ADB, India sign record $926 mn loan for two new Mumbai Metro lines
The single largest infrastructure project loan in ADB history has been approved by the ADB Board
The Asian Development Bank (ADB) and the Government of India have signed a $926 million loan to operationalise two lines for the Mumbai Metro Rail system that will ease the distress of millions of commuters each day and help provide a cleaner, less congested city.
“ADB financing will ease travel for millions of commuters across Mumbai, help decongest heavily-crowded suburban rail systems, and contribute to providing a modern, clean, and livable urban environment to its citizens.”
The single largest infrastructure project loan in ADB history was approved by the ADB Board on 26th February, and will help fund lines 2A (Dahisar to DN Nagar), 2B (DN Nagar – Bandra – Mandale), and 7 (Dahisar [East] to Andheri [East]), totaling about 58 kms. The project will fund 63 six-car trains, signalling and safety systems, and help establish a new dedicated metro operations organisation to manage the entire metro network in Mumbai. The Mumbai Metropolitan Region Development Authority (MMRDA) will implement the project.
Once operational by the end of 2022, an estimated 2 million passengers a day will use the two new lines, travelling in improved safety and comfort. It will also reduce emissions from vehicles, with carbon dioxide emissions expected to fall by about 166,000 tonnes a year.
“ADB financing will ease travel for millions of commuters across Mumbai, help decongest heavily-crowded suburban rail systems, and contribute to providing a modern, clean, and livable urban environment to its citizens,” said Kenichi Yokoyama, country director of ADB’s India Resident Mission, who signed the loan agreement for ADB.
“The new Mumbai Metro is an ambitious and truly transformative venture planned by the state government, which will contribute to enhance the efficiency of the urban transport network and productivity of India’s financial centre,” said Sameer Kumar Khare, additional secretary (Fund Bank and ADB), Department of Economic Affairs, Ministry of Finance, who signed the loan on behalf of the Government of India.
The project marks ADB’s first co-financing with the Shanghai-based New Development Bank, which will provide $260 million toward the metro systems project. The MMRDA will implement civil works and other related components for the lines 2A, 2B, and 7.