AIIB Refuses To Fund Amaravati Development Projects

What comes as another blow to the Yuvajana Sramika Rythu Congress Party (YSRCP,) the Asian Infrastructure Investment Bank (AIIB) of China refused to fund the Amaravati Sustainable Infrastructure and Institutional Development Project.

Amaravati is going to be the capital city of Andhra Pradesh (AP,) after the State was bifurcated into the State of Andhra Pradesh and the State of Telangana.

The decision to withdraw financial support was informed through mail, sent by the AIIB to a foreign news agency, which knows the status of the Memorandum of Understanding (MoU) between AP and China with the involvement of the Central Government.

The YSRCP Government is trying to build Amaravati with all kinds of necessary facilities and developed infrastructure. As of now, Amaravati is just a city connecting two cities of AP, Vijayawada and Guntur.

According to sources, the AIIB promised to give a loan of 200 million dollars (Rs. 1,400 crores) for the Infrastructure and Institutional Development Project in Amaravati.

Laurel Ostfield, the Spokesperson of the AIIB, said, “AIIB is no longer considering the Amaravati Sustainable Infrastructure and Institutional Development Project for funding.”

Although the AIIB did not give any reason for taking such a major step, it is suspected the decision came after the World Bank refused to provide funds to AP.

Y.S. Jagan Mohan Reddy, the Chief Minister of AP, is said to be okay with the current infrastructure and is not focussing as much on the development projects in Amaravati.

Y.S. Jagan Mohan Reddy is busy establishing a transparent and corruption free Government and settle the mess created by the former Government, the Telugu Desam Party (TDP.)

He also ordered to probe the lands approved for various construction works during the tenure of the previous N. Chandrababu Naidu led Government.

With the withdrawal of the AIIB, the YSRCP Government will now have to look for other funding agencies to back the Amaravati Sustainable Infrastructure and Institutional Development Project.

Stay tuned for further updates.