By: JurmoloyaRava
In a recent press statement, the European Investment Bank (EIB) stated that they will provide EUR 500 million to support the construction of 18 new stations Rapid Transit line in Bengaluru and the purchase of 96 train cars for use on the line.
According to the press statement, “The new support for investment by the Bangalore Metro Rail Corporation to improve city transport is the largest ever support for sustainable transport outside Europe and will cut travel times for some journeys from 2 hours today to 15 minutes when the new line is complete.”
The loan agreement was formally exchanged by EIB vice president Andrew McDowell, and representatives of the Ministry of Finance of the Republic of India at the 14th India-European Union summit.
The formal exchange of contracts was attended by Prime Minister Narendra Modi, President of the European Council Donald Tusk, and President of the European Commission Jean-Claude Juncker, along with other senior political representatives from India and the European Union.
The Asian Infrastructure Investment Bank is expected to support the project in the first-ever joint financing between the EIB and Asian Infrastructure Investment Bank (AIIB).
Andrew McDowell said, “Daily travel for hundreds of thousands of people on the Metro will be transformed by expanding urban transport in Bangalore. The impressive Reach six projects show how a world city is providing 21st century sustainable transport for its citizens. The EUR 500 million financing agreed with the European Investment Bank, the Bank of the European Union, demonstrates Europe’s commitment to support world-class climate-related investment across Asia and the increased momentum of EIB financing for urban transport across India.”
Speaking at the summit, the EU Ambassador to India, H.E. Tomasz Kozlowski, said, “The loan for the Bangalore Metro will contribute greatly to a project that will reduce traffic congestion and pollution in a city that has seen explosive growth in recent years.”
Once operational in 2021, the new 22 kilometer reach-six metro line will transform the transport in the southern Indian city.
The Bangalore Metro is the first infrastructure project to be jointly financed by the European Investment Bank and the Asian Infrastructure Investment Bank. It is the EIB’s second sovereign loan with the Republic of India.
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