Japan approves utilisation of counterpart fund

Following the request made by Nepal, Japan has recently approved the utilisation of the Counterpart Fund of Rs 295.35 million for the implementation of different ongoing projects.

The projects in which the fund would be utilised include seven related with agriculture. They include projects aimed at enhancing agriculture production, agro-extension, sericulture development, providing subsidies for repairs of small-scale irrigation systems through farmers' groups and/or cooperatives, fisheries development and agriculture research.

Likewise, the fund will also be utilised for community development and forest/watershed conservation project.

"The Counterpart Fund was established through the financial assistance extended by the Government of Japan to increase agriculture production under KR2 (The Grant assistance for underprivileged farmers). The Government of Nepal 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 utilised for implementing various social and economic development projects through consultation between the two governments," says a statement by the Japan Embassy. nepalnews.com Sep 21 07