Institutional Strengthening of National Planning Commission

Project Description

The national development plan (Three-Year Interim Plan) lays a strong emphasis on decentralization; increased devolution to the local bodies by clearly demarcating the responsibility between the central and the local-level institutions, adopting an appropriate fiscal system, and strengthening human resource management. Further, the Government’s development policies and priorities (e.g., the Government’s policies and programs and the budget statement) following the declaration of the federal system, clearly emphasizes the need to reform the planning system and restructuring NPC accordingly.

In line with the Government’s policies and priorities, promoting good governance is central in ADB’s CSP for Nepal, which recognizes that more effective local level service delivery is a key to poverty reduction and addressing the root causes of the conflict. As part of its strategy to help strengthen governance in Nepal, the CSP seeks to support the Government’s decentralization initiatives, including fiscal decentralization, by strengthening the planning and implementation capacity of central and local institutions, improving devolved service delivery at grassroots level and pursuing institutional strengthening and capacity building. The TA is very relevant and in alignment with the emerging Nepal CPS, a strategic pillar of which is capacity building and state strengthening. The outputs of the TA were; (a) development planning framework for the federal system of governance, (b) new organizational structure for the central planning agency so it can play its role in the proposed planning framework, (c) broad organizational structure for planning institutions at the state and local levels, (d) strategy and a road map for making a transition to the new planning process; and (e) Inputs to formulate key components of the new periodic plan and orient it toward more decentralized approaches as part of the transition to the federal system of planning

Assignment Description

Review the current framework (institutional, legal and policy) and status of and concerns about decentralization in the country. • Review the prevailing legal framework and provisions and analyze the legal ramifications of the proposed federal system of development planning • Review the prevailing legal framework within which NPC is currently functioning and develop a new appropriate legal framework as necessary for the restructured central planning agency to function • Established rapport and coordinated with relevant government institutions and other stakeholders to build consensus and awareness on the TA objectives • Assisted in conducting and managing meetings, workshops and seminars for consultations as part of the TA activities as appropriate and requested by steering committee, ADB and other stakeholders • Provided the international institutional and organizational development specialist with necessary support and assist him with knowledge about local conditions in the relevant subject matter for carrying out the TA activities. • Developed a federal system of development planning based on the existing framework, the likely form and substance of federal system of governance and best international practices • Analyze the institutional and organizational implications of the proposed federal system of development planning and restructuring NPC while Working closely with the international institutional and organization development specialist • Developed an outline of an appropriate legal framework with key elements for operationalizing the proposed federal system of development planning • Develop an institutional framework for the proposed federal system of development planning and organizational structure for restructuring NPC while working closely with the international institutional and organization development specialist • Submitted necessary reports on inputs as required, supporting the delivery of the overall reports to the EA and ADB