Kathmandu, Oct 14 : The Asian Development Bank (ADB) has released a new 5-year Country Partnership Strategy (CPS) for Nepal that lays out ADB’s support to help the country achieve its goal for a stronger and more inclusive economy.
According to the Bank, the Nepal CPS for 2020–2024, endorsed by ADB’s Board of Directors, will focus on three priority areas: improved infrastructure for private sector-led growth, improved access to devolved services, and environmental sustainability and resilience.
Under the new strategy, ADB expects to lend an estimated $500 million to $600 million on average during 2020–2022.
“With the political stability and the federal system of governance in place, Nepal is poised to bring about the desired economic and social transformation,” said ADB Country Director for Nepal Mr. Mukhtor Khamudkhanov.
“Now, moving forward, smooth implementation of federalism, investments in critical physical infrastructure, and creating an environment for private sector investments are critical to further boost growth and reduce poverty.”
Under the new CPS, ADB will support hydropower development and renewable energy, roads and air transport, logistics, and trade facilitation to strengthen domestic, regional, and international connectivity; reduce the costs of production and trade for businesses; and attract private investment.
ADB will assist with policy reforms for devolved service delivery, including subnational public financial management; and sector reforms in agriculture, air transport, and water supply.
Since its establishment in 1966, ADB has provided almost $6 billion in financial and technical assistance to Nepal. The assistance was provided in energy, transport, water supply and urban infrastructure services, agriculture and irrigation, and education.
In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members—49 from the region.
