World Bank approves Rs 8.2b grants to Nepal for Health Related Services

WB approves Rs 8.2bn grant

Kantipur Report

KATHMANDU, May 8 - A board meeting of the World Bank held yesterday approved a grant assistance of US$ 127 million (Rs 8.26 billion) to Nepal to support the ongoing peace process, expand primary health services in rural areas and improve rural water supply and sanitation.

According to a press statement, the bank will provide US$ 50 million under the Emergency Peace Support Project to help the government fulfill commitments made under the Comprehensive Peace Agreement and the subsequent 23-Point Agreement inked between the government and Maoists. The grant will be used to pay compensation of Rs 100,000 each to the families of the war deceased.

Likewise, the money will also support payment of Rs 3,000 per month to approximately 19,600 verified Maoists in cantonments, including arrears on these payments that have built up over the past 10 months, the statement said and added, "The project will also help the government pilot reintegration initiatives."

A fragile peace has been sustained over the past two years and important steps have been taken toward a "New Nepal," including the establishment of the Seven-Party Alliance in November 2005 and the recently held Constituent Assembly elections, said the press release.

"There is a high degree of commitment at the political level to ensure lasting peace in Nepal, and this project is designed to contribute to this agenda," Susan Goldmark, World Bank Country Director for Nepal, was quoted as saying.

The World Bank also approved additional grant financing of US$50 million for the Nepal Health Sector Program and US$27 million for the Second Rural Water Supply and Sanitation Project. The grant to the health sector program is designed to expand access to and use of essential health care services, especially by underserved populations.

"In addition the grant will support two recent initiatives: the removal of some user fees and the introduction of the Safe Delivery Incentive Program benefiting many poor and disadvantaged women and children," said the release.

Likewise, the grant for Rural Water Supply and Sanitation Project will scale up the project to provide services to more remote rural areas.

According to the statement, the project aims to improve institutional performance in the rural water supply and sanitation sector, and will also support communities to form inclusive local water supply and sanitation user groups that can plan, implement and operate drinking water and sanitation infrastructure that delivers sustainable health, hygiene and productivity benefits to rural households.

"An additional 400,000 people from nearly 600 communities stand to benefit from rural water supply and sanitation facilities with the new financing," said the release. Another 450 schemes will undergo the development phase, including activities for social capital development, preceding the construction phase.

Posted on: 2008-05-07 19:49:48 (Server Time)