|
|
|
|
|
|
|
|
|
|
  |
 |
  |
Nepal
FY 2001 Program Description and Activity Data Sheets
>> Regional Overview >> Nepal Overview
FY 2001 Program
USAID/Nepal is developing a new strategic plan for FY 2001 - FY 2005. The program will focus on Nepal's needs in health and family planning, hydropower development and strengthening democratic processes to ensure the wise use and equitable distribution of wealth from that development in the future. Maintaining a community-level program, complemented by targeted policy dialogues at the national level will effectively maximize the impact of U.S.G. investments.
ACTIVITY DATA SHEET
PROGRAM: Nepal TITLE AND NUMBER: Increased Sustainable Production and Sales of Forest and High-Value Agricultural Products, 367-001 STATUS: Continuing PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $300,000 DA PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $1,000,000 DA INITIAL OBLIGATION: FY 1992 ESTIMATED COMPLETION DATE: FY 2002Summary: Over 80% of Nepal's 23 million people depend on agriculture, agribusiness and/or forestry for their livelihood. Pervasive poverty and rapid population growth in the rural areas are forcing farmers to use ever more marginal lands, leading to deforestation and soil erosion. Accelerating agricultural growth has consequently been a key component of USAID's strategy for alleviating poverty and facilitating economic development in Nepal. The purpose of this objective is to increase the sustainable production and sales of forest and high-value agricultural products. This will be accomplished by expanding market participation by farmers, traders and entrepreneurs and promoting sustainable management of the productive resource base.
This objective is closely tied to U.S.G. interests in promoting broad-based economic growth through increasing opportunities for disadvantaged groups such as farmers and women. The objective also promotes a sustained global environment through programs to reduce forest degradation and to promote biodiversity conservation. The establishment and strengthening of popularly elected community-based forest and irrigation water groups also contributes significantly to building democracy while improving local resource management.
Approximately 1.2 million rural poor directly benefit from this program. People throughout Nepal will benefit from the introduction of improved crop varieties, increased trade, additional off-farm employment opportunities, and increased access to high-quality/lower-cost agricultural products. Women beneficiaries make up over 46% of the participants in the high-value agriculture program and 80% of the participants in the community forestry program.
Key Results: Two primary results will indicate that this objective has been achieved: a) annual sales of forest and high-value agricultural commodities in targeted areas should increase tenfold from $3.2 million in 1993 to $32 million by 2002; and b) community forest and irrigation-user groups with fully developed management plans will increase from 586 (1995) to 2,700 by 2002. Other results will indicate progress towards the objective, including: a) land turned over to forest-user groups will increase from 37,754 (1994) hectares to 150,000 hectares by 2002; b) the number of buffer zone conservation committees sharing in national park revenues will increase from 0 (1997) to 50 by 2002; and c) the annual production of forest/pasture biomass will increase from 174,000 cubic meters in 1994 to 2,200,000 cubic meters in 2002. As the Performance Measure table confirms, good progress is being made on these targets throughout the program.
Performance and Prospects: The production of high-value forest and agricultural commodities correlates strongly with increased family income and with shifts from subsistence to market oriented production systems. The transfer of land and resources to private forestry and irrigation-user groups demonstrates the Government's acceptance of the need for productive resource management by the private sector. It also increases the confidence of rural citizens in their own ability to manage resources, directly builds grass roots democracy; and demonstrates that democratic government can effectively and tangibly address the needs of its poorest citizens. Recent performance of USAID-sponsored activities has been very good with all related indicators exceeding targets. Prospects are favorable for even greater contributions to an increased standard of living in rural areas, provided funding levels are maintained.
USAID assistance has helped to create market linkages for new technologies that improve production and has identified markets for forest and high-value agricultural products in Nepal and the South Asia region. At the national level, USAID is continuing to support development and adoption of export-oriented trade policies and implementation of natural resource legislation, which expands community and private management of forest and water resources.
