Use of counterpart fund approved
Kathmandu, March 10
The government of Japan has recently approved the usage of counterpart fund worth Rs 100 million for the implementation of the ‘Project for Cooperative Farming, Small Irrigation and Transportation Subsidy on Fertilisers and Improved Seeds - Earthquake severely affected districts of Nepal’, a statement released by Japanese Embassy in Nepal says.
The project was approved in order to rehabilitate and maintain small irrigation infrastructure damaged by the earthquake; enhance food security for small-farmers; support poverty alleviation programmes; give relief from the increased price of chemical fertilisers and seed in the target areas and improve agricultural livelihoods of farmers, specifically in 14 districts of Nepal most by the earthquake.
The counterpart fund was established through financial assistance extended by the government of Japan to increase agriculture production under KR2 (grant assistance for underprivileged farmers), as per the statement. Nepal government has procured fertiliser through this assistance, and sold it in the domestic market to prevent acute shortage and unexpected price hike. The amount collected from selling the fertiliser was deposited as a counterpart fund.
The fund can be used for implementing various social and economic development projects through consultation
between the two governments.