World Bank lends $405m to urban infra projects in India

A $105m loan will finance demonstration projects in sustainable transport across all Indian cities while a $300m loan will focus specifically on urban infrastructure in Andhra Pradesh, the country’s most populous state.

The World Bank has approved two loans totalling $405 million to urban development projects in India.

A $105 million loan will finance the Sustainable Urban Transport Project. The project will finance sustainable transport projects such as clean-air bus systems and bicycle tracks. The projects are meant to serve as examples for other Indian cities to replicate.

Roberto Zagha, the World Bank’s country director for India, said in a statement that the goal of the project is to “spur a shirt toward sustainable urban transport policies” across Indian states and cities.

A separate $300 million loan will finance the Andhra Pradesh Municipal Development Project. That project will back sustainable, high-priority urban infrastructure project that will be selected and implemented by local governments.

Located on the southeast coast of India, Andhra Pradesh is the country’s fifth most populous state. Its urban growth has been accelerating alongside the country’s overall economic growth, making urban services such as transportation and water sanitation a development priority for the state.