ADB to provide USD 343.9 million loan to Nepal

KATHMANDU: The Asian Development Bank has agreed to provide US Dollar 343.9 million loan to Nepal as development assistance for two projects.

At a programme organised at the Ministry of Finance today, Secretary at the Ministry Rajan Khanal, on behalf of government of Nepal and Country Director of Nepal Resident Mission, Mukhtor Khamudkhanov, on behalf of ADB signed the agreement to this effect.

One of these two projects consists of US Dollar 180 million for South Asia Sub-Regional Economic Cooperation (SASEC) Highway Improvement Project and the other project consists of US Dollar 163.9 million for Disaster Resilience of School Project.

The loan proceeds available under SASEC Highway Improvement Project will support the rehabilitation and widening (about 87 kilometres) of the East-West Highway between Kanchanpur and Kamala in eastern Nepal, Gender Equality and Social Inclusion, as well as strengthening of road safety and GESI capacity of road sector agencies.

The completion of this project will contribute to improving the competitiveness of Nepal's exporting industries by enhancing efficiency of the transport system, strengthening national and regional connectivity, improving safety of the road network, which will eventually promote economic growth.

Likewise, the loan and grant agreement for Disaster Resilience of School Project aims to make disaster resilience of school infrastructure by reconstructing heavily damaged schools, retrofitting of unsafe schools and strengthening the institutional capacity for disaster resilience.

On the occasion, Government of Nepal expressed its sincere appreciation to ADB for the loan and grant assistance and for continued support in Nepal's socio-economic development.