January 26, 2022
On January 25, the Japan International Cooperation Agency (JICA) signed a loan agreement with the Government of Nepal in Kathmandu to provide a Japanese ODA loan of up to 10 billion yen for the Policy Loan for Economic Growth and Resilience. This program is co-financed with the World Bank.
The objective of the program is to support the Government of Nepal in reforming economic and financial policies and institutions, and strengthening the domestic industrial base and social security for the poor and vulnerable by providing financial support. This program will contribute to the achievement of SDGs Goals 1 (No poverty), 8 (Decent work and economic growth), and 10 (Reduced inequalities) etc.
The loan is the first to be approved in six years for Nepal, and this is the first program loan provided to the country. Co-financing with the World Bank is expected to increase the effectiveness of this program. In addition, JICA has dispatched technical cooperation experts to encourage foreign direct investment in Nepal. This program aims for synergies resulting from the technical cooperation, and also to give momentum to preparing an environment for foreign corporations to invest, based on the intentions of Japanese enterprises.
Details of the loan are provided below.
1. Terms and Amount of Loan
|Annual interest rate (%)||Repayment
|The Policy Loan for Economic Growth and Resilience||10,000||0.01%||-||40||10||General untied|
2. Executing Agency
International Economic Cooperation Coordination Division, Ministry of Finance
Address: International Economic Cooperation Coordination Division, Ministry of Finance, Government of Nepal, Singhadurbar, Kathmandu, Nepal
Phone: +977-1-4211720, fax: +977-1-4200537
3. Planned Implementation Schedule
(1)Completion of program: May 2022 – when the disbursement is completed.
(2)Issuing of letters of invitation for consulting services (including detailed design work): No hiring of consultants is planned for this program loan.
(3)Tender announcement of initial procurement package for international competitive bidding on project construction: No work in conjunction with bidding is planned for this program loan.