Officials at the Ministry of Federal Affairs and Local Development (MoFALD) said negotiations are currently underway to finalize a deal on utilization of the soft loan. The interest rate on the loan is 1 percent and it is repayable in 40 years. "Our negotiations [with the ADB] are moving forward positively. We hope to reach a deal by Monday," said MoFALD Spokesperson Purna Chandra Bhattarai.Two days after the massive earthquake hit Nepal on April 25, the ADB announced a $3 million grant for immediate relief such as in the form of tents, medical assistance, food and drinking water, and $200 million in loan for the rehabilitation of earthquake victims. This $200 million soft loan is meant for carrying out projects in the first phase of rehabilitation, according to ADB Senior External Relations Officer Binita Shah.
The $3 million grant was provided from the Asia Pacific Disaster Response Fund to meet humanitarian needs in the immeldiate aftermath of the quake.
Officials said MoFALD, in coordination with various related ministries including the Ministry of Education, Ministry of Urban Development and Ministry of Physical Infrastructures and Transport Management, is executing the first phase of the rehabilitation project. This includes construction of about 700 schools and nearly 200 government office buildings in various districts hardest-hit by the earthquake.
Likewise, the soft loan will be utilized to repair and construct damaged local road networks and strategic roads. Officials said about 450 km of damaged rural roads and about 300 km of strategic roads shall be repaired and constructed so that normalcy will return in the earthquake-affected region.
Fourteen districts were badly affected by the massive earthquakes of April 25 and May 12. The government is currently carrying out a Post-Disaster Needs Assessment (PDNA) to ascertain the actual level of damage to infrastructure and the needs of the affected region.
As people living in the affected districts have lost not only their homes but also their livelihoods, the government is mulling is to introduce some short-term projects to help the victims build their homes and lead normal lives again. Necessary homework is being done to introduce short-term projects such as cash for work and cash for training, in order to address the immediate needs, officials said.
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