ADB Approves USD 240 Million Loan For Chennai Metro Expansion

17 Dec 2025 CW Team

The financing forms part of ADB’s USD 780 million multitranche financing facility approved in 2022 and follows the initial USD 350 million loan under the first tranche. The latest tranche will support key sections of Metro Lines 3, 4 and 5, covering around 20 kilometres of elevated and underground corridors and the construction of 18 new stations equipped with universal access features and disaster-resilient infrastructure to ensure service continuity 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 Mio Oka, ADB Country Director for India. She added that continued collaboration would help expand metro connectivity and strengthen the capacity of Chennai’s metro and suburban rail systems to meet rising mobility demand.

Under Tranche 2, ADB will fund civil and system works for the elevated section of Line 3 between Sholinganallur and SIPCOT-2, the underground section of Line 4 between Lighthouse and Kodambakkam, and key system components for Line 5, including power supply, traction and telecommunications. The tranche will also support upgrades to multimodal interchange areas to enable smoother transfers between metro services, buses, bicycles and other last-mile transport options.

Beyond physical infrastructure, the project aims to enhance inclusive station design, improve travel safety for women and vulnerable users, and support measures to increase non-fare revenues, strengthening the long-term financial sustainability of the metro 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 deliver quality infrastructure and long-term development outcomes.

The Asian Development Bank (ADB) has approved a USD 240 million loan as the second tranche of the Chennai Metro Rail Investment Project to support network expansion and deliver cleaner, safer and more reliable urban transport across the Chennai Metropolitan Area. The financing forms part of ADB’s USD 780 million multitranche financing facility approved in 2022 and follows the initial USD 350 million loan under the first tranche. The latest tranche will support key sections of Metro Lines 3, 4 and 5, covering around 20 kilometres of elevated and underground corridors and the construction of 18 new stations equipped with universal access features and disaster-resilient infrastructure to ensure service continuity 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 Mio Oka, ADB Country Director for India. She added that continued collaboration would help expand metro connectivity and strengthen the capacity of Chennai’s metro and suburban rail systems to meet rising mobility demand. Under Tranche 2, ADB will fund civil and system works for the elevated section of Line 3 between Sholinganallur and SIPCOT-2, the underground section of Line 4 between Lighthouse and Kodambakkam, and key system components for Line 5, including power supply, traction and telecommunications. The tranche will also support upgrades to multimodal interchange areas to enable smoother transfers between metro services, buses, bicycles and other last-mile transport options. Beyond physical infrastructure, the project aims to enhance inclusive station design, improve travel safety for women and vulnerable users, and support measures to increase non-fare revenues, strengthening the long-term financial sustainability of the metro 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 deliver quality infrastructure and long-term development outcomes.

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