Profiles of Development Partners Government of Nepal Ministry of Finance This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without the authorization of International Economic Cooperation Coordination Division, Ministry of Finance. International Economic Cooperation Coordination Division August 2014 PREFACE International development assistance continues to play a signi cant role in supporting socio- economic development of Nepal. Lately, the development cooperation contributes about 20 percent in the annual budget and it is the major nancing source for development projects implemented through the Government of Nepal. In this respect, development partners information is equally important for planning, coordinating and e ective utilization of the development assistances. As Nepal has planned to graduate from the status of Least Developing Country by 2022, e ective utilization of development cooperation is further challenging. e Ministry of Finance is putting its best e orts to enhance aid e ectiveness through greater transparency and e cient utilization of development assistances. For this, it has been using various tools such as the operation of Aid Management Platform (AMP), publication of key reports such as the Development Cooperation Report, and launching of new aid policy, the Development Cooperation Policy, 2014. e present Development Partners Pro le, which carries the updated and up to date information of development partners cooperation in Nepal, is yet another e ort by the Ministry of Finance in this path. e Pro les of Development Partners which cover key features such as aid mechanism, diplomatic relations, cooperation, partnership, list of completed and ongoing projects are crucial for e ective development cooperation and management. is information allows strengthening coordination, as well as harmonization among development partners and also facilitates ample information for economic diplomacy. I am con dent that the information contained in this Pro le will be useful for all who keep interest in development cooperation management in Nepal. I would like to thank all development partners for their support in preparing this valuable document. In a way, the present Pro le is a compilation of the information that has been supplied by the development partners. I thank all colleagues at the International Economic Cooperation Coordination Division for their hard work in bringing this Pro le to this stage. August 2014 Madhu Kumar Marasini Singhadurbar Joint Secretary International Economic Cooperation Coordination Division Ministry of Finance i TABLE OF CONTENTS Preface i List 0f Abbreviations iv Bilateral Development Partners Australia 1 China 7 Denmark 12 Finland 16 Germany 20 India 27 Japan 35 Korea 41 Kuwait Fund for Arab Economic Development 45 Netherlands 48 Norway 54 Switzerland 58 Saudi Arab: Saudi Fund for Development 63 United Kingdom 66 United States of America 70 ii Multilateral Development Partners Asian Development Bank 76 European Union 82 Food and Agriculture Organization 85 Global Environment Facility 89 Global Fund 93 International Fund for Agricultural Development 97 International Finance Corporation 101 International Labour Organisation 103 International Monetary Fund 107 OPEC Fund for International Development 109 SAARC Development Fund 111 United Nations Children Fund 115 United Nations Development Programme 121 United Nations Educational, Scienti! c and Cultural Organization 125 United Nations Population Fund 139 United Nations High Commissioner for Refugees 142 UN Women 144 United Nations World Food Programme 149 World Bank 159 World Health Organization 163 iii LIST OF ABBREVIATIONS ADB Asian Development Bank AMP Aid Management Platform Ausaid Australian Government Overseas Aid Program BMIS Budget Management Information System CIDA Canadian International Development Agency CIF Climate Investment Fund DPs Development Partners DFID Department for International Development EDCF Economic Development Cooperation Fund EIB European Investment Bank EU European Union FAO Food and Agriculture Organization FMIS Financial Management Information System FY Fiscal Year GDP Gross Domestic Product GAVI Global Alliance for Vaccines and Immunisation GEF Global Environment Facility GFATM Global Fund to •ight AIDS, Tuberculosis and Malaria GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit IDA International Development Association IECCD International Economic Cooperation Coordination Division IFAD International Fund for Agriculture Development IFC Intrnational Finance Corperation ILO International Labour Organization IMF International Minetory Fund JFA Joint Financing Arrangement JFPR Japan Fund for Poverty Reduction JICA Japan