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Kathmandu Saturday June 30, 2001 Ashadh 16, 2058.
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ADB reviews pre-loan
commitments
Post Report
KATHMANDU, June 29 - The one-man mission from
the Asian Development Bank (ADB) that was in the Capital scrutinizing the fulfillment of
the various commitments made by the government returned to Manila today.
The ADB mission reviewed the progress made by
the government since the signing of a US$ 50 million concessional loan agreement for the
development of the eighth power project last July.
The government then had, among others,
promised to increase the electricity tariff rates, collect arrears within three months,
maintain self financing ratio of Nepal Electricity Authority (NEA) at 23 per cent and the
rate of return at six per cent before the loan amount is actually transferred.
The mission, headed by senior ADB official
John Kuiper, held a series of meetings with various government ministries and agencies
since Monday. Though John Kuiper could not be contacted for comments, ADB officials in
Kathmandu have expressed satisfaction over the government’s performance.
"The progress made by the government in
the past couple of months is laudable, especially in the collection of arrears," said
Dr Richard Vokes, Resident Representative of the ADB in Kathmandu, talking to The
Kathmandu Post today.
"However, there are some areas where the
ADB is still concerned," Dr Vokes said. Asked if another mission would come on a
visit, or if the loan would be sanctioned soon, he said, "It is too early to
say."
It may be recalled that though the loan
agreement was signed in July 2000 and was initially scheduled to be come into effect by
April 15, clearance had been delayed by three months to mid-July following the
unfulfillment of various commitments by Nepal.
Despite the positive view held by the ADB
currently, it is not yet clear if the mission is satisfied with the government’s
performance in all fronts. The eighth power project loan, among others, would be used for
rural electrification, expansion of transmission lines, improving power distribution
system and constructing computerized facility in the capital.
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