LGCDP - Progress, Opportunities & Challenges

1. LGCDP - Progress, Opportunities & Challenges Som Lal Subedi National Programme Director

2. Why LGCDP Poverty reduction through improved services Strengthening both supply & demand sides of local governance Aid effectiveness & harmonization through Decentralization & SWAp Structural reform in grant system Capacity building

3. Underlying Principles of LGCDP Social inclusion & gender equity Downward accountability Performance & equity-based funding Rights-based community-led development Balancing the demand & supply sides of development Harmonized & process driven approach (aligned with Paris Declaration)

4. Major Instruments of LGCDP MCPM Information, education & communication Social mobilization LGAF Capacity grants & capacity development Topping up grants Blending government & TA inputs

5. Programme Opportunities National coverage of 75 DDCs, 58 Municipalities & 3915 VDCs Serving all people in all corners but targeted at those most in need Working with all spheres of governance - public sector, private sector & civil society Supported by a unified approach from government & DPs

6. AchievementsOutput One - Communities & Community Organisations Participate in the LG Process Social Mobilization guidelines approved District Social Mobilization Committee formed in 8 Districts SM monitoring underway 6

8. Achievements - Output 2 Increased capacity of citizens, communities & marginalised groups to assert their rights & hold LBs accountable IEC guidelines developed & approved LGAF NC formed & active – Civil Society Representatives selected DAG training guidelines approved - Rs 1 lakh grant provided to all 75 DDCs CD of district Dalit & Janjati coordination committee guidelines approved - Rs 1 lakh grant provided to all 75 DDCs 8

9. Achievements - Output 3LBs gain access to greater fiscal resources in equitable & appropriate ways • Topping-up grant • guidelines for DDC, VDC & Municipality approved • Around Rs 2.5 billion provided to 67 DDCs, 56 Municipalities & 2,749 VDCs • All 58 Municipalities assessed for MCPMs • Overview of finance system - MCPMs, block grant guidelines, allocation completed • QA manual for MCPM prepared & piloted in 5 DDCs & 4 Municipalities. 9

10. Achievements - Output 4Appropriate CD services passed at all levels of LG service delivery Capacity Development manuals for all LBs designed & approved CD plan preparation service providers in all DDCs & Municipalities selected CD grant provided to all DDCs & Municipalities Over 3,000 LB staff, service providers & politicians oriented on LGCDP; CD plan; social mobilization; GESI; MCPM; environmental & social safeguards & M&E 10

11. Achievements - Output 5LBs’ service delivery mechanisms & processes fine-tuned Sector conditional grant manual developed & approved Grant provided to 5 DDCs to implement sector conditional grant system EoIs for 28 activities assessed & RfPs for 9 issued SWAp background prepared 11

12. Achievements - Output 6 Decentralisation policy enables more effective, transparent & accountable LBs Operation manual on implementation of social & environment safeguard measures approved Environment focal desk established in 75 DDCs & grants provided Guide for Environment Management Plan for infrastructure projects prepared DIMC meeting organized 12

13. Achievements - Output 7Enhanced capacity of national government & institutions to support LBs MLD’s CD action plan developed & approved MLD’s HR section upgraded with IT support MLD’s GESI section established Exposure visits for MLD & LBFC staff Baseline survey of 60 districts completed Workshop on future structure & role of LBs in federal structure organized for legislature Policy paper on LBs’ role in federal system prepared 13

14. Achievements - Output 8Programme implementation support PCU fully operational 11 National specialists appointed Cluster Units established in 5 regions & 5 Cluster Coordinators recruited District Facilitators recruited in 61 DDCs NDVS selected (100 volunteers) LGCDP Operations’ Manual drafted 14

15. Achievements - Institutional mechanisms • Oversight Arrangements operational • NAC, NACSC, JFA, UNJPSC meetings held • Coordination arrangements operational • Thematic Groups functioning • Procurement evaluation teams established • Periodic review workshops underway • QAM & Annual Technical Review underway • Workplans & budgets prepared & updated

16. LGCDP Continues to Expand JFA has two more signatories & preparation for 2 more completed UNIFEM is a new partner UNDP’s Poverty & Environment Initiative linked into LGCDP PASRA to be aligned with Social Mobilization Innovative Social Protection programme about to commence

17. To Summarise • LGCDP’s structure all in place • Systems developed – management, funds’ flow, reporting, coordination • Orientation well underway • Guidelines developed, approved & disseminated • Enabling environment created thus LGCDP now poised to start achieving its intended results

18. Planned Achievements by end FY 09/10 Output 1: • Capacity building of around 400 local service providers & DDC staff on social mobilization underway • Social mobilization implementation in 1,600 VDCs • 300 district Social mobilization committee members orientated • Operation manual for GESI mainstreaming Output 2: • IEC core message planned • Operationalize LGAF 18

19. Planned Achievements by end FY 09/10 Output 3: • Blended block grant guidelines drafted • MCPM assessments of DDCs completed • MC assessments of VDCs underway • Quality assurance assessment of MCPM • Orientation on MCPMs well underway • Revenue mobilization training for LBs staff 19

20. Planned Achievements by end FY 09/10 Output 4: • CD plan for 75 DDCs & 58 Municipalities being developed • Continuation of core & standard training to LB staff, political party, civil society, & user’s group – estimated 3,000 recipients Output 5: • LBs’ audit guidelines drafted • Update & refine M&E indicators 20

21. Planned Achievements by end FY 09/10 Output 6: • LBs’ staffing policy review underway • Local environment policy proposals underway • Local environment policy guidelines • Train environment officers of LBs Output 7 • Existing LB M&E system reviewed • Baseline survey of local bodies • Operational manual of GESI strategy drafted • Capacity development plan of MLD drafted 21

22. Activities deferred to next FY Output 3 • Preparation of LBs revenue operation manual • Introduce land tax in municipalities • Design revenue / expenditure computer software package Output 4 • Develop international standard PFM system and training package Output 5 • Pilot safety net & social assistance program 22

23. Activities deferred to next FY Output 6 • Review decentralization & sector devolution policy • Formulate investment plan for grant expenses in the devolved sector • Preparation of action plan on sector devolution implementation Output 7 • Defining the role & functions of Fiscal Commission in the context of federalism 23

24. Financial status JFA • Total budget of LGCDP for the FY 2009/10 – US$ 43.70 million • Total budget delivered as of 15 Nov 2009 – US$ 38.89 million UNDP • US$ 255,000 budget - US$ 210,000 expenditure UNCDF • US$ 292,000 budget - US$ 115,000 expenditure 24

25. Challenges Monitoring & Evaluation of all VDCs Transforming LGCDP into SWAp Continuation & sustaining SM Empowering the local political mechanism Working with two fiscal year planning LB staff resources & time to absorb LGCDP Generalization vs LGCDP & LBs’ limitations Mobilizing the LGCDP for LB restructuring

26. LGCDP’s Expectations • Creating more conducive & supportive environment by all stakeholders • Support & suggestions / feedback