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Technical Assistance Consultant’s Report

Project Number: 3141901 January, 2010

Nepal: Capacity Building in Rural Infrastructure Institutions

Prepared by Michael Dalton

For Ministry of Local Development (Department of Local Infrastructure Development and Agricultural Roads)

This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.

Government of Nepal Ministry of Local Development

DEPARTMENT OF LOCAL INFRASTRUCTURE DEVELOPMENT

AND AGRICULTURAL ROADS

CAPACITY BUILDING IN

RURAL INFRASTRUCTURE INSTITUTIONS

FINAL OUTPUT REPORT

OF

THE INTERNATIONAL ADVISOR (Michael Dalton)

Under TA – 4397 (NEP)

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Kathmandu

18 December 2009

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ACRONYMS AND ABBREVIATIONS

ADB Asian Development Bank AOTA Advisory and Operational Technical Assistance CFAA Country Financial Accountability Assessment COC Code of Conduct DAG Disadvantaged Group(s) DDC District Development Committee DDF District Development Fund (D)DG (Deputy) Director-General DfID Department for International Development (UK) DOLIDAR Department of Local Infrastructure Development and Agricultural Roads DOR Department of Roads DP Development Partner(s) DPMAS District Poverty Monitoring Analysis System DRILP Decentralised Rural Infrastructure and Livelihoods Project DRSP District Roads Support Programme DTCO District Treasury Controlling Office DTMP District Transport Master Plan DTO District Technical Office FAR Financial Administration Regulations FCGO Financial Comptroller-General’s Office FMIS Financial Management Information System GESI Gender Equality and Social Inclusion GIS Geographical Information System GON Government of Nepal HRD/M Human Resources Development/Management IA (ISAP) International Advisor IRAP Integrated Rural Accessibility Planning IS (ISAP) Institutional Specialist ISAP Institutional Strengthening Action Plan ISP Institutional Strengthening Project JICA Japan International Cooperation Agency JSCRI Joint Steering Committee on Rural Infrastructure ICT Information and Communication Technology (I)NGO (International) Non-governmental Organisation IRAP Integrated Rural Accessibility Planning ISAP Institutional Strengthening Action Plan Km Kilometre LBFAR Local Bodies Financial Administration Regulations LBT Labour-based Technology LDO Local Development Officer LEP Labour-based Environment-friendly and Participatory LGCDP Local Government and Community Development Programme LGSA Local Self-Governance Act LID Local Infrastructure Development LIDP Local Infrastructure Development Policy LIDSAP Local Infrastructure Development Strategic Action Plan LRN Local Road Network MC/PM Minimum Conditions / Performance Measures M&E Monitoring and Evaluation MIS Management Information System MLD Ministry of Local Development MOF Ministry of Finance MOU Memorandum of Understanding MPPW Ministry of Physical Planning and Public Works MTEF Medium Term Expenditure Framework NDF National Development Forum NPC National Planning Commission

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NR Nepali Rupees NVC National Vigilance Centre OAG Office of the Auditor-General O&M Operations and Maintenance PAF Performance Appraisal Framework PCU Programme or Project Co-ordination Unit PD Pooling Donors PDR Priority District Road PEFA Public Expenditure and Financial Accountability PFM Public Financial Management PICC Project Implementation Co-ordination Committee PMAS Poverty Monitoring Analysis System PMS Poverty Monitoring Section QA Quality Assurance QMS Quality Management System RAIDP Rural Access Improvement and Decentralisation Project RAP Rural Access Programme RBM Results-based Management RBG Road Building Group RBN Roads Board Nepal RI Rural Infrastructure RRMF Rural Roads Maintenance Fund RRRSDP Rural Reconstruction and Rehabilitation Sector Development Programme RTI Rural Transport Infrastructure RTISSP Rural Transport Infrastructure Sub-Sector Programme SDC Swiss Agency for Development and Co-operation SMART Specific, Measurable, Attainable, Relevant, Time-bound SOI Statement of Intent SRN Strategic Road Network SSS Sub-sector Strategy SWAp Sector-wide Approach TA Technical Assistance TB Trail Bridge(s) TBSSP Trail Bridges Sub-sector Project TNA Training Needs Analysis or Analyses TOR Terms of Reference TSU Technical Support Unit TYIP Three-Year Interim Plan (2007/08 – 2009/10) US$ United States Dollar VDC Village Development Committee WB World Bank WFP World Food Programme

