Asian Development bank (ADB) and Swiss government have agreed to provide US $ 25 million (18 million loan assistance and 7 million grant assistance) and 7.06 million grant assistance respectively (equivalent to Nrs 2.5 billion) to the Government of Nepal for the second phase of Decentralized Rural Infrastructure and Livelihood Project (DRILP).

An agreement to this effect was signed between the government of Nepal and government of Switzerland as well as government of Nepal and ADB in the Ministry of Finance, Singh Durbar in the capital on Wednesday.

The overall objectives of this project are to contribute to poverty reduction by enhancing the mobility of isolated rural people and by ensuring the easy access of the poor and isolated people in economic and social sector activities.

Rural infrastructure such as construction, rehabilitation and maintenance of rural road infrastructure, including community development and rural livelihood are the activities included in the project. The project is implemented in eighteen different rural districts of Nepal i.e. Baglung, Baitadi, Bajhang, Bajura, Darchula, Dolpa, Gorkha, Humla, Jajarkot, Jumla, Kalikot, Lamjung, Myagdi, Mugu, Okhaldhunga, Ramechhap, Solukhumbu and Taplejung.

The expected outcomes of this phase of the project are to have improved access to social services and economic opportunities of people including disadvantaged Groups (DAGs) stakeholders/institutions at all levels- through planning to implementation and managing construction and maintenance works in a socially inclusive manner.

A total of 260 km of roads will be constructed and 1200 km of roads will be maintained by District Development Committees (DDCs) with the participation of local communities. Moreover, it is expected to generate 4.7 million person days of employment at local level of which, 40 percent will be given to DAGs. The project will start from 1 January 2012 and will be completed on 31 December 2016.

Thomas Gass, Ambassador of Switzerland in Nepal, Paolo Spantigati, Office In-Charge of ADB, Nepal and Lal Shankar Ghimire, Joint Secretary, Ministry of Finance signed different agreements within the framework of joint financing agreement on behalf of their respective Governments and organization. nepalnews.com