KATHMANDU, April 11: The Asian Development Bank (ADB) has forecasted 5.5 per cent of Gross Domestic Product (GDP) growth in Nepal in the coming fiscal year 2018/19.

The ADB made this higher forecast hinges on the assumption of normal monsoon and acceleration of ongoing mega projects. It may be noted that the Upper Tamakoshi Hydropower Project of 456 megawatt will likely be added to the national grid by coming fiscal year, ending the country’s reliance on power import at least during the rainy season.

The Edition of Macroeconomic Update of Asia, the main annual publication of ADB, released here today, expected Nepal’s economy to grow at a slower pace of 4.9 per cent in current fiscal year from 6.0 per cent in previous fiscal year weighed down by floods of August 2017 and the erosion of base effect.

On the occasion, ADB Country Director for Nepal, Makhtor Khamudkhanov said, “Production of summer crops like maize and millet is expected to increase in fiscal year 2017/18 as compared to the previous fiscal year while the industrial grow rate is estimated to go down.”

Even with increased capacity utilization of industries, industrial growth is set to be lower in current fiscal year from the high rate in previous fiscal year, largely due to low investment in the manufacturing sub-sector for years owing to political instability and structural bottlenecks, reads Macroeconomic Update.

He said, “Substantive growth in government expenditures and moderate upticks in investment would drive growth in current fiscal year and government expenditures have increased significantly this fiscal year partly for local, provincial and parliamentary elections. Additionally, the government has appointed fiscal transfer of Rs 232.2 billion (about 8.0% of GDP) to local and provincial governments under the federal structures of governance.”

Similarly, average annual inflation is expected to rise moderately to 5.5 per cent in current fiscal year 2017/18 from 4.5 per cent in previous fiscal year. This is below the inflation target of 7.0% set by Nepal Rastra Bank and external sector stability is vulnerable over the medium-term with slow remittance growth and rising trade deficit, he added.

The Macroeconomic Update also shed lights on the importance of agricultural commercialization in Nepal and the need for its effective implementation by addressing legal, institutional, financial and infrastructural barriers. Commercialized agriculture via contract and cooperative farming methods can be one of the major sources of revenue generation for the country if practiced on a wider scale. It will not only help generate local employment but also meet domestic demands with improved crop and livestock production and promote export potential of niche agro products. RSS

KATHMANDU, Feb 12: Asian Development Bank (ADB) has agreed to provide 100 million US dollar for Rural Connectivity Improvement Project.

An agreement to this effect was signed and exchanged at the Ministry of Finance, Kathmandu on Monday.

Shankar Preasd Adhikari, Secretary at the Ministry of Finance and Mukhtor Khamudkhanov, Country Director, Nepal Resident Mission of ADB, signed the Loan agreement on the behalf of the government of Nepal and the ADB respectively.

This project will upgrade 388 kilometers of rural roads to all-weather standards, serving the agriculture sector and bring access to 7.5 million people in 16 districts.

This project is in line with the goal of the government’s Agriculture Development Strategy signed in 2015 of encouraging commercial agriculture, increasing productivity, creating new rural jobs and increasing prosperity.

The objective of this project is to increase transport efficiency on project area. It shall improve the rural road conditions between the selected rural communities, agriculture production areas and enhance capacity of rural infrastructure agency and road users in project areas.

Similarly, ADB has also agreed to provide one million US dollar to restructure the Department of Local Infrastructure Development and Agricultural Roads into a state-of-the-art rural road agency. The project is expected to be completed by 31 January 2023.

On the occasion, Finance Secretary Adhikari on the behalf of the government expressed appreciation to the ADB for this assistance and its continued support in the socio-economic development of Nepal. RSS

KATHMANDU, Nov 27: The Asian Development Bank (ADB) is to provide loan assistance of US Dollars 150 million (approximately Rs 15.4 billion) for the implementation of Regional Urban Development Project.

Shankar Prasad Adhikari, Secretary at the Ministry of Finance, and ADB country director Mr Mukhtor Khamaudkhanov signed an agreement to this effect amidst a program at the Finance Ministry on Monday.

The project investment will cover the eight municipalities located in southern Terai and far west of Nepal that include Birgunj, Biratnagar, Siddharthanagar, Nepalgunj, Bhimduttanagar, Dhangadhi, Godawari and Shuklaphanta municipalities.

The Ministry of Urban Development is the executing agency of the project while implementing agencies are the concerned municipalities and the Kailali based office of Department of Urban Development and Building Construction. The project is expected to complete by five years (31st December, 2022).

The project will enhance urban infrastructure in the Terai region, reducing the flooding duration to less than an hour in those eight municipalities. This includes the construction and rehabilitation of 200 kilometers of storm water drains, improvement of 240 km of roads, construction of at least 40 km of footpaths, building four sanitary landfills and resource recovery centers, and construction of 20 km of sewers.

