Asian Development Bank
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Hyderabad: Manila-headquartered Asian Development Bank (ADB) on Thursday announced that it has approved a $788.8 million results-based loan to Andhra Pradesh for the development of Amaravati as a green and smart capital city that offers world-class infrastructure.
The loan will be provided in Japanese yen with a total value of ¥121.97 billion. ADB funds will be utilised to develop key infrastructure, including trunk infrastructure, a government complex, and neighbourhood infrastructure in Amaravati, benefiting farmers who are the stakeholders under the land pooling schemes.
ADB said that the 'Amaravati Inclusive and Sustainable Capital City Development Programme' will be supported in collaboration with other multilateral development banks (MDBs) like World Bank to ensure timely and high-quality delivery of infrastructure and services.
“ADB and other MDBs will bring global expertise and technical support to the Government of Andhra Pradesh, laying the groundwork for a dynamic, sustainable, and vibrant capital city. Our collaboration will span climate-resilient urban planning, establishing governance and institutional frameworks, and social inclusion. We believe that Amaravati will become a replicable model for not only developing greenfield cities but also for systematic and orderly transformation of peri-urban areas of existing cities throughout the country,” said ADB Country Director for India Mio Oka.
The programme will improve access to infrastructure and green spaces, water and sanitation services, low-carbon transport infrastructure, and improve drainage systems to mitigate flood risks. It aims to support the government in bringing anchor investors, generate private investment, and create new jobs benefiting women and youth, said ADB.
“ADB’s contribution will strengthen urban institutions and governance framework through sustainable asset management, fostering public–private partnerships, supporting climate change and disaster risk management, promoting gender equality and social inclusion, and leveraging smart technologies to improve urban planning and service delivery,” added Oka.
In the first budget after NDA came to power a few months ago, the finance minister, Nirmala Sitharaman, announced that the union government will arrange funding to the tune of Rs 15,000 crore through multilateral development agencies to build Amaravati.
After the budget announcement, APCRDA had forwarded the project proposals to the Department of Economic Affairs. Since then, representatives from the World Bank and Asian Development Bank have visited Andhra Pradesh and held discussions multiple times with the government officials and also the farmers from the capital region. The Andhra Pradesh government submitted funding proposals totaling USD 1.786 billion, or Rs 15,000 crore.
ADB felt that development of Amaravati is urgent, as it will not only serve as the new capital city for the state and a growth hub for the region but also as a replicable model for the rest of the country and other developing member countries. ADB, in partnership with the World Bank, will support bridging financial gaps for the timely, high-quality delivery of the infrastructure assets and services in Amaravati. The World Bank will be releasing $800.00 million for Amaravati development.