Bangalore Metro Rail Project Gets US $ 250 m ADB Loan
From Our Special Correspondent
Daijiworld Media Network - Bangalore
Bangalore, Apr 1: Karantaka’s prestigious Bangalore Metro Rail project, which is now unlikely to meet its target of chugging off the first stretch of the Phase I on Ugadi Day, will be getting a big loan of US $ 250 million to part finance the Namma Metro from Asian Development Bank.
''ADB is extending up to USD 250 million for a metro rail system in Bangalore as it will bring substantial economic and environmental benefits to the fast-growing city," the multilateral lending agency has announced.
The bank’s board of directors has approved the loan, which will partly fund a total 42.3 kilometres of track, rolling stock, stations and equipment for two key routes in Bangalore, ADB Senior Infrastructure Finance Specialist (South Asia Department) Anouj Mehta said.
The Bangalore Metro Rail Transit System Project (BMRTSP) has a total cost of US $ 2.7 billion, which is scheduled to be completed in 2013.
The Bangalore Metro Rail Corporation, a special purpose vehicle, jointly owned by the Government of India and the Karnataka government, is carrying out the project.
''The project, ADB’s first metro rail project in South Asia, will provide Bangaloreans with multiple benefits, including reduced road congestion and pollution and a safer, faster, fuel-saving public transport system for the city," Anouj Mehta said.
He said the project’s financing model should lead to faster development of urban transport in India by means of bringing in more commercial debt and private finance.
Bangalore has a population of over 60 lac but lacks a proper and efficient public transport system, the ADB said, adding: Metro Rail project when completed could prove to be critical for the city’s infrastructure development.
"The project is pioneering in using the non-sovereign public sector lending modality, with excellent replication potential for India and Asia," said ADB Investment Specialist Hayato Hoshi.
He explained that the project was amongst the first major metro rail systems in India to use a leveraged finance model combining government funds with commercial loans.
The Bangalore metro project is also being funded by the Japan International Cooperation Agency apart from ADB.