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World Bank assures increased investment in Nepal

The World Bank has assured Nepal increased assistance to help the country graduate to a developing country by 2022.

While returning from two-week long US and Mexico visit – to take part in the World Bank’s programmes – today finance minister Dr Ram Sharan Mahat said that development partners are ready to increase assistance to Nepal to help the country graduate as a developed nation by 2022.

He said that the World Bank is preparing a four-year country partnership strategy to support Nepal in key areas of the development.

Currently, some 20 development projects are running with financial support of Rs 23 billion from the World Bank.

“The World Bank group will increase its assistance in infrastructure development and employment generation,” Mahat said, adding that development partners are optimistic about improved investment climate – in Nepal – following the second Constituent Assembly (CA) election.

The World bank is going to increase assistance to Nepal under IDA 17 that will not only help infrastructure development but also create employment, he added.

Similarly, International Finance Corporation (IFC) – the private sector lending of the World Bank – has also committed Rs 600 billion in developing hydropower projects with total installed capacity of 3,000 megawatts, the finance minister added. “IFC has also assured of investment in tourism and telecommunication sectors.”

IFC has already invested in the 38-MW Kabeli. Likewise, IFC has also expressed interest to invest in 213-MW Upper Trishuli, 600-MW Upper Marsyangdi, 900-MW Upper Karnali and 900-MW Arun III hydropower projects.

Mahat had held separate meetings with World Bank managing director Mulyani Indrawati, vice president for the South Asia region Philippe Houerou and executive vice president of IFC Jin Young Cai during his week-long Washington DC visit.

Mahat also took part in the high level seminar addressed by the UN general secretary Ban ki-Moon and advocated for increased climate financing.

Developed countries have been already set up a fund worth $30 billion to cope with the impact of climate change.