Effectiveness of Reconstruction Aid in Nepal 1 @copyright HAMI

November, 2017

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2 Effectiveness of Reconstruction Aid in Nepal Executive Summary

This report brings forth the and inclusive partnerships and critical analysis of the post- achieving development results – earthquake reconstruction aid and openly accounting for them. and its effectiveness to address the needs and expectations of The International Conference on earthquake affected people. It Nepal’s Reconstruction (ICNR) additionally highlights efforts on June 25, 2015 identified the and progresses made to rebuild need of preliminary USD 6.7 quake-destroyed infrastructures billion for reconstruction. Out of and houses by assessing the role it, USD 4.6 billion was harnessed of the government, international by international community. community, non-government and Some donors like China, UK, private sectors in response to USA, Germany, ADB and other earthquake. Analysed mainly the organizations have signed the secondary source of information, agreement as part of providing the collected facts and figures pledged money. However, India have been substantiated and the main donor is yet to sign it. validated through some selective Several factors are responsible to and content as well as context this bitter fact such as political based interviews/interactions with parties' wrangling on appointing concerned stakeholders. Chief Executive Officer (CEO), lack of concrete follow up with Government, I/NGOs and inter- visible and strong plan with the national aid groups have been donors, frequent changes and involved in post-earthquake unnecessary reshufflings of the reconstruction soon after the government. Furthermore, the devastation. Both the government reconstruction effort failed to and international donors pledged make a strong lobby and follow up various schemes for earthquake to harness international support survivors while I/NGOs themselves

Aid in Nepal and provide timely housing grants got involved in rebuilding quake- to earthquake survivors despite destroyed infrastructures or its ideal commitment. An irony mobilized local NGOs. is clearly seen where billions of money remained unspent in each Reconstruction through aid fiscal year and some earthquake effectiveness is mandated by Paris survivors are yet to get first tranche Principle (2005) and its follow of housing grant while very few up called ACCRA Agenda which households have received full sought responsibility of developed grants. and developing countries for delivering and managing aid Grant distribution process is by creating ownership, alignment, complex, banking process was made harmonisation, being result very clumsy, complaint hearing oriented and mutual accountability. mechanism was not robust and The ACCRA Agenda (2008) satisfactory to the survivors filing furthermore highlighted country Effectiveness of Reconstruction cases. This all shows lack of proper ownership, building more effective investigation capacity within NRA

Effectiveness of Reconstruction Aid in Nepal 1 to deal with the genuine complaints thousands of quake survivors are • As a long term strategy to make by maintaining standard norms. living under temporary shelters. the NRA a powerful body with Reconstruction of the public constitutional capacity and institutions and historic heritages Twenty-four I/NGOs were found for the immediate cause, to also remained incomplete. To the pledged to spend 44.88 billion implement reconstruction projects frontline of them are the historic rupees for constructing 21,000 by creating momentum in Dharahara and Ranipokhari and houses, health offices and schools coordination with line ministries. 1 several others. in earthquake-affected districts . As of now 5992 houses have been • Line ministries to prioritise Several factors are responsible constructed in quake-affected reconstruction works without for the lack of effective aid flow districts. The pace of I/NGOs compromising and not taking it through NRA. Frequent changes involved in housing reconstruction as a burden. in government leadership have is also not up to expectation of the also affected post-earthquake survivors. They are also struggling • Local levels through elected reconstruction. Each government to meet their own targets. Some peoples’ representatives to take hardly completes one-year. This private sector initiative like up the reconstruction issues in has also affected functioning of Dhrumus Suntali Foundation is the their policies and programmes the reconstruction authority as examples to cite here while some with utmost priority. Their role is priorities of each new government others have yet to implement their vital in verification of earthquake differ from previous ones. Yet, commitment such as Chaudhary survivors by establishing a the NRA lacks full authority to Foundation. separate unit on complain implement its decision. It has to hearing and assuring justice for fully rely on other line ministries. Recommendations: the genuine survivors. The bureaucratic hurdles within To the Government/NRA • Ensure knowledgeable expertise the ministries have further and trained technicians at the complicated the reconstruction • Facilitating as a bridge to maintain local level for reconstruction process. diplomatic relation and make works. a continuous follow up with Despite huge money pledged by the international community • Ensure dignified life of the international community and for channelizing pledged fund survivors addressing their problems. two-and-half years elapsed since for the sake of the earthquake the devastation most earthquake survivors and reconstruction of • For this all, the much awaited survivors are taking shelter public institutions. and long-pending Disaster under tent for months. As part Management Bill is endorsed and of rebuilding quake-destroyed • Frequent public audits among its full implementation plan needs houses and infrastructures, the the stakeholders in quake to be made public at the earliest. government allocates billions of hit areas/districts focusing money in each fiscal year. The progresses made, problems faced To the Political parties allocated budget, however, was and coordination issues and never fully utilized. areas sought by the authority. • Political commitment for powerful autonomous National Quake-survivors are not in • Housing grants for earthquake Reconstruction Authority and end a position to rebuild houses survivors should be ensured politicization on reconstruction right now arguing that housing without further delay so that works. Political parties should reconstruction grant is too little. they could begin long-delayed led the reconstruction initiative The pledged money remains hosing reconstruction. together with multistakeholders unspent so far at a time when 1 for integrated reconstruction Interview with Bishnu Poudel, an official at Policy Monitoring and Development Cooperation Coordination Section under the campaign. NRA in an interview.

