Active Projects

Map of active projects in Nepal in 2013

IFAD currently has 5 active projects in Nepal:

  1. Western Uplands Poverty Alleviation Project (WUPAP) - Read the summary below or go to the project site.
  2. High Value Alleviation Project in Hill and Mountain Areas (HVAP) - Read the summary below or go to the project site.
  3. Leasehold Forestry and Livestock Programme (LFLP) - Read the summary below or go to the project site.
  4. Poverty Alleviation Fund, Phase II (PAF II) - Read the summary below or go to the project site.
  5. Kisankalagi Unnat Biu-Bijan Karyakram (Improved Seeds for Farmers Programme) - Read the summary below or go to the project site.

1. Western Uplands Poverty Alleviation Project (WUPAP)

Total cost: US$32.6 million
Approved IFAD loan: US$19.9 million
Approved DSF grant: US$360,000
Duration: 2003 - 2014
Directly benefiting: 15,300 households
Cofinancing: World Food Programme (US$ 4.0 million)

Poverty is widespread in the Western Uplands region. The terrain and climate are harsh, the area is isolated and infrastructure poor. Many people struggle to grow enough crops to feed themselves and their families on tiny plots of land. The project’s objective is to improve and strengthen the livelihoods of the most vulnerable by:

  • improving access to services and resources
  • promoting different livelihood options (such as livestock, forestry and crops)
  • empowering women and other marginalized people

The project seeks to promote more resilient livelihoods and basic human dignity of poor and socially disadvantaged groups through a rights based approach. A relative objective of the project is to create vibrant grass-roots institutions that will respond to the needs of the people, especially the target group and empower them to mobilise their own resources and to access external resources. The project intends to cover 115,000 households (632,500 individuals) of which 95%food insecure households located in remote and inaccessible areas.
For more information, go to the project site or download the President's Report (pdf).

2. High Value Alleviation Project in Hill and Mountain Areas (HVAP)

Total cost: US$18.9 million
Approved IFAD loan: US$7.6 million
Approved DSF grant: US$7.6 million
Duration: 2010 - 2017
Directly benefiting: 15,300 households
Cofinancing: Netherlands Development Organisation/SNV (US$0.7 million)

One of the challenges facing poor rural people living in Nepal’s hill and mountain areas is economic exclusion. The High-Value Agriculture Project in Hill and Mountains area helps remote communities to integrate into the local rural economy through initiatives that develop small businesses and increase trade by building the capacity of rural institutions.
The project will invest in the mid-west of Nepal where there is a need for improved infrastructure and better access to services and markets.
The project will focus on socially excluded and vulnerable people such as dalits, indigenous groups (janjatis) and women. It will help increase the incomes of these segments of population by responding to the private sector’s demand for 18 high-value crops such as vegetables, fruits, non-timber forest products, medicinal and aromatic plants and livestock, all of which are currently not well processed or marketed.
The project will also allow farmers to:

  • develop strong commercial links with traders and to sustainably raise their incomes
  • receive training and support in production and post-harvest techniques.
  • get better access to technical services, finances, farm supplies and market information.

For more information, go to the project site or download the President's Report (pdf).

3. Leasehold Forestry and Livestock Programme (LFLP)

Total cost: US$16.3 million
Approved IFAD loan: US$10.5 million
Approved IFAD grant: US$1.2 million
Duration: 2005 - 2013
Directly benefiting: 44,300 households

The programme covers the middle hills area where a large percentage of the population is poor. It targets poor families in a wide area extending across the whole country, except for those districts which are already part of the ongoing IFAD Western Uplands Poverty Alleviation Project, with particular attention to those living in areas adjacent to degraded forest who cannot secure enough food for their families year round. The overall goal will be to reduce poverty in the area by allocating leasehold forestry plots to poor families to enable them to increase incomes from forest products and livestock. Specifically the programme will work to:

  • improve household forage and tree crop production
  • improve household production of livestock, especially goats
  • provide access to microfinance institutions
  • support the government’s capacity to implement leasehold forestry in a gender-sensitive way

The programme builds on the success of the Hills Leasehold Forestry and Forage Development Project in helping set up leasehold forestry groups that will eventually become village finance associations. Women will be hired to mobilize the leasehold groups and train them in group management and rural finance.
For more information, go to the project site or download the President's Report (pdf).

4. Poverty Alleviation Fund, Phase II (PAF II)

Total cost: US$112.7 million
Approved DSF grant: US$4.0 million
Duration: 2008 - 2012
Directly benefiting: 200,000 households
Cofinancing: World Bank: IDA (US$100.0 million)

Following the peace process in Nepal and agreements reached between the country’s political parties, the government has made a new commitment to address inequality and poverty among the population. The project is one of a number of community-based interventions designed to introduce rapid development changes in poor, remote areas of Nepal. The principal goal of the second phase of the Poverty Alleviation Fund Project funded under the debt sustainability framework (DSF) in partnership with the World Bank is to address the interrelated problems of rural poverty and social exclusion. The fund supports efforts to empower poor and disadvantaged people throughout the country and improve their living conditions and livelihoods.

Groups that traditionally have been marginalized for reasons of gender, ethnicity, caste and location are the focus of the project. The pilot phase was first implemented in six districts and then extended to 25 districts. The second phase will increase project coverage annually and will be operating in a total of 75 districts by the end of 2010. The project will help build the capacity of local grass-roots organizations. It will develop community infrastructure such as small-scale irrigation and it will build access roads and bridges, improve water supply, sanitation, schools and health posts. One of the aims of the project is to help create income-generation opportunities for the poorest and most excluded groups.
For more information, go to the project site or download the President's Report (pdf).

5. Kisankalagi Unnat Biu-Bijan Karyakram (Improved Seeds for Farmers Programme)

Total cost: US$59.7 million
Approved IFAD loan: US$19.5 million
Approved DSF grant: US$19.5 million
Duration: 2012 -
Directly benefiting: 150,000 households
Cofinancing: Heifer International (US$2.5 million)

Building on an approach already tested in the IFAD-financed High Value Agriculture Project in Hill and Mountain Areas, this programme targets an area of Nepal combining high poverty levels and relatively high population densities with significant agricultural potential for seed and livestock production.

The goal of the seven-year programme is to promote competitive, sustainable and inclusive agricultural growth in the target area in order to contribute to overall economic development. It seeks to improve productivity through market-led demand for improved seeds and livestock, with an eye toward testing and scaling up a model of growth led by agriculture.

The programme is composed of three components:

  • Support for expansion of the formal seed sector
  • Smallholder livestock commercialization
  • Local institutional and entrepreneurial development.

The first-phase programme area encompasses four districts in the Mid Western Region and two in the Western Region. All targeted districts are in hill areas, some with poverty levels that are considerably above national rural averages. The target group comprises nearly 350,000 households.

For more information, go to the project site or download the President's Report (pdf)

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