AIIB to provide $335m loan to develop Reach 6 of Bangalore Metro. Credit: Pbhattiprolu.

Asian Infrastructure Investment Bank (AIIB) has agreed to lend $335m for the second phase of the Bangalore Metro project in Karnataka, India.

A project funding agreement has been signed between AIIB and Bangalore Metro Rail (BMRCL), the operator of the project.

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According to local media sources, the loan amount will fund the construction of track between Gottigere and Nagawara.

The European Investment Bank (EIB) has already agreed to provide €500m for the stretch in two payouts.

With the latest financing from AIIB, the total amount increases to around €800m.

Overall, BMRCL needs to raise Rs121.41bn ($1.75bn) for the second phase of the Bangalore Metro. The company has already secured Rs73bn ($1.05bn) and expects to raise the remaining amount soon.

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Phase II of the metro system was approved by the central government in 2012. The overall project involves extending the Phase I corridors and two new lines.

It will bolster the network by adding 72.095km, of which 13.79km is underground, 0.48km at ground level, and 57.825km elevated.

Once complete, it will add 61 stations to the network, including 12 underground stops.

In October, BMRCL revised the cost estimate for Phase II from Rs264.05bn to Rs320bn due to delays.

In February, French company Alstom secured a €71m contract to deliver power supply and traction electrification works for the Bangalore Metro.

The contract requires the company to provide engineering, installation, testing and commissioning of 750V DC third-rail traction electrification for a 33km metro extension.