World Bank to grant $127 million aid to Nepal

{image-world bank_30042008.jpg news.oneindia.in}Kathmandu, Apr 30: Nepal will soon receive aid worth 127 million dollars from the World Bank (WB) to ensure the success of the ongoing peace process in the country.

Michel Mordasini, a member of a WB delegation in Nepal, said the bank is ready to extend all possible assistance and cooperation to the country but it will depend on the level of implementation and the continuation of peace process. While clearing doubts about whether it will continue to support Nepal's development efforts even after the Maoists, who are still tagged as a terrorist organisation by Washington, come to power, Mordasini said: "The World Bank is an apolitical institution and the actual volume of assistance will depend upon progress made on the ground."

Mordasini said about 50 million dollars out of the total aid amount will be spent on salaries to Maoist combatants kept in UN monitored cantonments. The aid package will also support health and rural drinking water projects.

The new assistance proposal, which is in addition to 252 million dollars that the bank has already announced, will go to the WB board for final approval on May 6, he added.

The delegation comprising 11 out of the 24 WB board directors held discussions with the Prime Minister, Finance Minister, leaders of political parties and civil society members during their four-day stay in Nepal.

They have also met the Communist Party of Nepal-Maoist Chairman Prachanda and his deputy Dr Baburam Bhattarai on Tuesday morning.

They had a very constructive and fruitful dialogue with Prachanda on the prospects of mutual cooperation in areas like sustaining peace, accelerating development pace, climate change, promoting hydropower, creating jobs and improving basic services, nepalnews.com quoted Mordasini as saying.

ANI