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EXECUTIVE SUMMARY

The International Advisor (IA), based at DOLIDAR’s offices, worked under the direction of the ISAP Project Coordinator and liaised closely with the Institutional Specialist (IS). The IA arrived in Kathmandu on 15 October 2009 and commenced his work on 16 October. An Inception Report was submitted at the end of October and a Progress Report was submitted at the end of November. Both were endorsed by DOLIDAR and by the Asian Development Bank. The IA’s work in the assignment period 16 October - 18 December included the following amongst others:

• Examining with the IS possible criteria for consideration in formulating an

“allocation formula” covering DDC conditional grants and donor complementary funding, that will be tabled for stakeholders review once completed by the IS;

• Liaising with and advising the IS on common issues as per his TOR; • Reviewing the reported progress and incomplete activities to date of the ISAP

and the complementary capacity building elements of existing RTI projects with the Institutional Specialist;

• Preparing a conceptual framework for how best to visualise and structure the components and hierarchy of institutional strengthening, organisation improvement and capacity building for the coming five-year period;

• Preparing a Synthesis matrix for presenting a strategic response to the combined needs - institutional strengthening, organisation improvement and capacity building;

• Preparing a complete Synthesis document (submitted on 25 November); • Preparing a Road Map matrix that reflects the Synthesis matrix and sets out

the timelines for activities under the different outputs and objectives; • Preparing (i) a Results Framework that covers indicators and means of

verification, and (ii) an Outline Cost Estimate of the critical enabling activities that will inform the government on the scope and cost of the longer term HRD Plan, “Core Skills” upgrading programme, core processes and key systems enhancing;

• Preparing a complete Road Map document (submitted on 26 November); • Examining and discussing options for improving the organisational structures,

roles and functions of MLD and DOLIDAR; • Preparing a complete Enhancing Organisational Structures document

(submitted on 06 December); • Preparing a presentation for the ISAP Review Meeting held on 16 December. • Preparing draft proceedings of the ISAP Review Meeting. • Amending the three key documents as a result of feedback received at the

workshop/meeting (re-submitted on18 December); • Preparing a Final Output Report (draft submitted on 17 December; final on 18

December).

Overall, the progress has been approximately as expected. The one constraint was that a key meeting between DOLIDAR and MLD regarding review of enhancing organisational structures was not scheduled or held. This had an impact on the IA’s work and schedule, but provided DOLIDAR is satisfied with and confident to use the Enhancing Organisational Structures document prepared by the IA in further discussions with the MLD, then the input will have served its purpose under the circumstances.

The designated Tasks and Outputs as per the Terms of Reference have been

completed by the scheduled date of Friday, 18 December 2009.

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~ TABLE OF CONTENTS ~

• Acronyms and Abbreviations • Executive Summary

1. Introduction, Background and Schedule

2. Review and Interpretation of Needs

3. The Outputs

4. Stakeholders’ Meeting and the Next Steps Appendices:

1. Terms of Reference of the International Advisor 2. Assignment Schedule at Completion

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1. INTRODUCTION, BACKGROUND AND SCHEDULE 1.1 Introduction

The Government of Nepal (GON) divided the development of infrastructure between the strategic or central level and local level. The level of works is defined for each sector according to the nature of local infrastructure. Responsibility for the coordination, regulation and monitoring of the local bodies rests with the Ministry of Local Development (MLD), acting as a facilitator. Within MLD the Department of Local Infrastructure Development and Agricultural Roads (DOLIDAR) is the responsible agency for central and local level coordination, guidance and management of the local infrastructure development as per the provisions of the Local Infrastructure Development (LID) Policy, 2061 (2004).

