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ADB Provides US $50 Million to Reform Nepal’s Aviation Sector

ADB Provides US $50 Million to Reform Nepal’s Aviation Sector
– Nepalayatimes

ADB Provides US $50 Million to Reform Nepal's Aviation Sector
ADB Provides US $50 Million to Reform Nepal’s Aviation Sector

Kathmandu – The Asian Development Bank (ADB) has provided loan assistance of US $50 Million (nearly equivalent to NRs. 5.95 billion) to the Government of Nepal for the aviation sector reform program.

An agreement was reached between the government of Nepal and the bank on Thursday to implement the loan. This loan agreement will be used especially in the field of policy reform. The government is preparing to separate the Civil Aviation Authority of Nepal (CAAN) as a regulatory and service provider. The policy in this regard is currently under consideration in the Parliament. The agreement was signed by Shree krishna Nepal, Joint Secretary of Ministry of Finance and Mukhtor Khamudkhanov, Country Director of Asian Development Bank.

Addressing the signing ceremony held in the Ministry of Finance, Mr.Nepal said , “ This loan support shall be vital for us to enhance our airport capacity as we shall be undertaking various civil aviation sector reform initiatives from this loan”. He thanked ADB for its valuable support in the socio-economic development of Nepal and wished the bank to continue its similar support in the upcoming days too especially in this tough time of pandemic of COVID-19.

Similarly Mukhtor Khamudkhanov, Country Director of the Asian Development Bank, said that Nepal’s economy would be helped through improved service reform and policy reforms at airports. He says the aid will also help mitigate the impact of COVID-19 on the economy.

The division of CAAN is expected to increase air safety in Nepal. Nepal has been on the European Union’s blacklist since 2013. This work is essential to get rid of it. The government has said it will use the loan from the Asian Development Bank for policy reforms. The largest assistance in Nepal’s civil aviation sector is being provided by the Asian Development Bank.

Capacity building of Tribhuvan Airport and construction of Gautam Buddha International Airport are some of the projects that have been taken forward with the loan assistance of the Asian Development Bank. Speaking on the occasion, Joint Secretary Krishna Nepal said that this assistance would be important in enhancing Nepal’s air security.

This loan implementation will start one month after the signing. The loan implementation period will be till June 30, 2023.

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