Nepal | August 09, 2020

ADB to provide $100 million for Rural Connectivity Improvement Project

Himalayan News Service
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Kathmandu, February 12

Asian Development Bank (ADB) has agreed to provide $100 million (approximately Rs 10 billion) for Rural Connectivity Improvement Project.

An agreement to this effect was signed and exchanged at the Ministry of Finance today, as per a media release.

Shankar Prasad Adhikari, secretary at the Ministry of Finance, and Mukhtor Khamudkhanov, country director of Nepal Resident Mission at ADB, signed the loan agreement on behalf of the Nepal government and the ADB, respectively.

This project will upgrade 388 km of rural roads to all-weather standards, serving agriculture sector and bringing access to 7.5 million people in 16 districts. This project is in line with the goal of the government’s Agriculture Development Strategy signed in 2015 to encourage commercial agriculture, increase productivity, create new rural jobs and increase prosperity.

The objective of this project is to increase transport efficiency on project area. This project shall 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.

Similarly, ADB has also agreed to provide $1 million (approximately Rs 100 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 January 31, 2023, the release adds.


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