World Bank assures increased investment in Nepal

KATHMANDU, April 20 :

Finance Minister Dr Ram Sharan Mahat said on Saturday that development partners are ready to increase assistance to Nepal to help the country graduate as a developed nation by 2022.

Speaking to media persons upon his arrival at the Tribhuvan International Airport (TIA) on Saturday after a two-week long visit to USA and Mexico for participation in a World Banks´ program, Mahat informed that the World Bank has expressed commitment to increase financial assistance to Nepal.

Mahat also informed that the World Bank is preparing a four-year country partnership strategy to support Nepal in key areas of the development process. Currently, 20 development projects are running with financial support worth Rs 23 billion from the World Bank.

“The World Bank group will increase its assistance in infrastructure development and employment generation,” said Mahat, adding “Development partners are optimistic about improved investment climate following the second Constituent Assembly election.”

Likewise, the International Finance Corporation (IFC), which supports private sector development, has also made commitment to provide Rs 600 billion for developing hydropower projects with total installed capacity of 3,000 megawatts, said the finance minister. “IFC has also assured of investment in tourism and telecommunication sectors,” Mahat said.

IFC has already been invested in the 38 megawatts Kabeli. Similarly, IFC also expressed interest to invest in 213 megawatts Upper Trishuli, 600 megawatts Upper Marsyangdi, 900 megawatts Upper Karnali and 900 megawatts Arun III hydropower projects.

Mahat had held separate meetings with World Bank Managing Director Mulyani Indrawati, Vice President for the South Asia region Philippe Houerou and executive vice president of IFC Jin Young Cai in Washington DC.

Mahat during his USA visit participated in the high level seminar addressed by the United Nations´ General Secretary Ban ki-Moon. Mahat advocated for increasing climate financing budget during the seminar.

Developed countries have been already set up a fund worth US $ 30 billion to cope with the impact of climate change.

Source: Republica