July 19: The government and the World Bank on Friday signed a USD 450 million (around Rs 54 billion) financing agreement to improve the efficiency and safety of transport infrastructure, cross-border trade, and strengthen capacity for strategic road network management. Issuing a press statement, the Washington D.C.-based lender said that this is the single largest value project that the Nepal government has signed with the World Bank. 

The agreement was signed by Finance Secretary Sishir Kumar Dhungana and Faris Hadad-Zervos, World Bank Country Director for Maldives, on the presence of Minister for Finance Dr Yuba Raj Khatiwada.

“We thank the World Bank Group for supporting this important project which will enhance connectivity and country integration along with cross border markets to support post-COVID-19 recovery,” the statement quoted Dr Khatiwada as saying. "Connectivity is high on the rapid and sustainable development agenda of Nepal. Sustainable transport and sustainable, inclusive and high-quality infrastructure are of cross cutting importance for accelerating economic growth, national and regional economic integration and attaining the sustainable development goals."

Speaking on the occasion, finance secretary Dhungana said that the Project, with its focus on reducing time and cost of moving goods via key transport corridors and border crossing points, will be key to sustain and accelerate our economic growth, especially aiding recovery in the immediate aftermath of COVID-19.

“The government is working on a 3R –Relief, Recovery and Resilience –strategy to help Nepal build back better from the impacts of the COVID-19 crisis. This project will be critical for boosting economic possibilities and enhancing trade facilitation to speed up recovery and resilience,” reads the statement.

According to the World Bank, the Strategic Road Connectivity and Trade Improvement Project supports Nepal’s connectivity and trade with neighboring countries including India. “It will improve the Nagdhunga-Naubise-Mugling road and upgrade the Kamala-Dhalkebar-Pathlaiya road to four-lane. The Project will also enhance infrastructure, facilities and sanitation at border crossing points to ease trade constraints and spur agricultural exports,” informed the statement. The bank said that amid the Covid-19 pandemic, the project will also support better screening of goods and people at border facilities, and develop guidance for special working arrangements, such as safe distancing and remote working.

“This Project supports the government’s efforts to put Nepal on the path to economic recovery amid the impacts of the COVID-19 crisis. It will help facilitate regional trade and connectivity and create jobs while ensuring safety and efficiency of the strategic roads network,” the statement quoted Hadad-Zervos as saying.

According to the World Bank, the project will also support institutional strengthening of the National Road Safety Council and the Department of Roads, and periodic maintenance of high-traffic roads within the Strategic Road Network. A contingency emergency response component is also included in the project to reallocate project funds to support emergency response and recovery.