New Delhi [India], December 20 : The World Bank has approved a USD 800 million loan for the development of ambitious Amaravati city in Andhra Pradesh.
Situated in a well-connected region along India's east coast, Amaravati will be part of a broader metropolitan region that includes two cities, Vijayawada and Guntur.
As per a statement from the international financial institution, Amaravati Integrated Urban Development Program is aimed at establishing the city as a well-managed, climate-resilient growth center in Andhra Pradesh.
The World Bank will bring global expertise to support the design of city institutions and infrastructure that can create economic opportunities, said Auguste Tano Kouame, the World Bank's Country Director for India.
"With its urban population expected to double to 950 million by 2050, India aims to build sustainable and livable cities as growth hubs, and Amaravati offers an exciting opportunity to model this urban transformation," Auguste Tano Kouame was quoted in the statement.
Currently, about 100,000 people live in the Amaravati area, with the population expected to grow severalfold over the next decade.
The government has prepared a master plan that can accommodate 3.5 million people by 2050.
The World Bank and the Asian Development Bank are supporting the first phase of the city's development.
The World Bank said that the bank financing will also catalyze more than USD 600 million in private-sector investment to help the city become financially sustainable.
The World Bank will leverage international knowledge in sustainable urban design to build the city's trunk infrastructure, including a road grid, public transport, and flood-mitigation and water/wastewater systems.
The USD 800 million loan requested by India to develop Amaravati as an economic hub and state capital for Andhra Pradesh, has a final maturity of 29 years, including a grace period of 6 years, the statement added.
On December 12, the Asian Development Bank (ADB) approved a USD 788.8 million loan to the state of Andhra Pradesh for the development of Amaravati city.