World Bank releases US$ 340 mn for Amaravati development

World Bank has disbursed US$ 340 million for Amaravati Capital Phase-I, with further funding expected. The project, supported also by Asian Development Bank, aims to build infrastructure and boost jobs in Andhra Pradesh under a results-linked financing model

Amaravati: The World Bank has released USD 340 million so far for the Amaravati Capital Phase-I development, a top official from the international financial institution has said.

Andhra Pradesh is likely to get another USD 150 million by the end of April, a senior state government official said.

---

“In April, we are getting another USD 130-150 million from both the entities (WB and ADB).” The rate of interest would be about 8 to 8.5 per cent and will keep fluctuating depending upon the international rates, the official said.

The World Bank, along with the Asian Development Bank have committed USD 1,600 million (USD 800 each) for the Amaravati Capital Phase-I development. Besides the WB and ADB, the Centre will be funding Rs 1,400 crore, out of the Rs 15,000 crore committed by it.

“In terms of disbursements, the World Bank has issued USD 340 million as of April 2026. The AIUDP (Amaravati Integrated Urban Development Programme) is being implemented under the Program for Results framework, under which disbursements are linked to the achievement of certain results or milestones, and not according to a fixed schedule,” a World Bank spokesperson told PTI.

Future fund releases are linked to the achievement of those agreed milestones. The loan has a six-year grace period and a 29-year final maturity, with repayment of the World Bank loan starting on June 15, 2031, the WB official further said.

During the first 14 months, the primary focus has been on helping the government strengthen key institutions and build the capacity required to establish Amaravati as an inclusive city that can be a growth hub for the state and create jobs for its people, the official said.

Key assessments and studies are underway that will help the Andhra Pradesh government set in place the urban governance and management systems needed to manage the new city and attract investors.

Job-focussed skilling programmes are also being rolled out to equip existing people, especially women and youth, to take advantage of the new economic opportunities that will emerge as the city grows, the WB official said.

Work on building core infrastructure for the new city is also underway, with contractors mobilised to build the network of arterial and neighborhood roads, housing buildings and city-wide systems for water supply, wastewater and stormwater drainage that are being supported by the World Bank- supported Programme.

“Flood management works are also making steady progress with over 35 per cent of the works completed across six locations,” the WB official said.

The WB (partnering with the Asian Development Bank) will continue to support the Andhra Pradesh government by leveraging international best practices and technical expertise to help make Amaravati a well-managed, climate-resilient city that can spur growth, create jobs, and provide a better quality of life for its current and future residents, the official added.