Denmark’s development cooperation with Nepal is tailored to pursue the objectives of poverty reduction, political stability and economic growth. The main focus areas are human rights and good governance, education, renewable energy, business partnerships, and the peace process.
Denmark has been a leading supporter of the education sector in Nepal since 1992. About 90 pct. of the Danish financial support to the Sector Wide Approach Program is channeled through the Government of Nepal budget based on a Joint Financing Arrangement (JFA) between the Government of Nepal and nine development partners. The remaining part of the Danish support is allocated to capacity development, technical assistance and monitoring and evaluation. A last commitment of DKK 125 million covers the exit phase during 2012-13.
The Danish support to the energy sector in Nepal began in the late 1990s. The programme aims at improving rural access to renewable energy solutions in the form of improved cooking stoves, solar panels to households and micro-hydro installations in areas where there is no access to the national electric power network. The support includes: Institutional strengthening of the public and private organizations in the renewable energy sector, subsidy funds for the installations of renewable energy solutions/technologies and technical support for the promotion of the technologies. Denmark contributes with DKK 150 million to Phase II of the programme. The main partner is the Alternative Energy Promotion Centre (AEPC).
Denmark has supported human rights and good governance in Nepal since the early 1990s, and from 1998 through a programme of Human Rights and Good Governance implemented through DanidaHUGOU. Phase III of the programme runs until the end of 2013 and has three components: 1. Support for democratization of political parties and institutions, and promoting public debate on democracy, 2. Human rights and legal protection, 3. Support for local governance. The budget is DKK 170 million (5 years). Cooperation with civil society is based on long-term strategic partnerships; partnerships with national institutions such as Election Commission, National Human Rights Commission, and the Auditor General also exist.
Denmark’s support to the peace process in Nepal has been provided to a variety of actors at national and local level including the Nepal Peace Trust Fund (NPTF - the Government's peace fund), the UN Peace Fund for Nepal (UNPFN), NGOs and INGOs such as Search for Common Ground, International Alert, and Saferworld. The ongoing phase III of the programme has a budget of DKK 70 million and is designed to respond to the demands in Nepal through two strands, namely the implementation of the Comprehensive Peace Accord and the strengthening of public security and progress in key enabling aspects of the wider peace process.