BMRCL inks deal with AIIB to fund metro Phase 2 project

BMRCL on Thursday signed an agreement with Asian Infrastructure Investment Bank (AIIB) for $335 million (about Rs 2300 crore) for projects under Namma Metro Phase 2 project.

In a release, Bangalore Metro Rail Corporation Limited (BMRCL) said the funds will be part of the loan being raised for the Gottigere-Nagavara metro line (Reach 6).

"The European Investment Bank (EIB) has agreed to lend Euro 500 million (about Rs 3,900 crore) in two tranches for funding part of Reach 6.

The AIIB has agreed to cofinance with EIB. Thus, the total loan amount will be equivalent of Euro 800 million (about Rs 6400 crore) for Reach 6," BMRCL Chief Public Relations officer Yashvanth Chavan said.

He said BMRCL needs to raise Rs 12,141 crore for Phase 2 projects as part of senior debt, including sovereign loan. "About 46% of the total project cost will be met through loan. BMRCL has secured Rs 7,300 crore and the remaining funds will have to be secured in the coming days," he said.

Besides the loan agreement, a project agreement was signed on June 4, giving boost to the work on the 13 km underground stretch for which tenders were awarded recently.

In October 2018, BMRCL revised the cost of Phase 2 from Rs 26,405 crore to Rs 32,000 crore.

Delay in the projects has necessitated the upward revision of the project cost, which is likely to increase in the coming days.