Bi-Lateral Project

Project carried on under agreement between two countries or bi-lateral agencies or country is called the bi-lateral project. It is the result of an agreement or contract between two friendly countries. It is characterized by foreign aid based, adequate time for implementation, pre-determined planning and scheduling and maximum capital requirement, normal life cycle etc. Generally poor and developing country cannot implement large scale of project due to lack of sufficient capital, enhanced technology and skilled manpower. So they request to foreign country or donor agency of foreign country to provide assistant-ship project implementation. The foreign country or bi-lateral agency provide them loan or grants, specially they provide grants which may be in the form of cash or kind. Sometime donors themselves execute the bilateral project and handover the project to receipant country. However, the grants provided by donor agencies or country should not be repaid as an interest or principal by receipant country.
There are many bi-lateral projects in Nepal, in education, health, agriculture, hydro power sectors. For example B.P. Koirala Institute of Health and Science (Nepal and India), BICC (Nepal and China), Trisuli Hydropower (Nepal and India).

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.
Disadvantages of Bi-lateral Project: 
  • 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.

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