ADB approves $788.8 million loan to India for developing Amaravati as Smart & Green City

Amaravati, India (Urban Transport News): The Asian Development Bank (ADB) has approved a $788.8 million results-based loan to the state of Andhra Pradesh to support the development of Amaravati as a green and smart capital city. The loan, provided in Japanese yen, amounts to ¥121.97 billion and will help transform Amaravati into a world-class urban hub with cutting-edge infrastructure.

The Amaravati Inclusive and Sustainable Capital City Development Program aims to drive economic growth, enhance job opportunities, and improve the living standards of residents. The loan will focus on developing key infrastructure, including essential trunk infrastructure, a government complex, and neighborhood amenities that will benefit local farmers under the land pooling schemes. The program will be implemented in collaboration with other multilateral development banks (MDBs) to ensure the timely and high-quality delivery of services and infrastructure.

According to Mio Oka, ADB’s Country Director for India, the collaboration with other MDBs will bring in global expertise to create a sustainable and vibrant capital city. “Our efforts will focus on climate-resilient urban planning, effective governance, and social inclusion, ensuring Amaravati becomes a model for not only greenfield cities but also the transformation of peri-urban areas,” said Oka.

The program will improve access to essential infrastructure, including water and sanitation services, green spaces, and low-carbon transport options. It will also enhance drainage systems to mitigate flood risks. With an emphasis on inclusivity, the program is expected to generate private investment and create job opportunities, particularly benefiting women and youth.

In addition, the ADB’s support will strengthen urban institutions, promote public-private partnerships, and foster sustainable asset management. The program will also focus on addressing climate change and disaster risks, promoting gender equality, and integrating smart technologies to improve urban planning and service delivery.

The ADB’s commitment to a prosperous, inclusive, and sustainable Asia and the Pacific continues, as it works toward eliminating extreme poverty and building resilient, future-ready cities across the region.