KATHMANDU, DECEMBER 23

The Nepal government and Asian Development Bank (ADB) signed $150 million concessional loan agreement to finance South Asia Sub regional Cooperation (SASEC) Airport Capacity Enhancement Project, and $40 million concessional loan and $10 million grant for the implementation of Priority River Basins Flood Risk Management Project.

Shreekrishna Nepal, joint secretary at the Ministry of Finance signed the agreement on behalf of the Nepal government whereas Rudi Louis Hendrikus Van Dael, officer- in-charge, Nepal Resident Mission, ADB signed the agreement on behalf of ADB.

As per the agreement, ADB will provide concessional loan worth $150 million for the said Airport Capacity Enhancement Project.

This project will enhance the airport capacity by constructing parallel taxiway extension, hanger apron, next phase work design of Tribhuvan International Airport and construction of second terminal at Gautam Buddha Airport.

Likewise, ADB will provide concessional loan worth $40 million and $10 million grant for the said Priority River Basins Flood Risk Management Project .The project will contribute to improve flood protection infrastructure, enhanced flood forecasting and response system and improve flood prevention and preparedness capacity.

Addressing the signing program held at the Ministry of Finance on Tuesday, Joint Secretary Nepal said, “The implementation of these programmes will significantly contribute to the national economy by increasing the existing capacity of Nepal’s airspace and flood protection infrastructure.”

Similarly, on his concurrent remarks ADB Officerin-Charge, Rudi reflected on the necessity of this concessional loan saying, “Both projects can contribute to delivering important results to the people of Nepal. The flood risk management project will improve disaster resilience and make lives safe.

The airport project will contribute to improve connectivity, leading to economic growth, once the pandemic is stabilised.”

The loan agreement is said to be effective after 90 days of the signing of the agreement, as per a release.