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EIB lends Rs. 3650 crore to Bengaluru Metro Phase II

BY Realty Plus

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The European Investment Bank (EIB) has granted a loan of Rs. 3,650 crore (500 million Euros) to the Phase II of Bangaluru Metro. EIB is the second international lender to fund the 72 km project and thus became the leading financer for Phase II. The deal was approved on July 14 with a repayment period of 20 years. French funding agency Agence Française De Dévelopment (AFD) had extended a Rs. 1,500 crore loan in 2015.

Bangalore Metro Rail Corporation Ltd (BMRCL) is expected to use this money for the construction of the 23-km Gottigere - Nagawara line, which consists of 12 underground and six elevated stations.

The total cost of Phase II is an estimated Rs 26,404 crore. Of this, the Center and the State are granting Rs 5,281 crore and Rs 8,983 crore respectively. BMRCL has to raise Rs 12,140 crore in the form of debt.

Three foreign lending institutions have backed Phase II. Other than AFD and EIB, BMRCL is also in the final stages of discussion with the Asian Infrastructure Investment Bank (AIIB).

For Phase I of the project, BMRCL availed loans from Japan International Cooperation Agency (Rs 3,700 crore), Asian Development Bank (Rs 1,600 crore), Housing and Urban Development Corporation (Rs 700 crore) and France's AFD (Rs 810 crore).

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