ADB approves $789 mn loan to develop Amaravati as smart, green city

The Asian Development Bank (ADB) has sanctioned a USD 788.8 million (over ?6,600 crore) results-based loan to Andhra Pradesh for the development of Amaravati as a green and smart capital city that offers world-class infrastructure.

According to an official statement from ADB, the loan will be provided in Japanese yen, amounting to 121.97 billion yen.

The Amaravati Inclusive and Sustainable Capital City Development Programme is designed to transform Amaravati into a growth hub for the region, enhancing economic prospects, providing job opportunities, and improving living conditions of the residents.

ADB and other multilateral development banks (MDBs) will bring global expertise and technical support to the Government of Andhra Pradesh, establishing a strong foundation for a dynamic, sustainable, and vibrant capital city, said Mio Oka, ADB Country Director for India.

 

We believe that Amaravati will become a replicable model for not only developing greenfield cities but also for systematic and orderly transformation of peri-urban areas of existing cities throughout the country, Mio Oka added.

The programme aims to support the government in bringing anchor investors, generate private investment, and create new jobs benefiting women and youth.

The ADB's contribution will strengthen urban institutions and governance framework through sustainable asset management, fostering publicprivate partnerships, supporting climate change and disaster risk management, promoting gender equality and social inclusion, and leveraging smart technologies to improve urban planning and service delivery, the release added.

The World Bank and ADB together have in principle committed to fund USD 1600 million for the development of Amaravati.