Nepal | World Bank

Nepal - Rural Access Improvement and Decentralization Project : additional financing

Nepal - Poverty Alleviation Fund Project

Ratings for the Poverty Alleviation Fund (PAF) Project for Nepal were as follows: outcomes were satisfactory, the risk to development outcome was moderate, Bank performance was moderately satisfactory, and Borrower performance was satisfactory. Some lessons learned included: investing sufficient effort in developing a consensus on the appropriate institutional set-up for a major new government initiative, before agreeing to support a project and launching into detailed preparation, is extremely important. In this case, close dialogue on the institutional framework and mandate of PAF, before the start of preparation, helped to ensure strong client buy-in which has extended through the life of the original project and its scaling up. Staff continuity, both of counterpart and Bank teams, and the engaging of Partner Organizations (Pos) with intimate local knowledge and good track records have contributed to successful project implementation during a period of rapid scale up of the PAF program, even during periods of political transition and associated delays in some senior appointments at Board level. Going forward, it would be useful to review governance arrangements for such appointments as one of the options for further institutional strengthening under PAF II. Measurement and impact assessment of quantitative indicators, using a large statistical sample and rigorous methodology, requires significant time and resources and a process of technical support and capacity building. Challenges of topography, climate and political context in Nepal may compound and should be anticipated as far as possible.

Nepal - Second Health and HIV/AIDS Project

Status of projects in execution (SOPE) - FY09 : South Asia region - Nepal

The Status of Projects in Execution (SOPE) report for FY09 provides information on all International Bank and Rural Development (IBRD)/International Development Association (IDA) projects that were active on June 30, 2009. The report is intended to bridge the gap in information available to the public between the project appraisal document, disclosed after the Bank approves a project, and the implementation completion report, disclosed after the project closes. In addition to the project progress description, the FY09 SOPE report contains project level comparisons of disbursement estimates and actual disbursements, and a table showing the loan/credit/grant amount and disbursements to date for all active projects.

Nepal - Additional Financing for the Rural Access Improvement and Decentralization Project

Environmental and social management framework

The Rural Access Improvement and Decentralization Project is particularly designed for the residents of participating districts to enable them utilize improved rural transport infrastructure, and services, and also benefit from enhanced access to social services, and economic opportunities. Negative impacts include: landslide, trees loss and damage to forest, water logging, river bank cutting, damage to irrigation system, decreased productivity of land, damage to water sources, and damage to water bodies. Mitigation measures include: 1) limit grading of road to 5 percent; 2) use designated disposal site and avoid site casting of spoil; 3) recommended spoil dumping sites should not pose threat to natural/community resources of public interest including irrigation canal, community forestry, drinking water sources etc; 4) disposal area should be leveled and compacted after disposal; 5) incase borrow pit is in agricultural land, the depth shall not exceed 45 cm and may be dug out to a depth of not more than 30 cm after stripping the 15 cm top soil aside; 6) rehabilitation and re-vegetating the quarry site to merge with surrounding landscape: this is done by conserving and reapplying the topsoil for vegetative growth; 7) plantation along bank to reduce slide along bank; 8) avoid disposal of spoil in forested area haphazardly; 9) provide drainage facility that can drain water from an area within 4 hrs after rain stops; and 10) worker camp should be provided with adequate facility of toilet, waster disposal site, and plenty of water needed for personal hygiene.

Environmental and social management framework

The Rural Access Improvement and Decentralization Project for Nepal aims to improve the existing rural roads, construct trail bridges and support for community infrastructure development to enhance the access of rural population to social services and economic opportunities. The project roads affected 955 households with damage to or loss of their residential structures. In addition, 16 individuals have lost their source of income/livelihood and 57 individuals have suffered minor structure losses or damages. Some of the people who lost their structures above 25 per cent have also repaired their structures although there are some expectations. The people who have fully lost their residential structures have already been resettled in nearby localities by the District Development Committee (DDCs). However, some of the women headed households and poor people who were affected by damages above 25 per cent have expectations from the project for compensation. The individuals who have lost tea shops, Ghatta (indigenous water mill) and Ghumti shop (mobile shop) and whose minor assets/structures were damaged or displaced such as tube well, compound wall and cow shed are satisfied with the road and have already re-established and repaired their assets/structures. To provide relief to these people, it is proposed to provide some cash assistance to offset the expenses already incurred by these people to undertake repair or reconstruction of their affected structures.

Procurement plan for goods

Nepal - Second Higher Education Project : procurement plan for goods - FY 2009/2010

Nepal - School Sector Reform Program Project

The objective of the School Sector Reform Program (SSRP) Project for Nepal is to increase access to and improve quality of school education, particularly basic education (Grades 1-8), especially for children from marginalized groups. There are three components to the project. The first component of the project is basic education. The primary objective of this component is to ensure equitable access and quality of basic education for all children in age group 5-12, prepare pre-school-age children through Early Childhood Education and Development (ECED) for basic education and deliver basic numeracy and literacy to youths and adults, especially women and marginalized groups. The second component of the project is secondary education. This component aims to improve equitable access to secondary education by financing: (i) the expansion of physical facilities, including classroom construction and rehabilitation, library and laboratory construction, and the construction of schools for children with special needs (CWSN), and (ii) targeted scholarship schemes for dalits, marginalized groups, disabled, girls and children from poor households. The third component of the project is institutional capacity strengthening. The objective of this component is to improve the capacity of SSRP implementation agencies and its partners to enhance delivery and monitoring of educational services and products. In addition, this component also covers program management costs, excluding government staff salaries, which are incurred as part of program implementation.

Nepal - Additional Financing for Irrigation and Water Resource Management Project : procurement plan for goods

Nepal - Health Sector Program Project : procurement plan

Nepal - Second Poverty Alleviation Fund Project : procurement plan for goods

Nepal - Second Health and HIV/AIDS Project

Nepal - School Sector Reform Project

Remedial action plan for the project affected people

Vulnerable community development framework

The objective of the School Sector Reform Project for Nepal is to increase access to, and completion of school education, particularly for children from marginalized groups, while simultaneously demonstrating basic grade level competencies. Some of the negative impacts and their mitigation measures are as follows: 1) awareness raising of target groups on their rights and eligibility in time, 2) allocation of funds to be matched with needs assessment in sector investment programs (SIPs) based on school mapping and education management information system (EMIS), 3) sustained improvement in the monitoring mechanism and effective enforcement, 4) ensure timely delivery of appropriate language learning facilitation materials to schools, 5) CDC will develop guidelines for curriculum development and the DEO will mobilize local experts, 6) directions on affirmative actions taken to increase teachers from socially disadvantaged groups including females need to be specified, and 7) ensure participation of disadvantaged groups in courses to upgrade existing qualifications.

Nepal - School Sector Reform Project : resettlement plan

The objective of the School Sector Reform Project for Nepal is to increase access to, and completion of school education, particularly for children from marginalized groups, while simultaneously demonstrating basic grade level competencies. Negative measures include: loss of assets, loss of land, and loss of income. Mitigation measures include: i) establish procedures to record, disclose and ensure that all land occupied by schools established during the program period and become eligible for financing was made available to the school on a voluntary basis; and ii) to ensure that the government's acquisition of land for District Education Office (DEO) and other building follows a willing seller and willing buyer approach; and iii) avoid land acquisition and involuntary resettlement.

The project Rural Access Improvement and Decentralization Project - Addl Financing is now in the pipeline.

2009-11-05T05:00:00.000Z

The project Rural Access Improvement and Decentralization Project - Addl Financing is now in the pipeline. To see more information, see the project information in the World Bank project database

Nepal: Tapping the Community for Clean Water

2009-09-29T20:32:54.000Z

Last Updated: Sept 2009

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Too few people in rural Nepal had access to improved water sources or modern sanitation services. Many of the women spent half their day just fetching water for their families, and children skipped school to help. When the government began to build public tap stands, they frequently broke down. Villagers were too often left waiting in vain for a government repairman to show up and fix the problem. A study showed that nearly half of all rural water systems in Nepal required major repairs. Making matters worse, less than half the population had sanitation facilities, undermining the health benefits of clean water if it was available. Although the Government of Nepal had set a target of achieving universal access to basic water and sanitation by 2017, the “top-down,” contractor-led approach to meeting those goals was clearly failing.

The IDA-financed Rural Water Supply and Sanitation Project was launched in 1996 to support Government efforts to promote a more inclusive, community-driven approach that could mobilize unused resources to transform the entire rural water sector. Local communities—particularly the women—were empowered through support from nongovernmental organizations to play a lead role in planning, designing, and implementing small-scale subprojects for water supply, sanitation, health, and hygiene. To ensure that a community had sufficient ownership stake in the results, it was required to contribute at least 20 percent of subproject costs and charge fees for access to services. It also had to manage a fund to pay, among other things, for trained local repairmen to maintain newly installed infrastructure. The project continued till 2003 and was so successful that a second phase was launched in 2004 and is slated for completion in 2010.

The project supported implementation of 1,815 subprojects, which provided improved water supply to more than 1.2 million people all across Nepal. Access to clean water has increased from 77 percent of the rural population to 89 percent. Potable water and better hygiene have helped reduce diarrheal death rates among children by more than 10 percent. Importantly, these projects proved to be sustainable—with a significantly higher operational rating of 89 percent, compared to the national average of 56 percent.

Highlights:
- Progress reached remote areas. The project emphasizes service delivery in less accessible rural areas. More than half the subprojects are located eight kilometers from the nearest all-weather road; nearly a quarter are located 20 kilometers away.

- Community ownership expanded. Communities contributed their own cash, labor and local materials, as well as porterage to carry in outside materials.

- A sustainable administrative structure has taken root. The Rural Water Supply and Sanitation Fund Development Board (the “Fund Board”), which was established to administer IDA assistance, has now been mainstreamed as a government implementing agency.

- Implementation was strengthened through local organizations while making them stronger. The Fund Board worked closely with local groups who broadened their skills and capacity as they planned and ran their own subprojects. Areas of partnership included resource allocation, social inclusion, capacity building, skill development, donor coordination, and monitoring and evaluation.

IDA provided a total of US$70.6 million for the project’s various phases. The first Rural Water Supply and Sanitation Project received a US$18.3 million IDA credit in 1996. Another US$25.5 million was allocated for the Second Rural Water Supply and Sanitation Project in June 2004, and supplemented in May 2008 by additional funding of US$27 million. Recognizing the benefits pioneered by the project’s “Fund Board” approach, the Government of Nepal intends to mainstream inclusive, community-driven development as a central tenet of its strategy for the sector.

IDA support catalyzed additional support from the United Kingdom’s Department for International Development, which financed 146 subprojects benefiting about 87,600 people. Agencies of the United Nations, the Japan International Cooperation Agency, the Asian Development Bank, Finland and India are also active in Nepal’s water supply and sanitation sector. IDA is working with these donors to harmonize efforts.

The second project is financing more than 1,400 subprojects, serving more than 1 million additional people. Moreover, it is sharpening the focus on sanitation so that improvements in water supply translate into better village health. Targets for 2010 include provision of clean water to 69,000 more rural households and sanitation coverage for another 65,000.

Rural Water Supply and Sanitation Project (1996–2003)
Project documents

Second Rural Water Supply and Sanitation Project (2004–10)
Project documents | Additional Financing

Rural Water Supply and Sanitation Fund Board

For more information, please visit the Projects website.

Nepal: Micro-Hydro Lights the Way for Villages

2009-09-29T20:29:03.000Z

Last Updated: Sept 2009

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Nepal has one of the lowest per capita incomes in the world at around US$340, and more than 30 percent of its population lives below the national poverty line. Only about 15 percent of rural households have access to electricity. As a result, most Nepalis satisfy their energy needs by burning wood or other biomass, damaging both the environment and human health. Connecting dispersed villages in difficult terrain to the power grid is prohibitively expensive. It is also beyond the government’s current capacity, since the power grid is already under increasing strain, with power outages of up to 16 hours a day during the dry season.

