ADB to provide Nepal with $165m loan for water, sanitation and customs reform
KATHMANDU: The Asian Development Bank has agreed to provide a loan of $165 million to the Government of Nepal.
Two separate loan agreements were signed between the Government of Nepal and the ADB at a programme held at the Ministry of Finance on Monday. The loans will be used to modernise drinking water and sewerage management and to reform customs administration.
The agreements were signed in the presence of Finance Minister Dr Swarnim Wagle and ADB President Masato Kanda. Finance Secretary Dr Ghanshyam Upadhyaya signed on behalf of the Government of Nepal, while ADB Country Director for Nepal Arnaud Cauchois signed for the bank.
Under the agreements, a concessional loan of $115 million will be mobilised for the Integrated Water Supply and Sewerage Management Sector Project, and a $50 million policy-based loan will support modernisation of customs administration, boost trade and promote job creation.
The concessional loan is expected to improve resilient water supply and sanitation services and strengthen institutional capacities in rapidly growing municipalities across Nepal. The water supply project is also expected to directly benefit more than 850,000 people in 13 municipalities.
The policy based loan will support subprogram 2 of the South Asia Subregional Economic Cooperation Customs and Logistics Reforms Programme, building on earlier efforts to advance customs processes and develop the logistics sector.
Finance Minister Dr Wagle welcomed the ADB’s support for Nepal’s sustainable development and expressed confidence that the partnership would be further strengthened. ADB President Kanda reaffirmed the bank’s commitment to continue its six-decade-long cooperation with Nepal and to help the country face internal and external economic challenges.
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