The government and the Asian Development Bank (ADB) today signed a concessional loan agreement for the implementation of Rural Connectivity Project-Additional Financing.
The agreement involves a loan amounting to USD 100 million, which is equivalent to around Rs 13 billion.
Finance Secretary Krishna Hari Pushkar and ADB Country Director for Nepal, Arnaud Cauchois, signed on the agreement on behalf of their respective sides in the Ministry today, according to the Ministry of Finance.
Similarly, the project agreement was signed by Bharat Prasad Aryal, Director General of the Department of Local Infrastructures, five province secretaries — Ramesh Kumar Singh, Amrit Shrestha, Shankar Prasad Pandit, Sunil Paudel and Bishnu Bhandari, and the ADB Country Director.
The project aims to strengthen rural road connectivity and enhance the capacity of rural infrastructure agencies and road users. The proposed assistance is expected to have a transformational impact by establishing and maintaining year-round road connectivity.
On the occasion, the Finance Secretary said,” Rural communities are also vulnerable to climate change impact such as increasing frequency and intensity of flooding and landslides which can damage roads. In this context, this project has a great relevance and significance in establishing and maintaining year-round connectivity to promote inclusion and growth in rural areas.”
The ADB Country Director for Nepal expressed hope that the concessional loan would play a crucial role in improving rural connectivity by constructing all-weather roads and bridges across five out of seven provinces in Nepal, totaling 324 kilometers.
The Finance Secretary appreciated the ADB’s continued support to Nepal’s socio-economic development.