KATHMANDU, July 8: Concerned by low capital spending in the current fiscal year, the World Bank has said it is looking for timely announcement of full-fledged budget for coming fiscal year followed by early delegation of spending authority by the government.
“We look forward to better understanding the underpinnings of the government´s development priorities in fuller detail in the next Three Year Plan, as well as a timely and full budget for fiscal year 2013/14 followed by early delegation of spending authority,” Tahseen Sayed, World Bank Country Manager in Nepal, said at a function organized for signing WB-funded new projects on Monday. [break]
Sayed expressed hope that a new World Bank Group Country Partnership Strategy (CPS) will be put in place to guide its development cooperation over the next four years.
The WB reported a record high disbursement and commitments of financial support to Nepal during the current fiscal year ending mid-July.
The WB Nepal office in a statement said that total disbursement during the fiscal year 2012/13 reached to US$ 180 million, a 25 percent disbursement ratio exceeding target and about US$ 416 million in new commitments.
The statement also said the WB has approved seven operations this fiscal year. The operations include additional financing for the School Sector Reform Program worth $100 million, Poverty Alleviation Fund worth $80 million and Agriculture Commercialization and Trade Project valued $60 million.
Similarly, the WB has approved additional financing for the Nepal India Electricity Trade Project amounting to $39 million, the Nepal India Regional Trade and Transport Project worth $99 million and the Kali Gandaki ´A´ Hydro Electricity Rehabilitation Project valued at $27.3 million and the Financial Sector Stabilization Development Policy Credit worth $30 million during the current fiscal year.
“We will work with the Government of Nepal to focus on three core cross cutting issues during the coming year,” said Sayed. “These include staffing and frequency of transfers; enhancing transparency and capacity procurement and better financial management; strong monitoring including independent third party monitoring and enhanced use of social accountability tools.”
The government and WB signed three project agreements on Monday for a combined value of $207.3 million. The three agreements include $100 million in additional financing for the School Sector Reform Program; $80 million in additional financing for the Poverty Alleviation Fund (PAF) and $27.3 million for the Kali Gandaki ´A´ Rehabilitation Project.
Three more project agreements valued at US$ 168 million are expected to be signed over the next few days.
The projects under pipeline include two regional projects -- Nepal India Regional Trade and Transport Project worth $99 million and additional Financing for the Nepal India Electricity Trade Project worth $39 million, as well as a $30 million worth of Financial Sector Stabilization Development Policy Credit.
“Today´s signing ceremony will perhaps be the last one between the Ministry of Finance and the World Bank before the end of the fiscal year. However, I would like to mention that we are on track to sign three more projects representing another $168 million in the coming days and weeks,” said Sayed.
“The additional financing will help the government partially close its financing gap; consolidate and sustain the gains in education outcomes in an inclusive manner; and continue pursuing reforms to enhance quality, accountability and governance in the sector,” she further said.
Altogether 18 projects worth Rs 1.5 billion are being implemented in various stages with the support of the WB.
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