Nepal Peace Trust Fund to enter new phase

The Ministry of Peace and Reconstruction (MoPR) is all set to start a new phase of support for Nepal’s peace process through the Nepal Peace Trust Fund (NPTF).


The NPTF was created in 2007 after the Comprehensive Peace Agreement. Led by the MoPR through its Peace Fund Secretariat, as a platform for dialogue between the government and donors it has combined government and donor funding to support Nepal’s transition from civil war to peace The NPTF has enjoyed major success, notably projects for the management of the cantonments for Maoist combatants, the re-establishment of the presence of the Nepal Police across the country, and the holding of national elections in 2008 and 2013.

“Upcoming projects will be mutually agreed between the government and the fund’s donors in four focus areas (1)  Conflict Affected People as defined by the government; (2) Access to Security, including improved police service delivery, (3) Transitional Justice in compliance with Nepal’s international and national commitments, and (4) the Constituent Assembly, elections and peace building initiatives,” the European Union in Nepal said in a press statement.


The new Joint Financing Agreement will be signed by the Government of Nepal, the European Union and the United States of America. The other NPTF donors to date (Denmark, Finland, Germany, Norway, Switzerland and the UK’s Department for International Development) will continue their support for peacebuilding in other areas through different mechanisms. Their diplomatic support for concluding a peace process that reinforces Nepal’s democracy and protects fundamental rights is undiminished.


“The NPTF has been a vital instrument for Nepal’s transition to peace,” said the head of the European Union delegation, Rensje Teerink, who is the chair of the donor group to the Fund. “The new phase will channel government, EU and USAID funds to priorities agreed with the Government in the interests of the ongoing peace process. Such work will need to comply with international standards as well as recent rulings of the Supreme Court in relation to transitional justice.”


The embassies of Denmark, Finland, Norway, and Switzerland, and the UK’s Department for International Development in Nepal, reaffirmed their maximum support to broader peacebuilding, and jointly stated that: “Our priority remains to support long term peace in Nepal through shared prosperity, greater equity, democratic development and the protection of human rights. We will continue to assist the Government and other stakeholders outside the NPTF to help deliver the long-term commitments of the Comprehensive Peace Agreement.”


The Nepal Peace Trust Fund has been financing projects of government ministries and agencies since 2007. Between its inception and January 2014, the Government of Nepal has provided NPR 11.3 billion and its eight donors have contributed NPR 9.3 billion, giving a combined total of NPR 20.6 billion (about 208.6 million US dollars). Under the terms of the new JFA, the Fund is scheduled to close in July 2017.

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