The government of Japan has agreed to provide a grant assistance of 1,124,000,000 Japanese Yen ( approximately NRs. 691.26 million ) to His Majesty's Government of Nepal for the project "Improvement of Water Supply Facilities in Urban and Semi-urban Centers". The Exchange of Notes to this effect was signed today at the Ministry of Finance by Finance Secretary Mr. Bhanu Prasad Acharya on behalf of His Majesty's Government of Nepal and by His Excellency Mr. Tsutomu Hiraoka, Ambassador Extraordinary and Plenipotentiary of Japan to the Kingdom of Nepal on behalf of the Government of Japan.

This grant assistance has been provided to His Majesty's Government of Nepal under the Japanese grant scheme in accordance with Japanese economic cooperation policy for the execution of the project for Improvement of Water Supply Facilities in Urban and Semi-urban Centers. This grant will be used within December 6, 2006.

The present assistance aims to improve the water supply quality in three urban centers of eastern Nepal, namely, Dhulabari, Gauradaha and Mangadh benefiting more than 77000 people. Japan Government has been extending its support for the Improvement of Water Supply Facilities in Urban and Semi-urban Centers of Nepal since 2003. In this connection, this grant provided by Japanese Government will be instrumental for the development of drinking water facilities of the urban and semi-urban centers of the kingdom of Nepal.

His Majesty's Government of Nepal has expressed its sincere appreciation to the Government of Japan for this assistance and also for its continued support for socio-economic development of Nepal.