The government of Nepal and the World Bank have signed a $150 million concessional loan agreement to support disaster management under the Catastrophe Deferred Drawdown Option (CAT-DDO).

The agreement was signed in Washington DC, US, in the presence of Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel, who is attending the annual meetings of the World Bank Group and the International Monetary Fund. Finance Secretary Ram Prasad Ghimire and David Sislen, the World Bank’s regional country director for Maldives, Nepal, and Sri Lanka, signed the agreement at the World Bank headquarters on Thursday.

According to the finance minister’s secretariat, the loan will be utilised for disaster recovery, rehabilitation, and reconstruction.

The floods and landslides caused nationwide havoc just ahead of the Dashain festival, killing at least 391 people. Thousands of families have been displaced, with over 10,000 households sheltering in overcrowded temporary camps, struggling to access basic needs like clean water, sanitation, and healthcare.

Minister Paudel also participated in the joint meeting of South Asian governors during the 55th annual meetings of the World Bank and the IMF.

Additionally, Paudel held separate meetings with senior officials from the World Bank, the Asian Development Bank (ADB), and the International Finance Corporation (IFC). During discussions with World Bank Vice President for South Asia Martin Raiser and Executive Director Wempi Saputra, they reviewed various aspects of multilateral aid mobilisation. Paudel expressed his gratitude for the World Bank’s continued support in Nepal’s infrastructure development and social sector reforms, urging for enhanced cooperation.

In another meeting with Yingming Yang, ADB vice president for South, Central, and West Asia, Paudel emphasised ADB’s role as a key development partner for Nepal, requesting increased support for infrastructure and social development.

Paudel also met with IFC Vice President Riccardo Puliti, where he expressed satisfaction over the IFC’s growing investments in Nepal’s private sector. He reaffirmed Nepal’s commitment to fostering a favourable environment for private sector development, ensuring effectiveness in future IFC initiatives.