Mid Term Review of Effective Development Financing and Coordination Project (EDFC)

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Evaluation Plan:
2018-2022, Nepal
Evaluation Type:
Mid Term Project
Planned End Date:
06/2019
Completion Date:
06/2019
Status:
Completed
Management Response:
Yes
Evaluation Budget(US $):
13,800

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Title Mid Term Review of Effective Development Financing and Coordination Project (EDFC)
Atlas Project Number: 00087654
Evaluation Plan: 2018-2022, Nepal
Evaluation Type: Mid Term Project
Status: Completed
Completion Date: 06/2019
Planned End Date: 06/2019
Management Response: Yes
Focus Area:
  • 1. Poverty
  • 2. Others
Corporate Outcome and Output (UNDP Strategic Plan 2018-2021)
  • 1. Output 1.1.1 Capacities developed across the whole of government to integrate the 2030 Agenda, the Paris Agreement and other international agreements in development plans and budgets, and to analyse progress towards the SDGs, using innovative and data-driven solutions
SDG Goal
  • Goal 17. Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development
SDG Target
  • 17.16 Enhance the Global Partnership for Sustainable Development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the Sustainable Development Goals in all countries, in particular developing countries
  • 17.18 By 2020, enhance capacity-building support to developing countries, including for least developed countries and small island developing States, to increase significantly the availability of high-quality, timely and reliable data disaggregated by income, gender, age, race, ethnicity, migratory status, disability, geographic location and other characteristics relevant in national contexts
Evaluation Budget(US $): 13,800
Source of Funding: Project Budget
Evaluation Expenditure(US $): 14,552
Joint Programme: No
Joint Evaluation: No
Evaluation Team members:
Name Title Nationality
M Amanullah (Mak) Khana International Consultant/Team Leader
Prakash Bhattarai National Consultant
GEF Evaluation: No
Key Stakeholders: UNDP, Ministry of Finance
Countries: NEPAL
Lessons
Findings
1.

4. Project Progress and Outputs

The EDFC project while remaining within the prescribed design, has made the required progress as per its work plan in achieving the three outputs, albeit in a varying degree of results and outcomes. The project, although appearing to be a straightforward intervention, operates within a complex developmental, political and social context. This is more so given that the development climate in Nepal is now in a difficult paradoxical stage. Nepal’s reliance on Official Development Assistance (ODA) has increased over the years due to various reasons, including support for the rehabilitation and reconstruction related to the 2015 earthquake. On the other hand, the country’s gradual graduation from the Least Developed Country (LDC) to a developing country status, and eventually rising to the level of a low-middle income country in less than a decade, would mean a decrease in the external aid flow. Coupled with it remains the challenge for Nepal to rationalize, improve and sustain a strong aid and development management capacity, together with its capability to mobilize and manage internal resources in the context of the new federal government system.The following Chart 1 shows the volume of ODA disbursement from FY 2010/11 to FY 2017/18. Chart 2 reflects the sector-wise distribution of ODA disbursement from FY 2016/17 to FY 2017/18.The MTR team has made a number of observations which respect to the three components as under. 


Tag: Effectiveness Aid Coordination Civic Engagement Knowledge management Quality Assurance Coordination Institutional Strengthening National Institutions

2.

4. Project Progress and Outputs - Output 1: Enhanced institutional capacity for leadership and coordination to plan, manage and coordinate ODA.(continuation)

 Likewise, the MTR team also noted the ad hoc and fragmented nature of capacity building activities, without systematically assessing the training needs of individuals across the spectrum of government. Furthermore, there were concerns expressed by several stakeholders, to which the evaluation team largely subscribes, about the selection process of the trainees, without conducting a proper trainee profiling and needs assessment exercise. The positive aspect of some of these training activities, however, is that the selection of training providers, course contents and pedagogy, mostly delivered by national entities, were generally sound and aroused significant enthusiasm and interest among the trainees. The following table gives a year-wise breakdown of events and participants in various training activities (2016-2018). 