Rural electrification through micro-hydro is a credible option for Nepal since the country has exploited only 2 percent of its considerable potential. Furthermore, micro-hydro provides round-the-clock electricity generation in close proximity to end-users, with no need for expensive storage or power lines. The IDA-financed Nepal Power Development Project, launched in 2003, featured a Micro-Hydro Village Electrification component. Communities formed Micro-Hydro Functional Groups to execute the work, including responsibility for supervising contractors. The project built upon the national strategy launched through the Rural Energy Development Program in 1996, which successfully increased rural access to renewable energy sources and formed a solid foundation for scaling up impact.

Steady expansion of community-managed micro-hydro systems provided coverage to about 40,000 households in 40 of 51 target districts with potential for this form of power generation. These systems energize sustainable rural development by creating jobs, protecting the environment, and lighting up households for the first time.

Highlights:
- Taking a good idea to scale. Building on a government pilot effort that grew from 5 districts in 1996 to 10 in 1998 and 15 in 2000, this IDA-financed project expanded the momentum to 25 districts in 2003 and 40 districts in 2007. In June 2009, IDA approved additional financing that will double participating rural households by 2012.

- Energizing small business. While electricity was primarily used for lighting, surplus daylight generation was available for milling, husking, grinding, carpentry, spinning, and pump irrigation that paid off in higher local incomes.

- Reducing environmental stress. Micro-hydro replacement of biomass burning has created a trend away from deforestation and toward lower carbon emissions.

- Creating healthier households. Clean electricity allows families to replace wood fires for cooking and lighting in traditional houses without proper ventilation, benefiting women and children in particular.

IDA support for the Micro-Hydro Village Electrification Program came through grants of US$5.5 million in 2003 and US$3.8 million in 2008, covering most of the costs. The remainder comes from cash and labor counterpart provided by participating communities and the Government of Nepal. IDA supports efforts to apply what has been learned thus far to extend micro-hydro applications and improve sustainability.

Multiple initiatives by international donors have created an enabling environment. Since 1996, the United Nations Development Programme has made important contributions to micro-hydro development in Nepal through the Rural Energy Development Program. The Danish International Development Agency is supporting rural electrification through entrepreneurial development of micro-hydro schemes by the Energy Sector Management Assistance Program. Finally, the U.S. Agency for International Development is promoting private investments in hydropower, including micro-hydro; and the Asian Development Bank is expanding rural electrification.

In June 2009, IDA approved an additional US$12 million to extend implementation through 2012, benefiting an additional 36,000 households. IDA will continue to support micro-hydro rural electrification, applying what is learned to refine the effort and improve sustainability.

Nepal Power Development Project (2003–12)
Project documents | Alternative Energy Promotion Center | UNDP REDP

Energy Sector Management Assistance Program (ESMAP)
Project documents | Energy Sector Management Assistance Program | DANIDA | GON/Ministry of Power

Carbon Fund – Biogas Program
Project documents

For more information, please visit the Projects website.

Nepal: Community Management Rekindles Schooling

2009-09-29T04:00:00.000Z

Last Updated: Sept 2009

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Nepal is a small, landlocked but relatively populous country in South Asia, with about 28 million people. Its mountainous topography— includes Mt. Everest and eight of the world’s ten highest peaks—gave rise to a rich diversity of geography, religions and culture. By the early 1950s the country had only 22 high schools, of which 20 were community built, financed and managed. Successive governments continued this model for many years, treating education as a partnership with local communities. In 1972, however, the government took over more than 8,000 schools. Because of the country’s remoteness and diversity—and weak governmental capacity—results were disastrous. Notwithstanding the lofty goals of the “New Education System,” teachers regularly abandoned classrooms, textbooks vanished, and quality plummeted. Finally, in 2001, Parliament passed new laws to transfer schools back to community management. But 30 years of neglect had taken a heavy toll. Literacy rates were 52 percent, compared to 58 percent in South Asia and 61 percent among low-income countries around the world.

The IDA-financed Community School Support Project was launched in 2003 to help reform the defunct public school system. The first step was to encourage communities to take back the management of schools, aided by a one-time government grant. The second was to transform the government’s role from being a provider to a facilitator of education. Both steps were designed to increase the demand for and supply of education in tandem. Efforts to upgrade the quality and relevance of the curriculum were supported by efforts to improve the capacity of government agencies tasked with facilitating the system. Community-based organizations were at the heart of the transition at the local level, while the overall effort was integrated seamlessly into Nepal’s Education for All Project (2004–09) and a sectorwide approach (SWAp) that harmonized donor support for education.

Net primary enrollment rose from 84 percent in 2003 to 92 percent in 2008. Gender parity improved from 83 percent to 98 percent during the same period. More than 8,600 schools transferred to community management. At the current rate, the goal is on track for achieving community management of all public schools by 2015.

Highlights:
- Communities invested in their own schools. Significant local resources were unlocked, with every rupee of government grants leveraging 1.5 rupees in community counterpart.

- Simple, fair financing was established. Introduction of per capita (child) financing made resource allocation more transparent and equitable.

- Decentralization of teacher hiring has spurred accountability. Freezing the number of government-appointed teaching slots and Introduction of salary grants has allowed communities to recruit teachers locally and hold them accountable for classroom performance. The numbers of government and community teachers are now comparable.

- Learning materials expanded. Purchasing textbooks through the market rather than directly from a state-owned publisher has proved to be a more efficient supply mechanism.

In June 2003, IDA provided a US$5 million Learning and Innovation Credit to support the Community School Support Project. The project was then mainstreamed into the Education for All (EFA) program when it was launched in July 2004. IDA contributed a US$50 million credit toward the cost of financing EFA. IDA provided an additional US$60 million grant to Education for All in December 2007.

Nepal's education sector has highly harmonized donor assistance. Nine donors and government have pooled funds to implement a sectorwide approach that covers both recurrent and capital expenditures. Donor harmonization began with the implementation of the five-year Basic and Primary Education Program II in 1999, when the World Bank Group, Denmark, the European Commission (EC), Finland and Norway pooled resources into a “basket” to help the government implement a primary education subsector development program. Building on that, a sectorwide approach was adopted for the follow-on Education for All Program (2004–10). Initial funding came from a few donors, including Denmark, the United Kingdom’s Department for International Development (DfID), Finland, Norway and the World Bank Group. Other donors offered parallel financing: the Japan International Cooperation Agency, UNESCO and the World Food Program. The Asian Development Bank (ADB), the Australian Agency for International Development (AusAid), the EC and the United Nations Children’s Fund (UNICEF) later joined. To implement Education for All, donors committed US$241 million, with IDA providing US$110 million, DfID US$35 million, ADB US$30 million, Denmark US$28 million, the EC US$27 million, Norway US$23 million, Finland US$14 million and UNICEF US$1 million.

Support has been requested for the School Sector Reform Program, which is designed to extend reform coverage throughout the educational system, providing universal schooling through Grade 8 while upgrading quality.

Community School Support Project (2003–08)
Project documents

Education for All Program (2004–10)
Project documents

Ministry of Education | Department of Education

For more information, please visit the Projects website.

The project School Sector Reform Program has changed to Active

2009-09-25T04:00:00.000Z

The project School Sector Reform Program has changed to Active. To see more information, see the project information in the World Bank project database

The project FCPF Nepal Grant - Supervision is now in the pipeline.

2009-09-24T04:00:00.000Z

The project FCPF Nepal Grant - Supervision is now in the pipeline. To see more information, see the project information in the World Bank project database

World Bank Supports School Sector Reforms in Nepal

2009-09-22T22:16:42.000Z

Contacts:

In Kathmandu: Rajib Upadhya (9771) 4226792/3

rupadhya@worldbank.org

In Washington: Erik Nora (202) 4584735

enora@worldbank.org

Washington DC, September 22, 2009 – The World Bank will contribute a further US$130 million towards meeting Nepal’s Education for All goals. The School Sector Reform Program approved today is the main vehicle for the implementation of the Government of Nepal’s 15-year National Program of Action. World Bank funding will meet a slice of the program’s expenditures over the next five years – both recurrent and development - covering all levels of school education.

The program focuses on the three pillars of Access, Inclusion and Quality. It is supported by eight other development partners who will also pool their resources, together with the World Bank, and with Government resources. In addition, five “non-pooling partners” will support the program directly. The total cost of the five-year program (2009/10-2013/14) is estimated to be about US$2.6 billion, of which pooled development partners have committed approximately US$500 million.

As a sector wide approach, the program will finance salaries and benefits for nearly 120,000 government school teachers. It will also finance salaries of around 100,000 community recruited teachers through salary grants. Financing for all additional teachers to be recruited during the program period will be made through a per capita child financing formula that takes into account the number of students enrolled in a particular school. The program plans to address the problem of uneven deployment of teachers by providing incentives for teachers to transfer from schools that have too many teachers to those with too few.

The program will also finance a range of activities intended to ensure equitable access and quality basic education for all children in the 5-12 age group, prepare pre- school age children for basic education through Early Childhood Education Development and deliver basic numeracy and literacy to youth and adults, especially women.

“Nepal should be proud of its accomplishments in the education sector,” said Susan Goldmark, World Bank Country Director for Nepal. “In 1951 there were only 10,000 children in primary and secondary schools. Now there are more than 7 million students in more than 30,000 schools throughout the country. Still, much more remains to be done so that schools provide each child with the skills needed to find good jobs and succeed. That is what this partnership with the Ministry of Education and development partners strives to accomplish.”

Because earlier programs were so successful, the demand for quality schooling beyond primary level has soared. To meet this demand and to provide children with skills to prepare them for a life of work, Nepal is now combining the primary and lower secondary cycles to form a basic education cycle of grades 1-8 and a secondary cycle of grades 9-12.

In order to improve the flow of students through the new basic schooling cycle – especially those hardest to reach – the program will finance outreach programs and targeted scholarships, and multi-lingual teachers and learning materials. It will also finance the construction and rehabilitation of classrooms and other school facilities as well as block grants for textbooks and teacher salaries. With these activities, the program aims to increase the Net Enrollment Ratio at primary level to 98 percent from the current 91.8 percent, and at the basic level to 84 percent from the current 75 percent. To improve learning achievement, the program will update textbooks and teacher guides, adopt competency-based systems, and strengthen student assessments, evaluation, and reporting.

“In spite of the difficult political environment Nepal has been able to undertake a series of ground breaking reforms in school education, and the program will take these reforms even further,” said Rajendra Dhoj Joshi, Senior Education Specialist and Co-Task Team Leader at the World Bank. “Nepal has firmly established itself as the world leader in community management of schools. Community management of schools builds upon Nepal’s tradition of community initiative in delivery of education. The credit for significant achievements made in the education sector largely goes to communities. SSRP will accord high priority to enhancing community capacity.”

Given the evidence that children with Early Childhood Education Development (ECED) experience have lower dropout rates, higher completion rates, and are better prepared cognitively, emotionally, and socially when they go to primary school, the program will support the running of some 25,000 existing ECED centers and add about 6,000 new ones.

At the new secondary cycle (grades 9-12), the program will support access through expansion of physical facilities, including classroom construction and rehabilitation, libraries and laboratories, and schools for children with special needs. The program will address equity and inclusion by maintaining scholarship schemes for Dalits, marginalized groups, the disabled, girls, and children from poor households. It will also finance alternative provisions such as open learning centers, non-formal education for adult women, and grant support to traditional schools. In the medium to long run, the program intends to make secondary education free for all children.

“Nepal has made considerable gains in terms of education policies, particularly with the landmark 7^th Amendment of the Education Act which returned schools to community ownership and has helped strengthen accountability at the school level,” said Venkatesh Sundararaman, Senior Economist and Co-Task Team Leader at the World Bank. “Other key policies include channeling of funds using per child financing, strengthening of teacher licensing systems, and expanding the role of the private sector in the production and distribution of textbooks. The School Sector Reform Program will strengthen and consolidate these policies which is all the more important in the current context of weakened governance structures in the country.”

