Improving project implementation performance is the key to Nepal getting more funds for development, Asian Development Bank (ADB) Deputy Director General for South Asia Mr. Diwesh Sharan told officials in Kathmandu.
“ADB has increased the annual lending level to Nepal from about $254 million a year on average during 2014–2016 to an annual average of $551 million in 2017–2018,” Mr. Sharan said. “Improved portfolio performance will help the country to sustain and further tap opportunities of increased lending space provided by ADB.” He was speaking at the opening of the annual Tripartite Portfolio Review of ADB operations in Nepal.
After recording the highest disbursement and contract awards in 2016 and 2017, the overall performance of ADB operations in Nepal has been lagging behind in 2018. Of the net available funding amount of $2.8 billion spread over 36 investment projects (31 loans and 5 grants), 44% is still to be contracted and 64% is still to be disbursed.
“The ongoing federalism implementation process has posed some challenges along with the current inadequate fiduciary, technical, and project supervision capacity,” said Mr. Shreekrishna Nepal, Joint Secretary and Chief, International Economic Cooperation Coordination Division, Ministry of Finance. “Nevertheless, a realistic action plan to remove key constraints could accelerate the project implementation performance of the ADB-funded projects.”
Mr. Nepal urged project staff to examine the implementation constraints, expedite the procurement process, and submit disbursement requests to ADB within the agreed deadline to achieve the projected 2018 targets.
Original source: ADB
Published on 23 November 2018
