European Union provides approx. NPR 2.2 billion (22 million EURO) to Nepal Peace Trust Fund (10/07/2011)

The European Union and the Government of Nepal (Ministry of Finance) signed a financing agreement for a grant of NPR 2.2 billion (22 million EURO) to be channelled via the Ministry of Finance, Government of Nepal for  peace related activities to be implemented under the Nepal Peace Trust Fund (NPTF).

Supporting peace and fostering stability is one of the major activities of the European Union in all parts of the world, which is guided by the desire of all EU Member States to make the peace process irreversible and to consolidate stability and development. 

A forerunner support of NPR 0.6 billion (6 million EURO) has been already allocated under the European 'Instrument for Stability', established for the promotion of human rights, democracy and fundamental freedoms in third countries. 

The present additional contribution to the Nepal Peace Trust Fund is financed by the European Union Development Cooperation Instrument, and is aimed to build on the achievements in the consolidation of the peace process in Nepal, supporting and facilitating the implementation of the Comprehensive Peace Accord (CPA) of November 2006.

The activities under the programme include providing compensation to conflict-affected and internally displaced persons and their families, as well as supporting their reintegration into society; promoting and strengthening general safety and security ; restructuring physical infrastructures; supporting Constitution-building and future elections; supporting Transitional Justice institutions; supporting the cantonment sites of former PLA combatants; and providing capacity building for implementing actors both at the central and local level. The duration of the Programme is three years.

The financing agreement was signed by Mr. Krishna Hari Baskota, Secretary, Ministry of Finance and Mr. Dir Meganck, Director, Directorate Asia and Central Asia, Development and Cooperation Directorate-General of the European Commission, Brussels Belgium, on behalf of the Government of Nepal and the European Union, respectively on the 8th of July, 2011.

The Government of Nepal has expressed its sincere appreciation to the European Union for the assistance as well as for its continued support in the socio-economic development of Nepal.