Kathmandu: Japan has decided to provide grant assistance of up to Rs two billion (Japanese Yen 2,256,000,000) for the implement of the Project for the Improvement of the Rehabilitation of Irrigation System in the eastern Terai.
In addition to this, it has agreed to ensure concessional loan assistance of up to the amount of Rs 14.2 billion (Japanese Yen 15,901,000,000) for the Urban Transmission and Distribution System Improvement Project to Nepal.
The Embassy of Japan and the Ministry of Finance signed notes to this regard amidst a programme at the Ministry of Finance today, the Embassy said in a press statement.
The notes were signed by Kikuta Yutaka, Japan's Ambassador to Nepal, and Krishna Hari Pushkar, Secretary at the Ministry of Finance on behalf of their respective sides.
On the occasion, the ambassador said both agriculture and energy are the important sectors for economic development in 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 their studies. The two projects singed in this commemorative year symbolize the friendship between two countries and will contribute to Nepal's development." He added 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 credit will be utilised for improving the urban electricity transmission system in the big cities of Nepal, including Kathmandu and Pokhara with the aims of reducing transmission losses as well increasing the reliability of electricity distribution.
Following the signing ceremony, the finance secretary 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 in Nepal. Acknowledging the long-lasting and harmonious bilateral relations and development partnership between two countries, he further expressed his confidence that such relations will further grow to a new height