AIIB Considers Funding Andhra Pradesh Metro's Phase-I

The Asian Infrastructure Investment Bank (AIIB) has expressed interest in financing Phase-I of the metro rail projects in Visakhapatnam and Vijayawada. As part of their due diligence, AIIB representatives recently met with officials from the Andhra Pradesh Metro Rail Corporation (APMRCL), including Managing Director NP Rama Krishna Reddy, and conducted site inspections of key metro corridors in Vijayawada.

The combined funding requirement for both metro projects is estimated at ₹12,000 crore—₹6,100 crore for Visakhapatnam and ₹5,900 crore for Vijayawada. AIIB has proposed attractive loan terms, including a 35-year tenure with a 10-year moratorium followed by a 25-year repayment period. APMRCL is currently evaluating this offer as part of its broader strategy to secure funding from international financial institutions offering favorable terms.

In addition to AIIB, APMRCL is in discussions with several global lenders, including KFW Bank (Germany), AFD Bank (France), Japan International Cooperation Agency (JICA), Asian Development Bank (ADB), New Development Bank, and the World Bank. The objective is to secure low-interest, long-term financing to support the state’s urban transport infrastructure initiatives.

During their visit, AIIB officials Santosh and Paschal Russell inspected the Vijayawada metro corridors from PNBS to Gannavaram and from Penamaluru to PNBS. The delegation also engaged in detailed discussions with APMRCL to assess the financial framework for potential investment.

News by Rahul Yelligetti.