Following the signing in ceremony, Secretary Adhikari said with the completion of the project, the concerned municipalities will get sources of regular income and the completion will help maintain urban environment. On the occasion, he urged the Urban Development Ministry and its subordinate bodies to complete the project on time.

ADB country director Khamudkhanov said the ADB is ever ready to collaborate with Nepal in the implementation of Nepal Government’s national urban development strategy.

The Government of Nepal has expressed its sincere appreciation to the ADB for this assistance and its continued support in the socio-economic development of Nepal. RSS

SHARACHCHANDRA BHANDARY, Yokohama (Japan), May 5: Deputy Prime Minister and Minister for Finance Krishna Bahadur Mahara reached Japan today morning to attend the 50th annual meeting of the Asian Development Bank (ADB) Board of Directors.

DPM Mahara accompanied by five-member delegation was welcomed by Krishna Chandra Aryal, charge d’affaires of the embassy of Nepal in Japan.

The delegation includes Secretary of Finance Ministry Shanta Raj Subedi and Chief of the International Finance Assistance Coordination Division of the Ministry Baikuntha Aryal.

DPM Mahara is scheduled to meet with Senior Vice President of Japan International Cooperation Agency (JICA) and the meeting is said to focus on various aspects of mutual interest between Nepal and Japan.

He is also slated to participate in the conference of finance ministers of South Asian Association for Regional Cooperation countries. High level office bearers of the SAARC Secretariat including Secretary-General of SAARC Amjad Hussain B. Sial also reached here to take part in the meeting.

The meeting will dwell on a variety of subjects including South Asian Free Trade Area, interregional trade and investment promotion among others, informed a SAARC Secretariat official.

Meanwhile, Nepal, during a conference of ADB’s high level officials, had stressed the need for ADB and other development partners to increase assistance to elevate Nepal’s status to middle-income country by 2030.

The delegation also urged the meeting attended by ADB’s high level officials from Thailand, Myanmar, Singapore, Brunei and Malaysia to help Nepal achieve Sustainable Development Goals and in its socio-economic development, said a delegate Baikuntha.

The conference also discussed ADB’s role in its strategic partnership and policies, cooperation with private sector and making South Asia prosperous, he added. RSS

SHARACHCHANDRA BHANDARY, YOKOHAMA, May 4: Asian Development Bank (ADB) President Takehiko Nakao has said to improve the living standard of 330 million people of Asia living under the absolute poverty line is the major goal and objective of ADB.

During his talks with over 400 journalists looking after the economic beat gathered in an International Convention Venue based at Yokohama to collect news about the golden jubilee celebrations of the ADB, Mr Nakao said to build a prosperous Asia through collective efforts was the ADB goal.

Stating that Asia needs 170 billion dollar annually to develop transport, communications and energy infrastructure, the bases required for making the region economically prosperous, he said, “The ADB is committed to meeting this goal.”

Nations-to-nation partnership and cooperation along with the guarantee of sustainable development and inclusive economic growth are essential to meet the goal for prosperity, according to the ADB President.

Giving his logic that impact of urbanization had posed a challenge to clean environment, he said the green urban development was the ADB priority.

He was of the view that expansion of regional cooperation, trade diversification and integration were essential factors for the prosperity of Asia and the goal could be achieved through partnership, cooperation and coordination among the member states.

The ADB head further reiterated its commitment to be always with its member states to support in efforts aimed at fighting against climate change impact, maintaining environment balance, achieving social security and sustainable development goals.

On the occasion, he took time to share the information that the ADB was providing loan assistance up to 70 per cent to its member state in the sector of infrastructure development and the bank had sufficient capital to invest in this sector.
He commented that the One Belt: One Road (OBOR), an ambitious project forwarded by China was an effective means of developing connectivity in Eurasia therefore, the countries having less population should rethink on its feasibility.

He further said that the wind, solar, hydro and other renewable energies were the priority of the bank as it was focusing on clean energy promotion to solve the energy crisis in its member states.

To a query regarding hiking defense expenditure cutting from developmental budget by some Asian countries due to the rising tension in Korean peninsula, he thought the issue would be resolved soon contributing to establishing a peaceful and prosperous Asia.

Meanwhile, the Bank told RSS about its three projects to be effective in Nepal, namely the urban development, drinking water supply and sanitation and river improvement.

The bank is going to run a regional urban development project at a total cost of 147 million US dollar this year.

Similarly, the bank will run Bagmati River Banks Reform Project at a total cost of 40 million US dollar next year.

Likewise, ADB will begin next project entitled the Second Kathmandu Valley Drinking Water Improvement Project at a total cost of 185 US dollar in 2019. RSS