ADB to open Bhutan office in early 2013

The Asian Development Bank (ADB) will open an office in the South Asian nation of Bhutan in early 2013 to more efficiently manage a growing portfolio focusing on transport, energy and urban development.
"To understand Bhutan’s needs, and the development challenges it faces, ADB needs an on-the-ground presence," said director general of South Asia Department Juan Miranda.
Bhutan has done well in achieving many Millennium Development Goals (MDGs), but pockets of poverty still remain among its 720,000 people. As a landlocked nation, Bhutan needs to work closely with other countries to ensure it has efficient transport links, notably to seaports in Bangladesh, India, and elsewhere. Such regional cooperation is critical to ensuring the country’s future.
The Bhutanese government aims to achieve an economic growth rate of at least nine per cent each year to become a middle income country by 2020. Earlier this month, ADB estimated a growth rate of 7.9 per cent for the 2011-2012 fiscal year (ended on June 30), and forecast a growth rate of 8.4 per cent for the current fiscal year.
ADB’s future activities in Bhutan will be aligned with the government’s upcoming 11th Five Year Plan for 2013-2018, and will focus on transport, energy, and urban development.
Bhutan joined ADB in 1982. Since 1983, ADB has approved $381.37 million in loans and grants, $50.5 million in technical assistance, and $11.4 million in project grants from the Japan Fund for Poverty Reduction.
Some of the major projects ADB has supported in recent years include the Green Power Development Project worth more than $100 million, to support the Dagachhu hydropower development and enhance renewable energy access for the poor, and the Road Network Projects I and II, totalling more than $65 million, to improve the country’s main road network, including the Trongsa-Gelephu Highway and southern East-West Highway.

Agriculture to receive top priority: PM

Prime Minister Dr Baburam Bhattarai has said that the government will accord top priority to the agriculture sector.
"The government will double the investment for the agriculture sector in the next fiscal year to transform it from a substantial one to a commercial one, he said while addressing the International Workshop on Agribusiness Promotion today.
"The government is planning to develop the agriculture sector for the economic progress and prosperity of the country," he said, adding that commercialisation of agriculture also focuses on mass employment and poverty alleviation. According to him, the government wants to completely transform the substantial form of agriculture in the country where 70 per cent farmers own less than one hectare land. "Commercialisation of agriculture will attract youth towards it and create mass employment. It will ultimately help the economy," he said, "The government has envisioned agriculture-based industrialisation in the country for a balanced form of development."
According to him, the government is laying emphasis on agriculture to ensure food security in the country. The interim constitution of the country has guaranteed 'food for all' but more than seven million people living in the far-west and mid-west hills are suffering from food shortages. Prime Minister Bhattarai also said that the government needed to massively intervene in the agriculture sector to transform it. "The government needs to adopt land reforms, provide subsidised loans, and research and develop improved seeds and technology for commercialisation of the traditional agriculture system," he said.
The government has already announced to double the budget for the agriculture sector in fiscal year 2012-13.
Though, the prime minister is claiming about according top priority to agriculture and doubling its budget, the National Planning Commission (NPC) has given a ceiling of Rs 14 billion to the Agriculture Ministry from the total ceiling of a Rs 429-billion budget for the next fiscal year. In the current fiscal year, the ministry received Rs 12.43 billion out of the total budget outlay of Rs 384.90 billion.
The conference was jointly organised by Project for Agriculture Commercialisation and Trade (PACT), Federation of Nepalese Chambers of Commerce and Industry and World Bank Group to promote the agriculture sector for the growth and sustainability of agribusiness. PACT has started the commercialisation process in 25 districts in the country. About 200 agriculture commercialisation experts from Nepal, India, Bhutan, Indonesia, the Netherlands, Indonesia and US and stakeholders of Nepal are participating in the international workshop.

ADB, Japan launch new projects

The Asian Development Bank (ADB) and the government of Japan today teamed up to help Nepal reduce child malnutrition, develop new livelihood opportunity for the poor populace and promote greater access to clean energy for poor rural women.
The three projects will be funded by grants totaling $7.7 million from the Japan Fund for Poverty Reduction (JFPR) and administered by the ADB.
"From 2001 to August 2011, Nepal has been the beneficiary of ten JFPR projects worth more than $17.05 million," country director of Asian Development Bank Barry J Hitchcock said, adding that the additional three programmes will benefit the most vulnerable and often excluded groups.
Reducing Child Malnutrition through Social Protection will help Nepal improve planning and delivery of its social protection programmes, whereas Support for targeted and sustainable development programme for highly marginalised groups will provide assistance to develop new livelihood opportunities and improve income in the poorest and the most disadvantaged communities. Similarly, Improving Gender-Inclusive access to clean and renewable energy — a sub-regional project — will promote greater access to clean energy for poor rural women in Bhutan, Nepal and Sri Lanka.
"Despite Japan's rising expenditure for reconstruction of earthquake and tsunami in Japan, we are firmly determined to continue providing all possible assistance for the welfare of Nepal," ambassador of Japan to Nepal Tatsuo Mizuno said, during the launching of the projects.
Japan has helped Nepal upgrade Kathmandu-Bhaktapur road under its grant aid ODA and also constructing 160-km Sindhuli road that is expected to complete in future, he said, adding that the road will help local people generate income and reduce poverty.
Finance secretary Krishnahari Baskota and Local development secretary Sushil Ghimire, on the occasion, thanked Japan government and ADB for their consistent help in Nepal's development.

