World Bank to Release Second USD 200 Million Tranche for Amaravati Capital Development by December

The World Bank has expressed satisfaction with the implementation progress of the Amaravati Capital Project in a recent update.

Amaravati:

According to a senior official from the Andhra Pradesh government, the World Bank is projected to disburse the second installment of USD 200 million by the end of this year as part of its USD 800 million commitment for Amaravati Capital Phase-I development.

For the Phase-I development of Amaravati capital city, both the World Bank and Asian Development Bank (ADB) have pledged USD 800 million each, totaling USD 1600 million (approximately Rs 13,600 crore). Additionally, the Central government has committed to providing Rs 1400 crore out of its total Rs 15,000 crore pledge for Phase-I development.

S Suresh Kumar, Principal Secretary (Municipal Administration and Urban Development), confirmed that the World Bank has already released USD 207 million, of which nearly 50 percent has been utilized for various development works.

"They have already released approximately Rs 1800 crore. We have spent less than 50 percent of that amount so far. We anticipate being able to claim the next installment before December, which should be of a similar amount," he informed PTI.

The state government will be eligible to request the next disbursement once it has utilized 75 percent of the initial loan tranche (USD 207 million), prompting the World Bank to release subsequent funds.

The official noted that inspection teams from both the World Bank and ADB conduct regular monthly visits to Amaravati.

"Both teams verify records, hold meetings with our teams and CRDA (capital region development authority) officers, and conduct field inspections. They also interact with me every month," he added.

In its recent project update, the World Bank expressed satisfaction with the implementation progress of the works.

"Overall implementation progress is satisfactory. The first disbursement of USD 207 million Program advance was released in March, 2025. The Bank has confirmed achievement of DLR (Disbursement Linked Result) 7.1 and DLR 1.2 (i) under the programme, reflecting the commencement of construction activities and the establishment of the Environmental and Social Management Unit," stated the World Bank update.

The funding of USD 800 million will be provided by the International Bank for Reconstruction and Development (IBRD), a component of the World Bank that offers loans and guarantees to middle-income and creditworthy low-income countries, alongside the ADB's contribution.

According to World Bank documentation, the Department of Economic Affairs at the Centre is designated as the borrower, while the Andhra Pradesh Capital Regional Development Authority serves as the implementing agency.