This project paper support for a Nepal Food Crisis Response Program (NFCRP) consisting of: (i) a credit and grant for a new project on Social Safety Nets; and (ii) additional financing to the Irrigation and Water Resource Development Project. These funds are to be made available from the restructured and cancelled credit/grants under the Financial Sector Technical Assistance (TA) Project; the Financial Sector Restructuring Project and the Telecom Sector Reform Project, as well as a grant from the Food Price Crisis Response Trust Fund. The additional financing of the Irrigation and Water Resource Development Project and the financing of the new emergency project. This program is consistent with the framework set out in the Global Food Crisis Response Program and will constitute the Bank's overall support of the Government of Nepal's Food Crisis Response Program. The NFCRP will finance activities to mitigate both the short-term and the medium to long-term impact of rising food prices in Nepal as a result of the global food price trends. The proposed program will support the Government of Nepal's (GON's) national strategy to maintain and enhance food security. It includes support to the implementation of social safety net measures to maintain access to basic needs (mainly food) among vulnerable households in food insecure districts; and agricultural productivity activities to expedite a supply response through the implementation of measures to raise the yields and consequently the production of staples.