Nepal and World Bank Digitally Sign Loan to Enhance Health System

The Government of Nepal and the World Bank today exchanged the digitally-signed financing agreements for a $100 million concessional loan from the International Development Association and a $3.84 million grant from the Health Emergency Preparedness and Response Trust Fund to strengthen the quality, coverage, and resilience of Nepal’s health system. These agreements were digitally signed on October 27, 2023. This is the first World Bank-financed project in Nepal that was digitally signed.

A digitally signed finance system by the World Bank is a term that refers to the use of digital technologies to enhance the efficiency, security, and transparency of financial transactions and services. According to a new report by the World Bank Development Research Group, the establishment of digital payments for remittances instead of cash is of enormous benefit to poor people in emerging markets and also contributes to financial development.  Digital financial services lower the cost and increase the security of sending, paying, and receiving money. The resulting increase in financial inclusion is also vital to women’s empowerment.

The agreements for the Nepal Quality Health Systems Program Operation were signed by Finance Secretary, Dr. Krishna Hari Pushkar and the World Bank Country Director for Maldives, Nepal, and Sri Lanka, Mr. Faris Hadad-Zervos. The agreements were exchanged in the presence of the Honorable Minister of Finance, Dr. Prakash Sharan Mahat, World Bank Managing Director for Operations, Ms. Anna Bjerde, and the World Bank Vice President for South Asia, Mr. Martin Raiser.

The program will be implemented by the Ministry of Health and Population in coordination with the Health Insurance Board at the federal level, and selected provincial and local levels in Koshi and Gandaki provinces. It emphasizes improving the readiness of the health system for delivery of quality healthcare, enhancing coverage of health insurance, and strengthening health emergency preparedness and response capacity at the selected provincial and local levels.

“Quality healthcare serves as the cornerstone of human capital development. The comprehensive reform agenda set forth by the Nepal Quality Health Systems Program Operation will be pivotal in enhancing access to high-quality healthcare services,” said Dr. Krishna Hari Pushkar, Finance Secretary.

“We are committed to working with the government to build a resilient and inclusive public health system in Nepal that protects vulnerable populations and contributes to improved productivity and strong human capital development, which is fundamental to sustainable economic growth,” said Faris Hadad-Zervos, World Bank Country Director for Maldives, Nepal, and Sri Lanka.