April 13, 2024, Saturday
Nepal 1:37:26 pm

PM asks AIIB to provide soft loan to Nepal

The Nepal Weekly
March 26, 2024

Prime Minister Pushpa Kamal Dahal “Prachanda” has requested the Asian Infrastructure Investment Bank (AIIB) to ensure a policy for providing concessional loans to Nepal. 

During a courtesy meeting with a delegation led by RMP Rathnayake, the AIIB director, the PM Prachanda said, “Nepal still needs concessions in borrowings as AIIB does not have such a window. In fact, this market rate pricing is restricting Nepal from accessing AIIB financing. As you are one of the policy makers of the bank, I urge you all to consider this,” according to the PM’s office.

The PM said that the government is focused on achieving a high economic growth target simultaneously with good governance, institutional development, social justice and prosperity. He expressed hope for AIIB’s support in financing, technical assistance, knowledge-sharing and mobilizing private capital in this process.

Currently there are a few projects under AIIB investment in Nepal in the energy sector and there is a huge possibility for investment in hydropower, tourism, information technology and other infrastructure projects, pointed out the PM. He requested the AIIB to consider investing in these areas. “It has been agreed to export 10,000 megawatts of electricity to India and Bangladesh as well. This has paved a way for Nepal’s energy trade,” he pointed out.

Recalling Nepal’s plan to host the Third Nepal Investment Summit ( NIS) next month (April 28-29), the Prime Minister expressed his hope that there would be a high-level participation from the AIIB in the event, that would contribute to building an investment-friendly atmosphere for  areas of priorities in  Nepal.

During the meeting, Rathnayake said AIIB accorded top priority to Nepal as being its founding member and the Bank is positive for increasing its investment in its development endeavours.