The FINANCIAL — The Asian Development Bank (ADB) has signed a Memorandum of Understanding (MOU) with the Kuwait Fund for Arab Economic Development (Kuwait Fund) to support the Community-Managed Irrigated Agriculture Sector Project in Nepal.
Under the agreement, Kuwait Fund will provide additional, parallel financing of KD$5million dinars ($17 million equivalent) to expand irrigation coverage, which should increase agricultural productivity, and improve community irrigation systems management, according to ADB.
The MOU was signed by Waleed Al-Bahar, Regional Manager for East, South Asia and Pacific Countries on behalf of the Kuwait Fund, and ADB’s Head of Office of Cofinancing Operations, Rune Stroem, on behalf of ADB.
ADB provided additional financing of $30 million for the project which is also cofinanced by the OPEC Fund for International Development (OFID). ADB administers OFID’s $30 million contribution.
“Supporting Nepal so quickly after the earthquake is crucial for establishing irrigation systems that lead to increased food supply. The MOU signing is also significant as it marks the first cofinancing between the Kuwait Fund and ADB since 2003,” said Mr. Stroem.
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members — 48 from the region. In 2014, ADB assistance totaled $22.9 billion, including cofinancing of $9.2 billion.