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European Investment Bank to invest 500 mn euro in Bangalore Metro

The loan agreement was formally exchanged at the 14th India European Union Summit

ANI  |  New Delhi 

European Investment Bank

The (EIB) will provide 500 million to support the construction of a new 18 station Rapid Transit line in and the purchase of 96 train cars for use on the line. The formal exchange of contracts was attended by Prime Minister Narendra Modi, the President of the European Council, Donald Tusk, and the President of the European Commission, Jean-Claude Juncker, besides other senior political representatives from and the European Union. This support for investment to expand the second longest urban metro system in the country is the largest ever loan in and also the largest ever support for sustainable transport outside Europe. The loan agreement was formally exchanged by Andrew McDowell, Vice President, and representatives of the Ministry of Finance at the 14th The new support for investment by the Metro Rail Corporation to improve city transport is the largest ever support for sustainable transport outside Europe and will cut travel time for some journeys from two hours today to 15 minutes. The Asian Infrastructure Investment Bank is expected support the project in the first ever joint financing between the and the AIIB. "Daily travel for hundreds of thousands people on the Namma Metro will be transformed by expanding urban transport in "The impressive Reach 6 project shows how a world city is providing 21st century sustainable transport for its citizens. The EUR 500 million financing agreed with the European Investment Bank, the Bank of the European Union, demonstrates Europe's commitment to support world class climate related investment across Asia and the increased momentum of financing for urban transport across This new loan follows backing for the impressive Lucknow Metro announced with Prime Minister Modi last year and stronger engagement here in through our New Delhi office opened last March," said Andrew McDowell, Vice President responsible for South Asia. The is the world's largest international public bank and is owned by the 28 European Union member states. Speaking at the summit, the EU Ambassador to said that "The loan for the Metro will contribute greatly to a project that will reduce traffic congestion and pollution in a city that has seen explosive growth in recent years." "Successful implementation of Phase 1 of Metro has transformed sustainable transport in the city. Working with the is both helping to finance new stations and trains, and share technical experience from projects around the world." added Pradeep Singh Kharola, Managing Director of the Metro Rail Corporation Limited, a joint venture of the Government of and the Government of Karnataka. Once operational in 2021, the new 22-kilometer Reach 6 Metro Line is expected to bring about a transformation of public transport in the southern Indian city. The project includes both underground tunnels and elevated tracks.

Economic activity in will benefit from reduced journey time and lower costs. The improved transport links are also expected to reduce green-house gas emissions. Reach 6 is a key part of the second phase of the Metro and a key component of the future rail link to Airport. More than 800 people are expected to be employed during construction. The loan agreement was signed by Andrew McDowell, Vice President at the Ministry of Finance of the Republic of ahead of the 14th - Representatives of the Ministry of Finance, Metro Rail Corporation and the Asian Infrastructure Investment Bank are present at the contract signature. The Metro is the first infrastructure project to be jointly financed by the and the Asian Infrastructure Investment Bank. It is the EIB's second sovereign loan with the Republic of The is one of world's largest financiers for transport worldwide. Over the last five years it has provided more than EUR 70 billion for transport investment around the world. As well as providing EUR 450 million for construction of the new Lucknow Metro, In recent years the has supported investment in urban transport across Asia in Hanoi, Vientiane and Bangladesh. The is also backing expansion of sustainable transport across Europe, Latin America and Africa including in London, Paris, Dublin, Buenos Aires, Antananarivo and Cairo.

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First Published: Fri, October 06 2017. 17:15 IST