2 Effectiveness of Reconstruction Aid in Nepal • Political negotiation with the must assure survivors through international community exemplifying initiatives how including India and other the reconstruction is possible in donors to sign the aid agreement stipulated time. as committed in the ICNR and explore other possible options • Providing technical assistance to ensure adequate fund for in their working areas through reconstruction. skill based trainings in accordance with the standard • Creating motivation among set by the Authority. This the survivors for the need of will help them to reconstruct maintaining standard indicated houses and get the government by the government in recon- announced grants in time. structing their house and involve in regular campaign to make reconstruction a priority of all. To non-government and private sector

Translating commitment into practice by maintaining transparency and governance in reconstruction activities. Their contribution made in the field of reconstruction and lapses should be publicized among survivors. Also, the Authority

Effectiveness of Reconstruction Aid in Nepal 3 List of Tables and Figures

Table 1: Commitment for Nepal’s Reconstruction as Expressed by Participating Donors, ICNR, 2015

(in millions of US dollars)

Figure 1: Agreement Amount (US Dollar in Millions) from Agencies

Table 2: Progress on Reconstruction: The Database

Figure 2: Status of Compensation Distribution by NRA (in Number)

Figure 3: Status of Compensation Distribution by NRA (%) (Total Identified Households: 749796)

Figure 4: Status of Relocation of Vulnerable Settlement

Figure 5: Reconstruction Progress Update

Figure 6: Funding Gap across Major Sectors (in NPR. Billion)

4 Effectiveness of Reconstruction Aid in Nepal TABLE OF CONTENTS

Executive Summary...... 1 SECTION 1...... 6 INTRODUCTION...... 6 1.1 Background...... 6 1.2 Rationale and Scope of Aid Effectiveness...... 6 1.3 Objective of the Study...... 7 1.4 Methodology...... 7

SECTION 2...... 8 Aid Effectiveness of Reconstruction: A Policy Review and Reality...... 8 2.1 Aid Effectiveness Principle: Global obligations...... 9 2.2 Reconstruction Aid in Nepal: Commitment versus Reality...... 9 2.3 Support to Affected Communities, Complaints and Relocation Issues...... 12 2.4 Reconstruction Politics in Public Sector...... 14 2.4 Factors Responsible for Effective AID Flow...... 14 2.5 Reality of Aid Effectiveness: A Case to Cite...... 15 2.6 Sectoral Funding Gap...... 15 2.7 Initiatives from Non-government Sector...... 16 2.8 Challenging Cut-off Deadline...... 17

SECTION 3...... 18 LESSONS AND RECOMMENDATIONS...... 18 3.1 Lessons Learnt...... 18 3.2 Recommendations...... 19

Works Cited...... 20

Effectiveness of Reconstruction Aid in Nepal 5 SECTION 1 Introduction 1.1 Background assessment (DaLA) methodology The devastating earthquake (World Bank, 2011). According to occurred on 25 April 2015 claimed the report, hundreds of historical the lives of nearly 9,000 people and cultural monuments and inhabiting mainly in the mid- century old archaeological sites hills of Nepal. Struck with the were either destroyed or extensively epicentre located 81 kilometres damaged. Whatever houses, the northwest of the capital city of monuments or the cultural heritages Kathmandu, Barpak, Gorkha were damaged, they did not have district, more than 22,000 people any seismic-resistant features or caused injury collapsing more were not built in in accordance with than half a million houses (NRA, the building codes (NPC, 2015). 2017)2. The devastation ruined The report is, however, almost hundreds of historical and cultural untouched on the software side- monuments, schools and health social, cultural, and humanitarian posts. Rural areas were affected welfare as critiqued by CDPS, 2016 more as compared to the cities which said the PDNA, because of poor construction …did not, however, place much quality, traditional inhabiting focus on understanding the socio- structures and topographical demographic impacts of earthquake, landscape. In the most affected that is, how households and 15 districts3, key infrastructures - communities were affected, what the including schools, health facilities, local capacity for response is, and how roads, temples and heritage sites recovery and reconstruction efforts – have been damaged losing over can be made more responsive. It also did not assess the harm to socio- 1,000 health facilities including demographic aspects of the human primary health care centres, population, including impacts on the village health posts and birthing cultural diversity of households or centres. Similarly, the country lost on population dynamics, including about half of the monuments of fertility, mortality, migration, size, immense historical, cultural and composition and distribution, all Aid in Nepal archaeological significance were of which are the cornerstones of successful recovery, rehabilitation, destroyed (NPC, 2015). resettlement and reconstruction The Post Disaster Needs Assessment (CDPS, 2016). (PDNA) conducted by the National Planning Commission (NPC) 1.2 Rationale and Scope through a task team including the of Aid Effectiveness specialists in the field has made a Consequent to the devastation, the rigorous work on damage and loss government, within hours, made of physical properties, or hardware an official request for the national aspect using internationally and international assistance. Nepal approved standard disaster and loss Army, Nepal Police and Armed Police

2 Government of Nepal, Disaster Risk Reduction Portal. http://drrportal.gov.np/. Force (APF) carried out effective 3 A total of 31 of Nepal’s 75 districts were affected by the earthquake according to the CDPS search and rescue operations. (2016). Fourteen of them were designated as most affected districts by the government. Once designation like this, both the government and non-government sectors' relief, Apart from the government, non- rehabilitation, recovery and reconstruction were centralized in these 14 districts: Gorkha, governmental international and

Effectiveness of Reconstruction Dhading, Nuwakot, Rasuwa, Sindhupalchowk, Dolakha, Ramechhap, Kavrepalanchowk, Okhaldhunga, Makawanpur, Sindhuli, Kathmandu, Bhaktapur and Lalitpur. In fact local organisations ((I/NGOs) as Nepal Reconstruction Authority (NRA) had recommended 15 districts, that is, including Lamjung district as well, For further detail, See https://thehimalayantimes.com/ well as organizations dedicated kathmandu/reconstruction-authority-recommends-govt-to-include-31-districts-in-its-scope- to humanitarian support and . of-work/ for the categorization of the districts affected by the earthquake the private sectors were quick

