The World Bank and the Asian Development Bank have agreed to finance the construction of Amaravati, the capital of Andhra Pradesh. The two banks have issued a statement on Friday reiterating their commitment to fund US $ 800 million. This would amount to Rs 6800 crore.
The World Bank and the Asian Development Bank have said that they would assist the Andhra Pradesh state government in the construction of buildings in Amaravati. They would encourage the government to use green technology in the construction.
The state government would have to repay the loan after 29 years with six years grace period, the banks said. The banks further said that their experts would closely work with the state government in the construction of the city, the banks announced.
The two banks said that the state government had prepared the plan to develop the city in 217 square kilometers. There are one lakh people now in Amaravati. This number would go up to 35 lakh people by 2050, the banks said.
The banks further said that the population in the towns and cities would go up in the next 25 years. The urban population would account for 90 crore by 2050, and so the population of Amaravati, the banks said in their statement.
They have reserved 25 per cent of the houses for the poor and middle class in Amaravati, the banks said. The government would encourage the poor and middle classes to reside in Amaravati in the next 25 years, the banks said.
The banks and the state government would work together to develop Amaravati as the centre of economic, the banks said. The banks further expressed confidence that Amaravati would attract more work force in the come two decades. There would be more economic action in Amaravati for the next 20 years, the banks said.
Meanwhile, the Andhra Pradesh state government had welcomed the decision of the World Bank to release funds for Amaravati. The state government said that it was welcome decision. The government further said that it would start the works in Amaravati in January 2025.
The state government had already called Norman and Fosters, the designers of Amaravati to be part of the construction activity. Th e government had also called the other contractors to come back and resume the works that they have left in 2019, when the TDP was defeated.