The MTR team examined a number of issues relating to the sustainability of the interventions, and absorptive capacity of IECCD. One common concern raised during the interview process was this: although IECCD takes a greater responsibility to manage and coordinate aid in Nepal, it is overburdened with an increased aid portfolio in the most recent years, thus limiting its time and effectiveness in dealing simultaneously with several donors and an increased portfolio of projects. The institutional capacity of IECCD is also affected by regular civil service transfers. As a result, development partners often face difficulties to carry on dialogue and day to day affairs with a stable point of contact.8 A focus on proper handovers and the transfer of institutional memory is therefore key. There was also concern that in the absence of an Organizational Development (OD) needs and capacity assessment for IECCD, the activities undertaken remain ad hoc in nature, and are largely reactive pursuits.


Tag: Effectiveness Sustainability Aid Coordination Communication Knowledge management Results-Based Management Institutional Strengthening National Institutions

3.

4. Project Progress and Outputs - Output 1: Enhanced institutional capacity for leadership and coordination to plan, manage and coordinate ODA.(continuation)

Engagement of DPs and line ministries in joint training and occasional dialogues, taking a ‘whole of government/whole of partners’ approach can also give credence to the principle of an inclusive development approach, thus making development partnerships effective and mutually beneficial. In this regard, the review team strongly advocates for the development of a Mutual Accountability Framework (MAF) with roles, responsibilities and accountability of the government and DPs clearly articulated and periodically assessed. This does not in any way, nullify or amend the respective bilateral agreements the DPs have with the GoN. The MAF is a part and parcel of the Paris and Accra declarations where over one hundred countries have committed to a new model of partnership, in which donors and partner countries hold one another mutually accountable for development results and aid effectiveness. Mutual Accountability Framework is a practical response to recent experiences in building greater transparency and accountability at country level, and to lessons learned about the role of country ownership in delivering development results.


Tag: Effectiveness Aid Coordination Anti-corruption Donor relations Partnership Institutional Strengthening National Institutions

4.

4. Project Progress and Outputs 

Output 2: Capacity of Ministry of Finance strengthened for high quality and evidence based analysis to inform policy decisions

The MTR team has noted EDFC project’s contribution to create a good foundation within IECCD for developing the culture of evidence-based policymaking with a proactive role to manage, analyze, and disseminate aid data. The DCR, which is MoF’s flagship annual report using data from the AMP was published eight times so far, supported by the earlier DCEAMC and the current EDFC project. The most recent publication is the 2017/18 DCR (December 2018). There has been significant improvement in the timeliness of the report publication, which is now occurring within 5 months after the close of the fiscal year, compared to the earlier 8 to 9 months of lead time. The DCR also saw a significant improvement in the area of data synthesis and analysis, which is due to improved quality assurance mechanisms by the EDFC management. New analysis, such as on gender, in easy language has been added, and impressive data presentation gives added value to the publication. The DCR is now a complete one-stop document for anyone interested in research, policy development and sectoral analysis, within the government, DPs, INGOs/NGOs, as well as academic and think tank bodies.


Tag: Effectiveness Policies & Procedures Results-Based Management Country Government Institutional Strengthening Policy Advisory National Institutions

5.

4. Project Progress and Outputs 

Output 2: Capacity of Ministry of Finance strengthened for high quality and evidence based analysis to inform policy decisions (continuation)

The MTR team in this connection suggests that a serious attempt be made to gauge the capacity assets and gaps within the MoF/IECCD in data analysis for evidence-based policy formulation. In support of this capacity endeavor, MoF could possibly form a small Aid Knowledge Management cum Research Unit within IECCD that can house a limited number of quality researchers, and new generation policy analysts. Working closely with the Economic Policy Analysis Division of the MoF, the unit’s functions will be fully devoted to development and aid management related research. They could assist IECCD in the data analysis, as well as train researchers within the line ministries, and support the NPC in the preparation of key documents, such as the Five Year Plan. 


Tag: Effectiveness Communication Knowledge management Country Government Institutional Strengthening National Institutions

6.

