From Our Special Correspondent
Daijiworld Media Network - Bangalore

Bangalore, Mar 27: Asian Development Bank has sanctioned a US $ 250 million loan through its non-sovereign lending window to the Bangalore Metro Rail Corporation Limited (BMRCL).

Key executives of both ADB and BMRCL signed the loan agreement on Tuesday, signalling the multilateral lending agency’s first foray into the mass rapid public transport sector in South Asia.

The loan, approved by the ADB Board in March last year will part-finance the Bangalore metro project that aims to ease traffic congestion in the city and help move 40,000 passengers a day, BMRCL said in a statement.

The metro project comprises two corridors with track length of 42.3 km. Part of the east-west corridor of 18.1 km between Baiyappanahalli and M G Road became operational in October last year.
 
 ''The loan represents a number of firsts for ADB in its partnership with India. This is the first ADB loan to the urban transport sector without recourse to sovereign guarantees,” said Hun Kim, Country Director for India, who signed the loan on behalf of ADB in New Delhi.

BMRCL Managing Director N Sivasailam signed the agreement on behalf of the BMRCL, a Special Purpose Vehicle jointly owned by the Centre and government of Karnataka which is executing the project.

''The ADB support to BMRCL lends additional credibility to the project especially in the financing model which has been jointly developed. The project is vital to provide the connectivity backbone to Bengaluru’s future economic growth,”said Sivasailam.

The metro rail project also includes a 24.2 km North-South corridor, as well as 39 stations, electrical works, signalling and telecommunications system, centralised train control system, automatic fare collection and 168 train cars.