Japan approves Counterpart Fund usage

Kathmandu, March 10: The Government of Japan has approved the usage of counterpart funds to the sum of one hundred million Nepalese Rupees (NPR 100,000,000) for the implementation of the Project for Cooperative Farming, Small Irrigation and Transportation Subsidy on Fertilizers and Improved Seeds- Earthquake severely affected districts of Nepal.

Japan government gave the approval based on a request made by the Government of Nepal.

A press release issued by the Embassy of Japan today states that the project was approved in order to rehabilitate and maintain small irrigation infrastructure damaged by the earthquake; enhance food security for small-farmers; support poverty alleviation programs; give relief from the increased price of chemical fertilizers and seed in the target areas and improve agricultural livelihoods of farmers, specifically in 14 districts of Nepal affected the most by the earthquake.

The Counterpart Fund was established through financial assistance extended by the Government of Japan to increase agriculture production under KR2 (grant assistance for underprivileged farmers).

The Government of Nepal has procured fertilizer through this assistance, and sold it in the domestic market to prevent acute shortage and unexpected price hike. The amount collected from selling the fertilizer was deposited as a counterpart fund. The funds can be used for implementing various social and economic development projects through consultation between the two governments, it is stated.