4. Project Progress and Outputs 

Output 3: Aid Management Information System (AMIS) is institutionalized with enhanced user interfaces, collection and validation process, functionalities 

One of the major outputs of the project is its successful support to IECCD/MoF in developing a homegrown online aid portal called the Aid Management Information System (AMIS), a web based software application that will help the country to track and manage its aid flows. The AMIS, which was initiated in 2017, will succeed the Aid Management Platform (AMP) in 2019, and serve as a singleentry window for all ODA related information in the country. By March 2019, AMP captured aid data of all registered DPs working in Nepal, and the new AMIS is expected to be launched shortly. MoF, with support from EDFC, has also initiated an exercise exploring automatic data import from the International Aid Transparency Initiative (IATI) repository into the Nepal AIMS, on a pilot basis. A key expected benefit of the IATI pilot is to reduce data entry burden for the AMIS by importing compatible data directly from IATI. In addition, DP focal points and IECCD/line ministry and INGO focal points have begun receiving training on the AMIS data entry process and AMIS related core functions. Concerned IECCD staff have also been trained on AMIS operations to ensure handover of AMIS administration once the project ends.


Tag: Effectiveness Aid Coordination Anti-corruption Civic Engagement Donor relations Technology Data and Statistics

7.

4. Project Progress and Outputs 

Output 3: Aid Management Information System (AMIS) is institutionalized with enhanced user interfaces, collection and validation process, functionalities (continuation)

These include: use of the data for the DCR; formulation of country portfolio/program documents by DPs; regular use of data by external think tanks and researchers; and inputs to EDFC’s own commissioned analytical studies, such as the SWAp study and Development Finance Assessment. AMP has also created a positive competition among DPs to be listed as a top ranking donor in terms of disbursement Thus, they are more incentivized to report aid information as quickly as possible. INGOs are also using AMP data as a reference to identify the patterns and sectors of funding in Nepal and design their strategic documents and interventions accordingly. 


Tag: Aid Coordination Data and Statistics

8.

5. Findings and Analysis of the Review Criteria

This section is the most critical one in that it gives an interpretation of the results of the project as assessed against the following criteria: relevance; efficiency; effectiveness and sustainability. 

Relevance The relevance of this project was judged from the perspective of the need for improvement in the quality of development management, better harmonized GoN-DP actions, and capacity building of actors at various levels. In concrete terms, the project’s relevance can be understood from the following:

- Government of Nepal’s strong commitment to the Paris Declaration (2005) on aid effectiveness, built around the 5 main principles: ownership, alignment, harmonisation, managing for development results, and mutual accountability. It also finds its relevance in Monterrey Consensus (2002); HLM-1, Rome (2003); HLM-3, Accra (2008); and subsequent HLM-4, Busan (2011) and the HLM-2, Nairobi (2016).


Tag: Relevance Aid Coordination Ownership SDG Integration

9.

5. Findings and Analysis of the Review Criteria

Efficiency

This has been assessed as a measure of how resources/inputs (funds, expertise and time) have been converted into outputs and the extent to which funding, staffing, time and administrative resources were effectively utilized for the achievement of results within the set annual work plan. The total annual budget for 2016 was USD 196,780 of which USD 158,263 was spent. This represents 80 percent of the total budget. The total annual budget for 2017 was USD 576,188 of which USD 547,170 was spent, i.e., 95 percent of the total budget. In 2018, the total annual budget was USD 526,940 of which USD 493, 970 was spent in 2018, which represents 94 percent of the total budget. Average spending of three years is 89.66 percent, which is a significant figure. In relation to program expenses, a considerable portion of funds were spent on aid literacy training (USD 19,667 and USD 84,500 in 2016 and 2017 respectively) and international visit/training (USD 19,169 in 2016 and USD 34,370 in 2016 and 2017 respectively). In 2018, the largest portion of the program budget (USD 24,076) was spent on project monitoring. While assessing the progress against annual work plans from 2016 to 2018, the 2016 expenditures occurred in relation to most of the planned activities under each project output. Only two activities, namely, a) DCP High Level Implementation Committee established and operational and meeting at a minimum of three time per years, and b) Development Finance Assessment undertaken and analytical report produced were achieved by 50 and 80 percent respectively. Likewise, all activities planned for 2017 under each output have been achieved by 100 percent except a few activities such as a) participation and presentation IECCD officials and other government officials in international forums, b) initiate review of DCP in the context of new Constitution, c) preparation of Aid Guideline, and d) finalize and publish Development Finance Assessment. Interestingly, all planned activities for 2018 were achieved close to 100 percent. This indicates EDFC’s attention to the implementation of its annual work plan in all the three project years, with almost on average 90 percent of budget delivery.


