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AIIB to finance Mumbai Suburban Rail expansion, India [free access]

November 17, 2019

The Asian Infrastructure Investment Bank (AIIB) has announced plans to provide a USD500 million loan to the Government of India for the expansion of the suburban rail network in Mumbai under the Mumbai Urban Transport Project 3A (MUTP-3A) project. The loan carries AIIB’s standard interest rate for sovereign-backed variable spread loans and has a maturity of 30 years, including a grace period of five years. The funds will be used for the quadrupling of the Virar–Dahanu Road corridor, construction of a new corridor spanning 28 km, installation of control measures to reduce fatal accidents and trespassing at 36 priority sections, as well as providing services to strengthen the institutional capacity of Mumbai Railway Vikas Corporation (MRVC).

 

The works will help enhance the network capacity, reduce travel time, improve safety, and increase passenger satisfaction. It will be carried out at a total investment of USD997 million and will also be financed by India’s Ministry of Railways and the state government of Maharashtra. The works are expected to commence by December 2019 and are scheduled to be completed by November 2024. The Mumbai suburban network spans around 400 km and has an estimated average daily ridership of 7.5 million passengers.