The Asian Infrastructure Investment Bank (AIIB) on Tuesday approved a $356.67-million loan to the Government of India to support the expansion of the metro rail network in the southern Indian city of Chennai. The project involves the construction of a new corridor as part of Chennai Metro Rail Phase 2.

"The new Corridor-4 of Chennai Metro is around 25 kilometers in length, of which we are financing the first 16 kilometers," said D.J. Pandian, AIIB's vice president for investment operations, who chaired Tuesday's signing event that was held virtually.

"This project is aligned with AIIB's mandate to support high-quality and sustainable infrastructure. The improvement and integration of the transport sector in Chennai will further promote trade and economic growth," he added.

The project's design and construction will have environmentally friendly features to help reduce its carbon footprint. In addition to solar panels installed on the roofs of the elevated stations, the project will have dedicated spaces for bicycles and green vehicles and signage to raise environmental awareness. The project also integrates climate change resilience features to reduce its vulnerability to climate-related events.

Earlier on Tuesday, the Beijing-headquartered bank pledged to align its operations with the goals of the Paris Agreement on climate change by July 1, 2023, as it kicked off its sixth annual summit, a three-day event being hosted virtually by the United Arab Emirates from October 26-28.

Pandian also listed other transportation projects in Chennai that are backed by the AIIB. "The $400-million Chennai Metro Corridor-5 is already under pipeline at an advanced stage of project approval process. We are also working on a few other transport projects in Chennai, including the Chennai Outer Ring Road project worth $300 million," Pandian said.

The second-largest shareholder in the bank behind China, India is also the largest AIIB beneficiary, with 28 projects amounting to $6.7 billion.

In keeping with AIIB's vision of promoting environmentally conscious projects, the bank is also funding metro rail projects in Egypt and Turkey.