Press Release Kathmandu, 16 July 2014~
The International Fund for Agricultural Development (IFAD) and the Government of Nepal (GoN) have come together yet again for a new six-year (2015-2018) project titled Adaptation for Smallholders in Hilly Areas (ASHA). Negotiations were held on 14-15 July 2014 at Ministry of Forest and Soil Conservation, Singha Durbar; 14 July was scheduled for technical discussions and 15 July was reserved for final negotiation. The project design, in line with the country strategic opportunities programme (COSOP 2013-2018), was prepared with the GoN in September 2013 and May 2014.
Nepal is highly vulnerable to climate change (CC), affecting national efforts to reduce poverty, particularly in rural areas where about 80 per cent of the population reside. The rural smallholder farmers who are largely dependent on subsistence farming for their livelihoodsare facing increasing challenges in their daily livelihoods. In this context, ASHA seeks to reduce the climate change risks and vulnerabilities and raise the resilience of smallholders farmers by (i) strengthening the framework for local-level climate adaptation; and (ii)improving the resilience of vulnerable people.
It is estimated that the project will directly benefit at least 100,000 households and 600,000 people. The first three years of the project period will focus on six mid-western districts: Jajarkot, Kalikot, Dailekh, Salyan, Rolpa and Rukum. The districts were selected in consonance with the vulnerability mapping of the National Adaptation Programme of Action (NAPA). The target area will be expanded to other districts and/or regions of Central and Eastern Nepal after the mid term review in 3 years from now.
The total cost of ASHA is estimated at USD 37.6 million. IFAD will provide two grants of USD 10 million (26.6%) from its performance-based allocation system (PBAS) and USD 15 million grant (39.9%) from the Adaptation for Smallholder Agriculture Programme (ASAP), IFAD’s financing source dedicated to supporting the adaptation of poor smallholder farmers to climate change.The GoN’s contribution is estimated at USD 6.6 million (17.6%) and beneficiary contribution at USD 6.0 million (15.9%).
The project is now planned to be submitted to the IFAD executive board session in September 2014 and is scheduled to begin in early 2015.
IFAD in Nepal
IFAD has been working in Nepal for more than 35 Years. Since starting operations in 1978, 14 projects have been financed from IFAD loans and 6 are on going. IFAD's strategy in Nepal – based on its Country Programme Strategic Opportunities Programme for 2013-2018 – supports the development policies and programmes of the government and other partners, especially in relation to peace-building, reconciliation, reconstruction and economic recovery. IFAD's investments in Nepal underscore these efforts by addressing the issues of poverty, inequality and social marginalization that lie at the heart of conflict in the country.
For more info: www.ifad.org