World Bank extends budgetary support worth Rs 27.65 billion
Kathmandu, May 10
The International Development Association of the World Bank Group has agreed to provide concessional loan of $200 million under the First Programmatic Fiscal and Public Financial Management Development Policy Credit (DPC) in budgetary support and $66 million for Rani Jamara Kulariya irrigation scheme.
The agreed total amount worth $266 million is equivalent to approximately Rs 27.65 billion.
Rajan Khanal, secretary at the Ministry of Finance, and Qimiao Fan, country director of World Bank, signed the agreement today at the Ministry of Finance on behalf of the government of Nepal and the World Bank, respectively.
The loan available under ‘Development Policy Credit’ will be utilised in the sectors of government’s priority through national budgetary system. This policy credit is tailored with prior actions of reform in fiscal and public financial management sector, according to the Finance Ministry. “The agreement remains effective until February-end next year.”
The second agreement signed today is for Rani Jamara Kulariya Irrigation Scheme II, which envisions modernising the irrigation system and strengthening the water user’s associations committees and agricultural production support. In the second phase of modernisation of the project, the credit amount will be utilised to complete the remaining works of the ongoing project. This credit agreement remains effective until the end of 2023.
The World Bank has been extending DPC following the government of Nepal’s reform initiative for the macro-economic and financial sectors.