The potential sources of the remaining funds required to build the Rs. 26,405 crore Bangalore Metro Phase 2 project are now known. Yesterday, the BMRCL’s MD Pradeep Singh Kharola revealed they’re in talks with the European Investment Bank (EIB) and Asian Infrastructure Investment Bank (AIIB), and have received an ‘in-principle’ commitment for lending roughly Rs. 3600 crores each towards the BMRCL’s Phase 2 loan requirement of roughly Rs. 12000 crores.
This is something the BMRCL has struggled with obtaining since the project’s final approval in January 2014, and has led to severe delays in the tendering stage even before the start of construction for a bulk of its new network.
No further details or loan parameters (rate, term period) have been given out, but it is expected that the proceeds from these two loans will be utilized for constructing the new 21.25 km Gottigere – Nagawara line (Reach 6) of which a 13.79 km section, from Dairy Circle to Nagawara, will be built underground. Besides that, the funds are expected to be used for procuring important technical systems for both new lines (the other one is the 18.80 km RV Road – Bommasandra line) such as rolling stock, SCADA & CBTC signalling system, telecommunication system, electrification system, automatic fare collection system (AFC), elevators & escalators and possibly platform screen doors (PSDs).
Phase 1 (42.30 km) | Phase 2 (72.10 km)
So far, the BMRCL has inked only one loan deal with France’s Agence Francaise De Développement (AFD) for Rs. 1500 crore (€200 mn), and has reached an agreement with Germany’s Kreditanstalt für Wiederaufbau (KfW) for another roughly Rs. 3500 crore deal which is expected to be signed into an agreement by the Union Finance Ministry this year. The proceeds from KfW loan’s will be utilized towards the construction of the 15.257 km Baiyappanahalli – Whitefield extension of the Purple Line and the 18.80 km RV Road – Bommasandra line (Reach 5) for which the BMRCL received permission from the KfW to invite bids in December 2016.
Whenever the BMRCL invites bids for the Gottigere – Nagawara line (Reach 6) and any technical system of Phase 2, that’ll be a good sign of the BMRCL concluding its new loan deals to finally achieve financial closure of the project.
For more updates, check out the Bangalore section of The Metro Rail Guy!