Sustainable and Inclusive Finance (WB-P508961)

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
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
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
Jul 7, 2025
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
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant, Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Loan Amount (USD)
$ 90.00 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.
Grant Amount (USD)
$ 0.65 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)
$ 90.65 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
Primary Source

Original disclosure @ WB website

Updated in EWS Mar 5, 2025

Disclosed by Bank Dec 21, 2024

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

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 increase access to finance for the MSMEs contributing to jobs growth.

By expanding operations and entering new markets, MSMEs sustain and generate employment, directly contributing to economic development. By mitigating risks for lenders (via credit guarantee schemes) and improving creditworthiness visibility (via Credit Bureaus), these mechanisms increase MSME access to financing. This access empowers MSMEs to expand operations, leading to higher productivity and job creation, significantly contributing to economic development.

Component 1: Strengthening Risk Sharing Mechanisms ($85m)

Component 2: Enhancing Credit Reporting Systems ($5m)

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 environmental and social risk for the project is classified as ‘moderate’. The project's focus is on policy reforms and institutional strengthening to improve access to credit of underserved sectors and unbanked population that would be transformational for the financial inclusion, strengthen capital adequacy, establish centralized KYC platform and integrate non-bank related credit information within the country. This will involve soft activities such as providing technical assistance and capacity building. There will be no financing of civil works, thus eliminating environmental and social risks typically associated with physical infrastructure development and land acquisition. However, the project will procure computers, servers, and other IT equipment necessary for improving digital data management and solutions. The anticipated environmental risks and impacts are primarily associated with the end-of life management of this IT equipment, which could contribute to increase and mismanagement of e-waste. Moderate environmental concern is also on micro, small, and medium enterprises (MSMEs) with new technologies/works which may not fully consider the natural and social environment. The main social risks include inadvertent exclusion of individuals or agencies during policy reform and institutional framework to design access to credit and banking facilities. The credit facility may not fully engage, disclose information, and consider eligible MSMEs and women-owned businesses from accessing credit.

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

IDA Credit: US$ 90.00 million

Trust Funds (Grand amount): US$ 0.65 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

Sabin Raj Shrestha
Senior Financial Sector Specialist

Tatsiana Kliatskova
Senior Financial Sector Economist

Borrower/Client/Recipient

Financial Sector Management and Credit Coordination Division of MOF
Narayan Risal
Joint Secretray
nrisal@mof.gov.np

Implementing Agencies

Credit Information Centre Limited
Anil Chandra Adhikary
CEO
anil@cib.org.np

Deposit and Credit Guarantee Fund
Ramesh Ghimire
CEO
rameshghimiremire@dcgf.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