KATHMANDU, Dec 24: The government of Nepal and Asian Development Bank (ADB) signed US dollar 150 million concessional loan agreement to finance South Asia Sub regional Cooperation (SASEC) Airport Capacity Enhancement Project and US$ 40 million concessional loan and US$10 million grant for the implementation of Priority River Basins Flood Risk Management Project.
As per the agreement, ADB will provide a concessional loan worth US$ 150 million for the Airport Capacity Enhancement Project. This project will enhance the airport capacity by constructing parallel taxiway extension, hanger apron, next phase work Design of TIA and construction of second terminal building at Gautam Buddha International Airport (GBIA). Likewise, ADB will provide a concessional loan worth US$ 40 million and US$ 10 million grant for said Priority River Basins Flood Risk Management Project.
According to the Ministry of Finance, the project will contribute to improve flood protection infrastructure, enhanced flood forecasting and response systems and improve flood prevention and preparedness capacity.
Shreekrishna Nepal, joint secretary at the Ministry of Finance signed the agreement on behalf of Nepal whereas Rudi Louis Hendrikus Van Dael, officer-in-charge, Nepal Resident Mission, ADB signed the agreement on behalf of the bank.
Addressing the signing program held in Kathmandu, Joint Secretary Nepal said, “The implementation of these programs will significantly contribute to the national economy by increasing the existing capacity of Nepal's airspace and flood protection infrastructure.” He said ADB has been continually supporting Nepal’s infrastructure development which has been crucial for the socio-economic development of the country.
Also addressing the program, Rudi said, “Both projects can contribute to delivering important results to the people of Nepal. The flood risk management project will improve disaster resilience and make lives safe. The airport project will contribute to improve connectivity, leading to economic growth, once the pandemic is stabilized.”
According to the ministry, the loan agreement will be effective after 90 days of the signing of this agreement.