Kathmandu: The Government of Nepal and the World Bank signed two separate agreements on Wednesday that will help strengthen urban governance and the financial sector in Nepal in support of the country’s COVID-19 resilience and recovery efforts.
The agreements for the Nepal Urban Governance and Infrastructure Project and the Finance for Growth Development Policy Credit were signed by Finance Secretary Mr. Sishir Kumar Dhungana on behalf of the Government of Nepal, and the World Bank Country Director for Maldives, Nepal, and Sri Lanka, Mr. Faris Hadad-Zervos.
“We are thankful to the World Bank for the support in strengthening urban development and improving financial sector stability in Nepal,” stated Dhungana.
The $150 million of Nepal Urban Governance and Infrastructure Project will support municipalities located in two strategic urban clusters: Eastern-Terai region (Provinces 1 and 2) and Western region (Gandaki Province and Lumbini Province).
The project will finance small scale labor intensive public works, thus supporting economic recovery and creating temporary jobs for at least 20,000 people across the country, including women and other vulnerable groups.
Similarly, the Bank offered the $200 million of Finance for Growth operation as a budgetary support. It will support enhanced supervision of risks confronting the banking and financial institutions, especially in the context of the pandemic’s impacts.
“The World Bank is committed to support the government in implementing its relief, recovery, and resilience plan to meet urgent demand while focusing on long-term goals and opportunities to rebuild stronger and better from the pandemic,” stated Faris Hadad-Zervos, World Bank Country Director for Maldives, Nepal, and Sri Lanka.
