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  Japan providing Rs 16 bn for improving irrigation system and urban transmission distribution system

The Government of Nepal and the Government of Japan signed two agreements for utilizing a grant assistance of Rs 2 billion (Japanese Yen 2,256,000,000) for the implementation of the Project for the Improvement of the Rehabilitation of Irrigation System in Eastern Terai Area; and a concessional credit of Rs 14.2 billion (JPY 15,901,000,000) for the Urban Transmission and Distribution System Improvement Project.

According to the Ministry of Finance, the grant assistance will be used for the maintenance and improvement of the Chandra canal irrigation system for reliable and continuous irrigation, mainly in the Eastern Terai region. “Similarly, the concessional credit will be utilized for improving the urban electricity transmission system in the big cities of Nepal, including Kathmandu and Pokhara with the aim of reducing transmission losses as well as increasing the reliability of electricity distribution,” reads a statement issued by the ministry. The credit assistance applies an interest rate of 0.01% per annum, 30 years’ repayment period and 10 years’ grace period.

Finance Secretary Krishna Hari Puskar and Ambassador of Japan to Nepal, Kikuta Yutaka signed and exchanged the notes and records of discussion on behalf of their respective governments. Similarly, grant and credit agreements to this effect were signed by Ishwori Prasad Aryal, joint secretary, the International Economic Cooperation and Coordination Division of the Ministry of Finance and Chief Representative of JICA Nepal, Okubo Akimitsu.

Speaking at the signing event, Finance Secretary Puskar said that the implementation of these two projects would be crucial for improving irrigation facilities in Nepal, increasing the reliability of electricity supply and reducing the transmission losses.

[21 September, 2022 / nagariknetwork.com ]   
 
 
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