6 Effectiveness of Reconstruction Aid in Nepal to provide essential daily needs is virtually a disguised authority in process. Progress has been made among the severely affected such a herculous task. but it is still below the expectation. communities in the quake hit areas. Earthquake affected people are of Several national and international Amid the debate and discussion the view that they are not getting volunteer groups and youths were who to lead reconstruction, a separate the reconstruction grants timely as self-mobilized in the treatment body, National Reconstruction expected and pledged by the donors of injured, setting up temporary Authority (NRA), was established A number of bottlenecks can be shelters, and supplying foods and on 25 December 2015 as a held responsible to expedite the non-food items, although these separate entity. The tenure of the reconstruction work. However, the supports were limited with trained NRA was fixed for five years role of the international community human resource and available indicating completion of Nepal's needs to be properly analysed, equipment. Reconstruction due to earthquake particularly, challenlisation of devastation. The responsibility was funds they committed, particularly, Several meetings with donor to lead and manage reconstruction its availability to the government, communities were convened to and recovery of the earthquake distribution plan and policies seek international assistance for with the aim of completing post- and status at the recipient search, rescue and immediate earthquake reconstruction by level. This study, undertaken by relief operations. One of them, channelizing fund allocated by HAMI, is devoted to take up the much quoted, in the national the government and international question connected with Nepal's and international fora is the donors As a first and foremost reconstruction in light of aid International Conference on task, the NRA formulated a Post effectiveness. Nepal’s Reconstruction (ICNR Disaster Recovery Framework 2015) held on 25 June 2015. (PDRF) (2016-2020) on the basis 1.3 Objective of the Study Although the rescue operation of PDNA. It was expected that The main objective of this study as a whole was praised, the formation of the Authority would is to critically analyse the post- expedite the reconstruction reconstruction was/is remained earthquake reconstruction aid process and infrastructures and challenging. Since local bodies were and its effectiveness to address houses destroyed in the earthquake running without elected people’s the needs and expectations of would be constructed in time. But representatives since last one earthquake affected people. and half a decade and the offices more than two-and-half years elapsed since the devastation had to be run by the overloaded 1.4 Methodology secretaries of the then village post-earthquake reconstruction development committees (VDCs) works are not up to the people’s The analysis is basically relied and municipalities, the challenge expectations. on the secondary source of was adding day by day. On the Despite delay, the reconstruction information, that are reviews of one hand, lack of trained human process is taking its course. both research based literature as resource on the relief distribution International community has well as and policies, programmes initially and reconstruction lately pledged for necessary aids to and guidelines developed for the became the challenge for the support reconstruction process. reconstruction mission. In order government, on the other number Government of Nepal has allocated to substantiate and validate the of human resource for the fair a good sum of national budget information collected through involvement on disaster response for reconstruction works. Civil a range of secondary sources, was severely felt in the beginning society organizations including some selective and content as phase of the reconstruction. In Humanitarian Accountability well as context based interviews/ absence of political authority at Monitoring Initiative (HAMI) are interactions were conducted with local level, the measures against supporting the government by concerned stakeholders Such post disaster initiative for rescue, bringing the community voices to primary level information was relief, and reconstruction activities the discussion with policy makers obtained mainly to find out the had to depend on a coordinated and thereby urging them for people- real scenario and status of aid flow effort of all the stakeholders, that centred, inclusive, transparent and for Nepal's reconstruction. are, political parties at large which community owned reconstruction

Effectiveness of Reconstruction Aid in Nepal 7 SECTION 2 Aid Effectiveness of Reconstruction: A Policy Review and Reality Development assistance is a and managing aid in terms of five process to stimulate economic principles: growth in the developing world. How to establish the link between • Ownership: Partner countries aid and growth is the tension of exercise effective leadership the scholars in the related field. over their development policies, Despite significant volume of and strategies and co-ordinate contribution of development development actions assistance, particularly during • Alignment: Donors base their disaster, effectiveness of such aid overall support on partner flow is curiosity at hand. Although, countries’ national development the history of development strategies, institutions and assistance does not go beyond procedures 50 years globally, the facts and • Harmonisation: Donors’ actions figures on the effectiveness part is are more harmonized, transparent the major gap. Sectoral analysis and collectively effective of aid flow and its effectiveness is • Managing for Results: Managing the growing concern which this resources and improving review is committed, that is, to decision-making for results dig out the aid flow policy review • Mutual Accountability: Donors and the reality in the case of and partners are accountable for Nepal's reconstruction as a disaster development results response. The Paris Declaration on Aid 2.1 Aid Effectiveness Effectiveness has included a Principle: Global point on disaster response under obligations the separate bullet point "Adapt Aid in Nepal and apply to differing country One of the major principles set- situations" as No.7. It says, forth in this regard is the Paris Declaration on Aid Effectiveness Enhancing the effectiveness of aid Ownership, Harmonisation, is also necessary in challenging Alignment, Results and Mutual and complex situations, such Accountability (OECD 2005). as the tsunami disaster that Ministers of both developed and struck countries of the Indian developing countries responsible Ocean rim on 26 December 2004. for promoting development and In such situations, worldwide heads of multilateral and bilateral humanitarian and development development institutions, met assistance must be harmonized in Paris on 2 March 2005 to within the growth and poverty resolve to take far-reaching and reduction agendas of partner monitorable actions to reform the countries. In fragile states, as ways they delivered and managed we support state-building and

Effectiveness of Reconstruction aid. The Paris Declaration on delivery of basic services, we Aid Effectiveness looks at the will ensure that the principles of responsibility of developed and harmonization, alignment and developing countries for delivering

