AIIB Exits Amaravati After World Bank

The to-be dream capital of Andhra Pradesh, Amaravati, has faced another jolt when Beijing-based Asian Infrastructure Investment Bank (AIIB) said no to Amaravati project. After World Bank and now AIIB, it is unlikely that the capital city will take a shape in the near future.

AIIB bank’s spokeswoman, Laurel Ostfield told, “AIIB is no longer considering the Amaravati Sustainable Infrastructure and Institutional Development Project for funding.” Although no reason is cited by the bank for an exit, it is speculated that the reason could be World Bank’s exit. The previous Naidu government had asked for 1400 crore loan from AIIB to take up infrastructure work.

A CMO spokesperson told, “AIIB is a partner in the project along with the World Bank. Since the World Bank withdrew from this particular project, the partner agency too dropped out. This is nothing new.”

Currently, Hyderabad is also the capital of Andhra Pradesh but only till 2024 and till that time AP has to develop its own capital. The state government will now look to other funding agencies to create basic infrastructure.