Annual Report 2007/2008 - Poverty Alleviation Fund, Nepal

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ANNUAL REPORT 2007/08amount lent to the CO members for their income generating activities, and (ii) principleloan amount repaid by the CO members against income generation activities (IGAs). Wehave developed the revolving fund management guideline to smoothen the progress ofCO revolving fund management during the reporting year.We are encouraged from such spontaneous graduation and will extend our support forsimilar community bid in the days to come.From the very beginning, PAF has emphasized on the need of better linkage with localauthorities, line agencies and other local programs in order to meet the challenges ofwide varieties of activities being implemented by the choice of the community people.There are good initiatives made in this front as we have signed a MoU with MoLD forinformation sharing and better coordination during the reporting year. There are scoresof examples where we have established coordination with different development actorsat the local level.Out of the total PAF expenditure of NRs 3.84 billion till Fiscal year 2064/65 (2007-08),94.44 per cent was in programme implementation through CO & PO ( 81.27 per cent forCO & 13.14 per cent for PO), 2.08 per cent in Monitoring, Training, Studies and OtherProgramme Support, 0.77 per cent in capital investment for PAF and 2.71 per cent in PAFoperation and PAF expenditure in Fiscal year 2064/65 was NRs 1875 million which is 95per cent of the allocated budget.During the last 4 years we have learned lessons on different aspects of community leddevelopment initiatives and there are challenges as well that we need to face in the daysahead. Success of the intervention has been witnessed since the communities have takenfull ownership of the programme due participatory demand-driven approach, communitymanagement and transparecny at all level. It is clear that poor can handle their programmeeffectively when they are organized and capaciated appropiately.PAF should, however, accord high priority to enhance the qualitative capacity of bothpartner organizations and community organizations. The legal institutional developmentof the community organizations of the poor that can continue their programme ontheir own is the major challege ahead. In this context, PAF has prepared a long-termvision plan with an objective of bringing Nepalese poor in sustained path out of povertyby 2025 AD.xii
POVERTY ALLEVIATION FUNDCurrently, PAF is in its second Phase beginning 2008. PAF is encouraged with WB’sadditional 100m US dollar grant for scaling up the progress that we registered till dateand expansion of the programme in additional underserved districts. PAF plan to addadditional 15 districts by the end of fiscal year 2008/09, bringing the total number ofprogramme districts to 40. PAF will cover all 75 districts by the end of the fiscalyear 2009/10.I am thankful to the Board of governors and all the professional staff for their incessantsupport so as to deepen our efforts in reaching out poor and fine tuning related plan andpolicies. I would also like to take this opportunity to thank the World Bank and IFAD forthe support and forging partnership with PAF.Finally, I would like to pay tribute to all stakeholders including the members of Communityorganizations and partner organizations without whose support and active participationPAF would not be where it is today.Raj Babu ShresthaExecutive DirectorPAFJanuary, 2009xiii
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