USAID works primarily with and through non-government organizations (NGOs), private firms and Government counterparts on these activities. Community groups are given training and technical assistance, which increases their capacity to help themselves. Increased incomes from community managed forests and irrigation schemes as well as high-value crop production and marketing systems are now being used to build roads, potable water systems, and schools and to undertake other types of self-help development activities. Knowledge of improved technologies is increasing production and the competitiveness of Nepalese farm and forest enterprises in both local and export markets. Under a new development strategy, USAID will move to more cost-effective mechanisms including greater use of local and international NGOs.
In FY 2001, USAID will complete critical bio-diversity and environment activities that will protect Nepal's frame ecosystem and reduce environmental degradation. The mission will also assist with the development of marketing strategies that will help community groups market the increased production of high-value agricultural commodities.
Possible Adjustments to Plans: As part of a Mission-wide strategy review, virtually all activities have been scrutinized for development impact, and adjustments have been made to budgets and work plans. In particular, decisions have been made to discontinue support to livestock production, increase efforts to create sustainable marketing links between producers' groups and buyers at wholesale market centers, and to better target specific problems in the marketing chain through policy work. Under the new 2001-2005 strategy, this objective will be focussed on addressing second-generation issues with community forest-user and irrigation-management groups established under earlier programs. This includes better management of the forest and water resources under community control, and ensuring equitable participation in decision-making and benefit distribution. These interventions will increase the chances that past investments will be sustained by the Nepali beneficiaries. In addition, USAID/Nepal is considering redirecting its high value commodity program to focus on strengthening federations of producers and buyers' group to further market development.
Other Donor Programs: USAID participates actively in donor thematic groups on forestry and agriculture/rural development. Community forestry programs, which are now spread across the country, are closely coordinated with the British, Australians, Swiss and Danish aid organizations. USAID's high-growth agriculture model is being replicated by the British Department for International Development in eastern Nepal, by German Technical Aid and the Swiss Development Cooperation in central Nepal, and by Denmark in western Nepal. USAID works in partnership with the Asian Development Bank to strengthen the GON's capacity to transfer the operation and maintenance of government irrigation systems to private water-user groups.
Principal Contractors, Grantees or Agencies: Current partners include: the GON Ministry of Agriculture, the GON Ministry of Forests and Soil Conservation, Winrock International Institute for Agricultural Development, Chemonics International, World Wildlife Fund, CARE, Canadian Center for International Studies and Cooperation, and the U.S. Department of the Interior.
Selected Performance Measures: Baseline Actual
(1998)Target
(1999)Target
(2001)Target
(2000)Target
(2002)Annual Sales of High-Value Agricultural, Livestock and Forest Commodities in Target Areas (Millions of US $) 3.2
(1993)25.1 27 30.0 31.0 32.0 Farm and Forest Households Producing High-Value Products in Target Areas (Thousands of Farm and Forest Households) 23.1
(1993)160.0 170.0 180 190 200 Annual Production of Forest/Pasture Biomass (Thousand of Cubic Meters) 174
(1994)1,400 1,600 1,800 2,000 2,200 Community Forest and Irrigation User Groups Formed with Management Plans in Target Areas (Groups) 586
(1995)1,500 1,600 1,800 2,100 2,700 U.S. Finance Table (Microsoft Excel)
ACTIVITY DATA SHEET
PROGRAM: Nepal
TITLE AND NUMBER: Reduced Fertility and Improved Maternal and Child Health, 367-002
STATUS: Continuing
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $6,500,000 DA; $7,000,000 CSD
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $8,500,000 DA; $8,250,000 CSD
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2002Summary: The USAID/Nepal health program supports U.S. national interests to stabilize world population growth, protect human health and reduce the spread of infectious diseases. Its major purpose is to reduce fertility and improve maternal and child health, directly supporting the MPP Health and Population Goals. While current program objectives are being met, the needs in Nepal are vast; the maternal mortality rates are among the highest in the world at 1500/100,000 live births, population growth is 2.4% and, under-five mortality rates are currently estimated at 92/1,000 live births. Program objectives are met by expanding the use of quality, voluntary family planning (FP) services (through DA population funds); improving selected maternal and child health services (through CSD funds); increasing HIV/STI prevention and control practices among high-risk groups (through HIV/AIDS earmarks); and strengthening institutional capacity and control of selected infectious diseases with a focus on vector-borne diseases and antimicrobial resistance (through ID earmarks). The beneficiaries of the FP/reproductive health program potentially include the entire population of reproductive age - more than 11 million people of which at least four million will be contraceptive users. Child health services will reach 90% of children under five (about 3.5 million children).
