The European Investment Bank (EIB) has sanctioned €500m loan to support the construction of a new 18 station Rapid Transit line in Bangalore and the purchase of 96 train cars for use on the line.
The fund, which will be invested by Bangalore Metro Rail Corporation to improve city transport, is the largest ever support for sustainable transport outside Europe by EIB.
Once the Reach 6 metro line is completed in 2021, it will reduce travel times for some journeys from two hours currently to 15 minutes. It will also reduce green-house gas emissions.
Reach 6 is an important part of the second phase of the Bangalore Metro and a key component of the future rail link to Bangalore Airport. During construction, the project is expected to create over 800 jobs.
Andrew McDowell, vice president responsible for South Asia at EIB, said: “Daily travel for hundreds of thousands people on the Namma Metro will be transformed by expanding urban transport in Bangalore.
“The impressive Reach 6 project shows how a world city is providing 21st century sustainable transport for its citizens. The €500m 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.
“This new loan follows backing for the impressive Lucknow Metro announced with Prime Minister Modi last year and stronger engagement here in India through our New Delhi office opened last March.”
The Bangalore Metro is the first infrastructure project, which has been jointly financed by the EIB and the Asian Infrastructure Investment Bank.