World Bank Approves $800 Million Loan for Amaravati's Development

New Delhi, Dec 20 (NationPress) The World Bank's Board of Executive Directors has sanctioned the $800 million Amaravati Integrated Urban Development Programme, which aims to transform the city into a well-managed, climate-resilient growth center in Andhra Pradesh, generating employment and improving the lives of both current and future inhabitants.

"With its urban population projected to double to 950 million by 2050, India seeks to construct sustainable and livable cities as growth hubs. Amaravati presents a significant opportunity to exemplify this urban transformation," stated Auguste Tano Kouame, the World Bank's Country Director for India.

"The World Bank will apply global expertise to assist in the design of city institutions and infrastructure that can create economic opportunities for residents, particularly women, youth, and vulnerable groups."

Currently, approximately 100,000 people reside in the Amaravati region, with the population anticipated to increase significantly over the next decade. The government has devised a master plan for a 217 sq km area capable of accommodating 3.5 million people by 2050. Both the World Bank and the Asian Development Bank are backing the initial phase of the city's development.

"The Bank's financing will also stimulate over $600 million in private sector investments to ensure the city's financial sustainability and provide economic opportunities for its residents," as noted in a statement from the World Bank.

The city's Social and Economic Masterplan projects that Amaravati could create 50,000 jobs in the next five years across sectors such as construction, agro-processing, clean manufacturing, and services.

Residents of the city, particularly women and youth, will gain from the World Bank's assistance through job-oriented skills training and other livelihood support aimed at generating new opportunities.

The programme is set to directly train 17,000 individuals, with 10,000 being women, to enhance their access to better and higher-paying jobs, according to the statement.

The World Bank will utilize international knowledge in sustainable urban design to develop the city's trunk infrastructure, including a road grid, public transport, flood mitigation, and water/wastewater systems.

The initiative will also promote the creation of well-designed community facilities and public spaces at the neighborhood level, alongside affordable housing for the city’s underprivileged citizens.

It will introduce smart, green technologies and design methods to enhance the city’s resilience to climate impacts, utilizing low-carbon and nature-based solutions while also improving disaster management capacity.

The $800 million loan requested by the Government of India to develop Amaravati as a financial center and the state capital of Andhra Pradesh has a total maturity of 29 years, including a grace period of six years.