Embassy of Japan in Nepal


September 23, 2005

Government of Japan Approves Utilization of Counterpart Fund of Non-Project Grant

The Government of Japan has, based on the request made by His Majesty's Government of Nepal, recently approved the utilization of the Counterpart Fund for thirty-six million, three hundred and fifty thousand Nepalese Rupees (NRs. 36,350,000) under the Non-Project Grant Aid in Japan's Fiscal Year (JFY) 2003 for implementing the following two projects.

The first project, 'Food Quality Management Strengthening Project (Phase I)' amounting to NRs. 33,350,000, will be implemented by the Department of Food Technology and Quality Control to construct a central laboratory building, and to procure some instruments, necessary to fulfill requirements to WTO standards. It is expected that such facilities will help facilitate the quality control of domestic products and promote the agro-based production of the country.

The second project, 'Increasing the Role of Potato in Poverty Alleviation in Nepal' amounting to NRs. 3,000,000, will be implemented by the National Potato Development Program of the Department of Agriculture. This project will focus on transfer of 'True Potato Seed' (TPS) technology to small-scale farmers, which will help extend potato seeds of low disease pressures, low cost planting, and low volume for transportation, storage and distribution. The TPS technology will enable poor farmers to access high quality seeds and to increase the productivity of the potato, thus improving food security and income generation in the hill and mountain areas, especially in food deficit areas.

As of JFY 2004, the Government of Japan has extended a total amount of Yen 3.3 billion to His Majesty's Government of Nepal as foreign currency support under the Non-Project Grant Aid Assistance of the Government of Japan for the mitigation of economic difficulties, including indebtedness of the Kingdom of Nepal.

Considering the aspirations of the people of Nepal, the Government of Japan has been responding to Nepal's requests to address social inequalities and to achieve sustainable socio-economic development for poverty alleviation, which will ultimately facilitate peace building and human security. The Government of Japan hopes that Nepal will recover peace and stability as soon as possible on the basis of multiparty democracy and constitutional monarchy.



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