The MahaMetro Corporation has finalised the debt arrangement for its project's second phase in Nagpur. It would be raising a loan of Rs 3,586 crore from the Manila-based Asian Development Bank (ADB) and the European Investment Bank.

There has been a change in lenders for the second phase. The first phase was funded by Frances AFD and KFW a German agency. Both together had chipped in 630 million Euros.

French consul general Jean Marc Sere-Charlet during his visit to Nagpur this month had expressed that the country would be keen to fund the second phase of the Nagpur Metro project too.

Now ADB would be contributing $200 million with EIB putting in 239 million Euros for the project. The amount comes to over Rs 3,500 crore. The decision was taken a few days ago.

Managing director of MahaMetro Brajesh Dixit said tying up with the lenders is a random process. It depends on the availability of international financial institutions at that point in time and their capacity to lend for projects in India at the given juncture. The exact terms and conditions would be known when the deal is finally signed. Certain approvals from the state government would be needed before that, he said.

The total cost for the second phase comes to over Rs 6,700 crore. Out of this, Rs 3,100 is in the form of equity coming from central and state governments. For the first phase, it was Rs 8,680 with both debt and equity at 50% each, said a source.