It is in this context that the Asian Development Bank (ADB) approved grant-financed Advisory and Operational Technical Assistance (AOTA) in September 2004 as being "piggy-backed" on to the loan for the Decentralized Rural Infrastructure and Livelihood Project, in order to strengthen DOLIDAR’s technical and institutional capacity in view of its pivotal role in the local infrastructure development (DRILP). It has had, correctly, a sectoral perspective, broader than that of the DRILP, but nevertheless complements the DRILP activities to build institutional capacity of DOLIDAR.

The institutional strengthening of DOLIDAR is supported in an integrated way by the major current externally-assisted projects in the LID sector. The World Bank-funded Rural Access Improvement and Decentralisation Project (RAIDP) has an Institutional Strengthening Action Plan (ISAP) and has established an Institutional Strengthening Project (ISP) in DOLIDAR positioned under the Director General. Since the launch of the ISAP in late 2006 there are now (i) the Rural Roads Rehabilitation Sector Development Programme (RRRSDP), supported by ADB and the Department for International Development (DFID), with capacity building elements at both the central and district level, and (ii) the Rural Access Programme (RAP) - Phase II, supported by DFID, with capacity building elements at district level. Hence, demand-driven capacity building is an important component of development partners’ support across various programmes and projects.

In summary the objectives of the AOTA are two-fold:

(i) to strengthen MLD, DOLIDAR and DDCs' capacity and effectiveness in managing implementation of the Local Infrastructure Development Policy; and

(ii) to improve procedures and practices for various aspects of local infrastructure, particularly rural infrastructure management, including road maintenance and social development in a changing environment.

1.2 Background to the Assignment

As of the last semester of 2009, the task for DOLIDAR has been three-fold: (i) to review how successful the various strands and sources of capacity building had been to date, (ii) to analyse what institutional, organisational and capacity changes and improvements are required for the RTI SWAp (including the Trail Bridges initiative) about to be launched, anticipating as much as possible that these same changes and improvements will be appropriate for future SWAps in the other sub-sectors, and (iii) to re-align a next phase of ISAP with more focused institution strengthening, organisation improvement and capacity building that are flexibly

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responsive to both the evolving sector-wide approach and to the emerging federal form of government. So as to undertake this complex task before end-2009, DOLIDAR requested ADB to mobilise an International Advisor (IA). 1.3 Assignment Arrangements

The IA selected was previously the team leader of the RTI SWAp formulation team, and who worked closely with DOLIDAR management, ISP and development partners active in the sub-sector. Having also been part of the RRRSDP formulation team in 2007 as well as undertaken interim work on the RTI SWAp process in 2008, he brought to the assignment not only first-hand knowledge of the proposed SWAp but also a sound understanding of the background issues and needs particularly in regard to institutions, organisations and capacities. He was based at DOLIDAR’s offices in Jawalakhel, Lalitpur, under the direction of the ISAP Project Coordinator and working closely with the Institutional Specialist (IS). He liaised with other TA consultants: (i) the Social Development Expert, (ii) the Management Information System (MIS) Expert, (iii) the Maintenance Expert, and (iv) the Environmental Expert, as required.

It was expected that there would be fortnightly progress meetings chaired by

DOLIDAR and attended by ADB, at which all consultants’ work will be reviewed. These have not occurred for a number of reasons. Nevertheless, the IA liaised closely with the ISAP Project Coordinator, practically on a daily basis clarifying issues, options and responses. Similarly, work-in-progress has been shared frequently so that DOLIDAR could be kept informed where the IA was going with the three key documents – (i) the Synthesis, (ii) the Road Map, and the (iii) the Organisational Structure - and the progress or constraints being faced and decisions, clarifications or support required. 1.4 The Schedule

The IA arrived in Kathmandu on 15 October 2009 and commenced his work on 16 October. The last scheduled working day is 18 December 2009, with his departing on 19 December. The Terms of Reference are attached as Appendix 1.

The provisional schedule in the Inception Report, updated in the November

progress report and as completed is presented in Appendix 2, with the progress achieved against the various actions listed.

