Annual Progress Report (2009/2010)

PAF

ANNUAL PROGRESS REPORT (2009/2010)

Foreword

Poverty is still a stark reality of Nepal. A quarter of the Nepalese population live in abject poverty and they are denied the fundamental basic amenities of lives like drinking water, education, electricity and health. As Nepal's political agenda is currently debated, the greatest challenge before Nepal is to keep the social and economic agenda high on government's list of priorities and delivering development to the downtrodden communities even during the transitional period. Poverty Alleviation Fund (PAF) Nepal, since its establishment in 2004, has continuously strived in reaching out the unreached. The fund has helped 543,263 poor organized in 14,827 community organizations to realize their dream of securing livelihoods and a dignified life, through the implementation of 13,810 income generation and 2,740 Infrastructure related sub‐projects.

These community organizations, spread across 40 regular and other innovative districts, are pursuing income generation, community infrastructure, and capacity development related activities. PAF has underscored the importance of partnership and collaboration with different national and local stakeholders and has stroke a number of agreements and understandings to cater the maximum need of the poor. Agreements with Ministry of Local Development (MoLD), Federation of Nepalese Chamber of Commerce and Industries(FNCCI),United Nations World Food Programme (WFP) and AEPC are some of the glaring examples that demonstrate PAF's inner desire to work together to realize the national goals of poverty alleviation.

Six years on the ground, PAF has provided livelihood, empoowrement and social capital development opportunities to the poor women, Dalits and janajatis, bringing them to the mainstream of development. It is indeed encouraging to know that 66 per cent of the CO member beneficiaries are hard core poor, who are unable to feed themselves even for 3 months. Also, the 29 per cent of the CO member beneficiaries are Dalits, 27 per cent are Janajatis and 62 per cent are female and similar is the trend in terms of key position holders of the community organizations. Not only in numbers, PAF has brought about qualitative changes in the lives of the poor with marked increase in education, health, women participation and empowerment, collectivism and social relations also. A recently concluded follow up survey(2010) conducted by Centre for Economic Development and Administration (CEDA), has shown that PAF's IG activities have demonstrated signification positive effect on increased consumption and income in PAF programme areas. It is obvious now, that, had the PAF not assisted thousands of poor people in the remotest districts, they would have fallen deep in the poverty trap and the national poverty level would have further risen.

Though there are encouraging signs that PAF assistance is delivering results on the ground, there are areas that PAF needs to give extra focus. They include institutional development of COs, coordination and collaboration, focused approach for hard core poor, market linkages, strengthening monitoring, evaluation based feedback and learning, effective communications, advocacy and exit strategy. Also, PAF needs to strengthen action research on poverty and raise funds for the growing requirements in the expanded geographical areas.

I express my sincere thanks to the PAF Board Chairperson, Right Honorable Prime Minister Mr. Madhav Kumar Nepal for his unrelenting support to PAF, which has truly inspired the PAF family‐‐the Secretariat, PAF partners and CO community members at the remote districts as he paid monitoring visits to different districts. Also, I am thankful to the board of governors and all the professional staff for their incessant support to deepen our efforts in reaching out poor, and in fine‐tuning related plan and policies. More importantly, I take this opportunity to thank Ministry of Finance for allocating significant amount of budget for PAF for the fiscal year 2010/11 from the Government's internal resources. My deep felt gratitude goes to the World Bank and IFAD for their continued support to PAF.

Finally, I would like to pay tribute to all stakeholders including the members of community organizations and partner organizations, without whose support and active participation, PAF would not have been able to demonstrate results and impacts on the ground.

Vidyadhar Mallik

Vice Chairperson

Poverty Alleviation Fund

November 2010

List of Abbreviations and Acronyms

AEPC Alternative Energy Promotion Center

CBS Central Bureau of Statistics

CO Community Organization

CI Community Infrastructure

CB Capacity Building

CCP Community Contribution Plan

CBOs Community Based Organizations

CG Community Group

CIP Community Infrastructure Project

DDC District Development Committee

EIA Environmental Impact Assessment

FMR Financial Management Report

GOs Governmental Organizations

GTZ German Technical Cooperation

GON Government of Nepal

IG Income Generation

IEE Initial Environmental Examination

IESE Initial Environmental and Social Examination

IDA International Development Agency, World Bank

IFAD International Fund for Agriculture Development

LDO Local Development Officer

LDF Local Development Fund

MDGs Millennium Development Goals

MIS Management Information System

NEA Nepal Electricity Authority

NGOs Non Governmental Organizations

NPC National Planning Commission

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NOA Non Operating Account

OA Operating Account

OAG Office of the Auditor General

O and M Operation and Maintenance

PAF Poverty Alleviation Fund

PO Partner Organization

PSOs Private Sector Organizations

PM Portfolio Manager

PMR Project Management Report

RBB Rastriya Banijya Bank

REDP Rural Energy Development Program

RCIW Rural Community Infrastructure Works

R & D Research and Development

SM Social Mobilization

SAs Service Agencies

SNV Netherlands Development Organization

TAC Technical Appraisal Committee

UG User Group

UNICEF United Nations International Childern’s Emergency Fund

USD United States Dollar

VDC Village Development Committee

VCDP Vulnerable Community Development Plan

WFP World Food Programme

WB World Bank

Poverty Alleviation Fund (PAF) – Nepal Annual Progress Report (2009/2010)

Table of Contents

FOREWORD ...... I LIST OF ABBREVIATIONS AND ACRONYMS...... III TABLE OF CONTENTS ...... V LIST OF CHARTS...... VIII LIST OF FIGURES ...... XI LIST OF TABLES...... XII EXECUTIVE DIRECTOR'S REPORT...... XIV CHAPTER I: INTRODUCTION...... 1 1.1 PAF CONTEXT/OBJECTIVES...... 1 1.2 THE STRATEGY...... 1 1.3 GUIDING PRINCIPLES ...... 2 1.4 PROGRAMME COMPONENTS...... 2

1.4.1 SOCIAL MOBILIZATION/AWARENESS/EMPOWERMENT...... 2 1.4.2 INCOME GENERATION...... 3 1.4.3 COMMUNITY INFRASTRUCTURE...... 3 1.4.4 CAPACITY BUILDING ...... 4 1.5 OPERATIONAL MODALITY...... 4

1.5.1 SELECTION OF DISTRICT AND VDC ...... 4 1.5.2 PARTNERSHIP WITH POS ...... 5 1.5.3 SELECTION OF HOUSEHOLDS/SETTLEMENTS...... 5 1.5.4 COMMUNITY ORGANIZATION (CO)...... 5 1.5.5 COMMUNITY SUB‐PROJECT PREPARATION AND FUNDING ...... 5 1.5.6 COMMUNITY SUB‐PROJECT IMPLEMENTATION ...... 6 1.5.7 MONITORING OF THE PROGRAM ...... 6 1.6 SALIENT FEATURES...... 6 1.7 ORGANIZATIONAL OVERVIEW...... 6 1.8 THE PROGRAMME COVERAGE ...... 7 CHAPTER II: PAF PROGRESS AND ACHIEVEMENTS...... 8 2.1 ANNUAL ACHIEVEMENTS AGAINST TARGETS...... 8 2.2 COMPONENT WISE PROGRESS STATUS ...... 8

2.2.1 SOCIAL MOBILIZATION ...... 8 2.2.1.1 Community Organizations, Sub‐projects and Investments ...... 8 2.2.1.2 Program Cost Sharing (investment—IG Vs Infra, PAF Vs Community)...... 10 2.2.1.3 Facilitation of Community through POs ...... 12 2.3 REACHING OUT TO THE POOR AND SOCIAL INCLUSION ...... 13

2.3.1 CO MEMBERS ...... 13

2.3.2 CO MEMBERS BY POVERTY RANKING ...... 14 2.3.3 CO MEMBERS BY CASTE AND ETHNICITY ...... 15 2.3.4 CO MEMBERS BY GENDER ...... 16 2.3.5 CO MEMBERS BY KEY POSITION HOLDERS ...... 16 2.4 INCOME GENERATION AND MICRO ENTERPRISE ...... 18

2.4.1 IG ACTIVITIES—SECTOR, HHS AND INVESTMENT...... 18 2.4.2 IG ACTIVITIES INVESTMENT BY SECTOR AND REGION ...... 18 2.5 COMMUNITY INFRASTRUCTURE...... 23

2.5.1 NUMBER AND TYPE OF SCHEMES...... 24 2.5.2 DISTRIBUTION OF INFRA SCHEMES BY REGION ...... 24 2.5.3 DISTRIBUTION OF SCHEMES BY SECTOR...... 25 2.5.4 SECTOR‐WISE BENEFICIARY HHS BY REGION ...... 27 2.5.5 PAF INVESTMENT BY REGION ...... 28 2.5.6 COST SHARING BY REGION...... 28 2.6 INNOVATIVE SPECIAL WINDOWS SUB PROJECTS ...... 30 2.7 COMMUNITY INSTITUTIONAL DEVELOPMENT ...... 30 2.8 CAPACITY DEVELOPMENT ...... 30

2.8.1 CAPACITY DEVELOPMENT OF COS AND POS ...... 31 2.8.2 CAPACITY DEVELOPMENT ACTIVITIES FOR PAF STAFF ...... 31 CHAPTER III: INFORMATION MANAGEMENT, COMMUNICATION AND COORDINATION ...... 38 3.1 MANAGEMENT INFORMATION SYSTEM OF PAF ...... 38

3.1.1 THE PROGRESS...... 38 3.1.2 UPCOMING ...... 38 3.2 COMMUNICATION AND OUTREACH...... 38 3.3 COLLABORATION, COORDINATION AND PARTNERSHIP ...... 39

3.3.1 COLLABORATION IN SUB‐PROJECT IMPLEMENTATION ...... 39 3.4 PAF’S PUBLICATIONS – MANUALS DEVELOPED AND OTHERS...... 40 CHAPTER IV: MONITORING, EVALUATION AND RESEARCH...... 41 4.1 MONITORING ...... 41

4.1.1 MONITORING AT COMMUNITY LEVEL ...... 41 4.1.2 MONITORING AT DISTRICT LEVEL ...... 41 4.1.3 MONITORING AT CENTRAL LEVEL ...... 41 4.1.4 REVIEW ...... 41 4.2 EVALUATION ...... 41

4.2.1 BASELINE SURVEY FOR 30 NEW DISTRICTS...... 41 4.2.2 FOLLOW‐UP SURVEY ...... 42 4.2.3 MID TERM REVIEW (MTR)...... 42 4.2.4 IMPLEMENTATION COMPLETION MISSION ...... 42 4.3 RESEARCH...... 42

4.3.1 POVERTY POCKET IDENTIFICATION ...... 42

4.3.2 RE‐SOCIAL ASSESSMENT AND REVOLVING FUND STATUS ASSESSMENT...... 43 4.3.3 INTERNSHIPS...... 43 4.3.4 PROGRAM REFLECTION STUDY IN BAJURA ...... 43 4.4 OTHERS ...... 44

4.4.1 MONITORING VISITS BY PAF BOARD MEMBERS ...... 44 4.4.2 MISSIONS AND MONITORING VISITS BY WB...... 44 4.4.3 MONITORING VISITS BY GON ...... 44 CHAPTER V: FINANCIAL MANAGEMENT...... 45 5.1 FINANCIAL PLANNING AND MANAGEMENT ...... 45 5.2 BUDGET VS EXPENDITURE...... 46 5.3 FINANCIAL PROGRESS STATUS ...... 47

5.3.1 DISBURSEMENT TO COMMUNITY ORGANIZATIONS ...... 48 5.3.2 DISBURSEMENT TO PARTNER ORGANIZATIONS ...... 49 CHAPTER VI: LESSON LEARNED, ISSUES AND CHALLENGES ...... 50 CHAPTER VII: RECOMMENDATION AND WAY FORWARD...... 51 ANNEX 1: REPLICATION OF INNOVATIVE PROGRAM ...... I ANNEX 2: LIST OF CO FEDERATIONS AND COOPERATIVES IN THE DISTRICTS...... III ANNEX 3: CAPACITY DEVELOPMENT STATUS OF COMMUNITY ORGANIZATIONS...... I ANNEX 4: CAPACITY DEVELOPMENT STATUS OF PARTNER ORGANIZATIONS...... XI ANNEX 5: COLLABORATION EFFORTS AT THE DISTRICT LEVEL ...... XVI ANNEX 6: STAFF LIST AS OF OCTOBER, 2010 ...... XIX ANNEX 7: DISTRICT WISE PROGRESS STATUS FY 2066/67 (2009/10)...... XXI ANNEX 8: POS, COS AND COVERAGE (CUMULATIVE TO DATE) ...... XXIV ANNEX 9: CURRENT BOARD OF GOVERNORS (AS OF FEBRUARY 2011) ...... XXVI ANNEX 10: PAF ORGANIZATION STRUCTURE ...... XXVII ANNEX 11: PAF FINANCIAL STATEMENT ...... XXVIII

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List of Charts

Chart 1 : CO Members Gender Wise...... i

Chart 2 : District Population Ethnicity Composition Vs PAF Beneficiary in 25 Districts...... i

Chart 3 : PAF Benefited Poor HHs in 25 Districts ...... i

Chart 4 : PAF Investment IG Vs INFRA ...... i

Chart 5 : Contribution in Sub Projects ...... i

Chart 6 : Ratio of Cumulative Expenditure ...... i

Chart 7 : PAF Investment ...... 1

Chart 8 : Investment Trends ...... 1

Chart 9 : Cost Sharing in sub projects ...... 1

Chart 10 : Cost Sharing in INFRA sub projects ...... 1

Chart 11 : Cost Sharing in IG sub projects...... 1

Chart 12 : Cost Sharing by Region...... 1

Chart 13 : CO member‐Beneficiaries ...... 1

Chart 14 : Region wise CO Member HHs ...... 1

Chart 15 : CO Members by Poverty Ranking...... 1

Chart 16 : CO Members by Poverty Ranking by Region...... 1

Chart 17 : CO Member by Ethnicity ...... 1

Chart 18 : CO Member by Ethnicity by Region ...... 1

Chart 19 : CO Member by Gender by Region ...... 1

Chart 20 : CO Member by Gender ...... 1

Chart 21 : Key position holders by Gender ...... 1

Chart 22 : Key position holders by Ethnicity ...... 1

Chart 23 : Key position holders by Ethnicity by Region ...... 1

Chart 24 : PAF's Investment in COs...... 1

Chart 25 : Investment in IGA by sector...... 1

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Chart 26 : Investment in Livestock Sector ...... 1

Chart 27 : Trends of Investment in Livestock Activities...... 1

Chart 28 : Investment in Livestock Activities by Region ...... 1

Chart 29 : Investment in Agriculture and Forest related activities...... 1

Chart 30 : HHs involved in Trading...... 1

Chart 31 : Investment in Service Sector...... 1

Chart 32 : Region wise No. of subprojects...... 1

Chart 33 : Distribution of different no. of subproject in FY 2066/67...... 1

Chart 34 : Distribution of different no. of subproject in Cumulative...... 1

Chart 35 : Per HHs Community Contribution...... 1

Chart 36 : Cost Sharing in INFRA by Region in 2066/67...... 1

Chart 37 : Investment in INFRA by Region in Cumulative...... 1

Chart 38 : Investment in INFRA by Region in 2066/67 ...... 1

Chart 39 : Cost Sharing in INFRA by Region Cumulative...... 1

Chart 40 : Poverty in CO Members in Karnali Districts ...... 1

Chart 41 : CO key Position Holder by Gender in Karnali Districts...... 1

Chart 42 : Investment in IG & INFRA in Karnali Districts...... 1

Chart 43 : PAF Coverage in Karnali Districts ...... 1

Chart 44 : CO Key Position Holder by Ethnicity in Karnali Districts...... 1

Chart 45 : Contribution in Sub projects in Karnali Districts ...... 1

Chart 46 : Poverty in CO Members in Terai Border VDCs...... 1

Chart 47 : CO Members by Gender in Terai Border VDCs ...... 1

Chart 48 : PAF Coverage in Terai VDCs ...... 1

Chart 49 : CO Members by Ethnicity in Terai Border VDCs ...... 1

Chart 50 : Key Position Holder by Gender in Terai Border VDCs ...... 1

Chart 51 : Investment in IG & INFRA in Terai Border VDCs ...... 1

Chart 52 : Key Position Holder by Ethnicity in Terai Border VDCs...... 1

Chart 53 : Contribution in Sub projects in Terai Border VDCs ...... 1

Chart 54 : Ratio of Cumulative Expenditure ...... 1

Chart 55 : Financial Status for 2066/67 ...... 1

Chart 56 : Financial Status for 2065/66 ...... 1

List of Figures

Figure 1 : PAF Programme Districts ...... 7

Figure 2: Innovative special window sub projects...... 1

Figure 3 : PAF Funds Flow Modality...... 46

List of Tables

Table 1: Annual Achievements against targets for Fiscal year 2009‐10 ...... 8

Table 2: CO registration, CO Agreement and Sub‐project Agreement...... 9

Table 3 : PAF investment to the Community Sub projects ...... 9

Table 4: Cost sharing in the Community Infra Sub projects ...... 10

Table 5: Cost Sharing in the IG Sub projects...... 10

Table 6: Details of POs Status ...... 13

Table 7: CO member‐Beneficiaries ...... 14

Table 8 : CO members by Key position holders ...... 17

Table 9: Sector wise income generation activities by households and PAF investment...... 19

Table 10 : No of households involved and amount of investment in Livestock Sector by Category....20

Table 11 : PAF investment in Agriculture sector by category...... 22

Table 12 : Distribution of Infra Schemes by Region...... 24

Table 13 : Distribution of Schemes by Sector ...... 25

Table 14 : Benefited Household...... 27

Table 15 : PAF investment by region ...... 28

Table 16: PAF Coverage in Karnali District by HHs...... 33

Table 17: PAF Coverage in Karnali District by IG & INFRA ...... 33

Table 18: PAF Coverage in Terai Border District by HHs...... 35

Table 19: PAF Coverage in Terai Border District by IG and INFRA...... 35

Table 20 : Expenditure Trend...... 47

Table 21: Disbursement Expenditure to COs (in Million) ...... 48

Table 22 : Disbursement Expenditure to POs ...... 49

Table A 1: List of Innovative Programs Supported by PAF...... I

Table A 2: List of CO Federations formed through CO’s initiatives in Districts...... III

Table A 3: List of Cooperatives formed through CO’s initiatives in Districts ...... V

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Table A 4: List of HRD Activities conducted in CO...... I

Table A 5: List of HRD Activities conducted in PO...... XI

Table A 6: Collaboration at District Level...... XVI

Table A 7: List of Staffs...... XIX

Table A 8: District wise progress status FY 2066/67 (2009/10)...... XXI

Table A 9: POs, COs and Coverage...... XXIV

Table A 10: List of Current Board of Governors...... XXVI

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Executive Director's Report Delivering results at the ground

The fiscal year 2009/10 was important for PAF for many reasons . A follow up survey results of nine districts was completed with the encouraging results from the ground. Also, PAF expanded its coverage to additional 15 programme distircts during the same year and, also inked a number of important agreements with different institutions and agencies to establish synergies for the cause of poverty reduciton.

Six years on the ground, a total of 14,827 community organizations (COs) of poor are registered with PAF, out of which PAF has already inked agreements with 14,006 COs.

PAF supported community sub projects are in different stages of implementation. Second level of demand and proposals have also started coming upon the completion of first cycle of sub projects. Communities have also begun to build federations, network of COs and co‐ operatives as the communities have undertaken 13,810 Income Generation related sub‐ projects and 2,740 Infrastructure related sub‐projects so far till the end of the reporting period.

Reaching out to the poor

PAF has now reached 40 poorest districts defined by the Central Bureau of Statitics. Within these districts, village development committes(VDCs) are proritized on the basis of 17 poverty related social and economic indicators in 5 category where more weightage has been given to vulnerable community specific indicators..

As part of our tool to reach out the poor, participatory social assessment and community well‐ being ranking process identifies the poor community members as primary beneficiaries at the settlement level. In our analysis, about 57 per cent of the settlement households are identified as poor households in an average.

CO Members-Gender Wise In an overall scnerio, PAF has coverred 400,818 poor HHs as CO member beneficiary. Among Male 26% beneficiaries members in COs, 65.7 per cent members falls under hardcore poor category (food sufficiency less than 3 months among criteria fix by community), 25.6 per cent members falls under medium poor category

Female (food sufficiency more than 3 months but less 74% than 6 months among criteria set by the community), 8.6 per cent members falls under Chart 1 : CO Members Gender Wise poor category (food sufficiency more than 6 months but less than a year among criteria set by the community) and 0.1 per cent members falls under marginal Non‐poor Category.

Likewise, CO member households constitutes 29 per cent dalit, 27 per cent janajati, 2 per cent Muslim, 32 per cent Brahmin/Chhetri and 10 per cent Other ethnicity. Gender wise, 74 per cent are female members in COs.

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Similarly, the key position holders in the community organisation such as President, Treasurer, Secretary constitutes, 34 per cent Dalit, 27 per cent Janajati, and 2 per cent Muslim and 29 per cent Brahman/Chettri, and 8 per cent other ethnicity. Gender wise, 62 per cent are female key position holders in COs.

