The government and the Asian Development Bank have signed a concessional loan agreement worth $100 million to support the Strengthening Public Finance Management and Devolved Service Delivery Programme.

The agreement was signed at the Ministry of Finance on Wednesday. The loan is a policy-based facility with a repayment period of 24 years, including an eight-year grace period. During the grace period, which runs until February 1, 2034, the interest rate will be 1 percent, rising to 1.5 percent thereafter.

Finance Secretary Ghanashyam Upadhyaya signed the agreement on behalf of the government, while ADB Nepal Country Director Arnaud Cauchois signed on behalf of the bank.

Speaking at the ceremony, Joint Secretary Dhaniram Sharma said the programme aims to improve Nepal’s expenditure and public financial management system, as well as intergovernmental fiscal management. After the signing, both the finance secretary and the ADB country director reiterated their commitment to continued and more effective cooperation.

The programme is expected to strengthen service delivery through more effective use of public resources, improve fiscal discipline, enhance budget formulation and expenditure management, and further empower local governments to achieve results-oriented development outcomes.

Senior officials from the Ministry of Finance and the Asian Development Bank were present at the event.