8 Effectiveness of Reconstruction Aid in Nepal managing for results are adapted to immediate neighbours of Nepal— Some donors like China, UK. environments of weak governance India and China—and other USA, Germany, ADB and other and capacity. Overall, we will organizations expressed solidarity organizations have signed the give increased attention to such to earthquake reconstruction and agreement as part of providing complex situations as we work pledged their support to make pledged money. However toward greater aid effectiveness. reconstruction a success. In this India, one of largest donors meeting the government put the committing promised $1billion Similarly, ministers of developing figures as preliminary need of dollar aid (650,000,000 grant and and donor countries responsible USD 6.7 billion for reconstruction. 750,000,000 loan) for Nepal’s for promoting development and Represented by various delegates reconstruction, is yet to sign it. heads of multilateral and bilateral such as Foreign Minister of India, The NRA had planned to spend development institutions gathered the delegates pledged assistance India promised grant money for in Accra, Ghana, on 4 September on their behalf as shown in rebuilding school (NPR 5 billion), 2008 to accelerate and deepen Table 1. Out of total amount the health post (NPR 5 billion) and implementation of the Paris government presented among cultural heritage (NPR 5 billion) Declaration on Aid Effectiveness donors, the bilateral agencies (OECD, 2008). This meeting, a and private housing reconstruction pledged USD 2.9 billion, of which (NPR 10 billion). In addition to this, review of Paris Principle, closely the highest was of India (1,400 reviewed the aid flow and its NRA had planned to spend Indian million USD) followed by China loan for school reconstruction effectiveness and concluded that (767 Million USD). Similarly, the (NPR 20 billion), private house there has been a progress in poverty multilateral agencies like World (NPR 30 billion), cultural heritage alleviation in the developing Bank, Asian Development Bank (NPR 15 billion) and community world, however, the speed is slow. and International Monitoring building (NPR 5 billion) (NRA, This meeting identified three major Fund (IMF) pledged 1150 Million 2015). But the Authority is facing challenges to accelerate progress USD (Table 1). huge financial gap for rebuilding on aid effectiveness: quake damaged houses and infrastructures, is in a fix on how • Country ownership is key to expedite reconstruction works. • Building more effective and inclusive partnerships Table 1: Commitment for Nepal's Reconstruction as Expressed by Participating Donors, • Achieving development results – ICNR, 2015 (in millions of US dollars) and openly accounting for them Donors Loans Grants Total 2.2 Reconstruction Aid 1. Bilateral 9 58 1,971 2 ,929 in Nepal: Commitment China … 767 767 versus Reality EU … 117 117 Nepal government hosted the India 750 650 1,400 International Conference on Japan 2 08 52 260 Nepal’s Reconstruction (ICNR) on UK … 1 10 110 June 25, 2015 after it concluded US … 1 30 130 that domestic resources might not Others … 145 145 be enough to rebuild houses and infrastructures destroyed in the 2. Multilateral 1 ,130 20 1,150 earthquake. International donors ADB 5 80 20 600 were called at the donor’s conference WB 5 00 … 500 to seek their commitment to IMF 5 0 … 50 contribute the reconstruction. Total 2,088 1,992 4,079 At the conference, both the Source: IMF (2015) bilateral and multi-lateral donors,

Effectiveness of Reconstruction Aid in Nepal 9

ix CEO as new NRA chief again. This was the bitterest experience faced by the earthquake survivors and observed by the stakeholders in bewilderment.

Due to, thus, unexpected politicisation in NRA, the reconstruction effort failed to make a strong lobby and follow up to harness international support and provide timely housing grants to earthquake survivors despite its ideal commitment. While billions of money remained unspent in each fiscal year some earthquake survivors are yet to get first tranche of housing grant while very few households have received full grants. Figure 1: Agreement Amount (US Dollar in Millions) from Agencies Several factors are held responsible to this bitter fact. Because of political Consequently, the reconstruction parties' wrangling from the very beginning on appointing Chief Executive process slowed down. Out of the Officer (CEO) of the NRA, it could not make a concrete follow up with government surveyed 996162 visible and strong plan with the donors Just ahead of ICNR, the then households, 767705 were identified government had appointed NRA's Chief Executive Officer (CEO) by eligible for housing grants, 24991 introducing an ordinance. His appointment could not be endorsed by houses to have retrofitting and as the Parliament within 60 days of promulgating the ordinance as stated in many as 640809 houses were made the law. Thereby, entire post-earthquake reconstruction process went to contract for the housing grant. The hibernation. Major political parties, which were at the loggerhead from number of households to receiving very beginning of its conceptual discussion over whom to appoint CEO first tranche/installment is 620646, of the NRA, made chief executive appointment as prestige issue. This whereas only 80441 households delayed to begin reconstruction works. have received the second instalment of the government's grant and not Soon after the government was changed, NRA act was promulgated by the more than 9,000 households have parliament paving a way to appoint new NRA CEO. This step decreased received the third instalment. the height of the NRA from the expected constituent body to a normal The government data further authority run by the cabinet. The then government appointed another reveals 66595 houses have been CEO, by the time, more than eight months had already elapsed. Despite reconstructed so far and 152935 getting appointed as reconstruction chief, the new CEO was not in a thousands are under construction. position to focus on reconstruction works immediately as expected by This data of progress is much less the general public as the policies and plans were different. The earlier compared to the number of affected CEO had to conduct a detailed damage assessment to get exact number households, that is, 996162. The of earthquake survivors. It took months to complete the assessment and National Reconstruction Authority earthquake survivors rendered homeless continued to stay under makeshift (NRA) has also reported data tents risking their lives. The task of identifying earthquake survivors has related to grievance management. not yet been completed. Accordingly, total grievance registered is 205634. Almost of Next time the government was changed again and the new government them have been reported to have forced the second CEO to resign citing ‘poor performance’ in accelerating made revision by the government. post-earthquake reconstruction government and re-appointed the first

10 Effectiveness of Reconstruction Aid in Nepal Similarly, only 111000 households have applied for second tranche of Grant distribution process is housing reconstruction while 100377 applicants are certified as eligible complex. Reconstruction law has household for the second round of grant (Table 2). a provision to provide first tranche Table 2: Progress on Reconstruction: The Database of housing grant once they are Private Housing Grant Distribution No. recognized as earthquake survivors Household Surveyed 996162 Earthquake survivors get second Eligible for Housing Grants 767705 tranche when foundation of houses Retrofitting Beneficiaries Identified 24991 are laid and engineers deployed to the ground certifies that the Agreement Signed with Beneficiaries 641310 foundation of house is earthquake First Tranche Received 620646 resilient while they receive third Private Housing Reconstruction (Latest Update) tranche after technicians certify Houses Under Construction 152935 that the houses are rebuild as per Houses Constructed 66595 government set standard. Second Tranche Applicants 111000 Approved Second Tranche beneficiaries 100377 Third Tranche Applicants 27128 Approved 3rd tranche beneficiaries 20412 Grievance Management Total Grievance Registered 205634 Total Grievance Reviewed 205584 Grievance Redressed 205584 Human Resource Short Term Training 32479 On the Job Training 13645 Government Building Reconstruction Under Construction 128 Completed 98 Educational Institution Reconstruction Under Construction 1286 Completed 2456 Cultural Heritage Reconstruction Under Construction 111 Completed 61 Health Center Reconstruction Under Construction 119 Completed 252 Community Shelter Reconstruction Under Construction N/A Completed 129 Drinking Water Infrastructure Reconstruction Under Construction 965 Completed 904 Source: http://nra.gov.np/mapdistrict/datavisualization. Effectiveness of Reconstruction Aid in Nepal 11 after one year. If the borrower fails to repay the loan after two years, he or she will be charged the prevailing home loan rate of the respective banks.