However, more than 30 percent of School Leaving Certificate examinees fail to graduate from grade 10, and the average pass rate for students from community schools is around 50 percent. Pass rates at higher secondary level are much worse and are in the range of 25 percent. Given these facts, the program will also aim to improve the quality and relevance of secondary education through development of standards settings for curricula, education materials, teachers, school environment and examination systems. This will also involve gradual integration of grades 9-10 with grades 11-12 to result in full-fledged secondary cycle of grades 9-12. In terms of direct support, the program will finance performance-based grants, textbooks and other non-salary grants to secondary schools.

The World Bank has been a partner to the development of Nepal’s education sector for over 30 years through a series of national programs. These include the Basic and Primary Education Projects I and II, the Community School Support Program, the Higher Education Projects I and II and the Education for All Program.

The project is a blend of credit (US$71.50 million) and grant (US$58.50 million) from the International Development Association, the World Bank’s concessionary lending arm. The credit has 40 years to maturity with a 10-year grace period.

For more project information, please visit http://www.worldbank.org.np/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=223555&menuPK=286969&Projectid=P113441

For more information on the Bank’s work in Nepal: http://www.worldbank.org.np

Nepal: School Sector Reform Program (SSRP) Project

2009-09-22T22:04:12.000Z

WASHINGTON, September 22, 2009 - The World Bank’s Board of Executive Directors today approved the following project:

IDA Credit: US$71.50 million equivalent

Terms: Maturity = 40 years; Grace Period = 10 years

Project ID: P113441

Project Description: The School Sector Reform Program (SSRP) Project for Nepal aims to increase access to and improve quality of school education, particularly basic education (Grades 1-8), especially for children from marginalized groups. The first component of the project is basic education. The primary objective of this component is to ensure equitable access and quality of basic education for all children in age group 5-12, prepare pre-school-age children through Early Childhood Education and Development (ECED) for basic education and deliver basic numeracy and literacy to youths and adults, especially women and marginalized groups. The second component of the project is secondary education. This component aims to improve equitable access to secondary education by financing: (i) the expansion of physical facilities, including classroom construction and rehabilitation, library and laboratory construction, and the construction of schools for children with special needs (CWSN), and (ii) targeted scholarship schemes for dalits, marginalized groups, disabled, girls and children from poor households.

Media Contact

Erik Nora

(202) 458-4735

enora@worldbank.org

For more project information, please visit: http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P113441

For more information, please visit the Projects website.

The project Nepal Second Health and HIV/AIDS Project is now in the pipeline.

2009-09-17T04:00:00.000Z

The project Nepal Second Health and HIV/AIDS Project is now in the pipeline. To see more information, see the project information in the World Bank project database

‘CLIMATE SMART’ WORLD WITHIN REACH, SAYS WORLD BANK

2009-09-15T21:45:00.000Z

Contact
Erik Nora
(202) 458-4735
enora@worldbank.org

South Asian Countries Face Daunting Climate-Related Development Challenges

WASHINGTON, September 15, 2009 – If developed countries act now, a ‘climate-smart’ world is feasible, and the costs for getting there will be high but still manageable, says a new World Bank report released today. High-income countries also need to act quickly to reduce their carbon footprints and boost development of alternative energy sources to help tackle the problem of climate change.

World Development Report 2010: Development and Climate Change, released in advance of the December meetings on climate change in Copenhagen, says that advanced countries, which produced most of the greenhouse gas emissions of the past, must act to shape our climate future. Developing countries can shift to lower-carbon paths while promoting development and reducing poverty, but this depends on financial and technical assistance from high-income countries. A key way to do this is by ramping up funding for mitigation in developing countries, where most future growth in emissions will occur.

“The countries of the world must act now, act together and act differently on climate change,” said World Bank President Robert B. Zoellick. "Developing countries are disproportionately affected by climate change – a crisis that is not of their making and for which they are the least prepared. For that reason, an equitable deal in Copenhagen is vitally important.”

Countries need to act now because today’s decisions determine both the climate of tomorrow and the choices that shape the future. Countries need to act together because no one nation can take on the interconnected challenges posed by climate change, and global cooperation is needed to improve energy efficiencies and develop new technologies. Countries need to act differently, because we cannot plan for the future based on the climate of the past.

Developing countries will bear most of the costs of the damage from climate change. Many people in developing countries live in physically exposed locations and economically precarious conditions, and their financial and institutional capacity to adapt is limited, says the report. Already, policymakers in some developing countries note that an increasing amount of their development budget is being diverted to cope with weather-related emergencies.

Geography coupled with high levels of poverty and population density make countries in the South Asia region particularly vulnerable to climate change. The report says that that global warming of 2 degrees Celsius above pre-industrial temperatures — the minimum the world is likely to experience — could result in permanent reductions in GDP of 4 to 5 percent for South Asia.

The region’s water resources are likely to be affected by climate change, through its effect on the monsoon, which provides 70 percent of annual precipitation in a four-month period, and on the melting of Himalayan glaciers, particularly in the western end of the range.

Rising sea levels are also of important concern in South Asia, which has long and densely populated coastlines, agricultural plains threatened by saltwater intrusion, and many low-lying islands. In more severe climate-change scenarios, rising seas would submerge much of the Maldives and inundate 18 percent of Bangladesh’s land.

Agricultural productivity is one of many factors driving the greater vulnerability of developing countries. Extrapolating from past year- to- year variations in climate and agricultural outcomes, yields of major crops in India are projected to decline by 4.5 to 9 percent within the next three decades, even allowing for short- term adaptations. The report says the implications of such climate change for poverty — and GDP — could be enormous given projected population growth and high dependence of livelihoods on rain-fed agriculture in the South Asia region.

At the same time, the report notes that 1.6 billion people in the developing world lack access to electricity. In India alone, more than 400 million people do not have electricity. Those developing countries—whose average per capita emissions are a fraction of those of high-income countries—need massive expansions in energy, transport, urban systems, and agricultural production. Increasing access to energy and other services using high-carbon technologies will produce more greenhouse gases, hence more climate change.

India faces tremendous challenges in substantially altering its emissions path given its relatively efficient economy and limited endowment of clean energy resources and for carbon storage sites, the report says. India relies heavily on coal, which accounts for 53 percent of its commercial energy demand. Large potential exists, however, for improving energy efficiency and reducing transmission and distribution losses.

The report finds, however, that existing low-carbon technologies and best practices could reduce energy consumption significantly, saving money. For example, the report notes that it is possible to cut energy consumption in industry and the power sector by 20–30 percent, helping reduce carbon footprints without sacrificing growth. In addition, many changes required to reduce emissions of greenhouse gases also deliver significant benefits in environmental sustainability, public health, energy security, and financial savings. Avoided deforestation, for instance, preserves watersheds and protects biodiversity, while forests can effectively serve as a carbon sink.

With costs of renewable energy declining over the past two decades, wind, geothermal, and hydro power are already or nearly cost- competitive with fossil fuels, the report says. Thanks to innovation and technology diffusion, wind is now powering the first stages of what could become an energy revolution. And although most installed wind capacity is in Europe and the United States, the pattern is shifting. In 2008, India and China each installed more wind capacity than any other country except the United States and together they host nearly 20 percent of the world’s capacity.

Solving the climate problem requires a transformation of the world’s energy systems in the coming decades. Research and Development investments on the order of US$100 - $700 billion annually will be needed—a major increase from the modest $13 billion a year of public funds and $40 billion to $60 billion a year of private funds currently invested.

Developing countries, particularly the poorest and most exposed, will need assistance in adapting to the changing climate. Bangladesh, for example, is among the world’s most exposed countries to rising sea levels. Bangladesh is already doing much to reduce the vulnerability of its population. It has invested in a highly effective community-based early warning system for cyclones and a flood forecasting and a response program drawing on local and international expertise. But the scope of possible adaptation is limited by resources — its annual per capita income is $450.

Climate finance must be greatly expanded, since current funding levels fall far short of foreseeable needs. Climate Investment Funds (CIFs), managed by the World Bank and implemented jointly with regional developing banks, offer one opportunity for leveraging support from advanced countries, since these funds can buy-down the costs of low-carbon technologies in developing countries.

“Developing countries face 75-80 percent of the potential damage from climate change. They urgently need help to prepare for drought, floods, and rising sea levels. They also need to intensify agricultural productivity, contain malnutrition and disease, and build climate-resilient infrastructure,” said Justin Lin, World Bank Chief Economist and Senior Vice-President, Development Economics.

The current financial crisis cannot be an excuse to put climate on the back burner, the report warns. While financial crises may cause serious hardship and reduce growth over the short- to medium-term, they rarely last more than a few years. The threat of a warming climate is far more severe and long-lasting.

The earth’s warming climate is making the challenge of development more complicated, even as one in four people still live on less than $1.25 a day, and over a billion people do not have sufficient food to meet their daily basic nutritional needs.

“Grappling with climate shocks that are already hampering development will not be easy. But promising new energy technologies can vastly reduce future greenhouse gas emissions and prevent catastrophic climate change. We also need to manage our farms, forests, and water resources to ensure a sustainable future,” said Rosina Bierbaum, WDR co-director and Dean of the University of Michigan’s School of Natural Resources and Environment.

“The good news is that a climate-smart world is within reach if we work together now to overcome inertia, keep costs down, and modify our energy, food, and risk management systems to ensure a safer future for everybody,” said Marianne Fay, WDR co-director and Chief Economist for Sustainable Development at the World Bank.

“There are real opportunities to shape our climate future for an inclusive and sustainable globalization, but we need a new momentum for concerted action on climate issues before it is too late,” said Robert B. Zoellick, World Bank Group President.

The World Bank Group’s "Strategic Framework for Development and Climate Change" puts emphasis on including mitigation and adaptation initiatives in its lending, while recognizing that developing countries need to encourage economic growth and reduce poverty.

The number of World Bank-financed studies that help client countries plan and implement low-carbon growth strategies are also growing, and the Bank Group’s energy financing is increasingly turning towards renewable energies and energy efficiency. Over the past three years, approximately two-thirds of the Bank Group’s total energy financing was in the area of non-fossil fuels whereas around one-third was for fossil fuels, of which half was for natural gas.

Access the report: http://www.worldbank.org/wdr2010
The World Bank’s climate change blog is at: http://blogs.worldbank.org/climatechange

The project Nepal, HIV / AIDS Control Program has changed to Dropped

2009-09-01T04:00:00.000Z

The project Nepal, HIV / AIDS Control Program has changed to Dropped. To see more information, see the project information in the World Bank project database

The project NP: Telecommunications Sector Reform Project has changed to Closed

2009-09-01T04:00:00.000Z

The project NP: Telecommunications Sector Reform Project has changed to Closed. To see more information, see the project information in the World Bank project database

The Telecommunications Sector Reform project aims at supporting Nepal's ongoing reform process, by assisting in building the Government's capacity to set policies, and establish the regulatory framework, as well as enabling private sector participation in the telecommunication infrastructure, and services in rural areas. Through its components, the project will: 1) finance local, and international consulting services, studies, training, and equipment, to strengthen the Ministry of Information and Communications'(MOIC) policy, and radio spectrum management functions, by building capacity, and services, through technical cooperation, and information sharing. This component will also support, and strengthen the Project Coordination Unit (PCU) to successfully implement, and coordinate the project; 2) strengthen the Nepal Telecommunications Authority's (NTA) capacity to respond to regulatory issues in a competitive sector, by financing consulting services, and providing resources for institutional capacity building, through training provision. In addition, this component will also support the award of a rural license to a private rural telecommunications service operator, financing an upfront capital subsidy, to service the Eastern Development Region; and, 3) assist NTA in policy implementation for expanding access to information, and telecommunications services, by financing public information and communications technology access centers, in addition to supporting the project management unit to enable successful implementation of NTA's functions.

