Government and World Bank sign $150 million agreement to support resilient recovery

The government and the World Bank today signed a $150 million (Rs 17.78 billion) concessional loan agreement to support Nepal’s resilient recovery from the Covid-19 pandemic, protect the most vulnerable, and support sustainable growth.

The agreement was signed by the finance secretary Sishir Kumar Dhungana on behalf of the government and the World Bank country director for Maldives, Nepal, and Sri Lanka Faris Hadad-Zervos, on behalf of the multilateral development partner.

"The project will help Nepal build back better and greener through reforms to the tax and customs systems, public investment management, environmental regulations and debt management,” finance secretary Dhungana said, adding that the proposed budgetary support will be utilised in the physical infrastructural projects and economic recovery sectors as per the requirement and priorities of the government.

The first Fiscal Policy for Growth, Recovery and Resilience Development Policy Credit further supports reforms aimed at protecting the most vulnerable and supporting business growth, according to a press note issued by the World Bank. Reforms in this area focus on social protection, the intergovernmental framework, and supporting access to capital for firms, it reads, adding that it will help speed up the ongoing large development projects to create jobs, accelerate markets, and support green recovery. "The financing will be provided to the government through budgetary support."

"The project will help the country achieve sustained growth during and after the Covid-19 pandemic that is inclusive, job-creating and environmentally sustainable,” World Bank country director for Maldives, Nepal, and Sri Lanka Faris Hadad-Zervos said, adding that the World Bank is committed to support the government’s pandemic response to protect lives and stimulate economic recovery in Nepal.