Kathmandu, Nov 25,2014: India has agreed to provide Rs 8.79 billion for the construction of National Police Academy at Panauti, Kavre, to the Government of Nepal.
The Memorandum of Understanding (MoU) to this effect was signed and exchanged between the two Governments at the office of the Prime Minister and Council of Minister, Singha Durbar, Kathmandu, today, according to the Ministry of Finance.
The objective of this grant assistance is to establish a new, modern and well-equipped National Police Academy at Panauti, Kavrepalanchowk.
After the completion of project, Nepal Police will have a modern and well equipped training centre which will be instrumental to develop professional competency and leadership of Nepal Police officials, stated a press release issued by Ministry of Finance of Nepal on Tuesday.
This project will be implemented by Nepal Police under supervision of Ministry of Home Affairs.Â The duration of the project will be four years and is expected to complete by 2018.
Mr Suman Prasad Sharma, Secretary, Ministry of Finance and Ms Sneh Lata Kumar, Secretary (Border Management) Ministry of Home Affairs Government of India signed the agreement on behalf of their respective Governments.
Meanwhile, the Government of India has agreed to provideÂ Line of Credit (LOC) of Â USD 1 billion (about NRs 98Â billion 29 million) to the Government of Nepal.
The loan assistance of Line of Credit of USD 1 billion will be provided through the Exim (Export-Import) Bank ofÂ India.
The loan will be utilized for the hydropower, irrigation and infrastructural development projects. The Government of Nepal will select the projects to be financed by this LOC after the signing of this agreement.
The loan agreement was signed by Madhu Kumar Marasini, Joint Secretary at the Ministry of Finance and David Rasquinha, Deputy Managing Director, EXIMÂ Bank on behalf of Government of Nepal and EXIMÂ Bank of India respectively.
Both the MoU were signed and exchanged between the Government of Nepal and the Government of India in the presence of Prime Minister of Nepal Sushil Koirala and Prime Minister of India Narendra Modi today at Office of Prime Minister and Council of Ministers, Singhadurbar.
The Government ofÂ Nepal has expressed its sincere appreciation to the Government ofÂ India for these assistance and for the continued support in the socio economic development of Nepal, adds the Ministry is a statement released here today.