PAF Benefitted Poor Households (HHs) in 25 Districts District Population Ethinicity Composition Vs. PAF Beneficiary in 25 Districts

1,200,000 80.00 1,029,542 70.00 Others, 69.69 1,000,000 60.00 800,000 50.00 Others, 44.66

600,000 40.00 412,220

385,077 29.43 Dalit, 30.00

400,000 25.92 Janajati, Percentage

20.00 18.66 Janajati, 200,000 Dalit, 11.66 Dalit, 10.00 0 0.00 Total HH Total District Poor HH PAF Benefitted HH (93.42% of District Poor HH) District CO Member Bebeficiaries Chart 3 : PAF Benefited Poor HHs in 25 Chart 2 : District Population Ethnicity Districts Composition Vs PAF Beneficiary in 25 Districts When percentage beneficiery of PAF by ethinicity is compared with district percentage ethnicity composition(as shown in the graph below), it is obvious that PAF is focusing on socially excluded and disadvantageds groups such as Dalit and Janajati. In an overall scenerios, PAF has benefited 93.42 per cent of poor households in 25 districts (385,077 Poor HHs out of 412,220 poor HHs in 25 districts). PAF is working in 83 per cent of VDCs in 25 regular PAF districts (1,061 VDCs out of 1,275) and 48 per cent VDCs in 15 additional PAF regular districts (457 out of 941 VDCs).

All five districts of the Karnali zone are covered by the program and it is now workning in 129 VDCs, out of 134, benefiting 50,924 poor households.

Also, with its special focus on terai border districts, PAF is now working in 10 districts in

Tarai namely Mahottari, Rautahat, Sarlahi, PAF Investment Kapilbastu, Siraha, Bara, Bardiya, Dhanusa, Income Generation Vs Infrastructure Parsa and Saptari, benefiting 122,394 HHs and covering 307 VDCs. The coverage is 13 INFRA Total per cent of the poor HHs and 34 per cent of 21% the total VDCs. Out of 62 border VDCs of Kapilbastu, Mahottari, Rautahat, Sarlahi and

Siraha among above Terai districts, PAF IG Total program covered 44 VDCs ( i.e. 71 per cent 79% and benefited 14,287 HHs (i.e. 28 per cent of poor HHs in border VDCs).Further, Chart 4 : PAF Investment IG Vs INFRA innnovative pocket program is under implementation in Morang, Kanchanpur and Chitwan districts. It has covered an additional 6,913 poor households in 18 VDCs in those districts.

Program Cost Sharing

PAF is investing 82 per cent (i.e. Rs. 7,630m) of the total sub‐project cost. Community sharing is 15 per cent (7 per cent in Cash— i.e. Rs. 609m and 8 per cent in Kind—i.e. Rs. 750m) of the total sub‐project costs whereas other collaborating organizations mainly VDC/DDC (Village Development Committee/District Development Committee) have shared 3

Contribution in Sub Projects per cent (i.e. Rs. 302m ) in the total sub‐project CO Kind Others cost. In Income Generating sub projects, 8% 3% community has shared 9 per cent in cash (Rs. 589m) and 3 per cent in kind (Rs. 206m)

CO Cash whereas for Infrastructure sub projects, cash 7% contribution stands at one per cent (Rs. 20m) and 22 per cent in the form of kind (Rs. 544m). Apart from community contribution, DDC/VDC PA F 82% are sharing 3 per cent of the cost and other collaborating partners are sharing 9 per cent of Chart 5 : Contribution in Sub Projects the cost in infrastructure sub‐projects. Out of the total PAF investment, 79 per cent is in Income Generating sub‐projects and 21 per cent is in Infrastructure sub‐projects. About 88 per cent of the PAF investment in Income Generating Sub‐projects are established at Revolving Fund at community level being managed by COs.

Collaboration in sub‐project Implementation

The collaborative efforts are going on to supplement and complement with different program running in the district to bring discernible impact in considerably less time. There are several examples of collaboration with line agencies, local governments and donor agencies to implement the program and sub‐projects in the communities at district level. Several Memorandum of Understanding (MoU) has also been signed with different organizations at central level to facilitate different task as well as to facilitate collaboration in implementation of sub‐projects at community level.

Community Institutional Development

Community institutionalization building process is takign place some of the districts where community has felt need to federate themselves for certain function. Multi‐purpose co‐ operatives, co‐operatives for single function and federation of COs are formed as per communities' felt need. Informal networks of COs are being formed in each VDC, in the process of instiutionalization. A total of 166 CO federations are formed till the end of the reporting year. Also, 53 cooperated are established on the aegis of the PAF supported community organizations to carry out different activities aiming at alleviating poverty.

PAF outcomes

The follow up study in six sample districts, and three controlled districts, shows that the Household(HH) consumption in programme districts have increased by 28.4 per cent in real terms. Households (HHs) with food sufficiency for less than three months and four to six months has decreased by 10.6 per cent and 6.4 per cent respectively, whereas HHs with

xvi food sufficiency 7 to 9 months and 10‐12 months have increased by 5.0 per cent and 11.9 per cent.

The re‐social assessment, of the 289 sample COs from 24 programme districts covering 8,168 HHs, has shown that the average income of individual households has increased by 82.5 per cent. The comparative analysis, with three or more than three years of maturity period, shows that HH level assets and enrollment status of the children have increased while there was a marked improvement in food sufficiency for individual households. Also,construction and use of toilet/latrine was increased.

Also, the revolving fund assessment carried out during the end of FY 2066/67, shows that communities are managing their revolving fund satisfactorily. The data collected as of 16 July, 2010, shows that PAF provided fund has increased by 7.8 per cent. Similarly, among the total CO members, 84.6 per cent of the members have accessed the fund at least for once to initiate their income generation activities. The assessment also shows 83.8 per cent of the total fund has been invested as loan to its members, 14.1 per cent deposited at the bank and the remaining fund is with the COs in the form of the cash. Further, assessment shows that the average rate of repayment is 76.1 per cent.

Budget Expenditure

The total expenditure in FY 060/61 (2003‐04), FY 2061/62 (2004‐05), FY 2062/63 (2005‐06), FY 2063/64 (2006‐07), FY 2064/65 (2007‐08), FY 2065/66 (2008‐09) and FY 2066/67 (2009‐ 10) were Rs.5.78m, Rs. 247.32 M, Rs. 493.50 M, Rs 1,210.30m, Rs. 1,875.48m, Rs. 1,647.20m and Rs. 2,481.5m respectively.

In FY‐ 2066/67 (2009/10), total PAF expenditure of NRs. 2,481.5m which was 91.09 per cent of allocated budget. Total expenditure of PAF till FY 2066/67 is NRs. 7,960m.

Out of the total PAF expenditure of NRs. 7,960.65 M till FY 2066/67 (2009‐10), 93.90 per cent was in Program Ratio of Cummulative Expenditure uoto FY Implementation through CO & 2066/67(2009/10) PO(CO‐78 per cent & PO‐16 per Operating Monitor ing Cos t cent, 2.23 per cent in Training 3.15% Capital cost Monitoring, Training, Studies Workshop 0.72% 2.23% and Other Program Support, 0.72 per cent in capital Community investment for PAF and 3.15 per Inf ra & Innovative cent in PAF operation/ recurrent 93.90% (CO cost. 78% & PO 16%) Out of the total expenditure of Chart 6 : Ratio of Cumulative Expenditure FY 2066/67(2009/10), 96.52 per cent is from IDA (International Development Agency‐ the World Bank) grant, 2.80 per cent is from IFAD (International Fund for Agriculture Development) grant and the rest 0.69 per cent from GoN (government of Nepal) source..

Currently the PAF Project II is funded by IDA Grant with US$ 100m and IFAD Grant of US$ 4m for four years till January 2012. IDA disbursement to PAF till date is 58.29 per cent (as advance) i.e. equivalent to about US$ 58.29m. IFAD disbursement to PAF till date is US$

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7.5m. IDA grant for PAF Project I of US$ 40 M (Initial US$ 15m and Additional US$ 25m) has been made utilised by January 2009.

Lessons and Challenges

In view of the wide varieties of activities undertaken within the sub‐project, the challenges faced for sustainability of the sub‐projects include the inkage with market for sustaining income‐generating activities as well as the availibility of Insurance Safety‐Net particularly for livestock. PAF is also to explore an alternative to livestock based activities for landless poor as the huge demand are mainly livestock related. Another important issue before PAF is to build the Community Capacity to Manage Revolving Fund and Operate the Sub‐Projects and raise the awareness of the communit through functional literactcy. Also, there is a need to adopt different approach for poorest districts and districts with greater access and livelihood opportunities and special support to vulnernble poor, backward ethnic groups such as Mushhar, Dom, Chamar, Raute, among others.

While working towards above challenges, it is inevitable to work with diversified groups of poor communities supporting each other and network for linkages and collaboration with other programmes and line agencies to support communities.Further, legal institutionalization of Community Organizations through coalition or formation of functional co‐operatives and establishment of strong linkages with VDC/ DDC are also important for sustainability and long‐term support to these community groups.

PAF is working with its exit strategy focusing on its strategic thrust to enable community to go to sustained path to get out of poverty within a stipulated 5‐6 years of time. In this line, PAF needs to work on pocket area development approach based on the potential strength of the area. Monitoring, Research and Development needs to be further strengthened to support the implementation including capacity building of main actors i.e. CO, PO, Local Bodies and PAF. PAF

The future strategy

Based on lessons learned, PAF will work on the expansion of its programme in new VDCs and districts and important initiatives will be taken for the institutionalization of Community Organizations as co‐operative or other forms of institution as per their decision and link with financial institution and markets where program is already in implementation. Also the PAF will emphasize on the capacity Building of community organization, partner organization and PAF while Co‐ordination and collaboration would be also accorded high priority. This year onwards PAF is strenghening on syststmatic Grievance Handling Process with stakeholders views on the effective Performance Management System of COs, POs and PAF secretariat.

We look forward to work together with all stakeholders in the days to come.

Thank you.

Raj Babu Shrestha

November, 2010

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Chapter I: INTRODUCTION

1.1 PAF Context/Objectives

A quarter of the Nepali population still lives below poverty line. The incidence of poverty is much higher in rural areas than the urban centers and evidence shows that inequality and regional disparities are ever‐increasing.

The majorities of the poor live predominantly in rural areas and engage in traditional and subsistence farming on small plots of low quality land, have limited access to credit, infrastructure, markets and basic social services, often because of remoteness, and rely heavily on seasonal migration and remittance.

Certain caste, ethnic groups, women and those living in remote areas are socially excluded and lag seriously behind in terms of income, assets, and most human development indicators.

So, the main concern before PAF is reaching out to poor and excluded communities—who are mainly poor women, dalits and indigenous nationalities.

PAF seeks to contribute directly to achieve the following national objectives:

• To attain the level of poverty to ten per cent in 20 years in pursuant with the long term goal of Nepal Government; and • To reduce poverty by half by the year 2015 as per the Millennium Development Goals (MDGs). 1.2 The Strategy

PAF envisages the following strategies:

• Enable poor people through social mobilization and capacity building to organize and obtain quality basic services in cost‐effective and sustainable manner with their direct involvement in identification, planning, designing, executing and managing, operating & maintaining the schemes/ program. • Use Partner Organizations (POs) to help facilitate poor vulnerable people and their community Groups or Organizations to implement the program components, and they include local bodies, NGOs/ CBOs and private sector organizations. • Build partnership with various organizations working in its areas of operation at the village, district and national level in order to ensure holistic development intervention to bring discernible impact on poverty reduction and scaling up the programs in considerably less time. • Build PAF an independent, autonomous and a professional organization sensitive to the needs and aspirations of the poor, expected to comprise a lean and thin structure with a core professional staff only and act as facilitator.

1.3 Guiding Principles

PAF is guided by the following six basic guiding principles:

1. Targeted to poor (Antyodaya): Seeking the prosperity of poor and disadvantaged at the lowest end of economic ladder. The last is the first for PAF. PAF follows bottom- up approach rather than top-down approach. 2. Social Inclusion (Samabeshi): Seeking the participation of Dalit, Janjati, Women and other disadvantaged groups below poverty level. 3. Transparency (Pardarshita): All the activities of PAF are transparent. Every Community organization (CO) displays it activities on a board in their community. 4. Demand Driven (Mang Anusar): Programs are designed based on the needs and demands of the targeted people. 5. Direct Funding (Pratakchhya Bhuktani): Funding is made directly in the account of community organization to implement the programme. Every CO has opened a bank account in the nearest bank office as per the rule of PAF. This provides both empowerment and confidence in them. 6. Community Institutional Development: It is regarded as a crux for the sustainability of community organizations. Community institutionalization is exclusively done for the legal identity to the community organizations so that they can propel by delivering services to the targeted poor even after the PAF support come to an end. Multi-purpose co-operatives, co-operatives for single function and federation of COs will be formed as per communities’ need. 1.4 Programme Components

1.4.1 Social Mobilization/Awareness/Empowerment

Social mobilization is a main entry point of the program implementation. The identification of poor and formation of community organization with a group of poor households (25‐30 in average) is the major activity under this programme. Every programme VDC has a social mobilizer from the partner organization. H/she is responsible to assist the COs in sensitization, conscientization and organization.

Literacy programme has been added now in COs to help them with their literacy. Even in literacy part, functional literacy is most prioritized. Poverty is very closely linked with education, since it is considered that education helps to harness one’s potential.

The objective of the social mobilization is to build up capacity of communities for preparation, design, implementation, operation and management of community sub‐ projects to enhance their livelihoods.

Partner organizations identify the settlements of target communities based on the secondary information available in the district: including caste/ethnicity, income level and access to basic service facilities. The consultation is done with concerned stakeholders and key informants. After identification of the settlement, POs facilitate communities for participatory social assessment/well‐being ranking. Individual households of a settlement are categorized as the hardcore poor, medium poor, poor and non‐poor by the communities themselves. Only hardcore poor, medium poor and poor are organized into Community Organization (CO) to ensure “poor take decision” for them. Community Organization (CO) is

2 formed with membership from the defined household during social assessment. Community Organization with active participation of each member enlists problems, interest, needs and aspiration. After seeking necessary and relevant information, Community Organization identifies and prioritizes community sub‐projects based on informed choices and participatory way.

Community Organization also seeks necessary help and facilitation from Partner Organization (PO) for technical assistance particularly in survey, design, market study, pre‐ feasibility and feasibility studies. Economically, socially and environmentally viable community sub‐projects, prepared with participatory Community Action Planning (CAP) process, are selected and developed into the community proposals and related project is implanted in community.

1.4.2 Income Generation

Income Generation and Micro‐enterprise promotion is considered as a core activity of PAF in order to enable target groups to gain access to food security, education and health.

Based on demand driven approach, every member identifies and chooses IG activity while the partner organization facilitates the CO member to develop these activities into project and submit to PAF through Portfolio Manager for funding. Once TAC appraises and approves the proposal, an agreement is made between CO and PAF, and money is transferred into respective CO’s bank account. In preparing the proposal, the partner organization examines the soundness of the enterprise, so that the proposal is economically and environmentally sound and technically feasible.

PAF has been providing sustainable source of capital fund to the target groups in order to operate and manage various economic activities as per their interest and capacity. The capital fund is provided as a grant to the Community Organizations (COs). Through this, the community Revolving Fund (RF) is created in order to cater the capital requirement to launch and expand various economic activities to the target groups.

PAF believes in demand driven approach. While launching the economic activities the group members have sovereignty to choose the activities of their own interest and capacity. During the activity selection, local resource potential, appropriate technology, skill and market potential are entirely considered.

Training like entrepreneurship skill development and business literacy/book keeping is provided to target groups in order to enable them to launch IGAs MEs profitably and sustainably. Apart from this, if a particular target group/CO members require skill and technology up‐gradation on specific economic activities, their capacity is strengthened by providing subject matter related training, orientation and exposure.

1.4.3 Community Infrastructure

Physical infrastructures such as health center, rural water supply, small irrigation, rural road, trail, bridge and micro‐hydro which provide community with different types of services and facilities to improve their livelihood, and socio‐economic standards directly or indirectly may be termed as community infrastructure.

Poverty Alleviation Fund (PAF) aims to enable the poor, women and vulnerable groups including Dalits, ethnic minorities and other socially excluded groups to gain access to community infrastructures and advocates demand led community based approach for the implementation of community infrastructures. Thus community themselves identify, demand, take part in planning, implementation, operation and maintenance of community infrastructures.

There are two types of community infrastructures being demanded and implemented by communities. Those are: (1) Social Infrastructure which provides basic services contributing to improving basic health and enhancing human capital such as: drinking water supply, sanitation facilities, health post, school, community building, biogas, improved cook stoves etc. and (2) Economic Infrastructure which contribute to increasing agricultural production, ensuring access to the market centers, providing energy to run cottage industries and small enterprises etc. such as; irrigation, rural road, trail, bridge, culvert, micro‐hydro among others.

1.4.4 Capacity Building

Capacity Building and Human resource development is one of the main thrusts of Poverty Alleviation Fund. Effective and qualitative capacity Building/ Human Resource Development is the key to PAF success. Effective and efficient capacity building procedure will reinforce to sustainable development for communities for their livelihood income generating and infrastructure efforts continuously.

The main objective of capacity Building and Human Resource Development is effective implementation of PAF’s overall activities for Poverty Reduction of the targeted group through motivated, committed and trained manpower and to strengthen the community member’s capability for sustainable development by involving the poor themselves to undertake their needs for poverty alleviation and improved quality of life. The concept of Capacity building is “Help the communities to help themselves.”

PAF areas of capacity building are as follows:

• The capacity building of Community organization (at the grassroots level). • Capacity building of Partner organizations. • Capacity building of PAF staffs. • Observation study tour for staff and Board Members.

1.5 Operational Modality

1.5.1 Selection of District and VDC

District selection is done on the basis of district level poverty monitoring indicators developed by the Central Bureau of Statistics of the National Planning Commission. CBS has categorized all 75 districts of Nepal into three groups, each group consisting of 25 districts, based on values of overall composite indices computed considering 28 relevant socio‐ economic indicators. PAF works in all 25 districts belonging to Group C –categorized as most deprived districts and 15 districts from Group B. VDCs prioritization follows the district social

4 assessment and vulnerable community mapping. Prior consultation is done with District Development Committee and different stakeholders at district level for VDC selection.

1.5.2 Partnership with POs

Based on the eligibility criteria, PAF first selects POs working in its working districts. Community based Organizations, Non‐governmental Organizations (NGOs), Private Sector Organizations (PSOs), Local bodies such as District Development Committee (DDC), Municipality and Village Development Committee (VDC) and other line agencies are the potential POs for PAF. PO helps in social mobilization, facilitation, capacity building and technical assistance to CO. They facilitate COs to identify, plan, design, execute, operate and maintain the community sub‐projects. It also provides necessary technical support for successful completion of the sub‐project, and carries out monitoring of the sub‐projects.

1.5.3 Selection of Households/Settlements

PO is assigned in one or more VDCs to identify the settlements with higher focus on PAF target communities. Participatory social assessment is done at selected settlement. All households of a settlement are categorized into hardcore poor, medium poor, poor and non‐poor based on participatory well‐being ranking.

1.5.4 Community Organization (CO)

Community Organization (CO) is formed with membership from the defined household during social assessment. Only hardcore poor, middle poor and poor are organized into CO to ensure “poor take decision” for themselves. At least, 80 per cent of the CO members are to be poor women, Dalits and Janjaties. It is also mandatory that 50 per cent members of a CO should be women, and key positions including hairmperson, treasurer and secretary— must be fulfilled by poor women, Dalit and/or Janjaties. COs seek necessary help and facilitation and apply for registration in PAF.

1.5.5 Community Sub‐project Preparation and Funding

CO with active participation of each member enlists problems, interest, needs and aspiration. After acquiring necessary and pertinent information, CO identifies prioritized community sub‐projects based on informed choices through a participatory manner. CO also seeks necessary help and facilitation from PO for technical assistance, particularly in survey, design, market study, pre‐feasibility and feasibility studies. Economically, socially and environmentally viable community sub‐projects, prepared through participatory Community Action Planning (CAP) process, are selected and developed into the community proposals.

Upon acceptance of such community sub‐project proposals from registered COs, the proposals are appraised and approved from TAC decision for funding. However, such community sub‐projects must be either already incorporated in the VDC/DDC plan or ensured to be incorporated in the coming fiscal year’s VDC/DDC plan. An agreement is signed between PAF and CO. Soon after the agreement signed, the fund is disbursed directly to the CO’s operational account. While the first installment is transferred to operating account immediately, the successive installment are made after the CO accomplished some

5 progress and met key milestones, which include submission of physical progress report, financial progress report, PO monitoring report, status of community contribution and revolving fund, among others.

1.5.6 Community Sub‐project Implementation

CO or beneficiary community is in every respect responsible for implementation of an agreed community sub‐project. If required, CO revises community action plan (CAP) and ensures community contribution by developing community contribution plan, purchasing plan and revised implementation schedule. In doing so, CO sometimes, seeks necessary help from PO. PO facilitates CO for smooth implementation by ensuring necessary technical assistance and capacity building. However, Community is fully responsible for the operation and management of the sub‐project and its sustainability.

1.5.7 Monitoring of the Program

Participatory monitoring and supervision is adopted to monitor PAF activities in the field and ensure timely and effective implementation of the community sub‐projects. PAF monitoring system monitors regularly and periodically at COs, POs and PAF levels. PAF adopts participatory planning, monitoring and evaluation system to ensure participation and inclusion of the poor in their development activities. A system of public auditing and hoarding of public display board of community sub‐project information is mandatory to ensure transparency 1.6 Salient Features

PAF possesses distinctive beauty apart from other institutions/organizations. Its salient features are as follows:

• Poorest of the poor and socially excluded group plan and manage their program by themselves. • Quick response to meet demand of poor after project formulation. There is flexibility to formulate projects as per local needs and potentials (meet district development plan). • Direct funding is ensured to poor to manage their schemes. • Both income generation and infrastructure sub‐projects are meant for improving the livelihood of target community. • There is as much as necessary flexibility for linkages and partnership to fetch synergy and quick discernible impact. • Improved transparency and governance in service delivery. • Community Institutional Development for long‐term sustainability

1.7 Organizational Overview

PAF is an autonomous, independent and professional organization under PAF Act 2006.

