Japan to provide grant, loan assistance of Rs. 16.2 billion

Kathmandu, Sept. 21

Governments of Nepal and Japan have signed two agreements for utilizing grant assistance for project to improve and rehabilitate irrigation in Terai, and urban transmission and distribution.

The programmes include Japanese Yen 2 billion and 256 million (about Rs. 2 billion) for the implementation of the Project for the Improvement of the Rehabilitation of Irrigation System in Eastern Terai Area; and the concessional credit of Yen15 billion and 901 million (about Rs.14.2 billion) for the Urban Transmission and Distribution System Improvement Project.

“The grant assistance will be used for the maintenance and improvement of Chandra Nahar irrigation system for reliable and continuous irrigation facilities, mainly in the Eastern Terai region,” said the Ministry of Finance in a statement on Wednesday.

Similarly, the concessional credit will be utilised for improving the urban electricity transmission system in the big cities of Nepal, including Kathmandu and Pokhara with the aim of reducing transmission losses as well as increasing the reliability of electricity distribution. The credit assistance applies interest rate of 0.01 per cent per annum, 30 years’ repayment period and 10 years’ grace period.

Finance Secretary, Krishna Hari Puskar and Ambassador of Japan to Nepal, Kikuta Yutaka signed and exchanged the Notes and Records of Discussion on behalf of their respective governments.

Similarly, grant and credit agreements to this effect were signed by Ishwori Prasad Aryal, Joint Secretary and chief of the International Economic Cooperation and Coordination Division of the MoF and Okubo Akimitsu, Chief Representative of JICA Nepal.

Puskar said that the implementation of these two projects would be crucial for improving irrigation facilities in Nepal, increasing the reliability of electricity supply and reducing the transmission losses.

 Acknowledging the long-lasting and harmonious bilateral relations and development partnership between two countries, he expressed his confidence that such relation will continue in new height. 

Published in The Rising Nepal daily on 22 September 2022.