Highway projects mostly at risk in four states
Covid Corollaries: Projects mostly at risk in Maharashtra, UP, Tamil Nadu and AP. May 2020
The move comes in the backdrop of the World Bank and Asian Infrastructure Investment Bank’s (AIIB) decision to withhold funding and withdrawing their support for the Amaravati project. Reportedly, the organisations were going to previously provide funding of $500 millionin total, while the Andhra Pradeshgovernment was going to contribute $200 million.
At a recent AIIB event in Mumbai, Laurel Ostfield, Director-General & Company Spokesperson, AIIB, shared with CW, “We were co-financing this project with the World Bank but are no longer funding it. The decision has been made by our investment committee, and the deliberations remain highly confidential.” According to a statement released by the World Bank, on July 15, the Government of India withdrew its request to the bank for financing the proposed Amaravati Sustainable Infrastructure and Institutional Development Project. The World Bank’s Board of Executive Directors has been informed that the proposed project is no longer under preparation following the government’s decision. However, the World Bank continues to support the state with an over $1 billion programme that covers the health, agriculture, energy and disaster management sectors.
Going by reports, it remains unclear if the formation of the committee is solely related to determining the scope of the Amaravati project. Further clarity is expected only after the submission of the requested report.