Vijayawada: The Andhra Pradesh government on Sunday issued formal orders for use of funds provided by the World Bank and Asian Development Bank for the capital works in Amaravati.
The government confirmed that both international financial institutions will jointly extend a loan of Rs.15,000 crore ($800 million each) for this purpose. Urban development special chief secretary Anantha Ramu issued GOMs-118 on Sunday regarding the use of WB and ADB funds.
AP capital region development authority (CRDA) commissioner Katamneni Bhaskar is likely to sign the loan agreement with the World Bank and ADB in New Delhi on Monday.
The government said these funds will be utilized to develop world-class infrastructure, build green structures and create employment opportunities in Amaravati. CRDA has been tasked with implementing the development plans.
The authority would ensure ensuring that facilities such as main roads, ducts, drainage systems, floodwater canals, water reservoirs and safe drinking water infrastructure are developed.
The state government’s plans for sustainable development of Amaravati, submitted by the state CRDA, have received approval from the Union finance ministry. Both the World Bank and ADB too have endorsed these proposals and committed to providing a fund of $800 million each for the project.
The remaining funds for the capital’s development will be raised by the state government with assistance from the central government.
“To manage the funds effectively, the government has issued orders for the establishment of a special account to receive the loan assistance in phases, based on the progress of the development and construction work,” officials stated.
The state CRDA commissioner has been authorized to receive financial assistance and oversee implementation of the projects under the supervision of the CRDA.
