Japan to extend $ 9.3 million grant to Nepal
Ambassador of Japan to Nepal Tsutomu Hiraoka and Secretary of the Ministry of Finance Vidyadhar Mallik on Friday signed and exchanged notes on behalf of their respective governments.
Issuing a press release today, the Japanese embassy stated that the Non-Project Grant Aid (NPGA) will be extended for the purpose of contributing to the efforts of the Government of Nepal for socio-economic development and poverty alleviation, especially that in the rural areas, as well as to support its efforts for the consolidation of democracy and the realization of permanent peace in the country.
According to the press release, the Non-Project Grant Aid will come in the form of foreign currency support in order to secure payment of essential imports required for the key development activities, such as development of rural areas and also for peace building and the consolidation of democracy.
Besides, the Government of Nepal will have to deposit a specified amount of money separately, in Nepalese currency, into a bank as a counterpart-fund of the NPGA after the utilization of this grant.
The currency that is deposited under the NPGA counterpart-fund is to be effectively utilized in health, education, local development and economy, reconstruction, rehabilitation and development of rural areas, disaster management, drinking water and sanitation, agriculture, and local governance and peace building with prior consultation between the two Governments.
"The Government of Japan expresses its firm belief that the assistance extended today will directly benefit Nepal and its people," the statement quoting the Japanese envoy read.
In the Japanese Fiscal Years 2002, 2003 and 2004, the Government of Japan had extended a total of three billion and three hundred million yen (¥3,300,000,000) as grant assistance for similar Non-Project Grant Aid to Nepal.
(Source: http://www.kantipuronline.com/kolnews.php?&nid=94600)
