KATHMANDU, Oct 12: The Asian Development Bank (ADB) is expected to lend an estimated amount between US$ 500 to 600 million during 2020-2024 under its new 5-year Country Partnership Strategy (CPS) for Nepal.
The ADB on Friday released its CPS that lays out its support plan to help the country achieve its goal of a stronger and more inclusive economy. According to a statement issued by the bank on Friday, the Nepal CPS for 2020–2024, endorsed by the ADB’s Board of Directors, will focus on three priority areas: improved infrastructure for private sector-led growth, improved access to devolved services, and environmental sustainability and resilience.
“With the political stability and the federal system of governance in place, Nepal is poised to bring about the desired economic and social transformation,” the statement quoted ADB Country Director for Nepal Mukhtor Khamudkhanov as saying.
“Our new CPS is aligned with the government’s plan of achieving higher economic growth, reducing poverty, and improving people’s lives. Nepal has seen reduced poverty and raised literacy levels in the last decade,” Khamudkhanov added. “Now, moving forward, smooth implementation of federalism, investments in critical physical infrastructure, and creating an environment for private sector investments are critical to further boost growth and reduce poverty.”
The ADB, under the new CPS, will support hydropower development and renewable energy, roads and air transport, logistics, and trade facilitation to strengthen domestic, regional, and international connectivity; reduce the costs of production and trade for businesses; and attract private investment. According to the statement, the CPS will help support development of cities and urban municipalities, quality education and employment-oriented skills development, and increased agriculture productivity and commercialization to augment rural incomes.
The CPS also supports increased availability of, and more equitable access to, basic services through the federal system of governance, stronger resilience to natural hazards that occur periodically and sustainable use of natural resources. The ADB will assist with policy reforms for devolved service delivery, including sub-national public financial management and sector reforms in agriculture, air transport, and water supply. The ADB has provided almost US$ 6 billion in financial and technical assistance to Nepal since its establishment in 1966.