“The assistance includes a grant component of 50 percent and will allow the government to focus on priority infrastructure development like roads, energy, telecommunication, water supply, and social reforms,” said ADB President Haruhiko Kuroda. [break]
Kuroda, however, tagged political uncertainty and lingering peace process as one major challenge facing development.
“It has held back economic progress in Nepal, especially impeding the country from reaping benefits of locating between fastest growing India and China,” he said and stressed on the need for earliest conclusion of constitution writing and peace process to end such a situation.
Talking to media persons at the conclusion of his four-day visit, Kuroda further raised concerns over widening disparity. He stated that Nepal needs to do more to ensure that the most vulnerable benefit from social and economic gains.
“Maintaining stability and implementing reforms to improve the investment climate will help Nepal achieve much stronger growth than the past,” he said, emphasizing on good governance for attracting investment and generating employment.
Kuroda who made field trips to various ADB-assisted projects in Lumbini and the surrounding areas said that ADB was ready to assist in the development of Lumbini region, particularly in expanding airport and improving roads connectivity.
“Lumbini has great potential to lure more business people. We are eager to improve better transport connectivity to facilitate such movements,” said Kuroda.
Currently, ADB is implementing the South Asia Tourism Infrastructure Development Project, under which it is supporting development and improvement of infrastructure and services in Lumbini.
Kuroda also stressed on inclusive growth and skills development for employment. He also emphasized on the need for agricultural development -- particularly improvement in markets connectivity, appropriate financial mechanism and education to the farmers to master new technology and ways of farming -- to address child malnutrition and food insecurity.
He said that ADB takes Nepal as an important member of South Asia and hence has been pledging one of the highest per capita assistance to the country.
“If Nepal could address its transportation and power infrastructure deficiencies, its economy can grow at higher rate of as much as 8 percent,” he said, giving emphasis on the need to make substantial investments in infrastructure development.
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