World Bank Poised To Renew Support For Amaravati’s Capital Development

The World Bank has signaled its readiness to re-engage in funding the construction of Amaravati, the capital city of Andhra Pradesh, after a previous halt due to political controversies. The loan plan, initially disrupted by the political maneuvers of YCP leaders, is now on track for revival.

Recently, a four-member delegation from the World Bank, including senior specialists Raghu Kesavan, Gerald Paul Aliviar, King Un Shen, and South Asia Urban Practice Manager Abedali Rajaq F Khaleel, visited Amaravati. They met with Chief Minister Chandrababu Naidu at the Secretariat to discuss the financial assistance required for the city’s development. The Chief Minister outlined the state government’s ambitious vision to establish Amaravati as a world-class capital.

The discussions also included Minister for Municipal Administration P Narayana and CRDA Commissioner K Bhaskar. The CRDA officials indicated that a subsequent visit from top World Bank officials will be arranged to finalize the details regarding the forthcoming loan.

In the past, Naidu’s administration had sought World Bank cooperation for Amaravati’s construction, with a proposal for a Rs. 7,200 crore loan, divided into two phases. The first phase, which had already received central government approval, included Rs. 3,200 crores. However, the process was stalled when YCP leaders alleged that World Bank-funded projects were detrimental to local interests. This led to an investigation and a delay in the loan facility.

With the recent change in state government, the situation regarding Amaravati’s development has remained fluid. During their three-day visit, the World Bank team conducted a thorough review of ongoing projects, including the Kondaveeti Vagu lift irrigation pump house, and inspected various construction sites and educational institutions such as SRM and VIT universities. Their detailed observations and forthcoming reports are expected to pave the way for renewed financial support and continued development of Amaravati.