Government, development partners launch Public Expenditure and Financial Accountability Assessments

Nepal has a robust legislative and institutional framework for public financial management, but further reforms are needed to strengthen fiscal and budget outcomes to support green, resilient, and inclusive development, says the third Public Expenditure and Financial Accountability (PEFA) Performance Assessment Reports.

The PEFA Performance Assessment Reports were jointly launched today by the government  with support from the Multi-Donor Trust Fund. The assessment is based on the internationally recognised PEFA Framework to assess the progress of Public Financial Management (PFM) across the government. Based on the assessments, the government will prepare a medium-term PFM Reform Strategy and Action Plan.

“Public financial management has the power to change people's lives and livelihoods,” finance minister Barsha Man Pun said, adding that Nepal is committed to establishing a strong and robust public finance system and transforming the public financial management landscape through rigorous reforms and adoption of digital governance.

The government partnered with the Nepal Public Financial Management Multi-Donor Trust Fund supported by Australia; European Union; the United Kingdom’s Foreign, Commonwealth, and Development Office; Norway; Switzerland; and U.S. Agency for International Development and administered by the World Bank to conduct the assessments. The reports consist of the PFM Performance Assessment, Climate Responsive PFM Performance Assessment, and Gender Responsive PFM Performance Assessment. Nepal is the second country after Bhutan in South Asia to undertake PEFA Climate and PEFA Gender Assessments. 

According to the PFM performance assessment, the government has deployed a range of information systems to enhance the efficiency of PFM. The adherence to international standards in the budget and accounts classification ensures comparability, accuracy, comprehensiveness, and transparency in financial information. Budgets are designed with a medium-term outlook, and the predictability of resource availability for spending units is at a high level. The fiscal transfers allocated to subnational governments exhibit transparency and adherence to established rules while the scope and coverage of both the internal and external audits are extensive. 

“Nepal’s successful completion of the PEFA assessment demonstrates its commitment to sound financial management practices,”  World Bank country director for Maldives, Nepal, and Sri Lanka Faris Hadad-Zervos said, adding that development partners, including the World Bank, are committed to supporting the next generation of public financial management reforms for Nepal’s green, resilient, and inclusive development. 

The assessment highlights the following areas for potential PFM reforms to achieve better fiscal and budgetary outcomes in the future:

• Restoring fiscal credibility through a sustainable medium-term expenditure framework, recalibration of fiscal rules, expenditure reprioritization, and risk management. 

• Improving public investment efficiency by reducing inefficiencies and building climate-resilient infrastructure. 

• Applying a climate and gender lens to fiscal decision-making to mainstream climate and gender considerations. 

• Enhancing fiscal transparency and accountability by enforcing fiscal rules and promoting accountability.

“As the PEFA assessment demonstrates, some crucial elements center on fiscal discipline and its impact on service delivery. Better fiscal discipline is needed for more effective, inclusive, and accountable delivery of services,” said acting mission director of USAID Nepal Karen Welch. “We, the development partners, bring assistance that supports the government’s efforts across many sectors, like health and education, environmental preservation, and attention to marginalised groups. Sound PFM allows us to work together to better benefit the people of Nepal.”

The programme was chaired by the finance secretary Madhu Kumar Marasini. chief secretary. Dr Baikuntha Aryal, revenue secretary Dr Ram Prasad Ghimire, and financial comptroller general Hari Prasad Mainali expressed their views and reiterated their commitment for PFM reforms as indicated by this assessment. The event also included a panel discussion on the topic: “How can Nepal improve capital expenditure to achieve development outcomes?”.

The event was attended by high-level government officials, accountability institutions, and development partners involved in PFM, including climate and gender agencies. 

USAID to provide $58.5 million to ‘advance democratic progress in Nepal’

The US development agency is providing up to $58.5 million to advance democratic progress in Nepal.

Visiting United States Agency for International Development (USAID) Administrator Samantha Power announced – during an interaction with the leaders of the government, civil society and private sector in Kathmandu today – that the assistance includes $20 million to strengthen inclusive democracy and prosperity in Nepal and $18.5 million to support civil society and media.

“$40.2 million of the announcement is part of the $659 million development objective agreement announced in 2022,” according to a press note issued by the US Embassy in Kathmandu.

“Following transparent and peaceful elections in 2022, Nepal has an opportunity to strengthen federalism, advance the inclusion of women and marginalised communities, empower its young people, and demonstrate that democracy can deliver for its citizens,” it reads, adding that the United States will be a partner in this effort.

USAID’s investment is expected to help Nepal cement its democratic gains and usher in greater prosperity and resilience for the Nepali people by strengthening public financial management, independent civil society and media, democratic processes and institutions, rule of law, and private sector development.

Power, who also handed over the reconstructed Adarsha Secondary School in Bhaktapur, holds a Cabinet rank in the US order of precedence. The school was damage during the April 2015 devastating earthquake. The reconstruction of the school was supported by USAID and was implemented in partnership with National Reconstruction Authority and Central Level Project Implementation Unit (Education). 

During the handing over of the school, Power also interacted with the students and played basketball with them.

Power, who arrived Kathmandu today, for a two-day official visit, holds a cabinet status and National Security Council membership in the Joe Biden administration. She is also the senior-most official to visit Nepal after the US State Secretary Colin Powell, who was in Nepal in 2002.

A week ago, the US undersecretary of state for political affairs, Victoria Nuland visited Nepal and yet another dignitary is visiting Nepal soon. The frequency of visits of diplomats from the US has increased in recent years, which – according to foreign policy experts – could also reflect the shift in Nepal’s foreign relations priorities and growing geopolitical importance.

Power is scheduled to meet Prime Minister Pushpa Kamal Dahal, Deputy Prime Minister Bishnu Paudel, civil society leaders and some businesspersons before leaving Nepal tomorrow.

But she met foreign minister Bimala Rai Paudyal at the ministry, according to a press note issued by the Foreign Ministry. “During the meeting, views were exchanged on various aspects of Nepal-US relations and cooperation,” the press note reads, adding that the foreign minister shared Nepal’s view on the need of a clear roadmap and ambitious goal on climate finance highlighting Nepal’s strong commitments on climate change. 

Nepal, on the occasion, thanked the US for its continued cooperation for Nepal’s socioeconomic development, including the USAID cooperation package last year, which has contributed to various areas of Nepal’s development such as health and education, transport and communication, agriculture and environment. 

Power also complimented Nepal’s democratic development and said that the US will continue to support Nepal in its socio-economic development efforts.