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2. REVIEW AND INTERPRETATION OF NEEDS 2.1 Review

As far as could be ascertained, there has been considerable input to the eleven outputs listed in the ISAP matrix, and much completed. The question was - how well do these eleven outputs, completed in part or in whole, complement each other and are contributing to making DOLIDAR a more focused and pro-active organisation able to deal with current and anticipated challenges? Is the sum greater than the parts, and if not, why not and what should be done about it?

In summary, the key to organisational effectiveness is management having a

clear picture of what the organisation’s core functions are as per its mandate, their deliverables and timetable, how the core or business processes and key systems support these functions and deliverables, monitoring progress and anticipating problems, and ensuring that all staff members understand the priorities and have the skills, information and resources to carry out their tasks in properly functioning organisational units. This applies to DOLIDAR as much as any other organisation.

The first issue was whether sufficient adjusting and strengthening of key core

processes and key systems had taken place to meet the various functions’ needs and the progressive move to sector-wide approaches. Some have been done with more expected to be completed by end-2009 or early 2010. However, in certain areas the real work is only beginning such as in management information systems (MIS), monitoring and evaluation (M&E) including reporting, gender equality and social inclusion (GESI). In addition, required as part of SWAp-responsiveness, there is a need for a communications function as well as for strengthening the procurement and financial management functions for their new RTI SWAp-related roles. In essence, the RTI SWAp is the precursor and path-finder to moving towards sector-wide approaches for the other six LID sub-sectors.1

The second issue was where DOLIDAR and MLD stood on the

responsiveness of the proposed re-organisation as outlined in the Organisational Development (OD) Consultant’s report2, and how should those proposals be adjusted to reflect the progressive adoption of sector-wide approaches across the seven LID sub-sectors, starting with the RTI SWAp. There was and still remains a further core issue that needed to be addressed namely, is MLD ready to permit DOLIDAR the programme management role of local infrastructure (i.e. for all seven LIDP sub-sectors?). Resolving these issues are critical as the piloting of the RTI SWAp in seven districts commences in January 2010. DOLIDAR will have to be ready to carry out the RTI programme management function starting immediately, while the districts have to be sensitised, prepared and supported.

The third issue is determining if there are sufficient human resources with the

necessary skills available in-house to meet the considerable work-load of DOLIDAR. The conclusion of the OD Consultant was there was not, and that is before including requirements for the RTI SWAp. However, the public administration environment at present may not permit substantial re-organisation or staffing increases. Two questions arise here for DOLIDAR – how to meet its pressing needs including RTI SWAp, and how to do so in a way that does not cause difficulties when the wider public sector is re-organised for an eventual federal structure? 1 LIDP 2061 (2004), clause 2 2 MG Maleku: Organisational Structure. Functions and Development Plan (August 2009)

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2.2 Interpretation

From the above, it seemed to the IA that DOLIDAR needs to find a balance between two conflicting demands in a dynamic and uncertain constitutional and political environment. On the one hand it needs to be bold with reshaping and resourcing itself as a more-than-likely programme manager to meet priority LID demands including the RTI SWAp while anticipating further sub-sector SWAps, while on the other hand being cautious about undertaking major re-organisation and expansion in the face of potentially significant changes to the role and functions not only of DOLIDAR but also of MLD. Although there are several possibilities for MLD and DOLIDAR under a federalist arrangement, it is not possible at this stage to predict which outcome is the most likely.

The needs were summarised as:

i. Strengthening MLD’s policy-making role and oversight capability regarding local infrastructure development;

ii. Agreeing with MLD regarding DOLIDAR’s role as local infrastructure programme manager;

iii. Arriving consensually at the institutional and organisational design for DOLIDAR that will be least at risk in terms of disruption to core processes as federalism unfolds in the months and years to come;

iv. Ensuring a demand-driven MIS is operationalised and sustained, with much greater focus on the importance of proper information management, and

v. Providing key competencies with an appropriate mix of internal and external resources, with continuing skills enhancing for DOLIDAR staff as required.

