U.S. Government Provided $160 Million in Assistance in 2016

January 26, 2017

Kathmandu – The United States Government announced today that it provided $160 million in assistance in 2016 to improve health, education, environment, agriculture, earthquake reconstruction and governance in Nepal.

Approximately $133 million of these funds are managed by several U.S. departments and agencies operating in Nepal, including the U.S. Agency for International Development (USAID); the U.S. Departments of Defense, Agriculture, and State; the Millennium Challenge Corporation (MCC); and others.

In addition, $27 million of these funds were provided through the U.S. Department of Defense to enhance Nepal’s disaster response and strengthen its ability to participate in United Nations Peacekeeping Operations globally.

Key highlights of U.S. foreign assistance in Nepal in 2016:

In support of Nepal’s high priority earthquake reconstruction activities, the U.S. Embassy confirmed that its 2016 assistance included $41 million for earthquake reconstruction. This amount is above and beyond the $130 million in immediate post-earthquake assistance pledged and provided in 2015 for relief, recovery, reconstruction and preparedness efforts. This assistance will help to rebuild schools and hospitals and provide training and technical assistance for construction professionals and homeowners on earthquake-resistant homes. The funding will also be used to improve water supply, sanitation, and hygiene conditions in the most earthquake-affected districts.  In addition, the U.S. Government, through the Department of Defense, provided $18 million in 2016 to provide fixed-wing aircraft to the Nepalese Army to assist with disaster response efforts.

The U.S. Government’s Millennium Challenge Corporation (MCC)provided $10 million in July of 2016 to evaluate projects for funding in the electricity transmission and road transport sectors. The final size of a next phase, multi-year assistance “Compact” between MCC and the Government of Nepal, will be decided later this year.

Ninety-five percent of U.S. assistance in Nepal is awarded to international and local organizations through competitive processes and is regularly subject to financial and performance audits. MCC procurements are done through international competitive bidding with no preference to local or U.S. firms.

This year marks the 70th anniversary of the bilateral relationship between the United States and Nepal with events and programs planned throughout the next twelve months in partnership with the Government of Nepal, civil society, and the private sector.

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In Nepali ( PDF 240KB)