Tag: Effectiveness Efficiency Aid Coordination Human and Financial resources Policies & Procedures Project and Programme management Results-Based Management

10.

Sustainability

Sustainability is a long-term result that is unlikely to be fully visible even during the life cycle of the project, let alone in the immediate run. As described in the above section, at this point in time, sustainability can be assessed through assessing the symptoms of progress in the aid effectiveness culture and practices in Nepal. The MTR team has noted some immediate impacts of the project that have the potential to contribute to the project’s long-term sustainability. One key impact of the EDFC project is its catalytic role to motivate the DPs and INGOs in Nepal to report aid disbursement information to the AMP which can be considered as a first step to increase aid transparency, as well as strengthening aid data management in Nepal. As claimed by IECCD officials, AMP has also been an important source for the government to obtain comprehensive information about donors’ key areas of interventions, which has eventually contributed to government’s ability to take judicious and evidence-based decisions in the course of receiving foreign aid in the priority areas of the government. AMP has also created positive competition among development partners to report aid disbursement information on a regular basis. Another significant area of sustainability is the increased awareness/sensitization among government officials both from MoF, and line ministries on aid effectiveness, equipping them with some basic skills needed for aid management, and their ability to distinguish the roles of various development actors on aid effectiveness. Aid literacy training conducted on a regular basis among government officials has played an important role in this regard.


Tag: Sustainability Aid Coordination Anti-corruption Communication Donor relations Knowledge management Promotion of dialogue Advocacy Awareness raising Institutional Strengthening Data and Statistics National Institutions

Recommendations
1

A comprehensive institutional needs assessment with respect to IECCD for effective ODA management and mobilization should be undertaken. This could provide an understanding of specific knowledge and skills assets and gaps of officials in IECCD, knowledge management and production needs, technical needs, communication and coordination needs, and ways to improve and strengthen its mandates.

2

Any future phase should consider a mapping of mutual responsibilities of the GoN and the DPs alike, and a Framework of Mutual Responsibility should be prepared, and agreed upon by both parties for greater accountability and transparency in development transactions.

3

Capacity building training, such as negotiation training, should be scaled down. Instead, a comprehensive capacity gap and needs assessment involving IECCD and the foreign coordination sections of the line ministries to be conducted which should inform areas of capacity building and modalities in support of a whole-of-government approach. These activities may involve DP officials also as recipients of capacity building interventions. It will bring additional advantages in terms of relationship building as a unified approach.

4

Capacity building initiatives should be extended to areas such as inter-agency coordination, South-South Cooperation (SSC), and various financing engagement models (blended financing, private sector financing); contract management, development project preparation and monitoring and evaluation. An extended phase of EDFC should, as a priority, consider targeted interventions in South-South Cooperation. Interest from some of the current global leaders in SSC should be harnessed and resources mobilized from these donors for funding specific SSC activities that will see Nepal, both as a beneficiary and a provider of ideas and technologies, leveraging on its comparative advantages and proven expertise. Similar funding possibilities should be explored for Triangular Cooperation (TrC) in partnership with DPs. A future phase of the project should include a component on SSC and TrC, beginning with a need and opportunity analysis. MoF may consider establishing under the new phase, a South-South Knowledge and Innovation Unit within IECCD. The Unit can, among other activities, provide seed funding and provide capacity development opportunities for young entrepreneurs who can act as partners in the SSC activities.

