• About Nepal
• Forest of Nepal
• Leasehold Forest Programme
  • Hills Leasehold Forestry Programme
  • Transition Phase of LFP
  • Leasehold Forestry & Livestock Programme
    • Programme Area Descriptions

About Nepal

Nepal is a mountainous country ranging in altitude from less than 100 metres in the south to over 8 800 metres in the north. It is landlocked, having a long open border with India to the South and China to the North. The total land area of 147 181 km2 constitutes three ecological zones (Mountains,Hills and Terai), different in terms of resources and productivity. Among the rural areas, the Hills and Mountains are much more remote, isolated and lack physical and social infrastructure compared to the Terai. Within the Hills and Mountains, the Mid- and far-Western regions have further disadvantages as these areas are characterised by relatively low rainfall, rugged terrain, remoteness and lack of access by road.

Nepal had a population of 23.15 million according to the 2001 census, growing at a rate of 2.24% p.a. (1991-2001) of which 86% live in rural areas and 44% live in hills, which occupy 42% of the total land area. The average population density is 157 persons/km2, but over 700 persons/km2 of arable land, one of the highest in the world. The average household had 5.44 people and 39% of the population was under the age of 15 in 2001.

Agriculture, forestry and fishing employ around 65% of the usually economically active population while accounting for 41% of GDP (2002/03), and is the largest sector of the economy. Sector growth and productivity are low. Both the banks and main micro-finance institutions are liquid but have little outreach outside the towns and accessible rural areas.

About Leasehold Forestry Programme

The forest resource covers almost 40% of the land resource. As one of the main landholders of the country with agrarian economy, it has also the responsibility of contributing to reduce poverty, which is the sole goal of the country now. The government policy documents focus on rehabilitation of degraded lands, environmental conservation and poverty reduction through people's participation. Leasehold Forestry and Livestock Programme is the continuation and extension of Hills Leasehold Forestry and Forage Development Project (HLFFDP) implemented in 10 hills district since 1992 with the assistance oflnternational Fund for Agricultural Development (IFAD).

Program Area:

The programme area covers 22 hill districts (exlcuding 5 districts led by TA) , extended from east to west of the country .

Eastern Development Region:
Panchthar, Terathum, Bhojpur, Khotang and Okhaladhunga.

Central Development Region:
Sindhuli, Makawanpur, Chitawan, Dhading, Sindhupalchok, Kabrepalanchok, Dolakha and Ramechap

Western Development Region:
Lamagung, Tanahu and Gorkha

Mid -Western Development Region:
Pyuthan and Salyan

Far-Western Development Region:
Baitadi, Dadeldhura, Doti and Achham

TA Areas : 5 Districts
Nawalparasi, palpa,  Gulmi, Arghakhanchi,  Syanja

Rationale of the Programme

There is a strong technical, social, institutional and economic rationale to continue leasehold forestry and associated livestock activities in the hills of Nepal. This rationale stems from the result of the HLFFDP and the priorities of tenth Plan.

The Interim Evaluation of HLFFDP found that the transfer of land with degraded forests to the poor could both reduce poverty and reforest the hills. The Sustainable Livelihoods Analysis of leasehold groups also supports that leasehold forestry can be an effective approach to poverty reduction, women's empowerment and reduce'the drudgery by saving time in collecting fuel wood and fodder. Experience has also shown that a saving-based approach to develop rural financial services is the most appropriate.

This program also a community-based forest management approach is specially designed to benefit the poorest communities. Providing land with degraded forest to poor households on a 40-years renewable lease, provides the poor with security of tenure and the confidence to develop the land which then enables them to generate income and other benefits to move out of poverty trap. The Poverty Reduction Strategy Paper, recognizes leasehold forestry for poverty reduction as a programme with the highest priority (PI).