Kathmandu, March 2:

The UK Department for International Development (DFID), a major bilateral donor in Nepal, has spent Rs 3,930 million during the year 2005, which is only 12.4 per cent of the allocated funds for the year.

Though DFID had allocated Rs 31,620 million for the year, due to adverse working condition in the country, delivering effective services and carrying forward development initiatives at an acceptable cost was challenging. This has also constrained the use of the total allocated amount, DFID Annual Report states.

The annual report is the first since DFID established an office in Nepal in 1999.

The purpose of the report is to enable people throughout the country to understand what DFID is trying to achieve and the type of projects and programmes it supports, states a press release issued by DFID, quoting Mark Mallalieu, head of DFID Nepal.

Peace building, livelihoods, basic services and governance and social inclusion are the major projects and programmes of DFID Nepal where Rs 530 million, Rs 1,180 million, Rs 1,410 million and Rs 810 million have been spent respectively in the year 2005.

Except Bara district, DFID Nepal has programmes in all the districts of Nepal covering all five development regions of the country.

The worsening conflict and political changes made DFID to review its programme in the first half of 2005. The fundamental review found that the context for development had worsened during 2005, increasing the cost of delivering aid and monitoring its use with no justification for increasing aid as planned, states the report.

Quoting Mallalieu, the release further adds, “Major challenges lie ahead; the conflict continues relentlessly; democracy is under threat and there is a risk of a humanitarian crisis. We look for opportunities to deliver effective services, whilst ensuring transparency and accountability in our work and in the work of the partners we fund. However, our support remains under constant review to ensure that it is reaching those for whom it is intended.”

Of 33 initiatives funded during the year 2005, 29 are being carried through to 2006 and beyond, out of which 14 initiatives are between Rs 125 million and Rs 1,250 million and nine initiatives cross the mark of Rs 1,250 million.

The report of DFID also highlights that Nepal is likely to achieve the targets of reducing poverty, reducing the number of young children dying and improving access to safe drinking water, though challenges still persists in meeting the goals.

The target of increasing girls’ enrolment may be achieved if current improvements continue. However; Nepal is off the track to reach the other targets, the report states.