5

Capacity building trainings related to development cooperation should be integrated within the in-service training plans of the NASC/Public Service Training Department (PSTD), as a matter of routine practice. The role of MoF/IECCD in advocating and institutionalizing this will be strategic, and can bring quick results in adding this new concept into the overall curriculum of PSTD.

6

To enhance the understanding of aid mobilization issues among the parliamentarians, provincial and local government leaders and officials, the EDFC project can initiate aid literacy training targeting these key stakeholders. The EDFC project, or its successor phase, should focus on training, advocacy, and opening the opportunity for dialogue between the central and sub-national/provincial actors on the importance of managing ODA funds, the accountability triggers, and the importance of ODA in the overall budgetary process of Nepal. DPs and the GoN may separately forge partnerships in developing strategies on specific issues relevant to strengthening federal government, such as fiscal decentralization, local revenue generation, and planning and budgeting related subjects as separate interventions.

7

In line with the above, and considering the new federal governance structure of Nepal, it is important to set up a new and vibrant coordination mechanism between and across federal and provincial governments on development finance/ODA. A coordination mechanism in the form of periodic face-to-face dialogue, opportunities to share the progress of the aid funded projects, and strategic visits of MoF officials to the field to observe the progress of the projects can be some of the activities in this regard.

8

Training, specifically focusing on the use of data for policymaking is also recommended for officials from the line ministries and MoF. Such training over the years can create a critical mass of human resources within government structures, which eventually can contribute to a culture of evidence-based policymaking. No matter where the officials are transferred, the portability of the knowledge to be gained from these training programmes will be useful and sustainable across the wider government machinery.

9

In line with the above recommendation, IECCD should gradually build its research capacity by creating a Research and Knowledge Management Unit within IECCD to house a number of quality researchers, and new generation policy analysts. These trained research professionals could assist IECCD in the data analysis and research, as well as train researchers within the government. Such capacities could, inter alia, support institutions like the National Planning Commission in the preparation of key documents, such as the Five-Year Plan. The exact institutional arrangements, including short- and long-term financing arrangements for such a unit should be further scoped through consultations. The aspect of avoiding any duplication of functions with research and knowledge management units in other parts of MoF/GoN, should also be considered.

10

The Development Cooperation Policy (DCP) should be followed up by an action plan for its operationalization. This will give an opportunity to engage the line ministries, INGOs, NGOs, media, parliamentary committees and think tanks with regard to clarifying any issues and building a shared understanding pertaining to the DCP.

11

IECCD/EDFC project can facilitate a change in the Nepal aid consultative mechanism, with the GoN remaining at the helm of affairs. The Government could take the leadership role as Chair of a Development Coordination Group, with co-chair from the DPs on a rotational basis. The separate sector/thematic groups can also be led by individual line ministries, where DPs mandated for technical areas (health, education etc) could co-chair these forums on a rotational basis. This will give an opportunity for the existing International Development Partners Group (IDPG) to work in greater harmony with the government established mechanism on development coordination.

12

A future phase should consider engagement with media on development effectiveness subjects, through occasional briefings, and perhaps organizing some training programmes and regional study tours for building capacity of local media to report on development effectiveness with accuracy. Engagement with media should be led by MoF/IECCD, with EDFC remaining as the support provider. There is also considerable scope in engaging INGOs; NGOs; private sector representatives; civil society organizations (CSOs), think tanks, and the Parliamentary Committee on Sustainable Development and Good Governance, as potential watch dogs in various forums, as a matter of routine and institutionalized practice.

 

The above recommendations are not in any degree of priority. All are important and may be considered as integral part of a sustained development effectiveness practice in Nepal. The GoN, UNDP and DFID may wish to prioritize these recommendations for their eventual implementation in phases.

1. Recommendation:

A comprehensive institutional needs assessment with respect to IECCD for effective ODA management and mobilization should be undertaken. This could provide an understanding of specific knowledge and skills assets and gaps of officials in IECCD, knowledge management and production needs, technical needs, communication and coordination needs, and ways to improve and strengthen its mandates.

