November 25: Agreement with Asian Development Bank

Asian Development Bank has agreed to provide a loan assistance of SDR 38.921 million (equivalent to NRs 5.78 billion) and grant assistance of US$ 1.3 million (equivalent to NRs 12.74 crores)  to the Government of Nepal for the implementation of Third Small Town Water Supply and Sanitation Project in Nepal. The Agreement to this effect was signed today at the Ministry of Finance.

The main objective of this project will be to fund the physical investments in water supply and sanitation infrastructure in selected small towns as well as non-physical investment in the strengthening of sector policy, regulatory and institutional capacity, service delivery and project management.

The main expected outputs of the project include (i) upgrading and construction of water supply system for 26 small towns (i.e. Ilam, Charaali, Mahendranagar of Sunsari, Bhojpur, Diktel, Sakhuwa Mahendranagar of Dhanusha, Katari, Mirchaiya, Bidur, Dumre, Lalbandi, Charikot, Birendranagar of chitawan, Chainpur, Kathariya, Aabukhaireni, Tamsariya, Babiyachaur, Nirmalpokhari, Tikapur, Chandrauta, Salyan, Musikot, Suda and Liwang) (ii) and construction of approximately 20300 additional private toilets with septic tanks.

Ministry of Urban Development and Town Development Fund are the implementing agencies. The project is expected to be completed by 31 January 2021.

The Agreements was signed by Mr. Suman Prasad Sharma, Secretary, Ministry of Finance and Mr. Kenichi Yokoyama, Country Director on behalf of the Government of Nepal and Asian Development Bank, respectively.

The Government of Nepal has expressed its sincere appreciation to the Asian Development Bank for this assistance and for the continued support in the socio-economic as well as infrastructural development of Nepal.

Ministry of Finance

Singhdurbar

Tuesday, 25 November 2014