World Bank provides Rs. 54 billion to transport safety

Kathmandu, Jul 17

The government and World Bank on Friday signed a US$ 450 million (around Rs. 54 billion) financing agreement to improve the efficiency and safety of the transportation sector.

The aid will be used in transport infrastructure and to improve efficiency of cross-border trade, and strengthen capacity for strategic road network management.

This is the single largest value project that the Government of Nepal has signed with the WB. 

The agreement was signed by Finance Secretary Sishir Kumar Dhungana and WB Country Director for the Maldives, Nepal and Sri Lanka, Faris Hadad-Zervos. Finance Minister Dr. Yuba Raj Khatiwada was also present on the occasion.

“We thank the World Bank Group for supporting this important project which will enhance connectivity and country integration along with cross border markets to support the post-COVID-19 recovery, stated Dr. Khatiwada.

“Connectivity is high on the rapid and sustainable development agenda of Nepal. Sustainable transport and sustainable, inclusive and high-quality infrastructure are of cross cutting importance for accelerating economic growth, national and regional economic integration and attaining the sustainable development goals," he said.

Dhungana said that the project, with its focus on reducing time and cost of moving goods via key transport corridors and border crossing points, would be key to sustain and accelerate country’s economic growth, especially aiding recovery in the immediate aftermath of COVID-19.

The government is working on a 3R – Relief, Recovery and Resilience – strategy to help Nepal build back better from the impacts of the COVID-19 crisis, read a joint statement issued by the WB and MoF.

This project will be critical for boosting economic possibilities and enhancing trade facilitation to speed up recovery and resilience.

The Strategic Road Connectivity and Trade Improvement Project will improve the Nagdhunga-Naubise-Mugling road and upgrade the Kamala-Dhalkebar-Pathlaiya road to four-lane. The Project will also enhance infrastructure, facilities and sanitation at border crossing points to ease the trade constraints and spur agricultural exports.

Amid the COVID-19 pandemic, the Project will also support better screening of goods and people at border facilities, and develop guidance for special working arrangements, such as safe distancing and remote working.

“This Project supports the government’s efforts to put Nepal on the path of economic recovery amid the impacts of the COVID-19 crisis. It will help facilitate regional trade and connectivity and create jobs while ensuring safety and efficiency of the strategic roads network,” said Hadad-Zervos.

The project will also support institutional strengthening of the National Road Safety Council and the Department of Roads, and periodic maintenance of high-traffic roads within the Strategic Road Network.

Published in The Rising Nepal daily on 18 July 2020.