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AIIB to finance Karachi BRT Red Line, Pakistan [free access]

November 23, 2019

The Asian Infrastructure Investment Bank (AIIB) has announced plans to provide a USD71.81 million loan to finance the civil works and operations (including procurement of rolling stock and installation of the fare collection system) of the Karachi bus rapid transit (BRT) system’s Red Line. The loan carries AIIB’s standard interest rate for sovereign-backed variable spread loans and has a maturity of 24 years, including a grace period of five years.

 

The Karachi BRT Red Line will span 26.6 km and cover 24 bus stops. The project is being implemented by the provincial government of Sindh, Sindh Mass Transit Authority (SMTA), and TransKarachi at an estimated investment of USD503.33 million. It is being jointly financed by AIIB, the Asian Development Bank (ADB), Agence Française de Développement (AFD), the Green Climate Fund (GCF), and the Sindh government. Passenger services are expected to commence by 2022.