AIIB approves USD 500-million loan for Mumbai Urban Transport Project-3 project

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Mumbai: Asian Infrastructure Investment Bank (AIIB) on Friday announced a USD 500-million loan to help build rail and road infrastructure in the megapolis. With this, the developmental bank’s overall commitment to the country has gone up to nearly USD 3 billion, making it the largest borrower with a 30% share.

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  • India is the second largest shareholder after China, and has already committed USD 2.9 billion in capital already.
  • The USD 500-million loan for the Mumbai Urban Transport Project-3 (MUTP-3) will be for 35 years and local authorities will pay 1.40% over the Libor as interest.
  • The loan will be used to quadruple the 64-km Virar-Dahanu road corridor, a new 28-km suburban rail corridor between Panvel and Karjat, and to build 36 bridges/walls around the city’s rail lines to reduce deaths.
  • Over 50% of the land acquisition for these projects are already complete and the same will be implemented once it touches 90%, said Mr. DJ Pandian, vice-president and chief investment officer, AIIB said.
  • Apart from the MUTP, the bank is also looking at funding some of the metro projects underway in the city.
  • The bank is looking to pump USD 1 billion into Assam alone and is studying a USD 400-million proposal for an electricity transmission project.
  • The government has approached AIIB and other bodies like it including the World Bank and the Asian Development Bank seeking funds for setting up electric vehicle charging infrastructure, Mr. Pandian said.

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