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ADB Director General Holds Talks with Nepal Government and Donors

KATHMANDU, NEPAL - ADB is concerned about the adverse impacts of Nepal's complex security and political situation on its development and poverty reduction efforts, a senior ADB official said during an official visit.

Kunio Senga, Director General of ADB's South Asia Department, was speaking yesterday at the end of a five-day visit to Nepal, during which he held high-level consultations with the Government and other donor agencies on the situation in Nepal and the reform and development agenda.

During his talks with the Government, Mr. Senga said ADB recognizes that Nepal is passing through one of the most difficult periods in its history and expressed concern about the disruption in basic service delivery to the poor, the lack of job opportunities, and state of basic infrastructure. However, he was pleased that the Government had taken some difficult reform actions.

Mr. Senga visited agriculture, water supply and rural infrastructure projects funded by ADB in Pokhara and Tanahu districts. "I was struck by how local communities are actively participating in development activities and that there is still development space in Nepal," he said.

He expressed satisfaction that the performance of ADB's portfolio had improved in 2005. However, he added that ADB's future assistance to Nepal will be subject to a conducive environment for carrying out project work.

"It is my fervent hope that peace and stability would return to Nepal because it is very difficult for one country achieve its development and poverty reduction objectives rapidly in the current environment," he said.