World Bank allocates Rs 26.51 billion for Nepal's development projects

KATHMANDU: The World Bank has greenlit Rs 26.51 billion in fresh funding for two key projects in Nepal, aimed at fostering Green, Resilient, and Inclusive Development (GRID) while bolstering the country's provincial and local road infrastructure.

Faris Hadad-Zervos, World Bank Country Director for Nepal, Sri Lanka, and the Maldives, affirmed the institution's dedication to Nepal's sustainable development goals. The financing, sanctioned by the World Bank's International Development Association (IDA), underscores a commitment to enhancing infrastructure and services for the populace.

The World Bank Headquarters' press release outlined the allocation of Rs 13.25 billion for the Second Fiscal Policy for Growth, Recovery, and Resilience Development Policy Credit. This initiative targets bolstering revenue collection, streamlining debt management, and enhancing debt transparency.

It also advocates for reforms to bolster climate-resilient infrastructure investment, reduce Nepal's minimum foreign direct investment (FDI) threshold, and facilitate automation to streamline FDI processes.

Similarly, an equivalent amount has been earmarked for the Provincial and Local Roads Improvement Programme. This funding will underpin the implementation of a holistic program dedicated to advancing Nepal's provincial and local road networks. It aims to enhance service delivery efficiency, fortify the resilience of selected provincial roads and bridges, and ensure communities' safe access to markets and services.

This inaugural phase of the program will roll out across Madhesh, Karnali, and Sudurpaschim Provinces, as well as local levels, with the potential for future scalability, according to the press statement.