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Newsletter Backup.Indd Government of Nepal, Ministry of Finance I E C C D Newsletter International Economic Cooperation Coordination Division (IECCD) JUL - AUG 2013 2070 BHADRA VOLUME 1, ISSUE 5 Consultation Meeting on New Foreign Aid Policy Held Ministry of Finance organized a high-level consultation meeting to further revise the draft Foreign Aid Policy on 13 August 2013. The consultation meeting was given high priority as was chaired and moderated by Hon. Finance Minister Shankar Prasad Koirala himself. Finance Secretary Mr. Shanta Raj Subedi welcomed the participants. He brought the participants back to the year 2009, when the first policy draft was prepared and put to the several rounds of discussions including with the donors community. Mr. Subedi urged the participants to provide sector-specific feed-back on Hon. Finance Minister, Finance Secretary and IECCD Chief basis of implementation experiences to enrich the policy NRB Governor Mr. Yubaraj Khatiwada, Foreign Affairs document. Mr. Madhu Kumar Marasini, Joint Secretary, Secretary Mr. Arjun Thapa, MOI Secretary Mr. Krishna International Economic Cooperation Coordination Gyawali, Chief of National Vigilance Center Mr. Division presented the major highlights of the draft Madhab Prasad Regmi, NPC Secretary Mr. Yubaraj policy as a basis for discussion. Sketching policy Bhusal, Secretary to the Commission for Water and framework followed by policy contents and strategies, Energy Dr. Krishna Chandra Poudel, Education Secretary he focused on major policy shifts. He further emphasized Mr. Narayan Malegu, Labor and Employment Secretary on development effectiveness that is what the policy Mr. Suresh Man Shrestha, Joint Secretary Mr. Lal wants to achieve. Shanker Ghimire from the Office of the Prime Minister and Council of Ministers were some to name, Contd P. 5 Message from the Chief Editor 2 India Agrees to Provide Japan Extends Support to the Constituent Assembly Election 3 Support for Election in Nepal World Bank Extends Support to Various The Government of 3 Projects/Programs India has agreed ADB QCPRM Meeting 3 to provide 764 vehicles to Nepal The GoN and the WB Hold First Trimester Portfolio 4 Review Meeting for the purpose of the upcoming NPPR Second Review Meeting Concluded 4 Constituent ADB Extends Support to SDP 5 A s s e m b l y Agreement with ADB 6 (CA) election. Two different Finance Secretary Mr. Shanta Raj Subedi Agreements with WB 6 and Indian Ambassador to Nepal Mr. Jayant Agreement with Switzerland 7 agreements to Prasad after signing the Agreement in the presence of Rt. Hon. Chairman of Interim Inside this issue: provide the vehicles GEF Workshop on Biodiversity and Land 7 Government, Hon. Finance Minister, Hon. Degradation Conducted were signed at the Indian External Affairs Minister and other Offi ce of Prime offi cials Result Based Management Training in Biratnagar 8 Minister and Council of Ministers in the presence of Rt. Hon. Foreign Aid Commitment 8 Khil Raj Regmi, Chairman, Interim Government and Hon. AMP Training for INGO 8 Indian Minister of External Affairs Mr. Salman Khurshid on Uganda AMP Team Visits Nepal 8 July 09, 2013. Contd 8 1 Message from the Chief Editor It is evident that Nepal is undergoing the process of all-out transformation of the society amid persistent gap of resources and knowledge. To fulfi ll this gap, Nepal needs to continue with the external resources mobilization for fi nancing, sustaining and institutionalizing the development activities as well as their outcomes. Development effectiveness in line with home-grown development plan and policy is a must to cause impacts on lives of the people. Obviously, policy formulation is a time-consuming task. We have long been working hard for a consensual Foreign Aid Policy document in hand. The existing Foreign Aid Policy, 2002 has defi nitely been providing insights not only for maintaining quality and consistency in aid related Government of Nepal decision making but in revelation of the Government’s stances on priority, Ministry of Finance quality and modality of external resources mobilization, so far. Besides, it has supplemented the implementation of the then 10th and subsequent International Economic periodic plans. Cooperation Coordination Our deep-rooted desires for owning and leading our own development Division (IECCD) processes have further been surfaced after we have become signatory Singhadurbar, Kathmandu to the international resolves, started from Rome through Paris and Accra to Busan, for aid and development effectiveness. We have been noticing the similar concerns on part of our development partners. Findings of Patron: monitoring and evaluation of the aid effectiveness initiatives on both Shanta Raj Subedi global and local levels have added new dynamics leaving the existing policy document far behind. Many more new and revolutionary principles Chief Editor: are found standing on queue to be customized and internalized through Madhu Kumar Marasini appropriate