The Asian Development Bank has agreed to expand its annual lending to Nepal by 70%, with a large priority to be placed on expanding hydroelectric power capacity and transmission lines in the south Asian country.
Signed during a meeting this week between ADB president Takehiko Nakao and Nepal Prime Minister Khadga Prasad discussing the nation's recovery following the devastating earthquake in April 2015, the deal sees the bank's yearly funding grow from US$300 million to $500 million.
Nakao said ADB forecasts Nepal's economy to grow up to 4.8% in Fiscal Year 2017, with work to strengthen the country's infrastructure made easier by ongoing recovery efforts and rebuilt supply lines.
"Now that the situation has normalized, the government needs to step up efforts to make up for the delayed reconstruction, as well as build fundamental capacity for project planning, implementation and monitoring," Nakao said.
Nepal has been active in working with a number of international lending institutions in recent years to help bolster its hydro assets.
Most recently, HydroWorld.com reported earlier this month that Nepal had signed a loan agreement with the World Bank Group to implement its Power Sector Reform and Sustainable Hydropower Project.
The ADB is also helping the Nepal Electricity Authority (NEA) rehabilitate the 1-MW Tinau plant near Butwal.
For more business and finance news, visit here.