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European Investment Bank (EIB) will lend €500 million in two tranches to Bangalore Metro Rail Corporation (BMRCL) to fund part of its projects for Reach-6 — Gottigere to Nagawara line under Phase-2.
Asian Infrastructure Investment Bank (AIIB) will co-finance along with EIB for €300 million. In all, the total loan amount will be €800 million for Reach-6.
Pact signed
In pursuance of the loan agreement for the second tranche of €200 million, the project agreement was signed on Friday in Bengaluru by Ajay Seth, Managing Director, on behalf of BMRCL and Barragam, Director Global Partners Department, on behalf of EIB in the presence of Chief Minister HD Kumaraswamy and Deputy Chief Minister G Parameshwara.
The sovereign loan agreement for the first tranche of €300 million was signed between Government of India and EIB on October 5, 2017. The loan agreement for the second tranche of €200 million (₹1,540 crore) was signed on September 29, 2018. These loans are untied and has a 20-year tenure, which includes four-year moratorium for principal repayment.
Phase-2 progress
Welcoming the funding, Kumaraswamy said, “It is heartening to note that multilateral and bilateral financial institutions have been funding Bangalore Metro Rail projects and EIB has opted to fund BMRCL under climate action and environment facility, which is very apt for BMRCL’s Phase-2.”
The Phase-2 of the project has picked up momentum and the management is accelerating the works. “Undoubtedly, on completion of the Phase-2, I hope the citizens will extend the same patronage as that given to Phase-1,” he added.
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