The World Bank (WB) has agreed to provide concessional loan of 200 million US dollar under the First Programmatic Fiscal and Public Financial Management Development Policy Credit (DPC) in budgetary support and 66 million US dollar for Rani Jamara Kulariya Irrigation Scheme.
At a programme organised at Finance Ministry on Thursday, Country Director of the World Bank, Qimiao Fan, and Secretary at the Ministry of Finance, Rajan Khanal, signed the agreement to that effect.
The loan proceeds available under ‘Development Policy Credit’ will be utilized in the sector of government’s priority through national budgetary system. This policy credit is tailored with prior actions of reform in fiscal and public financial management sector. The agreement remains effective until 28th February, 2019.
According to Rastriya Samachar Samiti (RSS), the second agreement signed today is for Rani Jamara Kulariya Irrigation Scheme II which envisions modernizing irrigation system and strengthening the water user’s associations committees and agricultural production support.
In the second phase of modernization of the project, the credit amount will be utilized to complete the remaining works of ongoing project. This credit agreement remains effective until December 31, 2023.
On the occasion, the Government of Nepal has expressed its sincere appreciation to the World Bank for the concessional loan assistance and for continued support in the socio-economic development of Nepal.