PM Prachanda Urges AIIB to Provide Concessional Loans for Development


Kathmandu, Mar. 26: Prime Minister Pushpa Kamal Dahal ‘Prachanda’ has requested the Asian Infrastructure Investment Bank (AIIB), a multilateral development bank, to embrace a policy for concessional rate of credit for Nepal.

During a courtesy call by a delegation led by the director of AIIB, which is currently Nepal, Prime Minister Prachanda said that it would be difficult for a country like Nepal to get loans at market rate interest because there is no concessional provision in AIIB.

“Nepal still needs more concession on loans, but AIIB does not have such a provision,” Prime Minister Prachanda said, “The market rate has limited Nepal’s access to finance from AIIB. I urge you, as policymakers, to reconsider.”

Stating that the government is focusing on good governance and institutional development, social justice and prosperity through high economic growth, Prime Minister Prachanda said that he expects the bank’s support in financial management, technical assistance, knowledge sharing and capital mobilisation towards this end.

There are currently some projects in the energy sector with the investment of AIIB in Nepal, said the Prime Minister and urged them to invest in hydropower, tourism, information technology and infrastructure development as there is a lot of potential for investment.

“Historical agreements have been made to export 10,000 megawatts of electricity to India and to export electricity to Bangladesh as well, which has paved the way for the development of Nepal’s hydropower sector,” Prime Minister Prachanda said.

“There is a good environment for investment in the energy sector. We are holding an investment conference in April. I am confident that AIIB will assist in creating a favourable environment for investment in Nepal’s priority areas through its representation at the highest level.” Stating that the government has made a policy change to promote domestic and foreign investment in Nepal, Prime Minister Prachanda called for investment in Nepal with confidence.

In the meeting held under the leadership of AIIB director R.M.P. Rathnayake along with directors, vice-presidents and senior officials were present.

On that occasion, R.M.P. Rathnayake said that as Nepal is a founding member of the bank, the bank has prioritised Nepal and it was positive to invest in Nepal’s development.

Source: Rising Nepal