Centre signs Rs 2,290-cr pact with EIB for Metro

The Centre on Friday signed 300 million Euros (Rs 2,290 crore approximately) contract with European Investment Bank (EIB) for Bangalore Metro Rail Project Phase - II.

The phase two of the Namma Metro is being jointly financed by EIB and Asian Infrastructure Investment Bank. The EIB is the lead financier, which is expected to lend 500 million Euros in total.

The Finance Ministry said this was the first tranche of EIBs loan agreement that was signed on Friday.

“Bangalore Metro Rail Project Phase II is to be jointly financed by the European Investment Bank (€500 million) and Asian Infrastructure Investment Bank (€300 million). The first tranche of Euro 300 mn was signed today. The project envisages extension of East-West and North-South lines for Bangalore Metro Rail, which includes a total length of 72.095 km (13.79 km underground) and 61 stations with 12 underground stations,” the ministry said.

The project implementation period is five years from the date of commencement of the project.

The objective of the project is to bring in a quantum improvement in the transportation sector in the city in tandem with the Bangalore Metropolitan Transport Corporation (BMTC) and other modes of urban transport, the ministry said.

“The project aims to ensure modern transport facility for commuters. The spin offs of the project would include employment opportunities, benefits to the economy, reduction of number of vehicles on road, less fuel consumption, reduction in air pollution, reduction in passenger travel time and also improvement in the aesthetic value of the city,” it said.