Management Response: [Added: 2019/11/20] [Last Updated: 2021/02/07]

Agreed. Institutional Capacity needs assessment will be incorporated in the second phase of the project to be initiated from January 2020.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Incorporate in the new project document activity for the institutional and capacity needs assessment
[Added: 2019/11/20] [Last Updated: 2020/05/22]
Inclusive Economic Growth Unit 2020/03 Completed Incorporated into new project document ( under Key Activity 1) History
2. Recommendation:

Any future phase should consider a mapping of mutual responsibilities of the GoN and the DPs alike, and a Framework of Mutual Responsibility should be prepared, and agreed upon by both parties for greater accountability and transparency in development transactions.

Management Response: [Added: 2019/11/20] [Last Updated: 2021/02/07]

Agreed.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Incorporate the development of mutual accountability framework in the new project document.
[Added: 2019/11/20] [Last Updated: 2020/05/22]
Inclusive Economic Growth Unit 2020/03 Completed Incorporated into new project document History
Incorporate the development of mutual accountability framework in the new project document.
[Added: 2019/11/20] [Last Updated: 2020/05/22]
Inclusive Economic Growth Unit 2020/03 Canceled
3. Recommendation:

Capacity building training, such as negotiation training, should be scaled down. Instead, a comprehensive capacity gap and needs assessment involving IECCD and the foreign coordination sections of the line ministries to be conducted which should inform areas of capacity building and modalities in support of a whole-of-government approach. These activities may involve DP officials also as recipients of capacity building interventions. It will bring additional advantages in terms of relationship building as a unified approach.

Management Response: [Added: 2019/11/20] [Last Updated: 2021/02/07]

Agreed. Capacity needs assessment will be combined with the institutional needs assessment.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Conduct one comprehensive institutional and capacity needs assessment
[Added: 2019/11/20] [Last Updated: 2022/01/20]
Inclusive Economic Growth Unit 2021/12 Completed Conducted Training Need Assessments with consultation IECCD/MoF, key federal ministries including key ministries of seven provincial government and various local level government officials and also consultations with development partners as well. EDFC II received TNA reports and training will be prioritized and conducted based on the TNA. History
Conduct one comprehensive institutional and capacity needs assessment
[Added: 2019/11/20] [Last Updated: 2021/01/07]
Inclusive Economic Growth Unit 2020/12 Canceled An activity has proposed in AWP of EDFC II. History
4. Recommendation:

Capacity building initiatives should be extended to areas such as inter-agency coordination, South-South Cooperation (SSC), and various financing engagement models (blended financing, private sector financing); contract management, development project preparation and monitoring and evaluation. An extended phase of EDFC should, as a priority, consider targeted interventions in South-South Cooperation. Interest from some of the current global leaders in SSC should be harnessed and resources mobilized from these donors for funding specific SSC activities that will see Nepal, both as a beneficiary and a provider of ideas and technologies, leveraging on its comparative advantages and proven expertise. Similar funding possibilities should be explored for Triangular Cooperation (TrC) in partnership with DPs. A future phase of the project should include a component on SSC and TrC, beginning with a need and opportunity analysis. MoF may consider establishing under the new phase, a South-South Knowledge and Innovation Unit within IECCD. The Unit can, among other activities, provide seed funding and provide capacity development opportunities for young entrepreneurs who can act as partners in the SSC activities.

Management Response: [Added: 2019/11/20] [Last Updated: 2021/02/07]

Agreed. As suggested, this will be incuded in new project.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Incorporate in the new project document trainings related to south-south
[Added: 2019/11/20] [Last Updated: 2020/05/22]
Inclusive Economic Growth Unit 2020/03 Completed Incorporated into new project document History
Incorporate in the new project document trainings related to south-south
[Added: 2019/11/20] [Last Updated: 2020/05/22]
Inclusive Economic Growth Unit 2020/03 Completed Incorporated into new project document History
5. Recommendation:

Capacity building trainings related to development cooperation should be integrated within the in-service training plans of the NASC/Public Service Training Department (PSTD), as a matter of routine practice. The role of MoF/IECCD in advocating and institutionalizing this will be strategic, and can bring quick results in adding this new concept into the overall curriculum of PSTD.

