WB to boost aid under IDA 17
KATHMANDU, APR 13 - Finance Ministry said on Saturday the World Bank has pledged to increase its aid to Nepal under the International Development Assistance (IDA) 17, a programme aimed at the poorest countries.
In a press release, the ministry said World Bank Managing Director Sri Mulyani Indrawati assured Finance Minister Ram Sharan Mahat about the increment in aid to Nepal.
The IDA 17, which begins from July 17, 2014 and runs through June 2017, aims to help poor countries to attain millennium development goals and address post-MDG agendas. IDA 17 also aims at maximising development impacts.
In a meeting with Mahat in Washington, Indrawati also expressed her concerns about project implementation lags and land acquisition problems and resettlement issues.
Mahat is currently in Washington to take part in the joint meeting of the World Bank and International Monetary Fund (IMF).
World Bank Vice-chairman for South Asia Philippe H Le Houerou stressed on the need for policy reforms and development and assured support provided Nepal implements the reform agenda sincerely. Mahat has been talking about second generation reforms in recent times.
The minister also assured the bank that the government was committed to introducing new reforms as many bills have been submitted to the parliament for their enactment. During his meeting with World Bank officials, Mahat sought more aid from the bank for infrastructure development, especially in road connectivity and hydropower projects.
Stating that infrastructure development in Nepal is relatively costly due to difficult terrain, Mahat sought higher support from all possible windows of the bank, including International Finance Corporation (IFC) and IBRD.
IFC Vice-president Karin Finkelston, during her meeting with Mahat, said IFC’s loan to Kabeli Hydropower Project was the first step for IFC’s investment in Nepal to harness massive hydro potential in the country by leveraging private sector investment.
She stressed on the need for improving the business climate in Nepal in the days to come. Praising Nepal for allowing IFC to issue local currency bonds, she said was a step forward towards mobilising resources for development. Mahat responded saying there was a lot of hope with the new government as political stability has returned and business climate has improved since the formation of the new government.
Source: The Kathmandu Post
