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Govt begins drafting proposal for $20 million in Loss and Damage Fund support

Salyan - Syabrubesi - bhotekoshi flood - Loss and Damage Fund
Aerial view of Syabrubesi after the Bhotekoshi flood.

Kathmandu, November 2

The government has begun preparing a project proposal to secure $20 million in support from the Loss and Damage Fund, after the fund allocated $21.6 million to Nepal and asked it to submit a proposal worth $20 million.

The government has also started the process of identifying a suitable organisation to implement the project.

Dr Maheshwar Dhakal, head of the Climate Change Management Division at the Ministry of Agriculture, Forests and Environment, said work on the proposal had begun and that its initial drafting phase was expected to be completed by the second week of December.

Nepal cannot submit a proposal directly to the fund. It must do so through a national or international organisation affiliated with the fund. The government is therefore assessing potential implementing partners alongside the proposal-writing process, Dhakal said.

“We have received official notification that $21.6 million has been allocated to Nepal, with a request to submit a proposal worth $20 million. We have formed a committee and started the initial work on drafting the proposal. We are moving ahead with proposal preparation and the search for an implementing organisation in parallel,” he said.

The government will determine programme priorities based on studies conducted by the National Disaster Risk Reduction and Management Authority and the Post-Disaster Needs Assessment report prepared by the National Planning Commission.

Dhakal said the proposal would focus on the needs of communities most affected by climate-related disasters, prioritising the lives and safety of affected women, children and local communities.

“We are working to prepare the first draft by November and, if possible, submit the proposal before the fund’s 10th board meeting. The proposal must be centred on people’s lives and their safety. We believe particular attention should be given to the situation of children and women who have suffered the most,” he said.

Although $20 million is not a large amount in financial terms, Dhakal said the support carried significant international importance. The international community would be watching how Nepal implements the project, what results it delivers and whether it establishes a model for addressing loss and damage that other countries can follow.

“This $20 million is not a large amount in itself, but its symbolic significance is considerable. There is both national and international interest in how the project is implemented, what results it produces and whether it can establish a precedent for future work on loss and damage,” he said.

The government is therefore considering concentrating activities in a specific area rather than spreading them across multiple locations. Dhakal said the aim was to develop a model project whose lessons and results could later be replicated and expanded elsewhere.

“Rather than spreading activities across many places, we want to concentrate them in one location and create a role model or demonstration effect. This should make it easier to replicate and expand similar activities in other areas in the future,” said Dhakal, who is also the ministry’s spokesperson.

The Loss and Damage Fund’s virtual special meeting on October 22 decided to allocate the support to Nepal.

The decision was taken unanimously after the meeting discussed a request letter submitted by Nepal and signed by the ministers for agriculture, forests and environment, and finance.

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