Nepal: Preparing the Market Access and Productivity Growth for the Private Sector Project

The project preparatory technical assistance proposed to develop a program that would support private sector efforts in improving market access and productivity mainly for Nepal's export industries. The envisaged program would stimulate structural transformation of the Nepal industries through policy and legal reforms and change of services. Although ADB has been substantially involved in the development of Nepal’s private sector potential for more than a decade, the removal of macroeconomic policy, legal and institutional constraints did not prompt a strong private sector response. Such a removal would only be effective if the private sector would be able to acquire resources and readjust them to changing domestic and international market opportunities. The PPTA was also timely as Nepal prepared for accession to the World Trade Organization.


Commitment Date

Funding Type




Total Cost

1 Oct 2003

Technical Assistance


Public Sector Management




Legal and institutional analysis with respect to competitive environment in the private sector, leading to the design of a possible program component

Factor market analysis (particularly the labor, capital and technology markets)

Analysis of market structure and dynamics linked to geography and market networks, cluster analysis

Competitiveness analysis, with export diversification, export unit values; promising market niches identified for investment operations

Risk mitigation analysis

Design of PPTA component and funding mechanism

Impact analysis (indirect/direct poverty, social impact, environmental impact)

Design of joint investment facility (matching fund could be backed by credit enhancements)

Development of institutional, financing, legal, and regulatory aspects for the joint investment facility in a business plan


$400,000 (Japan Special Fund)

$90,000 (Government of Nepal)