Japan gives $4.55m aid to Nepal

Japan has pledged a grant aid totaling US$ 4.55 million to protect women, children and the poor in Nepal under the Japan Fund for Poverty Reduction (JFPR) that supports high-impact projects to reduce poverty in developing countries in Asia and the Pacific.

The fund supports activities in Nepal that include provision of small-scale basic economic and social services to the poor.

Masakazu Sakaguchi, executive director of the Asian Development Bank (ADB), -- while launching the programme here today -- said that in line with the poverty reduction goals of JFPR, all three projects are targeted at benefiting and empowering the most vulnerable and often excluded groups in Nepali society- women, children and the extreme poor.

JFPR projects also build capacities, and promote partnerships among various stakeholders for tangible and sustainable results through innovative approaches, he added.

ADB's country director for Nepal, Barry J Hitchcock, said that the women and children service centers will support the Nepal police in establishing effective measures for protecting women and children who are victims of abuse, whilst the legal documentation effort will enable people in some of the poorest districts to gain access to essential services.

The fortified flour in Chakki mills will help reduce anemia and other illnesses linked to vitamin and mineral deficiencies in children, he added.

Rameshore Khanal, secretary at the Ministry of Finance said that this fund will help the rural Nepali women, children and poor by raising awareness among them and also help them generate income.

The government of Nepal is helping by setting up women and children service centers for victims of abuse, facilitating legal identity documentation for poor people and production of fortified flour in Chakki mills, the press release issued on the occasion stated.

Japan helps Nepal to introduce fortified flour at small mills to reduce anemia

Nepal will enlist the help of small millers to boost the production of fortified cereal flour, which can help reduce anemia and other illnesses linked to vitamin and mineral deficiencies, particularly in poor, rural areas.
To support the government’s goal, the Japan Fund for Poverty Reduction (JFPR) — financed by the government of Japan and administered by the Asian Development Bank (ADB) — is providing a grant of $1.8 million for producing fortified flour at small, village-based milling centers, known as Chakki mills. The project is targeting the addition of iron, folic acid and vitamin A to milled wheat, maize and millet, benefiting around 200,000 people.
Anemia, caused by a lack of essential nutrients, is a major public health issue in Nepal, resulting in many maternal and perinatal deaths and development problems in children. Fortified flour, used to combat anemia, is now produced in large, commercial milling enterprises but this is only a small proportion of the total consumed, and cost, technology and other barriers have hindered its introduction at smaller mills.
The government, along with the Canadian non-government organisation, Micronutrient Initiative, is now testing low-cost fortification systems at water and electric-powered Chakki mills and the JFPR-funded project will help accelerate and expand this process.
“Fortified flour can reduce national rates of vitamin and mineral deficiencies within one year of implementation," said Snimer Sahni, principal Project Economist in ADB’s South Asia Department. "This project will define the conditions, capacities and resources needed for the sustainable expansion of small-mill flour fortification, benefiting the poor and vulnerable.”
The project will seek to find realistic solutions to the problems that currently prevent flour fortification at small mills, such as recurring costs, supply and support system difficulties, quality assurance issues, and a lack of consumer awareness. Among the innovations it will consider are community-based financing options, including possible channels for converting grain received as payment for use of the milling facilities, into hard cash.
Community participation is a key element of the project, with 65 village development committees (VDCs) to receive resources for the delivery and monitoring of the use of nutrients by millers, for collecting payments, for providing quality assurance monitors, and for raising community awareness. The target is to provide 360 small millers with the equipment and training to produce about 19,000 metric tonnes of fortified flour which will give nutrition protection for more than 200,000 people for two years.
Once the project outcomes have been assessed, they may be expanded to other parts of Nepal through ADB’s country assistance programme.
Along with JFPR, the government will provide $122,000, the private sector $14,725, and beneficiaries about $130,000, for a total project cost of $2.066 million. The Ministry of Health and Population is the executing agency for the project which will run from 2010 to 2012.