Poverty Alleviation Fund Project - Phase II


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Poverty Alleviation Fund Project II

Poverty Alleviation Fund Project - Phase II

This project is one of a number of community-based interventions designed to introduce rapid development changes in poor, remote areas of Nepal. In the wake of the country's peace process and agreements reached between its political parties, the government has made a new commitment to address inequality and poverty among the population.

The principal goal of the project's second phase, funded by a Debt Sustainability Framework (DSF) grant in partnership with the World Bank, is to address the interrelated problems of rural poverty and social exclusion. The Poverty Alleviation Fund supports efforts to empower poor and disadvantaged people throughout the country and improve their living conditions and livelihoods.

Groups that traditionally have been marginalized for reasons of gender, ethnicity, caste and location are the focus of the project. The pilot phase was first implemented in 6 districts and then extended to an additional 19. A further expansion of the project has covered 15 more districts, bringing its total coverage to 40 districts. The project helps to:

  • Build the capacity of local grassroots organizations
  • Develop community infrastructure such as small-scale irrigation, access roads and bridges
  • Improve water supply, sanitation, education and health services
  • Create income-generation opportunities for the poorest and most excluded groups.


Source: IFAD

Status: Closed
Approval Date
13 December 2007
2007 - 2017
Rural Development
Total Project Cost
US$ 213.51 million
IFAD Financing
US$ 9.02 million
Co-financiers (International)
World Bank: International Development Association US$ 99.99 million
World Bank: International Development Association US$ 80 million
Co-financiers (Domestic)
National Government US$ 1.01 million
National Government (add) US$ 9.1 million
Beneficiaries US$ 7.69 million
Beneficiaries additional financing US$ 6.7 million
Financing terms
DSF Grant
Project ID
Project Contact
Louise C. Mcdonald

Project design reports

Supervision and implementation support documents

Environmental and social impact assessment

Final environmental and social management framework

Interim (mid-term) review report

Resettlement action framework

PCR digest

Special study

Project list

Audit and Financial Statements

Project completion report