ADB approves $240 million loan for Chennai metro expansion in India

New Delhi [India], December 14 (ANI): The Asian Development Bank (ADB) has approved a USD 240 million loan--the second tranche of the Chennai Metro Rail Investment Project--to support the expansion of the metro rail network and provide cleaner, safer, and more reliable urban transport across the Chennai Metropolitan Area, India.
This tranche is part of ADB's USD 780 million multitranche financing facility for the project, approved in 2022, and follows the initial USD 350 million loan under the first tranche, a release by the ADB added.
The new financing will support key sections of metro lines 3, 4, and 5, covering 20 kilometers of elevated and underground corridors and 18 new stations with universal access features and disaster-resilient infrastructure to keep passengers and services safe during extreme weather events.
"This project will deliver safer, faster, and more reliable daily travel in Chennai while advancing the city's low-carbon development goals," said ADB Country Director for India Mio Oka. "We look forward to continued collaboration to expand metro connectivity and further enhance the capacity of Chennai's metro and suburban rail systems to meet the city's growing mobility needs."
Under tranche 2, ADB will fund civil and system works for metro line 3's elevated section (Sholinganallur-SIPCOT-2), line 4's underground section (Lighthouse-Kodambakkam), and key system components for line 5, including power, traction, and telecommunications. The tranche will also support upgrades to multimodal interchange areas to ensure smoother transfers between metro, buses, bicycles, and other last-mile transport options.
Beyond infrastructure, the project will enhance inclusive station features, improve travel safety for women and vulnerable users, and support measures to boost non-fare revenues for the long-term financial sustainability of the metro rail system.
Construction under this tranche is targeted for completion by mid-2028.
ADB is a leading multilateral development bank supporting inclusive, resilient, and sustainable growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members--50 from the region. (ANI)