Nepal Economic, Agriculture, and Trade (NEAT) Activity

June 13, 2011

Dr. Brahma Bhakta MathemaDeputy Chief of Party &Dr. Deva Bhakta ShakyaManager, Business Enabling Environment

Key Project Details

Contract Period: December 2010-June 2013 Geographic scope: Nationwide Total staff: 160

– Kathmandu: 30– Field: 130

Target Population: 50,000 households; 300,000 people

NEAT Objective

Increased Economic Opportunities and Food Security Enhanced

1. Economic Policies Strengthened

2. Competitiveness of Selected Sectors Increased

3. Food Security Enhanced

4. Access to Microfinance Services Increased

Support Program activitiesComponents Activities

Strengthening Business Enabling Environment

Advocacy and Improvement of information distribution to facilitate business growth

Improving Trade Policies and Practices

Improving Fiscal Polices and Practices Addressing production, processing and marketing constraints Strengthen relationships between lead farms, SMEs and Micro-entreprises Improve Policies constrainining value chain competitiveness Increase Agriculture Productivity and Production Development and dissemination of Agricultural innovation

Improving Microfinance Policy Strengthening Capacity of Microfinance institutions

Fiscal and Trade Policies

Business Enabling Environment

Food security

Competitiveness

Microfinance

Collaborative Partner Government Agencies

Line Ministry Support activities

Transparency in customs check points; strengthen risk management and post clearace adudit system; customs valuation standardization

Simplification of the tax payment system and capacity building at IRD

Build analytical and trade research capacity of MOCS staff; Support development of trade negotiation agenda

Implementation of Competition Promotion and Market Protection Act

Ministry of Commerce and

Supplies

Ministry of Finance

Improving Policy and legal provisions constraining value chain competivenessAssist with the amendment of the Foreign Investment and Technology Transfer Act of 1992 (FITTA) and introduce new Industrial Enterprise Regulation and an amendment of the

Ministry of Industry

Develop a “One-Stop Service Center” for business registration and regulation

Ministry of Agriculture and Cooperatives

Collaborative support to increase competitiveness of selected sectors and food security

Activities in partnership with private sector organizations

NEAT will be working with AEC, FNCCI, CNI and selected commodity associations like SEAN, ANROPI and HOTPA to address business enabling policy constraints, particularly for organizing public-private dialogues and policy advocacy for improving business enabling environments and information dissemination to their members and the public at large.

NEAT will also support private sector stakeholders in selected value chains, particularly related to post harvest handling, processing and marketing.

Competitiveness and Food security Programs

Competitiveness of Selected Sectors Increased

• Lentil• Ginger• Orthodox Tea• Off-season vegetables

Nation-wide focus, work at all levels of the value chain

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Intervention Strategy in enhancing Competitiveness- Promotion of Good Agriculture Practices - Processing for quality & value addition - Market linkage and expansion - Finally increase Production volume, Sales &Income

Key Implementation approaches - production & productivity work in selected pockets & district only- Processing- in cleaning, bulking, sorting – at FBOs/Collectors/traders level (with exception at producers)- Marketing- along major marketing channel to the end markets

Food Security Enhanced

Activities Select 80 VDCs in 14 target districts Conduct local market surveys Establish 400 farmer groups Facilitate access to inputs through establishment of a

voucher program Promote the implementation of good agricultural

practices through demonstration sites Support R&D organizations and facilitate transfer of

new technologies to producers

Project Area

• Western Region: 3 districts (Kapilbastu, Palpa & Arghakhanchi), coverage of 17 VDCs

• Mid-Western Region: 10 districts. (Dang, Salyan, Pyuthan, Rolpa, Rukum,Banke, Bardiya, Surkhet,Dailekh and Jajarkot), coverage of 58 VDCs

• Far-Western Region: 1 district (Kailali), coverage of 5 VDCs

Total Households: 28,000

Program Focus

• Staple Food: Rice, Wheat, and Maize

• Vegetables: Tomato, Cauliflower, Cabbage, Cowpea, Chillies, Cucumber, and Onion

• Livestock: Goat, Pig and Poultry

Access to Microfinance Services Increased

Activities Conduct a feasibility study for a Credit Information

Bureau (CIB) specifically for the microfinance sector Map MFIs in target districts and expand MFI

geographic coverage; Also link MFIs to agriculture clients

Design of IT-supported delivery system in target districts

Assess MF training providers Grants to MFIs for innovative products

Role of FNCCI and its related member organizations

• Provide support to Government in policy, regulatory reforms, and trade negotiation improvement

• Organize and participate in the structured Public-Private Dialogues at central and regional levels

• Organize effective policy advocacy for enhancing business enabling environments and to facilitate business growth

• Encourage its members and potential entrepreneurs to participate in the implementation of NEAT’s competitiveness program activities.

Thank You