Officials said the decision of the Asian Infrastructure Investment Bank (AIIB) to pull out of the Amaravati Sustainable Infrastructure and Institutional Development Project, days after the World Bank had pulled out of the project, was on expected lines.
“AIIB was not an individual partner and was roped in by World Bank itself. With World Bank dropping out of the project, it was expected that AIIB would also do so,” said a senior government official requesting anonymity.
Of the total $715 million required for the Amaravati project, it was expected that World Bank would pump in $300 million, while Beijing-based AIIB would provide $200 million. The remaining amount was supposed to be funded by the Andhra Pradesh Government.
“Both the World Bank and the AIIB were supposed to fund the same project. As the World Bank decided to withdraw from the project, the AIIB also did the same. AIIB’s decision cannot be seen as a separate and new development. Hence, there is no truth in the propaganda that the financial institutions are shying away from funding projects in the State,” the official said.
The State government has reportedly discussed the latest developments with officials of World Bank and AIIB. The institutions have reportedly assured the government that they would continue to extend their support to the State government in future projects. AIIB has already sanctioned $140 million for the 24x7 power supply project. For rural roads, another $400 million was sanctioned. Funds to the tune of $940 million have been sanctioned in total, the official said.
