KATHMANDU, Dec 21: Japan on Monday signed Official Development Assistance (ODA) with Nepal for loan of up to 26 billion Japanese Yen (equivalent to approximately Rs 22 billion) for reconstruction of schools and houses affected by the April earthquake.
Approximately Rs 12 billion or 14 billion Japanese Yen will be used for reconstruction of schools, while and 12 billion Japanese Yen (equivalent to approximately Rs 10 billion) will be used for housing reconstruction.
Similarly, a separate grant assistance worth 4 billion Japanese Yen (equivalent to approximately Rs 3.5 billion) has also been signed and exchanged between the two governments for 'The Project on Rehabilitation and Recovery from Nepal Earthquake', according to a statement issued by the Japan International Cooperation Agency (JICA) Nepal Office.
These assistances are part of 32 billion Japanese Yen (equivalent to approximately Rs 27 billion) assistance, which was announced by the Japanese government at the International Conference on Nepal's Reconstruction 2015 held on June 25.
Exchange of Notes on the projects were signed and exchanged between Finance Secretary Lok Darshan Regmi and Japanese envoy to Nepal Masashi Ogawa, on Monday.
In the function held at the Ministry of Finance, the loan agreements of the projects were signed and exchanged between Chief of International Economic Cooperation Coordination Division Madhu Kumar Marasini and Chief Representative of Japan International Cooperation Agency (JICA) Nepal Tsutomu Shimizu on behalf of their respective institutions. Both the agreements come with 40 years repayment and 10 years grace period with 0.01 percent interest, it added.
The school reconstruction project will rebuild and retrofit schools in the districts severely affected by the devastating earthquake by financing the necessary expense for reconstruction of schools and related facilities, thereby contributing to the improvement of education service and earthquake resilience for sustainable socio-economic growth, the statement added.
Likewise, the housing reconstruction project will restore and improve the living condition of the victims of earthquake by reconstructing the destroyed and damaged houses with an adequate seismic standard thereby contributing to sustainable socioeconomic development in the region with Build Back Better (BBB) concept.
As Nepal has announced Rs 200,000 to build the damaged houses as grant, JICA will provide this loan so that Nepal government can provide the grant to the victims, the statement said, adding, "The reconstruction work of school buildings and houses will carried out in 14 districts in which JICA will reconstruct school building in six districts namely Lalitpur, Dhading, Nuwakot, Rasuwa, Gorkha and Makwanpur, and houses in two districts Sindupalchowk and Gorkha."
Similarly, the grant assistance will be used for reconstruction of Paropakar Maternity and Women's Hospital and Bir Hospital, and rehabilitation of Water Transmission System in Chautara and bridge construction along Barhakilo-Barpak road.
Published on: My Republica (December 21, 2015)