EIB loans EUR 500m for Bangalore Metro

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EIB Bangalore Loan

INDIA: The European Investment Bank (EIB) will provide EUR 500 million to support the construction of a new 18 station Rapid Transit line in Bangalore and the purchase of 96 train cars for use on the line.

This support for investment to expand the second longest urban metro system in the country is the largest ever EIB loan in India and also the largest ever support for sustainable transport outside Europe.

The new line will cut travel times for some journeys from 2 hours today to 15 minutes.

The Asian Infrastructure Investment Bank is expected support the project in the first ever joint financing between the EIB and AIIB.

“Daily travel for hundreds of thousands people on the Namma Metro will be transformed by expanding urban transport in Bangalore. 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 demonstrates Europe’s commitment to support world class climate related investment across Asia and the increased momentum of EIB financing for urban transport across India. This new loan follows backing for the impressive Lucknow Metro last year.” said Andrew McDowell, European Investment Bank Vice President responsible for South Asia.

Once operational in 2021 the new 22km Reach 6 metro line will transform transport in the southern Indian city. Reach 6 is a key part of the second phase of the Bangalore Metro and a key component of the future rail link to Bangalore Airport. More than 800 people are expected to be employed during construction.

The Bangalore Metro is the first infrastructure project to be jointly financed by the European Investment Bank and the Asian Infrastructure Investment Bank. It is the EIB’s second sovereign loan with the Republic of India.

As well as providing EUR 450 million for construction of the new Lucknow Metro, In recent years the EIB has supported investment in urban transport across Asia in Hanoi, Vientiane and Bangladesh.