Country raises 30b internal and 26.46b external loans

The country has raised Rs 30 billion in internal and Rs 26.46 billion in external loans till January 14, 2023, it is stated in the half-yearly review of the budget of the current fiscal year 2022/23 released on Sunday.

Similarly, the government has received foreign grants worth Rs 8.12 billion during the same period. Government mobilizes internal and external loans and foreign grants for the implementation of annual policies and programs.

According to the Ministry of Finance, discussions are being held with different development partners for the mobilization of development assistance for the current fiscal year and the coming fiscal year. The half-yearly review report stated that initiatives are underway for loans and grants with more than two dozen of development partners.

The government has been taking initiative to take a Rs 39 billion concessional loan from the Asian Development Bank for the implementation of the Kakadbhitta-Laukahi road section. Discussion with the World Bank to get this loan is underway, according to the Finance Ministry.

Similarly, the government is preparing to take a Rs 13 billion subsidized loan for the School Sector Reform Programme as well as a Rs 13 billion subsidized loan for Quality Health System Project from the World Bank. It is said that the project document has already been prepared to get this loan assistance.

The Finance Ministry mentioned in the review report that a subsidized loan for budgetary assistance of around Rs 13 billion is going to be taken from the World Bank under Nepal Fiscal Reforms DPC-2 Programme as well as preparation is underway to take budgetary assistance worth around Rs 13 billion under 'Finance for Growth' program.

The Asian Development Bank has already given initial consent for the implementation of the 635-MW Dudh Koshi Storage Hydroelectric Project. "The Asian Development Bank has given hint to provide around Rs 75.40 billion subsidized loan for the implementation of the project. Coordination is underway to collect the investment from other donor agencies in the project," mentioned the review report.

Similarly, homework is on to secure a subsidized loan worth US Dollars 500 million (around Rs 65 billion) to implement the 1061-megawatt Upper Arun Reservoir-based Hydropower Project.

In addition to this, the government is coordinating with other probable investors for the project to manage the remaining funds required to undertake the project.

For the implementation of the Customs Reform and Modernization Strategies and Action Plan, the government is in the course of receiving a loan of around Rs 6.50 billion in subsidy from the Asian Development Bank.

Moreover, the government is making preparations to get a soft loan worth Rs 13 billion from the ADB to implement public finance management and service delivery reform program.

Discussions are underway regarding a draft of the Memorandum of Understanding to secure around Rs 14.40 billion in grants from the British Government to undertake the Local Infrastructure Support Programme.

Besides this, Nepal is to take a loan worth Rs 1.19 billion from the ADB for the implementation of the Rural Roads Improvement Programme.

The government is in touch with some of its development partners and donor agencies to receive foreign assistance.

It reaches the phase of collecting submissions from the Ministry of Law, Justice, and Parliamentary Affairs regarding obtaining 40 million Euros from the European Union for the implementation of the School Sector Reform Project and projects in other areas.

The EU has been urged to provide Rs 15.06 million in grants to Nepal for the support of agricultural and rural development endeavors.