Completed Operations

Projects are listed in inverse chronological order of approval, starting with the most recent.

  • Poverty Alleviation Project in Western Terai [view]
  • Groundwater Irrigation and Flood Rehabilitation Project [view]
  • Hills Leasehold Forestry and Forage Development Project [view]
  • Production Credit for Rural Women Project [view]
  • Aquaculture Development Project [view]
  • Second Small Farmer Development Project [view]
  • Command Area Development Project [view]
  • Small Farmer Development Project [view]
  • Integrated Rural Development Project (Sagarmatha Zone) [view]

Poverty Alleviation Project in Western Terai

 Loan number(s): I-452-NP
 Total project cost: US$9.7 million 
 Approved IFAD loan: US$8.9 million 
 Project type: Agricultural Development
 Approval date: 11/09/1997
Poverty in the Western plains Region is widespread and is on the increase. Economic opportunities are limited and population growth is very high. The poor in this area are either landless or have very small plots of land to cultivate. The goal of the project was to increase the incomes and improve the welfare of smallholder farmers, and landless people, particularly women, in the project area. Local people were supported as they formed small groups to manage credit, receive skills training and organize community development activities. The project also strengthened institutional support for the groups and improved access to water resources.
A total of 21,560 households were served from the Project. 

Groundwater Irrigation and Flood Rehabilitation Project

 Loan number(s): I-352-NP
 Total project cost: US$13.2 million 
 Approved IFAD loan: US$9.9 million 
 Project type: Irrigation
 Approval date: 19/04/1994
The Terai region has good potential for agricultural development and a reasonably robust marketing and communications network. Agricultural development of the region will help feed Nepal’s rapidly rising population. This project’s aims were to raise crop yields, improve farmer’s incomes and increase food security for the poor by providing irrigation systems. It also set out to repair damage to existing irrigation systems that were hit by the floods of July and August 1993, and to restore livelihoods to people living in the flooded areas.
The project offered an opportunity to research and test possible technical and institutional options for efficient and equitable development of groundwater irrigation.

Hills Leasehold Forestry and Forage Development Project

 Loan number(s): I-250-NE
 Total project cost: US$20.4 million 
 Approved IFAD loan: US$12.8 million 
 Project type: Rural Development
 Approval date: 07/12/1989
The objective of the project was to reduce poverty and restore degraded environments in the middle hills by leasing small sections of public forest land to groups of rural poor people who would then manage the land for their own use, and thus help regenerate it. A total of 1,773 leasehold forestry groups were formed and 7,457 ha of degraded forestland were handed over to rural poor people.
The project showed that transferring sections of degraded forest to the very poor on renewable 40-year leases is an effective means of reducing poverty and reforesting the land. Annual household incomes increased from US$270 to US$405, and this in turn resulted in greater food security and improved nutrition. Environmental degradation was reversed at most sites and biodiversity increased significantly.

Production Credit for Rural Women Project

 Loan number(s): I-208-NE
 Total project cost: US$11.3 million 
 Approved IFAD loan: US$6.0 million 
 Project type: Credit and Financial Services
 Approval date: 10/09/1987
Rural women are held back from improving family living standards by social discrimination. This project was designed to underline the important contribution women can make to family incomes. Ultimately it served as a model for efforts to ensure that women’s interests are reflected in development policies in Nepal. The project covered all ecological zones of the country and all five administrative regions. Key features of the project included:
  • education and training for rural women
  • provision of drinking water supplies and community forestry schemes designed to save women work
  • development of social services and infrastructure
The project empowered women and increased their incomes. The delivery of credit to the women’s group was implemented successfully and used for services, agriculture and livestock activities. It demonstrated how they can become more confident, self-reliant and productive. More than 50,000 women were trained, and more than 18,000 women’s credit groups were formed. The project successfully launched an institutional innovation and demonstrated that associations of resource-poor women can manage their credit needs without links to, or credit from, the formal banking sector with little default.

