Embassy of Japan in Nepal


September 21, 2007
Japan approves for Utilization of the Counterpart Fund

The Government of Japan has, based on the request made by the Government of Nepal, recently approved the utilization of the Counterpart Fund of two hundred, and ninety five million, three hundred fifty thousand Nepalese Rupees (NRs. 295,350,000) for the implementation of the following nine (9) ongoing projects.

In the agriculture (including fishery) sector, the Government of Japan has approved the following seven (7) projects to be implemented by various agencies under the Ministry of Agriculture and Cooperatives. The projects include:

  1. "Special Agriculture Production Program" is implemented for managing the buffer stock fertilizer in Nepal with an objective of promoting agriculture productivity through the proper supply of chemical fertilizer.

  2. Japan has supported through various projects from the 1970's the promotion of the installation of deep tube-wells for irrigation attached with agri-extension services in the Terai region, and replications of the same program have been supported through the "Agriculture Development Project, Janakpur".

  3. Japan has also supported the sericulture sector from 1995 under technical cooperation and now dispatching one expert in this field. The "Sericulture Development Program" will facilitate to promote sericulture activities with Technical Cooperation from Japan.

  4. "Small Scale and Co-operative Farming Based Small Irrigation Transportation Subsidy (Seeds and Fertilizer)" is a project designed to provide subsidies for repairs of small-scale irrigation systems through farmers' groups and/or cooperatives in all districts, and for bearing transportation costs of seeds and fertilizer to 26 districts in mountain regions with poor access.

  5. Japan provided assistance in the fishery sector, mainly during the 1990s. Promotional work in the fishery sector will be continued under the "Fisheries Development Program".

  6. In addition, "Natural Water Fisheries Development Project" is being supported for Technical Improvement for the Fishery to promote the Sector.

  7. "Agriculture Research Project" is being supported for the various agricultural research activities implemented by Nepal Agricultural Research Council (NARC) for the technical development in various fields of agriculture.

    In the forestry sector, the Government of Japan has approved one (1) project to be implemented by the Department of Irrigation under the Ministry of Forestry and Soil Conservation.

  8. Japan has extended assistance in the field of watershed management around the Kaski/Parbat area through a participatory approach. The "Community Development and Forest/Watershed Conservation" project is expected to promote replication of the project activities.

    In the irrigation sector, the Government of Japan has approved one (1) project to be implemented by the Department of Irrigation under the Ministry of Water Resources.

  9. Japan has provided technical assistance to establish a quality-testing laboratory in Pokhara for irrigation works under the "Construction Quality Testing Laboratories" projects. The assistance will support for the procurement/repairing of technical equipments, which is expected to contribute in the improvement of the quality irrigation systems.
The Counterpart Fund was established through the financial assistance extended by the Government of Japan to increase agriculture production under KR2 (The Grant assistance for underprivileged farmers). The Government of Nepal has procured fertilizer through this assistance, and sold it in the domestic market to prevent acute shortage and unexpected price hike. The amount collected from selling the fertilizer was deposited as a Counterpart Fund. The Fund can be utilized for implementing various social and economic development projects through consultation between the two governments.



Copyright (c): 2012 Embassy of Japan in Nepal