WB panel to decide in 9 months if probe needed on AP capital

A World Bank panel has said it would decide after nine months whether or not investigation is required into the allegations of possible threat to livelihoods and environment among others with regard to the construction of capital Amaravati.

The Centre and Andhra Pradesh government have requested the World Bank to finance select infrastructure works in Amaravati, the proposed new capital of the state and the Bank is preparing a loan of USD 300 million for the proposed project, to be co-financed by the Asian Infrastructure Investment Bank (AIIB).

Some people residing in the vicinity of Amaravati had written to the World Bank's inspection panel on May 25 2017 alleging harm to their livelihoods, environment, food security and resettlement due to the bank's non-compliance with its environmental and social standards in the preparation of the project.

"Considering the foregoing and taking into account paragraph 5 of the 1999 Clarifications 5, the Panel is recommending a second deferral of its recommendation and will report back to the Board after nine months or when Bank Management authorises the appraisal of the proposed Project, whichever arises earlier."
On September 27, 2017, the panel submitted its Report and Recommendation to the World Bank Board of Executive Directors that recommended "carrying out an investigation into the alleged issues of harm and related potential non-compliance with Bank policies, especially relating to involuntary resettlement."