AIIB to Lend $236 million for Mumbai Metro Line-5 (Thane – Kalyan)

Per the updated website of the Asian Infrastructure Investment Bank (AIIB), the bank on April 21 approved a concept loan to lend USD 236 million (approx. Rs. 1786.52 crores) to the Mumbai Metropolitan Region Development Authority (MMRDA) for procuring systems for Mumbai Metro’s 24.90 km Line-5 (Orange Line) which will connect Thane – Bhiwandi – Kalyan.

AIIB’s funds will go directly towards the procurement of rolling stock, signaling & train-control, telecommunications, automatic fare collection (AFC), traction and power supply, and depot machinery and plant (m&p).

AIIB estimates the project will be approved for financing in Q4 2020, with the final tranche for achieving financial closure getting released in June 2023.

Link to Project Summary Information Sheet

•  Status of Financing: Under Preparation

• Project Description: The Project will comprise the provision of rolling stock and systems, including signaling, telecommunications, automatic fare collection, traction and power supply, and depot machinery and plant for a separate project under implementation by the Mumbai Metropolitan Region Development Authority (MMRDA) that covers the construction of a 24.7 km, 17-station, elevated Mumbai Metro Line 5 (MML5)

• Total Project Cost: USD436 million

Financing Plan:
• AIIB: USD 236 million (54%)
• OFID: USD 100 million (23%)
• MMRDA: USD 100 million (23%)

Key Dates
• Date of Concept Decision: April 21, 2020
• Estimated Date of Appraisal Decision: August 2020
• Estimated Date of Financing Approval: Q4 2020
• Estimated date of loan closing (SBF): June 2023

Mumbai’s elevated Line-5 with 17 stations was approved by the Maharashtra government’s cabinet on 24 October 2017 with a cost of Rs 8,416 crore. Its foundation stone was laid by India’s Prime Minister on December 19, 2018.

The line’s 12.811 km western section (Kapurbawadi in Thane – Dhamankar Naka in Bhiwandi) is under construction by Afcons Infrastructure, but its eastern section’s route towards Kalyan still hasn’t been finalized yet due to opposition from local residents and shopkeepers opposing the acquisition of their properties, and the shifting of Prabhakar Oak Clock Tower and a statue of Chhatrapati Shivaji Maharaj.

Prior to this development, AIIB in June 2019 signed an agreement to lend USD 335 million (approx. Rs. 2535 crore) for Bangalore Metro’s Reach-6 (Line-4 / Pink Line) of the 73.9 km Phase 2 project.

Besides Mumbai Metro’s Line-5, AIIB plans to lend USD 795.40 million (approx. Rs. 6020 crore) for Line-4 and Line-5 of Chennai Metro’s 118.9 km Phase 2 project, and USD 500 million (Rs. 3785 crore) for the 82 km Delhi – Meerut RRTS Line.

For more updates, check out the Mumbai section of the Metro Rail Guy!

– TMRG