UK to grant 90m pounds to Nepal for infrastructure development

Finance Secretary Toyam Raya on behalf of Nepali government and British Ambassador to Nepal, Nicola Pollitt on behalf of the UK government signed and exchanged the MOU amid a signing ceremony held at the Ministry of Finance in Singha Durbar, Kathmandu, on Thursday, March 16, 2023. Photo: MoFNepal/Twitter

KATHMANDU: The Ministry of Finance and the British Embassy in Kathmandu signed a memorandum of understanding (MoU) for UK-Nepal collaboration through the Local Infrastructure Support Programme (LISP), on Thursday.

Finance Secretary Toyam Raya and British Ambassador to Nepal Nicola Pollitt signed the agreement from their respective sides at a programme held at the Ministry of Finance.

The LISP is co-designed between the Government of Nepal and British Embassy Kathmandu. Up to 1.7 million Nepali citizens will directly receive more sustainable and inclusive infrastructure services as a result. The UK will provide up to 90 million pounds (Rs 14.4 billion) support for this work, according to a statement issued by the Finance Ministry.

The programme will support the Government of Nepal to improve the delivery and sustainability of wider investments in local infrastructure, worth over 2 billion pounds (Rs 320 billion) over the next six years.

Speaking on the occasion, British Ambassador Pollitt said that the UK and Nepal have a long and proud history of collaboration in building, maintaining and reconstructing infrastructure. This has delivered significant results for the people of Nepal over the last six decades, for which we and the Government of Nepal are immensely proud.

“LISP is an important programme for both the Government of Nepal and the British Embassy Kathmandu, and another great example of our historic partnership”, she said.

Likewise, Finance Secretary Raya acknowledged the contribution and continuous support of the British Government for the social and economic development of Nepal for a long. He also highlighted that this programme would support the local level infrastructure and capacity building of local governments which will enhance the quality of public life at local levels.

In addition, the Government of Nepal will also provide up to 40 million pounds (Rs 6.4 billion) co-financing to encourage local governments for sustainable and resilient infrastructure service delivery, according to the Ministry.


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