Asian Development Bank (ADB) has approved a new Country
Partnership Strategy with Nepal that will anchor the multilateral development
partner assistance to the country over the next five years, focusing mainly on
energy and infrastructure.
ADB will extend long-term public and private sector finance for
capital investment in the areas of transport, energy, water, and other basic
public services like education and skills development; investments that will
ensure poverty reduction, as well as inclusive and sustainable growth, it said.
The funding is expected to be just under $1.5 billion over the
next five years. It expects to raise double this amount from other partners
from both the private and public sectors, if the country increases its spending
capacity.
ADB’s five-year strategy will tackle these critical constraints
through high priority energy sector investments to strengthen domestic energy
security and promote exports through public-private partnerships. Integrating
Nepal with the regional and world economy by expanding its airports and
trans-boundary road networks and modernising customs will also be a focus of
ADB’s assistance.
Improving urban infrastructure like water supply and sanitation in
centres such as Kathmandu is another critical activity. ADB will also help with
irrigation and watershed improvement to boost productivity and commercialisation.
Meanwhile, ADB’s education programme will target schools, higher education, and
vocational and technical skills training.
The new strategy also places significant focus on governance,
financial management, climate change, reforms for private sector investment and
sustainability, institutional development and better project implementation
performance but will have the flexibility to respond to emerging needs in the
business environment during the political transition.
“The government and ADB worked very closely together to define a strategic framework that will allow ADB and others to join up in funding the type of investments that can transform Nepal," said director general of ADB’s South Asia Department Juan Miranda.
“The government and ADB worked very closely together to define a strategic framework that will allow ADB and others to join up in funding the type of investments that can transform Nepal," said director general of ADB’s South Asia Department Juan Miranda.
The strategic work was done in close consultation with key public
agencies and private enterprises, as well as with civil society and other
development partners, he said, adding that the ADB and government now need to
convert it into projects that ensure value for money and deliver development
effectiveness.
Nepal, which will hold Constituent Assembly (CA) elections next month following a period of political transition after the end of armed conflict in 2006, has great potential to scale up hydropower development, tourism, and agriculture, and to benefit from its strategic location between the People’s Republic of China and India.
However, impediments like critical power shortages, poor connectivity and water supply, and weaknesses in its human capital base, investment, and governance are undermining that potential.
“However, the periodic strategy will tackle these critical constraints through high priority energy sector investments to strengthen domestic energy security and promote exports through public-private partnerships,” the ADB added.
The previous country
partnership strategy (2010-2012) had focused on inclusive economic growth,
inclusive social development, governance and capacity building, and climate
change adaptation and environmental sustainability. Nepal, which will hold Constituent Assembly (CA) elections next month following a period of political transition after the end of armed conflict in 2006, has great potential to scale up hydropower development, tourism, and agriculture, and to benefit from its strategic location between the People’s Republic of China and India.
However, impediments like critical power shortages, poor connectivity and water supply, and weaknesses in its human capital base, investment, and governance are undermining that potential.
“However, the periodic strategy will tackle these critical constraints through high priority energy sector investments to strengthen domestic energy security and promote exports through public-private partnerships,” the ADB added.
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