World Bank Steps Up Assistance for Energy and Agriculture

2009-08-21T08:47:03.000Z

For Nepali

Contacts:
In Kathmandu: Rajib Upadhya (9771) 4226792/3
rupadhya@worldbank.org
In Washington: Erik Nora (202) 4584735
enora@worldbank.org

KATHMANDU, August 21, 2009 --- The Government of Nepal and the World Bank signed two agreements here today totaling US$ 109.2 million in assistance for Nepal’s development priorities in the energy and agriculture sectors.

The agreements were signed and exchanged between Finance Secretary Rameshore Khanal and World Bank Country Director for Nepal Susan Goldmark.

Under the first agreement the World Bank will provide US$ 89.2 million in additional financing for the Power Development Project to help the Government of Nepal implement its Energy Crisis Management Action Plan.

Nepal is experiencing an energy crisis of unprecedented severity, caused by years of under-investment and sharp growth in electricity demand. This long-term problem was exacerbated in the last year by drought in part of the country and the loss, through flooding, of a transmission line that was used to import electricity from India.

As a result, by January 2009, grid-based consumers were being supplied with electricity for only 8 hours per day. Moreover, the majority of Nepalis live in rural areas and have no access to reliable sources of electricity. The chronic shortage of electricity has had a highly negative impact on all aspects of the economy and has imposed a heavy burden on Nepalis. While recent rains have brought some relief to the power supply crisis, the shortage of storage capacity in the system means that the power supply deficit will continue to be severe for winters to come.

The Government of Nepal has declared a “national energy crisis” and its immediate priorities are to identify and implement quick investments to prevent a repeat in coming winters of crises of similar magnitude, while implementing medium-to-long term development plans on a parallel basis. The Government also intends to ensure the continued expansion of its successful micro-hydro rural electrification program.

The additional financing will include investments in rehabilitation of the Kali Gandaki ‘A’ Hydro Electric Plant (HEP), the largest plant in Nepal’s power system, as well as of two existing thermal plants in Duhabi and Hetauda. It will also finance construction of the 220 kV Bharatpur-Bardaghat transmission line, strengthen the old and severely overloaded distribution network in Kathmandu Valley, and expand the Government’s off-grid micro-hydro rural electrification program.

These investments are intended to strengthen Nepal’s power system by increasing energy production through reduction of down-time at the Kali Gandaki ‘A’ HEP and making available an estimated 22 MW of capacity at the existing thermal plants. The additional financing will also improve the reliability of the Kathmandu Valley distribution network by adding 500 MW transmission capacity to relay power from existing and expected future projects. An additional 4.25 MW is expected to be installed through the micro-hydro program for the benefit of some 36,000 rural households.

Nepal’s total grid-connected generation capacity amounts to a meager 683 MW, and the actual available capacity at any point in time is generally considerably lower. “Load-shedding”, or rotating outages, has long been a facet of the hydro-dependent power system in Nepal, where protracted conflict, and weak institutions and finances have hampered the addition of power generation capacity. Electricity supply is worse in the dry season (October to May) when river flows are lower.

“While it is clear that chronic power shortages will continue to be a defining feature of life in Nepal for several years to come, the Bank is stepping up its assistance to help Nepal minimize economic impacts and hardships in the short term as well as to implement medium to long term development plans”, said Susan Goldmark, World Bank Country Director for Nepal. “In the absence of a concerted scale-up of both grid-supplied and off-grid power, Nepal will continue to be burdened by a heavy reliance on costly, and often polluting, alternative means for meeting the demand for electricity”.

Under the second agreement the World Bank will provide US$ 20 million for the implementation of the Project for Agriculture Commercialization and Trade (PACT). The project aims to improve the competitiveness of smallholder farmers and agribusinesses in 25 districts .

Agriculture contributes 38 percent of Nepal’s gross domestic product (GDP). About 66 percent of the population live in rural areas and depend on agriculture for their livelihood.
However, the Nepalese agricultural sector is predominantly subsistence – barely enough for home or local consumption – and suffers from low productivity. Trade often occurs in local markets and is subject to gluts and price crashes. Storage and transport facilities are poorly developed; and quality and value enhancement through grading and processing is rare. In the absence of adequate marketing channels and opportunities, the incentive and financial capacity to invest in improved farm and water management or modern inputs is limited. Furthermore, the principal challenges that agriculture faces in this era of globalization are market orientation, trade promotion, and increased investment in the agricultural sector to secure broad-based growth in rural incomes.

PACT is designed to help farmer groups and cooperatives engage in profitable market-oriented production and improve access to markets through technology and information services, critical public infrastructure and linkages to agribusiness. It intends to create and strengthen industry-wide partnerships along the value chain, forging linkages between producers, traders, processors, and other stakeholders.

The support provided by PACT will complement the World Bank’s overall support to the agriculture sector, which includes assistance to improve access to irrigation and to agriculture inputs such as improved seeds. The project will also help reduce existing obstacles to agriculture and food trade, increasing the ability of farmers and agribusiness to respond to sanitary and phyto-sanitary and food-quality standards to meet domestic and international market requirements.

“To harness opportunities in the global market, farmers and other stakeholders must produce and deliver the right commodities at the right time, while maintaining consistently high quality standards,” said Ms. Goldmark. “To satisfy the requirements of trade partners and to ensure the competitiveness of Nepali products, food safety and animal health regulations and standards must be actively promoted.”

The signing of these two new agreements brings the total number of projects currently financed by the World Bank in Nepal to 16, representing a total value of US$ 916 million.

The World Bank approved a new assistance strategy for Nepal last June which is organized around three themes. The first theme addresses the cluster of challenges facing the state in adapting and constructing the systems, institutions, and capacities needed for the “new” Nepal. The second focuses on overcoming constraints faced by the productive sector, especially in terms of productivity, connectivity and sustainability. The third theme concentrates on expanding and honing programs and activities that can increase opportunities and well-being, especially for the poor and excluded. Social inclusion runs across all of these themes as one of the foundations for the new Nepal. Within each of these themes, the strategy identifies specific areas where the Bank Group can make a difference in collaboration with the government and people of Nepal.

For more information on the Bank’s work in Nepal, please visit http://www.worldbank.org.np

World Bank Grant Competition Awards $840,000 to Grassroots Initiatives to Address Undernutrition in South Asia

2009-08-05T13:20:21.000Z

Dhaka, August 5, 2009 ─ Twenty-one civil society organizations from across South Asia won grants today from a $840,000 award pool funded by the South Asia Region Development Marketplace (DM). The winners received up to $40,000 each to implement innovative ideas on how to improve nutrition in their respective countries. Four proposals from Nepal were amongst the winners.

“Undernutrition is one of the most challenging issues facing South Asia,” said Isabel Guerrero, World Bank’s Vice President, South Asia Region, at the opening ceremony today in Dhaka. “Poor nutrition robs a child of a chance to succeed and live a healthy, productive life. And yet, an investment in nutrition is one of the social policy interventions that has the highest impact for each dollar spent, in improving this child’s future.”

Amongst the innovative ideas recognized today was a proposal from Vijaya Development Resource Center to improve young children feeding practices through micronutrient supplements. Equal Access Nepal was recognized for its proposal to enhance birth weight and survival of infants, and MaxPro Pvt. Ltd. won for its idea to develop a community based distribution network for iodized salt.

Another winning innovation from Nepal was from the Helen Keller International Inc., to reduce malnutrition in children less than two years old.

“We believe that by integrating health and agriculture we can lead to better nutrition outcomes. This event has given us a platform to learn about how the processes of behavior change happen when you combine household food security and essential nutrition action,” said Pooja Pandey Rana from the Helen Keller International Inc.

With the funds awarded today, the winners will have up to 18 months to carry out and implement their innovative projects.

India was the most represented country among winners, with 9 out of the 21 winning proposals. Bangladesh and Nepal tied in second place with four winners each. Pakistan followed with two winners. Sri Lanka and Afghanistan had one winning proposal each.

Titled “Family and Community Approaches to Improve Infant and Young Child Nutrition.” the competition was designed to identify some of the most innovative ideas to improve nutrition, focusing especially on children under two years of age and pregnant women. It drew nearly 1000 applications from Afghanistan, Bangladesh, Maldives, India, Nepal, Pakistan, and Sri Lanka, and through a vigorous assessment process by international development experts, the applicants were narrowed down to 60 finalists, who showcased their ideas today in Dhaka.

“All of the finalists gathered here today are winners,” said Ms. Guerrero, during her opening remarks, emphasizing that the greatest outcome of the Development Marketplace is precisely the learning that comes from the exchange of ideas and experiences between all the participants. Dr. A F M Ruhal Haque, Bangladesh’s Minister for Health and Family Welfare inaugurated the opening ceremony extending a warm welcome to all participants and praising the initiative. Mr. Abul Maal Muhit, Bangladesh’s Miniser for Finance handed over the certificates to winners during the closing ceremony.

A Bangladeshi proposal to promote nutritional status of malnourished children of commercial sex workers and families of people living with HIV/AIDS won the People’s Choice Award, following popular voting by visitors who attended the Development Marketplace today in Dhaka.

The South Asia Regional Development Marketplace was sponsored by UNICEF, World Food Programme, PepsiCo, the Micronutrient Initiative (MI), GTZ (Germany), and the Global Alliance for Improved Nutrition (GAIN).

For more information about the South Asia development Marketplace, visit: www.worldbank.org/nutritiondm2009

For more information about the World Bank’s work in South Asia, please visit http://www.worldbank.org/sar

# # #

World Bank Grant Competition Supports Innovative Approaches to Address Undernutrition in South Asia

2009-08-02T09:10:53.000Z

Contacts:

In Dhaka: Mehrin A. Mahbub (880-2) 8159001-28 Ext. 4251

mmahbub@worldbank.org

In Washington: Benjamin Crow (202) 473 5105

bcrow@worldbank.org

Dhaka, August 2, 2009 ─ Civil society organizations from across South Asia will gather in Dhaka this week to take part in a grant competition – the Development Marketplace (DM) – where they will display some of the best and most innovative ideas on how to improve nutrition in the region. The competition is hosted by the World Bank and is designed to showcase and fund such innovative approaches, focusing especially on children under two years of age and pregnant women.

Titled “Family and Community Approaches to Improve Infant and Young Child Nutrition,” the DM event will bring together 60 civil society organizations from Afghanistan, Bangladesh, India, Nepal, Pakistan, and Sri Lanka who will compete for 20 grants of up to US$40,000 each to implement their ideas.

“The scale of the undernutrition problem in South Asia is alarming,” said Isabel M. Guerrero, World Bank Vice President for the South Asia region. “Around 45 percent of South Asian children are undernourished, which is 60 percent higher than the undernutrition rate of Sub-Saharan Africa. We have all seen the devastating effect of poor nutrition. It robs a child of a chance to succeed and live a healthy, productive life and contribute to national development. We hope this Development Marketplace initiative will raise awareness of the problem and arm people with knowledge and information that can help transform nutrition programs.”

This Development Marketplace was launched in February 2009 by reaching out to communities across South Asia seeking proposals for local, small-scale projects with the potential to be scaled up and replicated. In just over three months, almost 1,000 civil society organizations from across the region submitted proposals.

“This DM event will showcase innovative approaches that can be incorporated into local and national nutrition strategies and programming,” said Andrea Vermehren, World Bank Senior Social Protection Specialist. “Importantly, it will highlight the need to empower women within their families and communities to address the socio-cultural determinants of undernutrition.”

Many prominent organizations have partnered with the World Bank to support the South Asia Regional Development Marketplace, including UNICEF, World Food Programme, Bill and Melinda Gates Foundation Gates Foundation, PepsiCo, the Micronutrient Initiative (MI), GTZ (Germany), and the Global Alliance for Improved Nutrition (GAIN).

