Concessional Loan | Multi-lateral financing | Decentralisation | University | Technology

Asian Development Bank, Manila | Image Source: Eugene Alvin Villar via Wikimedia Commons
Asian Development Bank, Manila | Image Source: Eugene Alvin Villar via Wikimedia Commons

News

ADB approves $100 million loan each to Nepal and Bangladesh

The Asian Development Bank has approved a concessional loan to Nepal to nourish fiscal management and promote decentralisation in the country, and another loan to three public universities in Bangladesh to improve their course programs.

By the_farsight |

The Asian Development Bank (ADB) on September 22 approved a $100 million policy-based concessional loan to Nepal, and another $100 million loan to three universities in Bangladesh.

For Nepal, the concessional loan has been approved under the Strengthening Public Financial Management and Devolved Service Delivery Program to nourish fiscal management and promote decentralisation in the country. The program will provide support for structural fiscal transformation until 2025.

According to the ADB, the program will introduce reforms that will:

  • enhance the quantum and quality of capital spending
  • reform public enterprises to mitigate fiscal risks
  • digitise to enhance fiscal transparency and efficiency
  • leverage additional resources from development financing institutions
  • implement a gender and climate-responsive medium-term expenditure framework at the subnational level

The program would help strengthen local governance and the delivery of devolved services by strengthening policy reforms aimed at improving the resource-generation capabilities of subnational governments.

Municipalities will be supported in revising and updating the property tax rate to enhance revenue collection by establishing an IT-based model taxpayer registration system and public asset management system. 

Additionally, ADB will provide a $1.5 million technical assistance grant to support the implementation of policy actions and institutional strengthening.

Similarly the same day, ADB approved a $100 million loan to three public universities in Bangladesh — the Bangladesh University of Engineering and Technology, the University of Dhaka, and the Jashore University of Science and Technology. The project expects to upgrade the computer science and engineering, software engineering, and information technology degree programs of these universities.

According to the ADB, the project will help establish modern classrooms and laboratories, collaboration and start-up spaces, and auxiliary facilities in the three universities — incorporating climate and disaster-resilient designs, energy and water-saving features, and women-friendly amenities and services.

“This project will help develop more competent and technology-savvy graduates and entrepreneurs who can help propel the country’s IT industry.” 

the_farsight :)

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