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Section 8
Key Strategies

8. Major Strategies

The following strategies will be adopted to implement the foreign aid policy:-

8.1 Formulation of macroeconomic and sectoral long-term concepts – To formulate macroeconomic and sectoral long-term plans for proper allocation of resources. need to These plans clarify the sectoral priorities including the need for internal and external expenditure and their relationship with the overall economic plan and expenditure policy. The Government of Nepal will encourage the issue of identifying the needs of special sectors and sub-sectors through the concept of sectoral programs. The sectoral plan will emphasize on the following issues-

(a) A sectoral concept that is consistent with the overall national goals and includes all aspects related to public expenditure management.
(b) A clearly formulated sectoral strategy (c) Appropriate roles for donors and their support.
(d) Implementation arrangements in consultation with the concerned donor parties as far as possible.
(e) Identifying the need for long-term technical assistance.
(f) Agreement by the partners to bear joint responsibility for the achievement of the program.
(g) Commitment by the donor party to spend under the program or project support program.

8.2 Ensuring transparency and accountability – to eliminate inefficiency and distortions, to control corruption, to make decision-making processes and policy-making accountable and to be conducted with foreign aid. Transparency in foreign aid management will be ensured to make development activities more beneficial. Similarly, financial discipline will be strictly maintained in the management of foreign aid in order to increase public confidence, achieve maximum returns and prevent misuse of funds. In this regard, the following mechanism will be arranged -

(a) Arrangements will be made to provide information to all stakeholders about each activity, cost and financial resources of programs and projects operated with foreign aid.
(b) Public information will be provided regarding the selection of experts, consultants and key employees of the project and the criteria, procedures and people involved in the procurement, auction sale, pre-qualification determination, contracting and decision-making.
(c) Reports on pre-feasibility, feasibility, audit, evaluation, achievement and other subjects of activities carried out with foreign aid will be made available to interested parties.
(d) Foreign aid sources will be included in the budget of the Government of Nepal and arrangements will be made to use them through the budget process.
(e) Arrangements will be made to listen to concerns, complaints and complaints related to project management and set a certain period of time to finalize the action.
(f) Arrangements will be made to ensure strict compliance of legal provisions against corrupt activities, implementation of reward and punishment system and full compliance of code of conduct in public service.
(G) Arrangements will be made to prepare and strictly implement an action plan related to the prevention of financial irregularities in foreign aid related activities and to monitor it effectively.
(h) Arrangements will be made to select clean, qualified and determined personalities for important positions.
(i) It will be arranged that the information of the commission to be paid to the agents must be mentioned.
(j) Media, civil society, organizations and individuals will be encouraged to control corruption and pressurize the culprits to take action.
(k) The rights of exploitation existing in the Act, rules will be removed.
(l) No exception will be left in the prescribed action against corrupt persons.

8.3 Improving the quality of foreign aid - Improving the quality of foreign aid will be one of the main objectives of the Government of Nepal. Part of this strategy is to conduct regular research studies such as joint reviews with relevant donors to identify good projects and project-related good practices (dyabhakat hbaatashavak) and provide information on them. Ditto poverty alleviation and financeTo increase the contribution of foreign aid to growth, its productivity and returns will be maximized. When accepting foreign aid, a detailed investigation will be arranged to see if the conditions of the aid are such as to support the appropriate implementation of the project. Adequate consultation and analysis will be done with relevant parties in this regard. Other measures to be taken in this regard are as follows-

(a) Examining the conditions of foreign aid in relation to the reality of the country, project objectives, development strategies and policies.
(b) obtaining commitments and cooperation from related parties regarding the fulfillment of the proposed conditions.
(c) To obtain formal approval of the relevant authorities, bodies regarding the policy conditions.
(d) To obtain formal approval of the related authorities and agencies in relation to the implementing agency.

8.4 Strengthening the coordination system of foreign aid - to ensure the flow of foreign aid in accordance with the national development policy and priorities and efficiency and effectiveness in the management of aid. And the process of assistance and coordination will be strengthened to enhance harmony. The government will play a leading role in the management and coordination of aid. The Ministry of Finance, National Planning Commission and related ministries should follow the established methodology for coordinating foreign aid. Arrangements will be made to coordinate donor activities at the national, regional and local levels and on the basis of major development sectors. In this context, it will be encouraged to arrange a joint coordination meeting between related ministries and donor parties on sectoral issues. In order to improve the system of information for the purpose of management and policy analysis of donor-assisted projects, the Ministry of Finance and the National Planning Commission will arrange to classify the aid according to appropriate types and keep records. A database will be established in various government agencies. The ability of the Ministry of Finance to effectively play the role of a leader in the coordination of donors will be strengthened. All for itSupport will be obtained from the stakeholders. 8.5 Identifying, choosing, designing and achieving sustainability of projects and programs - The sustainability of foreign aided projects and programs will be ensured with special attention to appropriate ownership and sustainability. Project analysis will be done in detail for suitability and sustainability. All projects will be tested from social, economic, financial, managerial, technical and environmental aspects. Some of the other measures to be taken in this regard will be as follows-

(a) Elimination of unproductive and unnecessary projects will be encouraged and resources will be concentrated in priority areas.
(B) Only those projects that meet the national development objectives and sustainability criteria will be selected.
(c) Arrangements will be made to maintain regional and national and priority lists of projects based on relevance, potential benefits, efficiency and effectiveness.
(D) The amount of foreign aid will be allocated according to the priority order of the project.
(e) New projects will be incorporated so as to make more use of past investments.
(f) Aid will be mobilized in such a way as to harmonize the donor's priorities and comparative advantage with development priorities and programs.
(g) The project will be prepared and constructed based on appropriate level of technology that can be adopted and operated in Nepal.
(h) Projects will be selected and built on the basis of existing local institutional and administrative capacity.
(i) In addition to making development activities environmentally friendly, gender issues, cultural and institutional sensitivities will also be taken into consideration.
(j) Civil society and beneficiary groups will be involved at each stage of the project cycle and the full cooperation and commitment of the beneficiary groups will be obtained in the implementation of local level projects. Considering the importance of foreign aid-related information for evaluation, building an information base, regularly updating the information, andArrangements will be made for information flow. The basis of such information will include information related to sources of expenditure, projects, essential elements of the program, type of aid, status of aid utilization, conditions of aid, obligations related to debt repayment, etc. 8.7 Increasing Institutional Effectiveness- Necessary measures will be adopted to increase the effectiveness of institutions related to the use of foreign aid. These measures include strengthening the capacity of organizations implementing projects, formulating and implementing human resource development plans based on the purpose and characteristics of each activity based on foreign aid, appointing competent people to the main positions of the project, and making arrangements for staff selection based on expertise, honesty, ability and commitment. , clearly defining the rights and responsibilities of the project staff etc. will be included.