WB providing concessional loan of US $100 million to support Nepal in its green, resilient and inclusive development

Published On: August 29, 2022 07:15 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, August 29: Nepal and the World Bank (WB) on Monday signed a concessional financing agreement for US $100 million (Rs 12.7 billion) for the Green, Resilient, and Inclusive Development (GRID) project.

This is the first out of three concessional loans of the GRID financing that the international lending institution is providing to Nepal. The budgetary support aims to support improvements in the enabling environment in Nepal toward a green, climate-resilient, and inclusive development.

Ishwori Prasad Aryal, joint-secretary at the International Economic Cooperation Coordination Division of the Ministry of Finance (MoF) and Lada Strelkova, operations manager of the WB for the Maldives, Nepal, and Sri Lanka, inked an agreement.

“Through this operation, we are supporting the government’s key policy actions across sectors including water, land use, climate-smart agriculture, sustainable forest management, urban waste, and pollution,” said Strelkova.

This is the first operation of the support policy actions for strategic GRID transitions that includes the sustainable and productive use of natural capital; resilience of urban and rural infrastructure, human capital, and livelihoods to climate and environmental risks; and more efficient and cleaner production, consumption, and mobility, according to a press statement issued by the WB. The initiative will also support policy actions of the government for strategic GRID transitions that help build and maintain prosperity across the country.

The operation encourages private sector investment in greening Nepal’s economy and creating jobs and livelihoods related to areas such as community forestry, agriculture, clean air, and solid waste management. It also supports reforms for strengthening inclusion in development, decision-making and access to assets and services.

Joint Secretary Aryal said the project will also help Nepal to progress in expanding and protecting prosperity while reducing poverty in the face of compounding challenges that affect Nepal’s development prospects, including the economic recovery from COVID-19 and the on-going disaster, climate and environmental risks.