Plan to develop civic bodies with AIIB aid

The State government has chalked out plans to create infrastructure in 42 municipalities with the assistance of the Asian Infrastructure Investment Bank (AIIB), which, in principle, agreed to sanction ₹3,700 crore.

Addressing the media at the Secretariat on Wednesday, Municipal Administration Minister P. Narayana said that the Central government was extending assistance to develop 32 municipalities, which have a population of more than one lakh under AMRUT scheme. To develop another 42 municipalities on a par with these municipalities, the government had been trying to tap AIIB assistance, he said.

The Municipal Administration Department would be first to get Externally Aided Project (EAP).

As per the norms, the Central government would share 90% of the EAP loan and 10% had to be borne by the State government. The AIIB assistance was also an EAP, he said.

Stating that cities like Kadapa, Srikakulam and Vizianagaram were selected under smart cities project, the government proposed to develop other cities too on par with the smart cities.

It was estimated that ₹10,280 crore was needed for creating infrastructure like sewer and drains in other Urban Local Bodies (ULBs).

Of this, the ULBs can share ₹5,266 crore and the remaining would be pooled by the government through means such as annuity and public private partnership (PPP) models.