Japan International Cooperation Agency (JICA) will load up to 10 billion loan to Nepalese government. This is the first JICA loan since the Nagdhunga Tunnel Construction Project mentions The Himalayan Times.

JICA releases the following to press,

Signing of Japanese ODA Loan Agreement with Nepal: Contributing to build resilient society in Nepal through providing budget support for the first time in six years

On January 25, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of Nepal in Kathmandu to provide a Japanese ODA loan of up to 10 billion yen for the Policy Loan for Economic Growth and Resilience. This program is co-financed with the World Bank.

The objective of the program is to support the Government of Nepal in reforming economic and financial policies and institutions, and strengthening the domestic industrial base and social security for the poor and vulnerable by providing financial support. This program will contribute to the achievement of SDGs Goals 1 (No poverty), 8 (Decent work and economic growth), and 10 (Reduced inequalities) etc.

The loan is the first to be approved in six years for Nepal, and this is the first program loan provided to the country. Co-financing with the World Bank is expected to increase the effectiveness of this program. In addition, JICA has dispatched technical cooperation experts to encourage foreign direct investment in Nepal. This program aims for synergies resulting from the technical cooperation, and also to give momentum to preparing an environment for foreign corporations to invest, based on the intentions of Japanese enterprises.

Details of the loan are provided below.

1. Terms and Amount of Loan