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World Bank Assistance For Municipal Service Delivery And Infrastructure Development
May 18, 2011: The World Bank (WB) has recently approved a US$ 63 million assistance for Nepal to improve the basic services delivery and priority infrastructure in selected municipalities and to construct a transmission line and substations to extend power generated at the Kabeli corridor in the eastern part of the country.
The WB will channel the assistance through the Urban Governance and Development Program to the six municipalities such as Mechinagar, Dhankuta, Itahari, Lekhnath, Baglung and Tansen together form an Emerging Towns Project for the construction and rehabilitation of socio-economic infrastructures.
The WB has said in a press statement that the Emerging Towns Project might add other municipalities at a later stage with the expansion of the project. The project will also provide the municipalities and three key central agencies such as Ministry of Local Development, Town Development Fund and Department of Urban Development and Building Construction with the support for institutional development activities.
The Kabeli Transmission Project is for constructing a 132 KV transmission line from Kabeli Bazaar in the north of Panchthar district to Damak in Jhapa district, both in eastern Nepal; substations will be built in the vicinity of Kabeli Bazaar and at the towns of Phidim, Ilam and Damak according to ‘The Rising Nepal’ of May 11, 2011.
The International Development Association (IDA), the World Bank’s concessionary lending arm will provide the assistance in credit and grants. Financing for the Urban Governance and Development Program: Emerging Towns Project is US$ 13.75 million in credit and US$ 11.25 million in IDA grant. Financing for the Kabeli Transmission Project is US$ 27.4 million in credit and US$ 10.6 million in grant.
The credit carries a 0.75 per cent service charge, a 10-year grace period and a maturity of 40 years.