Also today, foreign minister Paudyal delivered an opening remark in the event on “Deepening US-Nepal Democratic Partnership” as a guest speaker together with the USAID Administrator. In her remarks, the Foreign Minister highlighted the continued efforts made in the consolidation of Nepal’s democratic processes. 

Power will also ensure that USAID enhances its longstanding leadership in areas including food security, education, women’s empowerment, and global health, it adds.

Prior to joining the Biden-Harris Administration, Power was the Anna Lindh Professor of the Practice of Global Leadership and Public Policy at Harvard Kennedy School and the William D Zabel Professor of Practice in Human Rights at Harvard Law School. From 2013 to 2017, Power served in the Obama-Biden Administration as the 28th US Permanent Representative to the United Nations.

An immigrant from Ireland, Power began her career as a war correspondent in Bosnia, and went on to report from places including Kosovo, Rwanda, Sudan, and Zimbabwe. She has been recognised as one of Time’s ‘100 Most Influential People,’ one of Foreign Policy’s ‘Top 100 Global Thinkers,’ and by Forbes as one of the ‘World’s 100 Most Powerful Women.’

Power is also an author and editor of multiple books, and the recipient of the 2003 Pulitzer Prize for Nonfiction.

Power was sworn into office as the 19th Administrator of USAID on May 3, 2021. “In leading the world’s premier international development agency and its global staff of over 10,000 people, Power will focus on helping the US respond to four interconnected challenges: the Covid-19 pandemic and the development gains it has imperiled; climate change; conflict and humanitarian crises; and democratic backsliding,” the US Embassy press note reads.

MCA-Nepal calls for bids to construct 400 kV transmission lines

Millennium Challenge Account Nepal (MCA-N) – the implementing agency of Millennium Challenge Corporation (MCC) of the US published a global tender today to construct 315-km long transmission lines. The US government-funded MCA-N – issuing a public notice today – called for bids to construct the infrastructure.

According to the notice, the MCA-N has divided the total construction into three sections. “A 400 kV transmission line will be constructed along Lapsiphedi-Ratamate-New Hetauda stretch measuring 117-km,” the notice reads, adding that a 90-km long 400 kV transmission line in Ratamate-Damauli and New Damauli-New Butwal segment will also be expedited under the project. “The MCA-N has set a deadline of March 27, 2023 to apply for the contract.”  

The MCC Compact, which was approved by the Parliament after a huge controversy, has provided Nepal a grant of $500 million to construct high-powered transmission lines and to upscale the highways. The government will be investing $130 million from its side in the five-year long projects under the MCC Compact.

The Millennium Challenge Corporation (MCC) is a bilateral US foreign aid agency established by the US Congress in 2004. It is an independent agency separate from the State Department and USAID. The government signed the MCC grant in 2017 after determining its goals to modernise Nepal's energy and transportation sectors with the hope of helping nearly 80 per cent of the total population. Though, signed in 2017, it took the parliament five years to ratified MCC compact as the compact was ratified on February 27, 2022, with a majority with certain interpretive declaration through understanding between all national parties, due to huge opposition from several quarters of the society.

The MCC-Nepal Compact that aims to increase the availability and reliability of electricity, maintain road quality, and facilitate regional trade– helping to spur investments, accelerate economic growth, and reduce poverty, is a five-year term fixed project, once it starts its work.

US provides additional support for urgent COVID-19 assistance in Nepal

United States ambassador to Nepal Randy W Berry, along with United States Agency for International Development (USAID) Nepal Mission director Sepideh Keyvanshad, donated two liquid oxygen tanks to Bir Hospital and Paropakar Maternity Hospital in Kathmandu yesterday.

These liquid oxygen systems are joined to the central oxygen system of the hospitals, and will provide uninterrupted supply of oxygen, or refill around 40 cylinders of 40L capacity in an hour, according to a press note issued by the US Embassy in Kathmandu. "Four more liquid oxygen tanks are being installed at hospitals across the country with USAID’s support."

The US also announced today to provide an additional $10.5 million in urgent Covid-19 assistance for Nepal through USAID. "The additional funding assistance will strengthen surveillance and contact tracing in municipalities, support laboratory systems, and expand antigen testing at border crossings," the press note reads, adding that the funding will also help the Ministry of Health and Population develop protocols and guidelines on Covid-19 management, train and recruit healthcare workers to increase surge capacity, and strengthen critical care.

The US Embassy said the USAID also helps Covid-19 patients in isolation facilities and in their homes through telemedicine, ensures continuity of crucial health and rehabilitation services for people with disabilities, and equips local-level health facilities with other needed services by working with its partners.

The small hand-over ceremony included the Covid-19 Unified Central Hospital’s (Bir Hospital) chief executive officer Dr Bhupendra Basnet, and Paropakar Maternity and Women’s Hospital’s director Dr Sangita Mishra.

The additional US assistance builds on more than $90 million in Covid-19 support from the United States government to Nepal that has reached over 60 per cent of the population since the pandemic started. The assistance includes $75 million from USAID in technical and commodity support such as oxygen cylinders, breathing devices, ventilators, and personal protective equipment, the press note further reads.

USAID’s support in the health sector reflects one of the longest standing and one of the most successful development assistance programmes in Nepal.  In the last 20 years alone, USAID has invested over $600 million to improve the quality of health services in Nepal, and has helped reduce maternal deaths, infant mortalities and eradicate malaria.

The US is partnering with Nepal to end the Covid-19 pandemic, mitigate its devastating social and economic effects, and build back a better world that is prepared to effectively respond to future outbreaks," the press note adds.

Nepal receives medical support from US

In response to the request of the Government in the context of the recent surge in Covid-19 cases, the United States of America has sent a cargo aircraft containing important medical supplies.

The support materials – first of the three chartered aircraft arriving within the next two days – were received by the spokesperson for the Ministry of Health and Population (MoHP), Dr Jageshwar Gautam from the officials of the Embassy of the USA and the United States Agency for International Development (USAID) in Kathmandu on Saturday.

The medical support includes surgical masks, face shields, and gloves, according to a press note issued by the USAID. "This is in addition to the earlier support received from USAID including 100 units of ventilators, Covid-19 testing facilities and equipment, oxygen-related materials, personal protection equipment (PPEs) and other lifesaving medical supplies."

The USAID claimed that it is scheduled to hand over 1,000 oxygen cylinders to the Ministry of Health and Population tomorrow. "The much-needed medical support has been instrumental in saving lives and complementing the national initiatives for treatment, prevention and control of Covid-19."