The 12 members governing board, chaired by the Prime Minister, is responsible for policy guidance and programme approval.

Vice‐chairperson and 5 members‐ appointed by the government from among the development professionals while other 5 ex‐officio members include National Planning Commission (NPC) Secretary, Chairman of the Association of District Development Committees of Nepal (ADDCN), Chairman of Association of Village Development Committees of Nepal (AVDCN), Chairman of National Women Commission (NWC), and Chairman of National Dalit Commission (NDC). PAF Executive Director works as the Secretary to the PAF Board. 1.8 The Programme Coverage

Initially, in the Fiscal Year 2061/062, PAF started programme implementation in six districts (Siraha, Ramechhap, Pyuthan, Darchula, Kapilvastu and Mugu). Based on the success witnessed and experience gained in those six pilot districts, PAF has expanded programme coverage to an additional 19 districts from the fiscal year 2062/063. These districts include Achham, Baitadi, Bajhang, Bajura, Dadeldhura, Dailekh, Dolpa, Doti, Humla, Jajarkot, Jumla, Kalikot, Mahottari, Rasuwa, Rautahat, Rolpa, Rukum, Sarlahi and Sindhuli, thus covered all 25 districts belonging to the category of most deprived districts in Nepal.

Based on the experience gained in those six pilot districts and additional nineteen districts of category‐C of CBS, from fiscal year 2064/065 BS, PAF has expanded program coverage to an additional 15 districts falling in category‐B of the CBS. The new districts include Bardiya, Salyan, Parsa, Bara, Dhading, Sindhupalchwok, Dhanusa, Solukhumbu, Okhaldhunga, Khotang, Udayapur, Saptari, Taplejung, Terahthum and Panchthar. It is also beginning special programme in the VDCs bordering with India. Thus since fiscal year 2064/065 BS, PAF has covered 40 districts.

Besides its regular programme districts, PAF has also been working in other districts through innovative Special Window Programme to capture innovative initiatives of different organizations/communities at different places.

Figure 1 : PAF Programme Districts

Chapter II: PAF Progress and Achievements

This chapter discusses the annual achievements against the target and overall implementation status of the different programme components during the reporting period as well as the cumulative achievements.

2.1 Annual Achievements against Targets

PAF had set a definite target in relation to its key programme components‐‐social mobilization, income generation, community infrastructure activities, capacity building and innovative sub‐projects. The table below summarizes the achievements of the reporting year against the annual target

For the reporting year FY 2066/67(2009‐10), the achievement in income generations sub projects was far above the target i.e. 116 per cent while for infrastructure related projects the achievement was above 99 per cent. In case of innovative sub‐projects, PAF had set an annual outputs of 206 sub‐projects, while the achievements has remained only 97 (47 percent), owing to PAF’s special focus on the programme districts in the reporting year. Similarly in case of PAF expenditure for the reporting year, the achievement was 91 per cent against the project expenditure target of 2723.72 million.

Table 1: Annual Achievements against targets for Fiscal year 2009‐10

Description Annual Target Physical Progress Progress % Social Mobilizations and leadership trainings Income Generation Sub Projects 2,947 3404 116 Infrastructure Sub Projects 770 760 99.7 Innovative Sub-Projects 206 97 47 Total Sub-Projects 3923 4261 108.6 Beneficiary HHs(including Infra subprojects) 1,50,000 155,127 103% Programme Funding status for the reporting year Rs.2,723,717,000 Rs 2,481,049,000 91.09

2.2 Component wise progress status

2.2.1 Social Mobilization

Demand Driven Community Proposal and Direct Funding

2.2.1.1 Community Organizations, Sub-projects and Investments

Till the end of the reporting year, a total of 14,827 community organizations (COs) were

8 registered with PAF (1021 in Mountain, 9961 in Hilly region and 3,407 in Terai districts and 438 through Innovative Window Programme Districts).

Of the total registered COs, PAF inked agreements with 14,006 COs (971 in Mountain, 9340 in Hilly region and 3272 in Terai districts and remaining 423 in Innovative Window Programme Districts) to carry out different IG and community infrastructure related sub‐ projects.

Table 2: CO registration, CO Agreement and Sub‐project Agreement

Categories FY 2066/67(Reporting Year) Cumulative No. of Agreement No. of Agreement Regd. COs Regd. COs No. of No. Of No. of No. Of COs Agreement COs Agreement Mountain 159 188 219 1021 971 1115 Hill 2082 1975 2563 9961 9340 10658 Terai 1346 1232 1293 3407 3272 3359 Innovative 68 63 79 438 423 479 Districts Grand total 3,655 3,458 4,154 14,827 14,006 15,611

In the case of income generation, the most demanded activities from the community are related to agriculture, livestock, cottage industries, trade and skill based services. Similarly infrastructure sub projects are related to micro‐irrigation, link road, culvert/bridge, rope way, electricity/micro‐hydro, water mill, water supply, sanitation, school and health post building.

Table 3 : PAF investment to the Community Sub projects

Categories FY 2065/66 (Million Rs.) Cumulative (Million Rs.) IG Infra Total IG Infra Total

Mountain 110.305694 28.14987876 138.4555728 409.694605 99.86278073 509.5573857 Hill 945.0564783 544.955618 1490.012096 3982.013917 1265.74441 5247.758326 Terai 575.4512688 81.69907178 657.1503405 1466.773992 200.3669474 1667.14094 Innovative 28.510279 19.382951 47.89323 148.027632 58.11275439 206.1403864 Districts Grand 1,659 674 2,334 6,007 1,624 7,631 total

Till the end of previous FY 2065/66, agreements were made with 10,548 COs amounting to Rs. 5297m while during the reporting year alone additional 3458 COs signed agreement amounting to 2324m. Therefore in cumulative terms, agreements were made with 14,006 COs amounting Rs. 7,631.00 till the end of reporting year i.e. fiscal year 2066/067.

2.2.1.2 Program Cost Sharing (investment—IG Vs Infra, PAF Vs Community)

PAF alone has invested Rs. 1,659m in IG activities during the reporting year against the total cumulative investment has remained at Rs. 6,007m till the end of the reporting year. In case of Infra schemes, PAF invested 674m during the reporting year while cumulative investment has remained at Rs. 1624m.

In overall scenario, out of the total PAF investment, 79 per cent has been made in income generating sub‐projects and Chart 7 : PAF Investment 21 per cent has been funneled in infrastructure related sub‐projects.

Table 4: Cost sharing in the Community Infra Sub projects

FY 2066/67 (Million Rs.) Cumulative (Million Rs.) CO CO Categories PAF Cash Kind DDC/VDC Others PAF Cash Kind DDC/VDC Others Mountain 28.15 0.63 7.80 1.50 27.67 99.86 1.09 33.47 47.45 55.70 Hill 544.96 3.59 182.00 30.83 82.70 1218.61 14.98 402.90 161.13 214.95 Terai 81.70 1.58 22.64 0.18 2.88 247.50 3.63 84.26 4.08 6.03 Innovative Districts 19.38 0.25 8.99 3.86 2.11 58.11 0.36 23.89 8.30 17.82 Grand total 674.19 6.06 221.43 36.37 115.35 1624.09 20.07 544.51 220.95 294.51

Table 5: Cost Sharing in the IG Sub projects

FY 2066/67 (Million Rs.) Cumulative (Million Rs.) CO CO Categories PAF Cash Kind DDC/VDC Others PAF Cash Kind DDC/VDC Others Mountain 110.31 11.32 0.08 0.00 0.00 409.69 41.69 9.65 0.17 0.17 Hill 945.06 93.48 34.56 0.08 0.09 3526.93 339.48 145.76 5.26 5.40 Terai 575.45 58.06 11.66 0.00 0.00 1921.86 195.64 44.34 0.86 1.04 Innovative Districts 28.51 1.32 2.22 0.00 0.00 148.03 12.84 6.68 1.18 1.33 Grand total 1659.32 164.18 48.52 0.08 0.09 6006.51 589.64 206.42 7.46 7.94

PAF alone has invested in 1659m in IG activities in the reporting year against the total cumulative investment of 6007m till the end of the reporting year. In case of Infra schemes,

PAF invested 674m during the reporting year while cumulative investment stood at 1624m.

In overall scenario, out of the total PAF investment, 79 per cent has been made in income generating sub‐projects and 21 per cent has been funneled in infrastructure related sub‐ projects.

Chart 8 : Investment Trends

In terms of region wise PAF investment, PAF has invested the highest amount for IG sub projects in hilly region, followed by Terai, mountain and innovative districts. Similar investment trends is maintained in infra sub projects as well (See the chart above).

Chart 9 : Cost Sharing in sub projects Chart 10 : Cost Sharing in INFRA sub

In cumulative average, community sharing is 15 per cent (7 per cent in cash and 8 per cent in kind) of the total sub‐project cost whereas others, mainly the VDCs and DDCs, have shared 5 per cent of the total sub‐project cost. In total, PAF has invested 80 per cent of the community sub projects cost.

In the case of income generating sub projects only, community has shared 9 per cent in cash and 3.3 per cent in kind whilst in the case of infrastructure sub projects; it has remained 1 per cent in cash and 20 per cent in kind. DDC and VDC contribution is significant

11 with 8 per cent in case of infra sub projects while other organizations also contributed 11 per cent of total cost for infra sub‐projects.

Chart 11 : Cost Sharing in IG sub projects

In terms of region‐wise cumulative analysis, the contribution from COs, DDC/VDC and other agencies is much more significant with respect to Terai and innovative districts.

Chart 12 : Cost Sharing by Region

2.2.1.3 Facilitation of Community through POs

Partner Organizations (POs) are selected by PAF to facilitate Community Organizations of the Poor (COPs). The facilitation work of POs includes organizing COs, enhancing COs capacity development on planning activities, carry out detailed feasibility, survey design & estimates, and proposal preparation during preparatory phase, and provide technical assistance and monitoring and supervision during implementation phase.

As such, 406 Partner Organizations (POs) are working with communities (35 for Mountain Districts, 216 in hilly Districts, 132 for Terai districts and 11 for Innovative Window program and 12 for NDM‐World Bank Programme). Fourteen POs were terminated due to their poor performance.

Table 6: Details of POs Status

No. of Pos No. of POs No. of VDCs Description working Terminated covered Mountain 35 0 138 Hill 216 10 831 Terai 132 4 549 Innovative Programme 11 0 60 NDM-World Bank 12 0 83 Total 406 14 1661

Till the end of the reporting year, the POs are involved in facilitation works in total 1661 VDCs (138 in Mountain Districts, 831 in Hilly Districts, 549 in Terai Districts, 60 in Innovative Programme and 83 in NDM‐World Bank Programmes) and Community Organizations of Poor (COs) are working in those VDCs. 2.3 Reaching out to the poor and Social Inclusion

PAF has taken the strategy to support the idea that poor community should be organized themselves to prepare, implement and manage their programme and they should be in the driving seat, with decision making authority.

Participatory social assessment and community well‐ being ranking process identified the poor community members as primary beneficiaries at the settlement level. They are organized into community organization to plan, implement and manage their sub‐projects. Chart 13 : CO member‐Beneficiaries As entry point of PAF program at settlement level, social mapping and participatory social assessment is the primary social mobilization step. The settelmenet level social assessment has revealed that the 57 per cent of the HHs are poor, and thus included as CO members in PAF programme.

2.3.1 CO members

During the reporting year, PAF was able to reach out 72,761 poor HHs and organize them as CO member households to carry out different activities aimed at improving their livelihood. A total of 400,818 CO members households were benefited from PAF assistance till the end of the reporting year,

Table 7: CO member‐Beneficiaries

Programme Areas FY 2066/67 Cumulative Mountain 5237 19,176 Hill 41344 246,327 Terai 24218 122,394 Innovative District 1962 12,921 Total 72,761 400,818

Of the total 4,00,818 CO members till the end of the reporting year, a total of 72,761 CO members were covered during the reporting year alone. The coverage ratio is highest in mountain region.

When comparing the region‐wise break down of the CO members, Hilly region holds the highest share with 61 per cent, followed by Terai and Chart 14 : Region wise CO Member Mountain region with 31 and 5 per cent HHs respectively, while innovative districts have a meager share of 3 per cent.

2.3.2 CO Members by Poverty ranking

Among beneficiaries members in Community Organizations of Poor (COs), 66 per cent members falls under the hardcore poor category (food sufficiency less than 3 months among criteria fixed by community), 26 per cent members falls under medium poor category (food sufficiency more than 3 months but less than 6 months among other criteria set by the community itself), 8 per cent members falls under poor category (food sufficiency more than 6 months Chart 15 : CO Members by Poverty Ranking but less than a year among other criteria set by the community itself) and a very small fraction of percentage members falls under marginal Non‐poor Category.

Similarly in terms of distribution of members by program area, Terai region has the highest

14 number of hard core poor with 71.2 per cent, followed by Hill with 63.7 and Mountain region with 56.2 per cent. In the case of Innovative program districts, 63.1 per cent of the members are hard core poor.

Chart 16 : CO Members by Poverty Ranking by Region 2.3.3 CO members by caste and ethnicity

Out of the total 400,818 CO members households till the end of the reporting year, CO member households constitutes 31 per cent Brahmin/Chhetri, 29 per cent dalit, 27 per cent Janjati, 3 per cent Muslim and 9 per cent from other Ethnicity.

Chart 17 : CO Member by Ethnicity

Caste and ethnicity wise distribution of CO members in terms of region shows that Dalit dominates in the Terai region and Brahmin/Chhettri in both hilly and mountain regions while Janajait are highest in numbers in mountain districts and innovative districts (see diagram).

Chart 18 : CO Member by Ethnicity by Region

2.3.4 CO members by Gender

Female CO members have the lion’s share with 71 per cent. They are highest in Terai with 82 per cent, followed by Hilly region with 70 per cent and mountain region with 67 per cent (See Pie Chart and Diagram).

Chart 20 : CO Member by Gender Chart 19 : CO Member by Gender by Region

2.3.5 CO members by Key position holders

The president, treasurer and secretary are considered as key positions in every individual COs. There are a total of 39819 key position holders within the community organizations registered to PAF. The gender wise break down and ethnicity wise breakdown of key position holder are presented in following tables and charts.

Table 8 : CO members by Key position holders

Gender Ethnicity Region Male Female Dalit Janajati Brahmin Chhetri Muslim Others Mountain 1092 1495 402 1021 122 972 0 73 Hill 10574 13072 7228 5611 1700 8512 8 590 Terai 3057 9539 5687 3483 84 93 861 2388 Innovative District 406 584 110 829 18 24 3 0 Total 15129 24690 13427 10944 1924 9601 872 3051

Of the total 39819 key position holders in PAF supported COs, 62 per cent are female, in accordance with PAF's affirmative approach for the empowerment of the poor women.

Caste and ethnic representations in key positions shows that 34 per cent are Dalits, followed by 27 per cent of Janajatis and 24 per cent of Chhetris.

Chart 21 : Key position holders Chart 22 : Key position holders by by Gender Ethnicity

At the regional level, Dalits dominates in key position holders in Terai and Chhetris dominates in hilly districts. Janajati dominates in mountain region and innovative districts.

Chart 23 : Key position holders by Ethnicity by Region

2.4 Income Generation and Micro enterprise

PAF has been successful in reaching out to nearly 545 thousands poor households supporting different income generation activities and community infrastructure. Out of total investment of Rs 7693 millions, 64.7 per cent is made in income generation activities followed by 28.8 per cent in community infrastructure development, 3.7 per cent to build up community capacity and remaining 2.8 per cent in communty organization management and monitoring activities. As part of the demand driven programme, a wide range of income generation activities have been demanded and supported,based upon the potentials and opportunities available at community level. The potentials include the availability of raw materials, resources, access to market, skill and traditional occupation etc.

Partner organizations provide information to community members and facilitate them to identify potential income generation activities. Nepal being an agricultural country, it is apparent that more than 80 per cent of its population relies on this sector.Income generation activities supported by PAF are related to agriculture and livestock as majority of poor are landless or nearly landless, and yet they make their sustenance through agriculture sector.

2.4.1 IG activities—Sector, HHs and investment

By the end of FY 2066/67, PAF has made agreement with over 14,000 COs to implement 16681 sub‐projects. Out of them, 14133 sub‐projects are related to income generation activities. The ratios of number of IG subproject to the total number of sub‐projects, increased from 55 per cent in FY 2061/62 to 83.64 per cent in FY 2064/6 and it stands on 83 per cent on FY 2066/67.

In terms of investment, the ratio of IG sector continuously increased to 84 per cent of the total investment in FY 2063/64 from 61 per cent in FY 2061/62, Chart 24 : PAF's Investment in COs then started to decrease to 64.7 per cent in FY 2066/67. The trend of PAF investment in income generation activities is presented in the graph. It shows that investment on IG sector has continuously increased until FY 2063/64 and then started to decrease steadily in the following years.

2.4.2 IG activities investment by sector and region

Income generation activities can be grouped into different sector like, agriculture, livestock, service, trading, manufacturing and others. PAF investment by sectors as well as households involved is presented in table and charts below. However, the data does not include the investment related to COs' capacity building and CO's institutional management cost .

Table 9: Sector wise income generation activities by households and PAF investment

FY 2066/67 Cumulative achievements Amt (in % of % of Amt (in % of % of S.N. Sectors HHs Millions) HHs Invest HHs Millions) HHs Invest 1 Agriculture 8502 93.45 9.69 6.37 42830 335.52 10.95 6.21 2 Livestock 59009 1029.41 67.25 70.15 261275 3845.32 66.77 71.18 3 Service 4246 54.54 4.84 3.72 18010 198.33 4.60 3.67 4 Trading 14740 271.12 16.80 18.48 57790 931.77 14.77 17.25 5 Manufacturing 1244 18.85 1.42 1.28 11398 90.96 2.91 1.68 Total 87741 1467.37 100 100 391303 5401.89 100 100

The peoples living in rural areas have a limited access to basic infrastructures like road, electricity, market as well as information, resulting more demand of livestock activities as income generation sub‐projects.

Livestock sector reveals the largest portfolio of IG activities by investment as well as HHs involved. About 71 per cent of PAF support Chart 25 : Investment in IGA by sector is disbursed to this sector and 66.7 per cent of IG beneficiaries' households are engaged, followed by trade related activities 17 per cent, agriculture related 6 per cent service sector 4 per cent, manufacturing and others activities ramaining at 2 per cent.

Out of total households (178,620 HHs) involved in livestock, about 32 per cent is engaged in milk production through buffalo and cow raising, 61 per cent in meat production, five per cent in ox /he buffalo raising for the purpose of farming /breeding and the remaining two per cent for transportation. In terms of investment, out of total investment of Rs 2491 millions in livestock sector, about 50 per cent is in milk Chart 26 : Investment in Livestock Sector production followed by 40 per cent in meat production, six per cent in breeding/farming, three percent in transportation and remaining two per cent in livestocl support activities. The trends of investment in different category in livestock sector is presented in the chart below.

The variation of communities demand across the geographical region, accessible and non accessible areas reveals that the communities are smart in selection of activities based on accessibility, existing natural resources, and potential markets opportunities. PAF investment in different activities under livestock sector across the geographical region is presented in the table below.

Chart 27 : Trends of Investment in Livestock Activities Table 10 : No of households involved and amount of investment in Livestock Sector by Category

2066/2067 Cumulative till 2066/67 Amount in Amount in % of Category Region Millions HHs Millions HHs invest overall Hill 175.24 8708 677.15 37779 17.61% Mountain 22.28 991 81.65 4681 2.12% Milk Production 40% Terai 227.96 11833 766.24 42610 19.93% Total 425.49 21532 1525.04 85070 39.66% Hill 389.00 25177 1553.24 124366 40.39% Mountain 42.95 2149 166.01 10130 4.32% Meat Production 50% Terai 54.89 5039 211.32 23253 5.50% Total 486.84 32365 1930.57 157749 50.21% Hill 15.13 878 52.19 3476 1.36%

Breeding/ Mountain 0.02 1 0.23 7 0.01% 5% Farming Terai 51.14 3037 152.95 9785 3.98% Total 66.30 3916 205.37 13268 5.34% Hill 23.91 784 78.49 3320 2.04% Mountain 10.39 410 42.63 1839 1.11% Transportation 3% Terai 0.05 2 0.41 29 0.01% Total 34.34 1196 121.54 5188 3.16% Hill 11.04 7910 32.41 43484 0.84%

Livestock Support Mountain 0.05 54 1.50 2386 0.04% 2% Activities Terai 5.35 3145 28.81 13807 0.75% Total 16.44 11109 62.72 59677 1.63% Grand Total 1029.41 70118 3845.25 320952 100.00% 1029.41

In Terai region, market of fresh milk is relatively higher and accessible and the products can be easily marketed with little time and efforts for collection and transportation.

Nearly, 56 per cent of total beneficiray households in Terai(with 66 per cent of total investment in livestock sector in region) are rearing buffaloes and cows for milk products, followed by 31 per cent (18 per cent of total amount) for meat production and remaining 13 per cent (13 per cent of the total amount) for farming /breeding purposes.

Similarly in Hilly region, 74 per cent HHs (with 65 per cent of total Chart 28 : Investment in Livestock Activities by amount) have been found engaged Region in meat production by rearing goat, pig, poultry, among others. In the same region, 22 per cent HHs (with 28 per cent of total amount) are pursuing livestock for milk production purpose followed by 4 per cent HHs (with 13 per cent of total amount) for farming/breading and transportation purposes. In the case of Mountain region, 61 per cent of households (with 57 percent of amount) are involved in meat production, followed by 28 per cent HHs (with 15 per cent of total amount) in milk production and remaining 11 per cent for transportation purpose.

In addition to animal husbandry, PAF has provided support in its associated areas such as animal treatment fund, establishment of veterinary services, developing village level health workers to supplement livestock component. In view of the largest investment portfolio in livestock sector, due emphasis has been laid to establish linkages with market and services.

