Nepal: Governance Support Program (Subprogram I)

Sovereign Project | 36172-042

Summary

The grant will support the initiatives of the Government in ensuring good governance, as reflected in more transparent, predictable, and accountable central and local government administration, as well as better frontline service delivery and less corruption in the public sector, through active public participation.

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Project Name Governance Support Program (Subprogram I)
Project Number 36172-042
Country Nepal
Project Status Closed
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0118-NEP: Governance Support Program (Subprogram I)
Asian Development Fund US$ 106.30 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Public sector management - Decentralization
Gender Equity and Mainstreaming Gender equity
Description The grant will support the initiatives of the Government in ensuring good governance, as reflected in more transparent, predictable, and accountable central and local government administration, as well as better frontline service delivery and less corruption in the public sector, through active public participation.
Project Rationale and Linkage to Country/Regional Strategy

The nature and dynamics of poverty reduction efforts in Nepal, as well as its political economy, necessitate that the social inclusion and empowerment of disadvantaged groups (DAGs) be strengthened just as much as local bodies are. The rationale for this program also stems from the fact that the country will soon have a federal form of government in which subnational governments will play major roles in local development. Thus, strengthening local governance is a must. Finally, the present context in Nepal demands

reforms in local governance and community development that are medium to long term, which justifies the program cluster approach of the GSP.

Impact Contribution through the LGCDP to poverty reduction through socially inclusive, gender-responsive, strong, and accountable local governance and participatory community-led development
Project Outcome
Description of Outcome

(i) Citizens and communities actively engaged with local bodies and hold them accountable

(ii) Better management of resources and delivery of services in an inclusive and equitable manner by capable local bodies

(iii) Strengthened policy and national institutional framework for decentralization and community

development

Progress Toward Outcome

(i) Citizens and communities actively engaged with local bodies and hold them accountable.

"15 % of the capital grants allocated in favor of disadvantaged groups in 2010/11 against 10 % in 2009/10

"While there is no established benchmark data, in FY2010/11 the number of formal interaction between CBOs and local bodies is estimated to be 3 per annum

" 40 % of the citizens reported that attitude and behavior of local body staff changed positively towards women and disadvantaged groups in 2010 as compared to previous year.

(ii) Better management of resources and delivery of services in an inclusive and equitable manner by capable local bodies;

" Blended guidelines of local bodies' grants approved by the cabinet made provisions of inclusiveness in service delivery.

"

" 55 % of the citizens reported that services of local bodes are better in 2010 than in 2008.

" The relevant division in MLD confirms that the number of districts that are working towards this compliance stands at 60

" Of the total block 35 % is allocated in projects directly benefiting women, children and disadvantaged groups in FY2010/11 against 30 % in 2009/10

(iii) Strengthened policy and national institutional framework for decentralization and community development:

" The Constituent Assembly has not yet fully completed deliberations on these provisions

" The gaps have already been identified; support from development partners continues to be used to address the gaps

" The roles of ADDCN, NAVIN, and MUAN have indeed been increasing and they have been at the forefront of pushing for state restructuring; their public awareness campaigns and publications are rather substantial

" While the approach paper has been prepared by MLD, there is now general consensus among government and development partners that it will be difficult to have the SWAp in place any time soon& this is for reasons of lack of political stability which is critical for a SWAp to be effective.

" The strategy has been operationalized with guidelines prepared; focal persons have been activated in 100 percent DDCs and municipalities

Implementation Progress
Description of Project Outputs

1.1. Empowered communities and CBOs that participate in local governance processes

1.2. More capable communities, including DAGs, that assert their rights and hold local bodies accountable

2.1. Access to greater fiscal resources for local bodies in equitable and appropriate ways

2.2. Appropriate measures to build capacity in all levels of the local body service delivery system

2.3. Fine-tuned local body service delivery mechanisms and processes

3.1. Policy framework for decentralization to enable an environment for effective, transparent, acountable, and inclusive local governance

3.2. Strong central government and NGOs that provide appropriate support to local bodies

Status of Implementation Progress (Outputs, Activities, and Issues)

All the local bodies prepared annual plan through participatory planning process in 2011.

MLD estimated that initial social mobilization has taken place in 85% of VDCs.

33% representations of women made compulsory in all the committees formed by local bodies including Ward Citizen Forum. Similarly representation of disadvantaged groups in all the committees made compulsory.

Of the total number of persons trained (5000) in 2011 in local governance, community mobilization and leadership 21% are women.

LGCDP confirms that this now stands at 35% of capital grants spent on projects prioritized by women, disadvantaged groups, and children.

MLD estimated that initial social mobilization has taken place in all of the municipalities.

