Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: After a previous attempt stalled due to a lack of preparation, the Government of Nepal is returning to the drawing board to secure a multi-million dollar loan from the World Bank. The goal? To finally jumpstart the country’s ambitious Digital Nepal Transformation project.
The Ministry of Finance has officially received the green light to form a negotiation committee. This move signals a fresh start for a project that has faced significant setbacks in recent years.
What Happened the First Time?In 2022, Nepal signed a $110 million agreement for the Digital Nepal Acceleration (DNA) project. However, the deal was eventually cancelled by the World Bank after two years of zero progress.
The issue wasn’t a lack of funds, but a lack of direction. The government struggled to figure out how or where to implement the project. Without a solid roadmap for expanding broadband or building digital foundations, the agreement simply gathered dust until it was terminated.
The New Plan: Learning from MistakesThis time, the approach is more focused. Intensive discussions are currently underway between the Ministry of Finance, the Ministry of Communication and Information Technology, and the World Bank to refine the terms.
Instead of broad, vague goals, the revised loan will target specific, high-priority areas:
Upgrading Data Centers: The government plans to expand existing data centers (originally built with South Korean assistance) and construct new ones to handle the country’s growing digital needs.
Connecting Public Services: A major chunk of the investment will go toward making government systems “interoperable.” This means different departments will finally be able to talk to each other digitally, making public services faster for citizens.
Infrastructure & Skills: The project will continue to focus on expanding broadband access and enhancing the digital skills of the workforce to support a growing digital economy.
For the average citizen, this isn’t just about government loans—it’s about better internet, more reliable online government services, and a more modern economy. By restructuring the deal, the government is hoping to prove it can move beyond the planning phase and actually deliver on the promise of a “Digital Nepal.”
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