Chart 29 : Investment in Agriculture and Apart from livestock, diverse activities in Forest related activities the agricultural sector have been demanded by the communities. The activities thus demanded includes System of Rice Intensification (SRI), vegetable farming in open field to tunnel house, seed multiplication, cash crop production, and fruit farming. Households involved in different agriculture and forest related activities have been presented in the Chart below.

Out of total 42,830 HHs, 52 per cent households are engaged in vegetable farming, followed by 19 per cent in fruit farming, 18 per cent in agro‐forestry, about 5 per cent in bee keeping and rest in cash crop, fishery etc. PAF investment in different activities and number of involved households are presented in table below.

Table 11 : PAF investment in Agriculture sector by category

FY 2066/67 Cumulative Amount Amount Sub-sector HH % (in M) % HH % (in M) % Agro forestry 2052 24 6.9 7.4 7534 18 26.5 8 Fruit farming 1308 15 10.2 10.9 8363 19 34.1 10 Cereal crops 49 1 0.7 0.8 416 1 1.4 0 Cash crops 329 4 3.8 4.0 1712 4 13.4 4 Vegetable farming 4381 52 52.9 56.6 22134 52 206.4 62 Bee keeping 288 3 4.0 4.2 2230 5 23.9 7 Fishery 95 1.71.8 441 1 6.3 2 Agriculture Support Activities 13.3 14.3 23.4 7 Total 8502 100 93.5 100 42830 100 335.5 100

Vegetable farming has been found very lucrative and effective to increase the income of poor within a short interval of time, where market is easily available for fresh vegetables. Under innovative window program, PAF has also supported vegetable farming in lease land to landless and marginalized people in Chitwan district. The program has helped increase income of the poor, thereby, creating full time employment to them. Chart 30 : HHs involved in Trading In moutain district like Mugu green vegetable was impossible during winter season before PAF intervention. But after PAF arrival, it has been usual to grow commercial vegetables even in winter season with the introduction of pit green house and solar tunnel house. Such vegetable farming technology/ methodology has been successfully demonstrated and the proven and tested case has induced high potential of scaling up in other areas in the days ahead.

Irrespective of better yield but comparatively longer gestation period, the demand of fruit farming is stumpy. Nonetheless, a promotional activity of fruit farming undertaken by the communities has widened the scope for scaling up this intervention in coming days.

Further to the above, trading is the second largest portfolio on IG. Altogether, 57,716 HHs are engaged in trading business, whilst PAF has invested NRs 932 Millions in this sector. Of the total investment, 51 per cent has been invested in hill districts, followed by 45 per cent in Terai districts and 4 per cent in Mountain Districts respectively.

Analysis in trading sector shows that retail business has largest investment in all ecological belts, which accounts more than 65 per cent in Terai, 85 per cent in Mountain districts and

22 more than 87 per cent in Hill districts. Animal bushiness, wood product business, agriculture inputs, food items related business are other major activities in this sector.

Overall, 18010 HHs are engaged in service sector, where PAF has invested about 198 millions. Out of total investment, 190 millions has been invested in income generating social services and rest in social services likes supports for schools and healthposts, schoolorship etc. Tailoring buisiness is one of the largest components of social sector having 29 per cent investment, followed by transportation 26 percent, small hotels/teashops 16 percent, repair and Chart 31 : Investment in Service Sector maintenance 10 percent, and rest in other activities likes livestock supports, agrovet services etc.

In Hilly districts, about 45 per cent of investment has been made in tailoring, followed by small hotels/teashops (14 per cent), repair and maintenance related services (10 per cent), transportation services (5.5 per cent), and and remaining in different activities. Similarly in Mountain districts, 62 per cent of investment has been redirected in hotels/ tea shops related business followed by 20per cent in tailoring, livestock support 7 percent, and rest in other activities. In Terai regions, transportation services has been the major activities in terms of investment with 48 per cent of total investment followed by tailoring 16 percent, , small hotels & teashops (12 per cent), repair and maintenance services (11 per cent), percent and rest in other different activities.

A total of 11,398 HHs are involved in manufacturing related business, and PAF investment is about 91 millions in this sector. Out of total investment, about 53 per cent has been in non‐ agro products related manufacturing activities, followed by 41 per cent in forest products related, agro‐processing related 4.3 percent and rest in fruit processing.

Listing of income generation activities show that there are diversified IG activities undertaken by the community members. Of them, livestock sector alone has been verified major activity as compared to other IG activities. It means, there is still great challenge to provide informed choices to the people, so that they are able to select suitable IG activities based on their need, local resources, knowledge, skills and available market potentials. A lion’s hare of investment in livestock sector demands more concentration to develop mechanism to provide adequate veterinary services at rural areas. It is unambiguous that to sustain the diverse interventions as specified above, PAF should accord higher priority to enhance the qualitative capacity of both partner organizations and community organizations. 2.5 Community Infrastructure

Due to the farthest isolation and the virtually nothingness of public infrastructure services there, small scale of investments in small rural infrastructures and services can make significant divergence to the poor communities. The communities are habitually clear on what they need, and are willing to contribute within their means for investment. Partner

23 organizations (POs) facilitate the process of community organization and to build up capacity of community in the preparation of sub‐project proposals. Examples of sub‐projects implemented to date under PAF include footbridges, culverts, micro hydro power, water supply schemes, community buildings, schools, health facilities and other small‐scale infrastructure, among others.

2.5.1 Number and Type of Schemes

During the fiscal year 2066/67 BS, PAF provided support to 760 different infrastructure related schemes (850 activities) in 40 regular districts.23 sub‐projects(34 activities) are also suppoted in innovative districts. The activities list is much higher than the sub‐projects as there are many activities under the same individual sub‐project. For example, there could be many tube well construction activites under a single tube well related sub‐project agreed with PAF.

Since the beginning of PAF programme to the end of the reporting period, a total of 3,599 infrastructure schemes (12926 activities) are supported in regular districts by PAF. Except this 189 sub‐projects (442 activities) are also supported by PAF in innovative districts in same period.

2.5.2 Distribution of Infra Schemes by Region

A total of 760 infra schemes were supported by PAF in regular districts, of which 682(682 activities) are in Hilly region followed by 61 (151 activities) in the Terai and 17(17 activities) in the Mountain region respectively.

Table 12 : Distribution of Infra Schemes by Region

FY 2066/2067 Hill Mountain Terai Total SN Activities No. of No. of No. of No. of No. of No. of No. of No. of Sub Sub Sub Sub activities activities activities activities Project Project Project Project Building 1 Construction 121 121 4 4 13 13 138 138 Energy 2 Production and Extension 40 40 4 4 0 0 44 44 3 Irrigation 51 51 2 2 5 57 58 110 4 Transportation 18 18 0 0 30 30 48 48 Water Supply and 5 Sanitation 348 348 1 1 12 50 361 399 Improved Stove, 6 Ghatta, Rice Mill, Chilling Centre 103 103 6 6 1 1 110 110 7 Others 1 1 0 0 0 0 1 1 Total 682 682 17 17 61 151 760 850

Chart 32 : Region wise No. of subprojects

Looking at the cumulative figure of infrastructure till the end of the reporting year, a total of 1,779(6,448 activities) are supported in the hilly region followed by 1,667 schemes (6,034 activities) in Terai and 153 (444 activities) in the Mountain region respectively.

2.5.3 Distribution of Schemes by Sector

Regarding distribution of schemes by sector in the fiscal year 2066/067,drinking water supply & sanitation sub‐projects numbering 361 (399 schemes/ activities) stands at the top followed by Building Construction related sub‐projects with 138 number (138 schemes/ activities). Similarly a total of 110 sub‐projects (337 activities) were related to Pani Ghatta,stoves,mill while 110 sub‐projects(183 activities) were related to irrigation.

Till the end of fiscal year 2066/067, further analyzing the infra related schemes, it is clear that number of Water supply & sanitation sub‐projects are 1416(5069 schemes/activities) stands at the top followed by Irrigation (985 sub‐projects—3330 activities) and improve stove, rice mill, chilling center& Ghatta (418 sub‐projects—2850 activities), among others.

Table 13 : Distribution of Schemes by Sector

Cumulative Hill Mountain Terai Total SN Activities No. of No. of No. of No. of No. of No. of No. of No. of Sub Sub Sub Sub activities activities activities activities Project Project Project Project Building 1 Construction 274 274 12 12 38 38 324 324 Energy Production 2 and Extension 112 829 30 30 24 24 166 883 3 Irrigation 183 194 29 29 773 3107 985 3330 4 Transportation 58 58 9 9 181 189 248 256

Water Supply and 5 Sanitation 805 2584 37 59 574 2426 1416 5069 Improved Stove, 6 Ghatta, Rice Mill, Chilling Centre 337 2408 34 303 47 139 418 2850 7 Others 10 101 2 2 30 111 42 214 Total 1779 6448 153 444 1667 6034 3599 12926 Percentage 49.4 49.9 4.3 3.4 46.3 46.7 100 100

For both the reporing period as well as cumulative , a further examination of schemes by region, schemes, beneficiaries and investment shows that per scheme investment and per beneficiaries household investment is high in Hilliy region, whereas in Terai region, investment cost with respect to scheme and beneficiaries household is low. Benefited households per activites is higher for Terai and lower for hilly region .

Likewise,for the fiscal year 2066/67, per HH PAF contribution as well as Community Contribution is higher in mountain and hilly districts and relatively lower in Terai. In cumulative , it is higher in hilly , followed by mountain and Terai region respectively.

In terms of sector‐wise distribution, Water supply & Sanitation schemes stand first in Hilly region and improved stove, rice mill & ghatta in mountain and Transportation in Terai regions. Out of 760 sub‐projects, 90 per cent are from Hilly, 2 per cent from mountain and 8 per cent from terai regions.

In cumulative scenerio, irrigation support is the highest portfolio in Terai region. Water supply & Sanitation schemes stand on the top in hilly and Improved stove, rice mill & ghatta schemes is top in mountain region. Out of 3599 infrastructure sub‐projects, 49.4 percent are from Hilly followed by 46.3 percent in terai and 4.3 percent in the mountain region.

Chart 33 : Distribution of different no. of Chart 34 : Distribution of different no. of subproject in FY 2066/67 subproject in Cumulative

Chart 35 : Per HHs Community Contribution

2.5.4 Sector‐wise Beneficiary HHs by Region

For the reporitng year, Building construction has benefited maximim households, and in cumulative, transportation activities have benefited relatively a larger number of population.

In cumulative scenerio, the maximum number of people get benefited from building construction in the Hilly region, energy production and extension schemes in Mountain and, Transportation schemes in terai region.

Table 14 : Benefited Household

SN Activity Fiscal Year 2066/067 Cumulative Hill Mountain Terai Total Hill Mountain Terai Total 1 Building Construction 10492 269 1833 12594 20530 1069 5718 27317 Energy Production and 2 Extension 4177 532 0 4709 10070 2218 2274 14562 3 Irrigation 1922 331 850 3103 7062 1717 7175 15954 4 Transportation 1856 0 3651 5507 5912 399 28807 35118 Water Supply and 5 Sanitation 5687 115 219 6021 20971 1602 6594 29167 Improved Stove, Ghatta, 6 Rice Mill, Chilling Centre 5 79 0 84 2531 615 506 3652 7 Others 0 0 0 0 459 20 228 707 Total 24139 1326 6553 32018 67535 7640 51302 126477 Percentage 75.4 4.1 20.5 100 53.4 6 40.6 100

2.5.5 PAF Investment by Region

During the fiscal year 2066/67, PAF investment by region shows that the highest investment has been made in Hilly region (425 milions) followed by Terai (64.5 millions) and mountain region (24.4 millions). See Table below.

Table 15 : PAF investment by region

Investment in FY 2066/2067 Cumulative PAF CO Others PAF CO Others Hill 425,009,831 145,888,538 96,759,992 442,815,684 152,020,154 96,899,992 Mountain 24,401,318 10,768,018 24,998,494 36,722,623 14,708,544 25,498,494 Terai 64,594,995 18,268,584 2,706,906 69,577,547 20,070,910 3,905,478

PAF investment by region shows that the highest investment is made in Hilly region (970.6 milion) followed by Terai (207.6 million) and Mountain region (82 million).

Chart 36 : Cost Sharing in INFRA by Region in 2066/67

2.5.6 Cost Sharing by Region

PAF contribution is highest in Hilly with 82.7 percent followed by 12.57 percent in Terai region and.4.75 percent in mountain.

PAF contribution share is highest in Hill with 77 per cent followed by with 16.5 per cent in Terai and 6.5 per cent in mountain region.

Chart 39 : Cost Sharing in INFRA by Region Cumulative

Chart 38 : Investment in INFRA by Region in Chart 37 : Investment in INFRA by Region in 2066/67 Cumulative

2.6 Innovative special windows sub projects

Apart from the regular program (coverage of whole district on the basis of poverty ranking), PAF has been implementing a separate program under the "Innovative Special Window Programme". The objective is to harvest the most innovative ideas around the countries and to expose and engage the development community in productive and inventive partnerships that will try new approaches, technology and Figure 2: Innovative special window sub projects offer high potential impact in poverty reduction. The idea is also to replicate such practices to the regular program districts if found effective and economic. During the fiscal year 2066/67, PAF continued its support for ongoing innovative program. Also PAF is implementing 25 winning innovative proposals under the World Bank's Nepal Development Market Place 2008, in different districts of Nepal. The details of the innovative projects and the learning is mentioned I Annex 1. 2.7 Community Institutional Development

The sustainability of the community organizations is one of key issue before PAF. PAF is working to ensure that these organized institutions are legalized so that would ensure a continued service to the targeted poor in the long run. This is taking place in the form of federation and cooperatives at the local levels. A total of 166 CO federations are formed till the end of the reporting year. Also, 53 cooperated are formed on the aegis of the PAF supported community organizations to carry out different activities aiming at alleviating poverty. See Annex 2 for details. 2.8 Capacity development

Human Resource Development is the framework for helping employees develops their personal and organizational skills, knowledge and abilities. Human Resource Development includes such opportunities as employee training/orientations, employee career development, performance management and development and mentoring/coaching.

The main objective of Human Resource Development is to prepare/enable the most Superior Workforce, so that the organization and individual employees can accomplish their work goals in service to beneficiaries.

PAF has opted different approaches for human resource development that can be formal or informal approaches. Need based trainings/orientations, workshops, exposures, mentoring/coaching by Line managers are the approaches for Human Resource

Development at PAF. An efficient organization believes in human resource development.

The ultimate mission of PAF is the capacity development of Community Organizations (COs) for their empowerment and institutional development. For this PAF has been adopting the following strategies:

• Direct capacity development of the members of COs i.e. Skill enhancement and technical training to operate and manage various economic activities, and institutional development related training) • Capacity development of PAF Partner Organizations (POs). Who solely work being in the frontline of COs. Who support, facilitate and coach COs regularly. • Capacity development of PAF staff. Who support, coordinate and facilitate to POs ,COs, VDCs and DDCs • Capacity development of DDCs and VDCs, who acts as focal organizations for overall development matters of DDCs and VDCs.

2.8.1 Capacity Development of COs and POs

A total of 472 trainings for CO members were carried out during the fiscal to capacity them to manage the PAF assistance and build their confidence in managing the sub‐projects. Also, PAF is working to develop the capacity of the partner organizations that are facilitating the community organizations in its programme districts. A total of 472 PO capacity development initiatives were carried out during the reporting year.

The details of the trainings and the participants of the community organizations is mentioned in Annex 3 while the PO capacity development initiatives are listed in Annex 4.

2.8.2 Capacity Development Activities for PAF Staff

Various short term trainings/orientations and exposures are organized to enhance the capacity of PAF staffs with the objective of enhancing efficiency to carry out respective activities. The following trainings/orientations and exposures were organized to strengthen the capacity of PAF staff during the reporting year.

• Executive Director Mr. Raj Babu Shrestha and Admin. and Finance Division Chief Mr. Manoj Chipalu attended a two ‐days workshop on "Impacting Project Outcome Through Institutional Development and Human Resource Management Practices” from Nov. 3‐ 5, 2009 in Dhaka, Bangladesh • In order to study the District Poverty Initiative Programme (DPIP) supported by Madhaya Pradesh State Government and World Bank a group of eleven PAF Professional Staff namely Mr. Tara Prd. Joshi, Mr. Naveen Prasad, Mr. Durga Bdr. Gandhari, Mr. Kamal Bdr. Thing, Mr. Bhupanand BK, Mr. Nirak Sunar, Mr. Ishwori Lal Bishwakarma, Mr. Hareram Wagle, Mr. Mahesh Shahi, Mr. Amar Pakhrine, Mr. Krishna Bdr. Serala visited Madhaya Pradesh State, India from July 5 ‐ 13, 2010. • Similarly in order to study the Rural Livelihood Development Project supported by Bihar state Government and World Bank, a group of eleven PAF professional staff namely Mr. Kanchan Tamang, Mr. Jharendra Bdr. Singh, Mr. Shankar Yadav, Lokendra Singh Badal, Prabin Ghimire, Deepa Regmi, Ms. Malati Chaudhry, Mr.

Sanjaya Jha, Mr. Avisesh Naupane, Mr. Achyut Man Singh Pradhan, Mr. Mahesh Pokharel visited Bihar State, India from June 30 ‐ July 8, 2010. • A two days PAF‐POs review meeting was organized in Nepalgunj in order to review PAF activities implementation in Karnali and Mid‐Western Region. The POs from Dolpa, Humla, Mugu, Jumla, Kalikot, Rukum, Rolpa, Bhajang, Bajura, Jajarkot and Dailekh participated in the workshop. The meeting was very instrumental to share experience and learning. • In order to identify the risk and opportunity within the working organization, a one‐ day COSO Workshop was organized in March 26, 2010 at PAF Secretariat. The objective of the workshop was to identify risk and opportunity within the organization in order to minimize the risk and capitalize the opportunity. All together sixteen PAF professional staff participated in the workshop. • A two day PAF Programme Planning Workshop was organized in the Nagarkot from Sept. 19‐21 2010. All the PAF professional staff of presented their annual programme plan and budget and actively participated in the workshop. • Twelve PAF professional staff including Executive Director and divisional Chief participated in the Micro‐Finance Summit held from Feb. 14‐16 in Kathmandu. Mr. Raj Babu Shrestha, ED, PAF presented paper in the workshop. The workshop successful to introduce PAF in order to link of PAF COs to MFIs so as to scale up their business.

PAF program in Karnali Districts

PAF is currently working in all districts of Karnali covering 129 VDCs of total 134 VDCs. PAF has extended its support to the community organizatsions to carry out 1700 income generation activities and 252 infrastructure related activities. The total beneficiary CO member household is 50,924, which is 92 per cent of the total households. Of the total CO member beneficiaries, 64 per cent are hardcore poor while 72 per cent are female.

Table 16: PAF Coverage in Karnali District by HHs

Karnali VDC Karnali Households (HH) No. CO CO CO PAF Agreement District Of Total Registration Agreement Total Poor Member Coverage Amount (Rs.) PO VDC Nos Nos HH HH Beneficiary VDC HH Dolpa 3 23 18 165 165 5,816 2,309 4,942 96,214,283.42 Humla 5 27 27 329 329 6,951 2,885 7,860 167,666,577.00 Jumla 7 30 30 465 462 15,856 5,454 16,621 376,064,629.39 Kalikot 6 30 30 554 507 18,490 10,503 14,839 262,142,636.27 Mugu 6 24 24 247 220 8,259 4,212 6,662 122,363,380.00 Total 27 134 129 1760 1683 55,372 25,363 50,924 1,024,451,506.08 100% 96% 100% 92%

Table 17: PAF Coverage in Karnali District by IG & INFRA

Total PAF Infrastructure Agreement Amount IG Agreement Infra Agreement Amount District (Rs.) IG No. Amount (Rs.) No. (Rs.) Dolpa 96,214,283.42 166 86,234,444.00 4 9,979,839.42 Humla 167,666,577.00 331 141,579,394.00 31 26,087,183.00 Jumla 376,064,629.39 470 338,714,553.00 93 37,350,076.39 Kalikot 262,142,636.27 507 239,489,237.20 21 22,653,399.07 Mugu 122,363,380.00 226 65,302,454.00 103 57,060,926.00 Total 1,024,451,506.08 1,700 871,320,082.20 252 153,131,423.88 100% 85% 15%

Poverty in CO Members in Karnali Districts PAF Coverage in Karnali Districts Mar ginal Non Poor Poor 8% 0% 60,000 55,372 50,924 50,000

40,000

Medium Poor 30,000 25,363 28% 20,000

Hardcore Poor 10,000 64%

0 Total HH Poor HH PA F Cov erage HH Chart 40 : Poverty in CO Members in Chart 43 : PAF Coverage in Karnali Districts Karnali Districts

PAF Investment In Karnali Districts Ethinicity Wise CO Key Position Holders In Income Generation Vs. Infrastructure Karnali Districts Infrastructure Dalit 14.9% 24%

Janajati 10% Muslim Brahmin/Chhet 0% ri Others 64% Inc ome 2% Genetation 85.1% Chart 41 : CO key Position Holder by Chart 44 : CO Key Position Holder by Ethnicity in Karnali Districts Gender in Karnali Districts

Gender Wise CO Key Position Holders In Karnali Contribution in Sub Projects In Karnali Districts Districts Others 8.3%

CO Kind Male 6.1% 35%

CO Cash 7.3%

Female 65% PA F 78.2%

Chart 42 : Investment in IG & INFRA in Chart 45 : Contribution in Sub projects in Karnali Districts Karnali Districts

PAF Program in Terai border VDC Of the total VDCs of 82, in 6 PAF programme districts of the terai, PAF is working 33 VDCs. Of the total 58,713 HHs, PAF has reached 14,903 poor households as members.

