Government signs grant, loan mobilisation pacts worth $1.82bn

Government signs grant, loan mobilisation pacts worth $1.82bn

The government has signed a grant and loan mobilisation agreements worth $1.82 billion with various development partners for post-earthquake reconstruction works.

The development partners had pledged $4.1 billion to help support the country’s reconstruction drive during the International Conference on Nepal’s Reconstruction (ICNR) held here on June 25 last year.

Following the ICNR event, the government had started signing grant and loan mobilisation agreements with the development partners. According to the International Economic Cooperation Coordination Division (IECCD) under the Ministry of Finance, it has signed agreements for cooperation with 11 donors to mobilise grant worth $1.08 billion and soft loan worth $764.13 million.

Multilateral development agencies, the World Bank Group and Asian Development Bank (ADB), have made commitments to provide $300 million and $200 million, respectively. Of the total of $300 million, the World Bank Group will extend $100 million as budget support. There is no specific area or programme on which the government will have to spend the aid received as budget support.

Similarly, the government has obtained $50 million from the International Monetary Fund (IMF). The government had approached the IMF for rapid credit facility to address the urgent balance of payments and fiscal needs associated with the rehabilitation and reconstruction efforts in the aftermath of the devastating earthquake of last year.

Apart from multilateral development agencies, the government has signed grant and loan mobilisation agreements with bilateral development partners as well. Bilateral development partners have made commitment of $1.07 billion as grant aid for the country’s reconstruction drive.

The government will be able to mobilise grant worth $489.6 million from the Chinese government.

Similarly, $250 million grant aid is being provided by India. The United States is providing grant worth $130 million for post-quake reconstruction activities.

Likewise, the government will be able to mobilise grant worth $118.37 million from the European Union, $15.34 million from the UK government and $34 million from the German government. The government will mobilise development assistance worth $247.07 million from Japan, which has both loan and grant components of $214.13 million and $32.94 million, respectively.

Source: THT