TestCloud
Prep • Practice • Perform
Log In

World Bank Sanctioned USD 800 Million Loan for Amaravati Development.

Banking & Finance | Dated: 26 Dec 2024

On December 20, 2024, the World Bank's (WB) Board of Executive Directors approved a USD 800 million loan for the Amaravati Integrated Urban Development Project (AIUDP), aimed at developing Amaravati as the greenfield capital city of Andhra Pradesh (AP).

🎯 Key Highlights:

  • - The loan has a final maturity of 29 years, including a 6-year grace period, with India opting to take the loan in Japanese Yen (JPY).
  • - The financing from the World Bank is expected to attract over USD 600 million in private investment, supporting the city's financial sustainability and creating economic opportunities for its residents.
  • - The project aims to transform Amaravati into a well-managed, climate-resilient hub in Andhra Pradesh (AP), creating jobs and improving the lives of residents, particularly the most vulnerable.

💡 Other Important Facts:

  • (i) The World Bank (WB) and the Asian Development Bank (ADB) are supporting the first phase of Amaravati's development, which aligns with India's urban development goals. With the urban population projected to reach 950 million by 2050, Amaravati is set to serve as a model for sustainable cities.
  • (ii) Currently, around 100,000 people live in Amaravati, with the population expected to grow significantly in the next decade. A master plan has been developed for a 217 square kilometer area, designed to accommodate 3.5 million people by 2050.
  • (iii) The Amaravati Masterplan allocates 22% of residential areas for affordable housing.

📚 Test Your Knowledge:

How much loan Recently has the World Bank sanctioned for the development of Amaravati?

Correct Answer: USD 800 million

🚀 Quick Recap:

About World Bank

  • President : Ajay Banga
  • Country Director for India : Auguste Tano Kouame