World Bank, AIIB to grant $380 million to Andhra Pradesh power project

The World Bank and the Asian Infrastructure Investment Bank (AIIB) have together agreed to extend a $380 million loan to Andhra Pradesh towards helping the southern state supply reliable, quality and affordable power to its citizens. The World Bank has signed an agreement with the Government of India and the Andhra Pradesh government to extend a $240 million loan, while AIIB has signed a $140 million loan, which is considered the first such project in India to be co-financed by it. The World Bank and AIIB will provide loans in a 60:40 ratio for all the components of the project that is aimed at providing 24×7 power for all. Under the project, Andhra Pradesh will build new transmission and distribution infrastructure, as well as put in place systems to improve the technical efficiency and commercial performance of its power utilities.