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European Union, DFID extend EUR 16.5 million (NPR approx 1.8 billion) grant assistance to Nepal Government for 'Nepal Climate Change Support Programme'

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The Government of the United Kingdom of Great Britain and Northern Ireland, acting through the Department for International Development ("DFID"), and the European Union have agreed to provide a grant assistance of EURO 16.5 million (equivalent to NPR 1.8 billion) to the Government of Nepal for the implementation of the Nepal Climate Change Support Programme: Building Climate Resilience in Nepal. Out of the total grant assistance of EURO 16.5 million, the Government of the United Kingdom will provide EURO 7.9 million and the European Union (EU) will provide EURO 8.6 million.

In this regard, the Memorandum of Understanding between the Government of Nepal and the Government of the United Kingdom, was signed today at the Ministry of Finance, Kathmandu, Nepal. The agreement between Nepal and the EU was already concluded on 26 December 2011.

The goal of the Nepal Climate Change Support Programme (NCCSP) is to enable Nepal's poorest and most vulnerable communities to adapt to the effects of climate change, by supporting local level adaptation programme in the most climate vulnerable districts of the Mid and Far Western regions of Nepal. This program will assist the Government of Nepal to implement its Climate Change Policy, 2011 and develop and implement necessary strategies and most urgent and immediate adaption actions that increase the benefits and sustainability of public as well as public-private development efforts. More specifically, NCCSP will assist Nepal to implement the adaptation priorities as identified in the National Adaptation Programme of Action (NAPA) document which was approved in 2010. It will also help the Government in developing climate change responses and technical competency. The NCCSP will also contribute towards reducing poverty by focusing on the poorest and most vulnerable people, particularly women and girls. The Climate Change Policy 2011 and NAPA 2010 commit to channel 80 percent of the total funds for field level activities. This NCCSP will use the National Framework for Local Adaptation Plan for Action (LAPA) recently approved by the Government of Nepal with the objectives of implementing adaptation actions at the local level, and integrating climate adaptation in the planning process.

The Ministry of Environment (MoE) shall extend the necessary guidance and support to the Programme and ensure collaboration of the local bodies and line agencies. The NCCSP project will be implemented by the Ministry of Environment in coordination with the Ministry of Local Development and its local units. The programme will run until 31 March, 2015.

The MoU was signed by Mr. Krishna Hari Baskota, Secretary, Ministry of Finance and Mr. Dominic O'Neil, Head of DFID, Nepal on behalf of their respective Governments, in the presence of the EU Delegation to Nepal.

The Government of Nepal has expressed its sincere appreciation to the British Government and the Delegation of the European Union to Nepal for this assistance and also for the continued support in the socio-economic development of Nepal.

Ministry of Finance
Singha Durbar, Kathmandu
January 10, 2012