Kathmandu, October 2:

World Bank has agreed $100 million (Rs 6.5 billion) grant to the Poverty Alleviation Fund (PAF), recently. However, it will come into effect once the WB board endorses it in December.

It is the highest amount World Bank has committed to the PAF so far. The representatives of government, PAF and WB finalised the accord recently.

PAF works for the below poverty line communities ‘only’. Dr Ram Prakash Yadav, vice-chairman of PAF says that PAF has a different approach. “It works wi-th below poverty level community. The community distributes the amount among themselves.

Though, community doesnot have to pay back the amount to PAF, the individual has to pay it back to community and it remains as a revolving fund. They sometimes can use the amount for small infrastructure like constructing small bridges or roads, wh-ere poor and non-poor, bo-th participate unlike in income generation activities.

Earlier, WB has provided $40 million — in two phases $15 million and $25 million — grant to the PAF.

As PAF is a targeted national programme, government has also allocated budget to it. PAF will cover a total of 40 districts from this year. It is planning to add 15 more districts, making it to a total of 55.

In the remaining 20 districts from the total 75 districts, PAF is planning pocket programmes. Beside regular programme in 25 districts, PAF is currently supporting innovative programmes under its special window programme.