The Asian Infrastructure Investment Bank (AIIB) has agreed to provide a $335m loan for an electric metro project in Bangalore, a city in the Indian state of Karnataka.
The latest investment in support of the Bangalore Metro Rail Project—Reach 6 (R6) also represents AIIB’s first joint financing partnership with the development’s lead financier, the European Investment Bank (EIB), which has contributed a total of $587m in funding for the project to date.
R6 aims to provide high-capacity north-south connectivity through the centre of Bangalore by expanding the city’s metro system, while also reducing traffic congestion.
It is also set to provide an eco-friendly transportation alternative for the city’s commuters.
AIIB vice-president and chief investment officer Pandian said: “We’re investing in this metro project because of its potential to greatly improve the mobility of commuters and further economic growth through better connectivity.
“The project’s impact on the reduction of fuel consumption and traffic congestion will also help reduce local air pollution and noise, and make Bangalore a more liveable city.”
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R6 is a key section of Phase II of the wider Bangalore Metro Rail Project and is expected to offer future connectivity to the city’s airport.
The project is being implemented by Bangalore Metro Rail.
The entirety of the completed R6 line will be electrified and travel times for some journeys through the route are expected to drop to 15 minutes from the current duration of more than two hours.
AIIB and EIB originally entered a memorandum of understanding (MoU) in May last year to form a framework of cooperation to conduct regular dialogues, as well as jointly finance various infrastructure projects.
The Bangalore Metro Rail Project—R6 is the first project to be developed under the framework arrangement.