Table 18: PAF Coverage in Terai Border District by HHs

Terai Border Terai Border VDC VDC Households (HH) CO Total No. PAF CO CO Member Agreement of Total Coverage Redg. Agreement Total Poor Beneficiary PAF Amount District PO VDC VDC No. No. HH HH HH (Rs.) Kapilbastu 6 18 13 155 155 13,826 21,430 4361 86,107,216.12 Mahottari 3 7 3 72 72 7,486 5,390 1510 27,100,193.00 Parsa 6 20 9 20 20 15,136 3,027 616 9,583,440.00 Rautahat 3 6 4 129 127 4,058 5,235 3669 67,492,411.18 Sarlahi 9 16 16 95 95 13,528 12,852 2607 45,960,540.00 Siraha 6 15 8 92 91 11,716 10,779 2140 33,079,992.00 Total 33 82 53 563 560 65,750 58,713 14,903 269,323,792.30 100% 65% 100% 23%

Table 19: PAF Coverage in Terai Border District by IG and INFRA

IG Total PAF Agreement Infrastructure Agreement IG Amount Infra Agreement District Amount (Rs.) No. (Rs.) No. Amount (Rs.) Kapilbastu 86,107,216.12 141 57,358,154.63 69 28,749,061.49 Mahottari 27,100,193.00 72 27,100,193.00 0.00 Parsa 9,583,440.00 20 9,583,440.00 0.00 Rautahat 67,492,411.18 123 65,325,664.00 5 2,166,747.18 Sarlahi 45,960,540.00 95 45,960,540.00 0.00 Siraha 33,079,992.00 91 33,075,192.00 1 4,800.00 Total 269,323,792.30 542 16,780,645.00 75 30,920,608.67 100% 0.06 0.11

Poverty in CO Members In Terai Border VDCs PAF Coverage in Terai VDCs

C D 70,000 65,750 7% 0% 60,000

B 50,000 18% 40,000

30,000 19,474 20,000 14,903

10,000

0 A Total HH Poor HH PA F Coverage HH 75% Chart 46 : Poverty in CO Members in Terai Chart 48 : PAF Coverage in Terai VDCs Border VDCs

Gender Wise CO Members In Terai Border Ethinicity Wise CO Members in Terai Border VDCs VDCs Male Others 18% 26%

Dalit 40%

Mus lim 11%

BrahminChhetri Female 3% 82% Janajati 20% Chart 47 : CO Members by Gender in Chart 49 : CO Members by Ethnicity in Terai Border VDCs Terai Border VDCs

Gender Wise CO Key Position Holders in Terai Border Poverty in CO Key Position Holders In Terai

M VDCs Border VDCs Brahmin 22% 1% Chhetri Others 1% 23%

Dalit Muslim 50% 9%

F 78% Janajati Chart 50 : Key Position Holder by Gender in Chart 52 : Key 16%Position Holder by Ethnicity Terai Border VDCs in Terai Border VDCs

PAF Investment In Terai VDC Contribution in Sub Projects In Terai VDC Income Generation Vs. Infrastructure COCas h PA FIN PO 7.99% COKind 11.48% 0.00% 5.57% DDCV DC 0.16%

Other 0.07%

PA FIN 9.90%

PA FIG PA FIG 88.52% 76.32% Chart 51 : Investment in IG & INFRA in Chart 53 : Contribution in Sub projects in Terai Border VDCs Terai Border VDCs

Chapter III: Information Management, Communication and Coordination

3.1 Management Information System of PAF

The main objectives of MIS in PAF is to identification of information need, maintaining and managing information (classification, storage, retrieval, analysis) and timely information to the management.

3.1.1 The Progress

The major MIS developments in PAF includes:

1. PMIS (Programme Management Information System), 2. HRIS (Human Resource Information System), 3. AMIS (Administration Management Information System) and 4. FMIS (Financial Management Information System).

The databases are on MYSQL Server and can interact and integrated with each other. All these system besides FMIS is designed and developed in‐house.The PMIS is designed and developed specially for Input and Output Monitoring. This system can produce timely information on 1. District profile, 2. Participants of the project, 3. Details on project activities (Income generating as well as Community infrastructure activities), 4. Status of loan/grant, 5. Human resource development. The system is in the process of development of 1. Income/employment activities, 2. Savings and 3. and Institutional Development .

HRIS consists of detailed on employee of PAF. This system can produce timely information on 1. Employee background, 2. Enrollment , 3. Leave, 4. Field visits, 5. Other travels, and 6. Employee exit information. The system shall grow further with incorporation of 1. Employee Handbooks, 2. Attendance, 4. PAF HRD and 5. Payroll.

AMIS consists detailed about PAF administration. This system can produce timely information on 1. Contract Management, and 2. Inventory (both expendable and non expendable).

FMIS consists of detailed about PAF financial management. This system is integrated with PMIS whereas shall grow with integration with HRIS and AMIS.

3.1.2 Upcoming

Further, there will be manual publications on developed MIS. There gradual advancements in the developed MIS are continuous process. PAF will also come up with GIS based monitoring system, Market Information Service and use of ICT in Grievance Handling. 3.2 Communication and outreach

Communications is critical to create demand from beneficiaries ensure transparency and foster partnership and learning across stakeholders.

PAF communication strategy aimed to disseminate PAF approach/procedure/rules to the related stakeholders, develop the external and internal communication capacity of PAF

38 and identify and develop communication messages for PAF, as well as disseminate best practices and success stories

Some of the major activities that were initiated and continued during the reporting year include.

• Weekly Radio Programme from Radio Nepal, Radio Mithila, Kanchanpur, Janakpur and Bhek Awaj, Kalikot, • Fortnightly Radio Programme from Radio Mandavi Pyuthan • Partnership with Far West Media Centre for different set of media activities in the 18 districts of far and mid west • Weekly TV programme from Nepali Television during the prime time • Publication of Newsletter "Jeevika" –both in English and Nepali on a regular basis. • Dynamic websites created, updated regularly • Annual Reports/ Brochures, Fact Sheets, Mini Brochures and Calendar publications • Success stories and cases collections • Different interaction meetings and workshop at the local and national level • Extensive media coverage at the local level and national levels • Orientations programme and stakeholders consultations at the local level • Beginning of publication of "Poverty Outlook"

Since PAF work is now increased in terms of its coverage and depth, there is a growing need to generate greater awareness based on the results. A proactive communication and outreach strategy will be of highly important in this regard. PAF will work with all stakeholders to keep them abreast of the important developments and disseminating the information at national and international forums 3.3 Collaboration, Coordination and Partnership

3.3.1 Collaboration in sub‐project Implementation

• MoU with Rastriya Banijya Bank (RBB), as a PAF development partner, is renewed and made recently similar agreement with Nepal Bank Limited (NBL) that includes 5 districts (Dolpa, Jajarkot, Rasuwa, Rolpa and Rukum) where RBB branch do not exits and provide alternate in other districts for enabling efficient fund flow to the accounts of community organizations of the poor. • MoU is signed between South Asia Foundation, CTEVT, Jiri Technical School and Himalyan Health and Education, Solukhumbu in order to utilize Madanjeet Singh Scholarship for ANM (Auxillary Nurse Midwife) in PAF districts

• MoU is signed with Alternate Energy Promotion Centre (AEPC) on August 10, 2007 for mutual collaboration in PAF and AEPC program area to enable poor access to micro‐hydro and other alternative energy projects • MoU is signed with WINROCK on October 27, 2007 for the implementation of ICT GDA project in Bajhang and Achham districts. • MoU is signed with ROTARY Club and Kavre Health Training Institute for utilizing ROTARY ANM Scholarship and follow‐up support program in PAF districts. • MoU is signed with Winrock International’s (WI) Renewable Energy Project Support Office (REPSO) Nepal on April 21, 2008 to promote Jatropha oil based pump irrigation systems for improving income generation of poor farmers through increased agricultural productivity in Siraha district. • MoU is signed between Department of National Parks and Wildlife Conservation (DNPWC) and PAF on May 2, 2008 in order to collaborate and enable to implement PAF program in protected areas. • MoU is signed with Winrock International’s (WI) for the rural ICT activity in Marku VDC of Achham District through Shanti Secondary School

An understanding was signed by PAF in a meeting at Ministry of Finance with Ministry of Local Development (MLD) to enhance co‐ordination with Local Bodies at district on April 1, 2008. A furher details MoU was signed in Septermber 2010 to stregthen the partnership at the local level.

Further PAF is taking initiative to collaborate with Ministry of Education and Centre for Non‐ Formal Education; Department of Livestock and Department of Agriculture under the Ministry of Agriculture and Co‐operatives. Similarly effort is going on to collaborate with Department of Irrigation; Leasehold Forestry and Livestock Programme‐Department of Forest; Western Upland Poverty Alleviation Program (WUPAP), World Food Program (WFP); and USAID project Education for Income Generation.

A national level co‐ordination workshop was carried out in order to implement the program more effectively in co‐ordination with the government line agencies. A details of the collaboration efforts on in the districts in mentioned in Annex 5 3.4 PAF’s publications – Manuals developed and others

Guidelines and manuals prepared this includes PAF operational guidelines(updated), PAF microfinance guideline, PO evaluation guideline with assessment indicators, CO graduation guidelines with assessment indicators, PAF revolving fund format, Micro‐hydro scheme, and other formats were updated according to the new guidelines.

Chapter IV: Monitoring, Evaluation and Research

4.1 Monitoring

4.1.1 Monitoring at Community Level

Monitoring of CO activities is one of the fundamental aspects of the PAF programme approach. The main responsible stakeholders for monitoring at community level are members of monitoring sub‐committee of each CO and social mobilize. The other stakeholders are members of CO, supervisor/program coordinators and PM. Since the monitoring at community level is regular type, it needs to be strengthening the mechanism.

4.1.2 Monitoring at district level

District level monitoring is the second tier of monitoring mechanism of PAF programme. It includes regular monitoring by PCs of POs within its programme scope. Besides, PCs are also responsible for managing the monitoring visits by PO‐Board members, Local bodies and others in their programme areas. In addition, Portfolio Manager (PM) is also responsible for monitoring the district level activities carried out POs and for periodic monitoring of COs. The PMs have also been using external consultants for monitoring the COs activities at community level periodically.

4.1.3 Monitoring at central level

Monitoring at central level is carried out by the PMs (Other than assigned PM), Officers and Unit heads of the PAF. During the reporting year, CPROG has visited Dadeldhura, Baitadi and Darchula; CMON has visited Kalikot and Pyuthan, CADMIN has visited Sindhuli, COMO made his visit in Makwanpur and Sindhuli, MISO has made her visit to Siraha, RDO has visited Makwanpur, Sindhuli, Dadhing, Dadeldhura, Baitadi, Darchula.

4.1.4 Review

Programmatic reviews at district level, regional level and central level is one of the major components of PAF prgramme. The district level review is done by the POs and PMs in monthly basis and review with different tiers of audience at the district level has been carried out in all the districts. Further, PMs and PCs/PO participated in district council meeting and district development review and planning workshops.

Similarly, programme review workshop with POs from Far western region was held at Nepalgunj during the reporting year. 4.2 Evaluation

4.2.1 Baseline survey for 30 new districts

ToR and the cost estimate for the proposed baseline survey works have been prepared and 'No objection' from WB has been received. The EOI for conducting Baseline survey for 30 districts announced in National Daily newspaper on 30 and 31st May 2010. The selection

41 committee has been formed under the coordination of CMON and selection process of the applications is ongoing.

4.2.2 Follow‐up survey

Follow‐up survey in 9 districts is completed. The survey carried out by the CEDA/TU. The field survey was done during the period of January‐February 2010. The follow up study 2010 in the 6 sample districts and 3 controlled districts shows that the Household (HH) consumption in PAF program area has increased by 28.4% in real term.

Households (HHs) with food sufficiency of less than 3 months and 4 to 6 months has decreased by 10.6% and 6.4% respectively, whereas HHs with food sufficiency 7 to 9 months and 10‐12 months are increased by 5.0% and 11.9%.

Similarly, the child school enrolment among the beneficiaries HHs has increased 2.1%. Percent of children fully immunized increased by 5.3% among the CO members. Similarly, household’s access to toilet facilities has greatly improved from 21 to 31 per cent and the access to safe drinking water increased by 6% among PAF beneficiary households between the two survey periods.

The study also shows that discrimination faced decreased by 5.1%, and HHs faced dispute on common resources decreased by 16.6%.

4.2.3 Mid Term Review (MTR)

A joint World Bank/IFAD/Government of Nepal team carried out the mid‐term review during the period of May 13‐28, 2010. The objective of the Mission was to review project progress towards meeting its development objectives, review the Issues Paper and provide clear guidance to the project team on changes that may need to be made as part of mid‐course correction or as a result of changed circumstances.

4.2.4 Implementation Completion Mission

The implementation completion mission of the PAF I project (of grant 40M USD) was carried out by the team from WB during 2008. The report on Implementation completion and results was received on September, 2009. The outcomes of the project as well as performance of PAF found to be satisfactory. 4.3 Research

4.3.1 Poverty Pocket identification

The study is in progress. The assignment is given to MULTI Disciplinary Consultants Pvt. Ltd. on May 2010. The objectives of the study are to:

• Collect secondary source data and information related to identified indicators for poverty assessment in the suitable format; • Review the criteria and process for VDC ranking adopted in previous studies, and • Analyze the VDC level data using composite index and prepare a list of poorest VDCs for program implementation.

4.3.2 Re‐social assessment and revolving fund status assessment.

The re-social assessment of the sample 289 COs which are three or more than three years of maturity period was carried out during the end of 2009. The comparative analysis of the re- social assessment data with the baseline social assessment shows that HH level assets increased, School enrollment of the children increased, improvement in food sufficiency duration of individual HH, and Construction and use of toilet/latrine increased. Similarly, the household level gross income (from all the sources) of the re-assessed 8,168 HHs has increased by 82.5 per cent in real term. Similarly, the assessment of CO revolving fund status was also carried out during the reporting year. The data was collected till November 15, 2009. The revolving fund assessment carried out during the end of FY 2066/67, shows that community has been managing their revolving fund satisfactorily. The data collected as of July 16, 2010, shows that fund provided to the COs by PAF has been increased by 7.8 per cent which includes the interest charges against the loan taken by its members, community contribution and fund collected from other sources. Similarly, among the total CO members, 84.6 per cent of the members have accessed the fund at least for one time to initiate their income generation activities. Out of the total members accessing the fund from RF, 8.72 per cent members have used the fund for more than two times, 19.77 per cent members have used two times and 71.51 per cent members have used one time. The assessment also shows 83.8 per cent of the total fund has been invested as loan to its members, 14.1 per cent of the fund is in bank and rest amount is as cash in hand in COs itself. Further, assessment shows that the average rate of repayment of the loan disbursed is 76 per cent

4.3.3 Internships

Ms. Hannah Waitzinger, an intern from South Asia Institute, Heidelberg University, conducted her research study on 'Risks and Challenges of Poverty Alleviation Programmes use a Targeted Method' during October 2009‐ May 2010. The copy of her report has been submitted to PAF.

Similarly, Mr Zachery Sherman has conducted a desk research on PAF special window program‐NDM during June ‐July 2010. The report has been submitted to PAF.

However, during the year 2009/2010, there were five interns, but remaining interns could not complete their internships due to various reasons.

4.3.4 Program reflection study in Bajura

During the reporting year, a participatory reflection study of PAF program in Bajura district was carried out adopting the Rapid Success Appraisal method. The study covers 369 HHs of 40 community organizations (COs) out of 260 COs implementing their sub projects under the facilitation of 4 Partner Organizations (POs) in the district.

4.4 Others

4.4.1 Monitoring visits by PAF board Members

PAF VC Mr. Vidyadhar Mallik and board member Mr. Shree Krishna Upadhyaya have made their visits in Pyuthan and Makawanpur respectively during the reporting year.

4.4.2 Missions and Monitoring visits by WB

During the reporting year, two mission visits were made by WB. The first mission was in August‐September, 2009 on which mission reviewed the progress of PAF II and revised the results matrix. The second mission was in March, 2010, during which mission, together with PAF management, an issue paper for upcoming MTR was prepared.

Besides, WB representatives including Country Director made their visit to Ramechhap and Dolpa during the year. The other staff from WB: Mr. Kiran Gautam, Mr, Surendra Joshi, Ms. MIrella Hernani, and other members of different missions made during the year, have visited different districts namely, Dhadhing, Makawanpur, Sindhuli, Kanchapur, Baitadi, Darchula, Rautahat, Kapilvastu and Siraha.

4.4.3 Monitoring visits by GoN

During the reporting year, Prime Minister and other government officials have also made their visits in different districts. The Prime Minister Mr. Madhav Kumar Nepal has visited Rautahat districts to observe the PAF activities in the district. Likewise, officials from NPC, PMO, MoF, CIAA have visited different districts during the reporting year.

Chapter V: Financial Management

5.1 Financial planning and management

PAF Financial Management System consists of three pillars namely‐ Financial Planning, Financial Management and Financial Reporting. Financial management is directed by Applicable Accounting Standards which is accepted both by Government of Nepal and World Bank. It also fulfills the requirements of partner organizations. Financial Management System of PAF is governed by Financial Management Manual.

PAF accounting system is based on Cash basis. It maintains all books of accounts relating to receipts and expenditures. PAF maintains its books of account on computerized accounting software‐Fin App.

For effective implementation of PAF activities and monitoring of documents, regular auditing is done by internal and external auditors. M/S Sunder & Company is assigned as internal auditor for the FY 2063/64, FY 2064/65 and FY 2065/66 and M/S P.P. Pradhan & Company is assigned as internal auditor for the FY 2066/67. Similarly, external audit is carried out by office of Auditor General.

For effective planning and monitoring of funds, PAF has signed separate MoU with Rastriya Banijya Bank (RBB) and Nepal Bank Limited (NBL). PAF has opened Main account and along with main account, separate bank accounts are opened for PAF operating expenses and for Program expenses. Also, RBB and NBL have opened Operating bank account for each community organization in their concern districts.

PAF is working with 14,827 community organizations. Operation of two accounts (NOA and OA) of community organization by PAF Secretariat cause some delay in fund flow to COs and POs. After repeated discussion and a field visit with World Bank professional, the non operating account prevailing in the existing fund flow modality of PAF has been dropped effective from Shrawan 01, 2066. However, effects of non operating account will have to be taken care of till ongoing balance becomes zero or returned to PAF. By doing this RBB, from now will transfer the fund directly to the community organization on PAF request.

The funds flow modality of PAF with community organization is as follows:

PAF PAF Level Main A/C

PAF PAF (Centre) Program A/C Operating A/C

CO Community Partner Organization (PO) Level Contribution provide Technical Assistance to Community Organization (District) Community (CO) Operating A/C

Figure 3 : PAF Funds Flow Modality

PAF prepares Implementation Progress Report (IPR) on a trimester basis for the purpose of review by internal management and reporting to the World Bank., The report is comprised of different sections including brief description of project progress. The IPR is the comprehensive report that includes various reporting formats, which cover financial, physical progress, contract expenditure and procurement information. The report 2A discloses the information on sources and uses of funds. Likewise, 2B provides information on uses of funds by project activity and 2C is the section that gives information on IDA eligible expenditure and the disbursement status. Section 2D is for reconciliation statement of special account and the projection for the forthcoming trimester.

Review of physical progress section provides all information on the achievement against planned with regards to major physical indicators set by PAF. Contract expenditure report has two parts‐ goods and consultants. Furthermore, goods and consultancy are categorized on the basis of prior or post review threshold. Similarly, procurement section has two parts ‐ goods and consultancy. Furthermore, procurement of consultant has been categorized as individual consultant and firm consultant. Whether procurement is prior or post review depends upon the threshold for procurement of goods and consultants. 5.2 Budget Vs Expenditure

The total expenditure in FY 060/61 (2003‐04), FY 2061/62 (2004‐05), FY 2062/63 (2005‐06), FY 2063/64 (2006‐07), FY 2064/65 (2007‐08), FY 2065/66 (2008‐09) and FY 2066/67 (2009‐ 10) were NRs.5.78m, NRs. 247.32m, NRs. 493.50M, NRs 1,210.30m, NRs. 1,875.48m, 1,647.20m and 2,481.5m respectively.

Total expenditure of PAF till FY 2064/65 has remained at Rs. 7,960.65m.

Ratio of Cummulative Expenditure uoto FY 2066/67(2009/10) Operating Monitoring Cost Training 3.15% Capital c ost Workshop 0.72% 2.23%

Community Inf ra & Innovative 93.90% (CO 78% & PO 16%) Chart 54 : Ratio of Cumulative Expenditure

Out of the total PAF expenditure of NRs. 7,960.65mM till FY 2066/67 (2009‐10), 93.90 per cent was in Program Implementation through CO & PO(CO‐78 per cent & PO‐16 per cent), 2.23 per centin Monitoring, Training, Studies and Other Program Support, 0.72 per cent in capital investment for PAF and 3.15 per cent in PAF operation/ recurrent cost.

Currently the PAF Project is funded by IDA Grant with US$ 40.0m for four years till January 2009. This constitutes initial US$ 15m and additional US$ 25m IDA.

IDA grant for PAF Project II of US$ 100.0 M has been made effective on January 31, 2008. Likewise, IFAD grant for PAF II of US$ 4m has been made effective from July 16, 2008. 5.3 Financial progress Status

In FY‐2009/10 (2066/67), total PAF expenditure has remained at Rs. 2,481,049,874.47 (91.09 per cent of the allocated budget) as compared to FY ‐2008/09 (2065/66), where total expenditure has remained at Rs 1,647,207,174.93, which was 58.64 per cent of the allocated budget.

