September 11, 2017
The Asian Development Bank (ADB) yesterday announced assistance fund to help Nepal in various core areas of development.
While a USD 152 million fund was announced for the country’s Power Transmission and Distribution Efficiency Enhancement Project, an additional USD 21 million was promised for strengthening the country’s national policy and trade facilitation framework.
An official loan agreement in this regard was signed among the Secretary of Ministry of Finance (MoF) Shanta Raj Subedi, Officer-in-Charge of Nepal Resident Mission of ADB Sharad Bhandari and the Nepal Electricity Authority officials, at MoF.
Of the total amount meant for power sector, USD 150 million is the concessional Ordinary Capital Resources (OCR) loan and the other USD 2 million is coming from Japan Fund for Poverty Reduction.
Through the Project, the Government of Nepal aims at expanding transmission lines across various areas of Nepal and boost power distribution efficiency in the northern part of Kathmandu, informed MoF.
Within a deadline of 4.5 years, the Project covers construction of transmission lines, restoration and capacity enhancement of the Valley’s distribution system and upgradation of sub-stations in Laphsiphedi, Barhabise, Chapagaun and Khimti areas.
Meanwhile, USD 21 million was announced as policy-based assistance fund.
According to MoF, this assistance would be used for the implementation of South Asia Sub-Regional Economic Cooperation (SASEC), customs reforms and modernization for the Trade Facilitation Programme. The fund will be passed through a budget mechanism, said an official release.
The policy loan, to be used before August 2021, aims at strengthening national policy, trade facilitation framework, organizational structure of Nepali Customs Department and its procedures.
The newly-formed local bodies should play a vital role in meeting the country’s Sustainable Development Goals…Read more