The TOR were assessed by DOLIDAR, ADB and the IA to see what

amendments if any were required to maximise the added value of the consultancy to meeting the needs listed, in the time available. The conclusion was that IA should proceed with the four defined Tasks, keeping DOLIDAR informed of constraints or difficulties, and completing all outputs as best he could in the event that meetings and workshops did not take place as envisaged.

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3. THE OUTPUTS 3.1 The ISAP Synthesis 3.1.1 Overview

It was agreed amongst the ad-hoc ISAP working group3 on 25 October that

the ISAP progress reporting matrix (November 2008) would be used for updating the progress of ISAP as of 31 October 2009. The IA and the IS modified the original matrix as a reporting template, and the IS has completed his report4 on (a) the progress information of the ISAP, in consultation with the ISAP Project Coordinator, and (b) the capacity building progress information of the existing RTI programmes and projects, in consultation with the respective teams. The progress information collected was imported into the Synthesis exercise, which along with the RTI SWAp-identified needs, forms the basis of the new “road map” prepared by the IA with input from the IS and the ISAP Project Coordinator.

The IA reviewed the available information and concluded that the original

ISAP matrix and perspective did not seem to reflect an appropriate framework for institutional strengthening, organisational improvement and capacity building. What was needed, in his opinion, was a clear vision as to the drivers and focus for future interventions, which recognised that institutional strengthening and allied activities are not ends in themselves but only enabling. Hence, the outputs contribute to objectives that enable the reducing of poverty through the provision and sustaining of local infrastructure.

The heart of the Synthesis document is the matrix. This presents the outputs

under each enabling Objective, indicating key activities, those responsible or best placed to deliver each output, and the source or reference of the need for the outputs. What is important is that whereas the two Streams can progress in parallel, there is a clear hierarchy of priorities that must be respected so that organisational improvements are not out of line with the expectations regarding deliverables, the core processes and key systems. The Synthesis was shared in draft form with DOLIDAR progressively as an evolving work-in-progress, and the full document was submitted on 25 November 2009.

3.1.2 Summary

The Synthesis identifies and addresses the key institutional and organisational needs and opportunities arising out of the ISAP progress compilation, including the contribution of existing projects with capacity building elements, and outline assessment undertaken by the Institutional Specialist5 during October – November 2009, in consultation with the International Advisor. The original ISAP structure has been reviewed and assessed as no longer being an appropriate format for viewing and prioritising institutional strengthening, organisational design and capacity building for DOLIDAR, MLD, DDCs and Municipalities. A new framework is presented that captures succinctly and accurately the critical linkages between mandates, strategy and deliverables in the first instance, and the improvements necessary in institutions, organisations and capacities to meet the current and emerging needs of local infrastructure development – municipal and rural – from now

3 ISAP Project Coordinator, the Institutional Specialist and the International Advisor 4 PJ Shah: ISAP Progress and Review (November 2009) 5 Mr. Prakash Jung Shah, also under TA 4397 (NEP)

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on. The distinct possibility of a federalist state in the coming years and the implications of this on public governance and administration have been taken into account as best as one can, but this eventuality should not negate the core activities of strengthening processes, systems, resourcing and support.

The Synthesis has two strands – (1) Institutional and Organisational Framework, and (2) Strategy. Under strand (1) are four Objectives containing 17 outputs, whereas under strand (2) there are three Objectives containing 20 outputs. Particular effort has been made to integrate the complementary ongoing and forecast capacity building work of existing projects into the Synthesis, and key to this will be the launching of (i) an Institutional Strengthening and Capacity Building (IS/CB) Working Group, (ii) a Sector Performance Monitoring and Evaluation (SPME) Working Group, and (iii) an Information Working Group (IWG), under the RTI SWAp Implementation Coordination Committee in early 2010.

Finally, this Synthesis feeds directly into a medium–term framework or “Road Map (2010 - 2014)” proposal for the more efficient use of resources for the sustainable development and management of local infrastructure for poverty reduction in Nepal.

