Date of Post: 13 Dec, 2017
Bangalore: The AIIB (Asian Infrastructure Investment Bank) said it has approved a $335 million loan to finance a 100% electric metro rail project in Bangalore.
AIIB’s First Metro Project
- Investment in the Bangalore Metro Rail Project—Reach 6 (R6) is AIIB’s first metro project and its first joint financing partnership with the European Investment Bank (EIB), the multilateral development bank said in a statement.
- It said,“By expanding the city’s metro system, the project will provide high-capacity north-south connectivity through the centre of Bangalore—India’s third most populated city with a population of 9.6 million.”
- It added,“Travel times for some journeys impacted by the lack of a metro system are expected to drop from two hours today to 15 minutes when the R6 line is completed.”
MoU Between AIIB & EIB
- In May 2016, AIIB & EIB had signed a MoU (Memorandum of Understanding) establishing a framework of cooperation to conduct regular dialogues & explore joint infrastructure project financing.
- The Bangalore Metro Rail Project—R6 is the first project resulting from that framework.
- “We’re investing in this metro project because of its potential to greatly improve the mobility of commuters and further economic growth through better connectivity,” the statement quoted AIIB Vice President & Chief Investment Officer D J Pandian as saying.
Image Credit: mitsubishielectric