Key Results: Two strategic level results will indicate that this objective is being achieved. Using population funds (DA), the total fertility rate should continue to drop from the 4.6 baseline (1996 DHS) to 4.0 children per women by 2002. The current estimate is 4.2. Through the use of CSD funds, under-five mortality rate should decline by an additional 35% from 118 (1996 DHS) to 85 per 1000 live births by 2002. As reported in the table of Performance Measures, several indicators reflect the continuing progress of the SO2 program in improving Couple Years of Protection, increasing the number of children receiving Vitamin A capsules, improving the treatment of pneumonia symptoms in children and increasing condom use in high risk groups to prevent the spread of HIV/AIDS.
Performance and Prospects: USAID assistance is delivered nation-wide through the GON, local and international NGOs, contractors and the private sector. A network of U.S. and Nepali NGOs provides comprehensive community-based health and FP services in 23 districts. Community health workers provide information and services to combat diarrheal diseases, pneumonia, vitamin A deficiency and HIV/AIDS as well as to promote FP/child spacing and safe birthing practices. In addition, through a program to better inform consumers of health and FP services, over 10,000 women completed health education and adult literacy classes. This year the SO2 program has exceeded expectations.
USAID is the lead donor for the national family planning program and the chief donor supporting private sector FP activities. Contraceptive use has increased substantially, surpassing targets in public, NGO and commercial private sites. USAID-trained paramedics dispensing Depo-Provera increased contraceptive use by 77% in private pharmacies. The supply of contraceptives in Nepal has been improved through the USAID-initiated national integrated logistics-management system for essential drugs and contraceptives. Eighty- five percent of district warehouses now stock a 3-month supply of contraceptives. To ensure that FP services are high quality, USAID continues support for the Quality of Care Management Center to monitor and improve clinical FP services with a focus on appropriate counseling and informed consent. USAID trained over 1400 health care professionals last year in the full range of family planning methods with a unique competency-based in-service and pre-service training program. In addition, two innovative national radio programs are increasing family planning provider knowledge and educating the public on the importance of family planning.
USAID's child survival activities have contributed to a 50% reduction in under-five mortality over the past 15 years. Nepal's national vitamin A program for high-dose capsule supplementation and complementary nutrition education has now reached 94% of eligible children in 53 out of 75 districts, well ahead of projected expansion. By current estimates, the program is averting some 25,000-child deaths annually. The National CDD/ARI/IMCI Program contributes to the reduction of high infant and child mortality and to Nepal's still very high diarrhea and pneumonia mortality. The program continues to support improved case management of diarrhea in all 75 districts, as well as strengthening of ARI case management in 11 out of 75 districts. In this innovative program, female community health volunteers (FCHV), most of whom are illiterate, are now being trained to treat pneumonia in children. Studies indicate that only 17% of pneumonia cases are typically brought to health facilities -- with the community based program, over 50% of cases are now being treated.
The HIV epidemic continues to grow in the region but remains at a low level in Nepal. A survey of HIV/STI prevalence among truckers and sex workers has been completed and initial findings suggest HIV prevalence below 5%. High rates of STIs however place them at continued risk for HIV. An open Indian border, continued trafficking of women and children for the sex industry, seasonal male migration for work, flourishing commercial sex and other high-risk behavior, justify an aggressive prevention program. This program has been successful with 70% of male clients of commercial sex workers (CSW) using condoms in their last encounter (from a baseline in 1994 of 28%) and 67% of the CSWs also reporting last encounter condom use (from a baseline in 1994 of 35%). Condom sales in the high-risk areas along Nepal's major transport routes, increased to nearly 4.8 million in 1998.