3.2 The Road Map for More Efficient Use of Resources 3.2.1 Overview

The natural follow-on from the Synthesis is a “Road Map” of what

stakeholders should do next. Using the same matrix arrangement as the Synthesis, the IA developed a bar-chart showing approximate timelines for each output over a five-year period, which has been sub-divided in to short-term (i.e. years One and Two) and medium-term (years Three to Five). Provisionally, the five-year framework commences in January 2010 and finishes in December 2014. In addition, in consultation with the ISAP Project Coordinator and the IS, he prepared and indicative cost estimate, which covers the next steps. Costing of full training programmes and modules has to be deferred until such time as they are designed, reviewed and approved.

Human resources development will not be seen as a peripheral activity but

central to DOLIDAR’s new Business Plan. From 2010 onwards, it is expected that DOLIDAR senior management will lead the organisation in meeting its deliverables through a consultatively formulated and correctly focused Business Plan that explicitly recognises the LIDP and its requirements as the main driver of DOLIDAR’s operations.

Whereas Stream One: Institutional and Organisational Framework

establishing the context and backdrop has immediate priority, the substantive work is in Stream Two: Strategy. It is here that the core processes (nine have been identified) and key systems (eight have been identified) critical to ensuring poverty reducing Deliverables are addressed. At the centre are the participation and coordination of existing RTI projects6, which will contribute through three key working groups – (i) Institutional Strengthening and Capacity Building, (ii) Sector Performance Monitoring and Evaluation, and (iii) Information. The intention is that under DOLIDAR chairmanship, the working groups will proactively influence, guide and take action in

6 DRILP, DRSP, RAIDP, RAP and RRRSDP

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a coherent and coordinated manner regarding core process and key systems. The intention is that through the working groups, the existing RTI projects will start by coordinating more closely than before, then moving to collaboration regarding specific processes and systems, and eventually to pooling of resources.

The Road Map was shared in draft form with DOLIDAR progressively as an

evolving work-in-progress, and the final document submitted on 26 November 2009.

3.2.2 Summary

The proposal addresses the institutional, organisational and capacity improvements necessary for DOLIDAR to carry out its designated functions as facilitator of the LIDP (2016/2004). It is based upon the ISAP Progress and Review7 and the subsequent Synthesis of institutional, organisational and capacity needs identified by the IA. The essence is that the three fundamentals of Institutions, Organisations and Capacities are necessary but not sufficient by themselves. Rather they lay the foundations for the Strategy that ensures the Deliverables are achieved. Strategy covers core processes, key systems and resources plus support.

The overall framework starts with Stream One namely the reviewing and updating policies, mandates and deliverables, then proceeding to appropriate re-organisation and alignment at different levels, as well as tackling human resources development and management in a strategic manner. In parallel but taking cognizance of the Stream One work as it progresses, Stream Two addresses core processes and key systems, determining how best to enhance them as well as build capacity to run and sustain them over time. The final element is looking at how well the planning and use of all available resources is managed, and whether opportunities for existing RTI projects to coordinate, collaborate and pool are exploited.

The timeframe is five years (2010 – 2014), divided into short-term (years One and Two) and medium-term (years Three to Five). Active involvement of existing RTI projects is vital from the outset, coordinated through three working groups. Given the broader sub-sectoral coverage, it will be necessary for DOLIDAR to convene a HRD Advisory Committee (HRDAC) with MLD, other agencies, DDCs and Municipalities, and Development Partners.

Outline costs have been estimated for the initial interventions that will allow the government to scope, design and cost a complete five-year programme, incorporating support both from existing RTI projects and additionally from development partners. It also includes IT infrastructure and software development or tailoring. Some activities are considered as normal running costs covered by government or projects. Others will require time-bound local consultancies of a short-term nature, requiring travel to a representative sample of districts and municipalities, as well as holding workshops and publishing revised policy documents.

