AP agency contradicts Jaitley, says WB has "approved" loan for

Contradicting what Union Finance Minister Arun Jaitley told the Rajya Sabha, the Andhra Pradesh Capital Region Development Authority (CRDA) claimed the World Bank has already "approved" a loan for development of the state capital city Amaravati.
"They (World Bank) have given the approval to go ahead with the project for 30 per cent of the project components.
"They have considered (the loan) under the retro finance category and accordingly we have gone ahead with the project," CRDA Commissioner Cherukuri Sreedhar said late last night.
The state-run planning agency had applied to the World Bank for a loan of USD 500 million.

However, Jaitley had said the project is still at the appraisal stage with the international financial body.
"This project is presently with the World Bank at the appraisal stage, with preliminary assessments and studies currently underway.

"Once project appraisal is completed, the loan negotiation will take place after which the loan will be approved by the World Bank," Jaitley told the Rajya Sabha on January 2 in reply to a question raised by YSR Congress member Vijayasai Reddy.
"In the case of the 'Amaravati Capital City Development Project', since the loan has not yet been approved, there is no utilisation and release of fund under this project," Jaitley had said.

While approval comes after appraisal, according to Jaitley, but the CRDA claims approval comes first and appraisal next.
"That is the World Bank system. Project, evaluation, approval, then appraisal and then contract. So we are in the system," the CRDA Commissioner contended.
In a 154-page status report brought out in December on Amaravati, the CRDA categorically stated that Rs 14,200 crore was "sanctioned" by Hudco, the World Bank and commercial banks, but did not give a break up of figures.
"That's the World Bank system. You go and ask the World Bank," the Commissioner curtly said when asked about the Finance Minister's statement that the project is still at the appraisal stage.

In fact, for close to two years now, the CRDA had been repeatedly claiming the World Bank accorded "in principle approval", "in principle sanction" and finally "sanction" for the loan.
"Yes, they have given written concurrence. They have given the approval to go ahead with the project for 30 per cent of the project components," Sreedhar said.
The CRDA's claims come at a time when the World Bank is looking into various issues related to the capital development project based on the many complaints it received.