The government expressed gratitude to the US government and people  for the solidarity they extended to the people of Nepal, reflecting the longstanding bilateral relations marked by friendship and cooperation. "The effort made by the US Embassy and USAID in Kathmandu for the timely delivery of the support materials has been acknowledged with appreciation,” reads the press note.

Nepal and development partners collaborate for green recovery from the pandemic

 The government and a dozen development partners today agreed on a joint statement of support for Nepal’s Relief, Recovery and Resilience (RRR) Plan to enable a green, resilient and sustainable recovery from the Covid-19 pandemic. The green recovery approach recognises the need for investment to protect lives and secure jobs and livelihoods as an immediate priority, and the need to build resilience, further strengthen inclusion, equity, and enhance sustainability in the longer term, according to a press note issued by the World Bank. “Around a dozen development partners including ADB, EU, Finland, France, Germany, INGOs, JICA, KOICA, Norway SDC, UK, UN, USAID, and the World Bank issued a joint statement.”

“The Government of Nepal welcomes this joint development partner approach to support green recovery from the Covid-19 pandemic that is well aligned with Nepal’s 15th development plan,” joint secretary at the Ministry of Forests and Environment Radha Wagle said, adding that it is also very timely as the Prime Minister will be announcing Nepal’s climate ambition at the Global COP 26 Ambition Summit.

“Nepal’s development partners wish to align their support for Nepal’s green recovery from the Covid-19 pandemic to create jobs, stimulate inclusive growth and get Nepal back on track to achieve middle income status by 2030,” World Bank country director for Maldives, Nepal and Sri Lanka Faris Hadad-Zervos.

“Nepal’s development partners are ready to support local, provincial and federal governments to stimulate a green recovery that benefits all,” German ambassador to Nepal Roland Schaefer said, on the occasion.

“As holders of the UN Climate Presidency and hosts for the Climate COP 26 next year, the UK is greatly impressed by Nepal’s climate leadership and ambition in its recently approved NDC,” UK Government Asia Climate Envoy Lisa Honan said, adding that it is only by working together that everyone can tackle the Covid-19 and climate crises and build resilience, create sustainable jobs and stimulate the green growth that Nepal needs to bounce back greener.

The government and development partners have also agreed to work together on a joint green recovery package, which could total an estimated $7.4 billion, and includes both grant and loan support for the initial response to Covid-19, and already approved, pipeline and forthcoming projects that support green recovery. Initial estimates of the scale of development partner support in the five areas identified are:

• Up to $840 million for immediate Covid-19 needs including direct health care and vaccine access, and support for livelihoods and vulnerable groups; and

• Up to $4.2 billion from restructuring existing and confirmed projects and up to $2.4 billion for new and pipeline projects for supporting green recovery in the four areas of:

• Nature-based solutions for growth and job creation in agriculture, forestry and biodiversity and water management, and tackling the impacts of climate change in the Himalayas;

• Green and resilient infrastructure, urban development and pollution management, that together create jobs and protect human health; 

• Increasing resilience to future shocks such as health, climate and earthquake risks, by strengthening health, social protection, education and disaster management systems; and

• Stimulating private sector recovery, and increasing green investment and job creation in finance, tourism, clean energy, waste management, forestry and agriculture.

US to increase investment in Indo-Pacific region

 The United States (US) is increasing investment in the Indo-Pacific region.

Concluding the Indo-Pacific Business Forum 2020 in Vietnam today, the US has announced the plans to increase investment for the economic development of the Indo-Pacific country, which has more than 60 per cent of the population and is growing in emerging economies, according to a press note issued by the Indo-Pacific Business Forum 2020.

At the event, US government and private sector representatives noted the need to increase investment in energy, information technology and healthcare for the economic development of Asian countries. In November 2017, US President Ronald Trump unveiled the US concept of an independent and open Indo-Pacific, the press note reads, adding, “Since the first Business Forum was held in July 2018, the US has been increasing its investment.”

The forum held in Bangkok in 2019 focused on digital economy, quality infrastructure and sustainable energy development for economic development. The 2020 forum focuses on the Indo-Pacific region’s digital infrastructure, energy, and transportation strategy for 2021.

Speaking at the forum, secretary of State Michael Pempoi said the US has invested more than $100 billion in the Indo-Pacific region in partnership with the private sector, energy, infrastructure, telecommunications and poverty alleviation. The US has invested in 59 projects worth 85 billion for energy security alone and is increasing his investment for the development of the region’s economy, he added.

“President Trump has placed special emphasis on increasing investment and partnership in the Indo-Pacific region, noting that the US has always stood for good governance, transparency, independent business and technological innovation,” the press note reads,

Vietnam’s deputy prime minister Pham Winh, on the occasion, said that Vietnam has created a conducive environment for investment and welcomes US investment. 

At the forum, the US Agency for International Development (USAID) announced an additional 28 million in investment in the Indo-Pacific region. The US announced the investment through the Asia Enhancing Development and Growth Through Energy (Asia EDGE) campaign.

Likewise, the United States Trade and Development Agency (USTDA) – during the forum – said that it will launch various projects to increase investment in energy, information technology, healthcare, and transportation. The USTDA promote natural gas infrastructure development in the energy sector, 5G solutions in information technology, public health campaigns under health care, and Southeast Asia Aviation Partnership in the transport sector, it said.

According to USTDA chief operating officer and head of the agency Todd Abrajane, the USTAD will increase investment in a variety of projects, focusing on sustainable infrastructure and economic growth.

World Bank $10.85 million additional grant to support learning and build resilient education sector

 Nepal and the World Bank today signed a financing agreement for an additional grant of $10.85 million to the School Sector Development Programme (SSDP) to maintain access to basic education and continued learning for children amid the Covid-19 crisis.

The government’s SSDP is a sector-wide program supported by IDA credit of $185 million, together with support from Asian Development Bank (ADB), European Union (EU), Finland, Global Partnership for Education (GPE), Japan International Cooperation Agency (JICA), Norway, USAID, UNICEF and REACH Multi-Donor Trust Fund administered by the World Bank. The programme aims at improving the quality, equitable access, and efficiency of basic and secondary education in Nepal.

The additional grant from the GPE Covid-19 Accelerated Funds will contribute to the implementation of the Ministry of Education, Science and Technology’s Covid-19 contingency plan to mitigate and respond to the potential impacts of the pandemic on the education sector.

