NRA gets finance ministry’s go-ahead to spend Rs 84bn

Kathmandu, July 23

The National Reconstruction Authority (NRA) has been given the permission to spend Rs 84 billion out of the total Rs 142 billion allocated for the reconstruction of earthquake ravaged structures this fiscal, 2016-17. The Ministry of Finance (MoF) has extended the authority to NRA to accelerate the reconstruction drive.

The MoF has planned to mobilise a large chunk of foreign aid in the budget extended to the NRA. Around 85 per cent of Rs 84 billion that has been extended to the NRA will be mobilised using the foreign aid.

Development partners have pledged loan and cash grant for the country’s reconstruction drive. Neighbouring India and China have made commitments of Rs 12.50 billion and Rs 500 million as grant assistance. Similarly, European Union has pledged grant amount worth Rs 11 billion, Japan International Cooperation Agency (JICA) has promised Rs 1.83 billion, German KFW Development Bank has pledged Rs three billion, South Korea has pledged Rs 850 million and Asian Development Bank (ADB) has committed to extend Rs 980 million.

According to NRA, Rs 1.50 billion will be financed from pool fund for reconstruction.

Likewise, the government will mobilise Rs 13.26 billion from the International Development Association-World Bank, Rs 9.56 billion from ADB, Rs 11.67 billion from JICA and Rs five billion from International Monetary Fund as concessional loan assistance.

The government will mobilise Rs 12.29 billion for reconstruction from its own resources.

The reconstruction programmes proposed by the concerned ministries to the Line Ministry Budget Information System (LMBIS) will get the budget after the executive committee of the NRA endorses the programmes. The programmes are designed and selected based on the Post Disaster Needs Assessment and Post Disaster Recovery Framework (PDRF) — a five-year plan for reconstruction and rehabilitation.