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AIIB also rejects loan to Amaravati!

AIIB also rejects loan to Amaravati!

Close on the heels of the World Bank, which dropped its plan to lend US $ 300 million to Andhra Pradesh government for the infrastructure development in Amaravati, the new state capital, another international lending agency also dropped the loan proposal.

The Asian Infrastructure Investment Bank (AIIB), which was also one of the lending agencies for the Amaravati capital project, on Tuesday conveyed that it wouldn’t be able to extend loan of US $ 200 million for the capital city project,

In fact, AIIB was a lending partner of the World Bank and had pledged hefty loan for Amaravati.

With the World Bank backing out from the project financing after the Centre wrote to it withdrawing the loan, the AIIB also decided that it would not be proper to go ahead with the lending for the project which was rejected by the World Bank.

Analysts say the dropping of loan proposal by the World Bank would have cascading effect on the other foreign lending agencies, which will think twice before putting in their money in Andhra Pradesh, because of the change of policies.

Following the recent developments, the Jagan government issued a statement saying the World Bank is interested in lending more money for other projects, but it has not mentioned what these projects are and what the quantum of lending would be.

Apparently, the statement was issued to allay the apprehensions of the people towards developmental projects in Amaravati.



Tags: AIIB Amaravathi World Bank