Amaravati development: World Bank approves $800 million loan
A press release from the WB on Friday (December 20, 2024) said that the AIUDP was aimed at establishing the capital city as a well-managed, climate-resilient growth centre in Andhra Pradesh that would generate jobs and improve the lives of its current and future residents, especially the most vulnerable.
Tano Kouame, the WB’s Country Director for India, stated that with its urban population expected to double to 950 million by the year 2050, India aimed at building sustainable and livable cities as growth hubs and Amaravati offers an exciting opportunity to model that urban transformation.
He mentioned that the WB would bring global expertise to support the design of city institutions and infrastructure that can create economic opportunities for residents, including women, youth and vulnerable groups.
The A.P. Government has prepared a masterplan for a 217 sq km area that can accommodate 3.50 million people by 2050 and the WB was supporting the first phase of the city’s development along with the Asian Development Bank.
Extensive consultation efforts with communities would continue during the project implementation. The WB funding would catalyse a private sector investment of more than $600 million to help the city become financially sustainable and provide economic opportunities for its residents.
Balakrishna Menon and Gerald Ollivier, the WB’s task team leaders for the AIUDP, said catalysing investments was the key to making the city work for its residents. The AIUDP would help the government in mobilising the private sector to provide affordable housing and establish enterprises that can create quality jobs.
They pointed out that the Amaravati Masterplan reserved 22% of the residential area for affordable housing and the AIUDP would support this including by setting up a fund that can pool in private sector resources.
The WB would leverage international knowledge in sustainable urban design to build the city’s trunk infrastructure, including a road grid, public transport, and flood-mitigation and water/wastewater systems.
The $800 million loan requested by the Government of India for the development of Amaravati as the State Capital and an economic hub has a final maturity of 29 years including a grace period of six years. The loan would be availed in Japanese Yen.
Published - December 20, 2024 02:29 pm IST
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