Date Of Post: 17 Jan, 2018
Bangalore: The EIB (European Investment Bank) has agreed to lend 500 million in two tranches, for funding Reach 6 (Gottigere-Nagavara) of Phase 2 of the Bangalore Metro Rail. AIIB (Asian Infrastructure Investment Bank) will co-finance with EIB for 300 million. Thus the total loan amount will be 800 million for Reach 6, BMRCL said in a release.
- Last year, the sovereign loan agreement for the first tranche of 300 million was signed between the government of India & EIB.
- The loan agreement for the second tranche from EIB will be signed before March 2019.
- These loans are untied and have a 20-year tenure, which includes 5 years moratorium for principal repayment.
300 Million Loan Agreement Signed-
- The project agreement for the loan agreement of 300 million was signed on Tuesday by Mahendra Jain, MD, BMRCL & Sunita Lukkhoo, Senior Loan Officer on behalf of EIB, in the presence of senior government officials.
- Bengaluru development minister KJ George asked EIB to consider funding other infrastructure projects undertaken by the state government.
- The financial support extended is the largest ever support for sustainable transport outside Europe.
- The financial support from EID would support one of the dense corridors in the metro network, which would subsequently connect to the Kempegowda International Airport.
Image Credit: BMRCL