The Asian Development Bank (ADB) and the Nepali Ministry of Finance (MoF) signed a 10-million-U.S.- dollar loan agreement to promote socio-economic empowerment of poor, rural women of Nepal, state-run Radio Nepal reported Saturday.

According to a press statement issued by the ADB, the agreement to this effect was signed at the MoF by Bhoj Raj Ghimire, secretary of MoF on behalf of the Nepal government, and Sultan H Rahman, country director of ADB-Nepal Resident Mission, on behalf of the ADB.

The loan is aimed at reducing poverty through empowering poor rural women and disadvantages groups, such as ethnic and low-caste women in 15 poorest and most disadvantaged districts in the mid- western and far-western regions and central region, the statement said.

The loan is going to be used under the project Gender Equality and Empowerment of Women.

The project comprises of four components covering economic, legal, socio-cultural, and institutional empowerment of disadvantaged rural women.

The project targets to benefit 207,000 women and 80 Village Development Committees in 15 core districts.

The micro-enterprises program is expected to reach 30,000 women. The community-based water supply systems will benefit 12,600 women and 100,000 women will benefit from the legal component.

According to ADB, the total cost of the project is about 15.5 million dollars, of which the government is providing 3.4 million dollars and the households and communities benefiting will contribute 2.1 million dollars.

ADB will provide a loan of 10 million dollars, which accounts for 65 percent of the project cost.

The loan comes from its concessional Asian Development Fund and has a 32-year term, including a grace period of eight years, according to the statement.

Source: Xinhua