ADB provides 100 million US dollar loan assistance
Kathmandu, Feb 12: Asian Development Bank (ADB) has agreed to provide 100 million US dollar for Rural Connectivity Improvement Project. An agreement to this effect was signed and exchanged at the Ministry of Finance, Kathmandu, today.
Shankar Preasd Adhikari, Secretary at the Ministry of Finance and Mukhtor Khamudkhanov, Country Director, Nepal Resident Mission of ADB, signed the Loan agreement on the behalf of the government of Nepal and the ADB respectively.
This project will upgrade 388 kilometers of rural roads to all-weather standards, serving the agriculture sector and bring access to 7.5 million people in 16 districts. This project is in line with the goal of the government's Agriculture Development Strategy signed in 2015 of encouraging commercial agriculture, increasing productivity, creating new rural jobs and increasing prosperity.
The objective of this project is to increase transport efficiency on project area. It shall improve the rural road conditions between the selected rural communities, agriculture production areas and enhance capacity of rural infrastructure agency and road users in project areas.
Similarly, ADB has also agreed to provide one million US dollar to restructure the Department of Local Infrastructure Development and Agricultural Roads into a state-of-the-art rural road agency. The project is expected to be completed by 31 January 2023.
On the occasion, Finance Secretary Adhikari on the behalf of the government expressed appreciation to the ADB for this assistance and its continued support in the socio-economic development of Nepal.