Management Response: [Added: 2019/11/20] [Last Updated: 2021/02/07]

Since there are several trainings courses for the civil servants so the current courses of the NASC will be reviewed first to take necessary action later.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Review the NASC course from the perspective of development cooperation
[Added: 2019/11/20] [Last Updated: 2020/05/22]
Inclusive Economic Growth Unit 2020/12 Completed MoF found that NASC and Public Financial Management Training Center (PFMTC) have already included this theme into curriculum. History
Review the NASC course from the perspective of development cooperation
[Added: 2019/11/20] [Last Updated: 2020/05/22]
Inclusive Economic Growth Unit 2020/05 Completed MoF found that NASC and Public Financial Management Training Center (PFMTC) have already included this theme into curriculum. History
6. Recommendation:

To enhance the understanding of aid mobilization issues among the parliamentarians, provincial and local government leaders and officials, the EDFC project can initiate aid literacy training targeting these key stakeholders. The EDFC project, or its successor phase, should focus on training, advocacy, and opening the opportunity for dialogue between the central and sub-national/provincial actors on the importance of managing ODA funds, the accountability triggers, and the importance of ODA in the overall budgetary process of Nepal. DPs and the GoN may separately forge partnerships in developing strategies on specific issues relevant to strengthening federal government, such as fiscal decentralization, local revenue generation, and planning and budgeting related subjects as separate interventions.

Management Response: [Added: 2019/11/20] [Last Updated: 2021/02/07]

Agree. The new project will include capacity building of all stakeholders on aid mobilization/development cooperation and initiate it from 2020. This will be a continuous activity throughout the project period for next 3 to 4 years.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Initiate capacity building training to the stakeholders
[Added: 2019/11/20] [Last Updated: 2021/11/29]
Inclusive Economic Growth Unit 2021/10 Completed A total of six trainings were conducted for the government officials. English language (2) and Economic diplomacy (1) at federal level and Cost Benefit Analysis (3) conducted for provincial/local government. History
Initiate capacity building training to the stakeholders
[Added: 2019/11/20] [Last Updated: 2021/01/07]
Inclusive Economic Growth Unit 2020/12 Canceled Three programs conducted and three are proposed for Province/local government officials History
7. Recommendation:

In line with the above, and considering the new federal governance structure of Nepal, it is important to set up a new and vibrant coordination mechanism between and across federal and provincial governments on development finance/ODA. A coordination mechanism in the form of periodic face-to-face dialogue, opportunities to share the progress of the aid funded projects, and strategic visits of MoF officials to the field to observe the progress of the projects can be some of the activities in this regard.

Management Response: [Added: 2019/11/20] [Last Updated: 2021/02/07]

Once the Aid mobilization guidelines is approved, necessary coordination mechanism at the province level will be created in line with the guidelines

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Support MOF to create institutional mechanism at the provincial level.
[Added: 2019/11/20] [Last Updated: 2020/05/22]
Inclusive Economic Growth Unit 2020/04 Completed The guidelines for mobilization of development cooperation in sub-national level has recently been approved by Cabinet. History
8. Recommendation:

Training, specifically focusing on the use of data for policymaking is also recommended for officials from the line ministries and MoF. Such training over the years can create a critical mass of human resources within government structures, which eventually can contribute to a culture of evidence-based policymaking. No matter where the officials are transferred, the portability of the knowledge to be gained from these training programmes will be useful and sustainable across the wider government machinery.

