World Bank grants $75 million to PAF

World Bank and government today signed a grant agreement of $75 million in additional financing for the Poverty Alleviation Fund (PAF).
Joint Secretary and chief of Foreign Aid Coordination Division at the Ministry of Finance Lal Shanker Ghimire and World Bank acting country manager for Nepal Andras Horvai signed the agreement on behalf of their institutions.
The assistance package comprises $65 million in grant from the International Development Association (IDA) and $10 million in grant co-financing from the Global Food Price Response Programme multi-donor trust fund.
"The Poverty Alleviation Fund has helped improve living conditions, livelihoods and empowerment among the rural poor, particularly those who are disadvantaged due to gender, caste, ethnicity or physical isolation,” said newly appointed World Bank Country Director for Nepal and Bangladesh Ellen Goldstein after the signing ceremony.
Around 2.65 million Nepalis -- or close to a tenth of the population -- are directly benefiting from the programme.
Initiated by the government in 2004 PAF now works in Nepal’s 40 poorest districts, directly supporting over 14,500 Community Organisations (COs) and benefitting nearly 530,000 households, of whom 57 per cent are from the disadvantaged Dalit and Janajati communities.
Average incomes for households in areas supported by PAF have increased over 80 per cent in real terms, adjusted for inflation. More than 15,600 households now have road access for the first time; 25,300 households have new irrigations systems and water supply; bridges and sanitation have been provided for more than 32,000 households.
Similarly, more than 6,800 households have benefitted from alternative sources of energy, with significant preference for micro hydro plants and solar systems, and extension to electricity lines. Some 383 investments in new and rehabilitated irrigations systems are expected to be finalised by next year, which will benefit close to 4,400 additional households.
Nearly 3,800 community organisations are investing in vegetable farming, thereby increasing availability and quality of food in these communities and providing a valuable source of income. An independent impact evaluation shows that the overall welfare of PAF assisted households has improved by 13 per cent to 49 per cent depending on how recently they have been assisted by PAF.
Communities that have been assisted longer have a higher welfare gain. For example, the incidence of food insecurity for PAF assisted households has declined by seven per cent on average and 18 per cent for households who have been assisted by the programme for a longer period of time.
Its impact is stronger for Dalit and Janajati households, said the bank. By contrast, food insecurity for comparable households increased by four percent during this period. As a result of PAF, school enrolment rates among children aged 6-15 years increased by 11 per cent on average and by 12-15 per cent for households from older PAF assisted communities.
The programme has also helped increase access to services such as agriculture centers, community forest groups and farmer groups, and is positively supporting women’s empowerment. "The additional financing for PAF will continue to strengthen this impact in more communities and more districts,” Goldstein, said, adding that the programme will focus more support on improving food security in response to drought and price fluctuations, particularly for the most food insecure households who are most vulnerable to the spiraling cost of food.

Goldstein new director
KATHMANDU: The World Bank has appointed Ellen Goldstein as Country Director for Nepal and Bangladesh. Goldstein, a US national, has been serving as the Country Director for Bangladesh since November 2009. Goldstein joined the World Bank in 1988 as a macroeconomist and has since worked with Bank programs in South Asia, West Africa, Europe and Central Asia, and the Caribbean. She has served as Country Director for programmes in nine West African nations. She has also served as Director for Quality Assurance and Results at the African Development Bank in Tunisia.