Finance Secretary Rameshore Prasad Khanal and Susan G Goldmark, country director of WB to Nepal, signed an agreement to this connection on Friday. [break]
The Finance Ministry said the additional assistance would be spend for upgrading and rehabilitation of 700 km existing roads in eight districts -- Baitadi, Bajhang, Darchula, Daliekh, Kalikot, Jumla, Rukum, and Jajarkot.
“Upgrading and rehabilitation will be carried out along Khodpe-Chanipur road (113 km), Surketh-Jumla road (236 km), Sitalpari-Musikot road (86 km), Chhinchu- Jajarkot (84 km), Satbajh-Darchula (130 km), Satbajh -Tripurasundari road (23 km) and Tallo Dhungeswor-Dailekh (28 km),” reads a statement.
Periodic maintenance of black top of strategic roads and emergency maintenance of flood damaged roads and road safety works too will be carried out from under the assistance.
A portion of aid will also be spent on institutional strengthening and policy reform. Under this, the assistance will support further modernization of Department of Roads (DoR) to enhance its service delivery.
The government has been implementing Road Sector Development Project, aiming to provide the residents of beneficiary district access to all-seasoned road access, thereby reducing travel time and improving access to economic centers and social services.
The project is expected to complete on 30 June 2015.
ADB pledges Rs 3.56b for transport enhancement
Meanwhile, Asian Development Bank (ADB) has pledged financial assistance of $49 million (Rs 3.56 billion), including grant assistance of $24.5 million, to Nepal for implementation of the Sub-regional Transport Enhancement Project.
Finance Secretary Khanal and ADB Country Director Barry Hitchcock signed an agreement to this effect on Friday. ADB has further agreed to provide grant assistance of $12 million (Rs 870 million) to Nepal for implementation of the Transport Project Preparatory Facility Project.
According to a press statement, assistance pledged under Sub-regional Transport Enhancement Project will be used for improving transport network and transit logistics, aiming to integrate remote areas and create an environment for integration into regional and global markets.
Under the project, the government has said it will upgrade 195 km of roads, including Salleri-Okhalkhunga (58km), Okhaldhunga-Harkapur (41km), Khandbari-Chainpur (44 km), Bhairahawa-Bypass (3.5 km) and Belbari-Chauharwa (47 km).
The project will also support in designing business processing, reengineering and upgrading of computer systems and building capacity of DoR and Road Board Nepal (RBN).
Grant pledged for Transport Project Preparatory Facility Project, on the other hand, will be used for identifying and preparing high priority investment projects in road and air transport sub-sectors for potential funding by the government or other development partners.
“It will help to establish an environment for preparing and implementing the public-private-partnership projects,” reads the statement, adding that the government will prepare at least two road transport projects and a air transport project under the facility.
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