ADB Vaccine Loan

ADB approves $165m loan for COVID-19 vaccines in the country

Aug. 10, 2021, 11:05 a.m. Published in Magazine Issue: VOL. 15, No. 02, Aug. 06, 2021 (Shrawan 22, 2078) Publisher and Editor: Keshab Prasad Poudel Online Register Number: DOI 584/074-75

In his first address to the House of Representatives, Prime Minister Sher Bahadur Deuba announced that the government’s first priority is to provide vaccine to all eligible Nepali citizens.

Although Nepal has already received over 10 million vaccines including purchasing of 5 million doses, it is hardly enough to cover one third of the population. Nepal has received vaccines from United States, China, India and Japan in the last five months under bilateral support and COVAX facility.

However, to provide vaccines to all Nepalese citizens, there is also a need huge investment. Given that circumstance, the decision of the Asian Development Bank (ADB) to approve loan is highly significant.

ADB approved a loan of $165 million for the Nepal government to purchase safe and effective vaccines against the coronavirus disease (COVID-19).

The project will support the National Deployment and Vaccination Plan in Nepal by procuring an estimated 15.9 million doses of COVID-19 vaccines, which will benefit about 6.8 million Nepalis.

"ADB's support will help the government of Nepal procure much-needed COV- ID-19 vaccines to protect its citizens from the further spread of this disease," said ADB President Masatsugu Asakawa. "It is essential that COVID-19 vaccines are quickly purchased and administered to help get the economy back on track by enabling the restoration of livelihoods and economic activities, as well as the resumption of educational and human development pursuits."

The project is financed by ADB's $9 billion Asia Pacific Vaccine Access Facility launched in December 2020 to offer rapid and equitable vaccine-related support to ADB developing member countries. Vaccines eligible for financing must meet at least one of the APVAX eligibility criteria: The vaccine has been selected for procurement through the COVID-19 Vaccines Global Access (COVAX) mechanism; the vaccine has been prequalified by the World Health Organization (WHO) or WHO emergency use listing; or the vaccine has received regular or emergency licensure or authorization by a stringent regulatory authority.

In addition to this project, ADB's ongoing technical assistance grants will support the strengthening of the vaccine delivery system, communication, and community engagement to raise awareness on the risks of COVID-19 and the benefits of vaccination. The government is mobilizing female community health volunteers to disseminate information among marginalized communities to raise awareness.

At least one female health worker or volunteer will support the effort in every vaccination site or outreach centre.

ADB is closely collaborating with other partners, like World Bank, COVAX, WHO, and the United Nations Children's Fund (UNICEF), in supporting the government in its efforts to vaccinate its people as soon as possible.

The project will complement the government's broader response through its $1.2 billion National Relief Programme, which consists of social protection, health care, and economic relief measures. In May last year, ADB provided support to the programme through a $250 million concessional loan.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.

Established in 1966, it is owned by 68 members - 49 from the region.

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