Amaravati development: World Bank approves $800 million loan

World Bank approves $800 million loan for Amaravati Integrated Urban Development Program to transform Andhra Pradesh's capital city.

In a major boost to the development of Amaravati, the greenfield capital city of Andhra Pradesh (A.P.), the World Bank (WB) on Thursday (December 19, 2024) approved the $800 million loan for the Amaravati Integrated Urban Development Program (AIUDP). 

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.

Andhra Pradesh govt. approves works worth ₹24,276 crore in capital city of Amaravati

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.