A concessional loan worth 21.23 billion rupees (one hundred and fifty-seven million US dollars) between the Government of Nepal and the Asian Development Bank (ADB) for the implementation of the Mechanized Irrigation Innovation Project (MIIP) and the Climate Resilience and Livelihood Project (CRLP) The grant agreement has been signed.
According to the agreement reached at the Ministry of Finance on Wednesday, ADB will provide a loan of 14.88 billion rupees (110 million US dollars) and a subsidy of 2 billion rupees (15 million US dollars) for the project. Likewise, a loan of 1 billion 35 million rupees (10 million US dollars) and 2 billion 97 million rupees (22 million US dollars) of grant agreement has been signed for climate uplifting and livelihood projects. The agreement was signed by Finance Secretary Ram Prasad Ghimire and ADB Country Director Arno Koshwa.
Advanced irrigation technology will be applied under the mechanical irrigation project to be implemented in Rautahat and Sarlahi districts of Madhesh province. In which the farmers will be provided the facility to use water according to their needs through 'prepaid card'. It is believed that more than 121 thousand farmers will benefit from this project. The main objective of the project is to increase the productivity of agriculture, ensure irrigation throughout the year and promote food security.
Similarly, the Climate Uplifting and Livelihood Project will be conducted with the aim of making the rural communities of Karnali and Sudurpaschim provinces resistant to the effects of climate change. It is expected to contribute to solving drinking water problems, promoting nature-based livelihoods and empowering local communities through sustainable water management, agroforestry and forest management.
After signing the agreement, Finance Secretary Ghimire said that through this project, advanced irrigation technology and sustainable water management will help in food security as well as in dealing with the effects of climate change. ADB's Country Director Koshwa, while discussing the features of these projects and the contribution they will bring to Nepal's economic sector, promised that ADB will always support Nepal in the fields of climate adaptation, agricultural productivity and water security. He expressed the belief that these agreements will prove to be an important milestone for Nepal to achieve sustainable development and deal with the challenge of climate change.
