Project Details: Supporting Strengthening Public Financial Management and Devolved Service Delivery

Project Overview

The Strengthening Public Financial Management and Devolved Service Delivery Program was initiated by the Government of Nepal (GON) and approved by the Asian Development Bank (ADB) in September 2023. The primary objective is to support policy and institutional reforms in public financial management at both national and subnational levels.

Key Objectives

• National Level: Focus on public expenditure and debt management to rationalize public spending and enhance capital budget absorption capacity.
• Subnational Level: Enhance resource planning and management to improve the delivery of devolved public services under Nepal’s federal governance system.

Implementation & Funding

The program is divided into two subprograms:

1. Subprogram 1: Approved in September 2023, resulting in a $100 million concessional policy-based loan disbursed to the GON.
2. Subprogram 2: Currently under implementation with an additional $100 million and scheduled for completion in July 2025.

To support Subprogram 2, ADB has provisioned technical assistance (TA), requiring the expertise of both national and international consultants.

Consulting Services & Budget

• Consulting Firm Selection: Quality and Cost-Based Selection (QCBS)
• Consulting Services Budget: Estimated at USD 583,000
• Engagement Period: 9 months
• Estimated Commencement Date: September 13, 2024
• Executing Agencies:
• Ministry of Finance, Nepal
• Asian Development Bank (ADB)

Consulting Expertise Required

The project requires specialized expertise in the following areas:

International Experts

1. Fiscal Risk Management Expert – 2 PM
2. Public Debt Management Expert – 2.5 PM
3. Legal Consultant – 2 PM
4. Municipal Finance Expert – 1.5 PM
5. Project Appraisal Specialist – 1.5 PM

National Experts

1. Tax Policy Analyst – 2 PM
2. Planning & Public Investment Management Experts (3 positions) – 2 PM each
3. Natural Resource Experts (3 positions) – 1.5 PM each
4. Database Administrator – 6.8 PM

Expected Outcomes

• Improved efficiency in public expenditure and debt management.
• Strengthened resource planning and service delivery at subnational levels.
• Enhanced public procurement and contract management systems.
• Strengthened fiscal risk management and revenue generation mechanisms.

The project aims to build a more accountable and transparent public financial management system, ensuring efficient service delivery in Nepal’s federal structure.