2.3 Support to Affected Communities, Complaints and Relocation Issues Initially, the government announced to provide NPR 15,000 as assistance for immediate relief and rescue of the affected households. Then, for reconstruction of the households, NPR 200,000 was announced for Figure 2: Status of Compensation Distribution by NRA (in Number) each household rendered homeless Like housing reconstruction other infrastructures destroyed in earthquake in the earthquake. Later, NPR have also are not up to the peoples’ expectations. 100,000 was added to this amount and total amount of assistance Additionally, the government pledged subsidized loan of maximum NPR reached NPR 300,000. In addition 2.5 million for a household considering that mere housing grant would be to this, the government announced inadequate for completing reconstruction. to provide subsidized loan of maximum NPR 2.5 million for a household considering that mere housing grant would be inadequate for completing reconstruction.

According to NRA, as many as 207,800 complaints are registered demanding beneficiaries’ list. Of the total complaints, 35,000 additional households are recognized as earthquake survivors while others are rejected. It seems this is likely to invite serious complication. Complaints are still coming from the ground. NRA has said that now it will not register complications but will mandate the chiefs of local units in the Figure 3: Status of Compensation Distribution by NRA (%) (Total Identified context of newly elected peoples’ Households: 749796) representatives taking place in all But very nominal people have approached before the state-own banks, earthquake-ravaged districts. This as payback period is very short. Banks have issued only around NPR shows lack of proper investigation 780 million in the one and half years since subsidized loan scheme was capacity within NRA to deal launched (Acharya, 2017). Loan is for a year and it needs to be renewed with the genuine complaints by maintaining standard norms.

12 Effectiveness of Reconstruction Aid in Nepal

xii A total of 662 areas have been identified as to be relocated as per the geo- known as the disaster cycle. The physical study conducted by the NRA. Out of them, 136 areas need to disaster management policies be relocated immediately. Ministry of Urban Development (MUD) has observed in many countries, conducted detail study on 56 of them whereas NRA has conducted on five of including the Nepal Disaster them. Nevertheless, none of the areas have been relocated so far (Figure 4). Response Plan of 2001, focus mainly on physical vulnerabilities; social vulnerabilities are often missing. Consequently, the reconstruction plans implemented after a major disaster also focus mostly on physical recovery and the more visible physical impacts of that disaster and often ignore social recovery (CDPS, 2016).

Recent post-earthquake recon- struction process, according to the experts is slower compared to the Figure 4: Status of Relocation of Vulnerable Settlement past. Despite lack of modern tech- nology, resources and knowledge, NRA blames contractors’ delaying in completing reconstruction projects, the reconstruction after 1890’s unavailability of construction materials and delay in finalizing designs of earthquake in Nepal was completed project and awarding them to contractors as major reasons behind slow within seven months although 70 place reconstruction. Reconstruction of private housing also could not get percent of houses were destroyed at momentum, as bureaucratic hassles unexpectedly slowed housing grant that time. distribution. Lack of human resources, delay in endorsing housing design and awarding contractors are blamed behind slow-paced reconstruction. Like failing to utilize total budget allocated for post-earthquake NRA officials also admit that the housing reconstruction is not taking reconstruction, the government pace as expected as they fail to distribute housing grant to the earthquake announced projects are also survivors. In some cases, there is mismatch regarding sources of budget in limbo. Ma banauchhu mero while delay in releasing budget in context of expiry of fiscal year is also Dharhara’ (I will construct my affecting timely housing reconstruction. NRA CEO Govinda Raj Pokharel Dharhara) is the perfect example said in an interview: to cite here on how government It was easy to identify earthquake survivors and provide first instalment of is neglecting to implement its housing reconstruction. But many people still have not begun works while some own decision. In February 2016, have not approached to us to collect second tranche of housing reconstruction as the government announced ‘I will their newly built houses don’t meet set standard. construct my Dharhara’ amid a grand function. The then prime 2.4 Reconstruction Politics in Public Sector minister KP Sharma Oli provided Disaster management issues are divided into two parts (Arya, 2003): his one month salary to rebuild mitigation, which includes risk analysis, prevention and preparedness, iconic Dharhara on government’s and response, which includes search and rescue, humanitarian assistance, own and called on general public and rehabilitation and reconstruction). Examining each component in to make similar contribution. more detail, reveals that risk analysis includes hazard and vulnerability assessment and risk assessment, prevention includes both structural and The iconic monument, which was non-structural measures; and preparedness includes warning, planning, built in 1832 on the order of queen, and policy. All these elements are included in a cyclic process popularly was destroyed in the powerful

Effectiveness of Reconstruction Aid in Nepal 13 earthquake. Originally Dharahara, also known as Bhimsen Tower, was deprived of getting housing grants. 11-storyed before 1934’s. The earthquake destroyed it and it was reduced Frustrated with the sluggish post- to 9-storyed. Lately, this historic monument was re-opened for general earthquake reconstruction some public and visitors could ascend the tower to view Kathmandu. But it was households have already built fully destroyed in the earthquake killing over a dozen people at the site. houses while poor people are still waiting government grant. 2.4 Factors Responsible for Effective AID Flow Several factors are responsible for the lack of effective aid flow through NRA. The government decisions are not acted in time. Frequent changes in government leadership have also affected post- earthquake reconstruction. Each government hardly completes one-year term in the office due to growing political instability. This has also affected functioning of the reconstruction authority as priorities of each new government differ from previous one. Yet, the NRA lacks full authority to implement its decision. It has to Figure 5: Reconstruction Progress Update fully rely on other line ministries. The bureaucratic hurdles within Many Nepalese take Dharahara (Bhimsen Tower) as a symbol of the ministries have further Kathmandu. Keeping its importance and historic values in mind the complicated the reconstruction then prime minister KP Sharma Oli inaugurated the reconstruction process. process of Dharahara. Over 90 million rupees have been collected for its

