For Phase 2 of Bangalore’s Metro project, France’s Agence Francaise De Développement (AFD) has accepted the Bangalore Metro Rail Corp’s offer to provide a Rs 2000 crore Rs. 1500 crore (€200 mn) loan at a low interest! Like JICA from Japan, the AFD is France’s main implementing agency for official development assistance to other countries. The AFD was approached earlier this year through the GOI’s Department of Economic Affairs to facilitate the process to obtain the loan.
As per Pradeep Singh Kharola, the MD of the Bangalore Metro:
BMRCL is in the final stages of completing formalities related to it and the loan could be sanctioned shortly. The repayment deadline is 15 years. The interest rate has been linked to Euribor (Euro Interbank Offered Rate)
With work on the Purple line’s extension from Mysore Road to Kengri beginning in October by ILFS Enginering (See: Work on Bangalore Metro’s Mysore Road – Kengri Extn To Start Soon) , this loan will be put to immediate use. Phase 2 includes a total of 4 extensions of the existing lines and 2 completely new lines:
Purple Line – Mysore Road – Kengeri – 6.47 km
Purple Line – Baiyyappanahalli – Whitefield – 15.50 km
Green Line – Puttenahalli – Anjanapura – 6. 29 km
Green Line – Hesaraghatta cross – BIEC – 3.77 km
R V Road – Bommasandra – 18.80 km
Gottigere – Nagavara – 21.25 km
Back in 2013, the BMRCL had signed a contract with the AFD to provide a long term loan of 787 crores (110 million euros) to assist with constructing Phase 1, so its good to see the AFD reaffirming their faith in this project!
For more updates on the Bangalore Metro, check out the Bangalore section of The Metro Rail Guy!
Update: The loan agreement will be signed on Friday – September 18.