Thursday, July 11, 2013

World Bank assistance for trade facilitation

The World Bank (WB) Group has agreed to provide $99 million, including grant and loan, to Nepal to facilitate trade and promote export.
Nepal-India Regional Trade and Transport Project (NIRTTP) – that is expected to boost the foreign trade – will receive $27 million grant and $72 million loan, respectively, according to an agreement signed here today by World Bank country manager for Nepal Tahseen Sayed, and joint-secretary and head of Foreign Aid Coordination Department at Finance Ministry Madhu Kumar Marasini, on behalf of their respective institutions.
The project aimed at decreasing transport time and logistics costs between Nepal and India will also facilitate transit trade along Kathmandu-Kolkata corridor to reduce key infrastructure bottlenecks and support modernisation of border management, according to the Finance Ministry.
The project covers modernisation of transport and transit arrangements between Nepal and India, strengthening trade related institutional capacity and improving selected trade related infrastructure, it added.
“The project, which is the first of its kind in South Asia, will be instrumental in introducing a modern and effective transit regime and enhancing efficiency in trade system as well as simplifying movement of goods between the Kolkata port and Kathmandu,” Sayed said after signing the agreement."The project would create an environment to expand regional trade enhancing transport, trade and transit facilities, which would be most beneficial for Nepal," said Marasini, on the occasion.

The project also covers upgradation and expansion of Narayanghat-Mugling road section to Asian Highway Standard, improvement of the Birgunj-Kathmandu corridor, construction of a Container Freight Station or an Inland Clearance Depot (ICD) in the Kathmandu Valley, enhancing capability of trade related laboratories and facilitation of arrangements for mutual recognition of quality certificates.
According to Development Cooperation Report (DCR) 2013,
World Bank with $269.60 million was the largest multilateral donor in the fiscal year 2011-12.



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