Nepal and Asian Development Bank (ADB) have signed US$ 150 million concessional loan agreement to finance South Asia Sub Regional Cooperation (SASEC) Airport Capacity Enhancement Project and US$ 40 million concessional loan and US$10 million grant for the implementation of Priority River Basins Flood Risk Management Project.
According to a press release issued by the Ministry of Finance, Shreekrishna Nepal, Joint Secretary at the Ministry of Finance, and Rudi Louis Hendrikus Van Dael, Officer-in-charge, Nepal Resident Mission, ADB signed the agreement on behalf of their respective institutions.
As per the agreement, ADB will provide concessional loan worth US$150 million for the Airport Capacity Enhancement Project.
This project will enhance the airport capacity by constructing parallel taxiway extension, hanger apron and next phase work design of Tribhuwan International Airport (TIA) and construction of second terminal building at Gautam Buddha Airport (GBA).
Likewise, the ADB will provide concessional loan worth US$ 40 million and US$ 10 million grant for said Priority River Basins Flood Risk Management Project.
The project will contribute toward improving flood protection infrastructure, enhanced flood forecasting and response system and improve flood prevention and preparedness capacity, read the press statement.
Addressing the signing program, Nepal said “The implementation of these programs will significantly contribute to the national economy by increasing the existing capacity of Nepal's airspace and flood protection infrastructure.”
ADB officer-in-Charge Rudi said, "Both the projects can contribute to delivering important results to the people of Nepal. The flood risk management project will improve disaster resilience and make lives safe. The airport project will contribute to improve connectivity, leading to economic growth, once the pandemic is stabilised”.