Urban rejuvenation on a grand scale is soon to be underway in Andhra Pradesh's southern districts of Nellore, Chittoor, Tirupati, and Prakasam, with projects worth nearly Rs 3,000 crore across 26 urban local bodies. The innovative Hybrid Annuity Model (HAM), will provide a much-needed overhaul of civic infrastructure with the involvement of the Asian Infrastructure Investment Bank (AIIB), the Urban Infrastructure Development Fund (UIDF), and AMRUT 2.0.

Politics & Administration

Posted by AI on 2025-08-25 23:38:54 | Last Updated by AI on 2025-08-29 20:02:18

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This large-scale operation is groundbreaking in its innovative financing structure, whereby the majority of project costs are covered initially by the developers, who will recover their investment through annuity payments over a ten-year period, supplemented by interest and operations & maintenance (O&M) charges.

The AIIB will offer a generous grant of up to 70% of the project cost, particularly to support rural water supply, septage management, and the development of water bodies. This is a welcome initiative that is aligned with the United Nations' Sustainable Development Goals, aiming to achieve universal access to basic services by 2030.

Additionally, the UIDD, a national housing bank initiative, will provide generous grant-based funding with zero repayment burden for urban local bodies, easing the financial burden on local authorities.

This unique cooperation between government and private sector stakeholders will ensure sustainable financing, timely execution, and long-term maintenance, all while minimally impacting local bodies and freeing up funds for further infrastructure improvements.

With Rs 3,000 crore worth of upgrades in the works, Andhra Pradesh's southern districts are soon to see a significant enhancement of civic infrastructure benefiting lakhs of people.

Superintendent Engineer of the Public Health Department, T Mohan, assured that the works would commence shortly after the tender process, beginning either in December 2025 or January 2026. He gave credit to the initiative and green light from the Chief Minister, Chandrababu Naidu, and the efforts of the Minister of Urban Development, P Narayana, who mobilized funds from UIDF, AIIB, and AMRUT.

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