ADB to increase loan and grant assistance to Nepal

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    KATHMANDU, May 3: 

    ADBThe Asian Development Bank (ADB) has given assurance to increase the loan and grant assistance to Nepal. 

    Finance Minister Dr Ram Sharan Mahat has got the assurance from ADB´s president Takehiko Nakao on Saturday in the sidelines of the 47th annual meeting of ADB is being held in Astana, the capital of Kazakhstan. 

    Mahat has requested with Nakao to resume grants to Nepal, according to the statement released by Finance Ministry on Saturday. 

    ADB has stopped providing grant to Nepal since 2013, citing that Nepal has improved its position in regard to debt servicing, and this policy will be revisited only in 2016 as per its calendar. 

    Mahat has urged to provide assistance especially on the infrastructures to overcome the situation of infrastructure-gap. 

    Mahat also informed Nakao that Nepal aims to graduate as the develop nation by the end of 2022, and needs more investment to fulfill the infrastructure gaps to create the environment for economy to grow rapidly. Mahat has sought investment particularly in hydropower generation, road network expansion and large irrigation projects. 

    “Nepal is lagging behind due to infrastructure impediments,” the statement quoted Mahat as saying in the meeting with the ADB president. Mahat also said that the country has achieved favorable social indicators as per targeted in the Millennium Development Goals (MDGs) till 2015 despite the decade long conflict and political transition, which is now coming to an end.

    Amid the meeting Mahat also extended invitation to Nakao to visit Nepal. Nakao accepted the invitation, stating that he wants to visit the birthplace of Lord Buddha in Nepal and come to Nepal by the end of 2014, according to the statement. 

    Finance minister Mahat also told ADB officials that the government is going to initiate second-tier reform as the sequel of economic liberalization and reform initiated in 1990s.

    Source : Republica