World Bank and Asian Infrastructure Investment Bank (AIIB) Pull out of Amaravati Capital City Project! Two multilateral banks pulling out of a project – that’s a first in India!
Amaravati Capital City project, plagued with socio-economic damages, land transactions affecting thousands of agricultural, coastal, and pastoral labourers, tenants, landless families, dalits who have undergone severe pressure and fear due to the land acquisition and displacement process, financial non-viability, massive land-grabbing of the fertile land in the name of voluntary land-pooling were raised time and again with the government and both AIIB and World Bank by affected communities, people’s movements and civil society organisations.
The violations are too glaring that nobody could hide or ignore – not even the financial institutions.
A victory of people’s collective campaign at different levels, despite intimidation and threats from the administration, this stands as a symbol of steadfastness of communities, solidarity among different CSOs and multiple levels of interventions.
The proposed capital city project of Amaravati, the new capital of State of Andhra Pradesh covers an area of 217.23 sq. km with the seed capital in an area of 16.94 sq. km while the entire capital region pans over a spread of 8352.69 sq. km across both Krishna and Guntur districts of the State of Andhra Pradesh. The city specifically is planned to be built in Guntur district on the banks of the Krishna River, which is hailed as the rice-bowl of the State with 120 multi-crops irrigated on the floodplains. The area sited for the city presently has a population of 1.03 lakh while that of the entire capital region would be 5.8 million.
Global Financiers: The project is under consideration to be financed by both World Bank and AIIB. The total project cost is envisioned to be $715 million, of which the total Bank support is $300 million through IBRD investment project financing. The preparatory work for the project is being financed through a Bank-executed trust fund’ TFOA2879 – Support to Andhra Pradesh Sustainable Capital City Development’ with a grant amount of $0.17million. There’s a 12.2% disbursement from this trust fund as of the receipt of the Request. The Government of Andhra Pradesh (GoAP) as the Borrower is providing US$ 215 million, and the Asian Infrastructure Investment Bank (AIIB) is considering financing US$200 million.
Problems posed: This project has garnered much attention in the country owing to the massive land acquisition and ‘voluntary land pooling’ scheme [LPS]. The farmers allege harm to their livelihoods, environment, and food security, along with lack of consultation and participation of affected people. Complaints and requests for inspection were sent to the Inspection Panel (accountability mechanism of World Bank) during December 2016 and May 2017, and registration of the complaint was notified to the public (IPN-Request No. RQ 17/04). Further investigation is demanded by the people and complainants into Bank’s non-compliance with its operating policies [OP/BP 4.01 – Environmental Assessment, OP/BP 4.04 – Natural Habitats, OP/BP 4.11 – Physical Cultural Resources, OP/BP 4.12 – Involuntary Resettlement, OP/BP 4.36 – Forests].
For immediate release Inspection Panel’s Report on Amaravati Project only Validates the Issues Raised by CSOs July 26, 2019: Confirming the concerns raised by the communities and civil society organisations, Government of India withdrew...
Press Release | July 23, 2019 After the World Bank, Asian Infrastructure Investment Bank Pulls Out of Amaravati Capital City Project New Delhi: The China-led Asian Infrastructure Investment Bank (AIIB) pulled out of Amaravati Capital...
विश्व बैंक ने अमरावती कैपिटल सिटी परियोजना से हाथ खींचा, लोगों को मिली बड़ी सफ़लता प्रेस विज्ञप्ति | 20 जुलाई, 2019 एक बड़े ऐतिहासिक कदम, जिसका प्रभाव कई स्तर पर देखने को मिलेगा, उठाते...
July 18, 2019: In a significant move, which will have repercussions at multiple levels, yesterday the World Bank has decided to pull out of the $300 million lending to the Amaravati Capital City project...
This brief report aims to throw light on the critical lapses and breaches which have been committed during the design, pre-appraisal and Strategic Environmental and Social Assessment – Environment and Social Management Framework (SESA-ESMF)...
In the last four years since Amaravati was conceived, the government has successfully aggregated 34,000 acres of land from almost 28,000 farmers. According to agriculture experts, the area between Guntur and Vijayawada, which been...
Meera Sanghamira of the NAPM speaks on the various violations being done to implement the Amaravati Capital City Project. People’s response to it including approaching the World Bank’s Inspection Panel, which visited and submitted...
Public Statement | June 1, 2018 Land Acquisition Amendment Bill of Andhra Pradesh is Anti People, We Demand Withdrawal of it A Joint Statement We the people’s movements and Civil Society Organisations from across...
For immediate release Civil Society Organisations approach World Bank’s Board on the irregularities in Amaravati Capital City Project November 28, 2017, New Delhi: Social Activist Medha Patkar, Former Power Secretary Dr. EAS Sarma, Goldman Prize...
November 27, 2017 To The Executive Directors, The World Bank Washington DC Dear Executive Directors, We, the representatives of people’s movements, civil society organisations, and concerned citizens, write to the Board of...
After bifurcation of the erstwhile Indian state of Andhra Pradesh in June 2014, both the new states of Telangana and Andhra Pradesh are sharing the Hyderabad as capital for 10 years. Chief Minister of...