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3. Establishment of the Fund: A Fund named Peace Fund is hereby established.
(1) Assistance as follows, in cash or kind, shall be credited to the Fund as referred to in Sub-rule (1): –
(a) Received from the Government of Nepal;
(b) Received from foreign governments or persons, international associations and organizations;
(c) Received from non-resident Nepalese;
(d) Received from international charity;
(e) Received from Nepalese associations, organizations or persons;
(f) Received from other sources.

(2) The assistance received in cash as per Sub-rule (1) shall be deposited in the central treasury of the Government of Nepal.
(3) The Board shall receive the required amount for the administrative expenses of the Secretariat and also for funding the Projects to be implemented by agencies other than that of the Government organizations, from the Government of Nepal from the amount deposited in cash pursuant to Sub-rule (3) and thereby deposit such amount by opening an account in the Nepal Rastra Bank in the name of the Fund.
(4) The account as referred to in Sub-rule (4) shall be operated as decided by the Board.

4. Functions, duties and powers of the Board: The functions, duties and powers of the Board shall be as follows: –
(a) To provide necessary support for the rehabilitation of the displaced;
(b) To make arrangement of technical assistance as well as assistance in cash or kind necessary for the acts relating to the election of the Constituent Assembly and other entities;
(c) To make arrangements for technical support, cash and commodities necessary for physical structure, machineries, equipment, materials, communication system and the training that are necessary for the promotion
and strengthening of peace and security;
(d) To support in managing the cantonments where the combatants of the Maoist army are confined and to rehabilitate the combatants of the Maoist army;
(e) To assist in setting up and operation of organizations that are related with and support in implementing the peace process, Peace Accord and other agreements related with the Peace Accord;
(f) To assist in rehabilitation of the conflict affected individuals and families;
(g) To develop and approve strategy and working policy of the Fund; and also to develop and approve the Standards and Guidelines related to selection and operation of the Project and Project Implementing Agency;
(h) To arrange necessary financial and technical support in clearing and destroying the minefields and related improvised explosive devices and equipments, and in organizing trainings on the related field;
(i) To arrange technical and financial support for the reconstruction, rehabilitation and maintenance of the damaged or destroyed physical infrastructures pertaining to the Government or public sector during the conflict;
(j) To support other programs implemented in the country to contribute in the areas of peace building;
(k) To accept technical assistance as well as assistances in cash or kind necessary for the Fund from the Government of Nepal, foreign  governments, national or international organizations, associations, and native or foreign persons;
(l) To select and approve the Project;
(m) To select the Project Implementing Agency;
(n) To carry out or cause to be carried out, supervision, monitoring and evaluation of the Project, and also publish four monthly progress reports by reviewing, evaluating and analyzing the progress and impacts of such Project;
(o) To set priority between and within the sectors of activities to be supported by the Fund;
(p) To coordinate the peace building activities carried out within the country through other sources;
(q) To provide the details relating to the physical status, progress, and impact of the Project and expenditure statements of the technical and other assistance received, in cash and kind, from foreign governments or
international organizations at the request of such governments or organizations,
(r) To receive the service of consultants for the implementation of the Project, if necessary;
(s) To carry out other necessary act related with the Fund. Explanation: For the purpose of this Rule:

(1) “Rehabilitation of the displaced” means the acts of sending the displaced back home, rehabilitating them in the place of current residence or in another location, providing vocational skill development training, engaging them in any job, providing necessary education for the families and the children of the displaced, providing financial support or acts pertaining to social  services.

(2) “Act relating to the election” means the acts of managing trainings related to elections of the Constituent Assembly and other entities, alignment of polling centers, voters education programme, purchase of stationery and other materials required for holding the election, security expenses incurred by the Election Commission for the
elections, daily and traveling allowances, insurance of the deployed election officials, and administrative expenses of the Election Commission.
(3) “Promotion and strengthening of peace and security” means the act of reconstruction of police offices, purchase of machines, equipment, materials and vehicles necessary for peace and security, training relating to peace and security, dissemination to be made by the Ministry of Home Affairs for the purpose of peace and security and
other acts related thereto.
(4) “Cantonment management and rehabilitation of the combatants of the Maoist Army” means the acts of construction and maintenance of physical infrastructures such as, building, roads, internal roads, drinking water and sanitation, communication, access road, in the cantonments where the combatants of Maoist Army are confined;
managing social infrastructure in the cantonments, temporary accommodation, nourishment, basic health care, education, sports, career development, provision of vocational or other trainings, adjustment, rehabilitation, and family and social reintegration.
(5) “Peace Process, implementation of the Peace Accord and other related agreements” means the acts of transitional justice; conflict management; reintegration and re-socialization of the families of the displaced and conflict affected persons; awareness raising related thereto; establishment, operation and strengthening of the peace mechanisms including local peace committees; and the acts to be  done to implement the Comprehensive Peace Accord and other
peace related agreements,
(6) “Rehabilitation of the conflict affected individuals and families” means the acts related to rehabilitation, re-union, re-socialization of the economically, politically, socially or by any other means affected individuals and families due to conflict; administrative or technical support necessary for returning their illegally seized properties;
support to the dependant families of the deceased persons, widows  and widowers due to conflict, and injured due to land mine or any other means; providing scholarship for education or medical treatment facilities for such persons and children of such families; providing psycho-social support, social rehabilitation, trainings,  health, nutrition, counseling and legal services.

5. Use of the Fund: The technical assistance as well as the assistance in cash or kind received by the Fund shall be utilized and spent for the implementation of Projects and for the Secretariat.


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