ADB pledges Rs. 61.5b over 3 years to Nepal
The Asian Development Bank (ADB) on Thursday pledged financial assistance of US$ 833.2 million (Rs. 61.5 billion) to Nepal over the next three years (2010-12) which will be used to sustain the “hard-won” gains of the peace process.
ADB’s new Country Partnership Strategy (CPS) released here said that promotion of broad-based inclusive economic growth, inclusive social development, governance and capacity building and climate change adaptation and environmental sustainability are the objectives that will help to sustain the gains of the peace process.
Barry J. Hitchcock, ADB country director said that the climate change and disaster risk mitigation is a new area the ADB is supporting in Nepal. Likewise, another new tool “peace filter” will ensure that concerns within the projects are addressed while helping to mitigate the risks of exacerbating social and political tension.
The ADB’s support for long-term growth will be accompanied by programs to meet the short-term expectations of the people, including providing jobs for the nation’s youth and conflict-affected communities, the multilateral donor said.
As per the new CPS, the ADB will take flexible approaches on aid as per the evolving political situation.
The ADB will provide assistance for six areas including agriculture and natural resources, education, energy, finance, transport and municipal infrastructure and services to meet the above objectives.
The ADB said agriculture had received the largest portion of its assistance in Nepal. Its aid to agriculture will go to rural roads, irrigation, agricultural research, income generation for marginalized rural areas, information technologies, and market support and extension services.
“The aid will also go for adaptation strategy of climate change for farmers,” Hitchcock said.
Similarly, the aid for education will go for free and basic compulsory education, among other sectors.
The ADB’s aid for power will be used in improving access to electricity in rural areas, increased energy efficiency, clean power development, regional cooperation and integration and promoting private sector participation, among others. It will also support rural financing institutions to ensure that rural populations have access to finance.
The new ADB support will also go for urban infrastructure development, comprehensive social programs and regional integration between South Asia and China in the areas of energy, transport and trade.