The agreement was signed by the Joint Secretary at the Finance Ministry Shreekrishna Nepal on behalf of the government of Nepal and by the World Bank country director for Maldives, Nepal and Sri Lanka, Faris Hadad-Zervos.

“We are thankful to the World Bank and GPE for the additional grant that will help mitigate learning loss for children due to the impact of Covid-19,” Nepal said, adding that the grant provides much needed support to the government to respond to the impacts of the pandemic to enable continuity of learning during school closures, enable schools to safely resume and mitigate the impacts on students and teachers, including loss of learning time and psychosocial impacts.

The additional grant will finance activities to support remote learning programmes through television, radio and the learning portal as well as printed learning packs for children who do not have access to media or internet. The grant will support communication campaigns and teacher professional development programmes and help strengthen the Education Management Information Systems. The grant will also support provincial and local governments to support safe reopening of schools and continued learning of children.

“The education sector in Nepal and across the world has been one of the hardest hit owing to the pandemic which has deeply affected learning outcomes for children”,  World Bank country director for Maldives, Nepal and Sri Lanka Faris Hadad-Zervos, said after signing ceremony. “While supporting the immediate needs for safeguarding access and learning for children, especially girls, the additional grant will support the broader resilient recovery efforts of the government and help build back better the education sector in Nepal.”

15th Asia Clean Energy Forum to focus on role of clean energy in post-Covid 19 recovery and resilience

Greater investment in clean energy infrastructure will contribute to Asia and the Pacific’s recovery from the coronavirus disease (Covid-19) pandemic and make economies more resilient against future shocks, participants at the Asia Clean Energy Forum (ACEF) 2020 heard today.
“It is clear that the Covid-19 crisis has made tackling climate change and other development issues an even bigger challenge,” said Asian Development Bank (ADB) president Masatsugu Asakawa in his opening remarks. “However, the situation offers opportunities and we must now seize the chance to rebuild smartly,” he said, adding that as the region’s leading clean energy event, ACEF is the ideal forum to discuss these opportunities and ensure that clean energy plays a core role in helping Asia and the Pacific emerge stronger than before.
Co-hosted by ADB, the United States Agency for International Development (USAID), and the Korea Energy Agency (KEA), ACEF takes place from June 15 to 19 welcoming more than 4,000 delegates to the online-only event, including policymakers, energy specialists, private sector participants, and members of civil society organizations from around the world.
On its 15th anniversary, ACEF is being held as a virtual, livestreamed-only event in response to the Covid-19 pandemic and to ensure energy efficiency. Registered delegates can access all 28 sessions and side events, participate in panel Q&As, and network with other participants through a dedicated web app and state-of-the-art technology. This format ensures participants’ health and safety and reduces the costs and greenhouse gas emissions associated with holding a physical event.
This year’s theme, Vision 20/20: Cross-sectoral Innovations for a Sustainable Future, explores the roadmap for achieving countries’ energy-related nationally determined contributions under the Paris Agreement; innovations at the nexus of energy, transport, and urban development; and building energy sector resilience, particularly in fragile and small island countries.
ADB vice-president for Knowledge Management and Sustainable Development Bambang Susantono welcomed participants to the event and highlighted the forum’s emphasis on energy challenges in Asia and the Pacific amid the Covid-19 pandemic. In his keynote address, International Energy Agency (IEA) executive director Fatih Birol stressed the importance of addressing climate change and air pollution in the recovery. A panel discussion, including Sri Lanka’s permanent secretary of Ministry of Power and Energy Wasantha Perera and International Solar Alliance director general Upendra Tripathy, explored the prospects for development finance and capacity building in the region.
ACEF 2020 will launch a new innovation challenge: Digitising Waste Collection through Handling, Tracking, and Recycling to Disposal. Proposals are invited for digital solutions to improve waste management, reduce the amount of material sent to landfills, and increase sustainability in order to create more resilient communities.
ADB invested more than $23 billion in clean energy from 2008 to 2019. Last year, ADB’s climate financing reached a record $6.56 billion, meeting its target of doubling its annual climate investments from 2014 one year ahead of schedule. Under Strategy 2030, ADB is targeting $80 billion in cumulative climate financing from its own resources by 2030 and for at least 75 per cent of its country operations to feature climate adaptation and mitigation initiatives.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members, 49 from the region.

Government and development partners take stock of SSDP amid Covid-19 impacts

The Budget Review Mission (BRM) of the government’s flagship School Sector Development Programme (SSDP) was completed yesterday under the leadership of the Ministry of Education, Science and Technology (MoEST) with joint financing and non-joint financing partners including World Bank, USAID, ADB, Finland, Norway, European Union, JICA, Global Partnership for Education, REACH MDTF and UNICEF, and other stakeholders.
The review assessed progress and achievements of the plan’s fourth year of implementation, annual work plan and budget and allocation of resources for the final year, together with an assessment of the impact of Covid-19 on the SSDP, according to a press note issued by the World Bank (WB).
Prior to the budget review, virtual consultation and information sharing sessions were organised with the provincial and local government leaders, Teachers Union, Association of INGOs, Consortium of Civil Society Organisations and other stakeholders.
“We are looking at new modalities and approaches that ensure children continue to learn and at the same time ensure their wellbeing,” said secretary at the Ministry of Education, Science and Technology Dr Sanjay Sharma. “We expect that education will be a priority sector in the upcoming budget given the Covid-19 pandemic and will look at means to expedite programmes and coordinate amongst all levels of government and stakeholders on a national framework that guides safe reopening of schools.”
The review appreciated MoEST’s continued effort to pursue and achieve education objectives under the SSDP, implementing reforms to improve access and the quality of education, and some of the immediate responses to the impact of Covid-19 on the education sector including a scenario based contingency plan to respond to immediate impacts and the initiation of remote teaching-learning programs to ensure that children can continue learning while the schools remain closed.
At the same time, it is expected that the shocks to education from the Covid-19 pandemic could lead to increased dropout rates, learning loss and heighten the inequality with the most vulnerable students disproportionately bearing the impact of the shock.
“The Covid-19 pandemic threatens to reverse the progress made to date on Nepal’s education outcomes impacting children and young people, especially the poor and vulnerable,” said World Bank country manager for Nepal Faris Hadad-Zervos. “It is critical to counter these impacts through appropriate policy responses and turn this crisis into an opportunity to build back better.”
“Given the latest development on Covid-19 in Nepal, we will likely see impacts in the education sector for a long time,” USAID acting mission director Adriana Hayes, on the occasion, said, adding that schools will reopen in phases over time. “Similar to many countries globally, it is likely that we will see the need to periodically close schools to protect the health of the population.”
She also urged the ministry to ensure that the fiscal year's education budget and work plan incorporate the activities identified in the Education Cluster Contingency plan so that local governments can receive funds and continue to provide access to education during this unprecedented crisis.
The BRM recommended a set of agreed actions to expedite SSDP implementation in the final year under the broader purview of the immediate, medium and long term impacts of the Covid-19 pandemic on the education sector in Nepal.