Participation of women and disadvantaged groups increased by 35 % in planning and decision making process compared to previous year.

20% CBOs made federations.

More training/orientations are being planned and conducted.

The concept of federations has now been dropped in the LGCDP and replaced by citizen awareness centers, of which there were 3,300 as of March-end 2011.

On average, the own-source revenues of local bodies have increased 20% as per the estimates of the PCU.

Fully achieved.

The GESI Section confirms that the MCPMs have been reviewed and updated with a GESI focus.

Strategy operationalized by mid-July 2011.

Gender focal points have been identified but capacity enhancement measures are not yet fully been in place across all local bodies.

This is in place now across all local bodies.

Fully achieved.

The LGCDP PCU estimates that as of the end of the first quarter of 2011, approximately 30% of office bearers of all local bodies have been oriented on local good governance.

Partly achieved

Partly achieved

133 gender focal persons of DDCs and Municipalities trained on GESI strategy.

All the Local Body Associations prepared capacity development plan and implemented. 60 percent Local Development Officers and 50 percent Executive Officers reported that Local Body Association capacity improved in 2010 as compared to 2008.

Fully achieved

Fully achieved

MCPM conducted through LBFC. There is no system of self-report on MCPM by DDCs.

Largy achieved

Partly fine tuned

In progress

In progress

In progress

Partly achieved

Job description of local body staffs prepared.

Fully achieved.

Completed

On going

Options for a SWAp in local governance and decentralization have been presented in the SWAp approach paper; however, the SWAp itself is unlikely to be ready.

Affirmative policy in favor of women and disadvantaged groups included in HRD plans of local bodies and MLD.

The system is in place, and work is ongoing (particularly through the benchmarking exercise in the ASIP).

DPMAS software installed in 75 DDCs and 150 staff of local bodies trained on DPMAS.

Not possible to attain this target given the delays in the constitution-making process.

Partly achieved

Devolution policies and regulations updated by incorporating GESI aspects and forwarded to the Office of the Prime Minister and Council of Ministries for approval

Fully achieved

Fully achieved

Fully achieved

Geographical Location Throughout Nepal
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects A social and environmental safeguards framework was prepared for application should local bodies make investment decisions that may trigger the environmental assessment requirements of the Asian Development Bank (ADB).
Involuntary Resettlement There are no specific involuntary resettlement issues inherent in the program. However, to account for the possibility that the investment decisions of local bodies may have impact, the safeguard frameworks are prepared which detail the strategies and actions to address this issue.
Indigenous Peoples There are no priori specific issues in the program that relate to indigenous people. However, to account for the possibility that the investment decisions of local bodies may have impact, the indigeneous people frameworks are prepared which detail the strategies and actions to address this issue.
Stakeholder Communication, Participation, and Consultation
During Project Design Coordination among development partners for actions in these areas is done through several local consultative group committees, including those on governance. ADB is an active member of these committees. Cooperation among development partners is evident in their decision to (i) be involved in the conceptualization and development of the LGCDP, (ii) do joint assessments, and (iii) pool resources to fund the resulting reforms.
During Project Implementation Coordination among development partners and government agencies is going on in a regular basis.
Responsible ADB Officer Rachana Shrestha
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Ministry of Local DevelopmentMr. Gopi Khanallgcdp@wlink.com.npMinistry of Local Development, Pulchowk, Kathmandu
Ministry of Federal Affair and Local DevelopmentSECRETARY@MLD.GOV.NPSingha Durbar
Nepal
Timetable
Concept Clearance 14 Apr 2008
Fact Finding 26 Jun 2008 to 08 Jul 2008
MRM 23 Jul 2008
Approval 12 Apr 2010
Last Review Mission -
PDS Creation Date 27 Oct 2010
Last PDS Update 01 Apr 2013

Grant 0118-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
22 Oct 2008 15 Dec 2008 19 Dec 2008 30 Jun 2013 - 08 Apr 2013
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 367.10 Cumulative Contract Awards
ADB 106.30 22 Oct 2008 106.30 0.00 100%
Counterpart 260.80 Cumulative Disbursements
Cofinancing 0.00 22 Oct 2008 106.30 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - Satisfactory

Grant 0206-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Apr 2010 27 Aug 2010 12 Nov 2010 30 Jun 2013 - 08 Apr 2013
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.00 Cumulative Contract Awards
ADB 0.00 12 Apr 2010 0.00 8.51 97%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 12 Apr 2010 0.00 8.51 97%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - Satisfactory

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Governance Support Program Cluster (Subprogram I) Environmental and Social Monitoring Reports Aug 2008

Evaluation Documents

See also: Independent Evaluation

No documents found.


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