The World Bank's Board of Executive Directors has approved an $800 million program to support the development of Amaravati City in Andhra Pradesh, India. The Amaravati Integrated Urban Development Program aims to establish the city as a well-managed, climate-resilient growth center that generates jobs and improves living conditions for its residents, with a focus on vulnerable groups.
Auguste Tano Kouame, the World Bank’s Country Director for India, highlighted the significance of this initiative: “With its urban population expected to double to 950 million by 2050, India aims to build sustainable and livable cities as growth hubs, and Amaravati offers an exciting opportunity to model this urban transformation.”
Currently home to about 100,000 people, Amaravati's population is expected to increase significantly over the next decade. A masterplan has been prepared for a 217 sq km area capable of accommodating 3.5 million people by 2050. The first phase of development is being supported by both the World Bank and the Asian Development Bank.
The program will implement an accountable city management structure integrating citizen engagement in planning and development. It also seeks to attract more than $600 million in private sector investment. Task team leaders Balakrishna Menon and Gerald Ollivier emphasized this approach: “Catalyzing investments will be key to making the city work for its residents."
Amaravati's Social and Economic Masterplan estimates potential job creation of 50,000 over five years in sectors such as construction, agro-processing, clean manufacturing, and services. The program includes job-focused skills training for residents—17,000 individuals will be trained directly, including 10,000 women.
The World Bank plans to leverage international expertise in sustainable urban design for infrastructure development in Amaravati. This includes building a road grid, public transport systems, flood-mitigation measures, water/wastewater systems, neighborhood-level community facilities, public spaces, and affordable housing.
The loan requested by India's government has a final maturity period of 29 years with a six-year grace period. Financing will be availed in Japanese Yen.