Rail network expands in overcrowded MMR
The Asian Infrastructure Investment Bank (AIIB) is providing a US$500 million loan for the Mumbai Urban Transport Project-III to improve the network capacity, service quality and safety of the suburban railway system in the Mumbai Metropolitan Region (MMR).
AIIB Vice President D.J. Pandian said that the project represents another major step in supporting our member countries in their efforts to provide transport capacity while removing transport bottlenecks, and thus improving the daily commuting experience of millions of Mumbaikars.
“In line with our Transport Sector Strategy, the Mumbai Urban Transport Project-III will also help in reducing carbon emissions by shifting passengers away from higher-carbon road transport towards efficient and convenient rail-based mobility.
“In addition, female passengers will benefit from improved safety and quality of service,” he said.
The total estimated cost of the project is US$997 million, of which US$500 million will be financed by the AIIB, US$310 million by the Government of Maharashtra and US$187 million by Ministry of Railways.
The US$500 million AIIB loan has a 5-year grace period and a maturity of 30 years.
The Project is expected to increase network capacity in the region with a reduction in journey time.
The loan agreement was signed on 24 Aug 2020 by Sameer Kumar Khare, Additional Secretary, Department of Economic Affairs, Sanjay Kumar, Chief Secretary on behalf of the Government of Maharashtra, R. S. Khurana, Chief Managing Director on behalf of the Mumbai Rail Vikas Corporation and Rajat Misra, Director General (Acting), Investment Operations on behalf of the AIIB.
Khare said that the project will assist in improved mobility, service quality and safety of passengers of the suburban railway system of Mumbai, by providing faster, more reliable and higher quality transport services compared to road-based transport.
There will be direct safety benefits to passengers and the public through introduction of trespass control measures, he added.
MMR is expected to have a population of 29.3 million by 2031 and 32.1 million by 2041. But it is already congested with a population of 22.8 million as of 2011.
This population growth represents the core driver behind Mumbai’s urban expansion, compelling Maharashtra to prioritize sound urban and infrastructure planning which balances economic activities, mobility as well as the optimization of environmental and social outcomes, said the Ministry of Finance.
Around 86% of Mumbai commuters rely on public transport. However, supply has not kept pace with rising travel demand.
The Mumbai suburban railway network, which carries three-quarters of all motorized travel (78% of passenger-km or eight million passengers per day) increasing at 3% annually, suffers from some of the most severe overcrowding in the world, acknowledged the Ministry.
User experience is further compromised by low amenity of carriages, substandard stations and station access, and serious safety concerns. #rail #AIIB #loan #financing #project #tenders #carbon /fiinews.com
