Countries and Regions

	Table of Contents
p. 17 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Nepal

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VI. Cofinancing and Catalyzing External Resources

90. ADB actively seeks opportunities for cofinancing to provide high quality and comprehensive development assistance. The major sources of cofinancing for Nepal are still official funding. From 1997-1999 a total of $24.6 million was obtained for four projects from the Australian Agency for International Development, OPEC Fund for International Development (OPEC Fund), and the Canadian Agency for International Development.

91. The 2000 Country Programming Mission in February 2000 had extensive discussions with the donor community in Nepal (in addition to a broad spectrum of stakeholders), and confirmed that significant potential exists for cofinancing, primarily for the Melamchi Project, a 2000 loan. Initial commitments for the Melamchi Water Supply Project amount to about $200 million from bilateral and multilateral sources, compared to ADB financing of $60 million for the project. Donors include the Japanese Bank for International Cooperation, the OPEC Fund, the Nordic Development Fund, the Norwegian Agency for International Cooperation, the Swedish International Development Agency, and the World Bank. During the Country Programming Mission, the British Department for International Development (DFID) expressed strong interest in finding areas for coordinated efforts, particularly for the Secondary Education II and Fourth Road Improvement Projects.

92. The World Food Program and German Gesellschaft für Technische Zusammen are interested in possibly cofinancing the Rural Infrastructure Sector Project. During a cofinancing mission to Japan, the Japanese Bank for International Cooperation expressed interest in cofinancing the Ecotourism, Rural Infrastructure Development, and Urban Environment Improvement Projects, in addition to the Melamchi Water Supply Project. Apart from donor interest in cofinancing specific projects, further collaboration is expected with a number of donors. The Japanese International Cooperation Agency has expressed interest in cooperation on agricultural productivity improvement, rural income generation, urban environment improvement, and basic water supply and sanitation, particularly for the Basic Education and Melamchi Water Supply Projects. Potential areas for cooperation with the Danish International Development Agency include secondary education, urban environment improvement, and civil service reform. Collaboration with DFID is expected in agriculture and rural livelihood development (crop diversification and the agriculture sector performance review), civil service reform and the implementation and monitoring of the APP. Cofinancing opportunities will be followed up with the assistance of NRM. In addition, opportunities for private sector financing through cofinancing in ADB projects and direct investment and equity participation continue to be investigated.

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