The Beijing backed Asian Infrastructure Investment Bank (AIIB) has dropped plans to Finance a new capital for the Indian State of Andhra Pradesh, after the World Bank pulled its support on Friday.
The loan was in fact jointly covered by the World Bank ($300 million) and the AIIB ($200 million). The websites of both World Bank and AIIB confirmed this.
The Construction of the city, known as Amaravati, was the brainchild of the State’s Former Chief Minister N. Chandrababu Naidu, who lost power in elections in May.
“AIIB is no longer considering the Amaravati Sustainable Infrastructure and Institutional Development Project for funding,” spokeswoman Laurel Ostfield told Reuters in an emailed Statement.