WB DISCUSSES NEW NEPAL STRATEGY

WB DISCUSS NEW INVESTMENT STRATEGY FOR NEPAL WITH LIKELIHOOD OF $460 MILLION INVESTMMENT
Kathmandu, 17 Sept : The World Bank´s (WB´s) Board of Directors in Washington DC on Friday discussed it new assistance strategy with likelihood of Nepal receiving getting $460 million from the Bank and International Development Association (IDA) and International Finance Corporation (IFC) for the next two years.

IDA is the concessionary lending arm of the WB Group, while IFC is the private sector arm.
With the political ransition, WB has developed Interim Strategy Note (INS) for Nepal for fiscal years 2012 and 2013.
“Development programs in the new strategy are consistent with the country´s three year plan,” a statement said.
The WB Group welcomed ‘impressive progress’ made in social development indicators, despite the challenging political environment.

The new strategy emphasizes government’s goal to build a peaceful, prosperous and just Nepal.

One goal focuses enhancing connectivity and productivity for growth.
The second aims to reduce vulnerabilities and improving resilience, while another concentrates on promoting access to better quality services.
“Governance, accountability, gender equality and social inclusion are themes that run across all three pillars,” a statement said., and disaster management.
“IDA´s assistance program will help improve food security, reduce malnutrition, especially among pregnant women, improve immunization coverage of children and enhance the access to and the quality of education,” the statement quotes Ellen Goldstein, World Bank Country Director for Nepal and Bangladesh, as saying.

It will also assist in removing key bottlenecks to higher economic growth and more jobs through investments in roads and bridges, and the energy sector, she added.

IFC will support improving access to finance and investment climate, trade facilitation, lending to small and medium enterprises and trade finance facilities for local banks.

“IDA and IFC also expect to work together on power development, agriculture and climate change,” the statement said.

Nepal could win about $400 million in assistance from IDA over the next two years, depending on performance and economic management. IFC too could potentially pledge $25-30 million on average annually.

The strategy reflects continuity, building on programs with successful track records that are adapted to local conditions.
It also emphasizes greater selectivity, focusing on areas considered vital to Nepal´s development and complementing programs supported by other development partners.
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