Embassy of Japan in Nepal


December 15, 2006

Japan Extends the Non-Project Grant Aid

The Government of Japan has agreed to extend a grant assistance of one billion and one hundred million yen (1,100,000,000), equivalent to six hundred sixty-eight million and eight hundred thousand Nepalese rupees (NRs.668,800,000), or approximately nine million three hundred and sixty thousand US dollars (US$9,360,000), to the Government of Nepal for the implementation of Non-Project Grant Aid (NPGA) in Japan's Fiscal Year 2006.

His Excellency Mr. Tsutomu HIRAOKA, Ambassador of Japan to Nepal, and Mr. Vidyadhar Mallik, Secretary of the Ministry of Finance, have signed and exchanged the Notes today on behalf of their respective Governments.

The Non-Project Grant Aid will be extended for the purpose of contributing to the efforts of the Government of Nepal for socio-economic development and poverty alleviation, especially that in the rural areas, and also to support its efforts for the consolidation of democracy and the realization of permanent peace in the country.

The Non-Project Grant Aid will come in the form of foreign currency support in order to secure payment of essential imports required for the key development activities, such as development of rural areas and also for peace building and the consolidation of democracy. The Government of Japan expresses its firm belief that the assistance extended today will directly benefit Nepal and its people.

Besides, the Government of Nepal will have to deposit a specified amount of money separately, in Nepalese currency, into a bank as a counterpart-fund of the NPGA after the utilization of this grant. The currency that is deposited under the NPGA counterpart-fund is to be effectively utilized in health, education, local development and economy, reconstruction, rehabilitation and development of rural areas, disaster management, drinking water and sanitation, agriculture, and local governance and peace building with prior consultation between the two Governments.

Japan, being a close friend and development partner, has been extending official development assistance (ODA) to Nepal in order to enhance the well-being of the Nepalese people and to promote a long lasting friendly and cooperative relationship between the two nations. As the result, relationship of confidence and mutual understanding exists today between the two nations. To foster this relationship to a new height, commemorative ceremonies and cultural events have been organized in both countries throughout this year to mark the 50th Anniversary of the establishment of Japan-Nepal Diplomatic Relations.

Japan, which has been enjoying 50 years of very friendly relations with Nepal, and fully understands the aspirations of the people of Nepal for peace, stability and for a better future. The Government of Japan has been responding to Nepal's requests for achieving sustainable socio-economic development for poverty alleviation in line with the PRSP, which will ultimately contribute to peace building and ensure human security in Nepal. Japan also remains committed to extend its assistance in areas where Japan's ODA could contribute to preserve democracy and peace in Nepal.

In line with this, the Government of Japan hopes that the comprehensive peace agreement will be implemented sincerely and that the election for the constituent assembly will be carried out freely and fairly, thus, to consolidate democracy and establish permanent peace in Nepal. Japan hopes that Nepal will recover its peace, democracy and stability as early as possible and move towards sustainable development for prosperity.

In the Japanese Fiscal Years 2002, 2003 and 2004, the Government of Japan had extended a total of three billion and three hundred million yen (3,300,000,000) as grant assistance for similar Non-Project Grant Aid to Nepal.

On this occasion, HE Mr. HIRAOKA has expressed his sincere hope that the NPGA extended today will certainly help to strengthen the efforts of the Government of Nepal for peace, democracy and development. HE Mr. HIRAOKA, further expressed his wish that this support will prove to be yet another milestone in strengthening the friendly and cooperative relationship that so happily exists between Japan and Nepal.



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