International Finance Corporation project

Metro India News | AMARAVATI

The Greater Visakhapatnam Municipal Corporation (GVMC) has signed an agreement with the International Finance Corporation (IFC) in the presence of Chief Minister N. Chandrababu Naidu to fund a major urban infrastructure project worth Rs.553 crore.

With this agreement, GVMC has created history as the first municipal corporation in India to secure a direct loan from IFC, a member of the World Bank Group. The project, to be implemented in Madhurawada Zone-2, focuses on building a state-of-the-art underground sewerage network designed to meet the city’s needs for the next three decades.

The Rs. 553-crore initiative will be financed through multiple sources. Of this, Rs. 498 crore will come as loan assistance from IFC, Rs.45.64 crore from the Central Government’s AMRUT 2.0 scheme, and Rs.9.36 crore from GVMC’s own funds. The IFC loan, with a tenure of 15 years, carries an 8.15% floating interest rate. Officials clarified that GVMC will repay the loan from its own revenue streams, underscoring the corporation’s move towards fiscal self-reliance.

The Madhurawada project will include a 100% underground sewerage network, modern pumping and lifting stations, and advanced water treatment facilities with reuse and recycling systems. Designed with a 30-year population growth outlook, the project promises multiple public health and environmental benefits ranging from reduced risk of water-borne diseases and prevention of groundwater contamination to improved flood water management.

Officials estimate that over 2.5 million residents will benefit directly from the project once completed. By adopting such advanced infrastructure, Visakhapatnam will not only address current challenges but also prepare itself for rapid urban growth in the future.

Chief Minister Chandrababu Naidu described the agreement as a transformative step for Visakhapatnam, setting a benchmark for other cities in India to follow. “This project is not only about sewerage and sanitation, it is about preparing Visakhapatnam for the future. By adopting international financing and advanced technology, we are making our cities healthier, more resilient, and environmentally sustainable,” Naidu remarked.