The indicative estimated costs for critical, enabling interventions are:

• Stream One: Institutional and Organisational Framework - US$ 330,000

• Stream Two: Strategy - US$ 2,195,000

US$ 2,525,000

7 PJ Shah: ISAP Progress and Review (November 2009)

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3.3 Enhancing Organisational Structures

3.3.1 Overview It was agreed that continuing with no-longer responsive organisational

structures in MLD, DOLIDAR and the technical offices in the districts was not an option. Responsiveness continues to be priority No.1 and will probably take time in terms of consultation and negotiation amongst key stakeholders. To date, there have been very open and productive discussions on this matter within DOLIDAR and these have assisted the IA to develop added value options for both MLD and DOLIDAR, on paper at least. However, no meeting had been held with MLD to date. This was not foreseen and may impact on the ability of MLD and DOLIDAR to agree operational procedures for DOLIDAR and appropriate branches of MLD including confirming or defining roles, functions, staffing and resource requirements. The concern is that in the absence of MLD/DOLIDAR interaction on the outline proposal then only an ex-parte approach to defining these elements is possible. Nevertheless, this has value as the starting point for the MLD/DOLIDAR negotiations which could be protracted, but not as much if the interaction had taken place and the deliberations factored into the proposal.

The IA proceeded with the drafting of the Enhancing Organisational

Structures document and submitted it on 06 December. As of 18 December this has not been shared by DOLIDAR with MLD. The ISAP Review Workshop was held on 16 December at which DOLIDAR introduced the proposals in outline for organisational changes. The IA has re-visited the document with DOLIDAR to see which comments from the Workshop should be incorporated and which should be deferred for further discussion and consultation. 3.3.2 Summary

The proposal addresses the institutional and organisational improvements with linkage to the complementary institutional strengthening and capacity building needs, which are covered under the Road Map (2010 – 2014) proposal. The analytical framework for such a review has a structured, hierarchical examination starting with key policies governing LID, the key institutions and their mandates, deliverables, responsibilities and authority, the key organisations including their roles and functions, the critical capacities needed, and the strategy for achieving the deliverables. Whereas one should not pre-empt the findings and recommendations of a suitable review exercise, one could anticipate a number of possible conclusions based on good practice, gap analysis and focussing on enhancing LID effectiveness and efficiency. There are gaps in the responsibilities and authority framework, not least of which is not having a programme management approach to LID delivery and accountability.

For the Ministry of Local Development the key changes between the existing

and proposed structures are as follows:

• There is one new Division proposed – Local Infrastructure, with two Sections – (i) Rural Infrastructure (covering LIDP clauses 2.1, 2.2, 2.3, 2.4, and 2.7), and (ii) Municipal Infrastructure (covering LIDP clauses 2.4, 2.5 and 2.6). This allows all seven LIDP sub-sectors to be covered, and allowing for attention to be given RTI to which most of the LID budget is allocated as well as the overlap of water, sewerage and sanitation in both rural and urban areas.

• Given the predominantly technical nature of municipal management, planning and environmental management, in order to ensure greater national technical

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leadership and impact of the key Municipal Management Division it would be most appropriate if the Division Chief was of Joint Secretary: Technical grade.

• A new Section – Gender Equality, Social Inclusion and Poverty Alleviation (GESIPA) - is to be added to the Planning and Foreign Aid Coordination Division.

For the DDCs and DTOs, the 2009 Report of the Organisational Development

Consultant sets out a proposal for enhancing the provision of technical services within the DDC by incorporating the DTO possibly re-named as the District Infrastructure Development Section (DIDS) as envisaged in the LIDP. The Consultant’s proposal (August 2009) has been included verbatim as Appendix 5.

Finally, DOLIDAR mandate, responsibilities and deliverables have all

changed significantly since the department was formed just over ten years ago, but these changes have not been yet been formally recognised in an overall coordinated framework for local infrastructure development. The current organisational arrangement is no longer appropriate for the significant and ever-increasing work-load. The ambiguities and gaps in the LIDP need to be rectified as soon as possible. The need to address municipal infrastructure is ever-pressing, as well as adopting a systemic approach to gender equality and social inclusion, information and communication, and the widening demand for human resources development. However, improving DOLIDAR cannot be done in isolation; it must be done in tandem with improvements in the MLD and in district organisational arrangements and capacities. A coherent proposal is now made that addresses these issues, even through a review of the LIDP may be some way off as of now, the general direction for enhancing DOLIDAR does not pre-empt or constrain the most likely changes to the LIDP-driven mandates, responsibilities and deliverables.

