Himalayan News Service

Kathmandu, March 7:

The government of Japan has agreed to extend a grant assistance of over Rs 1.20 billion to Nepal for the execution of non-project grant aid and increasing food production in Japan’s fiscal year 2004. To this effect, ambassador of Japan to Nepal, Tsutomu Hiraoka and Bhanu Prasad Acharya, finance secretary signed the accord and exchanged two different notes on behalf of their respective governments, according to a press statement issued by the embassy of Japan here. Japan, being a close friend and development partner, has been extending development assistance to Nepal in order to enhance the well-being of Nepali people and to foster a long lasting friendly and cooperative relationship between the two nations, said the statement.

People to people relationships between Japan and Nepal has also been strongly promoted over the past years. As a result, a relationship of confidence and mutual understanding has developed between the two nations, said the statement. Considering the aspirations of the people of Nepal, the government of Japan has been responding to Nepal’s request of achieving sustainable socio-economic development for poverty alleviation in line with PRSP/Tenth Plan, which will ultimately help ensure peace and security. “The government of Japan also believes that strengthening democratisation process under a system of democracy and a constitutional monarchy will help achieve sustainable development in Nepal,” said the statement.

Japan hopes that Nepal will recover its ‘peace and stability’ as soon as possible on the basis

of democracy and constitutional monarchy. As stated in a statement issued by the press secretary of ministry of foreign affairs issued on February 2, 2005, Japan has been strongly urging for the release of political leaders and ensure the freedom guaranteed by the constitution. Japan also urges the Maoists to work for peace through dialogues. Japan has decided to continue grant-assistance to Nepal, with a view to address issues at the core of the Maoist insurgency such as poverty alleviation and redressing social inequity so as to significantly help reduce poverty and cultivate an atmosphere conducive towards attaining peace which would lead to the development of a stable democracy in Nepal, said the embassy’s statement.

The government of Japan expresses its firm belief that the assistance extended today will

directly benefit the people of Nepal through the implementation of development activities such as the improvement of agricultural productivity through the supply and use of fertilizer, the advancement of transportation and human communications, the effective implementation of disaster prevention and rehabilitation activities as well as the improvement of health and education in rural areas of Nepal. Under the first note, the government of Japan will extend a grant of one billion five hundred million yen (¥1,500,000,000), equivalent to one billion five million Nepali rupees (NRs 1,005,000,000), to Nepal as Non-Project Grant Aid (NPGA). This Non-Project Grant Aid will be extended for the purpose of contributing to the promotion of economic structural adjustment efforts of Nepal as well as for the mitigation of economic difficulties, including indebtedness.

This Non-Project Grant Aid will be provided as foreign currency support to Nepal to secure payments for the import of essential commodities required for the key development activities in the country, such as rural development, disaster prevention and health services. On the occasion, ambassador Hiraoka expressed his sincere hope that the continued support of

the government of Japan to Nepal in its development efforts will help in increasing the socio-economic development of Nepal as well as enhancing the well-be ing of Nepali people.