World Bank releases $340M for Amaravati Phase I; more funds expected by April end

Amaravati: The World Bank has disbursed around USD 340 million so far for the Phase-I development of the Amaravati capital project, a senior official from the international financial institution has confirmed.

Andhra Pradesh is expected to receive an additional USD 130–150 million by the end of April from the World Bank and the Asian Development Bank (ADB), according to a senior state government official. The combined funding support from the two multilateral lenders stands at USD 1.6 billion, with USD 800 million committed by each institution. The central government has also pledged Rs 1,400 crore as part of its overall Rs 15,000 crore commitment to the project.

Officials said disbursements under the Amaravati Integrated Urban Development Programme are being made under a Program-for-Results framework, meaning funds are released based on the achievement of agreed milestones rather than a fixed schedule. The World Bank has noted that repayments on its loan will begin in June 2031, following a six-year grace period, with a total maturity period of 29 years.

ALSO READ | Amaravati declared sole capital of Andhra Pradesh

According to the World Bank, the initial phase of the programme has focused on strengthening institutions and building administrative capacity to support Amaravati as an inclusive and growth-oriented urban centre. Several studies and assessments are currently underway to establish governance systems designed to attract investment and improve urban management.

Alongside institutional development, skill-building initiatives are being implemented to improve employment opportunities, particularly for women and young people, as the new capital region develops.

ALSO READ | ‘Is this your Plan B, Jagan?’: Lokesh’s sharp dig over ‘MAVIGUN’ sparks row

Infrastructure works are also progressing, with contractors mobilised to construct arterial and neighbourhood roads, housing, and essential city systems including water supply, wastewater management, and stormwater drainage. Flood mitigation works are reportedly advancing steadily, with more than 35 per cent completion across six sites.

The World Bank, in partnership with the ADB, said it will continue to support Andhra Pradesh in developing Amaravati into a climate-resilient, well-planned urban hub aimed at driving economic growth, generating employment, and improving living standards.