Government, ADB sign $200 million concessional loan agreement

 The government and Asian Development Bank (ADB) signed $150 million concessional loan agreement to finance South Asia Sub regional Cooperation (SASEC) Airport Capacity Enhancement Project and $40 million concessional loan and $10 million grant for the implementation of Priority River Basins Flood Risk Management Project.

Joint secretary at the Finance Ministry Shreekrishna Nepal signed the agreement on behalf of the government whereas officer- in-charge of Nepal Resident Mission at the ADB Rudi Louis Hendrikus Van Dael signed the agreement on behalf of ADB.

According to the agreement, ADB will provide concessional loan worth $150 million for the said Airport Capacity Enhancement Project. The project will enhance the airport capacity by constructing Parallel Taxiway Extension, Hanger Apron, Next Phase work Design of TIA and Construction of second terminal building at Gautam Buddha Airport (GBA), a press note issued by the ADB reads, adding that ADB will provide concessional loan worth $40 million and $10 million grant for said Priority River Basins Flood Risk Management Project. “The project will contribute to improve flood protection infrastructure, enhanced flood forecasting and response system and improve flood prevention and preparedness capacity.”

Addressing the signing ceremony, held in the Finance Ministry, joint secretary Nepal said that the implementation of these programmes will significantly contribute to the national economy by increasing the existing capacity of Nepal's airspace and flood protection infrastructure. He appreciated ADB for its continued support to Nepal’s infrastructure development, which has been crucial for the socio-economic development of Nepal.

He also thanked ADB for its valuable support in the socio-economic development of Nepal and wished the bank to continue its similar support going forward.

Likewise, on his concurrent remarks ADB officer-in-charge Rudi reflected on the necessity of this concessional loan saying, “Both projects can contribute to delivering important results to the people of Nepal.”

The flood risk management project will improve disaster resilience and make lives safe, he said, adding that the airport project will contribute to improve connectivity, leading to economic growth, once the pandemic is stabilized..

The loan agreement is said to be effective after 90 days of the signing of this agreement.