The Asian Infrastructure Investment Bank (AIIB) approved a lending for Mumbai Urban Transport Project (MUTP) Phase 3 for $500 mn. According to a release from AIIB, “A loan of USD500 million granted to the government of India is expected to fast-track work on Mumbai’s suburban railway network, improving the safety and daily commute of millions of passengers across the city. The funds will contribute to a quadrupling of Virar-Dahanu Road corridor (64 kilometers) to provide an extension of the suburban railway service to connect peripheral areas with Mumbai. The project will also see the construction of a new suburban railway corridor between Panvel and Karjat localities (28 kilometers) to cater to commuters in the area under rapid urbanization and population growth.”
MUTP Phase 1 (2002-2011) for $542 mn and Phase 2 (2010-2016) for $344 mn were supported by the World Bank. In 2004 a complaint was filed with the Inspection Panel of the World Bank on the negative impacts of MUTP 1. The Panel reported a number of violations, including that of consultation with affected communities, poor rehabilitation, absence of effective grievance system, among others. The Bank suspended disbursements on the road and resettlement components of the Project on March 1, 2006. (for more information: https://architexturez.net/pst/az-cf-26978-1143701328)
AIIB has proposed a new project Assam Intra-State Transmission System Enhancement Project. Out of the $593 mn project cost, AIIB is proposing to support $490 mn. The project is expected to be approved by the Board in May 2020.
The project aims to strengthen the State of Assam’s electricity transmission system by way of a) constructing new transmission sub-stations and laying new transmission lines with the associated infrastructure, b) up-gradation of existing substations and associated transmission lines, and existing ground wire to optical power ground wire (OPGW).
With these, India now accounts for $2.9 billion from AIIB. Out of the total AIIB investments globally, India has a share of
· 25% of approved projects
· 33% of approved standalone projects
· 30% of total value of approved projects
· 18% of proposed projects
· 16% of proposed standalone projects
· 20% of total value of proposed projects
AIIB, which commenced operations in India in 2016, has contributed to 13 projects in India, the second-largest shareholder for AIIB in infrastructure, transport, energy, water, and finance sectors.