The World Bank's Board of Executive Directors has approved a $100 million development policy operation (DPO) to aid Nepal in advancing its efforts towards green, resilient, and inclusive development. This funding is part of a series of three DPOs designed to enhance the framework for sustainable growth in Nepal.
David Sislen, World Bank Regional Country Director for Maldives, Nepal, and Sri Lanka, commented on the initiative: "This programmatic DPO series is a catalyst for Nepal to build greater resilience and sustainability, and drive and protect the basis for long-term growth for all Nepalis." He added that the operation supports various sectors including green fiscal instruments, water security, irrigation, land use management, sustainable forest management, and climate information systems.
Since 2021, Nepal's government has been implementing an ambitious plan focused on environmental sustainability and inclusive development. This strategy addresses challenges such as joblessness, pandemics, economic opportunities for vulnerable groups, and climate risks affecting the country's people and environment.
The World Bank's DPO series supports Nepal's transition towards sustainable development. The policies endorsed by this series stem from stakeholder dialogues and align with Nepal’s developmental priorities. They focus on improving air quality, enhancing hydro-meteorological services for disaster risk reduction, securing water supply through improved irrigation practices, strengthening community forest management, and optimizing land use planning.
Stephen Danyo from the World Bank stated: "Nepal continues to put in place a strong policy program that recognizes that resilience is best achieved when sustainability and inclusion are also pursued in an integrated way." This approach underscores Nepal’s commitment to sustainability.
The policy program aims to attract investment in critical sectors vital for jobs and livelihoods while ensuring health and resilience benefits for millions of citizens. The DPO series plays a crucial role in generating durable development impacts in response to these challenges.