AP Capital Region Development Authority’s wait for WB, AIIB loans gets longer

Appraisal process is yet to begin; CRDA completes all requisite documentation, World Bank examining it.

VIJAYAWADA: The AP Capital Region Development Authority’s (CRDA) wait to get funding from World Bank and Asian Infrastructure Investment Bank (AIIB) is likely to get longer as the project is still at the pre-appraisal stage.

Even though the officials in March had informed Chief Minister Chandrababu Naidu that a positive response from the international financial institution was expected before the end of May, there seems to be further delay in the whole process.

Officials now expect that the funds will be released by July. Explaining that there is no delay on the part of CRDA, special chief commissioner V Rama Manohara Rao told TNIE, “The appraisal process is yet to begin. From our side, we have finished all the requisite documentation. The World Bank is examining it. We thought it would be cleared by now, but it is still pending. We can’t say the exact time for getting the funds, but we are expecting that the pre-appraisal process would be completed by the end of June. ” He noted that the World Bank is positive about clearing the proposal.

For the record, the CRDA sent a proposal to the World Bank in January 2016, seeking a loan of $1 billion. Later, the authority had revised the loan requirement to $500 million in May 2016. While World Bank has agreed to lend $300 million, AIIB came forward to loan $200 million. The application has been pending since then. Even though the CRDA has maintained that an ‘in-principle’ approval has been given by the World Bank and AIIB to jointly fund $500 million, the application, officials said, still remains at pre-appraisal stage.

However, the authority has almost completed the process related to tapping funds from nationalised banks in the country. A consortium formed by Vijaya Bank, Andhra Bank and Indian Bank will be releasing a loan of `2,060 crore to CRDA soon.

“Andhra Bank and Indian Bank have approved the loan last week, and we are awaiting the confirmation letter. Vijaya Bank is expected to provide the approval by June 15. So, by the end of June, we will be able to draw the funds,” he explained.

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