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World Bank grants US$ 127 m to Nepal for various projects

In a major aid package, the World Bank (WB) has announced US$ 127 million grants for three separate projects in Nepal, one being the Emergency Peace Support Project which aims to consolidate the peace process.

A press statement issued by the WB on Wednesday said that the US$ 50 grant under the Emergency Peace Support Project intends to help the government of Nepal fulfill commitments made under the Comprehensive Peace Agreement and the subsequent 23 Point Agreement.

As part of the peace process, the Nepal government has authorised payments of US$ 1540 each to the families of the war deceased. It has also authorised monthly payment of US$48 to approximately 19,600 verified Maoist combatants living in different cantonments, including arrears on these payments that have built up over the past 10 months, the WB said. In addition, the project will also help the government pilot reintegration initiatives.

"There is a high degree of commitment at the political level to ensure lasting peace in Nepal, and this project is designed to contribute to this agenda," said Susan Goldmark, WB's Country Director for Nepal, adding, "In this pivotal moment in Nepal's history, it is important to take concrete steps to consolidate the peace process and to ensure that development and service delivery are scaled up."

Likewise, the WB also approved additional grant financing of US$50 million for the Nepal's health sector and US$27 million for the Second Rural Water Supply and Sanitation Project.

The grant to the health sector programme is designed to expand access to and the use of essential health care services, especially by underserved populations. In addition, the grant will support two recent initiatives: the removal of some user fees and the introduction of the Safe Delivery Incentive Programme benefiting poor and disadvantaged women and children.

"The original project, which was approved on September 9, 2004, has helped a rapid expansion of access to essential services. For example, the community-based integrated management of childhood illnesses has been expanded from six to 55 districts and will cover all the country's 75 districts within a year."

The grant for the Rural Water Supply and Sanitation Project will scale up the project to provide services to more remote rural areas. According to the bank, aims to improve institutional performance of the rural water supply and sanitation sector and will also support communities to form inclusive local water supply and sanitation user groups that can plan, implement, and operate drinking water and sanitation infrastructure that delivers sustainable health, hygiene, and productivity benefits to rural households.

These grants are from the International Development Association (IDA), the World Bank's concessionary lending arm. nepalnews.com mk May 08 08

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