The Development Marketplace is a competitive grant program that uses a participatory process to identify and support grassroots initiatives with innovative approaches to solving challenging development issues. Since 1998, the DM has awarded more than $54 million in grants.

For more information about the South Asia Development Marketplace, please visit: www.worldbank.org/nutritiondm2009

For more information about the World Bank’s work in South Asia, please visit http://www.worldbank.org/sar

Nepal Biogas Project: First Payment Made for Increased Support to Nepal Biogas Program

2009-07-30T07:27:49.000Z

Contacts:
In Kathmandu: Rajib Upadhya (9771) 4226792/3
rupadhya@worldbank.org
In Washington: Cathy Russell (202) 4588124
crussell@worldbank.org

Kathmandu, Nepal – July 30, 2009 – The World Bank implemented Global Partnership on Output Based Aid (GPOBA) project in Nepal has made the first payment of $592,200 to the Alternative Energy Promotion Centre (AEPC) for successful 2008 delivery of verified new biogas plant installations in Nepal. This project provides increased access to clean and affordable energy for rural Nepalese households, and successfully installed 4,772 new biogas plants eligible for payments under the GPOBA grant.

The World Bank-administered GPOBA program signed a grant agreement with the Government of Nepal in October 2007 providing a total of US$5 million in support, which will provide payment for the verified installation of up to 37,000 new biogas plants in 48 remote districts of Nepal. The program is being managed by the Alternative Energy Promotion Center (AEPC) with implementation support provided by the Biogas Sector Partnership Program-Nepal (BSP-N). It uses an innovative “output-based aid” approach in which subsidy payments are made based on verified results.

“The project builds on Nepal’s impressive track record with mainstreaming biogas plants as a practical and affordable solution to energy problems in rural Nepal,” said Susan Goldmark, World Bank Country Director for Nepal. “It converts animal and human waste into a clean source of cooking fuel -- thereby removing the need to use wood, dried dung and other fossil fuel sources of energy. The biogas byproduct can also be used as a natural fertilizer to increase agricultural yields. This is a small but important step to improving the lives of rural Nepalis.”

The GPOBA project aims to support replacement of traditional energy sources used by the rural population, such as firewood and kerosene, with modern biogas plants. Biogas plants use anaerobic decomposition of organic material (mostly animal manure) to produce a flammable gas called biogas, which can be used to meet rural cooking and lighting needs. GPOBA’s grant payment is made to AEPC for successful commissioning of new biogas plants ranging in capacity from 4m3 to 8m3. Even the smallest plants with a 4m3 capacity produce enough gas to run a cooking stove for nearly 2.5 hours daily.

Switching to biogas reduces carbon emissions and decreases the frequency of respiratory infections that result from burning solid fuels in poorly ventilated households. Families will also save approximately three hours of labor per day from the conveniences of gas in addition to financial savings from not purchasing other fuels and fertilizers. Women and girls, who are traditionally responsible for collecting firewood and cooking and cleaning, will be among this project’s primary beneficiaries. Furthermore, access to biogas will enable families to use gas lanterns after sunset providing light for children’s studies or other household activities.

“The GPOBA fund received will help AEPC to install additional biogas plants in the future, in more remote and needy areas in Nepal,” said Dr. Narayan Prasad Chaulagain, Executive Director of AEPC.

Mr. Saroj Rai, Executive Director of BSP-Nepal added, "The GPOBA funding for BSP is an achievement that has further motivated us to promote biogas with increasing focus on market development in remote areas."

The GPOBA funds will complement the Fourth Phase of Nepal’s Biogas Support Program (BSP-IV), which aims to support biogas plant installation for over 135,000 new rural households through 2011. The Biogas Support Program was started in 1992 by the Netherlands Development Organization (SNV) together with the Government of Nepal to promote environmentally friendly and affordable energy to remote rural areas, and has helped to install over 200,000 biogas plants to-date in rural Nepal.

The full Nepal Biogas Program is co-funded by the Government of Nepal, SNV, and the German Development Bank (KfW), and is also receiving carbon finance revenue from the World Bank Community Development Carbon Fund (CDCF).

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About GPOBA

The Global Partnership on Output-Based Aid (GPOBA) is a global partnership administered by the World Bank. GPOBA was established in 2003, initially as a multi-donor trust fund, to develop output-based aid (OBA) approaches across a variety of sectors including infrastructure, health, and education.

GPOBA’s current donors are the UK’s Department for International Development (DFID), the International Finance Corporation (IFC), which is a member of the World Bank Group, the Directorate-General for International Cooperation of the Dutch Ministry of Foreign Affairs (DGIS), the Australian Agency for International Development (AusAID), and the Swedish International Development Cooperation Agency (Sida).

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For more information on GPOBA, please visit: www.gpoba.org
For more information on the World Bank in Nepal please visit: http://www.worldbank.org/np

World Bank Reaffirms Support to Nepal’s Peace Process

2009-07-15T11:17:51.000Z

For Nepali

Contacts:
In Kathmandu: Rajib Upadhya (9771) 4226792/3
rupadhya@worldbank.org
In Washington: Erik Nora (202) 4584735
enora@worldbank.org

KATHMANDU, JULY 15, 2009 – A team from the World Bank concluded a periodic review today of the Emergency Peace Support Project. During the visit, the team held discussions with senior Government of Nepal officials, high ranking leaders of the UCPN-Maoist, development partners supporting the peace process, and representatives of Nepali civil society.

At these meetings the World Bank reiterated its commitment to continue supporting Nepal’s peace process through the Emergency Peace Support Project. The Bank will also continue to support peace-building through the development programs it finances in Nepal.

“Implementing peace accords is not always easy but the World Bank stands by its commitment to supporting Nepal in the implementation of its Comprehensive Peace Agreement,” said Susan Goldmark, the World Bank’s Country Director for Nepal. “As part of our new assistance strategy, we will support projects that aim to contribute to the maintenance of peace and minimize the potential for future conflict. This reflects the centrality of peace to development in Nepal and the Bank’s commitment to it.”

The visiting team welcomed progress in a number of areas, including initiation of payments to families of those killed as a result of the conflict, improved payment procedures for allowances to Maoists in cantonments, and the recent clear commitment to the discharge of minors and other ineligible former combatants from cantonments. The team also noted the funding gaps for implementing the peace accords and the need for ongoing support from the international community in addressing the needs of other conflict-affected groups, as well as reconstruction priorities, as reflected in the Nepal Peace Trust Fund needs assessment.

The Bank team noted the priority given by the government to fund the payment of allowances to the Maoists in cantonments and emphasized the importance of continuing these payments. Together with the Government of Nepal and other stakeholders, the Bank is exploring how the reallocation of funds from the Emergency Peace Support Project can most effectively complement these ongoing efforts.

For more information on the Bank’s work in Nepal, please visit http://www.worldbank.org.np

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The project Nepal - School Sector Reform is now in the pipeline.

2009-07-07T04:00:00.000Z

The project Nepal - School Sector Reform is now in the pipeline. To see more information, see the project information in the World Bank project database

World Bank Group Directs US$6.6 billion to Help South Asia Overcome Poverty, Boost Growth amid Global Crisis

2009-07-02T21:12:14.000Z

Contact:

World Bank: Dale Lautenbach

(202) 473-3405

WASHINGTON, DC, July 2, 2009 – The World Bank Group committed US$6.6 billion in fiscal year 2009 (July 1, 2008 – June 30, 2009) to South Asia, focusing especially on reviving growth and protecting the poor amid the global economic crisis. This is an increase of US$1.1 billion over the previous year.

The Bank Group invested in 89 projects to promote economic growth, fight poverty, and assist private businesses, including nearly US$2 billion in infrastructure financing, a critical sector to provide the foundation for rapid recovery from the crisis and job creation.

Much of the Bank’s support focused on helping South Asian countries cope with the impact of the global economic crisis. For example, the Bank provided US$500 million to support the Government of Pakistan’s program to regain and maintain economic stability and steer the economy back onto a higher growth path. In India, a US$400 million loan was extended to improve access to finance for India’s Small and Medium Enterprises (SMEs) which face serious challenges in accessing adequate and timely financing on competitive terms.

“South Asian countries have been hard hit by a series of crises—food, then the fuel crisis, followed by the global financial crisis,” said Isabel M. Guerrero, World Bank Vice President for South Asia. “In response to the impact of these successive crises much of our work has been refocused to provide rapid financial assistance and policy advice to reverse the slowdown in growth and investment and to protect the poor and most vulnerable people.”

Globally, the World Bank Group committed US$58.8 billion in fiscal year 2009, up 54 percent from fiscal year 2008. Commitments from the International Bank for Reconstruction and Development (IBRD)—which provides financing, risk management products, and other financial services to countries—rose sharply in FY09 to $32.9 billion for 126 operations, from US$13.5 billion the previous year. Commitments from the International Development Association (IDA), which provides interest-free loans and grants to the world’s 79 poorest countries, totaled a record US$14 billion in FY09, up 25 percent from US$11.2 billion in FY08.

“Requests for assistance from the World Bank Group rose sharply this year, and we expect this to continue well into 2010, as the pace of recovery is far from certain,” said World Bank Group President Robert B. Zoellick. “Millions of people are still suffering, and we must continue to help countries safeguard priority expenditures, including on essential infrastructure, investment in human capital, and social safety nets, or we will further jeopardize hard-fought gains over recent years in overcoming poverty.”

Within South Asia, India was the largest borrower from IBRD and IDA, accounting for US$2,242 billion. Pakistan was the second largest borrower with US$1,609 million (IDA), followed by Bangladesh at US$1,096 million (IDA).

IBRD and IDA Lending in South Asia (Amounts in millions of US dollars)
	IBRD	IDA	IBRD/IDA
Afghanistan		197	197
Bangladesh		1,096	1,096
Bhutan		20	20
India	1,286	956	2,242
Maldives		3	3
Nepal		139	139
Pakistan		1,609	1,609
Sri Lanka		122	122
Total	1,286	4,142	5,428

Key to the Bank’s strategy in South Asia is scaling up existing programs that are delivering results. For example, in fiscal year 2009 the Bank approved US$250 million for the Pakistan Poverty Alleviation Fund (PPAF), a program the institution has supported since 2000. During this time, PPAF has facilitated the formation of 80,000 community organizations and provided 1.9 million micro-credit loans and 16,000 community infrastructure schemes. Similarly in Afghanistan, the Bank committed US$75 million to Afghanistan’s National Solidarity Program, a rural development initiative that has reached over 22,000 villages—about 68 percent of the rural population.

The International Finance Corporation (IFC), which makes equity investments, and provides loans, guarantees, and advisory services to private-sector business, committed close to US$1.2 billion in 47 projects in FY09 in South Asia. A third of the commitments this year were in infrastructure to support the acute financing needs of the sector in the region. A quarter of the program focused on the financial sector and the balance in manufacturing, agribusiness, health, and education sectors. In response to the scarcity of trade financing after the global economic slowdown, the region committed US$100 million in trade finance facilities to support local enterprises. As many as 15 projects in the region have a climate change component.

Paolo M. Martelli, Regional Director for IFC South Asia, said, “IFC's priority has always been to stand by our clients in the private sector. In difficult times, our role becomes even more critical. This year, IFC focused on the region's needs in infrastructure, on renewable, and clean production projects with significant development impacts."

IFC’s strategy in the South Asia region supports inclusive growth by increasing access to infrastructure and finance, focusing on low-income, rural, and fragile regions and making climate change central to its work, targeting areas where IFC can make the biggest difference. Through its advisory work, IFC addresses critical areas such as business environment reform, sustainable supply chains, access to finance, infrastructure, energy efficiency, and clean production.

The Multilateral Investment Guarantee Agency (MIGA), the Bank Group’s political risk insurance agency, is also supporting development in South Asia. In Pakistan, MIGA guarantees totaling US$1.74 million supported the establishment of Kashf Microfinance Bank (KMB) to make financial services available to the majority of unbanked population. Over the next five years, KMB will reach 1 million small depositors and 350,000 entrepreneurs through a network of over 100 branches across Pakistan. The network will be supplemented by 300 service posts closer to low income communities.