Substantial contribution of reconstruction in economy

Reconstruction has increased 4.5 percentage point contribution to GDP, according to a study.
According to a preliminary report ‘Impact of Post-Earthquake Reconstruction on Nepalese Economy’, jointly prepared by the National Reconstruction Authority (NRA) and the Society of Economic Journalists Nepal (Sejon), public and private spending on post-earthquake reconstruction helped increase 4.5 percentage points to the economic growth rate.
It means the casual impact of reconstruction ‘contributed’ 7x0.045 = 0.32 per cent growth in annual GDP, assuming 7 per cent annual GDP growth rate.
The report – supported by the National Democratic Institute for International Affairs (NDIIA) and the United States Agency for International Development (USAID) – also claimed that the reconstruction activities in the aftermath of the 2015 devastating earthquakes also generated 1.42 million jobs.
Economist and lead author Nirmal Kumar Raut, while presenting the report today, said that around 550,000 people were engaged in reconstruction work in the current fiscal year alone. “The study also reveals that housing reconstruction alone created jobs equal to 255 million man days which is equivalent to 1.42 million people being employed by the end of fiscal 2017-18. “Currently, some 0.55 million people are working in reconstruction of houses with jobs equal to 100 million work days being created indicating that the construction industry has been the largest employer in recent periods.”
Roughly speaking, about 7 per cent of the total employment in 2017-18 was created from the reconstruction of destroyed, damaged infrastructure alone, according to the report. “This is also a lower bound estimate of the total employment in the reconstruction work because this calculation is based only on a basic structure of house proposed among others and also this excludes the employment in the reconstruction of public infrastructure.”
Nepal was struck by two devastating earthquakes of magnitudes 7.8 and 7.3 on April 25 and May 12, respectively, killing some 8,790 people and injuring 22,300. The economic loss was estimated at $7 billion, out of which 76 per cent was in the private sector. The economic growth rate plunged to 2.97 per cent in the fiscal year 2014-15 – following the disaster – decelerated further to a record low of 0.2 per cent in the fiscal year 2015-16.
After the devastating earthquake, lots of reconstruction activities picked up creating employment and helping economic activities to push the economic growth. The Nepali economy grew by 7.74 per cent in the fiscal year 2016-17, the highest growth rate since the fiscal year 1993-94. Likewise, in the fiscal year 2017-18, the economy grew by 6.3 per cent, according to the Central Bureau of Statistics (CBS).
The report also claims that reconstruction work alone contributed most to the economic growth rate.
The report used two different approaches – one contribution of the construction industry to the GDP and second econometric model – to analyse.
The first inference was drawn from the contribution of the construction industry to the GDP vis-à-vis other major industries before and after the earthquake, Raut said, adding that the second inference was made by exploiting an econometric model. “An econometric model is one of the tools economists use to forecast developments in the economy.”
The econometric model also measures past relationships among such variables as consumer spending, household income, and employment, among others, and then forecasts how changes in some variables will affect future development, though some of the economists do not buy the result of the report.
“An average 4.5 per cent growth contribution by the reconstruction drive alone is not possible,” a former member of the National Planning Commission (NPC) Govinda Nepal said, adding that there are no substantial bases to claim that reconstruction activities fuelled a growth of 4.5 per cent, even though it has contributed significantly to revitalising the economy.
Nepal also said there is a need to conduct a comprehensive study on how reconstruction activities contributed to the economy before making such a large claim.
The government – in the fiscal year 2015-16 – spent Rs 21 billion on reconstruction, and in the next fiscal year 2016-17 – it spent Rs 27 billion. But in the past four fiscal year years, the government spent a total of Rs 450 billion – with most of the spending taking place in the last two fiscal year – which gives ample ground to conclude that the 4.5 per cent contribution – from fiscal year 2015-16 to fiscal 2017-18 – to the economy by the reconstruction drive is just not possible, Nepal added.
However, the outcome is construed as a lower bound estimate of the effects of reconstruction on economic growth owing to the limitations in the availability of data of other major variables and confounding effects of the 2015 blockade, natural shocks and other concurring adversities such as border blockade, the report explains. “Of the four major sectors--agriculture, manufacturing, whole and retails and construction, the share of only the construction sector in the economy expanded while share of other three sectors decreased.”
Chief executive officer (CEO) of the National Reconstruction Authority (NRA) Sushil Gyewali, on the occasion, said that the employment generated by the reconstruction drive looks realistic though there is a need for more research to find out the actual contribution of reconstruction activities to the economy. “Whatever growth there was did not just come from the government’s investment only,” he said, adding that the government invested only Rs 150 billion in the housing sector and the private sector poured in Rs 600 billion to build homes. “As Nepal’s reconstruction used local materials and resources, most of the money did not go outside the country supporting the grassroots level the most.”
Reconstruction also imparted skills to many Nepalis, mostly benefitting women, and increased financial inclusion with about 770,000 new bank accounts opened, some 30 per cent by women, the report reads, adding that – according to the NRA data – as many as 482,323 beneficiaries, out of the total 816,560, have rebuilt their houses. “As many as 56,382 beneficiaries have received construction completion certificates.”
A total of 769,926 households have received the first tranche of the government grant with 621,449 beneficiaries receiving the second tranche too, the NRA data reveals, adding that a total of 525,233 have received the third installment of government assistance. “The government provides Rs 300,000 for homeowners, whose homes were completely damaged and have no other home.”
The reconstruction of some 5,063 public schools, some 25,128 school rooms, some 665 health institutes, some 380 archaeological sites, some 311 government buildings and some 165 buildings of security agencies has also been over, according to the NRA.

