Description: 

A climate change program seeking to enhance agricultural productivity of rice, maize, and sugarcane, while strengthening Nepal’s private sector capacity for climate change risk management.

Background:

As the world’s fourth most climate vulnerable country, Nepal is highly exposed to a range of water related hazards such as floods, droughts and landslides. With electricity demand increasing at 9% per annum, and a highly vulnerable agriculture sector that employs two thirds of its population, the Government of Nepal recognized the necessity of addressing climate change.

In 2012, CIF allocated $8.7 million for the Building Climate Resilient Communities through Private Sector Participation program. The program will seek to promote climate resilient agriculture, strengthen vulnerable hydroelectric infrastructure, and conduct a feasibility study for low cost climate resilient housing in Nepal. The IFC, the implementing agency for the project, aims to address barriers that prevent the private sector from fully investing in climate resiliency. The total program cost is $14.4 million, with an anticipated completion by March 2029.

Objectives and Outputs:

The objectives of the program are to promote climate resilient agriculture, strengthen vulnerable infrastructure, and conduct a feasibility study for affordable climate resilient housing. The program will provide technical assistance on enhancing productivity of rice, maize, and sugarcane, along with water resource management and private finance. Private financing will reinforce hydroelectric plants for resiliency against glacial lake outburst floods and river runoff. The IFC seeks to leverage additional private investment for climate-resilient growth through this program.

Direct beneficiaries of the project include 15,000 smallholder farmers, Nepal’s agricultural sector, as well as climate vulnerable communities that will benefit from new technologies and a more reliable electricity supply. Women, who make up 85% of the agriculture sector, will benefit from climate resilient agriculture training.

Program implementation is currently underway, with 4,407 smallholder farmers trained in cultivation of rice, maize, and sugarcane as of May 2015. The training has been divided in two modules, with each module specified to the different stages of the crops’ cycles. Exposure visits are being conducted after completion of each module, with at least 30% of farmers to increase the adoption of climate resilient technologies. The program is expected to be complete by March 2029.

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.

Project Details
Project Document | MDB Project Implementation Services (MPIS) | Proposed Decision
Approved on September 10, 2012 (Approved Decision)
Approved amount(s):
USD 8.7 million (grant funding)
USD 400,000 (MPIS) 

Comments and Responses:
United Kingdom (August 30, 2012)
Germany (August 31, 2012)

Project Preparation Grant
Project Preparation Grant Proposal (Page 72)
Approved on June 29, 2011 (Approved Decision)
Approved amount(s):
USD 300,000 (PPG)