EIB to Provide €450m for India’s Lucknow Metro Project

The European Investment Bank (EIB) has agreed to provide a loan of Rs33bn (€450m) to finance construction of the first metro line in the Indian city of Lucknow in Uttar Pradesh.

EIB to Provide €450m for India’s Lucknow Metro Project
April 3, 2016 10:47 am

The agreement, which represents the EIB’s largest ever loan to India, was signed at the 13th European Union – India summit in Brussels in the presence of Indian prime minister Narendra Modi and EIB president Werner Hoyer.

Currently, the first tranche of €200m, part of the long-term EIB loan, was signed for the Lucknow Metro.

Hoyer said: “Today’s agreement represents the largest commitment of the European Investment Bank in India and the most significant support for sustainable transport investment outside Europe.

“The first metro line in Lucknow is a flagship project not only for Uttar Pradesh and India, but also for the EU Bank’s strengthened global commitment to support transformational investment.”

The loan will be used for construction of the 23km-long new metro line and procurement of a fleet of new metro trains.

Once operational, the new metro is expected to increase the use of public transport from 10% to an estimated 27% in the city of three million people.

The line, which is expected to have 22 stations, 19 of which will be elevated with three underground stations, will have a maximum design speed of 80km/h and a commercial speed of 34km/h.

It is expected the initial 8.4km phase of the line will open next year with the daily ridership forecast to reach 645,000 by 2020.

The EIB also decided to open a new Regional Representation for South Asia in New Delhi later this year in order to improve co-operation with the government, financial partners and project promoters.

Hoyer added: “The European Investment Bank has supported long-term investment across India for more than 20 years that has helped to harness renewable energy, strengthened industry and reduced carbon emissions.

“The opening of a regional office of the EU Bank in the sub-continent will ensure closer ties with public and private partners across the country, where our financial strength and technical expertise can benefit crucial long-term investment in India.”

Railwaynews.net is a railway information and news platform. Website presents from all around the world railway sector news, developments, projects and tender for the sector specialists. Railwaynews supports to industry events and announced them for potential participants. Railwaynews plans to collecting data from all around the world, about railway infrastructure, rolling stock, railway transportation datum, geographical datum to present for railway professionals for short term. Railwaynews will build new platforms aims to high value railway business environment for all railway specialists, railway fans and especially railway suppliers and their decision makers. Railwaynews presents whole information from rail professionals to rail professionals.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

No comments yet, be the first filling the form below.