AIIB okays $356m loan for India metro project

The Asian Infrastructure Investment Bank (AIIB) issued an official approval on Tuesday for the release of a loan to the tune of US$356.67-million to support the Government of India’s plans to expand its metro rail network in the southern Indian city of Chennai. 

As part of the project, the government has planned to construct a new corridor which is part of a larger plan for Chennai Metro Rail Phase 2.

D.J. Pandian, AIIB’s vice president for investment operations, chaired the virtual event held on Tuesday to commemorate the signing of the agreement. During his statement, he said: “the new Corridor-4 of Chennai Metro is around 25 kilometers in length, of which we are financing the first 16 kilometers.”

He also explained that the project aligns perfectly with AIIB’s plan to finance high-quality and sustainable infrastructure. He sees the dedication of the government to improving and bettering the integration of the city’s transport sector as a potential catalyst for economic advancement. 

The project is designed to feature will have environmentally friendly applications as part of efforts to cut down its carbon footprint. This includes solar panels installed on the roofs of the elevated stations and dedicated spaces for bicycles and green vehicles.