Friday, November 9, 2012

ADB to support two projects

Asian Development Bank (ADB) has pledged to provide loan to the South Asian governments to complete two ambitious projects.
The ADB has agreed to provide loan to construct the second cross-border transmission line and mega hydro project during recently held meeting of fourth South Asia Sub-regional Economic Cooperation (SASEC), said joint secretary at the Finance Ministry Baikuntha Aryal.
The bank is ready to provide assistance to construct second cross-border transmission line since there is only one transmission line in the country at present, he said, adding that alternative transmission line will help electricity trade between Nepal and other South Asian countries.
The government has to finalise appropriate route to construct cross-border transmission line, he said, adding that Butwal-Gorakhpur route and any other alternative line from far west to India are under consideration.
Similarly, the bank has informally agreed to provide up to $1 billion to construct mega hydro project. However, the government has to hold intensive talks with Bangladesh before initiating mega project.
“The mega project will be targeted to supply electricity in SASEC countries,' he added.
The meeting also raised some crucial issues of regional trade including regional road connectivity and transit and customs facilitation.
Nepal raised the issue of upgradation of the Kakarvitta (Nepal)-Panitanki-Phulbari (India-Banglabandh (Bangladesh) route and construction of dry port at Panitanki of India, the ministry said.
The Kakarvitta-Banglabandh route provides the shortest access of only 44-km to Banglabandh border from Nepal. However, the meeting could not yield any concrete conclusion and visible decision on regional trade issue.
The overall agendas of the meeting were about enhancing connectivity among SACEC countries and upgrading customs points to promote trade among member countries.
SASEC was launched in 2001 with ADB assistance to support and facilitate regional cooperation. Nepal, India, Bangladesh and Bhutan are member countries of SASEC.

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