EU investment bank agreed to provide Rs. 16.5B: Mahat

KATHMANDU: Finance Minister Dr. Ram Sharan Mahat Sunday said that the European Investment Bank had agreed to provide Rs. 16.5 billion for the promotion of hydropower and expansion of transmission lines in Nepal.

Finance Minister Dr. Mahat made such remarks upon his arrival at the Tribhuvan International Airport after attending the Asia Programming Consultation Seminar in Brussels of Belgium.

Talking to the journalists, Dr. Mahat said that the assistance would be invested for the infrastructure development in rural areas.

“Out of the total amount, some portion will be used for rural drinking water, irrigation, agriculture and road development,” he said.

The World Bank and Asian Development Bank were supporting Nepal in the past. Now, the EIB will also support Nepal to manage financial assistance, Mahat added.

Minister Mahat met Director of European Investment Bank (EIB), Francisco De Paula in Brussels.

He said that EIB is committed to provide Rs. 1.5 billion assistance to Nepal to complete the Tanahu Hydropower.

According to him, EIB is committed to provide US dollar 120 million aid to Nepal for the construction of the corridor of Kali Gandaki and Marsyangdi Hydro Power Projects.

In addition, the bank has promised to provide USD 30 million to increase the power of Trishuli power corridor.