WB to give PAF $80m to extend scheme

KATHMANDU, MAY 27 -

The World Bank (WB) is providing a grant of US$ 80 million to the government’s Poverty Alleviation Fund (PAF) to support its programmes on poverty alleviation. PAF plans to use the money to extend its second phase programme to another 15 districts by the end of the fiscal year.

PAF vice-chairman Yuva Raj Pandey said that both the government and WB-Nepal had agreed to the plan. “The final approval will be given by the WB board meeting to be held in June,” he added.

The new districts where PAF will implement its programme include Bajura, Darchula, Baitadi, Kapilvastu, Dolpa, Taplejung, Jumla and Humla. Pandey said they would be initiating the programme in poverty pocket programme districts where the people are more vulnerable to poverty. He said that they would focus on helping low-income and marginalized communities like the Musahar, Badi and Dom.

Meanwhile, the WB’s International Fund for Agriculture Development (IFAD) is likely to provide US$ 10 million for the extended programme of the second phase, according to PAF. “We are holding discussions with IFAD,” he said. So far, the WB has provided PAF with a grant of US$ 215 million while IFAD has supported it with US$ 4 million.

PAF has been carrying out its programme in 59 districts across the country. Among them, 40 are regular programme districts while 19 have been identified as innovative programme districts.

It has been providing its support through 21,000 community organisations. PAF said 633,937 households have benefited from its poverty alleviation programmes. PAF’s executive director Raj Babu Shrestha said they would focus more on targeted programme and social inclusion under the extended programme.

As of the present, PAF has spent Rs 13,560 million for poverty alleviation under the PAF I and PAF II programmes. “Out of the 94 percent in expenses, 78 percent has been funded through community organizations while 16 percent has been funded by the partner organizations directly,” said Shrestha. PAF said that its programme had been able to increase 82.5 percent average real income of the beneficiaries’ households.

Rajiv Upadhya, external relation specialist at World Bank-Nepal, said the organization had planned to focus more on the marginalized poor in recent times.

“We are preparing a four-year strategy for effective implementation of the poverty alleviation programme,” he added.

Source: The Kathmandu Post