In close collaboration with the U.S. Mission in Nepal, USAID is addressing the issues of trafficking of women and children from Nepal to India and other countries. The Nepal program focuses on the prevention of trafficking at the community level and on protection of trafficked victims in border areas and is closely tied to the GON National Plan of Action against trafficking. Additionally, these activities support the USAID regional program and also coordinate well with the efforts of other donors.
USAID's infectious disease program is establishing a system for surveillance of vector borne diseases and antimicrobial resistance, conducting activities to improve antimicrobial treatment practices, and building capacity to control vector-borne diseases. Extensive baseline assessments are being carried out; training on vector-borne diseases, laboratory skills, surveillance systems and rational drug practices have been initiated; and prevention programs are being developed. The infectious disease program is a part of the South Asia Regional Initiative and includes a variety of cross-border and regional activities to build networks, establish common standards, share information and resources as well as to coordinate cross-border prevention and control.
In FY 2001, the national vitamin A program will be expanded into new districts with a goal of reaching all districts and all of Nepal's children between the ages of 6 months to five years by 2002. This expansion is subject to the availability of funds as noted below.
Possible adjustments to plans: Due to reduced program funds, the PHN program is being streamlined to bring a more focused approach to all activities, while attempting to maintain critically needed impact. However, without the additional funds requested in FY 2001, some of our activities will be scaled back or phased out. For example, the national vitamin A program might be unable to expand beyond 55 districts, leaving 20 districts uncovered. Without assistance from other sources to replace the USAID support for this program, thousands of children will die unnecessarily. The HIV/AIDS prevention program, currently focussed in border areas, will be expanded to respond to recent data indicating that HIV prevalence is increasing in high-risk groups in Kathmandu.
Other donor programs: USAID actively collaborates with other donors in the health sector. These include UNDP, UNFPA, UNICEF, WHO, AUSAID, DFID, JICA, GTZ and the German Development Bank (KfW). UNFPA and USAID work very closely in the family planning program, with UNFPA taking a greater role in Ministry of Health data management and contraceptive procurement. KfW is co-funding the Commercial Retail Sales project that socially markets condoms, contraceptives and ORS. There has been increasing cooperation with WHO on the infectious diseases program for co-funding of workshops and collaboration on activities. The Japanese (JICA) are also interested in future collaboration on this program.
Principal Contractors, Grantees, or Agencies: USAID works with a wide network of contractors, grantees and other agencies. Our principle partners are John Snow Inc. and international NGOs including Save the Children/US, The Asia Foundation, CARE, and the Adventist Development and Relief Agency (for child survival activities); Family Health International/AIDSCAP (for the HIV/AIDS program); the Centers for Disease Control and Prevention, Environmental Health Project of Deloitte, Touche, Tohmatsu, Management Sciences for Health, International Center for Diarrheal Diseases Research/Bangladesh, and United States Pharmacopia (for the infectious diseases program); FHI/Center for Health and Population Research, CEDPA, Access to Voluntary and Safe Contraception International (AVSC), Johns Hopkins University and John Snow Inc./Family Planning Logistics Management (for family planning activities).