Management Response: [Added: 2019/11/20] [Last Updated: 2021/02/07]

The new project will focus on the capacity building of the MOF and line ministries on results-based management and use of data to inform poliices.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Include training and capacity building measures in the new project on results-based management and use of data .
[Added: 2019/11/20] [Last Updated: 2021/11/29]
Inclusive Economic Growth Unit 2021/10 Completed 8 AMIS Trainings were conducted for government officials and stakeholders. History
9. Recommendation:

In line with the above recommendation, IECCD should gradually build its research capacity by creating a Research and Knowledge Management Unit within IECCD to house a number of quality researchers, and new generation policy analysts. These trained research professionals could assist IECCD in the data analysis and research, as well as train researchers within the government. Such capacities could, inter alia, support institutions like the National Planning Commission in the preparation of key documents, such as the Five-Year Plan. The exact institutional arrangements, including short- and long-term financing arrangements for such a unit should be further scoped through consultations. The aspect of avoiding any duplication of functions with research and knowledge management units in other parts of MoF/GoN, should also be considered.

Management Response: [Added: 2019/11/20] [Last Updated: 2021/02/07]

MOF has a separate division on policy and research hence this recommendation is not relevant and applicable and hence no action needed. 

Key Actions:

10. Recommendation:

The Development Cooperation Policy (DCP) should be followed up by an action plan for its operationalization. This will give an opportunity to engage the line ministries, INGOs, NGOs, media, parliamentary committees and think tanks with regard to clarifying any issues and building a shared understanding pertaining to the DCP.

Management Response: [Added: 2019/11/20] [Last Updated: 2021/02/07]

Agreed. However, new project will advocate for the preparation of the action plan and provide necessary support if asked by MOF.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Request MOF for the preparation of the action plan.
[Added: 2019/11/20] [Last Updated: 2020/05/22]
Inclusive Economic Growth Unit 2020/06 No Longer Applicable [Justification: Not relevant and applicable ]
Not relevant and applicable History
11. Recommendation:

IECCD/EDFC project can facilitate a change in the Nepal aid consultative mechanism, with the GoN remaining at the helm of affairs. The Government could take the leadership role as Chair of a Development Coordination Group, with co-chair from the DPs on a rotational basis. The separate sector/thematic groups can also be led by individual line ministries, where DPs mandated for technical areas (health, education etc) could co-chair these forums on a rotational basis. This will give an opportunity for the existing International Development Partners Group (IDPG) to work in greater harmony with the government established mechanism on development coordination.

Management Response: [Added: 2019/11/20] [Last Updated: 2021/02/07]

Creation of development coordination group or strengthening the existing mechanism is a good idea. It will be taken up by new project. 

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Support MOF in creating donor coordination group or strengthening the exiting group.
[Added: 2019/11/20] [Last Updated: 2020/05/22]
Inclusive Economic Growth Unit 2020/04 Completed Ministry itself is planning to strengthen and expand the existing coordination mechanism. History
12. Recommendation:

A future phase should consider engagement with media on development effectiveness subjects, through occasional briefings, and perhaps organizing some training programmes and regional study tours for building capacity of local media to report on development effectiveness with accuracy. Engagement with media should be led by MoF/IECCD, with EDFC remaining as the support provider. There is also considerable scope in engaging INGOs; NGOs; private sector representatives; civil society organizations (CSOs), think tanks, and the Parliamentary Committee on Sustainable Development and Good Governance, as potential watch dogs in various forums, as a matter of routine and institutionalized practice.

 

The above recommendations are not in any degree of priority. All are important and may be considered as integral part of a sustained development effectiveness practice in Nepal. The GoN, UNDP and DFID may wish to prioritize these recommendations for their eventual implementation in phases.

Management Response: [Added: 2019/11/20] [Last Updated: 2021/02/07]

Agreed. It is indeed important to engage all stakeholders to ensure greater development effectiveness. This will be included in new project.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Include engagement of media and other stakeholders in the new project document to make the development cooperation more effective.
[Added: 2019/11/20] [Last Updated: 2021/02/08]
Inclusive Economic Growth Unit 2021/01 Completed Project has included Multi-stakeholder coordination platform meetings in the 2021 workplan in order to engaged with different stakeholders for development effectiveness. History

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