Thursday, May 10, 2018

World Bank to provide $266mn concessional loan to Nepal

The International Development Association (IDA) of the World Bank (WB) is providing a concessional loan of $200 million under the first Programmatic Fiscal and Public Financial Management Development Policy Credit (DPC) in budgetary support and $66 million for Rani Jamara Kulariya Irrigation Scheme.
Country Director of the World Bank Qimiao Fan and finance secretary Rajan Khanal signed the agreement for the loan at a programme organised at Finance Ministry today.
The total amount worth $266 million is equivalent to approximately Rs 27.65 billion.
The loan proceeds available under ‘Development Policy Credit’ will be utilised in the sector of government’s priority through national budgetary system. This policy credit is tailored with prior actions of reform in fiscal and public financial management sector. The agreement remains effective until February 28, 2019.
The second agreement signed today is for Rani Jamara Kulariya Irrigation Scheme II which envisions modernising irrigation system and strengthening the water user’s associations committees and agricultural production support, according to the Finance Ministry press note.
In the second phase of modernisation of the project, the credit will be utilised to complete the remaining works of ongoing project. This credit agreement remains effective until December 31, 2023.
The World Bank has been extending DPC following Nepal’s reform initiative for the macro-economic and financial sectors.

No comments: