The Asian Infrastructure Investment Bank (AIIB) has expressed interest in financing Phase I of the metro rail projects in Visakhapatnam and Vijayawada.
Officials from AIIB recently met with Andhra Pradesh Metro Rail Corporation Ltd (APMRCL) Managing Director NP Rama Krishna Reddy and other senior representatives to discuss potential funding options. The team also conducted site inspections along key metro corridors in Vijayawada.
The total estimated cost for both projects is Rs 120 billion鈥擱s 61 billion for Visakhapatnam and Rs 59 billion for Vijayawada. AIIB has proposed attractive loan terms, offering a 35-year tenure with a 10-year moratorium and a 25-year repayment period, which are currently under evaluation by APMRCL.
The Corporation is actively engaging with multiple international financial institutions to secure cost-effective funding. These include Germany鈥檚 KFW Bank, France鈥檚 AFD Bank, Japan International Cooperation Agency (JICA), the Asian Development Bank (ADB), the New Development Bank, the World Bank, and AIIB.
The aim is to partner with financiers offering the most favourable interest rates to support the large-scale infrastructure development. During their visit, AIIB representatives Santosh and Paschal Russell reviewed key sections of the Vijayawada metro corridor鈥攆rom PNBS to Gannavaram and Penamaluru to PNBS鈥攁nd held discussions on the project鈥檚 financial structuring with APMRCL.
