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NEPAL: Strengthening Municipalities for Urban Service Delivery (Financed by the TA Special Funds)

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NEPAL: Strengthening Municipalities for Urban Service Delivery (Financed by the TA Special Funds) Technical Assistance Consultant’s Report Project Number: 42161 April 2014 NEPAL: Strengthening Municipalities for Urban Service Delivery (Financed by the TA Special Funds) Prepared by :Cowater International Inc. In association with: Innovative Solutions PVT. LTd. For: Ministry of Physical Infrastructure and Transport Ministry of Federal Affairs and Local Development (MoFALD) Formerly Ministry of Local Development) and Ministry of Physical Planning and Works) Through the Department of Urban Development and Building Construction. This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. FINAL REPORT Strengthening Municipalities for Urban Service Delivery ADB TA 7982-NEP Prepared for: Government of Nepal Asian Development Bank Prepared by: Cowater International Inc. In association with: Innovative Solutions Pvt. Ltd. PP Pradhan & Co. April 2014 ADB TA 7982-NEP: Strengthening Municipalities for Urban Service Delivery i Final Report – April 2014 TABLE OF CONTENTS Acronyms .......................................................................................................................... ii Executive Summary .......................................................................................................... 1 1.1 Main Outputs & Performance Measurement ......................................................... 2 1.2 Improvement of Financial Management Systems (100) ........................................ 9 1.3 Strengthening Urban Planning (200) .................................................................. 10 1.4 GIS-based Mapping (300) .................................................................................. 12 Improvement of Financial Management Systems (100) ............................................... 14 2.1 Activities Undertaken and Results Achieved ....................................................... 14 Strengthening Urban Planning (200) ............................................................................. 31 3.1 Activities Undertaken and Results Achieved ....................................................... 31 GIS-based Mapping (300) ............................................................................................... 37 4.1 Activities Undertaken and Results Achieved ....................................................... 37 Challenges Faced and Mitigation measures adopted .................................................. 41 Assessment of Achievements & Follow-up Recommendations to Achieve Sustainability ............................................................................................................. 43 Annex A: Reports, Manuals and Handouts Produced by SMUSDP ........................... A-1 Annex B: Approval of Building & Planning Bylaws .................................................... B-1 Annex C: Dharan Land Use Zone Map ......................................................................... C-1 Annex D: Siddharthanagar Land Use Zone Map ......................................................... D-1 Annex E: Nepalgunj Land Use Zone Map .................................................................... E-1 Annex F: Janakpur Land Use Zone Map ..................................................................... F-1 Annex G: Introduction to SMUSDP’s GIS-based Municipal Information System (G-MIS) .................................................................................................................................. G-1 LIST OF TABLES AND FIGURES Table 1 : SMUSDP Performance Monitoring Framework (PMF) .......................................... 3 Table 2 : Scope of CFMIP Implementation Action Plan ..................................................... 14 Table 3: Status of CFMIP Action Plan Implementation to date .......................................... 15 Table 4: Levels of Computerization by Municipality ........................................................... 15 Table 5: Expected outputs and achievements of capacity development plan .................... 17 Table 6: Achievements in the Implementation of CFMIP ................................................... 19 Table 7: Advances Settled by Municipality ........................................................................ 19 Table 8: Results of Improvements to Shangrila Software .................................................. 22 Table 9: Aggregate Assessment of On the Job Training ................................................... 23 Table 10: Assessment of Structured Training .................................................................... 24 Table 11: OJT Benefits and Achievements ....................................................................... 24 Table 12: Submission of IA Reports by Municipality .......................................................... 26 Table 13: House and Land Parcel Data ............................................................................ 28 Table 14: Increase in the Own Source Revenue ............................................................... 30 Table 15: Summary of Building Code/Bylaw Assessment (April 2012) .............................. 31 ADB TA 7982-NEP: Strengthening Municipalities for Urban Service Delivery ii Final Report – April 2014 ACRONYMS ADB Asian Development Bank BB Building Bylaw BPB Building and Planning Bylaws CFMIP Comprehensive Financial Management Improvement Plan DTCO District Treasury and Accounts Controlling Office DUDBC Department of Urban Development and Building Construction EA Executing Agency EO Executive Officer FAR Floor Area Ratio FCGO Financial Comptroller General Office GIS Geographic Information System GoN Government of Nepal GMIS GIS-based Municipal Information System IPT Integrated Property Tax ISMP Institutional Strengthening of Municipalities Project IT Information Technology KMC Kathmandu Metropolitan City LBFAR Local Body (Financial Administration) Regulation LGCDP Local Governance Capacity Development Program LRDBMS Land Registration Database Management System LSGA Local Self Governance Acts (2056/1999) LSGR Local Self Governance Regulations MC Minimum Condition (from MCPMs) MCPM Minimum Condition and Performance Measures MFP Municipal Focal Person MLRM Ministry of Land Reform and Management MoFALD Ministry of Federal Affairs and Local Development MoUD Ministry of Urban Development MRT Mandatory Rule of Thumb NBC National Building Code NGO Non-governmental organization NSET National Society for Earthquake Technology OAG Office of the Auditor General O&M Operation and maintenance OJT On-the-job training PP Periodic Plan PPTA Project Preparatory Technical Assistance PSC Project Steering Committee ROW Right-of-way ST Structured training (classroom-based) SES Socio-economic survey SMS Shangrila Micro System STIUEIP Secondary Towns Integrated Urban Environmental Improvement Project SMUSDP Strengthening Municipalities for Urban Service Delivery Project (TA 7982-NEP) TA Technical Assistance TOR Terms of reference ADB TA 7982-NEP: Strengthening Municipalities for Urban Service Delivery 1 Final Report – April 2014 EXECUTIVE SUMMARY 1. This document constitutes the Final Report for ADB TA 7982-NEP: ‘Strengthening Municipalities for Urban Service Delivery (SMUSD)’. The report describes the inputs provided by the Consultant (Cowater International Inc. (Cowater)) in order to achieve the project’s desired outputs and outcomes over the course of its two-year lifespan. 2. SMUSD revolved around three main components: 1) Improving municipal financial management systems, including revenue enhancement; 2) Strengthened the technical capacity of municipal staff to manage and improve their urban planning practices; and 3) Building capacity of municipal staff to institutionalize GIS-based mapping and to use this technology to support taxation and urban service delivery. 3. Through these three components the TA sought, at the level of overall impact, stronger institutional capacity for four municipalities: Dharan; Janakpur; Nepalgunj; and Siddharthanagar. At the ultimate outcome level, it sought to improve financial management and strengthen urban planning for Dharan, Janakpur, Nepalgunj and Siddharthanagar. Its achievements vis-à-vis these overall objectives and those at the outcome level are illustrated in the accompanying performance measurement framework. (Table 1). 4. Building on earlier financial management planning support provided by the ADB CDTA 7355- NEP: Institutional Strengthening of Municipalities Project (ISMP), SMUSD provided financial management implementation and other related technical assistance in support of the much larger infrastructure based Integrated Urban Development Project (IUDP) directed towards the same four municipalities. 5. The Consultant’s team was led by a national Team Leader and Deputy Team Leader and was composed of an additional two international and four national sector specialists. The core Kathmandu-based team worked together with the Consultant’s headquarters staff in Canada, and various local subcontractors and resource people to complete the project’s deliverables. ADB TA 7982-NEP: Strengthening Municipalities for Urban Service Delivery 2 Final Report – April 2014 1.1 Main Outputs & Performance Measurement 6. The main outputs of this project are summarized as follows: a. Detailed action plan (Comprehensive Financial Management
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