Nepal uses only half of the funding pledged by the ADB

Kathmandu, Nov. 20

Nepal has utilised slightly more than the half of the funding pledged by the Asian Development Bank (ADB) till October this year.

Of the net available funding amount of USD 2.96 billion spread over 31 investment projects and two programme loans, 54 per cent has been contracted out and 55 has been disbursed in the first 10 months of 2019, said the ADB at the Tripartite Portfolio Review Meeting of ADB-supported projects in the country.

The government and ADB organised the periodic review of the collaboration to improve project implementation and achieve timely and effective development results on the ground.

However, according to the multilateral donor, disbursed USD 227.3 million in the first ten months of this year is higher compared to the same period last year.

“Challenges remain in ensuring speed and efficiency in project delivery, and such review meetings provide an excellent platform to highlight key issues of project implementation and agree on critical actions,” said Secretary (Revenue) Sishir Kumar Dhungana.

He said that the executing and implementing agencies should be more sensitive for timely completion of the projects to get the expected results on the ground.

ADB has recently approved its latest country partnership strategy for Nepal, 2020–2024, which focuses 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 USD 500 million to USD 600 million on average during 2020–2022.

“As the volume of lending increases and the portfolio grows in the future, it is even more important that we pay attention to timely contract awards and disbursements. Successful project implementation is key to bringing results on the ground and improving the lives of Nepali people,” said Khamudkhanov.

“ADB will continue to help executing and implementing agencies strengthen their capacity to plan, design, and implement ADB projects,” he added.

The multilateral donor appreciated the partnership with the government and leadership of the Ministry of Finance in improving project implementation and timely development outcomes.

Khamudkhanov said that the Gautam Buddha International Airport in Bhairahawa which was under the South Asia Tourism Infrastructure Development Project wass a good example of how leadership and improved implementation arrangement can positively impact the progress of a project.

"It is one of the projects that has met both its contract awards and disbursement targets for this year,” He said.    

Published in The Rising Nepal daily on 21 November 2019.