JICA Approves $850 Million Loan for Bengaluru Metro Phase 3

Japan International Cooperation Agency (JICA) Loan for Bengaluru Metro Phase 3 (I)

Loan Details: JICA has extended a loan equivalent to approximately Rs 6,100 crore (102,480 million Japanese yen) to fund Phase 3 (I) of the Bengaluru Metro project. The loan is an Official Development Assistance (ODA) loan with a repayment period of 30 years, including a 10-year grace period.

Project Overview: Phase 3 (I) of the Bengaluru Metro project involves the construction of 44.65 km of metro lines with 31 elevated stations. The project comprises two corridors: the JP Nagar 4th Phase-Kempapura stretch along Outer Ring Road (West) and the Hosahalli-Kadabagere line along Magadi Road. The corridors will integrate with the Airport Line and Line 6, forming a circular network around the city.

Project Objectives: The project aims to address growing traffic demand in the Bengaluru Metropolitan Region by expanding the mass rapid transit system. It is expected to improve urban mobility, promote regional economic growth, and reduce pollution caused by the increasing number of vehicles.

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Loan Terms: The loan carries an interest rate linked to Tokyo Official Discount Rate (TORF) plus 80 basis points for the project and 0.80 percent for consulting services. Procurement will be under general untied conditions.

Timeline: The project is targeted for completion by January 2032. Invitations for consulting services are expected in April 2026, while tenders for initial civil works packages are likely to be floated in May 2026.