Nepal’s challenging terrain makes air transport an important part of the country’s overall transport system. Air transport provides access to many remote mountainous areas and is vital to achieving the government’s tourism targets and resulting economic benefits.
In 2011, about 80% of Nepal’s population lived in the rural areas, where poverty rates were higher than in urban areas. The growth of agriculture, which comprised the predominant source of rural income and livelihood, was constrained by lack of value chain integration, as rural farmers were mostly subsistence farmers.
Despite a decade of conflict until 2006 followed by protracted political instability, Nepal, as of project appraisal, had made good progress in reducing poverty and achieving almost universal enrollment in primary education with gender parity.
Taking a cautious approach to address gender-based violence (GBV), which is a non-traditional area for Asian Development Bank (ADB) assistance, ADB approved a grant of $750,000 from the Japan Fund for Poverty Reduction (JFPR) for a pilot project on Establishing Women and Children Service Centers (WCSCs) in Nepal in July 2009.