Prime Minister Pushpa Kamal Dahal calls for concessional loan policy from AIIB

KATHMANDU: Prime Minister Pushpa Kamal Dahal 'Prachanda' has emphasized the need for the Asian Infrastructure Investment Bank (AIIB) to establish a policy framework for providing concessional loans to Nepal.

During a courtesy meeting with a delegation led by RMP Rathnayake, the AIIB director, the Prime Minister highlighted Nepal's requirement for concessional borrowing, expressing concern over the absence of such a facility within AIIB's lending mechanisms.

He emphasized that the current market-rate pricing structure poses constraints on Nepal's access to AIIB financing. In this regard, he urged the policymakers to deliberate on this matter.

Asserting the government's commitment to achieving high economic growth while ensuring good governance, institutional development, social justice, and prosperity, the Prime Minister sought AIIB's support in financing, technical assistance, knowledge sharing, and leveraging private capital.

PM Dahal noted that AIIB has invested in a few energy sector projects in Nepal but highlighted the vast potential for investment in hydropower, tourism, information technology, and other infrastructure projects.

He urged AIIB to consider investing in these sectors, especially in light of Nepal's plans to export 10,000 megawatts of electricity to India and Bangladesh, which opens up opportunities for energy trade.

Furthermore, Prime Minister Dahal informed the delegation about the upcoming Third Nepal Investment Summit (NIC) scheduled for April 28-29 and expressed hope for high-level participation from AIIB to foster an investment-friendly environment in Nepal.

Highlighting Nepal's revised policies aimed at promoting private and foreign investment, the Prime Minister encouraged AIIB to invest confidently in Nepal.

In response, Rathnayake assured that AIIB prioritizes Nepal as a founding member and is keen on increasing its investment in Nepal's development endeavors. The delegation, led by Rathnayake, included AIIB vice presidents and other senior officials.