Selected Performance Measures: Baseline Actual
(1998)Actual
(1999)Target
(2000)Target
(2001)Target
(2002)Annual Couple Years of Protection for all MOH-supported services 730
(1995)1,029 1,069 1,176 1,293 1,422 Children receiving Vitamin A supplementation on a regular basis 90% 8 districts
(1999)92% 42 districts
70% 52 districts
70% 62 districts
70% 72 districts
70% 75 districts
Children with pneumonia symptoms given appropriate treatment in intervention districts a. correct dosage of antibiotic
b. third-day follow up55% 4 districts
(1995)a. 87%
b. 79%
6 districts60% 8 districts
60% 10 districts
60% 12 districts
60% 14 districts
Condom use by persons with high-risk behaviors in target areas. L= Last use
C= Consistent usea. Commercial Sex Workers
b. ClientsL
a. 35%
b. 34%C
a. 13%
b. 21%(1994)
L
a. 62%
b. 58%C
a. 33%
b. 30%L
a. 55%
b. 45%C
a. 25%
b. 30%L
a. 60%
b. 55%C
a. 35%
b. 40%L
a. 65%
b. 65%C
a. 50%
b. 50%L
a. 70%
b. 75%C
a. 50%
b. 50%U.S. Finance Table (Microsoft Excel)
ACTIVITY DATA SHEET
PROGRAM: Nepal
TITLE AND NUMBER: Increased Women's Empowerment, 367-003
STATUS: Continuing
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $1,900,000 DA
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: -0-
INITIAL OBLIGATION: FY 1995 ESTIMATED COMPLETION DATE: FY 2001Summary: This SO is helping women to improve their own well-being and that of their family and community by offering them an integrated package of literacy, income generating opportunities, and legal rights and advocacy training. The direct beneficiaries are the 130,000 women in 21 districts who are participants in the program. These women will become literate, learn about their legal rights and how to advocate for change, and use newly learned economic skills to increase their household incomes by creating small businesses. The indirect beneficiaries are nearly one-half million family and community members whose well-being will be improved as a result of empowering these women.
In 1995 when USAID began work on this objective, almost 80% of Nepali women could neither read nor write (1991 Nepali Census). Women work on average three hours longer per day than do men, but only 48% of rural women, compared to 70% of rural men, were reported as economically active. While the Nepali Constitution contains guarantees for women, women remain largely unaware of their human or legal rights and participate little in the democratic process. USAID's women's empowerment program provides a road map out of poverty for rural Nepali women, their families and communities.
Empowering women intrinsically ties this objective to promoting the USG interest in developing democracy. The involvement of women in political life promotes democracy and good governance. Women's increased awareness of their rights as human beings will help to reduce problems of women and girl trafficking, as well as eliminate impediments to economic growth such as unchecked population increases. Women's increased involvement in economic life supports broad-based economic growth for the country as a whole with long-term economic impact.
Key results: The program is providing: 1) more than 120,000 women with literacy skills; 2) more than 108,000 women with legal rights awareness and advocacy skills; 3) more than 101,000 women with access to savings and credit services; and 4) 81,000 women with the business skills to increase their contributions to household income.
Performance and Prospects: Performance over the past year has exceeded targets. Though the program targeted 100,000 women to receive all three interventions, grassroots enthusiasm for the program shot the number of participating women above 130,000, and the number of local implementing partners to 245. After less than one year of field implementation (started mid-December 1998), externally collected data demonstrated that the program has had a measurable impact on all three targeted dimensions of empowerment. Women participants: i) talk more with their husbands about key household decisions, and have more confidence in taking decisions themselves; ii) invest more income in savings and productive endeavors, in order to generate income for future well-being; and iii) undertake more collective actions in their immediate villages and are beginning to interact in the broader community. An external assessment concluded that the integrated WEP package is having early impact on the behavioral change in families and communities. This attests to the potential of this powerful set of interventions, with great promise for individual, community, and national development. The GON has recognized the relevance and success of USAID's women's empowerment program and is working to establish their own program based on the WEP model.
130,000 women have completed empowerment literacy training, the first step of the program. 80,000 women are now in the post-literacy legal rights training which provides the women with an understanding of their basic human rights and the skills to advocate for social change. This component of the program includes a unit on trafficking of women and children. By raising community awareness of this issue, WEP is contributing to the mission's bilateral efforts against trafficking and the regional anti-trafficking program.
50,000 women are learning the rules and practices associated with establishing group savings and loan programs, on the way to becoming strong village banks and cooperatives. Village banks are informal community based savings and credit organizations (CBSCOs) managed by the women themselves. The banks are supervised by NGOs that also function as go-betweens that link them to larger sources of credit.