“As the leading international institution promoting foreign direct investment in emerging and transition economies, MIGA can help investors mitigate risks in these uncertain times and play an important role in helping countries attract FDI,” said Izumi Kobayashi, MIGA’s Executive Vice President. “MIGA can act as a stabilizing influence in the market.”

For more information about the World Bank’s work in South Asia, visit http://www.worldbank.org/sar

For more information about IFC’s work in South Asia, visit http://www.ifc.org/southasia/

For more information about MIGA, visit www.miga.org

The project NP Power Add Financing has changed to Active

2009-06-23T04:00:00.000Z

The project NP Power Add Financing has changed to Active. To see more information, see the project information in the World Bank project database

The project development objective of the Power Development Project for Nepal has been revised to better reflect the focus and scale of project activities following the restructuring of the project in 2008 and in light of the project scale-up, and is, "to increase access to electricity in rural areas; and improve the quantum and efficiency of electricity supply." The additional funding will help finance the costs associated with: (i) rehabilitation of existing assets and new investments required to support the response of the Government of Nepal to the energy crisis in the country; (ii) scaling up of the Government's successful off-grid rural electrification program; and (iii) additional technical assistance to benefit the Nepal Electricity Authority and the Alternative Energy Promotion Center, two implementing agencies. The closing date of the additional financing is December 31, 2012.

World Bank Provides More Support to Power Development in Nepal

2009-06-18T19:59:43.000Z

Contacts:

In Kathmandu:

Rajib Upadhya

(9771) 4226792/3

rupadhya@worldbank.org

In Washington:

Erik Nora

(202) 4584735

enora@worldbank.org

Washington, D.C., June 18, 2009 – The World Bank today approved US$ 89.2 million to support the Government of Nepal implement its Energy Crisis Management Action Plan.

As a result, by January 2009, grid-based consumers were being supplied with electricity for only 8 hours per day. This has had a highly negative impact on all aspects of the economy and has imposed a heavy burden on Nepalis. While recent rains have brought some relief to the power supply crisis, the shortage of storage capacity in the system means that the power supply deficit will continue to be severe for winters to come.

“Increasing access to electricity is one of the major human and economic development challenges facing Nepal,” says Susan Goldmark, World Bank Country Director for Nepal. “While it is clear that chronic power shortages will continue to be a defining feature of life in Nepal for several years to come, the Bank is stepping up its assistance to help Nepal minimize economic impacts and hardships in the short term as well as to implement medium to long term development plans. 36,000 rural households will benefit from the expansion of Nepal’s micro-hydro program.”

The additional financing for the Nepal Power Development Project, which was approved on May 22, 2003, will include investments in rehabilitation of the Kali Gandaki ‘A’ Hydro Electric Plant (HEP), the largest plant in Nepal’s power system, as well as of two existing thermal plants in Duhabi and Hetauda. It will also finance construction of the Bharatpur-Bardaghat transmission line, strengthen the old and severely overloaded distribution network in Kathmandu Valley, and expand the Government’s off-grid micro-hydro rural electrification program.

These investments are intended to strengthen Nepal’s power system by increasing energy production through reduction of down-time at the Kali Gandaki ‘A’ HEP, making available an estimated 22 MW of capacity at the existing thermal plants. It will also improve the reliability of the Kathmandu Valley distribution network by adding 500 MW transmission capacity to relay power from existing and expected future projects. An additional 4.25 MW is expected to be installed through the micro-hydro program.

“In the absence of a concerted scale-up of grid-supplied power, Nepal will continue to be burdened by a heavy reliance on costly, and often polluting, alternative means for meeting the demand for electricity", said Michael Haney, Senior Energy Specialist at the World Bank. “While some cite the high costs of hydropower development as an argument against developing Nepal’s great potential in this area, the cost to the economy of doing without electricity or relying on the alternatives is enormous.”

The additional financing is a blend of credit (US$73.7 million) and grant (US$15.5 million) from the International Development Association, the World Bank’s concessionary lending arm. The credit has 40 years to maturity with a 10-year grace period.

For more information on the Bank’s work in Nepal, please visit http://www.worldbank.org.np

For project information, please visit http://www.worldbank.org.np/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=223555&menuPK=286969&Projectid=P116190

For more information, please visit the Projects website.

Nepal: Power Development Project

2009-06-18T19:44:29.000Z

WASHINGTON, June 18, 2009 - The World Bank’s Board of Executive Directors today approved the following project:

Nepal: Power Development Project

IDA Grant: US$15.5 million equivalent

IDA Credit: US$73.7 million equivalent
Terms: Maturity = 40 years; Grace period = 10 years

Project ID: P043311

Project Description: The objective of the Power Development Project in Nepal will help build capacity to manage the development of Nepal's hydro power potential in a prudent and sustainable manner, increase access to electricity services in rural areas, and improve the supply of electricity.

Media Contact:

Erik Nora

(202) 458-4735

enora@worldbank.org

For more project information, please visit:

http://www-wds.worldbank.org/external/default/main?pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&theSitePK=523679&entityID=000160016_20030505152933&searchMenuPK=64187283&theSitePK=523679

For more information, please visit the Projects website.

The project Project for Agriculture Commercialization and Trade (PACT) has changed to Active

2009-06-11T04:00:00.000Z

The project Project for Agriculture Commercialization and Trade (PACT) has changed to Active. To see more information, see the project information in the World Bank project database

The development objective of the Agricultural Commercialization and Trade Project for Nepal is to improve the competitiveness of smallholder farmers and the agribusiness sector in selected commodity value chains in 25 districts supported by the project. There are three components to the project. The first component of the project is agriculture and rural business development, this component will finance demand-based sub-projects proposed by farmer groups, cooperatives, agribusinesses and other value chain participants to build strategic linkages with a view to increase competitiveness, productivity, quality, and market access. The second component of the project is support for sanitary and phyto-sanitary facilities and food quality management, this component will finance activities to strengthen the efficiency and effectiveness of sanitary and phyto-sanitary services in order to reduce existing obstacles to agricultural and food trade. It will also support the private sector's efforts to gain market advantage through improved food quality management. The third component of the project is project management, monitoring and evaluation, this component will finance overall project management, monitoring and evaluation and reporting.

Nepal: Agriculture Commercialization

2009-06-04T21:22:12.000Z

WASHINGTON, June 4, 2009 - The World Bank’s Board of Executive Directors today approved the following project:

IDA Credit: SDR 7.2 million (US$10.7 million equivalent)

Terms: Maturity = 40 years; Grace period = 10 years

IDA Grant: SDR 6.3 million (US$9.3 million equivalent)

Project Description: The project will improve the competitiveness of smallholder farmers and the agribusiness sector in selected commodity value chains in 25 districts. This will be achieved by: (i) helping farmer groups and cooperatives engage in profitable market-oriented production and improving access to markets through the provision of technology and information services and critical public infrastructure and linkages to agribusiness; (ii) creating and strengthening industry-wide partnerships along the value chain, thus forging linkages between producers, traders, processors, and other stakeholders; and (iii) reducing existing obstacles to agriculture and food trade, thereby increasing the ability of farmers and agribusiness to respond to sanitary and phytosanitary and food-quality standards to meet domestic and international market requirements.

Media Contact:

Jan Erik Nora

(202) 458 4735

enora@worldbank.org

For more project information, please visit:
http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P087140

For more information, please visit the Projects website.

Flexibility, Conflict Sensitivity and Demonstrated Strengths Underpin New World Bank Strategy for Nepal

2009-06-04T20:34:48.000Z

Contacts:

In Kathmandu: Rajib Upadhya (9771) 4226792/3

rupadhya@worldbank.org

In Washington: Erik Nora (202) 4584735

enora@worldbank.org

Washington D.C., June 4, 2009 – Nepal’s determination to build a robust peace through development and poverty reduction found strong support here today when the World Bank’s Board of Directors discussed the new country interim assistance strategy for the next two years.

Welcoming the many significant milestones achieved since the signing of the Comprehensive Peace Agreement in November 2006, the Bank’s strategy document supports the promotion of consensus and unity to address key elements of the peace process, including the foundations for state building, growth, and improved basic service delivery for Nepal’s poor.

Nepal is undertaking several difficult transitions at the same time. Despite the very real challenges, these transitions present an opportunity to move to the goal of a “new Nepal” which is stable and peaceful, inclusive of all its citizens, prosperous and accountable to its people, observes the Interim Strategy Note (ISN).

Given the transitional nature of Nepal’s current situation, with a new constitution being drafted and elections expected in 2011, the Bank Group has prepared an Interim Strategy Note covering fiscal years 2010 and 2011.

“Nepalis have shown remarkable resilience throughout their history. Thus, this is a period not only of risk but also enormous opportunity,” says Susan Goldmark, World Bank Country Director for Nepal. “While many of the transitions will not be completed in a two-year period, during this time the country can continue to establish a sound basis for peace and economic development.”

The strategy reflects considerable continuity, emphasizing the areas of strength but suggesting more flexibility to respond to opportunities. It builds on the areas which have shown to be robust and to modalities of implementation tailored to local conditions and what has worked in the past. By adopting a “peace filter”, the strategy also intends to improve sensitivity in Bank financed projects to the root causes of the conflict and social tensions.

Supporting the overarching goal of promoting peace and development, the strategy is organized around three themes that emerged during consultations within the Bank Group and with the Government, donor partners and civil society. These are also consistent with priorities of the Government of Nepal.

The first theme addresses the cluster of challenges facing the state in adapting and constructing the systems, institutions, and capacities needed for the new Nepal. The second focuses on overcoming constraints faced by the productive sector, especially in terms of productivity, connectivity and sustainability. The third theme concentrates on expanding and honing programs and activities that can increase opportunities and well-being, especially for the poor and excluded. Social inclusion runs across all of these themes as one of the foundations for the new Nepal. Within each of these themes, the strategy identifies specific areas where the Bank Group can make a difference.

Over the next two years Nepal can potentially benefit from an allocation of about US$ 782 million from the International Development Association (IDA), the Bank Group’s concessionary lending arm. These funds could finance about four to five new operations per year. The International Finance Corporation (IFC), the Bank’s Group’s private sector arm, can potentially commit US$15-20 million on average annually, depending on the availability of viable investments and improvements in the business climate.

The Board also approved a Project for Agriculture Commercialization and Trade. The project aims to improve the competitiveness of smallholder farmers and agribusiness in selected commodity value chains in 25 districts and is aligned with the third theme of the ISN.

The project is designed to help farmer groups and cooperatives engage in profitable market-oriented production and improve access to markets through technology and information services, critical public infrastructure and linkages to agribusiness. It intends to create and strengthen industry-wide partnerships along the value chain, forging linkages between producers, traders, processors, and other stakeholders. The project will also help reduce existing obstacles to agriculture and food trade, increasing the ability of farmers and agribusiness to respond to sanitary and phyto-sanitary and food-quality standards to meet domestic and international market requirements.

The US$20 million project will be financed with a credit of US$10.7 million and a grant of US$ 9.3 million.

For more information, please visit the Projects website.

