World Bank to release another $200 million for Amaravati capital project by December

The World Bank, which has pledged $800 million for the Amaravati Capital Phase-I development, is expected to disburse the second tranche of $200 million by the end of this year, a senior official of the Andhra Pradesh government said on Thursday.

The World Bank and Asian Development Bank (ADB) have each committed to fund $800 million, totalling $1600 million (Rs 13,600 crore), for Amaravati capital city phase-I development. Additionally, the Centre will fund Rs 1400 crore, out of the Rs 15,000 crore committed by it for Phase-I of the development.

As part of its commitment, the World Bank has already released $207 million, of which nearly 50 per cent was spent on various works, S Suresh Kumar, Principal Secretary ( Municipal Administration and Urban Development) said.


"Almost about, I think around Rs 1800 crore or something they have released already. So out of that I think we have, I think only about less than 50 per cent only we have spent till now. I think before December we should be able to claim the next instalment. It will be around a similar amount only," he told PTI.

Once the state government spends 75 per cent of the first tranche of loan ($207 million), it will be able to raise the next bill so that the WB would release the amount.

According to the official, inspections by teams of WB and ADB happen regularly every month in Amaravati.

"So they both will verify the records. They will also have meetings with our teams, CRDA (capital region development authority) officers and then they will also conduct field inspection. They also interact with me every month," he added.

The World Bank has recently in an update on the project expressed satisfaction over the implementation of the works.

"Overall implementation progress is satisfactory. The first disbursement of $207 million Program advance was released in March, 2025. The Bank has confirmed achievement of DLR (Disbursement Linked Result) 7.1 and DLR 1.2 (i) under the programme, reflecting the commencement of construction activities and the establishment of the Environmental and Social Management Unit," the WB said in its update.

The International Bank for Reconstruction and Development (IBRD), part of the World Bank, which provides loans and guarantees, among others, to middle-income and creditworthy low-income countries will be funding $800 million besides ADB.

As per the WB document, the Department of Economic Affairs at the Centre is the borrower while the Andhra Pradesh Capital Regional Development Authority is the implementing agency.