ADB okays $30m loan for education sector

Kathmandu, December 11:

The Asian Development Bank (ADB) today announced to provide $30 million loan from its concessional Asian Development Fund (ADF) for improvement of the primary and secondary education system in the country.

The loan will be given for the period of two and half years from January 2007 to July 2009, a press release issued here today by ADB said.

The loan carries a 24-year term, including a grace period of 8 years, with an annual interest charge of 1 per cent during the grace period and 1.5 per cent thereafter.

The programme supports the Education for All program (EFA) for 2004-2009m which still falls short of $55 million.

The $2 million grant from the ADF is expected to facilitate planning and a smooth transition into the 12-year school system by strengthening policies and programmes, and helping realign governance, management and financing structures appropriate for the 12-year school system.“Through this program, ADB will support both EFA and the preparation and transition to the 1-12 year school system,” says Ayako Inagaki, an ADB Senior Education Specialist in a press release.

“The reforms and restructuring should result in a more equitable, inclusive, effective, and holistic education system.”