The Asian Infrastructure Investment Bank (AIIB) is ready to give a loan of $3 billion to Andhra Pradesh for taking up development projects, the state government said.
AIIB representatives conveyed this to Chief Minister Y.S. Jagan Mohan Reddy during a meeting here on Thursday.
The loan would be utilised for the construction of ports, airports, roads, water grid projects and irrigation projects.
According to an official release, the Chief Minister briefed the AIIB representatives about the welfare programmes being taken up by his government. The bank officials praised the initiatives taken up by the government for the Nadu-Nedu programme for the development of government schools and hospitals.
The AIIB representatives said that they were glad to hear about the welfare programmes for the people instead of privatisation after 20 years. They said the proposal of the present loan would be in addition to the loan already given to the state.
The Chief Minister told the AIIB officials that the government intends to construct ports in Bhavanapadu in Srikakulam district, Machilipatnam in Krishna district and Ramayapatnam in Prakasam district.
The bank officials said that they are ready to finance the construction of one port and added that they are ready to finance the construction of roads, water grid, airports and irrigation projects.
In June last year, the state government had faced a setback after the World Bank dropped funds worth 300 million USD earmarked for the Amaravati project.
This, after the Government of India had withdrawn its request to the World Bank for financing the proposed Amaravati Sustainable Infrastructure and Institutional Development Project.
According to the ruling party YSRCP, this was a result of alleged irregularities in the project.