NEPAL SECOND GREEN, RESILIENT, AND INCLUSIVE PROGRAMMATIC DEVELOPMENT POLICY CREDIT (WB-P178687)

Countries
  • Nepal
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 12, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Nepal - Ministry of Finance
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Industry and Trade
  • Law and Government
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ WB website

Updated in EWS Mar 6, 2025

Disclosed by Bank Oct 14, 2023

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the objective of this project is to improve the enabling environment for Nepal's green, resilient, and inclusive development pathway.

Two pillars support the PDO. Pillar A: Consolidating GRID principles in strategic development planning across sectors, and Pillar B: Sectoral policies for GRID. Together, these pillars include measures for (a) sustainably and productively using natural capital for people’s livelihoods; (b) building resilience of urban and rural infrastructure, people, and livelihoods to climate, environmental, and other risks and shocks; (c) promoting more efficient and cleaner production, consumption, and mobility for greater livability; (d) strengthening inclusion in development decision-making and access to assets and services; and (e) mobilizing private sector participation to help green Nepal’s economy and create or enable job opportunities from tourism, forestry, agriculture, water security, solid waste management, and urban sustainability.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The overall residual risk for the operation is substantial. These risks relate mostly to macro-economic, political and governance, sector strategy and policies, technical design, institutional capacity, fiduciary, and stakeholders risks. Macroeconomic risks are substantial given the increasing frequency of shocks, higher inflation, reduced investment in human capital after the Covid-19 crisis, and increasing inequality. Political and governance risks are substantial, with frequent change in government and residual risks of political uncertainty remaining high. Risk relating to technical design arises from weak implementation of policies in Nepal, whereas institutional capacity for implementation and sustainability risk stems from the reform program requiring technical expertise and coordination across line ministries and tiers of government while the country continues to transition to its federal structure in line with the 2015 Constitution. The substantial fiduciary risk is derived from a weak internal control system and procurement capacity constraints. Further, stakeholders risks are substantial and arise from vested interest groups that benefit from the current policy regime and could resist reform that alters the status quo.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

A proposed credit in the amount of SDR 73.8 million (equivalent to US$100 million).


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

World Bank

Stephen Danyo
Sector Leader

George Joseph
Senior Economist

Martin Heger
Senior Environmental Economist

Borrower/Client/Recipient

Nepal
The Secretary
Ministry of Finance
moev@mof.gov.np

Implementing Agencies

Ministry of Finance
The Joint Secretary
International Economic Cooperation Coordination Division
moev@mof.gov.np

ACCESS TO INFORMATION

To submit an information request for project information, you will have to create an account to access the Access to Information request form. You can learn more about this process at: https://www.worldbank.org/en/access-to-information/request-submission

ACCOUNTABILITY MECHANISM OF THE WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint

How it works

How it works