Kathmandu, September 12:

Kunio Senga, Director General for South Asia at the Asian Development Bank (ADB), today expressed cautious optimism over Nepal’s medium term prospects for economic development, based on the government’s continued commitment to the reform process.

However, he expressed concern over the security situation, noting that the currently uncertain environment could affect implementation of development activities. Senga was at the end of his five-day official visit to Nepal.

Given the significant risks in the run up to the Constituent Assembly elections, he urged the government to try its utmost to maintain a conducive environment for effective delivery of development assistance. He also reiterated ADB’s commitment to assist Nepal’s development but underscored the point that effective and safe implementation of development projects depend on ground realities.

Senga appreciated the progress made on the preparation of the Rural Reconstruction and Rehabilitation Sector Development Programme, which aims to promote rural reconstruction and rehabilitation, economic growth, and poverty reduction, particularly in remote areas, through policy and institutional reforms and rural infrastructure investment.

He also discussed the future of Melamchi Water Supply Project with the government. “We had a productive discussion with the ministry of physical planning and works on the possible way forward with emphasis on strengthening capacity of the newly created institutions to ensure efficiency and sustainability of the project in the long term,” he said. He stressed on the need for timely completion of ongoing reforms.

He met with the finance minister Dr Ram Sharan Mahat, minister for physical planning and works Hisila Yami, Dr Jagadish Chandra Pokhrel, vice-chairman and members of the National Planning Commission, chief secretary, other senior government officials, development partners, and members of civil society during his visit.

During his meetings with development partners, Senga discussed the current situation in Nepal and how best development partners can work together for Nepal’s development.

He highlighted the importance of closer collaboration among development partners in helping the government create conducive environment for development.