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Development assistance in Nepal

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Australia’s development program to Nepal

2022-23 bilateral allocation [budget estimate]
$9.1 million
2022-23 total Australian ODA [budget estimate]
$22.0 million
2021-22 bilateral allocation [budget estimate]
$9.1 million
2021-22 total Australian ODA [budget estimate]
$20.5 million
2020-21 total Australian ODA [budget actual]
$38.4 million

Australia and Nepal’s relationship is built on a long‑standing history, celebrating 60 years of diplomatic relations in 2020. COVID-19 is having wide-reaching impacts on Nepal’s health care and governance systems, placing pressure on remittances and tourism, reducing food security and increasing poverty. To support Nepal’s COVID-19 response and lay pathways for long-term recovery, Australia is committed to strengthening governance and enhancing emergency preparedness, with a focus on supporting local communities and those most vulnerable.

Pillar 1 – health security

Australia is working with Nepal to strengthen its health and emergency preparedness systems. Australia is providing personal protective equipment medical equipment for hospitals, COVID−19 testing kits and related training for health workers. We support equitable access to safe and effective COVID-19 vaccines in Nepal through regional and global investments, such as the GAVI COVAX Advance Market Commitment. Australia’s non-government organisations, the Australia Awards and the Water for Women investments support COVID-19 health priorities, including gender sensitive approaches to water access and health and hygiene promotion, to reduce the spread of COVID-19.

Further information on programs addressing health security can be found at Pillar 1 – health security in Nepal.

Pillar 2 – stability

Australia, in partnership with The Asia Foundation, is supporting Nepal’s transition to federalism to improve service delivery and governance. The program is building more inclusive and strengthened policies, systems and processes in response to the additional pressures of the pandemic. Australia is strengthening stability through providing technical advice across a range of sectors through the Australian Volunteers program. The She Leads program, in partnership with Internal Foundation for Electoral Systems, is supporting women in leadership by providing mentoring for women elected into government to strengthen leadership skills to manage the pandemic and engage in decision making processes. Our focus on food security and agricultural research through the World Food Programme, CSIRO and ACIAR is helping to build approaches to support Nepal’s longer-term stability.

Further information on programs addressing stability can be found at Pillar 2 – stability in Nepal.

Pillar 3 – economic recovery

Australia is supporting Nepal to reduce the economic impact the pandemic has on the most vulnerable, and to strengthen government systems that will support Nepal’s longer-term economic development. In partnership with the World Bank, we support the Government of Nepal to strengthen its public financial management. Australia is supporting pathways to post‑COVID-19 economic opportunities in partnership with the United Nations Development Programme (UNDP). This supports the Government of Nepal’s Micro-Enterprise Development for Poverty Alleviation (MEDPA) program’s creation of micro-enterprises that generate jobs and incomes for the rural poor, women and socially marginalised groups.  Australia has a regional focus on sustainability through the South Asia Regional program and is supporting economic recovery through facilitating private partnerships through DFAT’s Business Partnerships Platform.

Further information on programs addressing economic recovery can be found at Pillar 3 – economic recovery in Nepal.

Australia’s development efforts are set out in Partnerships for Recovery: Australia’s COVID-19 Development Response

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