The developed country provide the assistant-ship to developing and underdeveloped country through their government or bilateral agency. The major agencies for forming bilateral project in Nepal are JICA (Japan International Co-operation Agency), GTZ (German Agency for Technical Co-operation), SDC (Swiss Agency for Development and Co-operation) etc.
Advantages of Bi-lateral Project:
- It helps to improve the relationship between two countries.
- It facilitates for the development of infrastructure.
- Its funding is mostly grant-based so receipant country should not repay.
- It generates employment opportunities.
- It accelerates the economic growth of country.
- It facilitates the transfer of new and modern technology.
- It promotes the depending on foreign country.
- It may be the means of getting own interest of donor agency.
- It creates the problems of nationality and other national disturbances.
- Donors may corrupt the developing countries, resources may be misused.
- Bilateral agencies may withdraw their aid or grants during the project period due to practical problems.