Two other organizations, Save the Children and the Canadian Center for International Studies and Cooperation (CECI), continue to implement supportive economic opportunity activities. These activities are increasing the outreach and sustainability of NGO Grameen banks in Nepal, federating small savings and credit groups of women into sustainable cooperatives, and are supporting profitable microenterprises. At the national level, a Center for Microfinance has been established with USAID funding to promote best practice microfinance through training, research and seminars, donor coordination and policy reform on financial intermediation.
Possible Adjustments to Plans: Given the strong initial impact of this program, USAID will ensure that the current activities are completed as planned by Sept. 2001. Some expenditures are expected in 2002. A completed program will provide a replicable model for future programs and a tested basis for synergies between the SOs.
Other Donors Programs: USAID coordinates the donor group on gender issues. Participating members of this group are the UN (UNDP, UNICEF, WHO, FAO), the World Bank and the Asian Development Bank, DFID, DANIDA, GTZ, CIDA, SNV, SDC and FINIDA.
Principal Contractors, Grantees, or Agencies: Current grantees are Pact, TAF, Save the Children, and CECI.
Selected Performance Measures: Baseline Actual
(1998)Actual
(1999)Target
(2000)Target
(2001)Women who are literate at a basic level (cumulative, in SO3-sponsored program) 0
(1994)456,000 545,000 n/a n/a Women who become active members of savings and credit groups (cumulative) 11,037
(1996)88,000 101,000 120,000 n/a Women saving and credit group members who begin or expand a microenterprise (cumulative) 5,600
(1998)13,000 20,000 48,000 81,000 Women who know their basic legal rights (cumulative) 300
(1994)86,000 100,000 145,000 190,000 U.S. Finance Table (Microsoft Excel)
ACTIVITY DATA SHEET
PROGRAM: Nepal TITLE AND NUMBER: Increased Private Sector Participation and Investment in Environmentally and Socially Sound Hydropower, 367-004 STATUS: Continuing PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $1,200,000 DA PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $2,500,000 DA INITIAL OBLIGATION: FY 1998 ESTIMATED COMPLETION DATE: FY 2001Summary: Nepal's tremendous hydropower potential, believed to be over 80,000 Megawatts (MW), provides the most promising economic growth opportunity for the country and a source of clean energy for the region. This program is designed to help the GON improve the policies and procedures for hydropower investment and to strengthen the capacity of Nepal's lead institution for promoting private investment in hydropower -- the Electricity Development Center. Besides encouraging investments, the program will strengthen local capabilities to ensure that investments are environmentally and socially sound. Program results to date are laying the foundation for continued improvements in the policy and regulatory framework for private development of Nepal's hydropower potential.
This special objective supports the U.S.G. goals of reduced global warming and a sustainable world environment. Hydropower development provides a clean, renewable, and environmentally friendly source of power to an energy hungry region while promoting U.S. business. At the same time, hydropower development will reduce Nepal's dependence on foreign donors, improve the quality of life in Nepal, and strengthen regional cooperation.
Currently, fewer than 15% of Nepal's 23 million people have electricity and Nepal currently cannot meet even its relatively low peak electricity demand of 308 MW. Nepal's demand for power is outstripping supply by more than 30 MW (8.3%) per year, and the domestic energy demand is expected to nearly double by 2005. India is a good potential market for Nepal's excess hydropower as it is experiencing critical energy shortages and is dependent upon environmentally unsound means of generating power.
Key Results: Two key results will indicate that this objective is been achieved: 1) the number of private sector companies progressing towards hydropower development will increase from 2 (1997) to 5 in 2001; and 2) strengthened local capabilities so that private financial commitments for environmentally and socially sound hydropower investment increase from $238 million (1997) to $475 million in 2001.
Performance and Prospects: To help Nepal tap its tremendous potential for private sector investment in hydropower development, USAID provides training and technical assistance to the GON's Electricity Development Center to 1) improve the "one window" facility for investment; 2) monitor investor compliance with social and environmental mitigation requirements; 3) increase use of competitive contracting procedures; and 4) improve Nepal's capacity to negotiate and sign equitable power purchase agreements and power supply contracts with international and local private power developers.
