ADB to focus on infrastructure, hydropower

The Asian Development Bank (ADB) has given indication that it will focus its investment on infrastructure development including hydropower generation in Nepal.
Such indication of shift in ADB´s investment priority came when Thierry de Longuemar, its vice-president for finance and administration, during his five-day visit to Nepal interacted with Finance Minister Barsha Man Pun, top officials of Ministry of Finance and Nepal Rastra Bank, among others.
Longuemar visited ADB-assisted Kali Gandaki ´A´ Hydroelectric project (144 MW) and discussed with officials the areas for prospective investment in transport infrastructure and power generation. Longuemar also discussed how the lack of infrastructure and power have impacted the Nepalese private sector.
"ADB operations in Nepal emphasize the need to urgently address infrastructure deficits, particularly of power, transport, and water," said ADB, issuing a press release on Saturday when Longuemar concluded his visit.
"Longuemar stressed on private sector development and attraction of private investment through development of Nepal´s capital and bond markets," the release further states.
During his visit, Longuemar also ventilated ADB´s interest to issue bond in local currency so that fund could be mobilized for lending to the private sector for the development of infrastructure and other priority projects.
"Longuemar, in his meeting with governor Dr Yuba Raj Khatiwada, proposed bond issue in local currency in order to help provide long-term financing for private infrastructure investment," the release says.
Highlighting the need for investment in the infrastructure sector, Longuemar said Nepal had potential to achieve stronger economic growth rate, given its natural resource endowments, human capital and strategic geographic location.
At the end of his visit, Longuemar said growth is a pre-requisite for establishing lasting peace and stability in the country and for that the country would require substantial increase in investments by both the public and private sectors.
The ADB has extended support to Nepal worth Rs US$ 3.59 billion in both loans and grants until September 2012. It is also preparing to invest Rs US$ 150,800 in Tanahun Hydropower Project jointly with Japan International Cooperation Agency (JICA).