Kathmandu: Faced with the mammoth task of rehabilitatingMaoist guerrillas as well as thousands of people displaced by the decade-oldcommunist insurgency and re-building destroyed infrastructure, Nepal'sgovernment has set up a 'Peace Fund' to mobilise donors at home and abroad.

The Peace Fund, established under the aegis of the country'scentral bank, Nepal Rastra Bank, hopes to raise NRS 50 billion in three years.

"According to our estimates, the peace process wouldrequire about NRS 50 billion," Vidyadhar Mallik, the finance secretary,told the media.

"So far, donor agencies and governments like Britain, Norwayand Swedenhave assured us of NRS 1.5 billion," he said.

The cash-strapped multi-party Government of Prime MinisterGirija Prasad Koirala hopes to raise the remaining sum from individual andorganisational donors, both in Nepaland abroad.

The money will be spent on holding elections by June, theultimate target of the peace process, managing Maoist soldiers who have beenbarracked in 28 camps and will stay there with their guns till the electionsare over, and rehabilitation of tens of thousands of people displaced due tothe Maoist uprising.

It will also be used to rebuild the government offices,roads, electricity and communication towers destroyed by the guerrillas duringtheir decade-old 'People's War'.

The government has already given NRS 500 million to theMaoist leadership to maintain their People's Liberation Army soldiers till theyare rehabilitated. According to the rebels, they have nearly 35,000 hardcoresoldiers who have to be fed, clothed and educated while they live in thecantonments.

Finance Minister Ram Sharan Mahat will head the committeethat will manage the Peace Fund. The other members would include four ministersnominated by Koirala, the finance secretary and vice-chairman of the NationalPlanning Commission.