policy instrument. The Approach Paper for 13th plan and the Budget Speech 2013/14 have also made commitment to produce Coordinator: a revised and updated Foreign Aid Policy(FAP) by the end of this Fiscal Narayan Dhakal Year. Contributors: Bhuban Karki, Hari Prasad Pandey, Kailash At this backdrop, Ministry of Finance has been working on to bring a new Pokharel, Lal Bahadur Khatri, Shyam Nidhi Foreign Aid Policy that refl ects the emerging aid dynamics in it and also Tiwari, Tara Prasad Sapkota, Tek Bahadur caters the need for country led effective aid mobilization. An outline of Khatri & all members of IECCD Team the same has been already shared with the development partners in the local donors meeting held in April 30, 2013. The IECCD team has recently Editor: organized high-level interaction in the Ministry of Finance on August 29, Hari Prasad Sharma 2013, with the team of National Planning Commission and with all the secretaries of the Government of Nepal. The feedbacks received from Facilitator: the participants have been incorporated in the new FAP as far as they Tilak Man Singh Bhandari are meritorious. Now we are aiming to circulate a complete draft of the new FAP, most likely in a new nomenclature, in the next local donors Layout & Design: meeting. Despite the Country being election-focused, Ministry of Finance Shyam Mani Ghimire is confi dent on the fact that the reform and development is a continuous process and cannot wait until politics gets stabilized. http://www.mof.gov.np We expect that all the stakeholders in the country will provide strong back- http://www.mof.gov.np/ieccd up for promulgation of new aid policy. We are thankful to the respected Government Secretaries and high level offi cials for their valued inputs. As we are still in the consultation process, we will be more than happy to For Comments and Suggestions receive more suggestions on the draft from our respected readers. Email: [email protected] Thank you! 2 Japan Extends Support to the Constituent Assembly Election The Government of Japan has decided to extend a grant between His up to one hundred and forty-nine million Japanese Yen Excellency Mr. (¥149,000,000), equivalent to Nepalese Rupees one Kunio Takahashi, hundred and forty-two million, one hundred and forty- Ambassador of Japan six thousand (NRs.142,146,000), for the execution of the to Nepal, and Mr. Project for Assistance to the Constituent Assembly Election. Shanta Raj Subedi, This grant assistance will be used for the procurement of Secretary, Ministry election related materials for the Constituent Assembly of Finance, on behalf From Left: H. E. Kunio Takahashi, (CA) Election such as security seals, ballot-box stickers and of their respective Ambassador of Japan to Nepal and others. Governments, on 24 Finance Secretary Mr. Subedi July 2013 at the Ministry of Finance, Nepal. Contd 7 The Notes to this effect were signed and exchanged World Bank Extends Support to Various Projects/Programs The International Development Association (IDA) of the Three separate agreements in this regard were signed by World Bank Group has agreed to provide US$ 207.26 Mr. Shanta Raj Subedi, Finance Secretary of the Ministry million (Equivalent to NRs. 19922 million) assistance to the of Finance on behalf of the Government of Nepal and Government of Nepal. The total assistance comprises of by Ms. Tahseen Sayed, Country Manager for Nepal on US$ 125 million as grant assistance and US$ 82.26 million behalf of the World Bank, on July 8, 2013. as loan assistance. Out of the total assistance, US$ 100 million (equivalent to NRs. 9612 million) will be used for the SSRP, a seven-year (2010-2016) strategic program of the ongoing implementation of School Sector Reform Program Government of Nepal has been fi nanced by development (SSRP); US$ 80 million (equivalent to NRs. 7690 million) partners under the concept of SWAPs. The SSRP aims at grant for Poverty Alleviation Fund II and US$ 27.26 million enabling all children to complete a high quality school (equivalent to NRs. 2620 million) loan for Kali Gandaki A education up to 12 grades by focusing on strategic Hydropower Plant Rehabilitation Project. interventions and new reform initiatives to Contd P. 8 ADB QCPRM Meeting The Country Portfolio Review Meeting for the second quarter of 2013 was organized in the Ministry of Finance on 1 July 2013. The meeting particularly reviewed and discussed the overall performance and implementation status of ADB supported projects in Nepal. The meeting was chaired by Mr. Shanta Raj Subedi, Finance Secretary and co-chaired by Mr. Kenichi Yokoyama, Country Director of Asian Meeting Floor Development Bank. on portfolio performance and key project issues was made by Mr. Priyantha Wijayatunga, Head, Portfolio While delivering their opening remarks Mr. Subedi and Management Unit, NRM, ADB. The comprehensive Mr. Yokoyama focused on the need and importance discussion and the way forward for seven actual to continue the review process.
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