ADB stresses on urgent need to address infrastructure deficits

The Asian Development Bank (ADB) has emphasised on the need to urgently address infrastructure deficits — particularly of power, transport, and water — by forming an enabling policy environment, building capacities, and promoting private sector investment.

Nepal’s capital and bond markets have to be developed to attract and promote private investments, said ADB vice president for Finance and Administration Thierry de Longuemar speaking at the end of his five-day visit to Nepal.

Expressing ADB’s commitment to continue supporting Nepal’s development efforts, de Longuemar discussed the ongoing Capital Markets and Infrastructure Capacity Support Project supported by ADB to develop Nepal’s bond market and create an enabling environment for public private partnership in infrastructure development.

He also discussed the opportunity for ADB to issue local currency bonds that will help provide long-term financing for private infrastructure investment and also help develop the country’s bond markets.

During his visit to Nepal, he met finance minister Barshaman Pun, central bank governor Dr Yubaraj Khatiwada, chief secretary Leela Mani Poudyal, finance secretary Shanta Raj Subedi and other senior government officials and discussed about ADB operations in the country.

"Nepal has the potential to achieve stronger economic growth rate, given its natural resource endowments, human capital and strategic geographic location," he said, adding that achieving stronger growth is also imperative for reducing poverty, and establishing lasting peace and stability.

"It will require substantial increase in investments by both the public and private sectors,” de Longuemar added.

The ADB vice president also visited ADB-assisted Kali Gandaki ‘A’ Hydroelectric Plant and observed its latest operation of hydropower generation and mitigation of social and environmental impacts and discussed the prospect for further hydropower development in the country.

Thierry de Longuemar had assumed his position in November 2011 and oversees the operations of the Office of the Secretary, Office of the General Counsel, Budget, Personnel and Management Systems Department, Office of Administrative Services, Controller’s Department and the Treasury Department.

With over 26 years of experience in both multilateral financial institutions and private banking, de Longuemar is responsible for the overall efficiency and effectiveness of ADB’s financial and administrative management.

ADB has worked in partnership with the Nepali government since the country joined ADB as a founding member in 1966. As of 31 September 2012, Nepal has received 158 loans/grants — 122 sovereign Asian Development Fund (ADF) loans ($2,775.88 million), five non-sovereign loans ($58.64 million), and 32 ADF grants ($763.25 million), totalling $3,597.77 million.