Foreign aid commitment soars
KATHMANDU:
Foreign aid commitment went up by over 500 per cent in the first five months of the current fiscal year as installment of an elected government and a slew of deals signed in the energy sector lifted the confidence of development partners.
The country received foreign aid commitment of Rs 211.72 billion in the five-month period between mid-July and mid-December, as against Rs 32.97 billion in the same period last fiscal, show the data of Ministry of Finance (MoF).
During the period, nine development partners of the country, including European Union, US Agency for International Development (USAID), Asian Development Bank (ADB), World Bank, Japan International Cooperation Agency (JICA), and the governments of India, Norway and Switzerland, pledged to give away grants and soft loans of various sizes.
Of these development partners, India topped the list with commitments to give Rs 107.13 billion in grants and loans, show the MoF data. This amount is almost 51 per cent of the total foreign aid commitment received by the country in the five-month period. In November, India formally extended a line of credit of $1 billion (approximately Rs 98.03 billion) to Nepal. This money, according to the government, would be invested in hydropower, irrigation and infrastructure development projects.
India has also pledged to give Rs 8.78 billion in grant for construction of National Police Academy, Rs 256.70 million in grant to build an irrigation project and Rs 69 million in grant for goitre and other deficiency disorder control programme.
The second biggest foreign aid commitment was made by European Union, which pledged to give away Rs 44.80 billion in grant to boost rural development and job creation, foster quality education and strengthen democratic governance. The amount would be given to the country in between 2014 and 2020.
Next in line was USAID, which expressed commitment to give away
Rs 38.60 billion in grant to strengthen democratic process, improve governance, and enhance maternal and child health and literacy, says the MoF report.
Among others, ADB pledged to give away Rs 12.10 billion in first five months of this fiscal. Of this amount, Rs 6.32 billion was in form of grants, while remaining Rs 5.78 billion was in form of loans. These funds would be used in establishing women and children service centres, South Asia Sub-regional Economic Cooperation Project and Third Small Town Water Supply and Sanitation Project.
Likewise, World Bank expressed commitment to give Rs 5.31 billion in grants and loans, which would be used in Kabeli hydroelectric and extended biogas projects. Similarly, Norwegian government pledged to give Rs 1.83 billion for school sector reform programme, Swiss government expressed commitment to give Rs 1.68 billion to build bridges, conduct river protection works and improve livelihood in Chitwan, and JICA pledged to give Rs 272.70 million for school sector reform programme.
Source: THT
