Amaravati: The World Bank is set to release the second tranche of USD 200 million for the Amaravati Capital Phase-I development by December, a senior Andhra Pradesh government official confirmed on Thursday. This forms part of the World Bank’s total commitment of USD 800 million for the project, matched by an equal contribution from the Asian Development Bank (ADB), bringing the combined funding to USD 1.6 billion (approximately Rs 13,600 crore). The Centre will additionally provide Rs 1,400 crore, part of its overall Rs 15,000 crore allocation for Phase-I.
According to S. Suresh Kumar, Principal Secretary of Municipal Administration and Urban Development, the first tranche of USD 207 million has already been released, with nearly 50% utilized for various project works. He noted, “Before December, we should be able to claim the next instalment, which will be around a similar amount.” The release of the next tranche is contingent on the state government spending at least 75% of the first tranche.
Regular inspections by World Bank and ADB teams are conducted in Amaravati, including field visits and meetings with officials from the Capital Region Development Authority (CRDA) and other project teams. These checks ensure proper utilization of funds and adherence to project milestones.
The World Bank, in a recent update, expressed satisfaction with the implementation progress. The update highlighted the achievement of Disbursement Linked Results (DLR) 7.1 and 1.2 (i), which reflects the commencement of construction activities and the establishment of the Environmental and Social Management Unit.
The International Bank for Reconstruction and Development (IBRD), a branch of the World Bank that provides loans and guarantees to middle-income countries, is funding USD 800 million alongside ADB. The Department of Economic Affairs (DEA) at the Centre acts as the borrower, while the Andhra Pradesh Capital Region Development Authority (APCRDA) serves as the implementing agency for the project.
The timely release of the second tranche is expected to accelerate infrastructure development in Amaravati and ensure the smooth progression of Phase-I construction activities.
