Kathmandu, June 24
The government of Nepal and World Bank Board signed a Development Policy Credit of 100 million US dollars today to improve the financial viability and governance of the energy sector and recover from the COVID-19 crisis.
The agreement was signed by Finance Secretary Sishir Kumar Dhungana and World Bank Country Manager for Nepal Faris Hadad-Zervos.
The approved operation is the second in a series of three DPC operations to support key policy, regulatory and institutional reforms to unlock the economic potential of Nepal’s energy sector. These include measures to improve the financial viability of Nepal Electricity Authority as the sole off-taker, establish a regulatory framework that is autonomous, transparent, and accountable, achieve greater integration with regional electricity market to ensure optimal use of Nepal’s hydropower resources and restructure NEA to empower provincial and local governments under the federal structure.
On the occasion, Finance Secretary Dhungana thanked the World Bank for the continued support to improve the quality of infrastructure and socio-economic development in Nepal.
While Nepal has made important progress in the sector, addressing the immediate and long-term impacts of the pandemic is key priority of the government to ensure that benefits are sustained over time. In recent years, Nepal’s energy sector has made great stride, reads the press release issued by the World Bank today.
A version of this article appears in e-paper on June 25, 2020, of The Himalayan Times.