USAID to continue support to Nepal

USAID assistant administrator of the Bureau of Asia Gloria D Steele paid courtesy call with the finance minister Dr Yuba Raj Khatiwada today.
Khatiwada welcoming Steel thanked USAID for decades long support in various areas of Nepal's development. He also expected continuation of USAID as a long standing partner for the development efforts of Nepal.
On the occasion, Steele assured finance minister for USAID's continued support to Nepal’s socio-economic transformation along with implementation of federalism. She also mentioned USAID’s readiness to support capacity building efforts of the government particularly at the provincial and local levels together with other development partners.
Khatiwada recalled USAID’s assistance in policy reform right from 1990’s which were a transformative one. He also highlighted that Nepal has focused on credible budget system along with accountability, transparency in Public Financial Management (PFM) at all levels of the government.
In addition, he pointed out that importance of effective revenue mobilisation avoiding multiple and double taxation so as to reduce the cost of doing business as components of PFM.
Steele appreciated the Nepal’s success in implementing fiscal federalism and expected further steps to consolidate the reforms taken so far.
During the meeting, the ambassador of United State of America to Nepal Randy Berry highlighted the importance of partnership in the development efforts of Nepal.
Steele also wished that Nepal’s transition would move faster to get optimum development results.

Development partners promise to help 2015-earthquake reconstruction

The development partners – during a meeting of National Reconstruction Authority (NRA)’s Foreign Aid Coordination and Facilitation Committee today – have expressed their will to extend support to the revised programmes and financial plan for the five-year plan for post-disaster reconstruction and rehabilitation that costs Rs 630 billion.
Showing their readiness to support Nepal in post-disaster reconstruction and rehabilitation efforts in the meeting with NRA, they also appreciated the progress in reconstruction.
Acting Country Manager of the World Bank Kene Ezemenari appreciated the progress in reconstruction, whereas head of Cooperation at the European Union (EU) delegation to Nepal Ovidiu Mic said that the EU would continue to provide support to Nepal in reconstruction.
Deputy Chief of Mission at the Embassy of India in Kathmandu Dr Ajaya Kumar, on the occasion, said that India is working to provide the support it committed in the past. Likewise, representative from the Embassy of China in Kathmandu expressed Chinese commitment for necessary support in the future. Likewise, the Department for International Development (UK), USAID, Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA) also showed their readiness in helping Nepal in the post-quake reconstruction and rehabilitation.
According to NRA’s new estimation, the total reconstruction cost for the properties damaged by the devastating earthquake in 2015 stands at Rs 630 billion about Rs 308 billion less than the primary estimates made in the immediate aftermath of the quake. “Rs 630 billion is the budget that is implemented by the NRA alone,” according to NRA chief executive officer (CEO) Sushil Gyawali.
The reconstruction authority – in consultation with the Finance Ministry in 2016 – had published the revised estimates of the total reconstruction cost at Rs 938 billion, which the NRA has revised downwards.
Gyawali, on the occasion, said that the new estimates were made after reducing the budget of the infrastructure like water supply, roads and bridges that would be built by the government and reconstruction of private houses and other structures by the national and international Non-Government Organisations (NGOs).
The NRA statistics revealed that about Rs 291 billion will be spent by the end of the current fiscal year 2018-19. Finance Minister Dr Yuba Raj Khatiwada has allocated Rs 141 billion budget for reconstruction related works for the next fiscal. “There is a financial gap in reconstruction and rehabilitation,” Gyawali said, adding that the NRA is, in consultation with the Finance Ministry and development partners, in an effort to arrange funds.
The NRA had urged the development partners to extend additional support in implementing economic and livelihood programmes, localizing the disaster management work, and rebuilding of heritage settlement and urban structure.
The meeting has emphasised amending the National Building Code and implementing it to the local levels.
Nepal, meanwhile, is holding an international conference to impart the knowledge, experience and learning it earned during the post-quake reconstruction and rehabilitation to the international community. 

USAID, DIFID join hands to combat human trafficking

Development agencies of the United States and the United Kingdom today announced a partnership to support the Nepal in combating human trafficking.
Partnership between the United States Agency for International Development (USAID) and the United Kingdom’s Department for International Development (DFID) will expand USAID’s ongoing ‘Hamro Samman Project’ to support the government’s efforts to combat human trafficking in 10 districts.
“For over a decade, USAID’s support has enabled Nepal to strengthen its 49 policies to prevent human trafficking, prosecute traffickers and protect and rehabilitate survivors,” USAID Nepal Mission director Amy Tohill-Stull said speaking at the signing ceremony. “We are pleased that DFID has joined our partnership,” he said, adding that the joint collaboration will enable us to expand our efforts to address this serious issue.
Likewise, head of DFID in Nepal Rurik Marsden, on the occasion, said that the UK is committed to working with the Government of Nepal to help end modern slavery in Nepal. “We are happy to join hands with USAID in this mission,” he said, adding that DFID’s contribution will help strengthen government mechanism to address human trafficking and generate better plans to curtail the crime.
The US Government’s Trafficking in Person Report-2018, ranks Nepal as a tier two country and identifies it as a source, transit and destination country for human trafficking. While this report estimates that 30,000 Nepali girls and women are commercially exploited for sex each year, Global Slavery Index 2018 estimates that 171,000 Nepalis are subject to slavery at any given time, according to a press release issued by the US embassy in Kathmandu.
Despite these challenges, Hamro Samman, which was initiated in 2017 and is implemented by Winrock International, has made substantial strides in reducing human trafficking in Nepal, the release reads, adding that over the project’s remaining three years, the partnership with DFID will add to Hamro Samman’s past success in combining human trafficking.

PM hands over ADB-supported earthquake resistant model school to community

Prime Minister KP Sharma Oli today handed over the newly reconstructed Sanjiwani Secondary School in Dhulikhel to the community at a ceremony.
The Asian Development Bank (ADB) is supporting the reconstruction of 154 such schools badly damaged by the 2015 earthquake under the Earthquake Emergency Assistance Project.
“A better reconstruction process can strengthen a country’s resilience to natural disasters. Reconstruction offered us an opportunity to build back better and all the schools reconstructed after the earthquake with ADB support follow better standards, building norms, and amenities,” said ADB country director for Nepal Mukhtor Khamudkhanov. "The schools are not only safe and earthquake resistant, but also have better facilities," he said, adding that a safe and nurturing learning environment goes a long way in helping children develop their full potential.
Sanjiwani Secondary School is one of the 9 model schools reconstructed under the project. Besides 32 new classrooms, the school has a 12-room hostel for out-of-town students. To enhance science education, the school has been provided with ICT and science laboratories equipment. The model school concept is a new initiative under the government’s School Sector Development Programme, which aims to improve the quality of education in Nepal.
At the same event, two district roads in Kavre and Bhaktapur rehabilitated under the project were handed over to the provincial government in the presence of the communication minister Gokul Baskota and the chief executive officer of the National Reconstruction Authority (NRA) Sushil Gyewali.
ADB is supporting the government’s efforts to put thousands of children back into schools, return vital government services to earthquake-affected communities, and create jobs and income for families by repairing critical road networks. A total of 162 schools, including 17 schools funded by USAID and 8 schools funded by the Japan Fund for Poverty Reduction (JFPR), are nearing completion with 90 schools already substantially completed under the project. ADB is also supporting reconstruction of 174 schools under the Disaster Resilience of Schools Project. ADB is supporting schools to prepare their own school disaster risk management plans. ADB support to Nepal reconstruction totals $382 million.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. In 2018, it made commitments of new loans and grants amounting to $21.6 billion. Established in 1966, it is owned by 68 members, 49 from the region.

