World Bank gives $440 million for housing reconstruction, job creation

Kathmandu / Jan 21: The government and the World Bank on Sunday signed three financing agreements worth $440 million to invest in the country’s post-earthquake housing reconstruction, livestock innovation, and technical education and vocational training.

Finance Secretary Shankar Prasad Adhikari and World Bank Country Director for Bangladesh, Nepal and Bhutan, Qimiao Fan, signed the agreements amid a program held at the Ministry of Finance.

Under the first agreement, the World Bank will provide $300 million in additional finance for the Earthquake Housing Reconstruction Project to meet funding gap created after the government increased housing grants from Rs 200,000 to Rs 300,000 per damaged house and made additional houses eligible to receive housing grants.

The new financing will supplement a $200 million credit approved in 2015 in the immediate aftermath of the devastating earthquakes. With these revisions, the financing gap in the government’s housing reconstruction program has widened to over $1.2 billion.

Speaking at the signing ceremony, country director Fan said: “These three agreements are important for Nepal because they boost job creation, including for many women, by investing more money in the country’s successful post-earthquake housing reconstruction as well as providing resources for the livestock sector and for youth skills training.”

The second financing agreement will support Livestock Sector Innovation Project with a credit of $80 million. The third agreement will finance the second phase of the Enhanced Vocational Education and Training Project with a $60 million credit.