ADB agrees to boost lending to Nepal

Kathmandu February 26- The Asian Development Bank (ADB) said it would be willing to expand annual lending to Nepal by 70 percent to $500 million from the current $300 million to support critical investments and reforms.

Visiting ADB President Takehiko Nakao made the plan official. He met with Prime Minister KP Sharma Oli and Finance Minister Bishnu Prasad Paudel on Thursday to discuss Nepal’s economic recovery and social development after the devastating earthquakes in 2015. During the meetings, Nakao praised Nepal’s enactment of its new Constitution as a major milestone in its political transition process.

The ADB is ready to provide assistance for Nepal’s transition to the new governance structure and public management systems as envisaged in the constitution. Under the ADB’s country partnership strategy with Nepal for 2013-17, it has accorded priority to major investments in hydropower generation and transmission, enhancing the capacity of international airports, building new economic corridors to promote regional trade and reforming higher education systems. The ADB will continue its support for inclusive growth through investments in agricultural diversification and productivity, urban and rural water supply and sanitation and rural roads.