EIB to help improve economic conditions‚ energy supply

HIMALAYAN NEWS SERVICE

KATHMANDU: The EIB — European Union’s long-term financing institution — and the government signed a Framework Agreement under which the Bank may start financing capital investments in Nepal.

“The Framework Agreement is key in the very significant moment in Nepal’s recent history,” EIB vice president with special responsibility for the bank’s activities in Asia, Magdalena Álvarez Arza, said during the signing ceremony. “I am confident that the first milestone in the cooperation between Nepal and the EIB will soon result into the implementation of projects, especially in the area of renewable energy and energy infrastructure,” she said, adding that it will help Nepal develop further its huge hydropower potential and improve economic prosperity and quality of life for the people.

Hailing the pact, ambassador and head of the EU delegation to Nepal Dr Alexander Spachis expressed optimism that it would open up additional avenues for Nepal to acquire funds for further pursuing development initiatives on important social, economic and development sectors. He also underlined that the agreement was in line with the EU’s recent initiatives designed to assist developing countries in achieving inclusive economic growth, including providing access

to sustainable energy to their populations.

The agreement was signed by the EIB vice president with special responsibility for the Bank’s activities in Asia, Magdalena Álvarez Arza and finance secretary Krishna Hari Baskota on

behalf of their respective institutions.

Similarly, Baskota opined that the agreement will provide Nepal a basis for sufficient financing at low cost and create conducive environment for foreign investment in different projects like infrastructure development, energy, and sustainable environment. “We are confident that the venture will support Nepal to achieve sustainable and inclusive economic development,” he said, adding that the collaboration will grow further in the days to come.

After the signing ceremony, EIB vice-president called on Prime Minister Dr Baburam Bhattarai at his office in Singhadurbar, where they discussed the future role of the bank in supporting sustainable development.

The EIB is the long-term lending institution of the EU owned by its member states. It makes a long-term finance available for sound investment to contribute towards EU policy goals. Outside the EU, the bank supports projects that contribute to economic development in countries that have signed association or cooperation agreements with the EU or its member states. “Of Euro61 billion lent in 2011, some Euro7 billion went for projects outside the EU,” according to the EIB that finances projects in countries which have concluded cooperation agreements with the European Union.

In Asia, the bank has so far signed Framework Agreements with Bangladesh, China, India, Indonesia, Laos, Maldives, Mongolia, Pakistan, the Philippines, Sri Lanka, Thailand, Vietnam and Yemen.