FinMin directs halt of four USAID-funded projects for 90 days

KATHMANDU: The Ministry of Finance (MoF) has instructed project implementing partners to halt the implementation of certain projects funded through the grant assistance cooperation between the Government of Nepal and the US Agency for International Development (USAID).

In a press statement issued on Monday, the MoF announced that work on these projects should be paused for 90 days and no financial liabilities should be created in the projects co-financed by USAID.

This directive follows a letter from USAID Nepal regarding the postponement of grant assistance for 90 days for four projects. The projects are to be paid from the reserve fund through the budgetary system outlined in the Development Objective Agreement signed on May 5, 2022, between the Government of Nepal and USAID.

The Finance Ministry has informed all concerned agencies not to proceed with any activities that would create financial obligations for USAID.

According to the Ministry, the major projects co-financed by USAID in the current fiscal year include the USAID Health Direct Financing Project, USAID Agriculture Direct Financing Project, USAID Education Direct Financing Project, and USAID Inclusive Policy Direct Financing Project.

MoF Joint Secretary and Spokesperson, Mahesh Bhattarai, stated that activities in projects funded solely by the Government of Nepal will not be affected.