Training on earthquake hazard assessment and aftershock forecasting

A training on 'Earthquake Hazard Assessment and Aftershock Forecasting' has begun – in Kathmandu – with the objectives to enhance the understanding on earthquake monitoring, seismological studies, data generation, and hazard evaluation,
The training has been jointly organised by Department of Mines and Geology (DMG), United States Geological Survey (USGS), National Society for Earthquake Technology-Nepal (NSET) and Earthquake Safety Solutions (ESS) with the support from Office of US Foreign Disaster Assistance (USAID/OFDA).
Addressing the inaugural session, Prof Dr Prem Nath Maskey from Institute of Engineering (IOE) acknowledged the importance of this endeavor. "While talking about the disaster risk, hazard becomes a more important component," he said, adding that with that sense, it’s very much pertinent to conduct training on earthquake hazard assessment and also on topic of aftershock forecasting, which is new idea for Nepal. "We are not only conducting training for new generation, but we are also going to learn new ideas and approaches."
From the chair, director general of DMG Dr Soma Nath Sapkota stressed on how important it is to have right policies for right purpose. "The deliberations from this training are to serve for better policies and ultimately serve our people," he said, adding that all scientists should be committed to make better policies and contribute to the people.
Likewise, earthquake expert Dr Amod Mani Dixit talked about recent Feta tornado and Gorkha Earthquake. "Feta Tornado has asked challenging question to scientists," he said, reminding the 2015 Gorkha earthquake.
Seismologist Dr Susan Hough from USGS, on the occasion, mentioned about ongoing collaboration that is helping work together for building better knowledge and understanding on seismic issues. "The 2015 Gorkha Earthquake was a great tragedy and also an impetus for actions not only to address reconstruction needs but also for hazard assessment, building code implementation, seismic monitoring and range of activities," she said appreciating Nepal’s efforts in the areas of seismic science and hazards assessment during past 15 years, and wished from USGS side to continue collaborating with Nepal Government, NSET and partners.
On the occasion, executive director to NSET Surya Narayan Shrestha highlighted the objectives of training that was conducted to enhance understanding on what is going on in our country, in terms of earthquake monitoring, in terms of seismological studies and also in terms of data generation and hazard evaluation, to familiarise with new idea, new concepts, new methodologies, tools, techniques such as on aftershock forecasting and to go one step ahead in enhancing collaboration – among Nepali professionals and experts from USGS and other agencies.
After the 2015 Gorkha Earthquake and subsequent aftershocks, earthquake phenomena have been much discoursed in public, academic and scientific communities in Nepal. There is a felt need of building better scientific understanding and enhanced civic education on seismic phenomena in Nepal.

US Mission helps to promote responsible recruitment

The US Mission is helping government to foster strong partnerships to promote ethical and fair recruitment practices in the foreign employment process for Nepalis.
"The US government – through US Agency for International Development (USAID) and other partners – stands committed to support Nepal's leadership in finding those win-win solutions that serve everyone, the government, the private sector, and the Nepali people," said newly arrived US ambassador to Nepal Randy W Berry, speaking at the programme – jointly hosted by the USAID and the National Business Initiative (NBI) – here today.
"Collectively, I’m confident that we can make ethical recruitment happen and, in turn, protect and promote the socio-economic wellbeing of the people and businesses in Nepal," he added.
Addressing the programme that saw key representatives from the government, private sector, civil society, development organisations, labour minister Gokarna Bista, highlighted the government’s priorities and plans and reiterated his commitment to ensuring good governance and oversight of foreign recruitment practices.
President of NBI Padma Jyoti, on the occasion, also underscored the need to institutionalise responsible and ethical recruitment processes in Nepal. 
Migration contributes to an equal to nearly 25 per cent of gross domestic product (GDP). If face, over half of all Nepali households have at least one migrant family member abroad or living in Nepal as a returnee.
 USAID’s Hamro Samman Project – implemented by Winrock International – builds upon more than two decades of US government support to counter human trafficking in Nepal.  The project’s goal is to reduce the prevalence of trafficking in persons by strengthening existing government, civil society, and private sector policies and systems.
Hamro Samman is forging partnerships with private sector actors to promote ethical recruitment and encourage zero tolerance for exploitation in accordance with national laws and policies, specifically, to counter trafficking and exploitation in foreign labor migration.

