Announcement of Nepal Aid Group Meeting on May 4, 1974

- ' .;:Ji" .. FOR_·-1 f\;'1MED1 ATE .RELEASE .World Bank .1818 H Street, N.W., Was_hington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 WORLD BANK NEWS RELEASE MAY 4, 1978 NEPAL AID GROUP MEETING The following announcement was issued yesterday at the World Bank's European Office in Prris. Governments and institutions concerned with development assistance to Nepal· met in Paris on May 3, 1978, under the chairmar.ship of the World Bank. The meeting was attended by representati~es of the Governments of Austria, Canada, Germany, Japan, Switzerland, the United Kingdom, the United States and by representatives of the Asian Development Bank, the International Monetary Fund and the United Nations Development Programme. Representatives from the Government of France and the Development Assistance Committee of the OECD also attended the meeting as observers. The Nepalese delegation was led by His Excellency Dr. Bhekh Bahadur Thapa; Minister of Finance, His Majesty's Government of Nepal. He was accom- • panied by His Excellency Dr. T.N. Upraity, the Ambassador of Nepal to France, Dr. Devendra Raj Panday, Acting Secretary, Mini,try of Finance, Mr. Lok Bahadur Shrestha, Joint Secretary, Ministry of Finance, and Mr. Indra B. Singh, First Secretary, Embassy of Nepal to France. The leader of the Nepalese delegation reviewed Nepal's development strategies with special reference to those affecting rural development, agri- culture, and the interrelated fields of conservation ·and afforestation. He also reviewed the progress made in the implementation of the Government's fifth Five-Year Plan, 1975/76-1979-80. . In support o·f its development objectives, the Government was making determined efforts to expand the absorptive capacity of the economy for new i nves tmen t and· step up the mob i 1 i za ti on of domestic resources. As a resu 1t, total investment had grown rapidly. In particular, progress was being made in agricultural development, and the expansion of social services, on which the present plan was placing special emphasis because they affected directly the welfare of the people. The Nepal Aid Group was playing a significant role in these achievements, for which the tovernment expressed its appreciation. Notwithstanding this progress, there was still danger that the performance of the economy would fall short of plan ·targets, particularly in the agricultural sector, and thereby impede the efforts which were being made to improve the lot of the poor in the hills, the mountains and the terai. This underlay the concern of the Government that even greater progress would • have to be made in the immediate future despite the formidable constraints which the country faced. To this end, sizeable new programs were being planned in the fields of rural development and water resources. NOTE: Money figures are expr~ssed in U.S. dollar equivalents.  - 2 - The Group welcomed the Government's intentions to accelerate the ~ pace of socio-economic development through even sharper focus on the needs for agricultural development and the measures required to strengthen the country's capacity for effective utilization of expanded levels of invest- ment in the sector. The Group noted with interest information presented by the Nepalese delegation on the recently completed UNDP feasibility study and the current status of preparation of the Karna] i hydro-electric project. It was agreed that His Majesty's Government would keep the Group informed of progress in the preparation of the project. Since the establishment of the Nepal Aid Group in December 1976, its members have committed external assistance amounting to over $145 mil- l ion. Although disbursements from these commitments over the remaining period of the Plan will be substantial, additional commitments are required if the Government is to be able to accomplish the objectives of its present Plan and lay the ground for the sixth Five-Year Plan, beginning in 1980/81. Reaffirming its support for the development efforts of Nepal, the Group, at its second meeting in Paris, assured the Government that it would continue to work closely with it in providing an effective response to the country's requirements for substantial capital and technical assistance. Several members of the Group indicated that there would be an increase in their capital and technical aid to Nepal which will help bridge the Govern- ment's projected resource gap. It is expected that an increasing share ~ of development assistance to Nepal will be in the form of grants and be available for financing local expenditures on development projects. - 0 - •