AMARAVATI: The World Bank has committed USD 800 million for the development of Amaravati Capital Phase-I and is anticipated to release the second installment of USD 200 million by the end of this year, according to a senior official from the Andhra Pradesh government.
The World Bank and the Asian Development Bank (ADB) are each contributing USD 800 million, totaling USD 1.6 billion (approximately Rs 13,600 crore), for the Phase-I development of Amaravati. In addition, the Centre will contribute Rs 1,400 crore from its overall commitment of Rs 15,000 crore for this phase.
As part of its commitment, the World Bank has already disbursed USD 207 million, nearly half of which has been utilized for various projects. S Suresh Kumar, Principal Secretary for Municipal Administration and Urban Development, stated, “So far, approximately Rs 1,800 crore has been released, and we have spent less than 50% of that. We expect to claim the next installment before December, which will be a similar amount.”
Once the state government utilizes 75% of the first tranche (USD 207 million), it can request the next disbursement from the World Bank.
According to the official, inspections from World Bank and ADB teams occur regularly every month in Amaravati. “They will verify the records, meet with our teams, and conduct field inspections,” he added.
The World Bank recently expressed satisfaction with the project’s implementation progress in an update. “Overall implementation is satisfactory. The first disbursement of USD 207 million was made in March 2025. The Bank confirmed the achievement of DLR (Disbursement Linked Result) 7.1 and DLR 1.2 (i), indicating that construction activities have commenced and the Environmental and Social Management Unit has been established,” stated the update.
The International Bank for Reconstruction and Development (IBRD), part of the World Bank, will also provide USD 800 million, alongside the ADB. According to the World Bank document, the Department of Economic Affairs at the Centre is the borrower, while the Andhra Pradesh Capital Regional Development Authority is responsible for implementation.
