KATHMANDU, March 22 :
The European Union has said that it will increase its development assistance to Nepal by three times for the period of 2014 to 2020.
During a meeting with Finance Minister Dr Ram Sharan Mahat, EU´s Development Commissioner Andris Piebalgs announced that development assistance will go up to Rs 48 billion from the current Rs 16 billion.
Minister Mahat is on a visit to Brussels in the Asia Programming Consultation seminar.
According to a press release issued by the Ministry of Finance on Saturday, Mahat also informed Piebalgs about the government´s plan of drafting the constitution and holding local polls within one year.
Minister Mahat also requested Piebalgs to provide assistance in the priority sectors such as rural development, energy, irrigation and rural roads.
Meanwhile, European Investment Bank (EIB) has pledged to provide a grant of Rs 16 billion for hydropower projects and transmission lines.
During a meeting with Minister Mahat, EIB director Fransisco De Paula Coelho pledged grants of Rs 1.5 billion for Tanahu Hydropower Project, and Rs 12 billion for transmission lines of Kaligandaki and Marsyangdi corridor within this year. Likewise, EIB is to provide Rs 3 billion from the upgradation of existing transmission line of the Trishuli corridor.
Source : Republica