Kathmandu: The Government of Nepal and the Government of Japan signed two agreements for utilizing grant assistance of JPY 2 billion and 256 million (approximately 2 billion rupees) for the implementation of the Project for the Improvement of the
Rehabilitation of Irrigation System in Eastern Terai Area; and the concessional credit of JPY15 billion and 901 million (approximately 14.2 billion rupees) for the Urban Transmission and Distribution System Improvement Project.
The grant assistance will be used for the maintenance and improvement of Chandra Nahar irrigation system for reliable and continuous irrigation facilities, mainly in the Eastern Terai region.
Similarly, the concessional credit will be utilized for improving the urban electricity transmission system in the big cities of Nepal, including Kathmandu and Pokhara with the aim of reducing transmission losses as well as increasing the reliability of
electricity distribution.
The credit assistance applies interest rate of 0.01% per annum, 30 years’ repayment period and 10 years’ grace period.