Donor Support: Comprehensive Peace Agreement
10.8. We sincerely request the international community including all friendly countries and the United Nations to extend support to Nepal in the campaign of establishing a full-fledged democracy and lasting peace.
The 2006 CPA does not specifically ask for financial support. Nevertheless, countries, international donors and UN agencies are all providing funding to establish a full-fledged democracy and lasting peace in Nepal. No information is available regarding the extent of donor support in 2006.
In February 2007, the government initiated the Nepal Peace Trust Fund (NPTF) and earmarked one billion Nepalese Rupees (NPR) from the Government to this fund. This initiative was designed to provide a mechanism for interested donor agencies and governments to contribute to the peace process by providing additional funding. In this regard, the United Kingdom, Norway, and Switzerland signed an agreement with the government and agreed to jointly contribute to the Fund.1 The size of the fund, however, was not revealed. In March 2007, Nepal met with bilateral and multilateral donor agencies. In the meeting, multilateral and bilateral donors agreed to extend assistance towards reconstruction, rehabilitation, and the peace process in Nepal, in an integrated manner.2 In August, Nepal's donors agreed to give more than 2bn rupees.3 In December 2007, the UN Secretary General declared that Nepal was eligible to receive assistance from the United Nations Peacebuilding Fund (UNPFN).4 The UNPFN was complementary to the NPTF. The NPTF was designed to last until 2010. The peace fund was designed to channel resources in four different clusters: Cantonment Management and Rehabilitation of Combatants, Conflict Affected Persons and Communities, Security and Transitional Justice and Constituent Assembly & Peace Building Initiatives at National & Local Levels.5 As of 15 January 2008, a total of 57.21 million USD was committed and about 43.30 million USD was received. This includes USD 26.8 million from the Nepal government and USD 16.51 million from donor countries like UK, Norway, Finland, Denmark and Switzerland.6
- 1. "UK donates for Nepal's Peace Fund," BBC Monitoring South Asia, February 27, 2007.
- 2. "Donors express commitment to provide assistance to Nepal," Xinhua General News Service, March 11, 2007.
- 3. "Donors pledge over 30m dollars for Nepal peace process," BBC Monitoring South Asia, August 11, 2007.
- 4. "Secretary-General Declares Nepal Eligible for UN Peacebuilding Fund," States News Service, December 28, 2007.
- 5. "Nepal Peace Trust Fund (NPTF)," accessed August 2, 2012, http://www.nptf.gov.np/.
- 6. "Second Four-Monthly Progress Report, Ministry of Finance," Nepal Peace Trust Fund, 2008.
In March 2008, the DFID provided seven million GBP for peace and human rights in Nepal.7 In April, the United Kingdom announced a grant of 14 million dollars to support Nepal's elections scheduled for April 10. The funding was said to go to the government's Nepal Peace Trust Fund, the UN Peace Fund, and the UN Office of the High Commissioner for Human Rights.8 In September the UN approved $10 million from its Peace Fund to support Nepal’s peace process.9 As of 15 January 2009, the NPTF had received USD 101.36 million including USD 30.81 million from the government of Nepal.10
- 7. "DFID: GBP7 million for peace and human rights in Nepal," M2 PressWIRE, March 12, 2008.
- 8. "UK provides $14 million to Nepal," United News of India (UNI), April 5, 2008.
- 9. "UN approves funds to support Nepal peace consolidation," BBC Monitoring South Asia, September 10, 2008.
- 10. "Fifth Four-Monthly Progress Report, Ministry of Finance," Nepal Peace Trust Fund, 2009.
As the peace process dragged on, the NPTF in its action place estimated a fund of USD 795.2 million (258.1 from government of Nepal and 537.1 from donors) to put towards projects in different four clusters.11 By the end of 2009, the NPTF had received USD 31.23 Million from donor countries and the government of Nepal had contributed USD 42.47 million in the peace fund.12
By mid November 2010, 20 different projects were designed in the cluster of Cantonment Management and Rehabilitation of Combatants, of which 14 were completed. In the second cluster of Conflict Affected Persons and Communities two different projects were ongoing. In the third cluster of Security and Transitional Justice, two different projects were ongoing. In the forth cluster of Constituent Assembly & Peace Building Initiatives at National & Local Levels, 11 different projects were initiated, of which eight were completed. By the end of November 2011, Germany, Denmark, Finland, UK, Norway, Switzerland and the European Union disbursed 3216.31 million NPR whereas the government of Nepal contributed NPR 5047.40 million.13
By the end of 2010, the UN Peace Fund for Nepal (UNPFN) had disbursed a total of USD 32 million through 17 projects. These included the Program Support for Children and Adolescents Formerly Associated with the Maoist Army in Nepal, the Support to Female Members of the Maoist Army, and the Jobs for Peace. About 12,500 youth were employed and empowered through an integrated approach and Transitional Justice Project.14
The first phase of NPTF was completed in 2010 but the peace process was not. As a result, a second Joint Financing Arrangement (JFA) was signed in 2010, which was to last until 2013. Out of 40 different projects in four different clusters, 24 projects were completed. There were 16 different ongoing projects.15
- 15. "12th Four-Monthly Progress Report, Ministry of Finance," Nepal Peace Trust Fund, 2011.
By July 2012, the NPTF funded 49 total projects in four different clusters of which 24 are completely finished. There are seven ongoing projects in Cantonment and Rehabilitation of Combatants cluster with funding of 5288 million NPR, four projects in Conflict-Affected Persons and Communities cluster with funding of 1066 million NPR, seven projects in Security and Transitional Justice cluster with 3845 million NPR and seven projects in Constituent Assembly and Peacebuilding cluster with 3612 million NPR. Altogether there are 18 projects in preparation.16
As of June 2015, the Nepal Peace Trust funds continues to receive support from donor countries for peace related activities. The Multi Partner Trust Fund is expected to close by December 2015. For the duration of its activities between 2007 and 2015, the UN Peace Fund provided USD 26,772,355.02 to support peace processes in Nepal.21