The multilateral development partner will provide assistance worth US$ 1.5 billion to Nepal over the period. [break]
The assistance will be for the long-term public and private-sector financing for the capital investment in the areas of transport, energy, water, education and skill development, the ADB said in a statement on Tuesday. “The investment is also for ensuring poverty reduction, as well as inclusive and sustainable growth,” the statement added.
The ADB expects to raise the capital amount from other partners from both the private and public sectors. The government and ADB worked together to define a strategic framework that will allow ADB and others to join up in funding the type of investments that can transform Nepal.
Juan Miranda, director general of ADB´s south Asian Department, said, “The strategic work was done in close consultation with key public agencies and private enterprises as well as with civil society and other development partners.”
Miranda underlined the need to convert the projects to ensure value for money and deliver development effectiveness.
“Nepal has great potential to scale up hydropower development, tourism and agriculture, and to benefit from its strategic location between China and India,” the ADB statement added.
ADB said, however, impediments such as critical power shortages, poor connectivity and water supply, and weaknesses in its human capital base, investment, and governance are undermining that potential.
“The periodic strategy will tackle these critical constraints through high priority energy sector investments to strengthen domestic energy security and promote exports through public-private partnerships,” the press statement said.
ADB has also focused on integrating Nepal with the regional and world economy by expanding its airports and trans-boundary road networks and modernizing customs with its assistance.
ADB also has said it would help Nepal to improve urban infrastructure such as water supply and sanitation in Kathmandu, irrigation and watershed improvement to boost productivity and commercialization. Likewise, the strategy also targets school and higher education as well as vocational and technical skill training.
Likewise, the new strategy also puts focus on governance, financial management, climate change, reforms for private sector investment and sustainability, institutional development and better project implementation performance.
The strategy will also have the flexibility to respond to emerging needs in the business environment during the political transition.
The previous country partnership strategy (2010-2012) was focused on inclusive economic growth, inclusive social development, governance and capacity building, and climate change adaptation and environmental sustainability.
In 2012, ADB´s total assistance in Asia and the Pacific totaled Rs 21.6 billion, including co-financing of Rs 8.3 billion.
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