AIIB to Lend $795.4 million for Chennai Metro Phase 2 Project

Per the updated website of the Asian Infrastructure Investment Bank (AIIB), the bank on April 7 approved a loan concept to lend USD $438.75 million (approx. Rs. 3316 crores) to Chennai Metro Rail Ltd. (CMRL) for the civil construction of Chennai Metro’s 47 km Line-5’s 26 km section connecting CMBT with Sholinganallur.

The proceeds of this loan will go towards the civil construction of 26 km of elevated viaduct, 24 elevated stations and utility management. The project system’s will be co-financed by the Asian Development Bank (ADB) and Government of Tamil Nadu.

This is the second loan being sought by CMRL from AIIB for the 118.9 km Chennai Metro Phase 2 project. Prior to this, on December 13, 2019 – AIIB approved a concept proposal to lend USD 356.65 million (approx. Rs. 2700 crore) to finance the 26.1 km Line-4 connecting Lighthouse – Poonamallee Bypass.

The proceeds of that loan will go towards the construction of 16 km of elevated viaduct, 18 elevated stations and 8 underground stations. The rest of the line’s construction will be financed by the Government of Tamil Nadu and an unassigned co-financer.

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

Link to Line-4’s Project Summary Information Sheet

  Status of Financing: Under Preparation

 Project Description: The Project components to be financed by AIIB under the proposed Project (AIIB Components) are:

  • Component A: Construction of 16 km of elevated viaduct
  • Component B: Construction of 18 elevated stations
  • Component C: Construction of 7 underground stations
  • Component D: Implementation support and technical assistance

 Project Cost: USD 2174.53 million

Financing Plan:
AIIB: USD 356.65 million (16%)
Unassigned Co-Financer: USD 1165.52 million (53.6%)
Govt. of TN: USD 652.36 million (30.4%)

Key Dates
• Date of Concept Decision: December 13, 2019
• Estimated Date of Appraisal Decision: September 2020
• Estimated Date of Financing Approval: December 2020
• Estimated date of loan closing (SBF): August 2027

Link to Line-5’s Project Summary Information Sheet

  Status of Financing: Under Preparation

 Project Description: The Project consists of construction of 26 km of elevated viaduct and 24 elevated stations and provision of related equipment and related facilities, for the balance corridor 5 portion of the north-south mass transit system in Chennai.

Other components of this project include:

  • Traction and power supply, track work, and telecommunication, electrical and mechanical works, which would be financed by Asian Development Bank (ADB); and
  • Signaling, lift and escalators, permanent way, platform screen doors, physical security instruments, land acquisition, resettlement and rehabilitation and environmental related costs, which would be financed from counterpart funds by the Government of Tamil Nadu (GoTN).

 Project Cost: USD 708.64 million

Financing Plan:
AIIB: USD 438.75 million (62%)
ADB: USD 114.1 million (16%)
Govt. of TN: USD 155.88 million (22%)

Key Dates
• Date of Concept Decision: April 7, 2020
• Estimated Date of Appraisal Decision: September 2020
• Estimated Date of Financing Approval: December 2020
• Estimated date of loan closing (SBF): June 2026

AIIB’s logo (copyright AIIB) and route of Chennai’s Line-4 (Lighthouse – Poonamallee Bypass) and Line-5’s (CMBT – Sholinganallur) section – view Chennai Metro Phase 2 info & route map

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 Chennai’s Line-4 and Line-5, AIIB plans to lend USD 236 million (approx. Rs. 1786.52 crores) for Mumbai Metro’s 24.90 km Line-5 (Orange Line) and USD 500 million (Rs. 3785 crore) for the 82 km Delhi – Meerut RRTS Line.

The rest of Chennai Metro’s Line-5 (Madhavaram – CMBT) and Line-3 (Madhavaram – Sholinganallur) with a route length of 52.01 km termed as ‘priority corridors’ will be financed by Japan International Cooperation Agency (JICA). Tenders/bids for the construction of Line-3’s tunneling works were invited in January 2020. The last date to submit bids was recently extended to July 8 due to the ongoing COVID-19 related disruptions.

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

– TMRG

written by

Global traveler who prefers mass rapid transit

2 Responses to "AIIB to Lend $795.4 million for Chennai Metro Phase 2 Project"

  1. Aravind says:

    I feel this line is totally ill planned. That parallel section with Line 4 has no logic. Also I think phase 2 has 116 stations for 108 kms. That is too much I think. TMRG, pls let us know your comments

    Reply
    • Srinivasan says:

      Brother they should have planned it as Avadi – Sholinganallur ( Avadi – Ambattur – madurayoval – Porur – dlf manapakkam – kathipara – mount Medavakkam road – Sholinganallur )

      Reply

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