Out of the total assistance to be provided to execute the Nepal-India Regional Trade and Transport Project (NIRTTP), $ 27 million and $72 million will be received by Nepal in grant and loans respectively. [break]
World Bank’s Country Manager for Nepal Tahseen Sayed and Madhu Kumar Marasini, joint-secretary at the Ministry of Finance (MoF), signed a pact for this on Thursday.
MoF issued a statement saying the project was aimed at decreasing transport time and logistics costs for trade between Nepal and India, and for facilitating transit trade along the Kathmandu-Kolkata corridor to reduce key infrastructure bottlenecks in Nepal and to support the adoption of modern approaches to border management.
Modernization of transport and transit arrangements between Nepal and India, strengthening trade related institutional capacity in Nepal and improving selected trade related infrastructure are among the programs to be covered by the project.
“This project is a landmark which is a first of its kind in South Asia. It will be instrumental in introducing a modern and effective transit regime and enhancing the trade system´s efficiency as well as simplifying movement of goods between the Kolkata port and Kathmandu,” Sayed said at the agreement signing function at MoF, according to the statement.
The project components consist of upgrading and expanding the Narayanghat-Mugling road section to Asian Highway Standard, improvement of the Birgunj-Kathmandu corridor, construction of a Container Freight Station or an Inland Clearance Depot (ICD) in the Kathmandu Valley, enhancing capability of trade related laboratories and facilitation of arrangements for mutual recognition of quality certificates.
Speaking on the occasion, Marasini said the project would create an environment to expand regional trade enhancing transport, trade and transit facilities, which would be most beneficial for Nepal.
The World Bank has already reported a record high disbursement and financial support commitments to Nepal during the current fiscal year ending mid-July.
Two more projects to be signed soon between Nepal and the WB are additional financing for the Nepal-India Electricity Trade Project worth $39 million and the US $30 million Financial Sector Stabilization Development Policy Credit.
Total disbursement by the WB for Nepal during Fiscal Year 2012/13 reached US$ 180 million, a 25 percent disbursement ratio exceeding target and about US$ 416 million in new commitments with seven operations approved.
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