The project Second Financial Sector Restructuring Project has changed to Closed

2009-06-04T04:00:00.000Z

The project Second Financial Sector Restructuring Project has changed to Closed. To see more information, see the project information in the World Bank project database

The main objective of the project is to support the on-going efforts to develop a healthier financial sector in Nepal which intermediates funds more efficiently and effectively to the benefit of all segments of society and in a manner which supports private sector development, increased investment, and faster growth. The project has the following four components: Component 1) Voluntary Retirement Schemes (VRS). The largest component is designed to support the VRS in Rastriya Banijya Bank (RBB) and Nepal Bank Limited (NBL) in an effort to reduce their costs and ultimately assist in making them more saleable/privatizable institutions. Component 2) Hiring of Sales Advisors. The hiring of the Sales (Privatization) Advisors will not happen until a year or so into the project when the banks are in a better financial condition and are therefore more viable privatization candidates. These Advisors will undertake proper due diligence, prepare a prospectus for the banks, and then undertake a road show to bring them to the point of sale to "fit and proper" private sector buyers as rapidly as possible. Component 3) Phase II: On-going Nepal Rastra Bank Re-engineering. The Financial Sector Technical Assistance Project has commenced a process of re-engineering within the central bank. However, reform, revitalization, and professionalization are complicated, long-term tasks. Greatly enhancing the capacity of NRB to oversee a prudently operated banking system is a prime objective of the series of reforms being undertaken within the sector. Whereas the Phase I reforms in banking supervision have focused on developing an appropriate off-site reporting system and a minimalist amount of on-site bank supervisory assistance, the Phase I1 reforms will assist in augmenting the on-site supervisory capacities to oversee the commercial banks. Component 4) Management Team Support. It is agreed, that the two banks may not be privatized by the time that the current three year term of the existing Management Teams expire (two years with a possible one-year extension). It is equally recognized that the banks should not revert to old management practices. It is therefore necessary to include funding for a contingency to cover the costs of continuing management team support up until the point of privatization.

The project Project for Agriculture Commercialization and Trade (PACT) is now in the pipeline.

2009-04-23T04:00:00.000Z

The project Project for Agriculture Commercialization and Trade (PACT) is now in the pipeline. To see more information, see the project information in the World Bank project database

World Bank Maps Local and Global Economic Geography, Calls For Greater Integration

2009-03-16T12:45:00.000Z

Contacts:
In Kathmandu: Rajib Upadhya (9771) 4226792/3
rupadhya@worldbank.org
In Washington: Erik Nora (202) 458 4735
enora@worldbank.org

KATHMANDU, March 16, 2009 – History shows that severe crises can cause nations to become inward-looking, sometimes with negative consequences. The World Development Report 2009: Reshaping Economic Geography, released today, argues that the most effective policies for promoting long-term growth are those that facilitate geographic concentration and economic integration, both within and across countries.

“The world’s most geographically disadvantaged people know all too well that growth does not come to every place at once,” said Indermit S. Gill, Director of the World Development Report (WDR) and Chief Economist, Europe and Central Asia. “Markets favor some places over others. To fight this concentration is tantamount to fighting prosperity. Governments should facilitate the geographic concentration of production. But they must also institute policies that make the provision of basic needs—of schools, security, streets, and sanitation—more universal.”

The new World Development Report challenges the assumption that economic activities must be spread geographically to benefit the world’s most poor and vulnerable. Trying to spread out economic activity can hinder growth and does little to fight poverty. For rapid, shared growth, governments must promote economic integration which, at its core, is about the mobility of people, products, and ideas.

“Throughout history, mobility has helped people escape the tyranny of poor geography or poor governance,” said Gill. “The report sees this as part of a vital process of economic integration, since mobile people and products form the cornerstone of inclusive, sustainable globalization.”

Integration should be the pivotal concept in the policy discussions involving the location of production, people and poverty—in particular, the debates on urbanization, regional development, and globalization. Instead, all three overemphasize place-based interventions.

“The ideas that the report bring to the table are highly relevant to the transitions that Nepal is currently undertaking,” said Susan Goldmark, the World Bank Country Director for Nepal. “Economic planners and policy makers in Nepal are discussing many of the same issues in the preparation of the Government’s National Development Strategy and the ideas presented in the report should be useful as the country embarks on the path of redefining institutions to support a peaceful, inclusive and prospering New Nepal.”

The WDR reframes the policy debates to include all the instruments of integration—common institutions, connective infrastructure, and targeted interventions. By common institutions, the report means regulations affecting land, labor and commerce, and social services such as education and health financed through taxes and transfers. Infrastructure refers to roads, railways, ports, airports, and communications systems. Interventions include slum clearance programs, special tax incentives to firms, and preferential trade access for poor countries.

Geography matters greatly in deciding what is needed, what is unnecessary, and what will fail, argues the report. By calibrating the blend of these policies, developing nations can reshape their economic geography, much as today’s high income economies did in the past. If they do this well, the report concludes, their growth will still be unbalanced, but their development will be inclusive.

Today’s event was co-hosted by the World Bank Nepal Office and the Management Association of Nepal. Vice Chairman of the National Planning Commission Dr. Guna Nidhi Sharma chaired the event. Finance Secretary Mr. Rameshore Prasad Khanal also shared Nepal’s experiences in planning and implementing development. Dr. Bimal Prasad Koirala, head of the Management Development Center of the Management Association of Nepal moderated the discussion.

For more information about the World Bank’s in Nepal, please visit
http://www.worldbank.org/np

To access this report on line, please visit
http://go.worldbank.org/K2CBHVB7H0

The project NP Power Add Financing is now in the pipeline.

2009-03-10T04:00:00.000Z

The project NP Power Add Financing is now in the pipeline. To see more information, see the project information in the World Bank project database

Urgent Action Needed to Address Reproductive Health Needs of Nepali Women

2009-03-06T05:00:37.000Z

Contacts:
In Kathmandu: Rajib Upadhya (9771) 4226792/3
rupadhya@worldbank.org
In Washington: Erik Nora (202) 458 4735
enora@worldbank.org

Kathmandu March 5, 2009 – Nepal faces an uphill task in meeting its Millennium Development Goals (MDG) related to improving the reproductive health of its women, according to a new World Bank report launched today. Among its suggestions, the report calls for integration of reproductive health services, decentralized and action oriented planning, targeting poor geographic areas and finding innovative ways of financing reproductive health.

The report, Sparing Lives: Better Reproductive Health for Poor Women in South Asia, analyses the current state of reproductive health in five countries in the region – Bangladesh, India, Nepal, Pakistan and Sri Lanka – and highlights the major risks faced by poor women. The report calls for urgent action in reducing Nepal’s maternal mortality, scaling up skilled birth attendants, maternal and child nutrition, and increasing the use of contraceptives.

The report underlines the need for countries in the region to pay more attention to poor women’s reproductive health if MDGs related to maternal and child health is to be achieved. It points out that an average South Asian woman faces a hundred times greater risk of dying during childbirth (1 in 43) than a woman in an industrialized country (1 in 4,000).

Today, Nepal’s Maternal Mortality Ratio (MMR) is two times higher than its MDG goal of a two-thirds reduction. Nepal’s target is to reduce MMR to 134 by 2015 from the current official estimate of 281 (per hundred thousand live births). The lifetime risk of dying during pregnancy for a woman in Nepal is 1 in 42. It lags far behind Sri Lanka (1 in 430); Bangladesh (1 in 59); and India (1 in 48) and is only slightly better than in Pakistan (1 in 31). Sri Lanka has the highest child immunization coverage (94 percent) in the region, followed by Nepal (83 percent), Pakistan (77 percent), Bangladesh (65 percent) and India (44 percent).

“This report highlights the enormous challenges that the region faces in addressing the reproductive health needs of poor women,” said Ms. Susan Goldmark, the World Bank Country Director for Nepal. “At the same time, there are lessons in the report that countries can learn from each other. For Nepal, given the diversity and disparities between the rich and the poor, the challenges are even more significant. We stand ready to support Nepal in its commitment to overcoming the challenges of achieving better reproductive health outcomes for women,” she said.

The report acknowledges the positive strides Nepal has made in the area of fertility. Between 1995-96 and 2005-06, fertility declined from 4.6 to 3.1 births per woman. The greatest change occurred among the adolescent group of 15-19 year-olds, which is a positive trend. Most urban areas have achieved replacement level fertility.

The disparities in Nepal’s
reproductive health services

Nepal’s rural poor and Dalit, Janjati women receive far lower levels of maternal health service coverage than other women.
84 percent of the wealthiest Nepali women receive antenatal care. Only 18 percent of the poorest do.
• Only 5 percent of poor women receive the services of trained birth attendants. 58 percent of wealthiest women do. Trained attendance at delivery is the single most important intervention to increase the chances of neonatal and maternal survival.
Only the wealthiest women are most likely to deliver at a health facility. The poorest women nearly universally deliver at home. Compare this to Sri Lanka where antenatal care and institutional delivery are nearly universal.

The challenges ahead: The widening gap between the rich and the poor

The report advocates the need to reduce disparities between the rich and the poor in accessing health services. For example in Nepal the number of poor women having access to antenatal care is 25 % that of the rich.

“Women’s low education and poverty are consistently associated with low use of reproductive health services,” said Meera Chatterjee, Senior Social Development Specialist at the World Bank and lead author of the report. “If we want to break the cycle of poverty we cannot ignore reproductive health because poor reproductive health undermines the well-being and survival of individuals and represents significant losses to the community, resulting in transmission of poverty from one generation to the next,” she said.

Poor nutrition
Poor nutrition is another major challenge, according to the report. An estimated 50 million children in India suffer from under-nutrition today. In fact, two-fifths of all children under five in the region are malnourished. In Bangladesh, India and Nepal, 40-50 percent of all children are under-nourished.

The disparities between the rich and the poor are also very stark. Compared to the richest quintile of urban women in Nepal, the poorest urban quintile is 4.8 times more likely to be under-nourished, and the poorest rural quintile, 5.6 times more likely.

Contraceptive use
To reduce fertility, the report calls for Nepal to accelerate availability and use of temporary methods. “In 2005-06, 48 percent of Nepali couples were using modern methods of contraception. However, only one-fifth of them were using temporary methods. While the availability of spacing contraceptives has increased in the past decade, the continued emphasis on terminal methods (i.e., sterilization) means that many couples do not contraceptive and continue to have more children than they really want, says the report.

The report makes the following recommendations to help improve reproductive health in the region:

Single window for complete package of essential reproductive health services: Poor women often do not have the time, money, or the power to approach providers for health care, family planning, and childbirth. They, therefore, need to be provided a continuum of care through a ‘single window’.
Antenatal care and skilled birth attendance need to be stepped up: Institutional delivery or the presence of a skilled birth attendant can make a critical difference to the survival of mothers and their babies. It is only in Sri Lanka that almost all births take place in institutions; in India and Pakistan it is less than 40 percent and in Nepal it is only 21 percent.
Decentralized and action oriented planning is needed: The focus should be on action planning which involves poor women themselves, their institutions, local governments and health staff. This will increase relevance and accountability.
Disseminating ‘know-how’: Good practices that have worked within the developed world and in the region need to be shared and is an important central function that must be stepped up.
Efficient financing: The report calls for innovative financing to the reproductive health sub-sector to ensure the inputs for additional and better services. Increasing allocations to in-patient maternal and child health services over current low levels in most areas could substantially increase the use of needed health care by the poor.
Innovative financing: Vouchers, reimbursement, insurance and social marketing are some feasible approaches that will reduce heavy out-of-pocket expenditures by the poor on reproductive health care. For example, Bangladesh has a good voucher system which is being used to increase the availability of services and improve equity, the report adds.

For more information about the World Bank’s in Nepal, please visit
http://www.worldbank.org/np

HIV and AIDS Pose Serious Risk to Economic and Social Development in South Asia, Despite Low Infection Rates

2009-02-27T15:00:00.000Z

Media Contact:
In Washington: Erik Nora (202) 458 4735
enora@worldbank.org

WASHINGTON, DC, February 27, 2009 ─ HIV and AIDS can pose a serious economic and social development risk to countries in South Asia unless prevention programs, targeting vulnerable groups at high risk of infection, are scaled up, says a World Bank report released today.

The report, titled “HIV and AIDS in South Asia: An Economic Development Risk,” argues that, even if the overall prevalence rate is low (up to 0.5 percent), there is high and rising HIV prevalence among vulnerable groups at high risk for HIV infection, including sex workers and their clients, and injecting drug users and their partners. Without increasing prevention interventions among those at highest risk, these concentrated epidemics can further escalate.

