Donors start making sector-wise support

KATHMANDU, June 25:

Donor agencies have started to announce their financial assistance by focusing on different sectors.

The World Bank (WB) Group on Tuesday announced to provide grants to poor rural households for rebuilding their houses. Issuing a statement, the bank said its other commitments will be determined by emergency needs and division of labor with donors, and government requests.

WB has made commitment to provide support worth US$ 500 million.

Likewise, Asian Development Bank (ADB) is planning to announce its support package focusing on reconstruction of public schools, public buildings and rebuilding district and town roads. The Manila-based multinational donor has already announced a package of $200 million for reconstruction.

ADB Country Director Kenichi Yokoyama said they will announce other assistance on Thursday.

Vice-chairman of National Planning Commission (NPC) Govind Raj Pokhrel has welcomed donor's move to support Nepal for reconstruction by focusing on specific sector. "This move will also help to avoid duplication in donors' engagement as well as make administrative works easy while implementing the projects," said Pokhrel.

Donors can choose a specific sector to channel their support or directly extend their support to National Reconstruction and Rehabilitation Fund -- a special fund which will be spent only for reconstruction projects.

Finance Minister Ram Sharan Mahat has appealed to the donors to extend sector-wise support or make donations to the fund. "It is up to us to decide on funds," Mahat added.

In addition to WB and ADB, other major bilateral and multilateral donors are likely to announce the support package for rebuilding works. The government believes donor agencies will specify the sector to channel their support.

Japan International Cooperation Agency (JICA) and European Commission, among others, will also announce their support, specifying the sectors, on Thursday.

Realizing that donor's engagement in too many projects is not becoming, the government wants them to focus on projects that can have broader impact.

The government expects pledges and solidarity in the international conference rather than announcement in figures as donor agencies and participating countries are in the middle of fiscal year and they need approval of from their boards or parliaments for new support or assistance.