PM urges AIIB for concessional loans to Nepal

KATHMANDU, MARCH 25: Prime Minister Pushpa Kamal Dahal ‘Prachanda’ has urged the Asian Infrastructure Investment Bank (AIIB) to ensure a policy for providing concessional loans to Nepal. During a courtesy meeting with a delegation led by RMP Rathnayake, the AIIB director, the Prime Minister said, “Nepal still needs concessions in borrowings as AIIB does not have such window. This market rate pricing is restricting Nepal’s access to AIIB financing. As you are policymakers, I urge you to consider this.”

Stating the government is focused on achieving a high economic growth target simultaneously with good governance, institutional development, social justice and prosperity, the Prime Minister said, hoping for the AIIB’s support in financing, technical assistance, knowledge sharing and mobilizing private capital in this process.

The PM said that currently there are a few projects under AIIB investment in Nepal in the energy sector and there are ample possibilities for investment in hydropower tourism, information technology and other infrastructure projects. He urged the AIIB to consider the investment in these areas. “It has been agreed to export 10,000 megawatts of electricity to India and Bangladesh as well. This has paved the way for Nepal’s energy trade,” he said.

Recalling the Nepal’s schedule to host the Third Nepal Investment Summit ( NIC) next month (April 28-29), the Prime Minister expressed his hope that there would a high-level participation from the AIIB in the event, contributing to building an investment-friendly atmosphere for areas of priorities in Nepal. He also appraised the delegation that Nepal has revised its policies aiming to promote private and foreign investment, he urged the AIIB to invest confidently in Nepal.

The delegation led by Rathnayake comprised the AIIB vice president and other senior officials. On the occasion, Rathnayake said AIIB accorded top priority to Nepal as being its founding member and the Bank is positive for increasing its investment in its development endeavours.