Context: Recently, Asian Development Bank has approved a USD 780 million multi-tranche financing facility (MFF) to build new lines and improve the connectivity of the metro rail system in Chennai with the city’s existing bus and feeder services.
- This project will expand Chennai’s metro rail system to provide better transport solution to improve urban mobility.
About Multi-tranche financing facility:
- MFF is a longer-term partnership between Asian Development Bank (ADB) and client country.
- It provides funds for complex project which would need a longer commitment than a typical ADB investment loan could offer.
- Like a wide-range road network or energy program.
- It can finance multiple projects under investment program in a sector or in various sectors.
Source: The Hindu
Previous Year Question
Q.1) “Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which of the following: (2022)
- Asian Development Bank
- International Monetary Fund
- United Nations Environment Programme Finance Initiative
- World Bank