Overall, the number of people living with HIV and AIDS in South Asia is about 2.6 million, of whom the lion’s share is in India. AIDS accounts for 1.5 percent of all deaths in South Asia and about 2 percent of all deaths in India. These numbers of deaths are comparable to the numbers from diabetes, tuberculosis, and measles.

The report finds the impacts of HIV and AIDS in South Asia on the aggregate level of economic activity to be small. For India, the effect on GDP (0.16 percent) corresponds to a one-off loss of about 1.5 weeks of GDP growth. However, the direct welfare costs of increased mortality and lower life expectancy are more substantial, accounting for 3 percent to 4 percent of GDP in India and Nepal, respectively

“Even in the low HIV prevalence countries of South Asia, there cannot be any room for complacency,” said Mariam Claeson, World Bank HIV and AIDS Coordinator for South Asia. “While the impact of HIV and AIDS on economic growth is small in South Asia, the welfare cost on households is by no means negligible. HIV and AIDS also have an enormous disproportionate impact on vulnerable and often marginalized people at highest risk of infection, and on poor households with less access to information, preventive services and treatment.”

The economic impact on individual households affected by the disease is substantial, the report says. In a household study on India, 36 percent of people living with HIV and AIDS who were able to retain their employment nevertheless reported an income loss, which averaged about 9 percent. Among those who lost their employment (about 9 percent), the income loss was severe, at about 66 percent.

Many of the adverse development impacts of HIV and AIDS arise from its uneven impact on different population groups. Access to prevention and treatment, for example, is strongly linked to socioeconomic factors such as gender, education, and wealth. And, people’s ability to cope with the financial effects of HIV and AIDS differs strongly. For example, the report finds that HIV and AIDS have a disproportionate economic impact on HIV-positive widows who face the double burden of living with HIV and AIDS and the low socioeconomic status of women.

“This analysis shows that failure to contain the epidemic at low levels may have serious economic consequences,” said Sadiq Ahmed, World Bank's Acting Chief Economist for the South Asia Region.

Access to antiretroviral treatment (ART) is low in South Asian countries, even compared to countries in other regions with much higher infections rates. The report says the fiscal cost of treatment could be very high if South Asian countries fail to contain the epidemic.

Access to effective treatment is vitally important to mitigate the health and economic impacts of HIV and AIDS, the report says. At the same time, the medical costs of treatment can put a substantial proportion of the population living with HIV and AIDS at risk of poverty, especially in a region where most health services are paid for out of pocket. This underscores the crucial role of effective prevention.

With the exception of Sri Lanka, three-quarters or more of health expenditures in South Asia are financed privately and little are covered by third-party payers like insurance agencies. With the limited ability of many households to pay catastrophic health expenses associated with HIV and AIDS, and the negative externalities associated with poor adherence, the report argues for a large and critical role for the public sector in the provision of ART.

# # #

To read the report, visit http://go.worldbank.org/YHRC95J2J0

For more about the World Bank’s work in HIV and AIDS in South Asia, visit
http://www.worldbank.org/saraids

World Bank Seeks Innovative Ideas to Improve Nutrition in South Asia

2009-02-12T05:06:31.000Z

Contacts:
In Kathmandu: Rajib Upadhya (9771) 4226792/3
rupadhya@worldbank.org
In Washington: Erik Nora (202) 458 4735
enora@worldbank.org

KATHMANDU, February 12, 2009 ─ The World Bank today launched a competitive Development Marketplace for Nutrition aimed at finding and funding innovative ideas that will change the lives of thousands of pregnant women, infants, and young children in South Asia.

Titled “Family and Community Approaches to Improving Infant and Young Child Nutrition,” the Development Marketplace is looking for entrepreneurial organizations across South Asia to submit proposals for local, small-scale projects which have the potential to be scaled up and replicated. The winners will be selected by an international jury of development and nutrition experts at the Development Marketplace event in August, 2009 in Dhaka, Bangladesh and will receive funding to implement their proposals.

“Malnutrition affects the lives of millions of infants and young children in South Asia,” said Isabel Guerrero, World Bank Vice President for the South Asia region. “It saps a child's growth potential, delays enrollment in school, limits school achievements, and lowers lifetime earnings. This competition offers a unique opportunity to channel small grants directly to community organizations and NGOs who present innovative ways to address this devastating problem.”

Malnutrition is the single biggest contributor to child mortality in the world. In no place is this problem more serious than in South Asia, where child malnutrition rates are among the highest in the world. Both child underweight and stunting rates in the region are nearly double those in Africa. In Nepal, Malnutrition remains a big problem, evidenced by the fact that nearly half of all children below the age of 5 suffer from stunted growth. Nutrition “stuck” with one in two children under age 5 years is anemic, and 39% of them are underweight.

“Recent evidence clearly shows that there are proven effective interventions to improve nutrition,” said Andrea Vermehren, World Bank team leader for the Development Marketplace. “However, effectively implementing these interventions - and implementing them at scale is a major challenge. We believe this effort will help find new ways of providing innovative solutions to malnutrition.”

The South Asia Regional Development Marketplace is implemented in partnership with the Deutsche Gesellschaft fur Technische Zusammenarbeit (GTZ), Micronutrient Initiative, UNICEF, and the World Food Program. The competition is open to civil society groups, social entrepreneurs, youth organizations, private foundations, academia, and private sector corporations in Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka. The maximum award will be US$40,000 per proposal. Proposals will be accepted until March 31, 2009.

For eligibility criteria, details on the competition and to submit proposals online, please visit the South Asia Regional Development Marketplace website – www.worldbank.org/nutritiondm2009.

The Development Marketplace global competition has awarded nearly US$46 million to small-scale projects over the last eight years. Using this funding as a launching pad, projects often go on to scale up or replicate elsewhere, winning prestigious awards within the sphere of social entrepreneurship.

For more information about the World Bank’s work in South Asia, please visit http://www.worldbank.org/sar

For more information about the World Bank’s in Nepal, please visit http://www.worldbank.org/np

The project Nepal Poverty Alleviation Fund II Supplemental has changed to Closed

2009-02-02T05:00:00.000Z

The project Nepal Poverty Alleviation Fund II Supplemental has changed to Closed. To see more information, see the project information in the World Bank project database

The proposed additional grant for Nepal - Poverty Alleviation Fund Project will help finance the costs associated with scaling up the geographic coverage of a well-targeted project that is reaching the intended beneficiaries and providing them opportunities for increased income generation, decision making, and accessing better services. The Government of Nepal (GON) received a grant of US$15 million for the ongoing pilot project in six of the least developed districts as defined by GON's district deprivation index. Additional financing of US25 million is hereby requested to scale up project activities to 19 more districts, also rated among the poorest.

The project Poverty Alleviation Fund Project has changed to Closed

2009-02-02T05:00:00.000Z

The project Poverty Alleviation Fund Project has changed to Closed. To see more information, see the project information in the World Bank project database

The project NP Access to Financial Services Project has changed to Dropped

2008-12-21T05:00:00.000Z

The project NP Access to Financial Services Project has changed to Dropped. To see more information, see the project information in the World Bank project database

The project Nepal Food Crisis Response Program-Social Safety Net Project has changed to Closed

2008-10-30T04:00:00.000Z

The project Nepal Food Crisis Response Program-Social Safety Net Project has changed to Closed. To see more information, see the project information in the World Bank project database

This project paper support for a Nepal Food Crisis Response Program (NFCRP) consisting of: (i) a credit and grant for a new project on Social Safety Nets; and (ii) additional financing to the Irrigation and Water Resource Development Project. These funds are to be made available from the restructured and cancelled credit/grants under the Financial Sector Technical Assistance (TA) Project; the Financial Sector Restructuring Project and the Telecom Sector Reform Project, as well as a grant from the Food Price Crisis Response Trust Fund. The additional financing of the Irrigation and Water Resource Development Project and the financing of the new emergency project. This program is consistent with the framework set out in the Global Food Crisis Response Program and will constitute the Bank's overall support of the Government of Nepal's Food Crisis Response Program. The NFCRP will finance activities to mitigate both the short-term and the medium to long-term impact of rising food prices in Nepal as a result of the global food price trends. The proposed program will support the Government of Nepal's (GON's) national strategy to maintain and enhance food security. It includes support to the implementation of social safety net measures to maintain access to basic needs (mainly food) among vulnerable households in food insecure districts; and agricultural productivity activities to expedite a supply response through the implementation of measures to raise the yields and consequently the production of staples.

The project Irrigation & Water Resources Management Supplemental is now in the pipeline.

2008-10-28T04:00:00.000Z

The project Irrigation & Water Resources Management Supplemental is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Nepal Food Crisis Response Program is now in the pipeline.

2008-09-12T04:00:00.000Z

The project Nepal Food Crisis Response Program is now in the pipeline. To see more information, see the project information in the World Bank project database

The project Nepal - Health Sector Program Project Additional Financing is now in the pipeline.

2008-05-02T04:00:00.000Z

The project Nepal - Health Sector Program Project Additional Financing is now in the pipeline. To see more information, see the project information in the World Bank project database

The Health Sector Program Project development objective for Nepal is to expand access to and the use of essential health care services, especially by underserved populations. The additional financing will support further investment in the eight initially planned output areas, without any change in the program development objectives or design. Selected priority activities will be expanded to increase the availability of essential health care services, ensuring increased access for the disadvantaged. The additional financing is also an opportunity to accelerate investment in key stewardship functions such as monitoring and evaluation, as well as accountability and transparency in the sector. Progress on these fronts will build confidence across the board and facilitate Nepal in mobilizing stakeholders and ultimately resources in the context of the next phase of the Nepal health sector program due to start in 2010. The additional financing seeks to achieve: (i) enhanced availability of and access to essential services supported by expanded activities in public private partnerships, human resources management, and logistics; and (ii) rapid progress on key stewardship functions such as monitoring and evaluation, accountability and transparency. The eight output areas will continue to be financed and monitored as originally planned.

The project Nepal Peace Support Project is now in the pipeline.

2008-04-07T04:00:00.000Z

The project Nepal Peace Support Project is now in the pipeline. To see more information, see the project information in the World Bank project database

The overall objective of the Emergency Peace Support Project is to contribute to the consolidation of the Nepal peace process by supporting: (i) government to meet commitments to selected groups affected by the conflict, including families of those killed as a result of the conflict, conflict-related widows and orphans, disabled people, and individual Maoists in cantonments; (ii) ensuring transparency in implementation of benefits under the project for the conflict-affected groups, including the Maoists in cantonments; and (ii) strengthening of key institutions which are tasked with policy and implementation functions in peace building, reintegration and rehabilitation. There are three components to the project. The first component is the transitional safety net payments to Maoists in cantonments during the transition period. Over 19,000 eligible Maoists have been placed in twenty-eight cantonments (seven central sites and twenty one satellites) following the peace accord, with commitment by political parties to payment of regular allowances to reduce the chances of disenchantment and to militate against a need for rent-seeking behavior while the Maoists are encamped. These act in effect as transitional safety net payments. However, 10 months of payments were outstanding as of mid-April 2008, and there are presently no funds budgeted for forward payments that will be necessary for the months following elections. This component will finance transitional safety net payments for 19,602 Maoists in cantonments. The second component is the benefits to families of those killed as a result of the conflict and reintegration support to other conflict-affected populations. The third and the final component is the capacity building of key institutional structures in support of the peace process and project management support. This component will have three sub-components: (a) capacity building and technical assistance for the Ministry of peace and reconstruction to perform their core functions more effectively; (b) support for core project implementation tasks of the Project Management Team (PMT) such as procurement, financial management (FM), including evaluation of project interventions through surveys and other assessment tools; and (c) training, workshops and technical assistance for other actors in the peace process as needed, including the peace commission once formed, the peace and conflict management committee if required, local peace committees, and other groups such as parliamentarians and possibly other bodies related to the peace process envisaged in the 23 point agreement.