World Bank reaffirms its continuous support to Nepal

The World Bank (WB0 Nepal, Nepal's principal donor, Thursday has unveiled its interim strategy note (ISN), reaffirming its strong support to ongoing peace process and assuring further assistance to Nepal's overall development process.

In the ISN, the bank has committed financial assistance of US$ 143 million for 2006-07 and US$ 210 million for 2007-08, with possibility of raising the amount.

The bank plans to provide Nepal with assistance worth $145 million for 2007 and $210 million for 2008. In addition to this assistance, the WB would also provide technical assistance for economic reform and development policy credit (DPC) based upon an improving transition scenario.

The bank has also stated that it would continue its lending to Poverty Alleviation Fund (PAF), Education for All (EFA), higher education programmes and key infrastructure development projects.

“As opportunities emerge and scenario turns toward positive end, additional bank assistance could be provided, including budget support,” reads the ISN.

According to ISN, the WB's assistance strategy would be based on three broader scenarios --steady transition, stalled transition and deterioration.

Under steady transition, the bank would continue to enter into new commitments for a number of projects, many built on robust community engagement and others strengthening the foundations for faster growth.

The bank would also provide budgetary support as well as help organise donors meetings, which would be possible after successful Constituent Assembly polls.

A strong dialogue, backed by analytical work carried out with not just the government but also a broad range of stakeholders, will continue, especially on the issues of inclusion, state building and growth, states the ISN.

In addition to inclusion, the bank's strategy will also focus on assisting Nepal to accelerate growth and create employment.

Under the stalled transition, the bank will provide support for the formulation of a new national vision-which is essential to give a unified direction to the social energies mobilised by the political change and development of a major post-conflict economic programme.

“If the situation deteriorated, the bank will continue support for community based program while possible,” The World Bank states.

The ISN has mainly stressed Nepal to focus on the two central issues, namely state building and inclusion.

Unveiling the ISN, Kenichi Ohashi, Country Director of the World Bank Nepal said that Nepal currently faces two basic challenges, peace process in the shorter term and social, political and economic transformation of the country in the long term.  

This transition is an opportunity for Nepal to redefine its future. It is also an opportunity for Nepal to redefine its relations with donors," Ohashi stated.