NRA to take initiative to bridge budget gap

The National Reconstruction Authority (NRA) is seeking to bridge the budget gap after three years.
According to Chief Executive Officer (CEO) of NRA Sushil Gyewali,  the authority would take initiatives at the national and international level to manage resources to meet the financial requirement to complete the post-earthquake reconstruction.
"The NRA will bridge the financial gap by coordinating with the government and the development partners," Gyewali said, while addressing the eighth meeting of the Development Assistance Coordination and Facilitation Committee (DACFC), the body to coordinate between the government and the development partners to oversee the international contribution in the reconstruction. Representatives of about 25 development partners and international development partners attended today’s meeting.
Gyewali informed the meeting that about Rs 600 billion more is required to complete the overall reconstruction work.
The cost of the five-year reconstruction work had earlier been estimated at Rs 938 billion. The total budgetary expenditure and the projected expenditure this fiscal year would come to around Rs 336 billion.
He, however, said that the actual monetary requirement would be confirmed after the review in the five-year reconstruction plan.
He also said that the NRA would try to acquire the amount pledged by the development partners during the international donors’ conference held soon after the April 2015 earthquake. The development agencies had pledged Rs 410 billion and – out of Rs 343 billion allocated for the reconstruction – the agreements have been signed for Rs 262 billion till now, after spending Rs. 67 billion in relief and rescue work.
Highlighting the progress on the overall reconstruction till date, CEO Gyewali also informed the development partners that the NRA is set to review the Post-Disaster Recovery Framework, prepared after the detailed damage assessment survey in 2016, as the post-earthquake reconstruction reaches a mid-way. The NRA, with the support from the development partners, had published the PDRF 2016-2020 to implement the post-quake reconstruction work in a systematic and structured manner.
“As we are half-way through our tenure, this is the right time to review and (re)design the future priorities,” Gyewali said, adding that it would be done by learning from the experiences till now and best practices we have.
He also informed about the recent decision of the NRA Steering Committee to hand over the responsibility of reconstruction to the local governments and the recent cabinet decision to provide Rs 300,000 loan in a subsidised interest rate.
The representatives of the development partners praised the NRA’s work on private housing reconstruction in the villages and stress the need to focus more on the marginalised groups, who have not been able to rebuild their houses.
They basically raised issues concerning retrofitting of damaged houses, monitoring and evaluation of constructed houses, availability of engineers at the community level, reconstruction of houses for vulnerable groups, third-party monitoring and the capability of the local governments to implement the recent government decision to hand them over the responsibility.
The representatives from the World Bank (WB), the United Nations (UN), the European Union (EU), Japan International Cooperation Agency (JICA), the United States Agency for International Development (USAID), the UK Aid, the Swiss Agency for Development Cooperation and various other international organisations attended the meeting.

Fact Sheet
• Out of about 800,000 household beneficiaries, more than 90 per cent have received first tranche, 62 per cent second tranche, 32 per cent third tranche and 36 per cent completed their houses.
• Out of about 100,000 household beneficiaries in the Kathmandu Valley, about 93 per cent received first tranche, 30 per cent second tranche and 20 per cent received third tranche
• Out of about 7,500 schools, about 3,800 have been completed and 2,700 are presently under reconstruction
• Out of about 1,200 health institutions, 650 have been completed and 150 are presently under reconstruction
• Out of 753 historic monuments (in 14 districts), 185 have been completed and 310 are presently under reconstruction

PM inaugurates ‘Gaddi Baithak’ post reconstruction

Prime Minister KP Sharma Oli today inaugurated the historic Gaddi Baithak post reconstruction.
The historic building located at the heart of Basantapur Durbar Square was destroyed by the devastating earthquake of April 2015.
On the occasion of the inaugural ceremony of the renovated Gaddi Baithak the premier recalled the devastating earthquake that florred many historic sites apart from residential buildings, health posts, police posts and schools. "It also caused huge losses of lives," the prime minister said, thanking the US Embassy in Kathmandu for financially supporting the restoration of infrastructure.
The government is committed to maintaining the standard in reconstruction of quake-damaged structures, he said, adding that the country has entered into a new era with the promulgation of constitution through Constituent Assembly.
The historic Gaddi Baithak – dating back to the Rana regime – stands as a tribute to the European architectural style. It was retrofitted and renovated under the partnership of Miyamoto Global Disaster Relief and Nepal Government’s Department of Archaeology. The US Ambassadors Fund for Cultural Preservation (AFCP) has funded $700,000 for the reconstruction.
US Charge d’ Affaires Peter Malnak, On the occasion, said that the collaborative effort between Nepali and American cultural heritage experts has presented an opportunity to restore and seismically strengthen Gaddi Baithak.
"Gaddi Baithak is one of the most important structures of Nepal’s cultural heritage and history," Malnak said, adding that the real result was achieved by the US governments and communities working together collaboratively.
PM Oli and Charge d’ Affaires also jointly inaugurated the newly reconstructed Mahadev Temple, Kageshwor Temple, Laxmi Narayan Temple and Saraswati Temple in the premises that were built in the 17th and 19th centuries.
These Newari style architectural monuments were restored and seismically strengthened by Kathmandu Valley Preservation Trust (KVPT) with financial aid from the American government through AFCP which had provided $2 million through emergency grant.
According to the American Embassy in Kathmandu, AFCP is the most significant cultural preservation initiative abroad by the American government and since 2001 it has supported over 850 projects to preserve cultural heritages in more than 125 countries.
In Nepal, over the past two decades, 22 projects were completed worth over $3.4 million.

US provided $160 million in assistance to Nepal in 2016

The US government has provided $160 million in assistance in 2016 to improve health, education, environment, agriculture, earthquake reconstruction and governance in Nepal, according to a press release issued by the US Embassy in Kathmandu.
The statement also read that the approximately $133 million of these funds are managed by several US departments and agencies operating in Nepal, including the US Agency for International Development (USAID), the US Departments of Defense, Agriculture, and State, and the Millennium Challenge Corporation (MCC) among others.
In addition, $27 million of these funds were provided through the US Department of Defense to enhance Nepal's disaster response and strengthen its ability to participate in United Nations Peacekeeping Operations globally, the press release stated.
Among the key US foreign assistance in Nepal in 2016 was earthquake reconstruction support. In support of Nepal's high priority earthquake reconstruction activities, the US Embassy confirmed that its 2016 assistance included $41 million for earthquake reconstruction. "The amount was above and beyond the $130 million in immediate post-earthquake assistance pledged and provided in 2015 for relief, recovery, reconstruction and preparedness efforts," it said. "The assistance will help to rebuild schools and hospitals and provide training and technical assistance for construction professionals and homeowners on earthquake-resistant homes." The funding will also be used to improve water supply, sanitation, and hygiene conditions in the most earthquake-affected districts.
In addition, the US Government, through the Department of Defence, provided $18 million in 2016 to provide fixed-wing aircraft to the Nepal Army to assist with disaster response efforts, it added.
The US Government's Millennium Challenge Corporation (MCC) also provided $10 million in July of 2016 to evaluate projects for funding in the electricity transmission and road transport sectors. The final size of a next phase, multi-year assistance 'Compact' between MCC and the Government of Nepal, will be decided later this year.
Ninety-five per cent of US assistance in Nepal is awarded to international and local organisations through competitive processes and is regularly subject to financial and performance audits, the Embassy claimed, adding that MCC procurements are done through international competitive bidding with no preference to local or US firms.
This year marks the 70th anniversary of the bilateral relationship between the United States and Nepal with events and programmes planned throughout the next twelve months in partnership with the Government of Nepal, civil society, and the private sector.