World Bank providing Nepal with credit of $200 million for fiscal and growth reforms and better provincial and local roads

By Republica
Published: March 01, 2024 09:35 PM

KATHMANDU, March 1: The World Bank on Thursday approved loans worth US $200 million to Nepal to support the country’s transition toward Green, Resilient, and Inclusive Development (GRID) and help improve the development and maintenance of Nepal’s provincial and local road network.

The $100 million is being provided under the Second Fiscal Policy for Growth, Recovery and Resilience Development Policy Credit. The program aims to strengthen revenue collection, reduce fragmentation of debt management, and increase debt transparency. It also supports reforms to enhance climate-resilient infrastructure spending, lower Nepal’s minimum foreign direct investment (FDI) threshold to promote FDI inflows and facilitate automation to streamline the process of FDI.

Similarly, an additional $100 million credit will be used for the Provincial and Local Roads Improvement Program. It will support the implementation of a comprehensive program for the development and maintenance of Nepal’s provincial and local road network. It will help improve the efficiency of service delivery, strengthen the resilience of selected provincial roads and bridges, and ensure communities have safe access to markets and services.

This is the first of a three-phase series of programs and will be implemented in Madhesh, Karnali, and Sudurpaschim provinces and local levels with the potential to scale up in the future.

Faris Hadad-Zervos, country director of the World Bank for the Maldives, Nepal and Sri Lanka, said the credit facility is being provided through the new projects financed by the World Bank’s International Development Association (IDA). According to him, the multilateral lending organization will continue to focus its assistance on improving people’s lives including through infrastructure and services.

 

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