Kathmandu: The Government of Nepal has approved a significant package of foreign grants and concessional loans to support critical infrastructure projects, including the restoration of flood-damaged roads and the upgrading of electricity distribution systems.
At a press conference on Thursday, Minister for Communications and Information Technology, Prithvi Subba Gurung, announced that the Cabinet meeting held on 28 July had decided to accept a grant worth 2.8 billion Japanese yen from the Government of Japan.
This assistance will be used for the emergency reconstruction of the Sindhuli Road, which sustained heavy damage due to recent flooding.
Similarly, the Cabinet has decided to accept concessional loan assistance of approximately Rs 18.92 billion from the International Development Association (IDA), part of the World Bank Group. This funding will support the third phase of the Rani Jamara Kulariya Irrigation Project, one of Nepal’s key agricultural infrastructure initiatives.
In a further decision, the government also approved a total concessional loan of US$ 120 million (approximately Rs 16.74 billion) from the World Bank Group to strengthen and upgrade Nepal’s power distribution system.
The funding consists of US$ 86.7 million as a short-maturity loan and US$ 33.3 million as concessional credit. This financial package will be utilized under the Power Distribution Strengthening Programme (POSISP).
Additionally, the Cabinet has accepted a grant worth 20 million euros from the Government of Germany, which will also support the power distribution strengthening initiative.
These foreign aid agreements highlight Nepal’s continued collaboration with international development partners to rebuild and modernize critical infrastructure, aiming to enhance resilience against natural disasters and improve essential services across the country.
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