KATHMANDU: The European Union has become the largest contributor to Nepal’s Public Financial Management Multi-Donor Trust Fund (PFM MDTF).
Issuing a press statement today, the Delegation of the European Union to Nepal said it recently increased in contribution by Euro 3 million, approximately equal to Rs 350 million.
Now, the EU has a total contribution of Euro 719 million (approximately Rs 2.32 million) in the fund managed by the World Bank, which pools expertise and resources from Australia, the European Union, Norway, Switzerland, UK-DFID and USAid.
“This will allow reinforcing cooperation in the fields of procurement and capacity building of the Office of the Auditor General (OAG), whose mandate has expanded to the local level with the new Constitution,” the statement quoted EU Ambassador and Head of the EU Delegation to Nepal, Rensje Teerink.
The new EU contribution will support, through the MDTF, the second phase of the National PFM Strategy of the Government of Nepal, according to the statement.
”Some of the key results achieved during the first phase include the automation of many budget preparation and implementation systems which allow better tracking of public expenditure, the strengthening of the OAG and a successful program for accountability as well as a better coordination among development partners around PFM reform support” added Takuaya Kamata, Country Manager of the World Bank in the statement.