After pulling out of Amaravati, AIIB promises support to other projects
VIJAYAWADA: The Asian Infrastructure Investment Bank (AIIB), which pulled out of co-financing Amaravati project, has conveyed to the State government that it will continue to partner with AP in other sectors. A day after AIIB dropped its offer to finance the Amaravati Sustainable Infrastructure and Institutional Development Project, the Chief Minister’s Office reportedly contacted the bank officials and they assured the banks support to other priority projects in the State.
The AIIB had committed to co-finance $200 million (Rs 1,400 crore) along with the World Bank, which was to provide $300 million (Rs 2,100 crore) for Amaravati project.“Officials of Beijing-based AIIB assured us that they will continue its support to AP. Andhra Pradesh is the biggest recipient of AIIB assistance in the country,’’ a CMO official said. Asked about the form of AIIB support, the senior official said, “We will propose projects as per the Chief Minister’s priorities on health and education. We need huge infrastructure investment for buildings for schools and hospitals.’’ The CMO informed the same to the AIIB and the bank asked the government to come up with proposals and assured its support. The official added that they have also sought AIIB’s support in sanitation and water supply in urban areas.
“AP has only 28 per cent population living in urban areas. Around 48-50 per cent of the population will be in urban areas by 2030. Se need to improve urban services,’’ the official explained. The CMO said the State had asked the AIIB delegation to visit the State and the AIIB vice-president might come.The officials also rubbished the propaganda that funds (from international banks) were not coming to the State. “Instead of the $200 mn funding for Amaravati project, the bank will fund the amount to other projects,’’ the official claimed.
It may be recalled that the World Bank had initially pulled out of the capital project. As AIIB was co-financing the project, it also dropped its offer to fund the project. Both World Bank and AIIB will, however, extend funding to the tune of $500 mn to the State. “The Amaravati project has been dropped now with both the banks going out of the project,’’ the official said.
Officials said that AIIB was already giving financial assistance of $140 mn along with World Bank for a project to modernise Discoms. Apart from this, AIIB was also giving loan assistance of $400 mn each for rural roads and urban sanitation. “The $940 mn projects are already approved,’’ the official asserted.
The CMO official also said the AIIB officials have also expressed concern over the expenditure, which was disappointing so far. “The previous government did not pay adequate attention to this,’’ he contended.
Officials added that the allegations of irregularities in capital region works would be investigated and action taken against those responsible, including the then ministers and officials. The sub-committee, which is looking into irregularities and allegations of corruption, will also look into the allegations. Asked whether responsibility will be fixed for the misuse of funds, the official said that contractors, officials and politicians who are responsible for this will face action.
