World Bank to Release Second Tranche of USD 200 Million for Amaravati Capital Phase-I by Year-End

Amravati, October 23: The World Bank is set to release the second tranche of the USD 200 million funding for the Amaravati Capital City Phase-I development by the end of this year. This development was confirmed by a senior official from the Andhra Pradesh government today.

Overall Commitment of USD 800 Million

The World Bank and Asian Development Bank (ADB) both have pledged USD 800 million for the Amravati project. Combined, both the entities will together contribute USD 1.6 billion (approximately ₹13,600 crore) towards the capital city’s Phase-I infrastructure. Besides, the Indian central government will contribute ₹1,400 crore from its total commitment of ₹15,000 crore for the second phase.

Until now, the World Bank has provided a total of USD 200 million from its proposed funding of USD 800 million. From this, nearly 50% has been used to develop various projects within Amravati, as communicated by Suresh Kumar, Principal Secretary (Municipal Administration and Urban Development). “We have received around Rs 1,800 crore so far and utilized less than 50 per cent. Before December, we expect to claim the next instalment of around the same amount,” he stated.

Second Tranche Subject To 75% Utilisation Of The First Tranche

Although it is inevitable that the World Bank will release the second tranche, the release of the next portion of funding for the Amaravati project depends on the state government using at least 75% of the money already received in the first tranche. Teams from the World Bank and the Asian Development Bank (ADB) are regularly monitoring the progress in Amaravati to ensure rules are followed. “Both teams verify project records, hold review meetings with the CRDA (Capital Region Development Authority), and conduct field inspections every month,” Kumar added.

Satisfactory Implementation

In its latest update, the World Bank said that after monitoring the progress, it can say that the implementation of the funds for the Amravati project has been satisfactory till now. The first tranche of USD 207 million for the Amaravati project was disbursed by the World Bank in March 2025. This was after the project met specific initial milestones related to starting construction and setting up environmental and social management. The loan for this project comes from the International Bank for Reconstruction and Development (IBRD), which is part of the World Bank Group. The Department of Economic Affairs (DEA) under the central government is the official borrower, while the Andhra Pradesh Capital Region Development Authority (CRDA) is the agency responsible for carrying out the project work. This new funding is expected to speed up the development of Amaravati’s infrastructure, which has already faced delays.

The fresh tranche will further accelerate Amaravati’s long-delayed infrastructure and urban development plans under the state’s renewed capital city vision.

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