Agreement signed with ADB for $100 million loan

KATHMANDU: The Asian Development Bank (ADB) is providing Nepal with a concessional loan of $100 million (approximately Rs 13 billion) for the Rural Connectivity Project-Additional Financing.

Finance Secretary Krishna Hari Pushkar and ADB Country Director for Nepal, Arnaud Cauchois, signed the loan agreement on behalf of their respective institutions. Likewise, Bharat Prasad Aryal, director general of the Department of Local Infrastructures, along with five province secretaries: Ramesh Kumar Singh, Amrit Shrestha, Shankar Prasad Pandit, Sunil Poudel, and Bishnu Bhandari signed the project agreement.

The project’s primary goal is to bolster rural road connectivity and enhance the capabilities of rural infrastructure agencies and road users. The assistance is expected to have a transformative impact by establishing and sustaining year-round road connectivity.

Speaking at the signing ceremony, Finance Secretary Pushkar emphasized the vulnerability of rural communities to climate change impacts, such as increased flooding and landslides, which can damage roads. He said the project will be crucial in in establishing and maintaining year-round connectivity, promoting inclusion and growth in rural areas.

Likewise, the ADB Country Director Cauchois expressed optimism that the concessional loan would play a crucial role in enhancing rural connectivity through the construction of all-weather roads and bridges across five out of the seven provinces of the country.