February 2008

Vol 7 - No. 8
 

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SOUTH ASIA - Nepal |
February 2008

 


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News Briefs

Loan Commitment for Melamchi   Enhancing Nepal's Air Transport Service

 



 (Afghanistan and Myanmar in the 
  map are not members of SAARC)

ADB to Fund Education Sector Reform Programme

The Asian Development Bank (ADB) has said preparations are underway to “take Nepal's school system into the next stages of reform and restructuring with new grants that will make the nation's educational programmes more responsive to the needs of an expanding economy”.

Initially, the bank has pledged a grant assistance of $8 million for the Education Sector Programme Cluster Subprogram II.

This will be jointly financed with other education development partners including the European Commission, which intends to provide 6 million euros ($8.7 million) as part of its contribution to the school sector.

According to the ADB, Japan Special Fund is also giving a $600,000 grant to be managed by the ADB for the preparation of the third and final subprogram of the Education Sector Program. The government of Nepal is providing $110,000 to the technical assistance.

“The overall objective of the programme is to work toward a fair, inclusive, effective and complete education system for Nepal. It also supports Nepal’s Education for All Programme for 2004-2009, the framework for basic and primary education in the country,” an ADB statement said.

The second sub-programme will support the preparation and transition of the country's public education into an integrated 12-year system - eight years of basic education and four years of secondary education, which is prescribed under the country's school sector reform plan.

"Through the implementation of the second subprogram, Nepal's education system will be in a better position to successfully pursue the school sector reform plan on a countrywide basis in 2009. This will result in an education system capable of providing better quality education that will enhance the educational attainment and livelihoods for children, particularly girls and disadvantaged groups," said Ayako Inagaki, senior education specialist of ADB's South Asia Department.

The final sub-programme, which is scheduled to start in 2009, will support the full implementation of the school sector reform plan once it is finalised, financed, and the legal and financing framework is adjusted to a 12-year school system.

The first sub-programme, which began in January 2007 and will run until July 2009, supports the Education for All Programme and is laying the groundwork for the integration of the current system into the planned 12-year school framework. The ADB provided $30 million loan and $2 million grant for this programme.

"Despite the government's efforts to meet the increasing demand for education, especially at post-primary level, financing problems, a poorly qualified teaching force and institutional weaknesses are slowing down improvements in school education," Inagaki added.

[Source: Nepal News]]

ADB Expresses Loan Commitment for Melamchi

The principal donor of multi-million-dollar Melamchi Water Supply Project (MWSP), the Asian Development Bank (ADB) has expressed commitment to provide loan totaling Rs 8.55 billion (around $136 million).

A mission delegation of ADB, which was in town recently, had agreed to extend the loan. The formal decision to this effect is expected to be made by ADB board meeting on February 8.

Talking with the press, Minister for Physical Planning and Works Hisila Yami said on Wednesday, that the Ministry is content with the mission's assessment, which she said had been very flexible to their concerns.

Earlier, the government's decision to cancel the selection of a British company called Severn Trent in drinking water management in the valley had endangered the future of the project.

Yami said the project has been divided into two sub projects. Reports say that as per the new cost estimation, $195 million will be spent on infrastructure development. This total cost includes $96 million for tunnel, $38 million for access road and $61 million for water treatment plant. Besides, $9.22 million will be allocated for social and environment support programs.

Furthermore, the government has also decided to hand over the assets and liabilities of Nepal Water Supply Corporation (NWSC) in its valley operations to the newly formed Kathmandu Upatyaka Khanepani Limited (KUKL). The KUKL will take over its responsibility of drinking water supply and management in the valley from mid-February. 

[Source: Nepal News]

Grant Enhancing Nepal's Air Transport Service to 
Ensure Sustainable Development

Japan and the Asian Development Bank (ADB) are assisting Nepal in preparing a project design to improve the quality of air transport services.

The Japan Special Fund is extending a $750,000 grant to prepare the Civil Aviation Airport Project. The grant will be managed by ADB. The government of Nepal will provide $190,000 to complete the funding requirement.

The technical assistance will come up with a feasibility design suitable for ADB financing to improve the country's aviation sector. It will reassess and survey air traffic and transport network updates, and the results will be used as a base to design a viable and feasible project that will address deficiencies in airport operations in the areas of management, capability, viability, safety and feasibility. A proposal will also be made for meeting future air navigation equipment requirements over the next 10 years.

The assistance will also reassess the capability of the government's Civil Aviation Authority of Nepal as a regulator and airport operator, and prepare an action plan to further enhance the performance of the agency.

"The civil aviation sector in Nepal is relatively well managed and complies with international requirements. However, its equipment and structure need improvement for sustainable long-term development," said Kazuhiko Higuchi, Director of ADB's Transport and Communication Division, South Asia Department.

Nepal is a landlocked country with rugged and mountainous terrain that makes road construction and maintenance costly and difficult. Limited funding also contributes to the problem. Certain areas of Nepal remain largely inaccessible except through porter and mule tracks, and in some areas, light aircraft landing strips.

Air transport has played a significant role in the administrative, economic and social development of the country, and in the absence of adequate roads, it has provided links between the capital of Katmandu and various administrative and commercial centers of the country, as well as with the outside world.

[Source: Asian Development Bank]

News Briefs

Constituent Assembly elections scheduled to be held on April 10: A Cabinet meeting, on January 11, 2008, decided to hold Constituent Assembly elections on April 10, 2008. Emerging from the Cabinet meeting, Home Minister Krishna Prasad Sitaula said, "The Cabinet meeting made the decision in an amicable manner and the Government will concentrate on the Constituent Assembly elections, setting it as the major agenda." Leaders of the three major political parties, Prime Minister and Nepali Congress leader Girija Prasad Koirala, CPN-Maoist Chairman Prachanda and the Communist Party of Nepal–Unified Marxist Leninist (CPN-UML) General Secretary Madhav Kumar Nepal, have also reached an agreement not to make any remarks in public that would adversely affect the environment for the elections. Kantipur Online, January 12, 2008. 

[Source: South Asian Intelligence Review]


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