Out of total expenditure in FY 2009/10, 93.77 per cent was made in program implementation through COs and POs, 2.05 per cent in monitoring, training, studies and other support, 0.47 per cent in capital investment for PAF and 3.71 per cent in PAF operation/ recurrent cost. Out of the total expenditure of FY 2066/67(2009/10), 96.46 per cent was from IDA (International Development Agency‐ the World Bank) grant, 2.80 per cent from IFAD (International Fund for Agriculture Development) grant and the remaining 0.74 per cent from GoN (Government of Nepal) source.

Expenditure Trend is as follows:

Table 20 : Expenditure Trend

Activities FY 2009/10(2066/67) in Rs. % FY 2008/09(2065/66) in Rs. % Program Cost 2,326,425,270.56 93.77 1,529,263,201.28 92.84 Operating Cost 92,030,042.01 3.71 55,099,526.29 3.35 Capital cost 11,703,173.40 0.47 16,124,411.97 0.98 Training workshop 50,891,388.50 2.05 46,720,035.39 2.84 Total 2,481,049,874.47 100 1,647,207,174.93 100

Financial Status for FY 2066/67 Financial Status for FY 2065/66

2.05% 1% 3% 3.71% 3% 0.47%

93.77% 93%

Program Cost Operating Cost Capital cost Training w orkshop Program Cost Capital cost Training Workshop Operating Cost Chart 55 : Financial Status for 2066/67 Chart 56 : Financial Status for 2065/66

In FY 2009/10 (065/066), the annual budget was estimated to be Rs. 2,723,717,000.00. Out of which 3.71 per cent was provisioned under recurrent cost and the rest 96.29 per cent was under program and capital cost.

5.3.1 Disbursement to Community Organizations

Fund Disbursement has to be made against contracts (sub‐project agreements) with Community Organization (CO) in two or more trenches while it needs to maintain controlling mechanism based on agreed upon milestones.

At the request of PAF, RBB and NBL, open two accounts in the name of each CO. Non‐ operating Account will be under PAF control and Operating Account under CO's control. For the sake of PAF accounting purpose, once the fund from the Program Account of PAF is transferred to the Non‐operating Account of the COs, it is treated as expenditure of PAF.

Table 21: Disbursement Expenditure to COs (in Million)

Cummulative Disbursement Disbursement for FY 2066/67 only Main to NOA Main to NOA to Direct (Deducting Refund NOA to OA Direct OA District NOA OA OA amount) Amount Amount Amount Amount Amount (NRs.) (NRs.) (NRs.) Amount (NRs.) (NRs.) (NRs.) Mountain 1,185 1,171 493 (7) 115 493 Hill 1,816 1,787 732 (4) 135 732 Terai 1,216 1,199 563 (3) 122 563 New Districts - - 23 - - 23 Innovative 1,416 141 40 (2) 14 40 Total 5,634 4,298 1,851 (16) 385 1,851

Based on the community demand, several activities related to income generation and small infrastructure sub‐projects are being implemented. In the FY 2009/10 (2066/67) PAF has disbursed NRs 1,850.60m directly to community operating account and NRs. 385.40m from the Non‐operating Account to Operating Accounts of COs. Attempt is being made to minimize the gap between the Non‐operating Account and Operating Account for smooth and efficient financial management of PAF. This happens due to previous years balance pending in NOA is transferred to OA in this financial year.

Likewise, in terms of cumulative disbursement in NOA and OA of COs, a total amount of 4,359.52m has been disbursed in NOA. Out of total disbursement to NOA, 4,297.50m i.e. 98.57 percent has been transferred to OA from NOA of COs. Similarly, the cumulative disbursement directly to COs are1,850.60m The region wise distribution of disbursement shows that the hilly region has the highest share followed by Terai and Mountain regions.

5.3.2 Disbursement to Partner Organizations

During the reporting year, altogether 372 Partner Organizations (POs) have been working with PAF to facilitate and provide the necessary technical supports to the COs in the PAF districts for which PAF has disbursed NRs. 475.83m. On the basis of the expenditure on PO, the hilly region has the highest share with 34.92 per cent and then Mountain and Terai regions with 24.26 per cent and 21.71 per cent respectively. For 15 additional districts 16.77 percent is disbursed. The innovative program districts stands with the share of 1.59 per cent of the total expenditure. Similarly The NDM program stands for 0.75 percent of the total disbursement to POs.

Table 22 : Disbursement Expenditure to POs

Disbursed During Disbursed Upto FY- S.N. Districts % % FY-2066/67 2066/67 A Mountain 115,441,182.69 24.26 329,062,323.18 26.38 B Hill 166,158,506.27 34.92 438,150,234.71 35.12 C Terai 103,282,836.67 21.71 315,710,641.29 25.31 D New 15 Districts 79,793,236.03 16.77 84,743,796.57 6.79 E Innovative 7,565,647.58 1.59 33,797,585.58 2.71 F NDM 3,584,777.95 0.75 46,125,292.95 3.70 Total 475,826,187.19 100 1,247,589,874.28 100

Similarly, by the end of the Fiscal Year 2066/67, the total fund Disbursement to POs has remained at Rs. 1,247.59m. Similar to the reporting year, the share of POs from Hilly region has the highest with 35.12 per cent. The Mountain region has the second highest share of expenditure with 26.38 per cent and then Terai region with 25.31 per cent. The new 15 districts have share of 6.79 per cent with 2.71 percent of innovative districts. The NDM programs have the share of 3.70 per cent of the total disbursement to POs.

Chapter VI: Lesson Learned, Issues and Challenges

With the program going on for the last six years, PAF has learned many lessons and met numerous challenges in relation to realizing the objective of poverty alleviation. Working with diverse landscape, people, it has been a learning experience for PAF to cater the need and aspiration of the poor. As in the last fiscal year, PAF has continued to receive huge demands of the communities to carry out Income Generating and Infrastructure projects. There is a need now for more balance approach regarding the use of resource and demand. Following lessons learned are listed below.

9 More Focus on pro‐poor targeting to identify our target community must be made. 9 Resources have reached to the lower tier of the population in terms of wealth and poverty as envisaged by the program. 9 Due to the direct funding to the community transparency has been maintained 9 Since most of our community members especially those on the decision making positions are mostly illiterate and the relevancy to provide them or link them with the literacy education is still pertinent as before. 9 The need to balance the investment between the infrastructure projects and Income generation project needs to be emphasized.

With the lessons come the challenges as mentioned above. With the change in scenario and new context PAF has many challenges for foreseeable future.

9 There is an urgent need of the diversification of demands of the community as per the natural resources, availability of the market and sustainability. 9 There is a great challenge as how to manage and cater the second generation projects. 9 Adopt Different Strategy for poorest districts and districts with greater access and livelihood opportunities and special support to vulnerable, poor, backward ethnic groups such as Mushahar, Dom, Chamar, Raute etc. 9 There is challenge to institutionalize and legalize the already formed COs federation and Cooperatives. In fact the best suitable model for the sustainability of COs needs to be work out. 9 With the time frame and investment facilitation provided by POs needs to be rethought as well as sustainability of Cos. 9 Linkage with the market for sustainable income generation activities especially in pilot districts is now urgent. So is the case with insurance safety net, appropriate technology and alignment with the private institutions with these specializations. 9 PAF has done several MoU with many government and Non‐Governmental organizations and the process is on‐going and now the challenge is to materialize it in implementation to benefit the poor. 9 With growing program activities the existing organizational structures needs to be re‐ assessed. 9 Building Community Capacity to Manage Revolving Fund and Maintain the Sub‐Projects Improved Social Mobilization of Community Groups with Integration of literacy and education, Linkages with basic health, education and youth training

Chapter VII: Recommendation and way forward

PAF will work on the expansion of its program in new VDCs and districts. However, different strategy will be taken for poorest districts and districts with greater access and livelihood opportunities. While expanding in districts with greater access and livelihood opportunities, emphasis will be given to the most deprived community.

Based on lessons learned and considering the immense demand for both Income Generating and Infrastructure sub projects effort will be given for more prudent use of available resources by giving due attention in selection of target communities and the sub‐project activities. PAF's participatory project formulation and implementation management process will be reviewed so that priorities of ultra poor/ marginalized be addressed. To reduce duplication of efforts and redundancies, inclusion of PAF activities in integrated district plan and co‐financing from DDC/VDC and other agencies will be highly prioritized.

Community people are engaged in diversified IG activities including agriculture, livestock, manufacturing, service sector and trading. These activities need to be modernized by methods such as using improved animal breeds/seeds, animal health facilities and husbandry methods coupled with proper marketing planning of the produced goods. Effort will be given to synchronize these activities with community infrastructures such as irrigation, road, drinking water and marketing management.

PAF's current initiative to build the Community's Capacity to Manage Revolving Fund and Operate the Sub‐Projects and raise the awareness of the community through functional literacy will be further intensified. Social mobilization will be given high priority for this. Considerable input will be given to establish COs linkages with basic health, education and youth training.

Provisions for innovation and special program will be renewed and emphasis will be given to replicate and scale up the successful innovations. PAF will continue its effort to explore an alternative to livestock and agriculture based activities for landless poor.

As PAF is maturing, technical assistance for activities under high demand needs to be provided regularly and attention should be paid to the quality of service providers. This is an important factor in ensuring that efforts made by communities are sustained and serve to bring them permanently out of poverty. A new system of PO performance evaluation with involvement of COs has been started this year, this process will be further improved in coming days.

Efforts will be given to increase collaboration with private sector, governmental agencies, local governments and donor agencies at all level to implement the program and sub‐ projects in the communities to bring marked impact in considerably less time by complementing and supplementing each other's effort. Several Memorandum of Understanding (MoU) has already been signed with different organizations to facilitate collaboration. PAF's effort will be to materialize it in implementation to benefit the poor while exploring further collaborative efforts in the future.

Increased governmental and civil society ownership in the program will be achieved by regularizing productive workshops, reviews, coordination meetings with relevant

51 stakeholders in both central, regional and district levels. In addition monitoring and supervision visits by central level and district governmental agencies, DDCs, VDCs, civil societies, political representatives and journalists in PAF project sites in the district will be organized regularly.

Community institutionalization is taking place with the formation of CO Federations, multi‐ purpose or single function cooperatives and VDC wise informal networks of COs as per communities' felt need. PAF will give effort in formalizing (and legalizing) these institution development process while ensuring that poor community will gain maximum benefits from these institutions. For sustaining income‐generating activities initiated by communities, important initiatives will be taken to establish the linkage with financial institutions, market as well and the availability of Insurance Safety‐Net.

PAF is working with its exit strategy focusing on its strategic thrust to enable community to go to sustained path to get out of poverty within a stipulated 5‐6 years of time. In this line, PAF will work on pocket area development approach by building on the potential strength of the area. Moving ahead, PAF will pay increased attention to research and development, monitoring processes and outcomes, improving financial management and capacity building of CO, PO, Local Bodies and PAF.

Annex 1: Replication of Innovative Program

Table A 1: List of Innovative Programs Supported by PAF

S.N Name of the Address Innovative Concept, Lesson Learned Replication Organization Process/Technology 1. Multi Purpose Sisbani Breed Improvement of Goat and Goat and pig of the The breed improvement activities has been an Development Badahara pig seed improvement in Vegetable improved breed brings integral part of livestock sub-projects supported Management, VDC production quick improvement in by PAF specially in goat raising activity. Services, Nepal, the livelihood. Morang 2 Manohari 11 VDCs on Integrating the livelihood Optimal use of scarce POs staff and communities of PAF regular Development Northwestern improvement of Triabal poor water resources in hilly districts have been exposed to project theme Insititute, Nepal, part of (Chepang and Tamang) areas( for drinking related activities in Makawanpur district. The Makawanpur Makawanpur water, micro-irrigation, multi-use water system has been replicated in District fishery), waste and various PAF supported hilly districts too. slopy land management is an option to bring tribal poor out of poerty. 3 Eco-System Dadajheri, Construction of wire bridge for Wire bridge is a cost Two more wire bridge have been demanded by (Jaidevi Ghat VDCs Ward river crossing effective options for the community in Sinduli district and also on stage Community no. 1 river crossing where of completin from the PAF support. Organization), Nawalparsi limited numbers Nawalparasi peoples have to cross the river. 4 Focus Nepal, Six VDCs of Social Mobilization for the Local The program has been The project has been expanded to cover all the Dhading Dhading Resources Management and successful for the settlement of Chepang communities in Dhading district Enterprise Development for istitutional development District Deprived Groups ‘Chepangs of and livelihood Dhading District” improvement of marginalized and excluded tribal community.

S.N Name of the Address Innovative Concept, Lesson Learned Replication Organization Process/Technology 5 Made Nepal Selected Vegetable Farming in Lease land for Vegetable Farming on POs staff and communities of PAF regular settlement of improvement of livelihoods of lease land is one of the districts have been exposed to activities carried out Khairani, landless people options to create self by the landless community in Chitwan district. Kathar, employment and This has helped to build up confidence of the Pathihani, improved livelihoods of marginalized landholding or land landless people Jagatpur, landless people living of others district to do vegetable farming on their Shivannagar on accessible areas. marginal land or taking land in lease. and Bagauda The program has been replicated within the VDCs of district and various other PAF regular districts. Chitwan district 6 NNSWA, 7 VDCs and 1 Livelihood Improvement program The program has been The initially PAF had supported 25 COs in Kanchanpur Muncipality of for freed Kamaya successful for the Kanchanpur district, and program have been Kanchanpur istitutional development expanded to another 95 Cos in same district. and livelihood improvement of free bonded labour. 7 Mechanized Bridge Over Seti river River crossing Mechanized bridge is Mechnized wire bridge has been demanded by the Construction for in Dulegauda one of the cost effective communities at Sindhuli district and is under river crossing VDC, Kotre options to cross wide construction over Kamala river from PAF (NDM 2005) Bazzar river. support. 8 System of Rice District Agriculture Development Application of System The extension of technology has been done in Intensification Office Morang of Rice Intensification Siraha, Mugu, and Bajura district and rice yield has Technology (SRI ) Technology been increased. (NDM 2005) helped to increase rice yield.

Annex 2: List of CO Federations and Cooperatives in the districts

Table A 2: List of CO Federations formed through CO’s initiatives in Districts

S.N. District No of CO Specific Objectives/Activities Federation 1 Accham 18 Five federations have been formed for Pasu Bima Programme, 2 for ICT (Information and communication technologies) at Bayalpata, 2 for construction of micro hydro sub projects, 5 for school buildings and 4 for solar school systems at various VDCs. 2 Bajhang 1 Seven COs from Hemantawada and Luyata VDC have been federated to run a Seti Saipal V-SAT Center at Chainpur to promote capacity building, entrepreneurs' skill and knowledge at local level. 3 Bajura 13 13 federations have been formed for following activities in Bajura • 9 federations for School building construction • 2 federations for water supply project • 2 federations for Micro Hydro project 4 Dadeldhura 16 16 Federations have been made for the following activities; • 9 federations for School building construction in 7 VDCs i.e. Jogbudha, Shirsha, Shirsha, Bhadrapur, Alital, Bhageshwor, Koteli and Manileka. • 5 Federations for Drinking Water Supply Scheme in 5 VDCs i.e. Ghankhet, Bhadrapur, Mastamandu and Nvadurga. • 2 Federations for suspended bridge projects in 2 VDCs i.e. Ajaimeru and Navadurga. 5 Darchula 14 11 CO federations have been formed to implement micro hydro sub project and three CO federations to implement electric line extension schemes at various VDCs. 6 Doti 10 10 Federations have been made for the following activities; • 4 federations for School building construction in 4 VDCs named Pokhari, Ganjari, Gairagaun, Basudevi. • 3 Federations for Drinking Water Supply Scheme in 3 VDCs named Bhumirajmandau, Daud and Toleni. • 2 Federations for micro hydro projects in 2 VDCs named Daud and Toleni. • 1 Federation for constructing a health post building in Ranagaun VDC. • Formed 29 COs networking in 29 VDCs for practicing their higher level organization. • Established a cooperative in Toleni VDC for running & maintaining a micro-hydro projects involving 3 COs. 7 Kalikot 2 Two CO federations have been formed to implement a micro hydro sub project at Phoi mahadev VDC and a pico hydro sub project at Chilkhaya VDC for rural electrification. 8 Kapilvastu 1 357 buffalo raising farmers of 5 VDCs namely Ganeshpur, Biddhyanagar, Bhagamanpur, Sirshihawa and Ramnagar have been federated and formed Shivam Dugdha Utpadak CO for collecting milk and operating chilling centre and cattle insurance scheme for members. 9 Mugu 3 Two federated COs have been formed for constructing and operating micro hydro scheme for rural electrification and one for micro irrigation. 10 Pyuthan 44 41 CO federations has been formed for implementation of different infrastructure sub projects like link road, drinking water, irrigation, micro hydro, school building in various VDCs. Two CO federations have been formed to operate community livestock Insurance program in Tusara and Bangesal VDC. One CO federation has been formed for the establishment of Vegetable Collection Centre at Lung VDC.

III

S.N. District No of CO Specific Objectives/Activities Federation 11 Rautahat 9 9 CO federations have been formed in 9 VDCs for livestock management and insurance policy 12 Sindhuli 12 To implement infrastructure schemes like rural road, irrigation, drinking water, mechanized bridge etc. 13 Siraha 9 One federated CO for operating a chilling centre at Bishnupurkalti VDC and another one to run breeding centre at Dhodhana and Bhadaiya VDC Five CO federations have been formed to construct culverts in various VDCs Two CO federations have been formed in Mukshar VDC to construct to construct Agriculture roads 14 Rukum 5 4 Water Users group and 1 school users group 15 Dailekh 9 One federation for Drinking Water Supply Project and 8 Federation for School Building Project.

Table A 3: List of Cooperatives formed through CO’s initiatives in Districts

S.N. District No of Specific Objectives/Activities Cooperatives 1 Accham 35 To manage all COs within the VDC. 2 Darchula 9 Six cooperatives have been established in 6 VDCs to provide saving and credit services to CO members Three cooperatives established to provide electricity extension and distribution service by leasing agreement with NEA. 3 Kapilvastu 1 A multipurpose cooperative has been established to run agro vet service and milk collection & marketing center 4 Mugu 1 Rara Bahuudesiya cooperative has been established with the joint efforts of 11 COs of three VDCs namely Pina, Karkiwada and Shreenagar to provide agro-vet services to its members, to establish hatchery and make available chicks in district for its members To run dairy at district headquarter collecting milk from its members. 5 Pyuthan 2 Two cooperatives have been established at Arkha and Rajbara VDC to manage revolving fund & saving credit fund, provide micro finance services to its members and for institutional development and sustainability of CO efforts. 6 Rautahat 2 A cooperative has been formed in Bishanpurwar Manpur VDC to establish and operate milk chilling center for marketing milk products produced by the members. A cooperative has been established at Santapur Dostiya VDC to provide saving and credit service for agricultural and livestock management 7 Siraha 1 Three COs in Muskar VDC are in process to register Cooperative to run saving credit and provide technical services to its member 8 Chitwan 1 Eight different COs in Khaireni VDC have teamed up to form a muti- purpose cooperative. 90 per cent of the cooperatives members are women. They are carrying cooperative farming in lease-land, marketing of vegetable products and saving credits, among others. 9 Makwanpur 1 One Cooperative ( Basamadi Agriculture Chepang Cooperative Org.) has been formed with collaborative efforts of 3 Community Organizations at Basamadi VDC.

Annex 3: Capacity Development Status of Community Organizations

Table A 4: List of HRD Activities conducted in CO

Organized Gender & Ethnicity Wise No. of Participants Remarks No. of No. of COs by (PAF, S.N. HRD Activities Event Participated POs and Male Female Dalit Janajatis Muslim Others Total Others) Dadeldhura, Sindhuli, Ramechhap, Khotang, Udayapur, Doti, Sindhupalchwok, Pyuthan, Training on Taplejung, Bhajang, Sarlahi, Social Okhaldhunga, Dailekh, Kapilbastu, 1. Mobilization, 765 7700 PO 8059 12048 5579 5894 338 8296 20107 Rolpa, Terthathum, Accham, Leadership & Siraha, Jajarkot, Rukum, Kalikot, CO Mgmt. Rasuwa, Mahottari, Bajura, Rautahat, , Baitadi, Bara, Saptari, Darchula, Mugu, Jumla, Bardiya Integrated Training on Account, Siraha, Dadeldhura, Dailekh, Saving-Credit, Rukum, Rasuwa, Mahottari, 2. Revolving 274 852 PO 4968 8136 2784 2414 31 7875 13104 Bajura, Rautahat, Fund & Baitadi, Darchula, Humla, Mugu Leadership & CO Mgmt. to Old COs Refresher Training on Social 3. 30 588 PO 465 678 348 391 81 323 1143 Kapilbastu, Mahottari Mobilization, Leadership & CO Mgmt.

