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NPPR Meeting 2012

Jan 16, 2017
Nepal Portfolio Performance Review Meeting 2012 was held in kathmandu.
Nepal Portfolio Performance Review (NPPR) annual meeting was held in Kathmandu on 24 January, 2013. This annual event was jointly organized by Government of Nepal (GoN) and Development Partners (DPs) for a meaningful dialogue on strengthening Portfolio Performance in Nepal. The theme of this year's NPPR was "Portfolio Performance for Development Results".

Addressing as the chief guest of the meeting, Hon. Finance Minister Mr. Barsha Man Pun said that Nepal has been the beneficiary of aid money for over six decades from all quarters, but the results have not been achieved up to the expectations. He underscored the need of consolidated efforts of GoN and DPs to review what went wrong; identify the issues ahead and accordingly plan for the future so as to make the best use of aid money. He emphasized the need of harmonization in donor strategies and procedures, alignment with Nepal's budgetary processes, strong system of mutual accountability, and appropriate financial management and reporting system for performance-oriented, result -based aid management. He even assured the DPs that the present government is determined to address the challenges in governance and anti-corruption.

Chairing the initial session of the meeting, Mr. Janak Raj Shah, Hon. Member, National Planning Commission (NPC), said that NPPR meeting is a worthy opportunity for GoN and DPs to review the work progress of foreign aided projects and programs. He requested all the DPs to join the NPPR mechanism for effective utilization of their fund. He assured the DPs that the GoN is committed for aid effectiveness of the country and for this it is trying to improve Public Financial Management (PFM) through a continuous process. In the meantime, he informed that NPC has initiated the process of making next Three Year Plan with a long term vision "Building a Prosperous, Peaceful and Just Nepal".

Speaking in the program, on behalf of the DPs, Ms. Tahseen Sayed, Country Manager, the World Bank Office , Nepal, focused on the challenges of absorptive capacity, a possible lack of realism while preparing the budget and delays in budget approvals that have to be resolved for unlocking the implementation issues. Showing her concern on frequent transfer of staff, particularly secretaries and key project officials, she also said that retention of senior officials in key ministries and in districts means better project implementation and faster results. She even expressed the urgency for strengthening key institutions (such as OAG and CIAA) and possible alternatives in the absence of Public Accounts Committee.

Mr. Kenichi Yokoyama, Country Director, NRM, ADB made a presentation on overall portfolio situation of DPs funded projects focusing on GON capital expenditure, recent trend of DP assistance and portfolio performance. He mentioned that overall capital expenditure is generally low and there is significant risk of further reduced expenditure in FY 2013. He further mentioned that portfolio performance was in positive trends over the years 2010-2012. However, he outlined a number of issues like high turnover of key staff, slow disbursement, procurement and capacity constraints in new projects, timeliness of audit submission and quality of audit, high fiduciary risk, absence of oversight mechanism, and prolonged lack of full budget. NPPR Coordinator, Mr. Kailash Raj Pokharel had made presentation on progress details of NPPR - 2011 Action Plan. He presented overall progress of NPPR - 2011 as satisfactory.

Chairing the second session of the meeting Chief Secretary, Mr. Leela Mani Paudyal, requested the DPs not to utilize and mobilize aid outside the government system. He drew the attention of donors that aid accountability becomes stronger if aid is mobilized through government system. He said that accountability can not be maintained well outside the GoN system. He further said that GoN still has strict mechanism of governance and accountability in place. Speaking on transfer of officials, he requested DPs not to take it as major issue because new officials are equally capable in handling their responsibility. In the meantime, Mr. Paudyal even instructed the nine thematic groups, who made presentation in his presence, to come up with revised NPPR Action Plan that is in line with the GoN's Immediate Action Plan for Governance and Economic Reform, 2012.