ADB provides US$ 100 million loan assistance to Nepal «

ADB provides US$ 100 million loan assistance to Nepal

Feb 12, Asian Development Bank (ADB) is providing US$ 100 million to Nepal for the Rural Connectivity Improvement Project.

An agreement to this effect was signed and exchanged at the Ministry of Finance, Kathmandu, on Monday between Shankar Prasad Adhikari, Secretary at the Ministry of Finance and Mukhtor Khamudkhanov, Country Director, Nepal Resident Mission of ADB on the behalf of the government of Nepal and the ADB respectively.The project will upgrade 388-km rural roads to all-weather standards, serving the agriculture sector and bring access to 7.5 million people in 16 districts, according to the ADB press note that reads, “The project is in line with the goal of the government’s Agriculture Development Strategy signed in 2015 of encouraging commercial agriculture, increasing productivity, creating new rural jobs and increasing prosperity.”

The press release issued by the Asian Development Bank (ADB) Nepal also reads that the project aims at increasing transport efficiency in project areas. “It is expected to improve the rural road conditions between the selected rural communities, agriculture production areas and enhance capacity of rural infrastructure agency and road users in project areas.”

The ADB, conceived in the early 1960s as a financial institution, assists its members and partners by providing loans, technical assistance, grants and equity investments to promote social and economic development.Similarly, ADB has also agreed to provide US$ 1 million to restructure the Department of Local Infrastructure Development and Agricultural Roads into a state-of-the-art rural road agency. The project is expected to be completed by 31 January 2023.