February 21: Asian Development Bank (ADB) is set to grant USD 843.8 million to Nepal in next three years. The bank will provide the support during the year 2017-2019, informed Vice-President of ADB, Wencai Zhang. Zhang is on a 3-day official visit to Nepal. During the visit, he met with Nepal’s Deputy Prime Minister and Finance Minister Krishna Bahadur Mahara, and other senior officials to discuss the overall direction of development partnership between ADB and Nepal.
“ADB stands ready to support Nepal in its aspirations to become a prosperous middle-income country by 2030 while achieving the Sustainable Development Goals,” Zhang said.
During the meetings, Zhang commended the improved project implementation performance in 2016, achieving $358 million contract award and $201 million disbursement, both highest in ADB’s operational history in Nepal.
“ADB has allocated $843.8 million for Nepal for 2017-2019. A further $356 million can be made available over the period for projects contributing to regional cooperation and integration and reduction of disaster risks and fragility, provided that Nepal continues to improve its performance of its ongoing projects,” he added.
The ADB Vice-President will also meet with Nepal’s Prime Minister Pushpa Kamal Dahal, Minister for Water Supply and Sanitation Prem Bahadur Singh, Minister for Energy Janardan Sharma, and Vice-Chairman of the National Planning Commission Min Bahadur Shrestha.
During the meeting with senior officials, Zhang acknowledged the progress of the Melamchi Water Supply Project and Kathmandu Valley Water Supply Improvement Project that are likely to start delivering Melamchi water in October 2017, and agreed on maximum mutual efforts to complete the project in time.
In this connection, both sides also agreed on expediting institutional strengthening of the Kathmandu Upatyaka Khanepani Limited (KUKL) including the restructuring of its board and implementation of the roadmap prepared by its management, such as ICT-based automated water distribution and billing, and deployment of middle managers and additional technical staff.
Zhang said, “On the basis of the advancement of the KUKL reforms to become customer-oriented water provider, ADB is ready to extend assistance for the second Melamchi project to extend tunnel to the Yangri and Larke Rivers to further augment water supply from the tunnel from 170 million litres per day (MLD) to 510 MLD. This will make possible continuous supply of water to people in Kathmandu Valley, 24 hours a day, 7 days a week.”
During the meetings, Zhang also renewed ADB’s commitment to support Nepal to prepare long-term socio-economic development vision, strategy, and economic transformation programs towards achieving its goal of becoming a prosperous middle income country by 2030. He also conveyed readiness to support critical regulatory and institutional reforms in the energy sector, and associated investments such as 300 MW Dudhkoshi hydropower project, and the modernization of electricity distribution systems in the Kathmandu Valley.
During his visit to Nepal, Zhang also participated in the Nepal Infrastructure Summit 2017 organized by the Confederation of Nepalese Industries and the Government of Nepal. He also visited the Tanahu Hydropower Project in Tanahun district, and a dairy plant assisted by an ADB-funded livestock project in Kaski district.
