After getting approval for the Rs 15,000 crore World Bank loan, the works on reviving the Amaravati project—the dream capital city envisioned by Chief Minister N Chandrababu Naidu—are moving at a brisk pace.
London-based architects Norman Foster and Partners is back into action by bagging the contract for designing the new government complex, which forms the central focus of the 217-sqkm capital city.
The AP Capital Region Development Authority (APCRDA) approved the tenders at its meeting chaired by the Chief Minister. During the meeting, the progress of work in the capital city was reviewed.
State Minister for Municipal Administration and Urban Development (MAUD) Ponguru Narayana said that Foster + Partners will provide the architectural designs for five iconic towers, including the buildings for the legislature assembly and the high court complex, along with several secretariat buildings, where the offices of state administration are located.
During the previous tenure of the Chandrababu Naidu government in 2018, Fosters + Partners bagged the tenders for designing the master plan for the government complex. But after the YSR Congress party, led by Y S Jagan Mohan Reddy, came to power in 2019, the Amaravati capital city project was virtually abandoned.
“The previous government abruptly cancelled the tenders for designs bagged by Foster + Partners, forcing the firm to file an arbitration case. As a result, the state government had to pay Rs 9 crore in compensation at the International Arbitration Centre,” the minister said.
Now, that the present Naidu government decided to revive the capital city project, it has initiated the re-tendering process and Foster + Partners took part in the bidding and emerged as the lowest bidder to grab the contract, Narayana said, adding that the orders for the final designs will be issued soon, paving the way for construction to commence in the capital region.
The minister said the release of the Rs 15,000 crore loan approved by the World Bank along with the Asian Development Bank for the Amaravati capital city project will commence soon.
“The agreement for lending will be finalised at the World Bank board meeting to be held on December 17. The first tranche of Rs 3,750 crore will be released to the state government by December-end, by which time all the tenders will be finalised and work will commence,” Narayana said.
The APCRDA meeting also discussed the modalities of obtaining loans from the Housing and Urban Development Corporation (Hudco), a central government undertaking, along with the German-based KfW Development Bank for the capital city project.
While Hudco has already approved in principle to lend Rs 11,000 crore, KfW (German investment and development bank) has come forward to extend loans to the extent of Rs 5,000 crore. “Both Hudco and KfW will form into a consortium and extend the total loan of Rs 16,000 crore,” an APCRDA official said.
The state government authorised APCRDA managing director Katamaneni Bhaskar to take part in the negotiations with the consortium. “The talks will be concluded in another 15-20 days. Once the lending is finalised, Amaravati will have sufficient funds to the extent of Rs 31,000 crore to speed up the capital works, which would be completed within three years,” the official said.