World Bank ADB approve loans for the Amravati Project of Andhra Pradesh
Loan and Grant
4 min read
The World Bank and the Asian Development Bank have approved separate loans to the Amaravati Inclusive and Sustainable Capital City Development Program of the Andhra Pradesh government. The Programme seeks to develop the new capital city of Andhra Pradesh, Amaravati, as a smart and green city with world-class infrastructure.
Both the World Bank and the ADB will finance the development of the first phase of the Amaravati project.
Both the multilateral institutions will provide loans in Japanese Yen.
Japan is a partner in developing Amaravati as a new modern city in Andhra Pradesh and has agreed to provide financial and technical assistance.
$800 Million loan from the World Bank
The World Bank Executive Board approved the $ 800 million loan for the Amaravati project in a meeting in Washington, D.C, USA on 19 December 19 2024. The duration of the loan is 29 years, including a grace period of 6 years. The loan will be provided in Japanese Yen.
ADB sanctions $788.8 million loan for Amaravati
The Asian Development Bank has approved a $788.8 million loan for the Amaravati project. In Japanese Yen, the loan value is 121.97 billion.
About Amravati
After the bifurcation of Andhra Pradesh into two separate states of Andhra Pradesh and Telangana in 2014, Hyderabad was given to Telangana.
Hyderabad was to be the common capital of both states for the next 10 years till 2024, and Andhra Pradesh will build its new capital.
The Andhra Pradesh Government chose Amaravati in Vijayawada as the new Capital of the State. The Andhra assembly passed the Andhra Pradesh Capital Region Development Authority Act 2014, and the state government established the Andhra Pradesh Capital Region Development Authority to develop the state capital at Amaravati.
The Andhra Pradesh Capital Region Development Authority has launched the Amaravati Inclusive and Sustainable Capital City Development Program to develop a modern city in 217 sq. km in Vijayawada.
Use of the Loan Amount
Apart from funding the project, the World Bank and ADB will also help bring technical expertise to lay the groundwork for a dynamic, sustainable, and vibrant capital city in Amravati.
The loan will be used to improve access to infrastructure and green spaces and build low-carbon transport infrastructure, water and sanitation services, and drainage systems to mitigate flood risks.
It will also support the state and central government in bringing anchor investors, generating private investment, and creating new jobs benefiting women and youth.
