A meeting of World Bank Group’s (WBG) board of executive directors approved $100 million budgetary assistance for Nepal. It was the last series of ‘Financial Sector Stability Development Policy Credit’ which was initiated back in the year 2013.
The World Bank Group (WBG) has been extending budgetary support under two headings:
- Financial Sector Stability Development Policy Credit
- Fiscal and Public Financial Management Development Policy Credit
Recently, the multilateral bank added another sector — ‘Energy Efficiency’, under which the country can obtain the budgetary support from the WBG in the energy sector.
While this is the fourth phase of support under ‘Financial Sector Stability Development Policy Credit’, Nepal has availed $200 million as the first phase of support under ‘Fiscal and Public Financial Management Development Policy Credit’. The country is likely to receive $100 million budgetary assistance under ‘Energy Efficiency’ in the future.
According to the officials of the Ministry of Finance, the World Bank’s board of executive directors also approved Nepal’s proposal and have committed to provide $100 million under the energy efficiency development policy credit. To avail this assistance, the country has to develop the Environmental Impact Assessment Guidelines, the action plan for the electricity development, set up electricity regulatory commission and initiate other numerous legal and procedural reforms in the energy sector.
During the discussion on country partnership framework in World Bank headquarters, Finance Minister, Dr. Yuba Raj Khatiwada highlighted that the World Bank’s strategy to support the country’s goal of giving every Nepali equal access to security, justice, good governance, basic services, and an opportunity to participate in future prosperity is commendable. The finance minister stressed that the new partnership strategy with the World Bank Group is focused on supporting Nepal’s transition to federalism, fits squarely within the country’s vision and underpins a Nepali-owned model.
Reference: The Himalayan Times