AIIB


BENGALURU: The Bangalore Metro Rail Corporation Ltd (BMRCL) will receive a long-term loan of Rs 2,300 crore (335 million USD) from the Asian Infrastructure Investment Bank (AIIB) for the Phase II project. The deal was signed in New Delhi on Tuesday.

The loan will help the utility to fund the construction of the 14-km Dairy circle – Nagawara underground Metro line, which is part of Reach 6 (Gottigere – Nagawara) of Phase II. Already, the BMRCL has awarded the contract for constructing 7-km underground stretch and bids are being evaluated for the remaining 7-km stretch.

Apart from raising Rs 2,300 crore loan from AIIB, the BMRCL has already raised Rs 500 million Euros from the European Investment Bank (EIB) for the Phase II project. The sovereign loan agreement with the EIB for the first tranche of Euro 300 million was signed in October 2017. The second trance of Euro 200 million loan was signed in September 2018.

“The European Investment Bank (EIB) agreed to lend Euro 500 million in two tranches, for funding part of Reach – 6 (Gottigere to Nagawara). The AIIB agreed to co-finance with EIB for USD 335 million. Thus the total loan amount will be equivalent of Euro 800 million for Reach 6,” the press release said.

Other than the cost of acquiring land and shifting utilities, the construction of 14-km underground stretch alone is expected to cost Rs around Rs 5,000 crore.

The BMRCL had the responsibility to raise a long-term loan of around Rs 12,000 crore for the construction of the 72-km Phase II network, estimated to cost over Rs 26,000 crore. The BMRCL has tied up funds to the tune of 7,300 crores and hopes to raise the remaining funds in due course of time.





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