Kathmandu, September 3:

The Saudi Fund For Development has agreed to provide a loan of Saudi Riyal 56.25 million (Rs 98.55 crore) to Nepal for the full implementation of the Bagmati Irrigation Project.

An agreement to this effect was signed between the government of Nepal and the Saudi Fund for Development at the Ministry of Finance in Singhdurbar today. The loan will be used for the completion of the infrastructure and Common Area Development to the benefit of targeted agriculture lands of Sarlahi and Rautahat districts. The loan amount will cover construction of secondary canals, internal drainages, common area protection works and rural link roads for about 16,600 hectares and also the rehabilitation of the existing Bagmati Irrigation System.

The Saudi Fund for Development had provided Saudi Riyal 144.6 million in 1987 and 1995 for the implementation of the Bagmati Irrigation Project in the districts.

Secretary at the Ministry of Finance, Bidyadhar Mallik, and vice-chairman of the Saudi Fund for Development, Yousef Ibrahim Al-Bassam signed the agreement.