September 22: Japan has decided to provide grant assistance of up to Rs 2 billion (Japanese Yen 2,256,000,000) to implement of the Project for the Improvement of the Rehabilitation of Irrigation System in eastern Terai.
In addition to this, Japan has agreed to ensure concessional loan assistance of Rs 14.2 billion (Japanese Yen 15,901,000,000) to Nepal for the Urban Transmission and Distribution System Improvement Project.
The Embassy of Japan and the Ministry of Finance signed notes in this regard amidst a programme held at the Ministry of Finance on Wednesday, the Embassy said in a press statement.
Japan's Ambassador to Nepal, Kikuta Yutaka, and Finance Secretary Krishna Hari Pushkar signed the agreement on behalf of their respective governments.
On the occasion, the Japanese ambassador said both agriculture and energy are important sectors for economic development of Nepal.
"Agriculture is the major industry in which a large number of Nepal people are engaged. The development of agriculture is indispensable for the overall development of Nepal. Likewise, as Nepal's hydropower generation capability has been improving, it is important to develop the transmission and distribution system to take full advantage of the progress," he said.
He further stated that the year 2022 marks the 120th anniversary since the first eight Nepali students were dispatched to Japan for study. The two projects singed in this commemorative year symbolize the friendship between the two countries and will contribute to Nepal's development, added Yutaka. He further said that the Japan is committed to extending all possible assistance to Nepal in its endevour for nation building and strengthening the friendly relationship between the people of Japan and Nepal.
According to the Ministry of Finance, the grant assistance will be used for the maintenance and improvement of Chandra Nahar irrigation system for reliable and continuous irrigation facilities, mainly in the eastern Terai. Similarly, the concessional loan will be utilised for improving the urban electricity transmission system in big cities of Nepal, including Kathmandu and Pokhara with the aim of reducing transmission losses as well as increasing the reliability of electricity distribution.
Following the signing ceremony, Finance Secretary Pushkar said the implementation of these two projects would be crucial for improving irrigation facilities in Nepal, increasing reliability of electricity supply and reducing the transmission losses.
He appreciated Japan for its continuous support in socio-economic and human resources development of Nepal. -- RSS