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Article

18 Dec 2017

Author:
Bank Information Center (USA)

India: World Bank pledges to address impoverishment and coercion concerns before approving mega-city project in Amaravati

"World Bank pledges to address impoverishment and coercion concerns before approving controversial mega-city project in India", 14 December 2017

The World Bank and the new Asian Infrastructure Investment Bank (AIIB) are considering providing a combined $500 million in financing for the Amaravati Sustainable Capital City Development Project, which will affect over 120,000 people living in the area that will become Amaravati, the new capital city for the state of Andhra Pradesh... The [World Bank's] Inspection Panel received a complaint from farmers in the region, who alleged that they and others have experienced harassment and intimidation as a result of their objections to giving up their land for the project ... also raised concerns about impoverishment of disadvantaged residents of the Amaravati ... The Inspection Panel found grounds to further investigate the potential harm that the Amaravati project risks inflicting on people living in the project area. In response, World Bank management committed to hiring experts to complete additional assessment studies prior to the Bank’s approval of financing for the project ... The Inspection Panel will defer its investigation for six months, pending the outcome of those assessments.