The United Kingdom on Tuesday announced for Nepal a new grant assistance package of £400m ($505m), to be utilized till 2030, reinforcing the importance it attaches to the Asia-Pacific region and Nepal, with which it has diplomatic relations spanning more than two centuries.
The two countries signed grant agreements for Nepal in Business and Green Growth Nepal Program in the presence of UK's Minister for Development and Africa Andrew Mitchell, here on a two-day visit (Feb19-20) and Finance Minister Prakash Sharan Mahat.
In a press release, the British Embassy in Nepal said: a) The new development portfolio will help Nepal tackle the climate crisis, mobilize international finance for development, deliver economic transformation, and support governance and inclusion. b) UK development support will see £400m ($505m) in grants delivered by 2030. c) Impacts will include helping create 13,500 jobs, attracting more than $1bn in investment and supporting access to quality health and education services for two million women and girls.
Minister Mitchell inspected a number of projects, including the Upper-Trishuli-1 hydropower project, to see firsthand the impact of nearly $22m of British International Investment funding. He held talks with Prime Minister Pushpa Kamal Dahal, Foreign Minister Narayan Prakash Saud and Finance Minister Prakash Sharan Mahat. Together, they affirmed British support for Nepal’s Investment Summit slated for April 2024, and discussed the reforms necessary to mobilise finance and attract investors.
In a speech at the Ministry of Finance, the minister set out how the UK will work with Nepal to help mobilise development funding, tackle the climate crisis and build business, to support Nepal’s expected transition from the Least Developed Country status.
Improved access to sustainable local infrastructure, a key element of that transition, is expected to benefit 1.7m people across the country as a result of the UK’s new portfolio.
As part of the portfolio, Minister Mitchell welcomed the recent agreement by Nepal’s Cabinet on new programs that will support green and inclusive growth, attract foreign direct investment, and promote more inclusive business.
Minister Mitchell saw first-hand the threats of climate change in the Hindu Kush Himalayan region, and how the UK is helping Nepal manage climate risks. This includes through the £274m Climate Action for a Resilient Asia program, supporting the Integrated Centre for International Mountain Development (ICIMOD) to promote a more climate resilient and inclusive Hindu Kush.
At the One-Stop Crisis Management Centre at Lumbini Province Hospital, the Minister saw how UK funding is improving support to survivors of gender-based violence. He also discussed how the UK is supporting female entrepreneurs, thought leaders and activists to address social exclusion of women and marginalised groups.
