China's AIIB To Lend $335 Million To Bangalore Metro
China-sponsored Asian Infrastructure Investment Bank has approved a $335-million loan for an electric Metro project in Bengaluru. The investment in the Bangalore Metro Rail Project-Reach 6 (R6) is the AIIB's first such financing and its first joint-financing partnership with the European Investment Bank. The European Investment Bank is the project's lead financier, with €500 million in funding.
"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," AIIB Vice-President and Chief Investment Officer D J Pandian said.
The Metro project is 100 per cent electric.
"The project's impact on the reduction of fuel consumption and traffic congestion will also help reduce local air pollution and noise and make Bengaluru a more livable city," Pandian was quoted as saying in the statement.
By expanding the city's Metro system, the project would provide high-capacity north-south connectivity through the centre of Bengaluru, India's third most-populated city, with a population of 9.6 million, the bank said.
"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," the AIIB said.
The announcement came a day after the AIIB said it had approved a $250-million loan for a natural gas project in China, the bank's first loan to a Chinese project.
With inputs from Housing News