Nepal: Rural Finance Sector Development Cluster Program I

Sovereign Project | 36169-013

Summary

To assist the Government in accelerating rural economic growth by addressing key constraints in Rural Finance (RF). The program goals are to ensure permanent access to institutional financial services for a majority of rural households at minimal transaction cost and to promote private sector led rural growth. The specific objective is to develop a sustainable RF system for providing affordable services, primarily to the middle and lower segments of the RF markets for a significant income expansion and poverty reduction impact for directly addressing the underlying causes of the conflict.

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Project Name Rural Finance Sector Development Cluster Program I
Project Number 36169-013
Country Nepal
Project Status Closed
Project Type / Modality of Assistance Grant
Loan
Technical Assistance
Source of Funding / Amount
Grant 0059-NEP: Rural Finance Sector Development Cluster Program (Subprogram 1)
Asian Development Fund US$ 8.70 million
Loan 2268-NEP: Rural Finance Sector Development Cluster Program I
Asian Development Fund US$ 56.00 million
TA 4857-NEP: Capacity Building in Rural Finance Institutions
Japan Special Fund US$ 500,000.00
TA 4857-NEP: Capacity Building in Rural Finance Institutions ( Supplementary )
Japan Special Fund US$ 600,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Finance - Finance sector development
Gender Equity and Mainstreaming
Description To assist the Government in accelerating rural economic growth by addressing key constraints in Rural Finance (RF). The program goals are to ensure permanent access to institutional financial services for a majority of rural households at minimal transaction cost and to promote private sector led rural growth. The specific objective is to develop a sustainable RF system for providing affordable services, primarily to the middle and lower segments of the RF markets for a significant income expansion and poverty reduction impact for directly addressing the underlying causes of the conflict.
Project Rationale and Linkage to Country/Regional Strategy

tbd

The Program supports the Asian Development Bank (ADB)'s country strategy for Nepal, which focuses on (i) pro-poor and broad-based economic growth, and inclusive social and human development, (ii) empowerment of the poor, and (iii) good governance to ease social tensions and create the foundation for sustainable povery reduction.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Whole country
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design tbd
During Project Implementation tbd
Business Opportunities
Consulting Services tbd
Procurement tbd
Responsible ADB Officer Vivek Rao
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
Ministry of FinanceMr. Bimal Waglewaglebp@yahoo.comKathmandu, Nepal
Timetable
Concept Clearance 07 Oct 2004
Fact Finding 06 May 2005 to 15 May 2005
MRM 24 Oct 2005
Approval 26 Oct 2006
Last Review Mission -
PDS Creation Date 01 Feb 2007
Last PDS Update 28 Sep 2012

Grant 0059-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Oct 2006 01 Nov 2006 21 Nov 2006 30 Jun 2009 30 Jun 2011 21 Sep 2012
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 8.70 Cumulative Contract Awards
ADB 8.70 26 Oct 2006 8.04 0.00 92%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Oct 2006 8.04 0.00 92%

Loan 2268-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Oct 2006 01 Nov 2006 21 Nov 2006 30 Jun 2009 - 20 Dec 2007
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 56.00 Cumulative Contract Awards
ADB 56.00 26 Oct 2006 57.15 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 Oct 2006 57.15 0.00 100%

TA 4857-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Oct 2006 25 Dec 2006 25 Dec 2006 31 Dec 2007 15 Aug 2010 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,100,000.00 0.00 0.00 0.00 0.00 0.00 1,100,000.00 26 Oct 2006 1,007,731.32

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Nepal: Rural Finance Sector Development Cluster Program Validations of Project Completion Reports Nov 2013

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