World Bank which agreed in principal to fund a part of Amaravati construction had put several riders to the loan now. The bank has come up with various queries and sought clarifications about how the cash-strapped AP government will repay the hefty loan and by what time would the permanent government complex be ready.
The Bank also asked about the financial viability of the capital city project and the solubility of the Andhra Pradesh State Capital Region Development Authority (APCRDA), which will oversee construction of Amaravati. The state government is expecting a loan of 4000 Crore from the World Bank.
The loan was kept pending since the World Bank was not satisfied with various reports prepared by the consultancy firm, McKinsey, on the construction of Amaravati. Since the designs for the Permanent Government Complex are not confirmed yet, the World Bank has come up with several doubts on the project.
