200-mn-euro Project Agreement between AFD & BMRCL
French Development Agency (AFD) signs 200-million-euro Project Agreement with Bangalore Metro Rail Corporation Ltd (BMRCL) for financing Phase II of Bangalore Metro and inaugurates the “60 SOLUTIONS against climate change” exhibition on metro premises.
Bengaluru, 18 September 2015
In the presence of Mr Siddaramaiah, Hon’ble Chief Minister of Karnataka, and Mr François Gautier, Consul General of France in Bangalore, the French Development Agency (AFD) and the Bangalore Metro Rail Corporation Limited (BMRCL) today signed a Project Agreement in Bengaluru to finance Phase II of the Bangalore Metro.
The agreement was signed between Mr Nicolas Fornage, AFD Regional Director for South Asia, and Mr Pradeep Singh Kharola, Managing Director of BMRCL.
The financing, which amounts to 200 million euros, has been earmarked for a Credit Facility Agreement between AFD and the Government of India, which was signed on September 3, 2015 in New Delhi.
After providing a loan of 110 million euros for Phase I of the Bangalore Metro in 2012, AFD’s new funding aims at partially financing Phase II of the metro. Other financial institutions – multilateral/ bilateral/ Indian - are also contributing to the funding of the project.
With this new funding, AFD has notched up 490 million euros in total contribution to the sustainable urban transport sector in India.
A metro to relieve congestion and reduce carbon emissions in Bengaluru.
Bengaluru, India’s third biggest city and hub of the new economy, has witnessed a major upsurge in its population over the last 20 years. With the number of vehicles on its streets growing daily, the city faces significant pollution and traffic congestion challenges, with adverse effects on urban mobility, economic dynamism and health, for which the metro services provide a suitable solution.
Phase I of the Bangalore Metro, started by the Bangalore Metro Rail Corporation Limited (BMRCL) in 2008, included the introduction of two lines (covering 42 Km with 40 stations), crisscrossing the city from North to South and East to West, and partially running since 2011. Phase II, which will cover a stretch of 72 Km, will undertake the extension of the two existing lines as well as the construction of two new lines. AFD’s financing of this new phase is allocated for the extension of the two existing lines.
The metro network will ease traffic congestion, reduce pollution and promote low-carbon mobility.
This new financing reiterates the resolve of the Governments of India and France to strengthen their cooperation on sustainable urban transport infrastructure, ahead of the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21), which will be held in Paris in December 2015.
Further to the signature of the Project Agreement for Phase II of the Bangalore Metro, the French Embassy in India, AFD and BMRCL today inaugurated the photo exhibition “60 SOLUTIONS against climate change” in the Vismaya Room of the Rangoli Metro Art Center.
While France is gearing up to host the COP21 in December, AFD and the GoodPlanet Foundation are using images to highlight innovative and effective solutions combining the fight against climate change and economic development. The exhibition comprises 21 photos by Yann Arthus-Bertrand, renowned photographer and Chairman of the GoodPlanet Foundation, from his famous “Earth from Above” series. It presents concrete initiatives in four sectors: cities, agriculture, energy transition and adaptation to climate change.
Among the initiatives presented in this exhibition, 15 are supported by AFD, illustrating the wide range of the Agency’s financing in all the countries where it operates.
The Bangalore Metro being one of the positive solutions supported by AFD to help combat climate change in India, the joint organization of the exhibition between AFD and BMRCL on the metro premises is a symbol of cooperation between these parties in the fight against climate change.
Agence Française de Développement (AFD), a public development finance institution that implements the policies defined by the French Government, works towards poverty alleviation and the promotion of sustainable development. AFD operates on four continents via a network of 71 agencies. It finances and supports projects that improve living conditions for populations, boost economic growth and protect the planet. In 2014, AFD committed EUR 8.1bn to finance projects in developing countries and for overseas France. Since 2005, AFD has committed EUR 18bn for projects that reconcile development and climate, including EUR 2.8bn in 2014 (i.e. 53% of its financing in developing and emerging countries). http://www.afd.fr
Please see BMRCL website: http://bmrc.co.in/