Bengaluru, Metro Rail News: The Bangalore Metro Rail Corporation Limited (BMRCL) signed a project agreement with the European Investment Bank (EIB) for 200 million Euros (approximately Rs 1,700 crore) for Phase-2 of the Namma Metro project.
The agreement was signed by BMRCL MD Ajay Seth and Maria Shaw Barragan, the director of Global Partners Department, EIB, on Friday, in the presence of Chief Minister HD Kumaraswamy, Deputy CM and Bengaluru Development Minister G Parameshwara and other senior officers. At the signing of the agreement between the Karnataka government and the EIB, deputy chief minister G Parameshwara thanked the Bank for funding Rs 1,540 crore (200 million Euros) for funding the Bangalore Metro Rail Corporation Limited for its Phase-2 Reach-6 project from Nagawara to Gottigere in the city.
The CM thanked EIB for offering loans at a low interest rate with no conditions for the Metro project. “This is a positive development in the interest of developmental projects in the city and we look forward for assistance from the EIB in the future as well. The Metro project is being developed to control pollution due to increasing number of vehicles in Bengaluru, which has a population of over 11 million.”
“While thanking EIB of this, I would like to reiterate our chief minister’s request that EIB may consider funding other infrastructure and sustainability projects in the state,” Parameshwara told the delegation.
The EIB had agreed to lend Euro 500 million in two tranches to BMRCL for funding part of project cost for Reach 8 (Gottigere to Nagawara) Line, Phase-2. Asian Infrastructure Investment Bank (AIIB) will co-finance it along with EIB for Euro 300 million. Thus, the total loan amount will be Euro 800 million for Reach-8.
The sovereign loan agreement for the first tranche of Euro 300 million was signed between Government of India and EIB in October 2017. The loan agreement for the second tranche of Euro 200 million was signed in September 2018. These loans are untied and have a 20-year tenure, which includes 4 years’ moratorium for principal repayment. In all, 800 million Euro funding has come for the project, he said.
Maria Shaw Barragan of EIB and others were present besides Karnataka government officials, an official release said.