KATHMANDU, May 8: The Asian Development Bank (ADB) has agreed to provide financial assistance of US$ 56.8 million (about Rs 4.80 billion) to Nepal for development of infrastructures in four municipalities.
The assistance includes loans of US$ 44.8 million and grant of US$ 12 million. Finance Secretary Krishna Hari Baskota and ADB Country Director to Nepal Kenichi Yokoyama signed the agreement to this effect on Tuesday.
According to Ministry of Finance (MoF), the fund will be used to provide better access to municipal infrastructure and services in a socially inclusive manner for people in Dharan, Janakpur, Nepalgunj and Siddharthanagar municipalities.
Under the Integrated Urban Development Project, drainage systems, solid waste management facilities and urban roads will be developed based on the priorities of each municipality, adds the statement.
The project would also implement community development programs focusing primarily on poverty pockets in the municipalities and communities that may not benefit directly from major infrastructure improvement subprojects.
The Ministry of Physical Planning and Works will be executing the project while key implementing agencies will be municipalities and the Department of Urban Development. The project will be completed by June 30, 2017.