For several years, USAID has been playing a critical role in helping Nepal develop an investment environment which has been able to attract several hundred million dollars of private and other donor investments in hydropower development. (In the single largest American investment in Nepal, $95 million was invested by Panda Energy International, Inc. of Texas and Harza Engineering of Chicago in the Bhote Koshi Project.) Recognizing that continued assistance was needed in this sector to build on prior USG investments, USAID signed a three-year $4.3 million Hydropower Special Objective Agreement with the GON in December 1997.
To bolster environmental and social soundness of hydropower investment, USAID is strengthening local capability to conduct social and environmental impact assessments. The number of public hearings for hydropower projects conducted with local stakeholders and NGOs increased from four to nine during the same period reflecting more rigorous environmental and social impact assessments being conducted with USAID assistance.
Implementation progress continues to be robust despite minor setbacks resulting from the frequent changes in government and delays in approval of the World Bank's new Power Development Fund (PDF). Nevertheless, several important milestones were achieved in the last 17 months. These include commitments by three more Independent Power Producers (IPPs) for projects valued at $65 million, bringing the total private investments to over $303 million to date. The program encourages more public hearings in the investment process thereby improving transparency and assuring that needs of local residents are heard and addressed.
USAID also supports a U.S. Energy Association (USEA) partnership program through which USEA will help U.S. utility companies develop long-term cooperative relationships with the Nepal Electricity Authority and in the future with Nepal's first private utility company. This will promote the transfer of the U.S. energy industry's best technologies to the Nepali utilities as well as provide long-term business opportunities to U.S. companies.
Possible Adjustments to Plans: The Mission is proposing to convert the hydropower development program from a special objective to a strategic objective. This will address the long-term energy needs of Nepal as well as support the South Asian Regional Initiative on Energy (SARI/E) which will be launched in FY 2000. Regional cooperation and trade in clean energy offers great potential for advancing sustainable economic development in South Asia, and significant investment opportunities for domestic and U.S. private companies. It will also address the issues of global warming through clean energy exports from Nepal to the polluting regions of South Asia. A critical assumption of SARIE is the continuation of the bilateral energy programs which will address the issues of energy sector reforms, institutional strengthening and regulatory frameworks.
0ther Donor Programs: USAlD has participated substantively in discussions with the World Bank and the GON regarding the World Bank's new Power Development Fund (PDF) which will be in place by 2001. USAID consultants will assist the GON in completing the implementation guidelines for the PDF, the model Request for Qualifications and other PDF design documents. The PDF and the USAID program will be mutually supportive in the development of hydropower in Nepal. The PDF will provide $175 million in funds -- $100 million to leverage private investments at an expected ratio of 3:1, and $75 million to improve Nepal's power transmission and distribution system. The Asian Development Bank is proposing to complement this effort by funding transmission, distribution and rural electrification schemes. NORAD (Norwegian Aid), the United Nations Development Program and GTZ (German Aid) are addressing off-grid electrification by implementing micro-hydro projects.
Principal Contractors, Grantees, or Agencies: Current partners are the Ministry of Water Resources (Electricity Development Center), International Resources Group, Ltd., and the United States Energy Association (USEA).
Selected Performance Measures: Baseline Actual
(1998)Actual
(1999)Target
(2000)Target
(2001)Target
(2002)Private Financial Commitments for Hydropower Project Development (Millions of US$) 238 278 325 400 475 550 Private Sector Projects Progressing Towards Hydropower Investments (Cumulative Number) a) Survey license issued
b) Financial closurea) 2 b) 2
a) 5 b) 2
a) 4 b) 3
a) 5 b) 4
a) 6 b) 5
a) 7 b) 6
Number of Environmental/Social Impact Assessments for Hydropower Proposals 2 3 4 5 6 7 Number of Public Hearings for Hydropower Projects Conducted with Local Stakeholders and NGOs 4 5 7 9 11 12 U.S. Finance Table (Microsoft Excel)
 |
|||
Last Updated on: November 17, 2000 |
