After World Bank, China-backed bank drops USD 200 million loan for Amaravati

New Delhi: A proposed loan worth USD 200 million for Andhra Pradesh’s new capital – Amaravati – was on Tuesday dropped by China-backed Asian Infrastructure Investment Bank.

A spokesperson told Reuters: “The Asian Infrastructure Investment Bank (AIIB) is no longer considering the Amaravati Sustainable Infrastructure and Institutional Development Project for funding.”

The withdrawal comes less than a week after the World Bank pulled out as well.

Earlier, a World Bank spokesperson told NDTV that the bank's Board of Executive Directors had been informed the proposed project was no longer under preparation following the government's decision.

The World Bank had reportedly sought permission to conduct an independent investigation into complaints of irregularities like forced land acquisition.

The AIIB and the World Bank were together due to provide more than USD 700 million.

Civil society groups like the National Alliance of People's Movements (NAPM) and the Working Group on International Financial Institutions welcomed the withdrawal of the World Bank's proposal, stating that there had been many violations.