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ADB aid for Kathmandu roads
KATHMANDU, JUL 24 -
The Asian Development Bank (ADB) has provided an assistance of US $20 million to help improve the transport system in Kathmandu.
The ADB Board of Directors approved a $10 million loan and a grant of up to $10 million, both from ADB’s Special Funds resources, for the Kathmandu Sustainable Urban Transport Project. ADB’s assistance under the project is the reorganisation plan of the public transport network system in Kathmandu and the introduction of two pilot bus routes financed through the government-managed Town Development Fund.
The fund will also promote the usage of electric or low-emission vehicles and help reduce pollution on the roads of Kathmandu, a press statement issued by the ADB said. Making heritage routes pedestrian-only and improvement of facilities, especially sidewalks, are another important components of the project. “Any effort to improve the urban transport system in Kathmandu must be led by the public sector, and in the case of public transport the Department of Transport Management (DOTM). ADB is pleased to work closely with the DOTM on this project, which will also include support to the DOTM to build up knowledge and skills in urban transport management and strengthen organisational effectiveness,” said David Margonsztern, Urban Development Specialist in the ADB’s South Asia Department.
“Through this project, we hope to provide the city with a more efficient and sustainable urban transport system that will support economic expansion, help address climate change, and mitigate air pollution,” said Sultan H. Rahman, Director General of ADB’s South Asia Department.
The loan will have a 32-year term, including a grace period of eight years, an annual interest charge of one percent during the grace period and 1.5 percent thereafter. The Government of Nepal will contribute $7.90 million to complete the project funding.
Posted on: 2010-07-25 08:40
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