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With the World Bank preparing to release another $200 million by December for Amaravati’s Phase-I development, officials say progress is on track but will timely fund use and inspections keep Andhra Pradesh’s capital project momentum alive?
World Bank to disburse $200 million second tranche for Amaravati Phase-I by December.
Amaravati: Amaravati, Andhra Pradesh’s ambitious capital project, is set for another major financial infusion. The World Bank is expected to release a second tranche of $200 million by December 2025, marking renewed confidence in the city’s Phase-I development progress.
According toS. Suresh Kumar, Principal Secretary (Municipal Administration and Urban Development), the state has so far received $207 million from the Bank’s initial disbursement and spent close to half of it. “Before December, we should be able to claim the next instalment. It will be around a similar amount,” he told PTI.
The release of the next tranche depends on the state government utilizing 75% of the first loan amount, after which it can raise the next claim for disbursement.
Both the World Bank and the Asian Development Bank (ADB) have each pledged $800 million, totalling $1.6 billion (₹13,600 crore), for Amaravati’s Phase-I infrastructure. The Government of India has also committed ₹1,400 crore of the total ₹15,000 crore budgeted for the first phase.
The funding aims to strengthen core infrastructure including roads, water systems, green spaces, and administrative buildings. The International Bank for Reconstruction and Development (IBRD), a branch of the World Bank, is the primary lender for this initiative, while the Department of Economic Affairs acts as the borrower. The Andhra Pradesh Capital Region Development Authority (APCRDA) serves as the implementing agency.
Both World Bank and ADB committed $800 million each, totalling $1.6 billion (₹13,600 crore).
Monthly field inspections and record verifications by teams from the World Bank and ADB ensure project compliance. Officials said these teams meet with CRDA officers and conduct on-site evaluations to monitor environmental and social impact measures.
The World Bank, in its latest project update, expressed satisfaction over the ongoing work, stating:
“Overall implementation progress is satisfactory. The Bank has confirmed achievement of Disbursement Linked Results reflecting the commencement of construction activities and establishment of the Environmental and Social Management Unit.”
While the inflow of funds is a major boost, officials acknowledge that timely utilization and transparent execution are crucial to maintaining investor and institutional trust. As Andhra Pradesh pushes forward with its vision for a world-class, sustainable capital, all eyes are now on whether the next disbursement will accelerate on-ground work before year-end.
The upcoming $200 million disbursement signals growing confidence from international lenders in Amaravati’s revival. However, with deadlines, audits, and expectations mounting, the project’s future hinges not just on funding but on consistent execution and governance.
