In a significant development in the construction of Andhra Pradesh's capital city of Amaravati, the Asian Development Bank (ADB) has conveyed to the state government that it has approved a loan agreement for the project.
This was disclosed by AP Capital Region Development Authority (APCRDA) commissioner Katamaneni Bhaskar at the Collectors’ Conference chaired by chief minister N Chandrababu Naidu in the state secretariat on Thursday.
He said at a meeting held in Manila on Wednesday, the ADB board granted approval for a loan of Rs 8,000 crore, while the remaining lending would be done by the World Bank.
Recently, crucial discussions were held in Delhi involving representatives from the World Bank, ADB, the Union Finance Ministry, the CRDA, and the Amaravati Development Corporation (ADC).
The World Bank Board is set to meet on December 19, where formal signing will complete the process. Approximately 25% of the funds are expected to be released by the end of December, Bhaskar said.
The combined loan of Rs 13,500 crore from the World Bank and ADB comes with a five-year moratorium. Repayment will begin after five years, spanning 23 years in biannual instalments.
Sources reveal that the central government will be responsible for repaying the loan.