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A Brief introduction to Poverty Alleviation Project in Western Terai ( INFAD Loan 452-NP)

Introduction :

Poverty Alleviation Project in Western Terai, (PAPWT) came into being as a result of an agreement concluded between His Majesty's Government of Nepal, (HMG/N) and international Fund for Agricultural Development, (IFAD) on December 12,1007. The Loan became effective from March 10, 1998. The seven-year PAPWT cost is US $ 9.7m., of which us $ 8.866m. is being provided from IFAD SOFT LOAN, US $ 0.09m. from the Agricultural Development Bank of Nepal (ADB/N). The project is expected to be completed by 31 December 2004.

THER PROJECT AREA:

The Project is located in the Western, Mid-Western and and-Western Development regions covering eight administrative districts of Nawalparasi, Rupandehi, kapilvastu, Dang, Banke, Bardiya, Kailali and Kanchanpur.

OBJECTIVES:

The overall objective of the project is to increase and improve the welfare of small farmers, the landless and rural women in the project area. It also aims at the improvement of the financial viability and sustainability of selected credit service providers for others to follow in future.

MAJOR ACTIVITES.

The project consists of the following five components:
· Credit Services
· Extension and Skills Training
· Community Development
· Group Shallow Tubewell
· Institutional Strengthening.

TARGET GROUP:
The following disadvantaged population of the project area are defined as the target group of the Project:

  • Those households in the project districts with an estimated annual income of not more than NRs. 2,500/- per capita (in 1995 prices) and less than one bigha of land in Terai adn 20 ropanis of land in the Hills.
  • Women members of the same households as mentioned above for credit services only.
  •  

PROJECT TARGET:

The following reflects some of the major targets to be completed by the Project during the seven years period.

Components Programmes Units Years Total
1 2 3 4 5 6 7
1. Credit Services A. Sustainable GBR Branches branches 4 6 6 - - - - 16
b. Micro credit courses courses 8 16 16 16 16 16 8 96
II. Shallow Tubewells a. Group STWS no. - 46 141 187 187 231 143 935
b. Pump Sets no. - 10 30 40 40 40 40 200
c. Roar Pumps no. - 10 40 50 50 50 - 200
III. Extension and Skills Training a. Agri. Ext. Programmes no. 160 280 280 280 280 280 160 1720
b. Skill training no. 32 56 56 56 56 56 32 344
Iv. Community Development a. Roadside Planning  km - 50 200 400 600 800 - 202
b. Woodlot forests ha. - 25 100 200 300 400 - 1025
c. culverts no. - 10 20 20 20 20 - 90

NB. The above targets are subject to modifications as HMG and IFD may agree upon from time to time on the basis of demand from the beneficiaries to achieve the specified objectives. Specifically, under the part IV Community Development activities in addition to (a) (b) and (c) the details of the program will be determined during implementation in line with the expressed needs of the communities and their capacity to participate.

NUMBER OF BENEFICIARIES:
The number of population mentioned below will be taking benefits directly/indirectly from the Project activities.

Components

Number of beneficiaries

Credit Services

28833  women

STWs

5875    small farmers

Ext. Training

23000 beneficiaries

Community Development

51000 beneficiaries

Total

108708 population or households

INNOVATIVE ASPECTS OF THE PROJECTS:

  • The Project follows group development approach that is considered as one of the most successful social development approaches in the third world.
  • This project happens to be the first one with PVERTY VALLEVIATION caption in Nepal.
  • One of the major objectives of the Project is to improve the financial viability and sustainability of selected credit services providing branches of GBRs.
  • Local entities such as DDCs, BDCs, line agencies and NGOs will be playing a decisive  role in programme formulation, implementation and monitoring and evaluation of the project activities.

RESOURCE  ALLOCATION ADN EXECUTING AGENCIES:
in 000' US 

Components

Cost

Percentage

Responsible Agencies

Credit Services

3615

37.2

NRB and GBRs

STWs

2710

27.9

ADB/N

Ext. and Skills Training

1071

11.0

PMU/DDC/Line agencies & NGOs

Community Development

1913

19.7

PMU/DDC/Line agencies and NGOs

Institutional Strengthening

421

4.3

PMU

Total

9730

100

 

Abbreviations: 

NRB  = Nepal Rastra Bank
ADB/N  = Agricultural Development Bank of Nepal
PMU  = Project Management Unit
DDC  = District Develpment
NGO  = Non-Governmental Organization

THE STEERING COMMITTEE

 This unit is housed at the building (complex) of the Local Development Training Academy, (LDTA) Jawalakhel. It serves as Secretariat to the PSC adn manned by a project Manager, Assist Project Manager, two other Officials and Clerical Staff mostly deputed from among the MLD regular cadres.  This unit has overall responsibility of coordination, formulation of the annual work plan and budget, monitoring and evaluation, administration of loan proceeds together with liasoning with IFAD and UNOPS, the loan and executing agencies respectively.

 DISTRICT CO-ORDINATION COMMITTEE:

 District Co-ordination Committee, (PDCC) is set up under the chairmanship of the District Development committee Chairperson. Other members are representatives from various organizations including DDC members, line agency chiefs, GBRs, NGO staff and beneficiaries with the LDO as Member Secretary. This committee plays a crucial role in formulating district level policy framework as well as approving annual work plan and budget, implementation adn monitoring and evaluation of project activities at the district level.

Besides, a District Working Group is formed which serves as a technical unit for the PDDC.