First Business News Portal in English from Nepal
KATHMANDU: In an encouraging development for the Upper Arun Hydroelectric Project, the World Bank has shown a positive stance towards granting a substantial loan of 300 billion Nepali Rupees. The Ministry of Finance has confirmed that the World Bank has consented to Nepal’s proposal in this regard.
The initiative to bolster the politically significant Upper Arun Hydroelectric Project and increase its private sector involvement will be thoroughly discussed in the upcoming week by a high-level Nepali delegation in Washington.
A financial structure to make concessional loans available will be explored during the 21st Replenishment Meeting of the International Development Association (IDA) to be hosted in Nepal. Dr. Prakash Sharan Mahat, the Minister of Finance, also received a positive response from the World Bank concerning this matter.
Minister Dr. Mahat, during his deliberations with the co-chairs, also discussed the ongoing progress of the project. He underscored the importance of increasing the 2% distribution of the loan that was initiated last year.
The Ministry aims to pay special attention to site clearances and contract settlements and strives to expedite numerous stalled projects with a focus on a few areas as top priorities. These discussions will have an escalating impact.
In addition, an agreement has been reached between both sides to efficiently administer an annual budget of approximately 300 million US dollars (equivalent to about 39 billion Nepali Rupees) within the fiscal year for economic reform and development, with the focus on public financial management, financial sector, and inclusive development.
Furthermore, during the dialogue in the sector of physical infrastructure, Minister Mahat suggested implementing assistance in a new modality.
This model will be based on Nepal’s social and environmental vulnerability, emphasizing the mitigation of risk. The implementation of the Grid Concept in Nepal is pioneering, fostering harmonious cooperation in development partnership, and enhancing Nepal’s proficiency in climate finance management.
The meeting included the participation of Secretary Dr. Krishna Hari Pushkar of the Ministry of Finance and Chief of the International Economic Cooperation Division at the Ministry, Mr. Shree Krishna Nepal, along with the Nepali delegation.
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