Kathmandu: Nepal and the Asian Development Bank (ADB) have formalized an agreement for a $100 million concessional loan to support the Rural Connectivity Project-Additional Financing. The loan, which amounts to approximately NPR 13 billion, aims to enhance rural road connectivity and build the capacity of rural infrastructure agencies and road users.

The agreement was signed by Finance Secretary Krishna Hari Pushkar and ADB Country Director for Nepal Arnaud Cauchois on behalf of their respective organizations. The project agreement was also endorsed by Bharat Prasad Aryal, Director General of the Department of Local Infrastructures, as well as five provincial secretaries.

The Rural Connectivity Project-Additional Financing aspires to establish and maintain year-round road connectivity across various provinces in Nepal. The initiative, encompassing the construction of all-weather roads and bridges covering a total distance of 324 kilometers in five out of seven provinces, is expected to have a transformational impact.

The Finance Secretary highlighted the project's significance in fostering year-round connectivity, especially in the context of climate change, which exposes rural communities to risks like flooding and landslides. These natural disasters can inflict damage to crucial road infrastructure. He emphasized the project's role in promoting inclusion and growth in rural areas.

ADB's Country Director for Nepal expressed optimism regarding the concessional loan's contribution to improving rural connectivity and enhancing infrastructure in the country. He commended ADB's ongoing support for Nepal's socio-economic development.

This concessional loan agreement between Nepal and ADB signifies a critical step in advancing rural infrastructure and connectivity, fostering economic development and inclusivity in the nation.