The post US, Nepal Sign Most-awaited USD 500 Million Deal appeared first on Nepali Sansar.
]]>The United States and Nepal have finally signed the most-awaited deal that is expected to help Nepal in its overall development
The US State Department Spokeswoman Heather Nauert made an official announcement in this regard, yesterday.
The US agency Millennium Challenge Corporation (MCC) Acting CEO Jonathan Nash and the Nepali Minister of Finance Gyanendra Bahadur Karki signed the new USD 500 million compact agreement at Washington DC, informed an official release by the US State Department.
“Today, as we sign this USD 500 million MCC compact with Nepal, we are celebrating a new chapter in the US-Nepal partnership,” said Nash.
“As we celebrate the 70th anniversary of US-Nepal relations, I am grateful we can point to this MCC compact as a clear demonstration of our strong partnership,” said the Deputy Secretary of State John J. Sullivan in his address.
Meanwhile, the Nepali minister affirmed that this deal will surely create a lasting impact on Nepal’s sustainable development for generations to come.
According to the release, this is the first compact for the Trump administration and also in South Asia, and includes the largest upfront contribution by any partner country (in MCC’s history).
“A stable and economically-growing Nepal is in the best interest of not just the people of Nepal, but also the region and the United States,” said the Department in its release.
Apart from MCC funding, the Nepali Government will also be adding an additional USD 130 million to this five-year grant.
This deal with MCC is the biggest-ever grant Nepal is receiving from its single development partner country. The agreement aims at achieving infrastructure development in Nepal.
Besides boosting private investment and economic growth to reduce poverty, this deal is expected to enhance regional energy connectivity in South Asia by strengthening Nepali power sector and facilitating related trade with India.
Development of high-voltage power transmission lines across 300 km and road maintenance covering 300 km distance are among the key projects to be taken up under the agreement.
A joint analysis by Nepal and MCC says that the deal will benefit around 23 million population.
According to Baikuntha Aryal, Head of the International Economic Cooperation Coordination Division, the allotted grant will go back to the US if the projects under the agreement are not implemented within 5 years from the starting date.
MCC is an US agency committed to fight global poverty (in select poor countries) and ensure good governance for the overall economic growth.
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]]>The post ADB Fund to Strengthen Nepal in Key Areas appeared first on Nepali Sansar.
]]>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.
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