March 18, 2004
 Japan Extends the Non-Project Grant Aid to Nepal
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The Government of Japan has agreed to extend grant assistance amounting to five hundred million yen ( 500,000,000), equivalent to four million five hundred forty thousand US dollars (US$4,540,000), or approximately three hundred thirty-two million five hundred thousand Nepalese rupees (NRs.332,500,000), to His Majesty's Government of Nepal as Non-Project Grant Aid in Japan's Fiscal Year 2003.
His Excellency Mr. Zenji KAMINAGA, Ambassador of Japan to the Kingdom of Nepal, and Mr. Bhanu Prasad Acharya, Secretary of Ministry of Finance, His Majesty's Government of Nepal have signed and exchanged the Notes today on behalf of their respective governments.
This Non-Project Grant Aid has been extended for the purpose of contributing to the promotion of economic structural adjustment efforts of His Majesty's Government of Nepal as well as for the mitigation of economic difficulties, including indebtedness, of the Kingdom of Nepal. The Non-Project Grant Aid is foreign currency support to His Majesty's Government of Nepal to secure payments for the import of goods that are urgently needed for the development activities of His Majesty's Government of Nepal.
The grant extended under these Notes will be utilized for procuring necessary materials and commodities that are essential for the Kingdom of Nepal. His Majesty's Government of Nepal will have to deposit the necessary amount, in Nepalese currency, in a bank as a counterpart-fund after the utilization of this grant. The currency thus deposited, shall be utilized for the purposes of development of sectors such as health, local development, education, agriculture, drinking water and sanitation, and infrastructure with prior consultation between the two governments.
Previously, in Japan's last Fiscal Year 2002, the Government of Japan had extended a grant assistance of one billion three hundred million yen (1,300,000,000) as similar Non-Project Grant Aid to His Majesty's Government of Nepal for the purpose of development of infrastructure, education and health.
On the occasion, H.E. Mr. KAMINAGA expressed his belief that the Non-Project Grant Aid of the Government of Japan to His Majesty's Government of Nepal will certainly help play a significant role in overcoming economic and social development problems of the Kingdom of Nepal, through sincere and effective implementation. This support would also help to strengthen the existing cordial and cooperative relationship between the two nations.
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