United Nations Peace Fund for Nepal (UNPFN)

Assistance Strategy

The United Nations Peace Fund for Nepal (UNPFN) finances projects carried out within a framework of strategic priorities developed to assist with the implementation of the Comprehensive Peace Agreement. It complements the peace initiatives launched by the government and financed by the Nepali Peace Trust Fund. Only those activities that cannot be funded or implemented through the Government’s Nepal Peace Trust Fund, through the reprogramming of existing projects, or through other existing mechanisms will be funded. The UNPFN is further expected to enhance UN coordination in support of the peace process as well as to contribute to coherence, efficiency and aid effectiveness in relation to the peace process.

The UNPFN operates, to the extent possible, based on best practices and principles that normally apply in a post-conflict situation, including the guidelines of the Development Assistance Committee of the Organisation for Economic Co-operation and Development on "Helping to Prevent Violent Conflict" and "Principles for Good International Engagement in Fragile States".

The UNPFN arrangements seek to ensure, in particular, that:

• proposals for funding contribute to the implementation of a clear strategy to support the peace process; are based on a credible needs assessment; and are formulated in consultation with the Government, the parties to the peace agreement, and, to the extent possible, civil society organizations, donors and other partners;
• activities financed through the UNPFN are carried out as much as possible with and through national/local authorities in order to contribute to local capacities while seeking to ensure that the immediate peace-process needs of Nepal are met;
• implementation and funding modalities reflect the needs of the peace process; apply a "do-no-harm" methodology; promote the reestablishment of functioning democratic institutions, especially at the local level; provide for transparency and accountability; facilitate efficient, prompt delivery; minimize management and reporting burdens; and facilitate donor coordination and harmonization;
• a common governance structure for the UNPFN and the NPTF prevents the emergence of gaps and duplication in funding as well as inconsistency in policy advice.

The UNPFN will last up to two years on the assumption that broader reconstruction and peacebuilding needs can be handled through existing mechanisms, including direct funding of Government entities or implementing agencies. The UNPFN will terminate upon completion of all projects funded through the UNPFN and after satisfaction of all commitments and liabilities.