reconstruction. But the reconstruction of the iconic tower is yet to begin. Government’s several decisions and announcements made for Recently, Nepal Telecom, the state-own telecommunication company, has post-earthquake reconstruction proposed to rebuild the monuments. The deal, however, has not yet been are left implemented. Apart from sealed after the company demanded that company be let to use Dharahara announcing housing reconstruction premises for next 30 years for business purposes. aid and subsidized loan schemes among others the head of the Rani Pokhari is another example. In January 2016, President Bidhya government had inaugurated Bhandari inaugurated the reconstruction works of Rani Pokhari by laying various reconstruction project as part foundation of a temple amid a grand function. The actual reconstruction of beginning post-reconstruction of the important cultural heritage site is yet to begun. Before starting projects. Unfortunately, actual the reconstruction works of the Balgopaleshwar temple and other reconstruction of these projects is infrastructures over 63 ropanis of land officials are now removing mud yet to begin. Instead, business firms from the pond. Removal of the mud is expected to complete within are clashing on how to hold space of monsoon. Thereby, actual reconstruction work will begin. historic sites and make institutional profit in the name of rebuilding Similarly, housing reconstruction campaign inaugurated in Barpak, quake-destroyed monuments. the epicentre of the earthquake is yet to be materialized. Locals are still

14 Effectiveness of Reconstruction Aid in Nepal Despite huge money pledged by “We spent nearly NPR 2,400,000 though its can arrange rest of international community and to build two-storied building but the the money through its annual two-and-half years elapsed since government has not given us anything budget programs. But the number the devastation most earthquake than first tranche. We borrowed loan of affected households increased survivors are taking shelter from local bank and relatives and and government increased under tent for months. As part of built house on our own,” said Sarbe housing reconstruction aid. rebuilding quake-destroyed houses Tamang of Chautara, Kavre. Further, inflation also made the reconstruction works costlier. This and infrastructures, the government His houses’ foundation stone was is increased funding gap. allocates billions of money in each laid by the then PM KP Oli as a part of fiscal year. The allocated budget, beginning housing reconstruction The NRA is consulting with however, was never fully utilized. in earthquake-hit areas. But the international donors i.e. ADB family is yet to shift to home from and JICA in view of arranging More than 27 billion remain the makeshift house. “Finishing of inadequate budget but it is not unspent in fiscal year 2073-74 the house is yet to be completed,” clear whether the donors, which (2016/17) as the NRA could not said Sarbe. Sarbe, a bus driver, has had already contributed for borrowed over NPR20, 000 from spend the budget allocated for rebuilding quake damaged houses local bank following municipality reconstruction purposes. The and infrastructures in Nepal. asked the former to arrange money Authority was mandated to spend According to government officials, for rebuilding house inaugurated NPR 76 billion for fiscal year 2073- post-earthquake reconstruction as a part of housing grant. Other 04 (2016/17) but it was successful works are being costlier as survivors are yet to begin housing to channelize only 49 billion until estimated by the government reconstruction although they because both the administrative end of mid-July, the end of fiscal receive NPR 50,000 as first tranche. year. Of the total expenditure cost and grant for earthquake NPR 35 billion was spent under 2.6 Sectoral Funding Gap reconstruction has increased significantly as the reconstruction housing reconstruction said NRA Initially, it was expected that process turned sluggish. Spokesperson Yam Lal Bhoosal reconstruction cost will stand around NPR 938 billion to complete The pledged money remains 2.5 Reality of Aid post-disaster reconstruction works. unspent so far at a time when Effectiveness: A Case to Thirty-four international donors had thousands of quake survivors are pledged $4.1 billion to rebuild houses Cite taking shelter under temporary and infrastructures destroyed in shelters as justified by Figure 6. Quake-survivors say they are not the earthquake and government in a position to rebuild houses right now arguing that housing reconstruction grant is too little and the provision of providing it in phase are put them in a fix. Interviewed earthquake survivors in Sidhupalchowk said they have already spent grant without laying foundations of houses. The grant, according to them, was distributed just before of Dashain and Tihar and they spent it celebrating the festivals. They spent money, as they believe the money is not adequate to rebuild quake-destroyed houses.

Figure 6: Funding Gap across Major Sectors (in NPR. Billion) Source: NRA (2017).

