ADB has so far invested $3.9 billion in various projects in Nepal.
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The Asian Development Bank (ADB) has announced an additional $2.4 billion in lending to Nepal over the next four years.
The bank's President Masato Kanda made the announcement on Tuesday after meeting Prime Minister Balendra Shah in Kathmandu.
'Nepal is at a critical juncture with opportunities to build a more dynamic and stable economy,' Kanda said. 'ADB is becoming Nepal's largest multilateral development partner and we expect our support to reach an additional $2.4 billion by 2029. Our goal is to provide results-oriented support that creates jobs, strengthens businesses, and improves Nepal's living standards.'
The loan is coming in line with the Country Partnership Strategy (CPS) agreement signed earlier between Nepal and ADB. The agreement stated that this five-year plan would be implemented from 2025 to 2029.
ADB has so far invested $3.9 billion in various projects in Nepal.
During the meeting, Kanda congratulated Prime Minister Shah on being elected with a strong mandate. He reiterated ADB's commitment to support the government's ambitious economic transformation, job creation, and investment.
"With the new loan support through 2029, ADB will be Nepal's largest development partner. This will help translate the Prime Minister's plan into results," the ADB said in a statement.
The statement said ADB has worked with the Government of Nepal in various areas including safe schools, clean energy, strong infrastructure, and better opportunities for the past 60 years.
During Kanda's visit, ADB also signed two loan agreements in line with its annual commitment. Under which Nepal will receive a total of $165 million in concessional loans.
The Rs 115 million project will focus on reliable, safely managed drinking water and sanitation. It aims to serve more than 850,000 people.
Similarly, a Rs 50 million policy-based loan scheme will modernize Nepal's border trade system. It includes digitalization and simplification of processes to reduce costs for businesses, increase efficiency and enhance competitiveness.
According to the Prime Minister's Press Advisor Deepa Dahal, during the half-hour meeting between the Prime Minister and the ADB President, the Prime Minister said that Nepal would make good progress in development, good governance and transparency in the coming days.
She said that the two sides also had positive discussions on promoting hydropower and tourism, building tourism-related road infrastructure and collaborating on digitalization.
Kanda reiterated ADB's commitment to increasing development assistance in Nepal during the meeting.
