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JAPANESE ASSISTANCE |
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JAPANESE ASSISTANCE |
Continued Support In another gesture of
goodwill, the Japanese government decides to cancel all outstanding dues on loans to Nepal
before 1987 By A CORRESPONDENT The Japanese government recently decided to
cancel all the outstanding dues for the repayment of principle and interest of loans
offered to Nepalese government before 1987. Japanese Ambassador to Nepal, Zenji
Kaminaga, recently informed about the decision, which was announced on December 10, 2002,
regarding the change in present arrangement for debt relief which is to be effective from
Japan's fiscal year 2003 (April 2003 onwards).
Japan had extended loan assistance to
Nepal for the execution of the project for Kulekhani No. 1 Hydro Power Station Project
(Phases I and II), Kulekhani No. 2 Hydro Power Station Project (Phase I and II) and
Udayapur Cement Plant Project prior to 1987. Their costs run into tens of millions of
dollars. "With the change into the new
arrangement, which is effective from April 1, 2003, the Government of Japan will waive the
ODA debts, interest and principle, of the Kingdom of Nepal, which are currently eligible
for Grant Aid for Debt Relief, by canceling the relevant ODA loan debts, instead of
extending the Grant Aid for Debt Relief. In other words, from April 1, 2003 onwards, the
ODA loan debts before 1987, including interest and principle, will be canceled,"
stated a press release issued by the Japanese Embassy on April 28. "However, (it is expected that), His
Majesty's Government of Nepal will make a new inter-governmental arrangement for
depositing the future scheduled repayment, to be made by the relevant agency of His
Majesty's Government of Nepal, in a special account in the Central Bank of Nepal, in
Nepalese currency within a reasonable period. The fund so deposited in the account will be
utilized for development activities of the Kingdom of Nepal with prior consultation with
the Government of Japan. With this new arrangement, the deposited fund, which is expected
to be precious resources for the Kingdom of Nepal, could be utilized for supporting its
development endeavors," the release further states. Japanese envoy Kaminaga emphasized the
necessity of effective and efficient utilization of available resources for the
development of Nepal. He also expressed his belief that the continued support of the
Government of Japan to His Majesty's Government of Nepal in its development efforts would
certainly play a significant role in strengthening the existing cordial relationship
between the two nations. "Under this new decision, until
Japan's FY 2002 (by the end of March 2003), the Government of Japan will continue to
extend Grant Aid for Debt Relief to His Majesty's Government of Nepal equivalent to the
loan re-payment, which includes the principal and interest, made by His Majesty's
Government of Nepal under the Exchange of Notes concluded between both governments for the
loan assistance by Japan's FY 1987." Meanwhile, the Japanese government recently
agreed to extend grant assistance of US$ 665,000 to His Majesty's Government of Nepal as
Grant Aid for Debt Relief in Japan's fiscal year 2002. "This will be the last
Exchange of Notes for extending Grant Aid for Debt Relief under the earlier
arrangement." In Japan's fiscal year 2002, previously, the Government of Japan had
already extended around 1.889 billion Japanese yen (120 yen equals 1 US dollar) to Nepal
in four separate installments under Grant Aid for Debt Relief. Japan has been extending Grant Aid for Debt
Relief to Nepal with the basic objective of assisting Nepal in procuring commodities such
as construction materials, fertilizer, petroleum products, medicines,
transportation-related equipment and other materials which are essential for carrying out
development activities. "Since 1978, the Government of Japan
has been extending such grant aid, Grant Aid for Debt Relief, to Nepal. Since then, the
total grant extended under debt relief to His Majesty's Government of Nepal for assistance
in the ongoing development efforts, and to uplift people's lives, has risen to over 19.528
billion yen." "However, as of Japan's FY 2002 (by
March 31, 2003), more than 19 billion yen ODA debt (debt relief eligible loan) still
remains as the balance for re-payment to be made to Japan Bank for International
Cooperation (JBIC) by His Majesty's Government of Nepal. (JBIC is the lending agency of
the Government of Japan.)," states the release. |
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