World Bank to provide Rs. 52.75 billion for road upgradation projects

The World Bank has agreed to provide concessional loans of Rs 52.75 billion to Nepal.  Nepal Government and World Bank signed concessional financing agreements for Rs 34.96 billion equivalent to USD 275 million for Accelerating Nepal’s Regional Transport and Trade Connectivity (ACCESS) Project and Rs 17.79 billion equivalent to USD 140 million for the Digital Nepal Acceleration Project, according to a press release.

The agreements were inked by Finance Secretary, Krishna Hari Pushkar, on behalf of Nepal government, and the World Bank Country Director for Maldives, Nepal, and Sri Lanka, Faris Hadad-Zervous in the presence of Finance Minister Janardan Sharma and WB Vice President for South Asia, Martin Raiser, states the  press release issued by World Bank Nepal. 

“The projects will help unlock Nepal’s economic potential through better connectivity and trade, enhanced digital engagement among people and business, and to access to regional markets to support the socio-economic development in an inclusive manner,” remarked Finance Secretary Pushkar while signing the agreement.

Under the ACCESS Project, the 69 kilometers two-lane section of the Butwal-Gorusinghe-Chandrauta road along the East-West Highway will be upgraded to a climate-resilient four-lane highway. 

“With a focus on ensuring better road safety, the project is expected to reduce travel time by 30 percent, thus providing better access to India’s western seaports.”  The project will construct at least three market areas with required internet and trade information facilities along the highway to help enhance economic opportunities, especially for women entrepreneurs and traders, according to the press release.

Similarly, the Digital Nepal Acceleration Project supports the implementation of the Digital Nepal Framework, the country’s digital economy strategy that was announced by the government in 2019.