Kathmandu, Nepal, September 8, 2022: The government of Nepal and the Asian Development Bank (ADB) has reached an agreement for the investments in the nuts and fruits in the hilly area project.
As per the agreement, the Nepal government will bear about $14.5 million for the project while the ADB will provide $60 million concessional loan from the Ordinary Capital Resources.
Similarly, the financing includes a $10 million grant from the Asian Development Fund, and the ADB will administer a $9 million grant from the Global Agriculture and Food Security Program.
The agreement was signed between the Finance Secretary Krishna Hari Pushkar, and the ADB Country Director for Nepal, Arnaud Cauchois amid a function organized at Ministry of Finance on Monday.
It is said that the project will benefit over 30,000 households in Province 1, Bagmati province, Gandaki province, Karnali province and Sudurpaschim provinces by cultivating climate-resilient fruit and nut orchards in around 10,000 hectares of land.
As Nepal has been facing increasing demand from other countries after domestic production failed to meet the demand, commercial farming of fruits and nuts in Nepal would benefit both the farmers and the country as well.
The project will help to take advantage of the country’s favorable agro-climatic conditions to produce quality horticulture crops and will support the government’s declaration of the 2016-2026 Fruit Decade, Finance Secretary Pushkar said in the signing in ceremony.
Similarly, ADB Country Director for Nepal, Cauchois said the agreement is a key part of the ADB’s overall efforts to address potential risks on food adding “this project we will support improving the livelihood and climate resilience of horticulture farmers in the hilly areas of the five provinces of Nepal.”