Aquaculture Development Project

 Loan number(s): I-191-NE
 Total project cost: US$23.0 million 
 Approved IFAD loan: US$5.0 million 
 Project type: Fisheries
 Approval date: 18/09/1986
This was the second phase of a project begun by the Asian Development Bank. Freshwater aquaculture has great potential for raising the incomes of small producers and landless labourers and for increasing fish exports. Traditionally fish farming is practiced by the poorest members of the population. Fish farming also helps improve the nation’s diet by making much-needed fish protein more widely available. The project benefited 6000 people and developed a system for aquaculture that could be replicated elsewhere. It provided credit and training to farmers to strengthen support and extension services in the public sector.

Second Small Farmer Development Project

 Loan number(s): I-166-NE
 Total project cost: US$24.5 million 
 Approved IFAD loan: US$14.5 million 
 Approved IFAD grant: US$100,000
 Project type: Credit and Financial Services
 Approval date: 02/04/1985
Building on the success of the first Small Farmer Development Project, this project reached 12 additional districts and expanded on work done in the areas already covered by the first project. The project’s objectives were to increase the income and improve the well-being of small farmers, landless labourers and the rural poor. Project activities covered:
  • improvements in crop production and livestock farming
  • construction of minor irrigation systems
  • assistance in creating village industries
  • training and technical assistance

Project related documents on IFADAsia  


Command Area Development Project

 Loan number(s): I-82-NE
 Total project cost: US$29.1 million 
 Approved IFAD loan: US$11.2 million 
 Project type: Irrigation
 Approval date: 17/12/1981
Irrigation facilities existed in the project area but were under-utilized because of the lack of water distribution systems. The project aimed to increase food production, raise farm incomes and provide rural employment opportunities by improving irrigation facilities and the distribution of water to farms. Specific objectives of the project were to:
  • rehabilitate existing irrigation canals
  • provide new canal and farm ditch systems
  • create drainage and flood control systems
  • strengthen agricultural support services
The project also gave farmers the equipment and training capacity to maintain the improved irrigation facilities. About 14,500 households benefited from this project.

Small Farmer Development Project

 Loan number(s): I-57-NE
 Total project cost: US$16.1 million 
 Approved IFAD loan: US$12.5 million 
 Approved IFAD grant: US$1.0 million 
 Project type: Credit and Financial Services
 Approval date: 05/12/1980
Many rural poor families in the Terai and hill regions struggle to feed themselves. The project worked to improve living conditions and increase the sustainability of incomes and productivity for small-scale farmers and landless people in the project area. Its design was guided by a pilot phase that set up small farmer groups in selected districts. Project objectives were to:
  • build an institutional base supporting the creation of small farmer groups
  • provide these groups with credit to enable them to pursue other income-generating activities
  • adapt local delivery systems to the needs of rural poor people
  • provide training and technical assistance
The project resulted in improvements in income, employment and production rates, and it developed ways to involve the poorest and most marginalized families. About 3,500 small farmer groups were formed. Family incomes of participating farmers increased by an estimated 20 to 30 per cent. Most importantly, the farmers were able to break out of the cycle of debt.

Integrated Rural Development Project (Sagarmatha Zone)

 Loan number(s): I-10-NEP
 Total project cost: US$34.8 million 
 Approved IFAD loan: US$13.0 million 
 Project type: Rural Development
 Approval date: 12/12/1978
The project area included both the Terai lowlands, with its gentle slopes, and the steeper hill areas. Agricultural yields are low in these zones and poor rural people struggle to feed themselves adequately. The project addressed the root causes of poor agricultural productivity in the area and worked to improve incomes and living standards for the poor. The objectives of project activities included:
  • strengthening agricultural support services
  • improving irrigation and transport facilities
  • ensuring soil and water conservation
  • creating alternative income opportunities
  • improving health facilities
  • establishing a clean drinking water supply

Project related documents on IFADAsia  

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