Effectiveness of Reconstruction Aid in Nepal 15 2.7 Initiatives from resistant shelters have been prepared by Central Level Project 8 Non-government Sector completed and an additional 103 Implementation Unit. have begun construction. World According to the NRA Officials, Renew is also helping to rehabilitate According to news report Save a total of 24 INGOs pledged to and develop the livelihoods of the Children constructed 18-semi spend 44.88 billion rupees for community members who depend parameter structures for Health constructing 21,000 houses, health on agriculture to survive5.The Posts in various village of Gorkha, offices and schools in earthquake- organization has proposed NPR 240 Nuwakot, Rasuwa, Dolakha affected districts4. As of now 5992 million for completing the housing and Sindhupalchwok but the houses have been constructed in reconstruction project while 40 organizations has not approved the quake-affected districts. million rupees was already 6spent. building design of Health Posts. The pace of I/NGOs involved in American Medical Foundation, Some initiatives like. Dhrumus housing reconstruction is also not which constructed 11 Health Suntali Foundation have already so faster than the government. They Posts in various Sindhupalchwok, constructed an integrated settlement are also struggling to meet their is also accused of building health (65 houses) in Giranchaur of own targets. For example Malteser institutions without building Sindhupalchok. Earlier, the International, which had received design approval. Primary Health foundation had constructed similar approval letter of constructing Care Cooperation constructed settlement in Kavre targeting 255 houses in Panchakanya Rural by USAID and 12 Health Posts backward Pahari community. Municipality of Nuwakot has constructed by Karuna Foundation constructed only 17 houses. World Officials at the NRA and Social are also found to have building Renew had pledged to rebuild Welfare Council admit I/NGOs health infrastructures before 285 houses in Manakamana of are also lagging behind schedule housing design approval. Nuwakot. So far, it has constructed in terms of completing post- 103 houses. earthquake reconstruction works. The pace of I/NGOs is slow in Gorkha, the epicentre of earthquake Similarly, Helvetas, which had “They have also some issues as well, says government officials. planned to construct 912 houses such as lack of human resources Apart from Non Resident Nepali in Dabachaur, Helambu, Ichok, and coordination with the local (NRN) who has taken responsibility Kiwool, Mahankal, Melamchi communities. That’s why they to construct a model settlement at and Palchowk of Sindhupalchok have not been able to work as it 7 Laprak of the district, other three has succeeded to construct was expected,” . organizations had been tasked with only 242 houses. (See details I/NGOs have been reconstructing constructing 610 houses in the of progress made by I/NGOs in houses in accordance with district. reconstruction.) By going through their commitment although the details of I/NGOs involved reconstruction pace is slow. Some In Choprak, Muchchowk and in housing reconstruction are far media, however, have accused I/ Palungtar areas, INF Nepal had behind in terms of implementing NGOs of flouting reconstruction taken responsibility to construct their targets. guidelines and spending million 105 houses for quake survivors on ‘luxuries’ and procuring having disabilities. So far, the Some INGOs have funded local vehicles for office while working organization has only distributed partners while some are engaged in in earthquake-affected districts. second tranche of housing grant reconstruction on their own. Some For example only two health posts to 27 quake survivors only. The of the organizations have been out of 67 health posts and other INGO said they are in process of found reducing the number of health institutions constructed or distributing the grant to 15 more houses which they had previously being constructed by 10 INGOs families. However, those families pledged with the Authority. World were found to have approved have not even laid foundation of Renew had planned to construct 332 housing design before carrying out their home. houses. So far, 131 new earthquake construction, according to a report 8 Sangraula Sangeet, Republica, Various I/NGOs building health 4 Interview with Bishnu Poudel, an official at Policy Moni- posts flouting reconstruction guidelines, Jan 26, 2017 toring and Development Cooperation Coordination Section 5 https://worldrenew.net/nepalearthquake (Retrieved 6 December 2017). under the NRA in an interview. 6 BBC Nepali Service report

7 Based on interview with then CEO Dr. Govinda Raj Pokharel. 16 Effectiveness of Reconstruction Aid in Nepal A year ago, the NGO had signed The government urged private Completing housing reconst- contract with NRA to construct sector to focus on permanent ruction grant within the set 26 houses in Muchowk, three in housing after early recovery work deadline seems a tall order while Palungtar and 75 in Choprak. was over and it stopped building many fear whether those survivors However, the District Coordination temporary shelter. Citing the from marginalized communities Committee (DCC) said they are government instruction the and deprived of getting legal not aware that even one house has Foundation stopped the temporary documents like citizenship and been reconstructed so far. None shelter construction process. Now, land owners’ certificate deprive of the quake survivors there have the Foundation is focused on from grant. received the third tranche of the building permanent housing for housing grant. Reconstruction earthquake survivors As part of Yet, the government the government works have not been able to permanent housing construction has allocated NPR 146.18 billion for progress in lack of the third seventy houses are being built the post-earthquake reconstruction tranche. Sitaram Shrestha, a local of in Sindhupalchok in first. The and rehabilitation programs to be Siranchowk Rural Municipality-5, foundation said construction of spent through NRA in addition said he has laid foundation to his permanent housing process will be to the programs implemented by house, but it has so far failed to continued even in coming days10. related ministries. It is not clear make progress in lack of the grant. how the government arranges The Foundation has constructed inadequate fund for reconstruction Sahas Nepal, Save the Children, 40 schools in 12 quake-affected and meets its challenging deadline. Lutheran World Relief, NRN districts. Politics has overshadowed among other organizations too reconstructions. Bureaucrats have Grant distribution process is have delayed the reconstruction taken it as additional burden complex. Reconstruction law has works in the district. Local instead of giving utmost priority a provision to provide first tranche Development Officer (LDO)to rebuilding of houses and other of housing grant once they are Narayan Acharya said NGOs/ infrastructures destroyed in the recognized as earthquake survivors by INGOs have been making progress earthquake. Not surprisingly, the local reconstruction authorities. in reconstruction works in slower bureaucrats are taking the urgency Earthquake survivors get second pace than that of the government. of reconstruction as usual work. tranche when foundations of houses INGOs, however, have accused That’s why money allotted for are laid and engineers deployed to the the bureaucrats of seeking “bribe” reconstruction remains unspent ground certifies that the foundation to get their projects approved and while needy people are forced to take of is earthquake resilient while third monitored. Around six percent shelter under the makeshift tents. tranche only after technicians certify of the total project budget was that the house is rebuild as per sought from the INGOs9. Like 2.8 Challenging Cut-off government set standard. government and I/NGOs various Deadline business firms have also expressed Following criticism for delay in These sort of bureaucratic hassles have their interests in supporting in accelerating post-earthquake largely affected the reconstruction reconstruction as part of their reconstruction the Authority works. Consequently, only 77,831 social corporate responsibility. has set mid-July of 2018 as the households have applied for second cut-off-date for the distribution tranche of housing reconstruction Chaudhary Foundation had for all the remaining quake while 65,315 applicants are committed to construct 10000 reconstruction grants. The last date certified as eligible household transitional shelters for earthquake for reconstruction has been set at for the second round of grant. survivors It constructed 3000 a time when post-reconstruction Only 5,159 have received second shelters in the state of early works are already delayed tranche of housing reconstruction recovery phase. The foundation and survivors are criticizing and third tranche to 2,590. blames government for the delay. sluggish reconstruction process. 9 Pete Pattisson, recordnepal.com, INGOs paying Nepal government

hundreds of thousands of dollar to approve projects 10 Interview with a senior CF foundation official

