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Nepal Overview

Overview | Approved Projects and Progress Updates | Reports

Nepal is in a critical transition phase after a decade long internal conflict claiming more than 13,000 lives. The signature of the Comprehensive Peace Agreement (CPA) in November 2006 brought a halt to the fighting between the two armies, although neither considered themselves defeated. The period between the CPA and the Constituent Assembly (CA) election in April 2008 sustained the ceasefire while the foundations of a political agreement were being forged. The peace process in Nepal is owned by the people and despite several attempts by different actors to derail it; there has been remarkable progress in significant areas of the CPA. Achievements include maintaining the ceasefire, abolishing the monarchy and moving to a federal democratic republic.

However, Nepal faces a range of immediate political and economic challenges. These include integrating two armies, drafting a new Constitution, addressing rising food and fuel prices, engaging the large numbers of unemployed youth in constructive development efforts, prosecuting the perpetrators of serious human rights abuses, protecting and compensating victims of conflict, investigating disappearances, reintegrating ex-combatants and returning displaced persons to their homes. All of this while addressing the complex issue of re-establishing local government, resolving disputes over expropriated land and property and starting a process of national and local reconciliation. The peace process in Nepal is thus both front-loaded and fragile.

Following the signing of the CPA a government-led multi-donor trust fund, the Nepal Peace Trust Fund (NPTF), was established as a collective financing mechanism for peace building. Immediately afterwards, the United Nations Peace Fund for Nepal (UNPFN) was set up as a complementary instrument to the NPTF. It finances initiatives where the UN can add value in thematic areas, particularly through cross agency support, and by piloting innovative approaches. The two funds nonetheless share the same Governance structure and priority areas.

It was on this basis that the Secretary General in December 2007 declared Nepal eligible for funding from the second window under the Peacebuilding Fund. The decision was based on the need for funding to sustain the peace process with flexible and rapid actions using the agreement between the UN, the Government and other actors on peace building priorities, and the use of the UNPFN as the mechanism for channelling fast disbursing UN support to peacebuilding.

The Peacebuilding Fund has allocated $10 million in support of the Nepal PBF Priority Plan.

Nepal PBF Priority Plan

In the preparation of the Nepal PBF Priority Plan, consultations were carried out with government, donors, UN agencies and civil society to develop a shared understanding of the new challenges the peace process is facing and the need for continued targeted support to focus areas. Consulted stakeholders found that the UN using its neutrality together with its ability to do cross agency programming is well placed to support key areas of the peace process. The UN will in the implementation of PBF support, collaborate closely with the government, civil society, and donors to reflect shared priorities, avoid overlap, and to link with related initiatives.

The Nepal Priority Plan identifies the following three priority areas:

  • Strengthening State Capacity for Sustaining Peace
  • Community Recovery
  • Conflict prevention and reconciliation

News

First batch of PBF projects approved in Nepal
Kathmandu, August 2009 - The UN Peace Fund for Nepal Executive Committee has approved the first four projects to be funded through the PBF contribution to Nepal. Further information on the projects is available here.

Secretary-General declares Nepal eligible for PBF
New York, 28 Dec 2007 – The Secretary-General Ban Ki-moon declared today that Nepal is elibible to receive assistance from the PBF.