Kathmandu, Jul 9
The Government and Asian Development Bank (ADB) have
signed a new US$ 50 million policy based lending agreement on Thursday to
finance the Civil Aviation Sector Improvement Programme.
Shreekrishna Nepal, Joint Secretary at the Ministry of
Finance and Mukhtor Khamudkhanov, Country Director, Nepal Resident Mission of
ADB signed the agreement for loan equivalent to Rs. 5.95 billion.
The principal objectives of the programme are to
strengthen the aviation safety oversight capabilities and operational
efficiencies of Nepal.
“The scope of programme includes establishment of
legal and implementation framework of civil aviation sector reforms and establishment
and functionalisation of civil aviation related agencies, including Civil
Aviation Authority, Nepal (CAAN) and Air Service Authority of Nepal (ASAN),”
said the MoF.
According to Nepal, the support shall be vital for the
country to enhance its airport capacity since it is undertaking various civil
aviation sector reform initiatives from the loan.
Khamudkhanov said, “Strengthened oversight functions
and airport management through the civil aviation reforms will help the
government to improve substandard airports services, contributing to
international tourism development that will ripple across the whole economy”.
The quick disbursing programme loan will also assist
the government in securing external fiscal financing to mitigate economic and
social shocks caused by COVID-19, he added further. The loan agreement is said
to be effective after 30 days of the signing of this agreement.
The programme is expected to complete by 30 June,
2023.
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