Organized Gender & Ethnicity Wise No. of Participants Remarks No. of No. of COs by (PAF, S.N. HRD Activities Event Participated POs and Male Female Dalit Janajatis Muslim Others Total Others) Sindhuli, Dadeldhura, Ramechhap, Udayapur, Jumla, Doti, Sindhupalchwok, Pyuthan, Training on Sarlahi, Kapilbastu, Rolpa, 4. 432 4446 PO 4456 7821 3289 4957 158 3873 12277 Account Mgmt. Terthathum, Accham, Siraha, Jajarkot, Dailekh, Kalikot, Rasuwa, Bajura, Rautahat, Mahottari, Dolpa, Humla, Mugu, Bardiya Refresher Pyuthan, Sarlahi, Kapilbastu, 5. Training on 239 1533 PO 1240 4347 1673 1667 24 2223 5587 Bajura, Jumla Account mgmt. Training on Dadeldhura, Sindhuli, Jumla, Doti, Saving-Credit Kapilbastu, Kalikot, Baitadi, 6. mgmt & 260 2220 PO 1908 4303 1740 1115 93 3263 6211 Mahottari, Darchula, Humla, Revolving Siraha, Bardiya Fund Mgmt. Training on 7. Business Loan 4 162 7 155 24 29 0 109 162 Mahottari Mgmt. Training on Dadeldhura, Ramechhap, Cooperative Pyuthan, Rukum, Doti, Kapilbastu, 8. Education & 201 2855 PO 2713 3414 1614 1202 67 3244 6127 Siraha, Kalikot, Mahottari Institutional Dolpa, Darchula, Jumla Development Sindhuli, Dadeldhura, Training on Ramechhap, Rukum, Doti, Animal Dailekh, Kapilbastu, Pyuthan, Husbandry 9. 943 2285 CO 4316 22920 7329 10575 113 9219 27236 Bhajang, Siraha, Jajarkot, Rukum, (buffalo, cow, Dailekh, Kalikot, Rasuwa, goat, pig, yak, Mahottari, Bajura, Rautahat, sheep) Darchula, Mugu, Rolpa

Organized Gender & Ethnicity Wise No. of Participants Remarks No. of No. of COs by (PAF, S.N. HRD Activities Event Participated POs and Male Female Dalit Janajatis Muslim Others Total Others) Training on Sindhuli, Pyuthan, Kapilbastu, Micro- Terthathum, Siraha, Bajura, 10. Enterprise 368 1351 PO 3684 7837 2981 4020 480 4040 11521 Kalikot, Mahottari, Mugu, Humla, Development/T Rolpa OPE Training on Taplejung, Sindhuli, Dadeldhura, Micro- Ramechhap, Jumla, Bhajang, Enterprise Rukum, Accham, Mahottari, 11. 406 2357 PO 3521 6678 3143 1146 72 5838 10199 Development Siraha, Jajarkot, Rasuwa, (TOPE & Mahottari, Bajura, Rautahat, TOSE) Kalikot, Jumla TOT on Enterprise Development 12. (SIYB Package 1 7 Network PO 17 1 0 0 0 18 18 to COs Network Members Training on Dadeldhura, Sindhuli, Kapilbastu, Vegetable 13. 38 143 CO 265 398 114 209 14 326 663 Pyuthan , Bajura, Rautahat, Farming Humla, Mugu

Training on Off-Seasonal 14. 11 62 CO 29 57 0 0 0 86 86 Bhajang, Mugu Vegetable Farming Training on Off-Seasonal Vegetable 15. 3 6 PO 3 3 2 0 0 4 6 Bhajang Farming In Tunnel/Green House

III

Organized Gender & Ethnicity Wise No. of Participants Remarks No. of No. of COs by (PAF, S.N. HRD Activities Event Participated POs and Male Female Dalit Janajatis Muslim Others Total Others) Training on IPM in 16. 4 18 CO 9 44 6 45 0 2 53 Pyuthan Vegetable Farming Training on Vegetable 17. 1 9 CO 24 24 5 0 0 43 48 Mugu Seed Production Training on 18. Kitchen 3 8 CO 25 74 11 0 0 88 99 Mugu Gardening Training on Nursery Mgmt. 19. 6 6 CO 19 53 27 0 0 45 72 Mugu (Vegetables & NTFPs) Training on Apple Orchard 20. Development & 2 10 CO 36 46 36 0 0 46 82 Mugu Mgmt. ( IPM & Pruning) Training on 21. Dhaka 1 5 CO 2 11 0 0 0 13 13 Kalikot Weaving Training on System of Rice Kapilbastu, Bhajang, Siraha, 22. 12 231 CO 167 146 60 74 7 172 313 Intensification Bajura, Mugu (SRI) Training on 23. Apiculture/Bee 2 10 CO 28 9 6 0 0 31 37 Dadeldhura, Mugu keeping Training on 24. Poultry 2 18 CO 6 28 12 0 0 22 34 Dadeldhura, Bajura Farming

Organized Gender & Ethnicity Wise No. of Participants Remarks No. of No. of COs by (PAF, S.N. HRD Activities Event Participated POs and Male Female Dalit Janajatis Muslim Others Total Others) Training on 25. Herbal Tea 1 9 CO 8 11 0 0 0 19 19 Kalikot Production Training on Doti, Pyuthan, Dailekh, Kalikot, 26. 6 26 CO 34 35 38 7 0 24 69 Tailoring Rolpa Training on 27. Furniture 1 7 24 0 2 0 0 22 24 Mugu Manufacturing Training on Electric 28. 2 5 CO 13 0 1 0 0 12 13 Doti, Bhajang Works/Electrici an Training on 29. 7 CO 7 0 2 3 0 2 7 Pyuthan Plumbing Training on 30. Dalmoth 5 4 CO 11 3 0 5 0 9 14 Pyuthan Making Training on 31. 3 3 CO 0 18 1 5 0 12 18 Pyuthan Candle making Training on Agar Batti 32. 3 CO 0 12 3 2 0 7 12 Pyuthan (Incense Stick) Making Training on 33. Amla 1 7 CO 0 13 0 5 0 8 13 Pyuthan processing Training on 34. 1 CO 1 0 0 0 0 0 1 Pyuthan photography Training on 35. 1 2 CO 6 9 1 11 0 3 15 Dailekh Allo Production

Organized Gender & Ethnicity Wise No. of Participants Remarks No. of No. of COs by (PAF, S.N. HRD Activities Event Participated POs and Male Female Dalit Janajatis Muslim Others Total Others) Training on Construction 36. Work(Manage 4 41 CO 41 0 0 0 0 41 41 Bhajang ment/Mashiona ry Works) Training on 37. Computer 2 7 CO 4 3 0 0 0 7 7 Bhajang Operation Training on Repair/Mainten ance & 38. 2 CO 2 0 0 0 0 2 2 Bhajang Operation of Various Infrastructures Training on Ferro cement 39. 1 6 CO 6 0 0 0 0 6 6 Bhajang Tank Construction Training on 40. improved cook 1 5 CO 2 3 0 2 0 3 5 Pyuthan stove Training on Village Level Pyuthan, Sarlahi, Dailekh, Rukum, 41. Animal Health 153 CO 143 10 42 33 0 78 153 Siraha, Bajura Worker (35 days) Sindhuli, Dadeldhura, Jumla, Pyuthan, Kapilbastu, Rukum, 42. Exposure Visit 59 815 PO 784 658 318 371 26 727 1442 Siraha, Jajrkot, Bajura , Rautahat, Baitadi, Darchula

Organized Gender & Ethnicity Wise No. of Participants Remarks No. of No. of COs by (PAF, S.N. HRD Activities Event Participated POs and Male Female Dalit Janajatis Muslim Others Total Others) Orientation on Community Based 43. 2 35 CO/VDC 29 28 12 27 0 18 57 Sindhuli Livestock Insurance System Training on 44. Retail Shop 2 13 CO 1 38 12 2 0 25 39 Dadeldhura Mgmt. Training on 45. Sudeni 1 12 CO 1 15 8 8 0 0 16 Pyuthan Technical Skill Orientation on Procurement 46. 2 35 CO 24 11 8 0 0 27 35 Bhajang Method/Proced ures Orientation on O & M Policy, 47. 28 515 PO 233 282 68 0 0 447 515 Bhajang Fund Creation & Mgmt. Training on Operation & 48 Maintenance of 1 4 PO 8 0 0 0 0 8 8 Mugu Various Infrastructures Orientation on Good 49. 1 3 PO 15 29 6 36 0 2 44 Kapilbastu Governance & Social Audit Orientation on Participatory 50 38 197 PO 251 266 113 315 0 89 517 Khotang Rural Appraisal (PRA)

VII

Organized Gender & Ethnicity Wise No. of Participants Remarks No. of No. of COs by (PAF, S.N. HRD Activities Event Participated POs and Male Female Dalit Janajatis Muslim Others Total Others) Orientation on Demand Led 51. 41 707 PO 695 1283 397 491 16 1074 1978 Khotang, Kapilbast, Rautahat Proposal Writing Orientation on Inter COs Networking - 52. 4 87 PAF & PO 66 123 92 42 0 55 189 Siraha, Bajura Coordination & Resource Mobilization Orientation on 53. Participatory 18 18 Wards PO 404 252 198 12 0 446 656 Siraha Social Analysis TOT on Health 54 & Hygiene 31 8 PO 0 8 2 0 0 6 8 Jajarkot Awareness Orientation on Health & 55. 422 569 434 260 0 297 991 Jajarkot Hygiene Awareness Technical Training for 56. 2 6 PO 18 7 14 10 0 1 25 Ramechhap Business Group Orientation on 57. 4 51 PO 44 59 29 58 6 10 103 Kapilbastu Conflict Mgmt. Training on RBA, Social 58. Development & 93 314 PO 869 1311 381 881 25 893 2180 Kapilbastu, Kalikot, Humla Gender Sensitivity

VIII

Organized Gender & Ethnicity Wise No. of Participants Remarks No. of No. of COs by (PAF, S.N. HRD Activities Event Participated POs and Male Female Dalit Janajatis Muslim Others Total Others) Siraha, Ramechhap, Kapilbastu, Pyuthan , Mugu, Darchula, Sindhuli, Mahottari, Sarlahi, Orientation on Rautahat, Rasuwa, Accham, Doti, 59. PO evaluation PAF Dadeldhura, Baitadi, Bajura, process to COs Bhajang, Jajarkot, Kalikot, Humla, jumla, Rolpa, Dolpa, Rukum, Dailekh Orientation/Adv ocacy on Right 60. Based 52 74 PO 357 860 267 604 24 322 1217 Kapilbastu Approach

Training on Poverty & 61. 1 3 PO 6 20 9 0 0 17 26 Mugu, Development Journalism TOT on 62. Functional 9 208 PO 82 126 48 74 0 86 208 Sarlahi Literacy Dadeldhura, Sindhuli, Jumla, VDC Level Khotang, Udayapur, 63.. Orientation on 170 579 PO 8586 5373 2220 5934 12 5793 13959 Sindhupalchwok, Terthathum, PAF Siraha, Bajura, Saptari, Mugu VDC Level 64. 2 41 46 6 6 0 0 46 52 Darchula Vision Planning VDC Level PAF 65. Programme 2 41 60 45 10 20 0 75 105 60 Darchula Review Meeting

Organized Gender & Ethnicity Wise No. of Participants Remarks No. of No. of COs by (PAF, S.N. HRD Activities Event Participated POs and Male Female Dalit Janajatis Muslim Others Total Others) Ward Level Okhaldhunga, Sindhuli, Pyuthan, 66. Orientation on 276 288 PO 11470 10178 4266 10877 158 6347 21648 Sindhupalchwok, Siraha, Bajura, PAF Saptari Settlement Level Sindhupalchwok, Okhaldhunga, 67. 317 38 PO 4752 6286 2116 5878 0 3044 11038 Orientation on Sindhuli, Bajura, Saptari PAF Inter COs Ramechhap, Dadeldhura, Sharing , Sindhuli, Dailekh, Kapilbastu, 68. Coordination & 346 3186 CO & PO 3524 4700 2049 2125 36 4024 8224 Jumla, Pyuthan, Siraha, Kalikot, Networking Bajura, Darchula Meeting VDC Level Quarterly Review 69. 70 1068 CO & PO 2399 3210 1729 1116 43 2721 5609 Pyuthan, kapilbastu, Dadeldhura Meeting On PAF Activities

Annex 4: Capacity Development Status of Partner Organizations

Table A 5: List of HRD Activities conducted in PO

Organized No. Gender & Ethnicity Wise No. of Participants Remarks No. of POs by (PAF, S.N. HRD Activities of Participated POs or Event Male Female Dalit Janajatis Muslim Others Total Others?) Udayapur, Khotang, Pyuthan, TOT on Social Okhaldhunga, Dailekh, Kapilbastu, Mobilization & 1. 36 181 PAF & PO 664 249 109 197 20 587 913 Kalikot, Accham, Rautahat, Baitadi, Leadership Bara, Darchula, Mugu, Jumla, Saptari, Development Bardiya, Sindhupalchwok, Dadeldhura Refresher Training 2. on Social 1 7 9 4 1 8 0 4 13 Siraha Mobilization Training on Social 3. Mobilization & 5 27 PO 118 33 15 6 0 130 118 Dadeldhura, Dhanusa, Mugu Account Mgmt. Training on 4. 2 20 PAF 44 9 7 0 0 46 53 Kalikot, Baitadi Account Mgmt. Refresher Training 5. 2 5 PAF 18 2 2 2 0 16 20 Pyuthan, Bajura on Account Mgmt. Training on Revolving Fund & 6. 15 33 PAF 83 15 6 18 4 70 98 Pyuthan, Kapilbastu, Rukum, Darchula Saving-Credit Mgmt. Kapilbastu, Accham, Mugu, Salyan, Rolpa, Bardiya, Chitwan, Dhading, TOT on Enterprise Sindhupalchwok, Okhaldhunga, 7. Development/SIYB 5 74 PAF 110 33 19 19 1 104 143 Udayapur, Dhanusha, Saptari, Package Panchthar, Taplejung, Terthathum, Darchula

Training on Marketing Mgmt. & 9. 2 19 PO 39 8 6 4 0 37 47 Baitadi, Humla Value Chain Analysis TOT on Project Cycle Mgmt. (to 10. 1 8 13 3 1 0 0 15 16 Dadeldhura PCs & Chairperson) Training on Institutional development Pyuthan, Kapilbastu, Doti, Kalikot, 11. 30 68 PAF & PO 237 61 30 39 0 229 298 (Cooperative Jumla, Siraha, Darchula Education/Creation & Mgmt.) Training on Social & Positive Bhajang, Sindhupalchwok Kalikot, 12.. Transformation & 7 46 88 14 10 10 0 82 102 Sindhuli, Pyuthan Appreciative Inquiry Training on 13. Participatory Rural 7 14 PO 70 40 16 47 0 46 110 Bhajang, Khotang Appraisal (PRA) Orientation on Organizational Okhaldhunga, Accham, Taplejung, 14. Mgmt. & Demand 11 53 PO 173 77 43 83 6 118 250 Bhajang, Bajura, Bara, Siraha Led Proposal Preparation

XII

Organized No. Gender & Ethnicity Wise No. of Participants Remarks No. of POs by (PAF, S.N. HRD Activities of Participated POs or Event Male Female Dalit Janajatis Muslim Others Total Others?) Orientation on System of Rice 15. 1 4 PAF 13 2 3 1 0 11 15 Bhajang Intensification (SRI) Training on Report 16. 1 4 11 4 3 0 0 12 15 Bajura Writing Training on 17. Development 3 18 PAF 14 4 2 7 0 9 18 Pyuthan, Mugu, Siraha Journalism Training on Corner 18. 1 2 PAF & PO 2 0 0 0 0 2 2 Kapilbastu Stone Orientation & Design of Various 19. 5 19 PO 34 25 9 26 0 24 59 Bhajang, Bajura, Accham, Pyuthyan Infrastructures

Orientation on 20. 1 8 PAF 8 8 16 Accham Project Planning Orientation on Community Based 21. 4 33 PAF 60 20 11 5 0 24 80 Pyuthan, Kapilbastu, Accham, Jumla Livestock Insurance System Integrated Training on Seasonal, Off- Seasonal 22. 1 5 PO 35 4 5 1 0 33 39 Mugu Vegetable & Fruit Farming & Livestock mgmt. Orientation on 23. 4 28 PO 57 29 12 50 0 25 48 Khotang, Rukum, Jajarkot Health & Hygiene Orientation on 24. Diarrhea Control & 1 1 9 4 4 1 0 8 13 Bhajang Mgmt.

XIII

Organized No. Gender & Ethnicity Wise No. of Participants Remarks No. of POs by (PAF, S.N. HRD Activities of Participated POs or Event Male Female Dalit Janajatis Muslim Others Total Others?) Orientation on Good Governance 25. 1 3 PO 15 29 6 36 0 2 44 Kapilbastu & Right Based Approach Orientation O & M 26. Policy, Fund 1 1 12 4 4 1 0 11 16 Bhajang Creation & Mgmt. Orientation on 27. Procurement 2 35 24 11 8 0 0 27 35 Bhajang Method & Process Orientation CRF 28. 1 1 12 4 4 1 0 11 16 Bhajang Norms Preparation Workshop on 29. 1 1 PO 4 0 1 1 0 2 4 Bajura Reflection Study Orientation on 30. Networking & 1 1 PO 3 4 0 6 0 1 7 Siraha Coordination Dadeldhura, Sindhuli, Khotang, Jumla, Doti, Sarlahi, Dailekh, Bajura, 31. Exposure Visit 25 104 PO 310 97 58 84 2 263 407 Kapilbastu, Kalikot, Baitadi, Humla, Siraha Udayapur, Ramechhap, Khotang, Doti, Salyan, Orientation on PAF Dhading, Sindhupalchwok, Pyuthan , Proposal Writing & 32. 70 226 PAF 1140 509 207 520 19 903 1649 Bhajang, Taplejung, Okhaldhunga, Implementation Kapilbastu, Rolpa, Terthathum, Process Accham, Rautahat, Bara, Dhanusa, Parsa, Mugu, Siraha, Saptari, Bardiya

XIV

Organized No. Gender & Ethnicity Wise No. of Participants Remarks No. of POs by (PAF, S.N. HRD Activities of Participated POs or Event Male Female Dalit Janajatis Muslim Others Total Others?) Kapilbastu, Rolpa, Accham, Dhading, Orientation on PAF Salyan, Bardiya, Sindhupalchwok, Infrastructures & Okhaldhunga, khotang, Solokhumbu, Environmental 33. 25 221 PAF 323 45 19 67 7 277 366 Taplejung, Terthathum, Panchthar, Mgmt. Saptari, Udayapur, Dhanusha, Bara, implementation Parsa, Bhajang, Baitadi, Rukum, process Dadeldhura, Mugu, Siraha Orientation on PAF Khotang, Udayapur, Taplejung, 34. to DDC & Line 7 34 PAF 487 240 112 353 262 727 Terthathum Accahm Agencies PAF Programme Dadeldhura, Ramechhap, Jumla, Doti, Review & Pyuthan, Bhajang, Okhaldhunga, 35. Coordination 57 148 PAF/PO 766 125 71 92 1 625 891 kapilbastu, Terthathum, Mahottari , Meeting With DDC Bajura, Rautahat, Dolpa, Darchula, & Line Agencies Saptari Sindhuli, Ramechhap, Khotang, Inter POs Dadeldhura, Doti, Bhajang, Dailekh, Coordination, 36.. 132 184 PO 1052 183 118 238 1 728 1235 Jumla, Kalikot, Sindhupalchwok, Review & Sharing Pyuthan, Mahottari, Bajura, Mugu meeting Dolpa, Darchula, Saptari, Bajura Inter POs Yearly 37. Review & Planning 2 19 74 86 31 76 10 43 160 Ramechhap, Kapilbastu Workshop

Annex 5: Collaboration efforts at the District level

Table A 6: Collaboration at District Level

District Collaborating with Jointly Supported Activities/ Sub projects Kapilbastu District Education Office School Building at Dharampaniya VDC (DEO) DDC Wooden Bridge at Maharajganj VDC UNICEF Construction of rooms for Child Class at Niglehawa VDC VDCS Almost all VDCs has contributed for road, culverts and bridge sub-projects NEA Rural electrification at Dharamganj VDC, Niglihawa VDC Pyuthan BPC/APPSP Lift Irrigation project at Dhakhaquadi VDC BPC/ LFP Lift Irrigation project at Ramdi VDC BPC/VDC Lift Irrigation project at Ramdi VDC BPC/VDC Lift Irrigation project at Gothibang VDC REDP/DDC/VDC Micro-hydro project at Rajawara VDC VDC/ DDC Link Road at Tusara VDC VDC Link Road at Majkot VDC DEO Bal Bikash Bhawan at Bijuwar Mugu DFID/CSP, VDC Tirpa Gad Micro-hydro at Rugha VDCs DDC/RCIW, SNV Brushu Sinchai - Kotdanda DAO Apple farming in Rugha VDCS PCP/UNDP Jhyari khola MHP- Pina DFDP, DDC Sera lekh Drinking Water Supply- Seri VDC VDCs In all infrastructures projects (water supply, micro-hydro, irrigation, buildings sub-projects VDCs has made cash contribution Baitadi REDP/UNDP, DDC, VDC Patharkot MHP 17kw- Shikharpur REDP/UNDP, DDC, VDC Irana Gad MHP 15 kw- Ganjari VDC VDCs Shrebhawar DWSS. Chaukham VDCs Siraha DAO, Siraha SRI extension in PAF supported COs in all DADO program VDCs. Pilot project of Onion Farming in Bhabanipur VDC NEA, VDCS Electricity Extension for Irrigation in Phulkahakati, Padariya VDCs. District Veterinary Office Technical assistance to all PAF COs in Dhodna VDC Dabour Nepal/ANSAB Asparagus farming and marketing WINROCK Bio- Diesel demonstration DADO Collaboration for all district agriculture programme Darchula DDC/ VDC Drinking water supply project at Ranishikar, Eyarkut, Khandeshwori,Shankarpur, Lali VDC REDP Micro-hydro project at Gokuleshowr VDC CARE Micro-hydro project at Byans VDC VDC School Building at Dhap,Gokuleshwar, Khar,Rithachupata VDC Dadeldhura REDP Railgad MHP 15kw Kailpalmandu VDCs Sustainable Soil • Technology support off season vegetables in Manilek Management and Belapur VDC Programme(SSMP)

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District Collaborating with Jointly Supported Activities/ Sub projects District Livestock Dev Office • fodder plant distribution in Manilek, Koteli, Bhageshwor and Belapur VDC. • He-goat for breeding and shed construction for demonstration purpose for managed goat keeping in Manilek, Jogbudha, and Bhageshwor VDC. District Forestry Dev Office • Fruit tree saplings of Rittha and Lapsi in Belapur VDC. District Cottage and Small • Technical Skill Support for the CO members for 3 month Industry Dev. Committee and cutting and suing training to enhance skill in Bhadrapur PAF VDCs. REDC, DDC, VDCs and PAF • This is joint programme for Micro hydro 15 watt power Projects in Kailpalmandu VDC District Level PAF Monitoring • PAF programmes are jointly monitored by Team of Gov. and Supervision Committee Chiefs, Political Leaders, DDC, Journalists, NGO Formed at DDC Office federation and others. It is done one time per year. Humla AEPC, GEF, Nepal Trust and Syada MHP 26 kW- Syada VDC Bajhang Winrock Nepal Establishment of VSAT internet center, Hemantawada, luyata VDCs Jumla AEPC, VDCs Micro-hydro -11kW at Talium VDC, Micro-hydro 22kW at Patarsi VDC District Agriculture Office/ Livestock and Agricultural Training Veterinary Office Rasuwa District Agriculture Office Japanese Trout Fish Farming at Gatlyang VDC DDC/VDC,German NRN Phalagu Khola Bagatetear Irrigation at Laharepauwa VDC Dhading Room to Read, DDC, VDC Construction of School Building at Pida VDC Baglung AEPC Micro-hydro scheme 17 kW at Amarbhumi VDC Achham WINROCK Information Center ( V- Sat) at Bailpata VDC DDC/ VDC/ REDP Micro- Hydro project at Thandi & Kaskot VDC Morang Cottage & Small Industry 3 Month House Wearing Training for Community Members, Office Tankisunwari & Baujanathpur VDC Bajura DDC/VDC/REDP and District Mycro- Hydro projects at Kolti and Manakot VDCs. DDC and Agriculture Office VDCs are collaborated with many School Building project. District Agriculture Office collaborated in two Cellar store projects in Pandusen VDC of Bajura Jajarkot AEPC Mycro- Hydro at Khalanga VDC VDC Birendra Ma. Bi. school Building at Bhagawati VDC Mahottari Action Aid Women Empowerment programme at Balawa & Sarpali VDC Ramechhap MEDP • Capacity building of CO at Ramechhap, Sukajor, Sunarpani & Manthali VDC District Livestock Dev Office • Vaccination and fodder plant distribution at Okhreni VDC • Technical support in Livestock Insurance Scheme, Lyang Lyang, Ramechhap VDC. District Education Office • Non-Formal Education programme at Ramapur VDC • Budget support in School building Construction Cooperative Divisional Office, • Registered Cooperative from target COs Dolakha and PAF • 14 Cooperative Registed. District Health Office • Support for Health Kid-box for different CO of Different VDC • Collaboration and support fund for the construction of Sub Health Post Building.

