The Asian Development Bank (ADB) is extending up to $250 million loan for Bangalore Metro Rail Corporation.
The ADB Board of Directors approved the loan which will partly fund 42.3 km of track, rolling stock, stations, and equipment for two key routes in the Metro Rail Transit System, said a release. It is ADB's first metro rail project in South Asia. The project, to cost an estimated $2.7 billion and to be completed in 2013, is being carried out by the Bangalore Metro Rail Corporation, a special purpose vehicle, jointly owned by the Government of India and the Government of Karnataka.
Innovative financing
“Its innovative financing model should lead to faster development of urban transport in India through catalysing commercial debt and private finance," said Mr Anouj Mehta, Focal Point for Public-Private Partnerships (India) and Senior Infrastructure Finance Specialist in ADB's South Asia Department, in a statement.
“The project is pioneering, in using the non-sovereign public sector lending modality, with excellent potential for India and Asia,” said Mr Hayato Hoshi, Investment Specialist in ADB's Private Sector Operations Department.