Nepal is to receive $321 million in loans from the Asian Development Bank over the next three years. In line with the bank's country strategy and program for 2004 through 2006, most of the loan projects will basically aim at poverty reduction. The assistance consists of 14 loan projects including eco-tourism, rural and agriculture development, educational improvements, rural electrification and governance reforms. The bank has also said it would help Nepal's private sector gain better access to world markets and improve productivity with a $400,000 grant from the Japan Special Fund. Nepal is in the process of acceding to the World Trade Organisation (WTO) and as a result the economy faces a phase-out of textile quotas. The money will be used to identify policy, legal and institutional constraints that prevent the private sector from responding effectively to market opportunities, and analyse recent developments in the competitiveness of Nepal's industry and services sectors, ADB says. "Nepal could potentially reap large economic and social benefits from increased private sector competitiveness," says Hans-Peter Brunner, an ADB Senior Financial Economist. Although Nepal is among the most open economies in the subregion, macroeconomic adjustments alone are not inducing productivity growth in the private sector.