OFID extends loan to Nepal to boost water and sanitation sector

Vienna, Austria, September 22, 2015. The Director-General of the OPEC Fund for International Development (OFID) Suleiman J Al-Herbish and Suman Prasad Sharma, Finance Secretary of Nepal, signed a US$20m public sector loan agreement for the Small Towns Water Supply & Sanitation Sector Project (Phase III). The project aims at enhancing water supply and sanitation services in 26 towns across the country. Around 400,000 inhabitants will receive piped-in water supplies and over 20,000 households improved sanitation facilities, thereby raising health and living standards considerably.

Mr Al-Herbish welcomed Mr Sharma and his delegation and spoke of OFID’s longstanding relationship with Nepal, which dated back to 1976. He noted that OFID had approved a total of US$244m that supported the “diverse aspects” of Nepal’s development program. The DG also spoke of OFID’s first private sector loan agreement signed last year with Nepal for the Essel-Clean Solu Hydropower project. He said that OFID looked forward to strengthening its private sector activities in the country as the institution believed it was an “integral sector of the development process.”

Mr Sharma expressed his “deep appreciation” for OFID’s support of Nepal’s socio-economic development and said his country had “greatly benefited” from this assistance that was channeled to “all of the important sectors of the Nepalese economy.” He said that the project would assist government in achieving its goal to reduce poverty by enhancing access to clean drinking water and that it would help create “healthier lives” for the beneficiary communities. “I strongly believe, concluded Mr Sharma, “that our cordial relations will be further fostered and strengthened in the days to come.”