IDA is the concessionary lending arm of the WB Group, while IFC is the private sector arm. Unlike the past, when the WB used to announce Country Assistance Strategy, the WB said it has developed Interim Strategy Note (INS) for Nepal for fiscal years 2012 and 2013, mainly considering the political transition. [break]
“Development programs in the new strategy are consistent with the country´s three year plan,” reads a press statement. The WB Group also welcomed the impressive progress that Nepal has made in social development indicators, despite the challenging political environment.
According to the statement, the strategy is organized around three pillars that support the government´s overarching goal to build a peaceful, prosperous and just Nepal.
The first pillar focuses on enhancing connectivity and productivity for growth. The second intends to reduce vulnerabilities and improving resilience, while the third pillar concentrates on promoting access to better quality services. “Governance, accountability, gender equality and social inclusion are themes that run across all three pillars,” says the statement.
Within each of these pillars, the strategy identifies specific areas where the WB Group can make a difference.
For instance, the statement says IDA would provide assistance on areas like roads, food security and livelihood vulnerability, education, health, urban services, and disaster management.
“IDA´s assistance program will help improve food security, reduce malnutrition, especially among pregnant women, improve immunization coverage of children and enhance the access to and the quality of education,” the statement quotes Ellen Goldstein, World Bank Country Director for Nepal and Bangladesh, as saying.
It would also assist in removing key bottlenecks to higher economic growth and more jobs through investments in roads and bridges, and the energy sector, she added.
Likewise, IFC would support on improving access to finance and investment climate, trade facilitation, lending to small and medium enterprises and trade finance facilities for local banks.
“IDA and IFC also expect to work together on power development, agriculture and climate change,” the statement says, elaborating on INS.
The strategy says Nepal could win about $400 million in assistance from IDA over the next two years, depending on performance and economic management. IFC too could potentially pledge $25-30 million on average annually.
The strategy reflects on continuity, building on programs with successful track records that are adapted to local conditions. It also emphasizes greater selectivity, focusing on areas considered vital to Nepal´s development and complementing programs supported by other development partners.
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