Int’l Conference for Nepal’s Reconstruction: Govt looking forward to grants, soft loans

KATHMANDU, June 24:

The government is all set to host an international conference on Thursday, with high hopes of mobilising funds for the reconstruction of earthquake damage. As many as 239 delegates from 53 countries and high-level officials from the donor community have confirmed their participation in the conference.

Briefing media about the conference, Finance Minister Ram Sharan Mahat said donors, development agencies and participating countries will pledge their support and indicate areas for their support during the conference. Discussions at the conference will be on best practices such as the Build, Own, Operate and Transfer (BOOT) model for reconstruction as well as on the good practices of other countries at times of similar disasters. Collecting of suggestions will also take place, added Minister Mahat.

The president of the Asian Development Bank, the  vice-president of the World Bank,  the president of Japan International Cooperation Agency (JICA), a commissioner of the European Union and the assistant general secretary of the United Nations are among those to be participating in the one-day event.

The government has arranged visits to the quake-affected sites by the donors, as per their interest. Seven government ministers from different countries are also visiting Nepal for the conference.  The foreign affairs ministers of India, China and Norway, the finance ministers of Bhutan and Bangladesh, the disaster management minister of Sri Lanka and Japan’s state minister for foreign affairs are among the dignitaries who will attend.

Mahat added, “Many may pledge their support amounts during the conference while others might choose simply to say they are yet to prepare for the support as their respective boards and parliaments need to approve such matters beforehand.

A Post-Disaster Needs Assessment has already assessed a need for Rs 669 billion (approximately US $ 6.69) for the reconstruction.   

Minister Mahat said that the government will not spend to cover the entire needs as the private sector and private individuals will also be contributing. But the government may be spending huge amounts as many of the reconstruction activities may require its support.  

Mahat declined to specify the exact amounts expectated from the donors but said that they first expect commitments from the donors and the government will take responsibility for the shortfalls against the needs of the reconstruction activities.  

The post-quake budget plan for the upcoming fiscal year starting mid-July has already been revised upwards to Rs 841 billion, adding Rs 106 billion to previous projections. But the sources for the budget are yet to be finalized.

The shortfall in revenue is projected at 8 percent to about Rs 390 billion. The government expects grants from the supporting agencies and will also accept confessional loans, but not market loans as Nepal has never before gone in for such loans.

“We want either grants or soft loans which are at cheaper interest rates, and loan payback periods of 30 to 40 years,” said Mahat.

Minister Mahat also ruled out any plan to seek debt write-offs as Nepal is in a safe position in terms of debt repayment capacity. Many have expressed doubts about the implementation of the reconstruction projects, citing the country’s poor track record in budget spending.

Mahat also acknowledged that the problem is not one of budget resouces but of implementation, saying that there is a need of reform in implementation. “We cannot implement the reconstruction project with a business as usual approach, and there is a need for changed attitudes,” he added.  The finance minister also said that the government will accept support as per its own priorities.

What is the program for Thursday?  

The conference venue is the hotel Soaltee Crowne Plaza. Prime Minister Sushil Koirala will inaugurate the gathering of donors and representatives of different countries. The second session will be for pledgings and commitments for reconstruction by the donors and supporters. After that, two technical sessions will be held for paper presentations. The papers will share knowledge on urban development, rural development, disaster response and rescue efforts, among other things

Source: republica