ADB to provide $30 million loan for education sector

The Asian Development Bank (ADB) has agreed to provide $30 million loan from its concessional Asian Development Fund (ADF) for improvement of the primary and secondary education system of the country.

A press release issued by the ADB said the loan will be given for the period of two and half years from January 2007 to July 2009.

The loan carries a 24-year term, including a grace period of 8 years, with an annual interest charge of 1% during the grace period and 1.5% thereafter.

In addition, another $2 million grant from the ADF will facilitate planning and a smooth transition into the 12-year school system by strengthening policies and programs, and helping realign governance, management and financing structures appropriate for the 12-year school system, the statement added.

The Government of Nepal is planning to develop public education into an integrated 12-year system - eight years of basic education and four years of secondary education.

“Through this program, ADB will support both the Education for All program (EFA) and the preparation and transition to the 1-12 year school system,” the release quoted Ayako Inagaki, an ADB Senior Education Specialist as saying. “The reforms and restructuring should result in a more equitable, inclusive, effective, and holistic education system,” Inagaki added.

The Ministry of Education and Sports is the executing agency for the project. nepalnews.com pb Dec 12 06