Shreekrishna Nepal, Joint Secretary at the Ministry of Finance and Mukhtor Khamudkhanov, Country Director, Nepal Resident Mission of ADB signed the agreement for a US 50 million equivalent to Rs. 5.95 billion to finance Civil Aviation Sector Improvement Program.
The money will be used to strengthen the aviation safety oversight capabilities and operational efficiencies of Nepal.
“ The fund will be used for the establishment of legal and implementation framework of civil aviation sector reforms and establishment and functionalisation of civil aviation related agencies, including Civil Aviation Authority, Nepal (CAAN) and Air Service Authority of Nepal (ASAN),” states Ministry of Finance in its press release.
“The support shall be vital for the country to enhance its airport capacity since it is undertaking various civil aviation sector reform initiatives from the loan,” said Nepal.
“Strengthened oversight functions and airport management through the civil aviation reforms will help the government to improve substandard airports services, contributing to international tourism development that will ripple across the whole economy,” said Khamudkhanov.
“The quick disbursing program loan will also assist the government in securing external fiscal financing to mitigate economic and social shocks caused by COVID-19.”