International Cooperation Agency KFAED Kuwait fund for Arab Economic development KfW Kreditanstalt für Wiederau•bau KOICA Korea International Cooperation Agency KFAED Kuwait Fund for Arab Economic Development MCC Millennium Challenge Corporation MDG Millennium Development Goals MOF Ministry of Finance iv NARC Nepal Agricultural Research Council NDF Nordic Development Fund NETO North Atlantic Treaty Orginization NLSS Nepal Living Standards Survey ODA Of•icial Development Assistance OECD-DAC Organisation for Economic Cooperation and Development - Development Assistance Committee OFID OPEC Fund for International Development OPEC Organization of Petroleum Exporting Countries PBA Program Based Approach PFM Public Financial Management SSRP School Sector Reform Program SWAp Sector Wide Approach SDC Swiss Agency for Development and Cooperation SNV Stichting Nederlandse Vrijwilligers TA Technical Assistance UK United Kingdom USA United States of America UN United Nations UNCDF United Nations Capital Development Fund UNDP United Nations Development Programme UNDAF United Nations Development Assistance Framework UNFPA United Nations Population Fund UNESCO United Nations Educational, Scienti•ic and Cultural Organization UNEP United Nations Environment Programme UNHCR United Nations Ofice of the High Commissioner for Refugees UNHABITAT United Nations Human Settlements Programme UNICEF United Nations Children Fund UNISDR United Nations International Strategy for Disaster Reduction UNODC United Nations Ofice on Drugs and Crime UNOHCHR United Nation Ofice of High Commissioner for Human Rights UNPFN United Nations Peace Fund UN Women United Nations Development Fund for Women UNWFP United Nations World Food Programme USAID U.S. Agency for International Development WB World Bank WHO World Health Organization v Bilateral Development Partners 1 AUSTRALIA 1. General Introduction to Development Cooperation Partnership e Commonwealth of Australia is a country in the southern hemisphere comprising its mainland, the major island of Tasmania and numerous other islands in the Indian and Paci" c Oceans. Australia is the world#s smallest continent and sixth largest country by total area. Australia#s population includes Aboriginal and Torres Strait Islander people and migrants from some 200 countries. In over 60 years of planned post-war migration, Australia has welcomed more than 6.5 million migrants, including more than 660,000 refugees. During this time, the population tripled from about 7 million to just over 21.3 million. Approximately 60 per cent of the population in Australia is concentrated in and around the mainland state capitals of Sydney, Melbourne, Brisbane, Perth, and Adelaide. Australia#s system of government is based on the liberal democratic tradition, which includes religious tolerance and freedom of speech and association. Its institutions and practices re$ ect features of British and North American models but are uniquely Australian. e Federal Government is based on a popularly elected Parliament with two chambers, the House of Representatives and the Senate. Each has virtually equal powers to approve the passage of legislation. e Prime Minister is appointed by the Governor-General, who by convention under the Constitution must appoint the parliamentary leader of the party, or coalition of parties, which has a majority of seats in the House of Representatives. is majority party or coalition becomes the government, with Ministers appointed from both chambers to serve in the Cabinet or outer ministry. e other major political party or coalition is called %the opposition#. Members of the House of Representatives seek re-election each time there is a federal election. Senators are elected for a six-year term and in an ordinary general election, only half of the Senators face the voters. Australia#s six states and two territories also have their own legislative bodies. e Australian Government has committed to scale up its overseas development assistance to 0.5 per cent of Gross National Income (GNI). 2. Introduction to Aid Mechanism e Department of Foreign A& airs and Trade (DFAT) is the Australian Government Department responsible for managing Australia#s overseas aid program. DFAT#s role is to advance the interests of Australia and Australians internationally through strengthening Australia#s security; enhancing Australia#s prosperity; and delivering an e& ective and high quality aid program. Australia#s development assistance focuses on economic growth and 1 human development, and is guided by the Millennium Development Goals, the internationally agreed targets for poverty reduction. DFAT provides advice and support to the Minister for Foreign A! airs on development policy,