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UK aid to help build peaceful and prosperous Nepal

2 April 2009

Mike Foster launches DFID Nepal Country Plan

The UK has today pledged to help build a lasting peace in Nepal and develop the economy of the poorest country in Asia.

Launching the three year plan in Kathmandu after a fact-finding visit, International Development Minister Mike Foster outlined a £172 million package of support to Nepal.

The UK’s support will address the impact of the global economic downturn on Nepal by helping to increase economic growth and make it easier for businesses to invest, as well creating tens of thousands of new jobs. It will give more than two million people better access to work and basic services, such as schools and hospitals, by building new roads across the country.

The plan includes training for nurses and midwives; helping save over two and a half thousand mother’s lives and ensuring 120,000 children receive life-saving immunisations. The plan will help transform education in Nepal by building 400 classrooms and provide a quarter of a million text books for school children.

The UK’s assistance will support the peace process in a country still recovering from a decade long civil conflict.

In addition, Mike Foster announced an extra £4 million to help 285,000 people affected by drought and conflict in the remote Western Hills of Nepal. This money will provide food, help communities rebuild schools and health posts and develop water supplies and irrigation schemes so they can grow more food in the future.

Speaking at the launch, Mike Foster said:

"Nepal has made major strides forward in recent years, and we have been proud to help, but there is still much to do to protect the fragile peace process and help restore, rebuild and renew the country following the conflict.

"The UK’s support will create much needed skills and jobs, giving Nepal the chance to secure the peace, and secure its economy for the future."

Announcing the additional World Food Programme funding, Mike Foster added:

"Droughts and conflict in some areas of Nepal have devastated local communities and many people simply don't have enough to eat. Our additional £4 million will provide the food they need in return for work building vital infrastructure, such as life saving health posts and water supplies or new schools."

DFID’s new business plan in Nepal will:

  • support the peace process by supporting the constitution writing process, helping to compensate victims of violence or displacement, and supporting ex-combatants
  • provide growth and jobs by building 800 kilometre of new roads to connect 2.4 million people to jobs and basic health and education services, especially in remote rural areas. Eighty-eight thousand new jobs will be created through skills and training schemes, particularly amongst women. DFID will also help the government to improve the investment climate, stimulate the economy and help the private sector create more jobs.
  • help provide basic services such as health and education. Our work will save an estimated 2,600 mother’s lives and 30,000 newborn lives through maternal health schemes, immunise 120,000 children and ensure 260,000 births are managed by skilled attendants. In education, 400 classrooms will be built with 7,000 additional children enrolled and 225,000 text books delivered.
  • tackle climate change by promoting climate change adaptation and continuing the community forestry programme which will lift 50,000 people out of poverty and attract £15 million in carbon finance
  • improve governance and promoting the private sector by working with the Constituent Assembly to improve public financial management and accountability and strengthen the financial sector to promote more investment.

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Notes to editors

The country business plan sets out spending in Nepal over the next three financial years. In total, DFID will spend £56 million in 2009/10, £56 million in 2010/11 and £60 million in 2011/12. This will be spent on supporting the peace process, building better governance, providing basic services, growth and jobs and climate change. This represents an increase of 46% from the previous three-year plan.

The £4 million funding to the World Food Programme project is in addition to the Country Business Plan.

For further information, contact Sarah Saxton on 020 7023 0944 or 020 7023 0600, e-mail s-saxton@dfid.gov.uk or call our Public Enquiries Point on 0845 300 4100.

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