Purnima: UK Support to Post- Earthquake Recovery in Nepal Mott MacDonald Sanepa Lalitpur Nepal mottmac.com Purnima: UK Support to Post- Earthquake Recovery in Nepal Assessment of Economic Inclusion Opportunities for Vulnerable Groups (Challenge Fund-Leave No One Behind) DFID 389785 OA4-TOR6 A D:\Kiran\MM\3. Assessment of EI Opportunity for vulnerable groups\6. Final Study Report\Assessment of Economic Inclusion Opportunities - final draft report - July 2020.docx Mott MacDonald April 2020 Mott MacDonald Ltd, Nepal Branch, Post Box No. 3761, Kathmandu, Nepal. Registered no. 176230/074/075. Issue and Revision Record Revision Date Originator Checker Approver Description May SRI HW SEH 2020 KW Information class: Standard This document is issued for the party which commissioned it and for specific purposes connected with the above-captioned project only. It should not be relied upon by any other party or used for any other purpose. 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T his disclaim er and any issues, disputes or cl aims arising out of or in connection wi th it (whether contractual or non-contractual i n natur e such as cl aims i n tort, from br each of statute or regul ati on or otherwise) shall be governed by, and co nstr ued i n accordance with, the law s of Engl and and W ales to the exclusion of all conflict of l aws principles and r ules. All disputes or claims arising out of or r elati ng to this discl aimer shall be subject to the excl usive jurisdicti on of the English and Welsh courts to w hich the parties irrevocably submit. Disclaimer: Purnima commissioned an assessment on Economic inclusion opportunities for Vulnerable people to understand the effectiveness of sub-projects especially livelihood and economic empowerment component of Output Area 4. The finding of the assessment is also expected to inform sufficiently to develop and adapt economic empowerment activities in the expansion of in 2nd phase of Palikas. This report is the product of that assessment, which was carried out by a group of independent consultants, managed by Sustainable and Resilient Ideas Pvt. Ltd. (SRI). The opinions expressed in this publication are those of the Researchers. They do not, in any way, reflect the opinions or views of DFID or Mott MacDonald or Purnima. i Assessment of Economic Inclusion Opportunities for Vulnerable Groups Purnima Challenge Fund – Leave No One Behind Assessment Conducted By: Sustainable and Resilient Ideas Pvt. Ltd. (SRI), Mahalaxmi Municipality-5, Lalitpur, Nepal, Email: [email protected] Assessment Team: Mr. Nahakul K.C., Team Leader Dr. Dadhi Adhikari, Economist Dr. Tek Bahadur Gurung, Sustainable Livelihood/Pocket Area Dev. Expert Mrs. Kalpana Sharma Mishra, Gender and Social Inclusion Expert Mr. Pratap Jung Rai, IT and Research and Development Expert Mr. Samrat K.C., Field Researcher Mr. Arjun Ghimire, Field Researcher Mr. Shreedhar Khanal, Field Researcher ii List of Abbreviations ADB Asian Development Bank CARDSN Community & Rural Development Society Nepal CF Challenge Fund CNI Confederation of Nepalese Industries CNDRC Central Natural Disaster Relief Committee DfID Department for International Development EIB European Investment Bank FGD Focus Group Discussion GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GoN Government of Nepal IDPs Internally Displaced Persons KII Key Informant Interview NRA National Reconstruction Authority LNOB Leave No-One Behind PDNA Post Disaster Needs Assessment PDRF Post Disaster Recovery Framework POs Partner Organizations PWD Persons Living with Disabilities UP Ultra-Poor UPHHs Extremely poor and food insecure people especially from remote areas USAID United States Agency for International Development SRI Sustainable and Resilient Ideas Pvt. Ltd SW Vulnerable single women VGs Vulnerable Groups WFP World Food Programme YTBR Yet to be reached iii Table of Contents List of Abbreviations iii Table of Contents iv List of Figures vii List of Tables viii 1 Introduction 1 1.1 Nepal Earthquake 2015: From Rescue and Relief to Recovery and Reconstruction1 1.2 UK Support to Post-Earthquake Recovery and Purnima 2 1.3 The Challenge Fund to Leave No One Behind (Output 4) 3 1.4 Rationale for this Economic Inclusion Study 4 1.5 Objectives of the Assessment 5 2 Methodology 6 2.1 Approach and Method 6 2.2 Desk Reviews 6 2.3 Field Visit 7 2.3.1 Local economy of project districts 9 2.3.2 Market opportunities for production/skill-based work 9 2.3.3 Supply and value chains 9 2.3.4 Policy and institutional environment at local level 10 2.4 Design for Data Analysis and Interpretations 10 3 Findings and Discussions 12 3.1 Vulnerability context of project areas 12 3.2 Overall assessment of components in relation to Economic Inclusion 15 3.3 Status of ‘EI/Livelihood activities’ and ‘Types of support’ 18 3.3.1 Appropriacy 18 3.3.2 Effectiveness 19 3.3.3 Viability 19 3.3.4 Sustainability 19 3.4 Status of ‘EI/Livelihood activities’ and ‘Types of support’ delivered by CDC 19 3.4.1 Descriptive statements 19 3.4.2 Appropriacy, effectiveness, viability and sustainability 23 3.4.3 Robustness analysis of EI interventions strategies of CDC 23 3.5 Status of ‘EI/Livelihood activities’ and ‘Types of support’ delivered by DCA 24 3.5.1 Descriptive statements 24 3.5.2 Appropriacy, effectiveness, viability and sustainability 28 3.5.3 Robustness analysis of EI interventions strategies of DCA 28 iv 3.6 Status of ‘EI/Livelihood activities’ and ‘Types of support’ delivered by PHASE Nepal 29 3.6.1 Descriptive statements 29 3.6.2 Appropriacy, effectiveness, viability and sustainability 33 3.6.3 Robustness analysis of EI interventions strategies of PHASE 34 3.7 Status of ‘EI/Livelihood activities’ and ‘Types of support’ delivered by SAPPROS 34 3.7.1 Descriptive statements 34 3.7.2 Appropriacy, effectiveness, viability and sustainability 38 3.7.3 Robustness analysis of EI interventions strategies of SAPPROS 38 3.8 Assessment of ‘Appropriacy’, ‘Effectiveness’, ‘Viability’ and ‘Sustainability’ 39 3.8.1 ‘Appropriacy’ of ‘EI/Livelihood activities’ and ‘Supports provided’ as delivered 39 3.8.2 ‘Effectiveness’ of ‘EI/Livelihood activities’ and ‘Supports provided’ as delivered 40 3.8.3 ‘Viability’ of ‘EI/Livelihood