AIIB to extend $356 mn loan for Chennai Metro Rail expansion

Phase-2 of the project will ensure seamless multimodal transport across Chennai, with integrated access to suburban rail, bus stations and the main airport

The Asian Infrastructure Investment Bank (AIIB) has approved a $356.67-million loan for the expansion of the Chennai metro rail system.

Phase-2 of the Chennai Metro Rail will span the area from the Lighthouse in the east to Poonamalee Bypass in the west. This will ensure seamless multimodal transport across Chennai, by providing integrated access to suburban rail, bus stations and the city’s main airport, the Beijing-based multilateral funding agency said in a statement.

AIIB has approved 28 projects amounting to $6.7 billion in India, with the energy and transport sectors having received the lion's share of the institution's financing.

This project is aligned with AIIB’s mandate to support high-quality and sustainable infrastructure. The improvement and integration of the transport sector in Chennai will further promote trade and economic growth, said D J Pandian, Vice President, Investment Operations, AIIB. The project will be implemented by the Chennai Metro Rail Limited.

The project’s design and construction will have environmentally friendly features to help reduce its carbon footprint. In addition to solar panels installed on the roofs of the elevated stations, the project will have dedicated spaces for bicycles and green vehicles. The project also integrates climate change resilience features to reduce its vulnerability to climate-related events.