A discussion of World Bank’s Board of Executive Directors held on Thursday in Washington DC has reaffirmed WB assistance to Nepal in its transition to peace.

The Board also approved a US$ 60 million grant for the Second Higher Education Project, designed to enhance quality and relevance of higher education and research.

The meeting discussed an interim strategy that emphasized flexibility at its core to help Nepalis respond to historic opportunities that have opened up since April last year.

Welcoming the signing of a comprehensive peace agreement between the seven party alliance government and the CPN-Maoist, the meeting wrote in its note that the Bank needs to remain engaged and continue to support Nepal’s development process, as well as the peace building and state building efforts in as steady a manner as practicable.

A press release issued by the World Bank in Washington said the interim strategy note of the Board of Executive Directors observed that the road ahead was not without serious pitfalls.

"In the short run, the political situation will remain fluid and potentially unstable until successful constituent assembly elections are held and all sides accept the results," it read “Given the significant uncertainty associated with the political situation, three broad scenarios cover the range of possibilities under which the Bank’s interim assistance strategy would be considered”

The release quoted Kenichi Ohashi,World Bank Country Director for Nepal as saying that the Bank's Executive Directors were very supportive of Nepal's peace process and were encouraged by the progress made so far.

"Unless the government can demonstrate that economic conditions and public services are improving, the population could lose patience and narrow the space necessary to resolve the political issues.” the release quoted Ohashi as saying.