KATHMANDU: The Ministry of Finance has directed the project implementing partners not to proceed with the implementation of certain projects funded through the grant assistance cooperation between the Government of Nepal and US Agency for International Development (USAID).

Issuing a press release today, the Ministry stated that work on these projects be put on hold for 90 days and not work by creating financial liabilities in the projects co-financed by the USAID.

The Ministry’s directive has come following the USAID Nepal’s letter on postponement of grant assistance for 90 days to four projects 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 Ministry has informed all concerned agencies not to proceed with any of the activities that would create financial obligation for the funding agency, USAID.

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

Ministry’s Joint Secretary Mahesh Bhattarai said that activities in projects to be funded by the Government of Nepal will not be halted.