The board of directors of the Asian Infrastructure Investment Bank (AIIB) has approved to sanction USD 455 million loan for the rural development of Andhra Pradesh. This new investment will not only benefit the 2 million people living in the state with improved road network connectivity to markets, schools, etc, but will also bring AIIB’s total commitments in India up to USD 1.76 billion.
Around 3,300 rural habitations in Andhra Pradesh will be connected with the help of this project that aims to construct and upgrade more than 6,000 km of all-weather roads. The all-weather connectivity is expected to improve health and education outcomes, while the improvement in transport links will facilitate the delivery of agricultural and farm goods to the markets.
“By integrating the rural population with the rest of the state and markets, the project will extend economic development to the state as a whole. This is AIIB’s third investment to improve rural roads in India because they align well with the sustainable development goals and the Government of India’s priorities,” said DJ Pandian, Vice President and Chief Investment Officer, AIIB.
Supee Teravaninthorn, Director General of Investment Operations, AIIB added, “Our investment will help build the institutional capacity of the implementing agency in Andhra Pradesh by tailoring specific training programmes and workshops to learn best international practices in rural road operations and maintenance.”