The World Bank (WB) on Wednesday has announced $50 million grants to support the peace process of Nepal.

According to a press release issued by the WB, the bank will provide US$ 50 million to support the country’s efforts to consolidate the November 2006 Comprehensive Peace Accord CPA. 

The grant under the Emergency Peace Support Project will be used to pay compensation of Rs 100,000 each to the families of the war deceased  and to support Rs 3,000 per month to approximately 19,600 verified Maoists combatants confined in UN-monitored cantonments.

"In addition, the project will also help the Government pilot reintegration initiatives," said the WB press release.

A fragile peace has been sustained over the past two years and important steps have been taken toward a "New Nepal," including the establishment of the Seven-Party Alliance in November 2005 and the recently held Constituent Assembly elections, said the press release.

“There is a high degree of commitment at the political level to ensure lasting peace in Nepal, and this project is designed to contribute to this agenda,” said Susan Goldmark, World Bank Country Director for Nepal. “In this pivotal moment in Nepal’s history it is important to take concrete steps to consolidate the peace process and to ensure that development and service delivery are scaled up.”

The World Bank has also approved additional grant financing of US$50 million for the Nepal Health Sector Program and US$27 million for the Second Rural Water Supply and Sanitation Project.