The World Bank has approved two projects worth $405 million (around Rs 1,903.5 crore) to design and promote environmentally-friendly modes of urban transport, and to improve management and delivery of services in urban areas of Andhra Pradesh.
Of this, a $105-million (Rs 493.5 crore) loan for sustainable urban transport project (SUTP) will finance capacity building and demonstration projects in select cities that will create models of sustainable transport solutions for Indian cities to replicate.
These projects include public transport development such as development of new bus systems, and non-motorised transport development including cycle track investments. The project is also supported by a $20.5-million (around Rs 96.35 crore) grant from the Global Environment Facility (GEF).
“India’s own transport policy puts forward a vision for urban transport that focuses on people, not vehicles, emphasises livability, and facilitates urban growth,” said Roberto Zagha, World Bank’s country director for India. “The main goal of SUTP is to support the achievement of that vision by helping create a successful project that can spur a shift toward sustainable urban transport policies and programs at the state and local level.”
Urban growth in Andhra Pradesh, India’s fifth most populous state, has accelerated alongside its rapid economic growth. While urban poverty in the state has declined impressively, provision of urban services such as roads, water and sanitation has been falling behind the growing demand. For example, the state’s municipal sewerage systems serve less than 20 per cent of its residents.
The $300-million (Rs 1,410 crore) loan for the Andhra Pradesh Municipal Development Project (APMDP) will finance sustainable, high-priority urban infrastructure projects, which will be selected and implemented by urban local bodies (ULBs).