AIIB to Lend $500 million for Delhi – Meerut RRTS Project

Per the updated website of the Asian Infrastructure Investment Bank (AIIB), the bank on March 24 approved a loan concept to lend USD 500 million (approx. Rs. 3785 crores) to the National Capital Region Transport Corporation (NCRTC) for funding the civil work & part-system procurement for the under construction 82.15 km Delhi – Meerut Regional Rapid Transit System (RRTS) line.

This figure represents 12.66% of the project’s total estimated cost of USD 3947.70 million (approx Rs. 29,875.67 crores) and the Asian Development Bank (ADB) will pitch in USD 1,549 million (39.24%) to co-finance the line’s civil work and system components such as Signaling and Telecommunication, Electrical works, and Traction.

Check out the linked summary sheet for in-depth information.

Link to Delhi – Meerut RRTS Project Summary Information Sheet

•  Status of Financing: Under Preparation

• Project Description: The proposed Project will connect Modipuram in Meerut to Sarai Kale Khan in Delhi through constructing an 82-km railbased rapid transit system, with a design speed of 180 km per hour (km/ h) and an average speed of 100 km/h.

The Project components to be jointly cofinanced with Asian Development Bank (ADB) and Japan Fund for Poverty Reduction (JFPR) are:

• Component A: Civil works (underground tunneling and stations, elevated viaduct and stations, and two depots)
• Component B: Signaling and Telecommunication, Electrical works, and Traction
  
  Other Project components to be financed by the Government of India, Government of Uttar Pradesh, and Government of Delhi (Governments) are detailed design consultants, General Consultant, and two elevated civil works packages. Further, rolling stock is also proposed to be financed by the Governments.

• Total Project Cost: USD 3947.70 million

Financing Plan:
• AIIB: USD 500 million (12.66%)
• ADB: USD 1,549 million (39.24%)
• JFPR: USD 3 million (0.07%)
• Govts. of India, Delhi & UP: 1,897.7 million (48.05%)

Key Dates
• Date of Concept Decision: March 24, 2020
• Estimated Date of Appraisal Decision: June 2020
• Estimated Date of Financing Approval: September 2020
• Estimated date of loan closing (SBF): December 2027

AIIB’s loan concept approval on March 24 resulted in the NCRTC inviting bids for the line’s ETCS Level-2 signalling and train-control system in April. If that’s anything to go by then bids for the other systems (telecom, electrical, traction) will also be invited shortly.

Prior to this development, AIIB in June 2019 signed an agreement with BMRCL 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 the Delhi – Meerut RRTS line, 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 236 million (Rs. 1786.52 crore) for Mumbai Metro’s 24.90 km Line-5 (Orange Line).

For more updates, check out the NCR RRTS section of The Metro Rail Guy!

– TMRG