By A Staff Reporter
Kathmandu, July 10: The Government and Asian Development Bank (ADB) have signed a new US$ 50 million policy based lending agreement on Thursday to finance the Civil Aviation Sector Improvement Programme.
Shreekrishna Nepal, Joint Secretary at the Ministry of Finance and Mukhtor Khamudkhanov, Country Director, Nepal Resident Mission of ADB signed the agreement for loan equivalent to Rs. 5.95 billion.
The principal objectives of the programme are to strengthen the aviation safety oversight capabilities and operational efficiencies of Nepal.
“The scope of programme includes establishment of legal and implementation framework of civil aviation sector reforms and establishment and functionalisation of civil aviation related agencies, including Civil Aviation Authority, Nepal (CAAN) and Air Service Authority of Nepal (ASAN),” said the MoF.
According to Nepal, the support shall be vital for the country to enhance its airport capacity since it is undertaking various civil aviation sector reform initiatives from the loan.
Khamudkhanov said, “Strengthened oversight functions and airport management through the civil aviation reforms will help the government to improve substandard airports services, contributing to international tourism development that will ripple across the whole economy”.
The quick disbursing programme loan will also assist the government in securing external fiscal financing to mitigate economic and social shocks caused by COVID-19, he added further. The loan agreement is said to be effective after 30 days of the signing of this agreement.
The programme is expected to complete by 30 June, 2023.