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Nepal raises Rs 30bn internal loans, Rs 26.46bn external loans in 6 months

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KATHMANDU: The country has raised Rs 30 billion in internal and Rs 26.46 billion in external loans till January 14, 2023, the half-yearly review of the budget for current fiscal year 2022/23 released on Sunday stated. Similarly, the government has received foreign grants worth Rs 8.12 billion during the same period. Government mobilises internal and external loans and foreign grants for the implementation of annual policies and programmes. According to the Ministry of Finance, discussions are being held with various development partners for the mobilisation of development assistance for the current FY and next FY. The half-yearly review report states that initiatives are underway for loans and grants with over two dozen development partners. The government has been taking initiative to ask for Rs 39 billion concessional loan from the Asian Development Bank (ADB) for the implementation of Kakarbhitta-Laukahi road section. Discussion with the World Bank to get this loan is underway, according to the Finance Ministry. Similarly, the government is also making preparation to ask for Rs 13 billion subsidised loan for the School Sector Reform Programme as well as Rs 13 billion subsidised loan for Quality Health System Project from the World Bank. The project document has already been prepared to get this loan assistance, it has been reported. The Finance Ministry mentioned in the review report that a subsidised loan for budgetary assistance of around Rs 13 billion will be taken out from the World Bank under Nepal Fiscal Reforms DPC-2 Programme while the preparation is underway to take budgetary assistance worth around Rs 13 billion under 'Finance for Growth' programme. The ADB has already given initial consent for the implementation of 635-MW Dudh Koshi Storage Hydroelectric Project. "The Asian Development Bank has given hint to provide around Rs 75.40 billion subsidised loan for the implementation of the project. Coordination is underway to collect the investment from other donor agencies in the project," mentioned the review report. Similarly, homework is on to secure a subsidised loan worth $500 million (around Rs 65 billion) to implement the 1061MW Upper Arun Reservoir-based hydropower project. In addition to this, the government is coordinating with other probable investors for the project to manage the remaining funds required to undertake the project. For the implementation of the Customs Reform and Modernisation Strategies and Action Plan, the government is in the course of receiving a loan of around Rs 6.50 billion in subsidy from the Asian Development Bank. Moreover, the government is making preparations to get a soft loan worth Rs 13 billion from the ADB to implement public finance management and service delivery reform programme. Discussions are underway in regard to a draft of the Memorandum of Understanding (MoU) to secure around Rs 14.40 billion in grants from the British Government to undertake the Local Infrastructure Support Programme. Besides this, Nepal is to take a loan worth Rs 1.19 billion from the ADB for the implementation of the Rural Roads Improvement Programme. The government is in touch with some of its development partners and donor agencies to receive foreign assistance. It reaches the phase of collecting submissions from the Ministry of Law, Justice and Parliamentary Affairs in regard to obtaining 40 million Euros from the European Union for the implementation of the School Sector Reform Project and projects in other areas. The EU has been urged to provide Rs 15.06 million in grants to Nepal for the support of agricultural and rural development endeavours. By RSS READ ALSO: