Metro Rail News: The Asian Development Bank (ADB) has given the in-principle
indication for financing 4 metro rail projects and a Delhi-Meerut rapid rail corridor as part of its efforts to improve the urban transport system in India.
Hun Kim, ADB Director-General said on May 1, 2019, that Concurrent discussions are going on with other multilateral funding agencies for co-financing of these large urban transport projects including Bhopal and Indore Metro projects.
Other projects especially the expansion of Chennai and Bengaluru Metro are also under consideration, he added at the Annual Meet of ADB here.
“ADB has in-principle agreed to finance these projects with the Centre, which is the guarantor. It depends on the client. If they complete the formalities, we’re ready to go (for final approval from the board),” he said.
ADB has funded Jaipur Metro and expansion of Mumbai Metro in the past.
On talking about Delhi-Meerut RRTS, Kim said Regional Rapid Transport System (RRTS) is a huge project and ADB is looking to co-finance with other multi-lateral funding agencies including Asian Infrastructure Investment Bank.
Approval from Government
In March 2019, Union cabinet approved construction of a Delhi-Meerut RRTS Corridor worth Rs. 30,274 crore RRTS to connect the Capital city with Meerut through Ghaziabad (in Uttar Pradesh). The 82-km stretch will be covered in less than 60 minutes.
The RRTS is a first-of-its-kind rail-based, high-speed regional transit system to be implemented in India. Once operational, it will be the fastest, most comfortable and safest mode of commuter transport in the National Capital Region (NCR).
Kim highlighted that financing logistics projects will also be a priority for the bank. “We want to be a bank for logistics,” he said, pointing to the Vizag-Chennai and the Chennai-Kanyakumari industrial corridors where the ADB is involved in financing preparation of the master plan.
Tamil Nadu — a major client
Meanwhile, Tamil Nadu is emerging as a major “client” of the bank, he said, adding the bank is planning to lend $500 million each for energy projects and the Chennai Metro Phase II.