ADB releases new 5-year CPS for Nepal, aims to lend upto $600m in next 3 years

Kathmandu, Oct. 11

The Asian Development Bank (ADB) has released a new 5-year Country Partnership Strategy (CPS) for Nepal with commitment to help the country achieve its goal for a stronger and more inclusive economy.

The Nepal CPS for 2020–2024, endorsed by ADB’s Board of Directors on Friday, will focus on three priority areas: improved infrastructure for private sector-led growth, improved access to devolved services, and environmental sustainability and resilience.

Under the new strategy, ADB expects to lend an estimated $500 million to $600 million on average during 2020–2022.

“With the political stability and the federal system of governance in place, Nepal is poised to bring about the desired economic and social transformation,” said ADB Country Director for Nepal Mr. Mukhtor Khamudkhanov.

According to him, the new CPS is aligned with the government’s plan of achieving higher economic growth, reducing poverty, and improving people’s lives.

“Nepal has seen reduced poverty and raised literacy levels in the last decade. Now, moving forward, smooth implementation of federalism, investments in critical physical infrastructure, and creating an environment for private sector investments are critical to further boost growth and reduce poverty,” said Khamudkhanov.

Under the new CPS, ADB will support hydropower development and renewable energy, roads and air transport, logistics, and trade facilitation to strengthen domestic, regional, and international connectivity; reduce the costs of production and trade for businesses; and attract private investment.

The CPS will help support development of cities and urban municipalities, quality education and employment-oriented skills development, and increased agriculture productivity and commercialization to augment rural incomes. These will be targeted to benefit women and disadvantaged social groups, said the multilateral donor.

In all its development programs and projects, ADB will continue to prioritize gender equality and social inclusion, as well as disaster resilience and environmental sustainability.

“ADB will assist with policy reforms for devolved service delivery, including subnational public financial management; and sector reforms in agriculture, air transport, and water supply. Knowledge and development of institutional capacity, especially at subnational levels, will be emphasized,” said the bank.

Published in The Rising Nepal daily on 12 October 2019.