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Nepal: COVID-19 Active Response and Expenditure Support Program

Sovereign (Public) Project | 54184-001 Status: Active

The CARES Program will help the government in implementing its pandemic response plan the National Relief Program to respond to public health emergencies and to mitigate adverse economic and social impacts caused by the coronavirus disease (COVID-19) pandemic. The program will extend support to the poor and vulnerable to withstand the pandemic's adverse impact on their livelihoods through food assistance and employment support. It will pay special attention to establishing gender-segregated hospital units and facilities, and ensuring that additional incentives are extended to women health workers. Further, the program will increase women's resilience to the pandemic's economic shocks. It will promote resilience to external shocks and strengthen public service delivery, especially in the health sector, contributing to a reduction in shared health risks. The program facilitates the government's mapping of the poor and vulnerable populations for effective food distribution and other relief service delivery.

Project Details

Project Officer
Ozaki, Mayumi South Asia Department Request for information
Country
  • Nepal
Sector
  • Health
 
Project Name COVID-19 Active Response and Expenditure Support Program
Project Number 54184-001
Country Nepal
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3926-NEP: COVID-19 Active Response and Expenditure Support Program
concessional ordinary capital resources lending / Asian Development Fund US$ 250.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Sector / Subsector

Health / Disease control of communicable disease - Health system development

Public sector management / Public expenditure and fiscal management - Social protection initiatives

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The CARES Program will help the government in implementing its pandemic response plan the National Relief Program to respond to public health emergencies and to mitigate adverse economic and social impacts caused by the coronavirus disease (COVID-19) pandemic. The program will extend support to the poor and vulnerable to withstand the pandemic's adverse impact on their livelihoods through food assistance and employment support. It will pay special attention to establishing gender-segregated hospital units and facilities, and ensuring that additional incentives are extended to women health workers. Further, the program will increase women's resilience to the pandemic's economic shocks. It will promote resilience to external shocks and strengthen public service delivery, especially in the health sector, contributing to a reduction in shared health risks. The program facilitates the government's mapping of the poor and vulnerable populations for effective food distribution and other relief service delivery. Its support to the government's economic response measures, especially financing MSMEs, will accelerate the recovery of an export-oriented manufacturing as well as tourism sector, for enhanced regional cooperation and integration. The program complements efforts by SAARC and the South Asia Subregional Economic Cooperation to ensure coordinated responses to mitigate the impact of the pandemic in the region and facilitate the recovery process.
Project Rationale and Linkage to Country/Regional Strategy Nepal is considered as one of the high risk countries for rapid spread of COVID-19 infections due to the country's vulnerable public health system, underdeveloped sanitation and other infrastructure, and densely populated urban and semi urban areas. The sudden economic disruption caused by the pandemic hit hard the sectors such as service, wholesale, retail, trade, transport, construction and manufacturing, among others. Especially the entire service sector, which accounts over 60% of GDP and includes tourism, aviation and hospitality sector, have been severely affected. Further, remittance income, which contributes about 26.0% of GDP in fiscal year (FY) 2019 and the most important source of foreign exchange, will be adversely impacted. . Due to the pandemic, the fiscal deficit will widen from pre-COVID estimate of 6.4% of GDP to 8.5% in FY2020. The government estimates the additional financing need of $1.26 billion to respond to COVID-19 for FY2020.
Impact Disaster risks in human lives, livelihoods, health, economy, and social aspects sustainably reduced (Disaster Risk Reduction Policy)a
Project Outcome
Description of Outcome COVID-19 pandemic adverse impacts on health systems, livelihoods, poverty, employment, and economy mitigated
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Health system response measures supported

Social protection and relief programs delivered

Economic support for affected sectors implemented

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Any consulting services during the implementation of the program shall conform to all applicable ADB policies.
Procurement Any procurement during the implementation of the program shall conform to all applicable ADB policies.
Responsible ADB Officer Ozaki, Mayumi
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Ministry of Finance
[email protected]
The Government of Nepal
Singha Durbar
Kathmandu, Nepal
Timetable
Concept Clearance -
Fact Finding 14 Apr 2020 to 14 Apr 2020
MRM 29 Apr 2020
Approval 26 May 2020
Last Review Mission -
Last PDS Update 26 May 2020

Loan 3926-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 May 2020 01 Jun 2020 08 Jun 2020 15 Jul 2021 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 250.00 Cumulative Contract Awards
ADB 250.00 26 May 2020 250.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 26 May 2020 250.00 0.00 100%

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Tenders

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Contracts Awarded

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Procurement Plan

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