Bengaluru: The state government has signed an MoU with European Investment Bank (EIB) to fund Rs 1,540 crore (200 million euros) for phase-2 Metro project.
EIB has agreed to lend 500 million euros (Rs 3,800 crore) in two tranches to BMRCL to implement Metro reach 6 of phase 2 project, from Gottigere to Nagawara.
Chief Minister H.D. Kumaraswamy and Deputy CM Dr G. Parameshwar, who is also Bengaluru Development minister, signed the MoU with EIB officials here on Friday. EIB Director Maria Shaw Barragam was present on behalf of the bank.
EIB in October 2017 signed a loan agreement for first tranche of 300 million euros, and on Sept. 29, 2018, signed for second tranche of 200 million euros. The bank has given loans for 20 years, which includes four years moratorium on principal repayment.
However, the project agreement for Rs 1,540 crore was signed on Friday. After signing the MoU, Mr Kumaraswamy said that the bank has come forward to lend without any preconditions for the Metro project with low rate of interest. With this agreement, the phase two Metro construction will be on fast track, the Chief Minister said.
Mr Parameshwar said that EIB has come forward after considering the stability of the state government and good governance. The bank has also expressed interest to fund other infrastructure projects in the state, he added.
EIB Director Barragam expressed satisfaction over the implementation of Metro project in the city and said the bank is interested to work with Karnataka government in other projects.