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District Collaborating with Jointly Supported Activities/ Sub projects District Agri Dev Office • Fruit saplings of Junar provided to target CO members in subsidy. • Agriculture Cooperative registered from target COs like Dairy, Vegetable and Goat raising. Sustainable Soil • Support for technical assistance for vegetable farming Management Programme(SSMP) District Electricity Office, • Partnership approach and joint venture of budget for the District Drinking Water and Lift Drinking Water by Electricity cum Solar System. The Sanitation Office, Chisapani source of water is Tamakoshi River. VDC, DDC Manthali and PAF • About 80% task is successfully completed. ILO, APPSP, District Agri. • Support budget for establishment of Khimti Dairy, Khimti Dev Office, District Livestock VDC Dev. Office, FECOFUN and • Fodder grasses and fodder trees development in Khimti PAF VDC. District Cottage and Small • Technical Skill Support for the CO members of Dhaka Industry Dev. Committee and weaving. this is skill upgrated training in target VDCs. PAF AEPC, RIMREC, DDC, VDCs • This is joint programme for Micro hydro power Projects and PAF in Pritee, Gupteswor, Doramba, Daduwa, Phulasi, Kuvukasthali, Bamti, Gothagoun and Bijulikot VDCs. District Level PAF Monitoring • PAF programmes are jointly monitored by Team of Gov. and Supervision Committee Chiefs, Political Leaders, DDC, Journalists, NGO Formed at CDO/DDC Office federation and others. It is done two times per year. SDC and PAF • The programme run without duplication in the same working VDCs in Income generating and Infrastructure sub projects. BASP Nepal(Biogas) and • Support in construction of Bio gas Plant. PAF Kavre DDC/ VDC/ CIAM Lift Drinking Water project at Jamdi VDC DDC, VDC, Forest User To construct a mechanized bridge in Tandi VDC,DDC Sindhuli Groups, DEO, Constituent Sindhuli, Tandi VDC , Belshrot VDC of Udaypur district and Assembly members , WDO, a few constituent assembly members of Sindhuli and DLSO Udayapur districts provided Rs 3284609 out of it’s total cost Rs 6784609. Likewise, to construct a drinking water subproject in Pipamadi, VDC provided Rs 500000 To support a school building in Mahendrajhayadi DEO, Sindhuli provided Rs 266055. DLSO Sindhuli has been providing vaccination and other trainings related to livestock in many PAF program VDCs in Sindhuli. WDO, Sindhuli conducted non formal education training classes in 20 COs Doti AEPC/DDC/VDC 2 Micro-Hydro at Toleni VDC and 2 in Daud VDC Dipayal Silgadhi Nagarpalika School Building construction at D.S.N.P-5 & Samuhik Abhiyan VDCs For constructing school building at Pokhari and Ganjari VDCs

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Annex 6: Staff List as of October, 2010

Table A 7: List of Staffs

S.N Name Designation 1 Vidyadhar Mallik Vice Chairperson 2 Raj Babu Shrestha Executive Director 3 Manoj Chipalu Finance Analyst (Finance and Administration Division, Chief) 4 Murari Lal Chaudhary Community Infrastructure Expert (Community Infrastructure Development Division, Chief) 5 Krishna Babu Joshi M&E Expert (Monitoring, Evaluation and Research Division, Chief) 6 Ram Prasad Dhakal Social Inclusion Expert (Program Division, Chief) 7 Mahesh Pokharel Administrative Officer 8 Dilip R. Joshi Finance Officer 9 Prabin Ghimire Finance Officer 10 Sunita Shakya MIS Officer 11 Shree Ram Subedi Communication Officer 12 Kanchan Tamang Lama R&D Officer 13 Anita Koirala Micro Enterprise Development Officer 14 Avishesh Neupane Environment Officer 15 Naveen Prasad Procurement Officer 16 Shankar Prasad Yadav Civil Engineer 17 Akhilesh C. Das Coordinating Portfolio Manager 18 Jaya R. Pant Coordinating Portfolio Manager 19 Om Pd. Poudel Coordinating Portfolio Manager 20 Nirmal Pant Coordinating Portfolio Manager 21 Achut Man Singh Pradhan Portfolio Manager 22 Ajay K. Patel Portfolio Manager 23 Amar Kumar Pakhrin Portfolio Manager (Tamang) 24 Arun Panday Portfolio Manager 25 Bal Krishna Bishwakarma Portfolio Manager 26 Bhupananda BK Portfolio Manager 27 Bikam Karki Portfolio Manager 28 Ram Bahadur Bhusal Portfolio Manager 29 Deepa Regmi Portfolio Manager 30 Dhana Raj Shah Portfolio Manager 31 Durga B. Gandhari Portfolio Manager 32 Hare Ram Wagle Portfolio Manager 33 Ishwari Lal Bishwakarma Portfolio Manager 34 Jharendra Bahadur Singh Portfolio Manager 35 Kamal Bdr. Thing Portfolio Manager

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36 Krishna Bahadur Sherala Portfolio Manager 37 Lal Bdr. Siwa Portfolio Manager 38 Lokendra Singh Badal Portfolio Manager 39 Mahesh Kumar Shahi Portfolio Manager 40 Malati Chaudhary Portfolio Manager 41 Padam Singh Thagunna Portfolio Manager 42 Manoj kr. Gupta Portfolio Manager 43 Meena Nakarmi Portfolio Manager 44 Nirak Bahadur Sunar Portfolio Manager 45 Prabin Manandhar Portfolio Manager 46 Pramod Joshi Portfolio Manager 47 Rabindra Suwal Portfolio Manager 48 Ramesh Lama Portfolio Manager 49 Sajada Khatun Portfolio Manager 50 Sandeep Nath Upreti Portfolio Manager 51 Sanjay Kumar Jha Portfolio Manager 52 Pradip Poudel Portfolio Manager 53 Tara Pd. Joshi Portfolio Manager 54 Lalita Kayastha (Khanal) Account and Admin Assistant 55 Satish Kumar Chaudhary Account Assistant 56 Suman Kumar Pandit Account Assistant 57 Russell Man Singh Pradhan MIS Assistant 58 Dinesh Gautam Office Assistant 59 Dipesh Ratna Shakya Office Assistant 60 Jaya Hada Office Assistant 61 Kapila Prajapati Receptionist/Secretary 62 Parjun Sapkota Office Assistant 63 Rita Bayalkoti Office Assistant 64 Smriti Sharma Receptionist/Secretary 65 Anita Shrestha Office Assistant 66 Datta Maharjan Driver 67 Devi Kumar Ale Magar Driver 68 Krishna Bdr. Khatri Driver 69 Shiva Nagarkoti Driver 70 Prem Lama Messenger 71 Rajendra Dhakal Messenger 72 Subash Rai Messenger

Annex 7: District Wise Progress Status FY 2066/67 (2009/10)

Table A 8: District wise progress status FY 2066/67 (2009/10)

Target Actual Progress Achievement Cumulative Cumulative Cumulative No No No Cum Amt S.N. Districts IG INFRA Tot Total IG INFRA Total Cum Amt Disb IG INFRA Total Disb 1 Darchula 118 67 185 116, 565, 284 0 0 0 0 0% 0% 0% 0% 2 Kapilbastu 108 16 124 47, 597, 000 0 0 0 0 0% 0% 0% 0% 3 Mugu 15 15 30 25, 409, 842 48 7 55 20, 893, 421 320% 47% 185% 82% 4 Pyuthan 92 34 126 118, 152, 435 121 3 124 57, 900, 506 132% 9% 98% 49% 5 Ramechhap 90 30 120 63, 208, 000 41 0 41 15, 983, 742 46% 0% 34% 25% 6 Siraha 110 10 120 75, 337, 013 0 0 0 0 0% 0% 0% 0% 6 Total 533 172 705 446, 269, 573 210 10 220 94, 777, 669 1 Achham 100 31 131 57, 199, 739 0 0 0 0 0% 0% 0% 0% 2 Baitadi 174 28 201 73, 762, 036 0 0 0 0 0% 0% 0% 0% 3 Bajhang 43 46 89 34, 450, 000 0 0 0 0 0% 0% 0% 0% 4 Bajura 121 43 165 86, 830, 543 0 0 0 0 0% 0% 0% 0% 5 Dadeldhura 35 10 45 22, 093, 229 0 0 0 0 0% 0% 0% 0% 6 Dailekh 124 15 139 106, 102, 722 0 0 0 0 0% 0% 0% 0% 7 Dolpa 92 20 112 48, 791, 693 0 0 0 0 0% 0% 0% 0% 8 Doti 33 11 44 20, 672, 909 0 0 0 0 0% 0% 0% 0% 9 Humla 85 19 104 37, 118, 902 0 0 0 0 0% 0% 0% 0% 10 Jajarkot 51 14 65 50, 275, 823 0 0 0 0 0% 0% 0% 0%

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Target Actual Progress Achievement Cumulative Cumulative Cumulative No No No Cum Amt S.N. Districts IG INFRA Tot Total IG INFRA Total Cum Amt Disb IG INFRA Total Disb 11 Jumla 96 28 124 73, 387, 369 0 0 0 0 0% 0% 0% 0% 12 Kalikot 150 55 205 94, 869, 064 30 10 40 25, 597, 762 20% 18% 19% 27% 13 Mahottari 80 30 111 62, 781, 404 0 0 0 0 0% 0% 0% 0% 14 Rasuwa 40 10 50 16, 030, 153 0 0 0 0 0% 0% 0% 0% 15 Rautahat 260 11 271 187, 450, 353 42 0 42 30, 119, 290 16% 0% 16% 16% 16 Rolpa 71 2 73 29, 613, 596 0 0 0 0 0% 0% 0% 0% 17 Rukum 51 18 69 22, 757, 927 0 0 0 0 0% 0% 0% 0% 18 Sarlahi 100 0 100 28, 320, 000 113 0 113 57, 436, 189 113% 113% 203% 19 Sindhuli 63 34 97 64, 349, 277 0 0 0 0 0% 0% 0% 0% 19 Total 1, 769 424 2, 194 1, 116, 856, 739 185 10 195 113, 153, 241 25 District Total 2, 302 596 2, 898 1, 563, 126, 312 395 20 415 207, 930, 910 1 Bara 45 8 53 15, 975, 000 0 0 0 0 0% 0% 0% 0% 2 Bardiya 46 2 48 10, 140, 000 0 0 0 0 0% 0% 0% 0% 3 Dhanusa 78 6 84 20, 520, 000 24 0 24 14, 095, 504 31% 0% 29% 69% 4 Dhading 45 44 89 34, 403, 825 0 0 0 0 0% 0% 0% 0% 5 Khotang 30 11 41 8, 235, 000 0 0 0 0 0% 0% 0% 0% 7 Panchthar 34 3 37 8, 964, 000 0 0 0 0 0% 0% 0% 0% 14 Terathum 36 12 48 11, 160, 000 0 0 0 0 0% 0% 0% 0% 6 Okhaldhunga 26 0 26 5, 418, 000 0 0 0 0 0% 0% 0% 8 Parsa 98 32 130 34, 944, 000 0 0 0 0 0% 0% 0% 0%

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Target Actual Progress Achievement Cumulative Cumulative Cumulative No No No Cum Amt S.N. Districts IG INFRA Tot Total IG INFRA Total Cum Amt Disb IG INFRA Total Disb 9 Salyan 16 24 40 10, 560, 000 0 0 0 0 0% 0% 0% 0% 10 Saptari 24 3 27 5, 040, 000 0 0 0 0 0% 0% 0% 0% 11 Sindhupalchok 48 12 60 13, 575, 000 0 0 0 0 0% 0% 0% 0% 12 Solukhumbhu 28 2 30 8, 865, 000 7 0 7 3, 299, 460 25% 0% 23% 37% 13 Taplejung 50 11 61 13, 650, 000 198 0 198 74, 844, 914 396% 0% 327% 548% 15 Udayapur 44 5 49 10, 635, 000 0 0 0 0 0% 0% 0% 0% 15 Total 646 174 819 212, 084, 825 229 0 229 92, 239, 878 40 District Total 2, 947 770 3, 717 1, 775, 211, 137 624 20 644 300, 170, 788 20 Poverty Pocket 2 districts* 117 0 117 46, 755, 000 0 0 0 0 Sub Total 117 0 117 46, 755, 000 0 0 0 0 1 Chitwan 11 3 14 3, 769, 600 0 0 0 0 0% 0% 0% 0% 2 Kanchanpur 0 0 0 0 0 0 0 0 3 Kavre 0 0 0 0 0 0 0 0 4 Makwanpur 5 8 13 12, 349, 327 0 0 0 0 0% 0% 0% 0% 5 Morang 0 0 0 0 0 0 0 0 Other innovative 6 projects 63 0 63 22, 959, 936 0 0 0 0 0% 0% 0% Innovative Total 79 11 90 39, 078, 863 0 0 0 0 Overall Total 3, 143 781 3, 924 1, 861, 045, 000 624 20 644 300, 170, 788

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Annex 8: POs, COs and Coverage (Cumulative to date)

Table A 9: POs, COs and Coverage

PO Sub Proj. No. Beneficiary HH No. of Total VDC + CO Committed District Working Municipality Working No. of CO Total Pos in District VDC VDC IG Infra Member Beneficiary HH HH Initial 6 Districts Darchula 10 41 41 41 851 379 17, 834 33, 133 Kapilbastu 15 78 78 60 804 420 22, 701 33, 900 Mugu 6 24 24 24 274 110 7, 110 9, 451 Pyuthan 12 49 50 49 1, 013 247 30, 907 36, 434 Ramechhap 9 55 55 55 1, 137 185 27, 786 35, 428 Siraha 17 108 87 71 1, 267 258 30, 609 35, 135 6 Dist. Tot 69 355 335 300 5, 346 1, 599 136, 947 183, 481 19 Additional Districts Achham 16 75 67 38 535 61 17, 073 27, 479 Baitadi 14 63 63 36 437 99 14, 866 15, 884 Bajhang 10 47 47 19 234 155 7, 387 15, 692 Bajura 4 27 27 27 383 60 11, 662 13, 927 Dadeldhura 8 21 21 21 369 37 10, 899 12, 130 Dailekh 5 56 25 25 380 12 13, 817 15, 541 Dolpa 3 23 23 18 166 4 4, 942 5, 202 Doti 5 51 36 31 408 21 13, 140 16, 055 Humla 5 27 27 27 331 31 7, 860 9, 315 Jajarkot 8 30 26 26 300 21 10, 709 20, 457 Jumla 7 30 30 30 470 93 16, 621 17, 908 Kalikot 6 30 30 30 540 29 15, 907 17, 768 Mahottari 12 77 46 23 540 13, 440 13, 140 Rasuwa 6 18 18 15 259 13 7, 572 8, 085 Rautahat 9 97 89 55 1, 146 202 31, 459 41, 007 Rolpa 5 51 22 4 98 2, 928 2, 919 Rukum 10 43 33 16 210 19 6, 741 7, 527 Sarlahi 16 100 67 67 1, 025 29, 527 29, 397 Sindhuli 10 54 54 37 774 151 24, 071 32, 290 19 Dist. Tot 159 920 751 545 8, 605 1, 008 260, 621 321, 723 25 Dist. Tot 228 1, 275 1, 086 845 13, 951 2, 607 397, 568 505, 204 15 Districts (B1) Bara 13 99 46 Bardiya 6 32 18

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PO Sub Proj. No. Beneficiary HH No. of Total VDC + CO Committed District Working Municipality Working No. of CO Total Pos in District VDC VDC IG Infra Member Beneficiary HH HH Dhading 8 50 20 5 16 1 447 458 Dhanusha 14 102 51 14 25 681 659 Khotang 7 76 38 Okhaldhunga 7 56 28 Panchthar 7 41 21 Parsa 11 83 48 39 74 2, 211 2, 159 Salyan 6 47 27 7 6 4 194 415 Saptari 15 115 45 Sindhupalchok 11 79 33 Solukhumbu 3 34 14 2 7 150 150 Taplejung 9 50 41 22 199 1 4, 084 4, 116 Terhathum 4 32 16 Udayapur 10 45 23 15 Dist. Tot 131 941 469 89 327 6 7, 767 7, 957 40 District Total 359 2, 216 1, 555 934 14, 278 2, 613 405, 335 513, 161 Innovative Programme Districts Baglung 0 60 0 1 1 13 142 Chitawan 1 38 7 7 45 28 1, 034 1, 031 Dhading 1 50 6 6 81 22 2, 394 3, 354 Kanchanpur 1 20 20 8 120 2, 755 2, 799 Kavrepalanchok 1 90 1 1 1 1 11 125 Lalitpur 2 42 4 2 2 416 516 Makwanpur 2 44 18 18 66 39 3, 154 3, 833 Morang 3 65 4 3 78 45 3, 124 3, 133 Nawalparasi 0 74 0 1 1 11 705 Surkhet 0 48 0 1 1 9 655 Innovative Total 11 531 60 48 391 140 12, 921 16, 293 Sub Total 370 2, 747 1, 615 982 14, 669 2, 753 418, 256 529, 454 Innovative Programme Districts NDM-2005 12 25 25 10 2 8, 999 NDM-2008 25 52 52 17 8 5, 228 NDM Total 37 0 77 77 27 10 0 14, 227 Total = 407 2, 747 1, 692 1, 059 14, 696 2, 763 418, 256 543, 681 370 85% Note: 17 POs worked in 25 districts were dropped due to poor performance and inability to work.

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Annex 9: Current Board of Governors (as of February 2011)

Table A 10: List of Current Board of Governors

S.N. Name Designation

1 Mr. Jhalanath Khanal Chairperson, Prime Minister 2 Mr. Vidhyadhar Mallik Vice Chairperson 3 Ms. Brinda Hada Member, Secretary NPC Secretariat 4 Mr. Rishiraj Lumsali Member, Chairperson ADDCN 5 Ms. Mahin Limbu Member, Chairperson NAVIN 6 Ms. Nainkala Thapa Member, Chairperson National Women Commission 7 Mr. Bijul Kumar Bishwakarma Member, Chairman National Dalit Commission 8 Dr. Arzu Rana Deuba Member 9 Dr. Bal Gopal Baidya Member 10 Dr. Duman Thapa Member 11 Mr. Khalil Miyan Member 12 Mr. Shreekrishna Upadhyay Member 13 Mr. Raj Babu Shrestha Secretary to the Board/Executive Director, PAF

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Annex 10: PAF organization structure

Monitoring Evaluation R&D Division Division Chief (1)

Area Program MIS Unit Coordinator (8) R&D Officer (1) Civil Engineer (3) Micro Enterprise Dev. officer (1) Finance officer (2) Admin Officer (1) MIS Officer (1) Portfolio Manager (40) Monitoring Officer (2) Institution Dev./Trg. Officer (1) Procurement Officer (1) Environment officer (1) Data Analyst (1) REGIONAL OFFICE Admin/Acct. Officer (2) Communication Program Asst. (2) Messenger (2) Officer (1) XXVII

Receptionist (2), Program Assistant (11), Messenger (6), Driver (8) Annex 11: PAF Financial Statement

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