The government of Nepal has signed an agreement with World Bank on Sunday to obtain concessional loans worth NRS 52.96 billion. According to the World Bank, a subsidized loan agreement of 275 million dollars for regional transport and trade relations increase project and 140 million dollars for Digital Nepal speed-up project was signed on Sunday.

The MoU was signed in the presence of Finance Minister Janardhan Sharma and World Bank South Asia Regional Vice President Martin Riser. Krishna Hari Pushkar, Secretary of the Ministry of Finance, signed the agreement on behalf of Nepal government and Faris Haddad-Jervos, National Director of the World Bank for the Maldives, Nepal, and Sri Lanka.

As part of the regional transport and trade relations enhancement project, the 69-kilometer two-lane section of the Butwal-Gorusinge-Chandrauta road of the East-West highway will be upgraded to a four-lane highway. The project is expected to reduce travel time by 30 percent while providing better access to India’s western ports. At least three market areas with necessary internet and business information facilities will also be constructed on the highway.

Likewise, the Digital Nepal Acceleration Project will help implement the Digital Nepal Framework under the Digital Economy Strategy. This project will mobilize private sector capital to increase access to broadband internet services in rural areas currently deprived of high-quality and affordable internet services. It will also help to deliver government services through digital technology by improving Nepal’s public data infrastructure and cyber security capabilities.

Finance Secretary Pushkar said that these projects will help Nepal uncover the economic prospects through strong ties to support economic-social development in an inclusive manner and good communication between trade, service users, and businesses through information technology and access to regional markets.

This project will construct at least three market areas along the highway with necessary internet and business information facilities keeping in mind the increasing economic opportunities for women entrepreneurs and traders.

It will help to deliver government services securely through digital technology by improving Nepal’s public data infrastructure and cyber security capabilities.