In what might prove to be another impediment to the development of Amaravati, China-based Asian Infrastructure Investment Bank (AIIB) has dropped plans to finance of $200 million to the State’s capital.
“AIIB is no longer considering the Amaravati Sustainable Infrastructure and Institutional Development Project for funding,” Director General, Communications for AIIB, Laurel Ostfield told Reuters in an emailed statement.
This comes after the World Bank had dropped a $300 million loan to the Amaravati project. In a recent statement, it was informed that the Government of India (GoI) withdrew its request to the World Bank for financing the proposed Amaravati Sustainable Infrastructure and Institutional Development Project. The World Bank though mentioned that it will continue to support Andhra Pradesh in different sectors including health, agriculture, energy, and disaster management. The move led to a blame game between YSRCP and TDP in the Andhra Pradesh Assembly.
It was earlier decided that the World Bank and Asian Infrastructure Investment Bank would together pump in about $500 million for the development of the capital’s infrastructure while the remaining sum will be provided by the State Government. With both the banks backing out of the project, the Government is expected to find alternatives for financing the ambitious project in Andhra Pradesh.