Nepal, World Bank Pens NPR 9.3 Billion Project to Boost Agriculture Sector!

The Nepali Government and the World Bank penned an NPR 9.3 billion (USD 80 million) worth ‘The Rural Enterprise and Economic Development (REED) Project’ to boost the country’s agricultural sector.

Nepal’s Finance Secretary Sishir Kumar Dhungana and the World Bank Country Director for Nepal Faris Hadad-Zervos signed the project on Monday.

“We thank the World Bank Group for providing crucial support which will enhance access of rural enterprises and small-hold producers to markets and institutional buyers. Promoting agribusiness competitiveness with sustainable market linkages will be critical to boosting Nepal’s post-COVID recovery,” said Sishir Kumar.

Objectives and Aims of the REED Project:

• Strengthening rural market linkages and promoting entrepreneurship
• Creating jobs in the agricultural sector to support post-COVID-19 recovery
• Facilitating partnerships between rural producer organizations and private-sector buyers
• Boosting provincial and local governments, intermediary organizations, and SMEs to strengthen entrepreneurship ecosystem in the agriculture sector
• Ensuring availability of farm inputs by financing investments in municipal agriculture centers and value chain infrastructures
• Initiating Cash for Work mechanism in short-term public works

The project mainly focuses on five economic corridors across Province 1, Province 2, Gandaki, Bagmati, Lumbini, and Sudurpaschim that facilitate successful linkage activities of the rural entrepreneurs.

“The project brings a unique opportunity to transform Nepal’s agriculture sector and spur economic recovery from the pandemic’s fallout by bolstering rural enterprises and creating local jobs and opportunities,” said Faris.

Our $80 million Rural Enterprise & Economic Development project signed today with the government will help boost #Nepal’s agriculture sector. It will strengthen rural market linkages, promote entrepreneurship & create jobs to support post-COVID recovery.https://t.co/09zSREzO6z pic.twitter.com/5qdKwePwTl

— Faris H. Hadad-Zervos (@WorldBankNepal) December 21, 2020

“By fostering meaningful collaboration among various actors, the project can promote Nepali agriculture products globally by stimulating many niche sectors such as coffee, tea, fruit, and medicinal products, among others.”

The REED project also supports the ‘2015–2035 Agriculture Development Strategy’ to create a sustainable, competitive, inclusive, and resilient agricultural sector with private sector participation.

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