Foreign Banks Offer to Fund Vijayawada, Vizag Metro Rail Projects
These banks have shown interest in supporting Andhra Pradesh's urban transport infrastructure.
Vijayawada: In a significant development, several international financial institutions have expressed interest in funding the Vijayawada and Visakhapatnam metro rail projects, which are estimated to cost a total Rs 12,000 crore.
Andhra Pradesh Metro Rail Corporation Limited (APMRCL) has accelerated its efforts to secure low-interest loans for both these projects. APMRCL managing director Ramakrishna Reddy held discussions with representatives from the Asian Infrastructure Investment Bank (AIIB), including officials Santosh and Pascal Russel, at the corporation’s office in Vijayawada.
Prior to the meeting, the AIIB team conducted a field inspection of the proposed metro corridors in Vijayawada, including the 26 km stretch from Pandit Nehru Bus Station (PNBS) to Gannavaram and the 12 km corridor from PNBS to Penamaluru. Following the inspection, AIIB representatives expressed keen interest in offering financial support for the project.
According to initial estimates, the Visakhapatnam metro will require funding of around Rs 6,100 crore and Vijayawada metro approximately Rs 5,900 crore. APMRCL is currently in discussions with multiple foreign banks that offer low-interest and long-term financing, including KfW (Germany), AFD (France), AIIB (China), JICA (Japan), Asian Development Bank, New Development Bank and World Bank.
These banks have shown interest in supporting Andhra Pradesh's urban transport infrastructure.
The APMRCL MD maintained that further consultations will be held for getting the most favourable terms, both in terms of interest rates and project facilitation. He said foreign bank representatives are also expected to soon hold talks with the central and state governments to formalise the funding arrangements.
Ramakrishna Reddy disclosed that APMRCL has issued tender notifications for appointing general consultants for both the metro projects. The corporation aims to ensure that both metro systems are developed efficiently with international cooperation.
