KATHMANDU, MARCH 16

The Ministry of Finance and the British Embassy Kathmandu have signed a memorandum of understanding for new UK/Nepal collaboration through the local infrastructure support programme (LISP) here today.

The LISP programme is co-designed between the Nepal government and British Embassy Kathmandu.

Up to 1.7 million Nepali citizens will directly receive more sustainable and inclusive infrastructure services as a result. The UK will provide up to £90 million (Rs 14.4 billion) support for this work. lmportantly, the programme will support the Nepal government to improve the delivery and sustainability of wider investments in local infrastructure, worth over £2 billion (Rs 320 billion) over the next six years.

Terming LISP as 'an important programme for both the government of Nepal and the British Embassy Kathmandu', and 'another great example of our historic partnership', British Ambassador Nicola Pollitt said that the UK and Nepal have a long and proud history of collaboration in building, maintaining and reconstructing infrastructure.

"The approach we are taking through this new programme will put local decision-making and service delivery at its heart, and help build more accountable, stronger local government. This new approach will also help the government of Nepal to improve the way infrastructure is delivered; allowing us together to make sure that over £2 billion of wider investment in local infrastructure over the next six years will have a more sustainable impact." ln response, Finance Secretary Toyam Raya acknowledged the contribution and continuous support of the British government for the social and economic development of Nepal since long. He also highlighted that the programme will support the local level infrastructure and capacity building of local governments, which will enhance the quality of public life in local levels. He further added, "The Ministry of Finance will stand ready to support the implementation of the programme in close coordination with relevant agencies."

Under the LISP programme, the UK will provide up to £90 million (Rs 14.4 billion) support and the Nepal government also will provide up to £40 million (Rs 6.4 billion) co-financing to encourage local governments for sustainable and resilient infrastructure service delivery.

The programme that will run between 2023 and 2029 is also expected to support Nepal's COVID-19 recovery.

The other expected main outputs of LISP include 80 to 100 local governments having improved capacity to undertake planning, budgeting, decision making, expenditure, service delivery and reporting on local infrastructure services, all based on local level priorities; creation of up to six million person-days of employment in support of Nepal's green recovery and COVID-19 recovery; an agreed national framework for the provincial and local infrastructure sectors to support local infrastructure investment by development partners and Nepal government; and improved cooperation and coordination between the local, provincial and federal governments in the three identified provinces, and lessons-sharing among local governments with enhanced intergovernmental relationship to deliver infrastructure services at the local level.

A version of this article appears in the print on March 17, 2023, of The Himalayan Times.