Asian Infrastructure Investment Bank Designates Nepal as Top Priority for Infrastructure Investment

The Asian Infrastructure Investment Bank (AIIB) has reaffirmed its commitment to prioritize Nepal as a key partner for infrastructure development.

During a recent meeting with Finance Minister Barsaman Pun, AIIB's delegation, led by Director R.M.P. Rathnayake, acknowledged Nepal's policy reforms and expressed intent to increase investments based on Nepal's developmental needs. Minister Pun emphasized the importance of concessional loans and urged for enhanced collaboration with the private sector to expedite infrastructure projects.

Minister Pun extended an invitation to AIIB to participate in Nepal's upcoming investment conference, emphasizing the country's comparative advantages in sectors like hydropower, tourism, and information technology. He highlighted Nepal's aspiration to achieve Millennium Development Goals by 2026 and called for diversified investments to support this objective. Additionally, Minister Pun sought AIIB's support in mobilizing climate finance for development projects and pledged to improve existing laws to foster a more conducive environment for private sector investment.

Furthermore, AIIB's significant investments in Nepal were highlighted, including a $40 million commitment to the ongoing construction of the Upper Trishuli-1 hydropower project, which boasts a capacity of 216 megawatts and features a South Korean company as the primary investor. Additionally, AIIB has extended support to power transmission line projects underway in the provinces of Lumbini and Karnali. These investments underscore a concerted effort to bolster Nepal's infrastructure and energy sectors in collaboration with international partners.