World Bank’s Loan to improve Civic Amenities in State

by HIOC Team
Published: Updated: 305 views

We are witnessing civic work developments in some regions of Greater Hyderabad these days. They are about to increase in the coming days as the World Bank has agreed to sanction a loan to Andhra Pradesh Municipal Development Project.

The purpose of the project is to improve the urban civic amenities such as sewer lines, streetlights, storm-water drains, etc. in cities and towns.

The project to improve civic and infrastructure requirements of urban areas costs around Rs.1,670.55 crore (US $350 million). Out of which the World Bank has approved a loan of Rs.1,431.91 crore (US $ 300 million). Remaining Rs.238.64 crore (US $ 50 million) would be provided by the state government (Rs.92 crore) and urban local bodies of the state (Rs.146 crore).

The project is proposed to launch in February second week and is expected to get completed by December 2015.

Apart from this project, Andhra Pradesh government signed two more agreements with the World Bank to receive loan assistance. They are the AP Roads Project and the Rural Water Supply and Sanitation Project.

The total cost of the roads development project is Rs.3,165 crore. Of this amount, the World Bank will provide Rs.1,568 crore ($320 million). The roads project aims to strengthen and widen the roads with pavements and to construct the highways.

The rural water and sanitation project provides supply of piped water to 20 lakh people in six districts of the state. The total cost of the project is Rs.864 crore and the World Bank agreed to provide Rs.720 crore ($150 million).

Overall, the our state will get a loan of Rs.3,720 crore ($770 million) from World Bank for these three development projects. However except for the portion of the loan given for roads, state should first spend on the projects by itself and later claim reimbursement from the World Bank. We can expect these developments very soon.

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