Asian Development Bank (ADB) Vice President (VP) Mr. Wencai Zhang met with the Prime Minister of Nepal, Mr. Sushil Koirala on 17 August 2014, and assured him of ADB's commitment to help Nepal achieve its vision of graduating from least-developed country status by 2022.

Discussing how ADB can boost Nepal's economy and development, and help the country reduce poverty, VP Zhang, in a panel that included Deputy Prime Minister Mr. Prakash Man Singh, Finance Minister and ADB Governor Mr. Ram Sharan Mahat, and other senior officials, emphasized the strong need to fill in gaps in Nepal's infrastructure, increase its building capacity, and establish an enabling policy environment to promote private sector investment. Nepal has recently promoted efforts to accelerate a range of economic and sector reforms boosting public-private partnership in different sectors.

Under public-private partnership, ADB is ready to provide technical assistance to help develop hydropower projects. Hydropower in Nepal holds vast potential, with the country currently in talks to sign power trade agreements (PTAs) with Bangladesh and India to export its surplus energy, providing a more affordable power trade source.

Speaking to members of the press, VP Zhang said ADB is ready to facilitate negotiations for power trading—including hydropower generation and transmission, and cross-border power trading—especially with India. The two countries are finalizing details of a revised PTA draft, following Indian Prime Minister Mr. Narendra Modi's visit to Nepal in August 2014, where both sides agreed to conclude a PTA within 45 days.

ADB can provide US$1.5 billion more to Nepal through the concessional Asian Development Fund in the next five years, according to VP Zhang, to support economy and sector reforms, together with investments in critical infrastructure, including energy. Four energy projects in Nepal worth US$507.51 million have received ADB funding under the South Asia Subregional Economic Cooperation program.

Related Links:

• Business Standard, "ADB ready to facilitate Nepal-India power trading," August 15, 2014.
• Shanghai Daily, "India invites Nepal to discuss PTA," August 14, 2014.