Effectiveness of Reconstruction Aid in Nepal 17 SECTION 3 Lessons and Recommendations 3.1 Lessons Learnt Almost two-and-half years have have faced lots of difficulties and passed and the National Recons- their right to live dignified life has truction Authority is still busy in been compromised for more than identifying earthquake survivors. two years Post-earthquake reconstruction is The survivors have neither received not up to the survivors’ expectation money nor technicians have been Politicization is visible in post- deployed fully in villages to support earthquake reconstruction. The in building earthquake resilient legitimacy of NRA as a nodal agency houses where as the government for post reconstruction has not been budget unspent in each fiscal recognised by line ministries and year.. Key political agendas i.e. therefore coordination with them promulgation of constitution has been a challenge. economic blockade, elections and The international community has intra-party disputes and repeated lived up to the pledge committed government change have put the to support the reconstruction issue of reconstruction on abeyance during the Donor Conference in and gradually faded away from the 2015. To illustrate neighbouring government priorities. Had it not countries like India, who had been for the media and civil society pledged the largest amount, One organisations constant vigilance Billion USD, is yet to transfer the on the issue, post-earthquake fund. Therefore, it is important reconstruction would have been at that the government engage with crossroad. donors and diplomatically where National Reconstruction Authority by NRA can act as a bridge between fell prey to the politics, despite the two. demand for the establishment of a

Aid in Nepal The verification of earthquake powerful National Reconstruction survivors has not yet been complied. Authority, the frequent changes Altogether 594150 households of CEO with almost every change have received first tranche of of government. The NRA also housing reconstruction grant remained a weak entity dominated out of total 749796 households by bureaucracy. A powerful identified as earthquake survivors. . Reconstruction Authority with Among them, it has signed housing constitutional mandate and grant agreement with 628822 power only can carry out the households while only 594150 reconstruction, reaching directly households have received first to the most affected and deserving tranche of housing reconstruction. communities.

Commitments made by the Within this structure too, the government, I/NGOs and private government should be able to sectors have not been found fully nullify the existing discriminatory

Effectiveness of Reconstruction translated into practice. This has laws and policies through forced thousands of households to special measures in view of the live under makeshift tents. Survivors participation in the reconstruction

18 Effectiveness of Reconstruction Aid in Nepal policies and programmes for compromising and not taking it maintaining standard indicated Dalit, Women, Children, Youth, as a burden. by the government in recon- Adolescents, Landless, Tenants, structing their house and involve Persons with Disability, Third • Local levels through elected in regular campaign to make Gender, Sexual Minorities. peoples’ representatives to take reconstruction a priority of all. up the reconstruction issues in Civil society needs their continuous their policies and programmes To non-government and effort for monitoring of the with utmost priority. Their private sector reconstruction with regards to the role is vital in verification humanitarian and developmental of earthquake survivors by Translating commitment into activities carried out by the establishing a separate unit on practice by maintaining government, non-government and complain hearing and assuring transparency and governance in private sector. justice for the genuine survivors. reconstruction activities. Their contribution made in the field 3.2 Recommendations • Ensure knowledgeable expertise of reconstruction and lapses and trained technicians at the should be publicized among To the Government/NRA local level for reconstruction survivors. Also, the Authority works. must assure survivors through • Facilitating as a bridge to maintain exemplifying initiatives how • Ensure dignified life of the diplomatic relation and make the reconstruction is possible in survivors addressing their problems. a continuous follow up with stipulated time. the international community for channelizing pledged fund • For this all, the much awaited • Providing technical assistance for the sake of the earthquake and long-pending Disaster in their working areas through survivors and reconstruction of Management Bill is endorsed and skill based trainings in public institutions. its full implementation plan needs accordance with the standard to be made public at the earliest. set by the Authority. This • Frequent public audits among will help them to reconstruct the stakeholders in quake To the Political parties houses and get the government hit areas/districts focusing announced grants in time. progresses made, problems faced • Political commitment for and coordination issues and powerful autonomous National areas sought by the authority. Reconstruction Authority and end politicization on reconstruction • Housing grants for earthquake works. Political parties should survivors should be ensured led the reconstruction initiative without further delay so that together with multistakeholders they could begin long-delayed for integrated reconstruction hosing reconstruction. campaign.

• As a long term strategy to make • Political negotiation with the the NRA a powerful body with international community including constitutional capacity and India and other donors to sign for the immediate cause, to the aid agreement as committed implement reconstruction projects in the ICNR and explore other by creating momentum in possible options to ensure coordination with line ministries. adequate fund for reconstruction.

• Line ministries to prioritise • Creating motivation among reconstruction works without the survivors for the need of

Effectiveness of Reconstruction Aid in Nepal 19 Works Cited

Acharya, P.R. (2017). No takers for central bank’s two-year concessional home loan. The Himalayan Times. 30 July 2017.

Central Department of Population Studies (CDPS) 2016. Nepal earthquake 2015: socio-demographic impacts study (with reference to 14 most affected districts). Kathmandu: CDPS.

Humanitarian Accountability Monitoring Initiative (HAMI) (2017). Peoples caravan on reconstruction and recovery. Kathmandu: HAMI.

International Monitoring Fund (IMF) (2015). Request for disbursement under the rapid credit facility— staff report; press release; and statement by the executive director for Nepal. https://www. imf.org/external/pubs/ft/scr/2015/cr15224.pdf. Retrieved 6 October 2017.

National Planning Commission (NPC) (2015). Nepal earthquake post disaster needs assessment. Kathmandu: NPC.

National Reconstruction Authority (NRA) (2017). Reconstruction Update.

http://nra.gov.np/mapdistrict/datavisualization.

NRA (2017). Presentation by NRA at the parliamentary development committee regarding post-earthquake reconstruction on 19 July 2015.

OECD (2005). The Paris Declaration on Aid Effectiveness. http://www.oecd.org/dac/ effectiveness/34428351.pdf. Retrieved 10 October 2017.

OECD (2008). Accra Agenda for Action. http://www.oecd.org/dac/effectiveness/34428351.pdf. Retrieved 10 October 2017.

20 Effectiveness of Reconstruction Aid in Nepal Effectiveness of Reconstruction Aid in Nepal 21 Humanitarian Accountability Monitoring Initiative (HAMI) Sanepa, Lalitpur PO Box No. 20842, Kathmandu Tel: 977-1-5548321, 5548040, Fax: 977-1-5549093 Email: [email protected], Website:www.hami.org.np

22 Effectiveness of Reconstruction Aid in Nepal