WB approves USD 80 million loan

Kathmandu / Dec 8: The World Bank has approved a US$80 million (approximately 8 billion rupees) loan for a Livestock Sector Innovation Project. The project will support the objectives of the Government of Nepal’s Agriculture Development Strategy (ADS, 2015) which underpins the role of livestock for sustained agriculture and economic growth, poverty reduction, and improving food and nutrition security.

At least 200,000 livestock producers across 271 Municipalities will directly benefit from the project. At least 45 percent of the primary beneficiaries will be women. In addition, about 500 small and medium-sized agro-enterprises will benefit from production and post production value chains.

Of Nepal’s population engaged in agriculture, 70 per cent keep livestock. But productivity remains low. The demand for livestock and livestock products, particularly milk and meat, has outstripped supply. Nepal’s average annual imports correspond to a bill of about US$40 million.

The project will channel its support through three main channels: (i) creating an enabling regulatory and institutional environment; (ii) enhancing livestock productivity by improving the quality and quantity of livestock services; and (iii) strengthening key strategic livestock value chains and improving access to business development services.

The project will also help address poor practices in the livestock sector that lead to high greenhouse gas emissions and other environmental impacts. It will also support an emphasis in the ADS on increased resilience to climate change as a cornerstone for improved productivity of land and labor. RSS