April 25, 2007
 The Government of Japan Approves the Utilization of the Counterpart Fund of Non-Project Grant Aid
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The Government of Japan has, based on the request made by the Government of Nepal, recently approved the utilization of five hundred and thirty-seven million, five hundred thousand Nepalese Rupees (NRs.537,500,000) under the Counterpart Fund of Non-Project Grant Aid (NPGA); NPGA - 2002, NPGA - 2003 and NPGA - 2004, for implementing the following twelve (12) projects in Nepal's Fiscal Year 2063/64 (2006/07).
Name of the projects being approved for implementation with their respective sectors:
Reconstruction, Rehabilitation and Development of Rural Areas (including Rural Infrastructure, Road Transport and Electrification) (NRs.253,480,000)
- Suspension Bridge Division Project (NRs.35,000,000)
- Pilot Community Based Rural Bridge Program (NRs.48,480,000)
- Sindhuli Road (Section - I) Upgrading Project (NRs.50,000,000)
- Various Roads Repair and Maintenance Projects under the Department of Road
(NRs. 50,000,000)
- Ilam Rural Electrification (NRs.70,000,000)
Drinking Water and Sanitation (NRs.40,000,000)
- Improvement and Rehabilitation of the Existing Water Supply System in Rural Parts (NRs.40,000,000)
Disaster Management (NRs.145,220,000)
- Mugling - Narayanghat Water Induced Disaster Prevention Project (NRs.96,290,000)
- Sindhuli Road (Section - I) Water Induced Disaster Prevention Project (NRs.48,930,000)
Education (NRs.50,000,000)
- Dalit Scholarship for Primary Schools in Disadvantaged Districts (NRs.50,000,000)
Agriculture (NRs.48,800,000)
- Strengthening of Food Quality Control Management System (NRs.30,000,000)
- Increase the Role of Potato in Poverty Alleviation (NRs.3,000,000)
- Strengthening of Artificial Insemination and National Livestock Breeding Centre
(NRs.15,800,000)
Under the Reconstruction, Rehabilitation and Development of Rural Areas, Rural Infrastructure Sub-sector (i) wooden planks of seventy-one (71) suspension/suspended bridges will be replaced with steel decks and twenty-three (23) suspension bridges will be rehabilitated on trails located in 30 districts, contributing to improving accessibility in rural areas, and (ii) eight (8) bridges will be constructed for improving vehicular access in eight districts.
In the Road Transport Sub-sector, two projects will be implemented by the Department of Roads in order to upgrade and maintain the strategic road network in Nepal including Sindhuli Road (Section I: Sindhuli Bazar - Bardibas Section).
In the Rural Electrification Sub-Sector, the Nepal Electricity Authority (NEA) will implement one project in order to distribute electricity to eleven (11) Village Development Committees (VDCs) of Ilam District for the purpose of promoting rural economy such as through tourism and local industries, as well as achieving an increased access to electricity.
In the Drinking Water and Sanitation Sector, five water supply projects will be implemented in five (5) districts (Sarlahi, Rautahat, Parsa, Dang and Kailali Districts) providing access to safe drinking water for a population of approximately 97,000. This project will thus, it is expected, contribute to reducing water borne diseases, improving hygiene and sanitary conditions, and decreasing the time women and children spend fetching water.
In the Disaster Management Sector, the Department of Water Induced Disaster Prevention (DWIDP) will implement rehabilitation work on the Mugling-Narayanghat Highway and Sindhuli Road (Section I) which has been affected by landslides, debris flows and floods. Taking into consideration the negative impact on transportation, communication and the economy of the country, there is an urgent need for the rehabilitation of these two strategic roads. These two projects will be implemented in close cooperation with the Department of Roads (DoR), Ministry of Physical Planning and Works to mitigate disasters along the roads and thus result in smooth vehicular movement.
In the Education Sector, the 'Dalit Scholarship for Primary Schools in Disadvantaged Districts', will be implemented by the District Education Offices under the Department of Education to provide scholarships to around 142,857 Dalit children. This will contribute to increasing the enrollment in primary schools and also towards achieving the goal of the "Education for All".
Under the Agriculture Sector, a total of three projects will be implemented. The Department of Food Technology and Quality Control will construct a central laboratory building. It is expected that such facilities will help facilitate quality control of domestic products and promote the agro-based production of the country.
The National Potato Development Program will implement a project focusing on transferring 'True Potato Seed' (TPS) technology, which will help extend potato seeds of low disease pressures, low cost planting, and low volume for transportation, storage and distribution, to small-scale farmers. TPS technology will enable poor farmers to access high quality seeds and increase productivity of potatoes, thus improving food security and income generation in the hill and mountain areas, especially in food deficit areas.
Finally, Semen Production Laboratory, Pokhara, under the Department of Livestock, will implement a project in order to (i) increase the quantity of livestock frozen semen produced at the laboratory, (ii) increase the quality of frozen semen, and (iii) support artificial insemination. By the improvement and expansion of this technology, increased production and improved productivity will occur of livestock products.
As of JFY 2006, during a period of four (4) fiscal years, the Government of Japan has extended a total amount of 4.4 billion Japanese Yen to the Government of Nepal under the Non-Project Grant Aid Assistance. This has been given as foreign currency support to mitigate economic difficulties, including the indebtedness of Nepal.
Considering the aspirations of the people of Nepal, the Government of Japan has been responding to Nepal's requests to achieve sustainable socio-economic development for poverty alleviation, which will ultimately facilitate peace building and human security in the country.
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