| Project Detail |
Project Name Public Investments Implementation Performance Improvement
Project Number 57130-001
Country / Economy Nepal
Project Status Active
Project Type / Modality of Assistance Technical Assistance
The TA will assess the recurrent issues hampering the implementation performance of public infrastructure investments in Nepal; identify their systemic, structural, and procedural causes; and propose operational, legal, and institutional strengthening measures and digital solutions to overcome those challenges. Focusing on the Asian Development Bank (ADB) portfolio, the TA will introduce and enhance e-governance and digitalization processes, streamline project execution, and improve budget utilization.
Project Rationale and Linkage to Country/Regional Strategy
The TA will contribute to three operational priorities (OPs) of ADBs Strategy 2030 : accelerating progress in gender equity (OP2), strengthening governance and institutional capacity (OP6) and fostering regional cooperation and integration (OP7). It is also aligned with government priorities, ADBs country-level objectives, and the Group of Twenty Principles for Quality Infrastructure Investment. The TA was confirmed and included in Nepals country programming mission in 2023. Further, the TA is aligned with the public sector management priority area in ADBs country partnership strategy for Nepal, 20202024 : policy reforms and capacity development of subnational governments for service delivery.
Poor project implementation and its impact on low capital expenditure execution was highlighted as a major concern by the Ministry of Finance in the 2023 budget speech, and several measures have been announced to improve the timely execution of capital expenditure in FY2024. It also weakens ADBs portfolio performance. As of 31 October 2023, 40% of ADBs Nepal portfolio of $3.7 billion for 30 investment projects and programs was uncontracted and 60% was undisbursed. The disbursement ratio was 11.5% in 2022, below the ADB average of 20.9%. Timely and cost-effective implementation of public investment projects requires reforms and frameworks to ensure projects are fully funded, transparently monitored, and effectively managed. It also needs (i) efficient tools and digital solutions; (ii) key institutional, legal, coordination, and procedural enhancements; and (iii) crosscutting solutions such as staff capacity to implement and manage processes. Such solutions will benefit ADBs ongoing and future portfolio performance.
Impact
Efficiency, transparency, and accountability of public sector management in all tiers of government improved |
