Foreign aid commitment up 300pc in first half of this fiscal
KATHMANDU:
Foreign aid commitment went up by around 300 per cent in the first half of this fiscal year, as successful Constituent Assembly election and installation of an elected government raised hopes for return of stability, which gave a boost to confidence of development partners.
The country received foreign aid commitment of Rs 217.67 billion in the six-month period between mid-July and mid-January, as against Rs 55.29 billion in the same period last fiscal, show the data of the Ministry of Finance (MoF).
Of this commitment received in the first half of this fiscal,
Rs 107.75 billion was in the form of loans and the rest in the form of grants.
During the period, 10 development partners of the country, including the European Union, US Agency for International Development (USAID), Asian Development Bank, World Bank, Japan International Cooperation Agency (JICA), the UK’s Department for International Development (DfID), and the governments of India, Norway, Switzerland and Finland, pledged to give away grants and soft loans of various sizes.
Of these development partners, India topped the list with commitments to give away Rs 107.13 billion in grants and loans, as against the DfID in the same period last fiscal, show the MoF data. The amount pledged by India is 49 per cent of the total foreign aid commitment received by the country in the six-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 away 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 programmes.
The second biggest foreign aid commitment was made by the European Union, which pledged to give away Rs 44.80 billion in grants to boost rural development and job creation, foster quality education and strengthen democratic governance. The amount would be given to the country between 2014 and 2020.
Next in line was USAID, which expressed commitment to give away Rs 38.60 billion in grants to strengthen democratic process, improve governance, and enhance maternal and child health and literacy, says the MoF report.
Among others, the ADB pledged to give away Rs 12.10 billion in the first six months of this fiscal. Of this amount, Rs 6.32 billion was in the form of grants, while the remaining Rs 5.78 billion was in the 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, the World Bank expressed commitment to give away Rs 5.31 billion in grants and loans to the government, which would be used in Kabeli hydroelectric and extended biogas projects.
Similarly, the DfID pledged to give away Rs 5.08 billion in grants to the government in the first half of this fiscal. The money would be used in implementation of Integrated Programme for Strengthening Security and Justice Project.
Among others, the Norwegian government pledged to give away Rs 1.83 billion in grants for school sector reform programme, the Swiss government expressed commitment to extend another grant of Rs 1.68 billion to build bridges, conduct river protection works and improve livelihood in Chitwan, the Finnish government and the JICA pledged grants of Rs 867 million and Rs 272.70 million, respectively, for school sector reform programme.
PLEDGE
Partner Amount
India Rs 107.13bn
EU Rs 44.80bn
USAID Rs 38.60bn
ADB Rs 12.10bn
WB Rs 5.31bn
DfID Rs 5.08bn
Norway Rs 1.83bn
Switzerland Rs 1.68bn
Finland Rs 867m
JICA Rs 272.70m
Source: Ministry of Finance
Source: THT
