Vijayawada: In a major development, some international financial institutions expressed interest in funding the Vijayawada and Visakhapatnam metro projects, with total losses estimated to total Rs 1.2 crore.
Andhra Pradesh Metro Company Limited (APMRCL) accelerates efforts to obtain low-interest loans for both projects. APMRCL Managing Director Ramakrishna Reddy held a discussion with representatives from the Asian Infrastructure Investment Bank (AIIB), including officials Santosh and Pascal Russel, in Vijayawada’s corporate office.
Prior to the meeting, the AIIB team conducted a live inspection of Vijayawada’s proposed metro corridor, including 26 km from Pandit Nehru Bus Station (PNBS) to Gannavaram and 12 km from PNBS to Penamaluru. After the inspection, AIIB representatives expressed interest in providing financial support to the project.
According to initial estimates, Visakhapatnam Metro will require approximately Rs 61 billion and approximately Rs 59 billion of Vijayawada Metro. APMRCL is currently in discussions with several foreign banks that offer lower interests and long-term financing, including KFC (Germany), AFD (France), AIIB (China), JICA (Japan), Asian Development Bank, New Development Bank and the World Bank.
These banks have shown interest in supporting urban transport infrastructure in Andhra Pradesh.
APMRCL MD insists that further consultations will be conducted on interest rates and project promotion to obtain the most favorable terms. He said foreign bank representatives are expected to hold formal funding arrangements with the central and state governments soon.
Ramakrishna Reddy revealed that APMRCL has issued a tender notice to appoint general consultants for the two subway projects. The company aims to ensure effective development of two subway systems through international cooperation.
