Managing for Development Results at ADB

Results Matter October 2007

MfDR Country Case: Nepal
By Paul J. Heytens, Country Director, Nepal Resident Mission

Participants from the Department of Water Supply & Sewerage, Government of Nepal, receive a briefing at the organizational results chain workshop held in July 2007

The Asian Development Bank (ADB) is actively supporting the Government in adopting MfDR and is taking a leading role in involving other development partners. This will improve development effectiveness and will enhance the capacity to absorb development assistance. Government ownership of MfDR is encouraged and supported by ADB through extensive dialogue, joint working arrangements, and advisory support including technical assistance. The process is helped by MfDR teams at the Nepal Resident Mission that enhance the focus on operations and build capacity.

Results-Based Country Partnership Strategy and its Implementation
The current country partnership strategy (CPS) (2005–2009) for Nepal approved in September 2004 was ADB’s first results-based CPS. The CPS includes a results framework as a management tool for focusing ADB assistance on delivering development results. It also supported a conflict-sensitive approach whereby every project will be reviewed to (i) assess the degree to which it can be effectively implemented during conflict and (ii) examine options for designing assistance to address the root causes of the conflict. MfDR teams with the support of the responsible project staff are ensuring effective implementation of the result-based CPS while working closely with the Government. They are involved in the periodic monitoring of progress and in updating the results framework.

In order to strengthen linkage between the CSP results framework and country operation, sector results plans (SRPs) have been prepared for the priority sectors of Nepal, including (i) agriculture and rural development, (ii) energy, (iii) education, (iv) finance and governance, (v) transport and communication, and (vi) water supply, sanitation and urban development. The SRPs will be consolidated into a country results profile (CRP) once they are finalized in consultation with the Government. The CRP will provide a unified picture of ADB’s operations in the country; the outcomes and outputs being targeted and progress achieved.

Strategic Focus and Alignment of the CPS
While incorporating the findings of the country assistance program evaluation (CAPE), the strategy entails a well focused program that includes larger-scale projects and emphasizes governance, Government ownership of the program, and further alignment with the Government’s development priorities. The strategy recognizes that the root causes of the conflict are poverty, regional disparities, and social exclusion.

The CPS is fully aligned with the Government’s poverty reduction strategy (PRS) and is built on four pillars: (i) broad-based and higher economic growth; (ii) human development; (iii) targeted programs to foster social inclusion of the ultra poor, vulnerable, and historically deprived groups; and (iv) good governance. The importance of systematic monitoring and evaluating project performance is also emphasized. With the completion of the PRS in July 2007 and in view of the country’s political transition, the Government is preparing a 3-year interim development plan (IDP) to address immediate needs. The IDP emphasizes service delivery at the local level and continued focus on infrastructure and education consistent with the CPS.

Use of Country Systems
Since 1998, ADB has been supporting the Central Bureau of Statistics. To support harmonization in public procurement, a new procurement act prepared jointly by the Government, ADB and World Bank was passed by Parliament on 19 December 2006 and became operational on 14 January 2007. Efforts are also being made by the Government and ADB to reduce the number of project implementation units where feasible.

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