KATHMANDU, JANUARY 2

The Ministry of Federal Affairs and General Administration has adopted the 'Innovative Partnership Fund Implementation Directive, 2021' in a bid to promote innovative ideas and creativity by unveiling strategies for good governance, service delivery, and economic development of local levels.

The directive released by the MoFAGA on Friday also aims to strengthen collaboration and co-financing between the provinces and local levels, between the local levels, and between the private sector and local levels for innovation.

As per the directive, Provincial Programme Implementation Committee under the Office of the Chief Minister and Council of Ministers of each province will publish a 15-day public notice in the provincial and local level newspapers to solicit proposals from the local levels that are interested in operating programmes with the assistance of the innovative partnership fund.

'After the public notice is published, interested local levels will have to submit a proposal along with a concept paper on the programme to the PPIC, which will enter into an agreement with selected proponents upon necessary evaluation of the proposals,' the directive says. Two or more local levels may also submit a joint proposal.

The programme/project proposals are required to be related to use or introduction of innovation in the areas of good local governance, service delivery and economic development.

'Proposals which intend to spend the amount of the fund for construction of physical infrastructure, vehicle purchase, and salary of employees will not be entertained,' it reads.

The directive also allows the local levels to submit a proposal for operation of a programme/project in partnership with the private sector or cooperative organisation under their own leadership.

According to the directive, the Government of Nepal will allocate necessary budget to all the provinces for operation of innovative programme/project through the local levels.

The provincial governments are mandated to provide the amount to the local levels depending on the proposal of the programme/project.

'The local level will have a cost participation of 25-35 per cent of the estimated budget of any programme/ project. The percentage of cost participation depends on the revenue collection status of the local levels,' the directive says.

Similarly, any community organisation, NGO, cooperative organisation or private sector wishing to partner with the local levels for innovative programme/ project will bear at least 30 per cent of the amount to be covered by the local governments as cost participation.

The limit of the amount to be provided by the provincial governments to the local levels will range from Rs 15 million to Rs 40 million.

Proposals to spend the fund on vehicle purchase or staff salary to be rejected

A version of this article appears in the print on January 3, 2022, of The Himalayan Times.