World Bank pulling out of Amaravati capital project

Based on representations from the Working Group on International Financial Institutions (WGonIFIs) and the affected communities, the World Bank is pulling out of the Amaravati capital city project in Andhra Pradesh (AP).

A press release from the WGonIFIs on Thursday said that the World Bank has decided to pull out of the $300 million lending to the upcoming capital of AP.

The World Bank arrived at this decision after a series of representations it received from many people’s movements and civil society organisations over the past years, and a complaint to its accountability mechanism, by the affected communities, said the release.

“With uncertainty hovering above us in respect to our land and livelihood, we had suffered sleepless nights with fear and pain. The struggle has made a mark in our lives that we can never forget. We hope the larger message of the World Bank’s pulling out of this project will be heard by the state and other financiers and will address the concerns of people with honesty and commitment," the release quoted Mallela Sheshagiri Rao from the Capital Region Farmers Federation.

When contacted, officials from the state government and AP Capital Region Development Authority refused to comment on the issue. "We can't confirm this as of now, as a communication on this has not yet come out to us," said a CRDA official when asked about the matter and who did not want to be named.

A senior Telugu Desam Party (TDP) leader, who did not want to be identified, blamed the present YSR Congress Party (YSRCP)-led AP government, headed by chief minister Y. S. Jagan Mohan Reddy, for the development. "Till we were there, it was fine. Jagan came and sabotaged the project. Let YSRCP stop Amaravati's development if they can and run the state with the help of NGOs who worked against the interests of the state," he added.

After bifurcation of the erstwhile state of Andhra Pradesh in 2014, the new states of Telangana and Andhra Pradesh were to share Hyderabad as the joint capital for 10 years. The then chief minister of AP, N. Chandrababu Naidu, announced Amaravati as the proposed capital city to be developed over the coming years. According to the World Bank's website, it has committed an amount of $300 million for the project.