ODA Loan to Nepal

March 30, 2001

  1. The Government of Japan will extend an ODA loan of up to a total of 5,494 million yen to the Kingdom of Nepal to support the construction of its social infrastructure. Notes to this effect were exchanged on March 30 (Fri) in Kathmandu between Mr. Mitsuaki Kojima, Japanese Ambassador Extraordinary and Plenipotentiary to Nepal, and Dr. Bimal Prasad Koirala, Secretary, Ministry of Finance, His Majesty's Government of Nepal.

  2. Name of the loan and the amount:
    Melamchi Water Supply Project - up to 5,494 million yen

  3. The project, a cooperative loan provided together with the World Bank and other institutions, is to construct the Mahankal-Melamchi water treatment plant, thereby providing the people of Kathmandu with a pure and plentiful water supply, as well as securing a water supply of 170,000 cubic meters per day from the Melamchi river through a 26km conduit. The loan will be utilized to construct a water treatment plant and an access road to the area.

  4. Terms and conditions of the loan:
    Interest rates: goods and services - 1.0% (rate for ordinary environment projects)
    consulting services - 0.75% (rate for special environment projects)
    Repayment periods: goods and services - 30 years (including a 10-year grace period)
    consulting services - 40 years (including a 10-year grace period)
    Procurement method: general untied
  5. With this loan, the sum of ODA loan to Nepal reaches a total of 63,889 million yen.

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