The proposal for enhancing DOLIDAR is a combination of renaming some

divisions, introducing new divisions and sections to meet current and forecast needs better, as well as re-aligning some functions internally and having project coordination units under the main Divisions. There is a case for endorsing the suggestion in the 2009 Report of renaming DOLIDAR as simply the “Department for Local Infrastructure Development (“DOLID”). This strengthens the primary focus on effective LID delivery. The key changes between the existing and proposed structures are:

• There are two new Divisions proposed – (i) Municipal Infrastructure Division, with

two Sections and project coordination units, and (ii) Human Resources Development Division, with two Sections.

• The existing Rural and Agricultural Roads Division is renamed to better reflect its role; it is also increased and strengthened with three Sections and project coordination units.

• The existing Other Infrastructure Division is renamed to better reflect its role; it is also increased and strengthened with three Sections and project coordination units.

• The existing Planning, Monitoring and Foreign Aid Division is renamed to better reflect its role; it is also increased and strengthened with four Sections.

• The DTO, although under the direct control of the DDC, will report to and be supported by the various Divisions on a matrix basis regarding technical matters.

• The Pool of currently unassigned personnel, those on study leave or on special assignments, is recognised separately and reports to the Director-General. Pool members in project coordination units report to the respective Division DDGs.

• Other Sections such as General Administration and Financial Administration remain as before, reporting to the Director-General.

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3.4 Other Tasks and Outputs

In the TOR, under Task (3), there are a number of tasks in the IS’s Terms of Reference requiring the IS and the IA to work closely together. Of these – (T.3) ISAP progress matrix, (T.7) frameworks for sub-sector master plans and a DOLIDAR Business Plan, (T.10) integrating RTI SWAp requirements into the ISAP, and (T.12) preparing a new ISAP “road map” from 2010, there was very close interaction throughout and as a result the various outputs of the two consultants have been delivered as planned.

As explained in the IA’s Inception Report there was one task that was not

readily resolvable, as it needs considerable consultation and other inputs. This is (T.8): under the guidance of the International Consultant prepare, and obtain consensus on criteria for the allocation of centrally and locally-managed investment resources for local roads and other local infrastructure, based on geographic and developmental priorities or poverty reduction. This is a matter that requires specific experience of different allocation formulae and their context in other countries, something which neither the IS nor the IA have. Nevertheless, at the request of DOLIDAR management, the former RTI SWAp Transport Economist8 who was in Nepal on another assignment, met DOLIDAR and the team on 08 November. There was a very useful discussion on what criteria could be considered, and subsequently the Transport Economist shared a World Bank paper he had co-authored on calculating social benefits in rural transport investment decisions. As a result the DOLIDAR and ADB9 decision still stood namely, for the IS and IA to proceed as best they could with whatever information is to hand in drafting an initial or proto-formula for wider consultation in the coming weeks and months.

The IS preparing a short paper outlining the fundamentals of an allocation

formula, the general principles of which he reviewed with the IA. Agreement was reached on increasing the added value of the IS’s draft paper. He is finalising the paper, which will be submitted by the IS as part of the outputs under his TOR.

The IS is also preparing (i) a framework template for LID sub-sector master

plans, and also (ii) a framework template for a DOLIDAR Business Plan, the general principles of which he reviewed with the IA. Agreement was reached on increasing the added value of the IS’s draft frameworks. He is finalising the two papers at this time, and they will be submitted by the IS as part of the outputs under his TOR.

8 Mr. Farhad Ahmed, IT Transport (UK) 9 ISAP TA progress review meeting held at DOLIDAR on 02 November 2009.

10

Final

4. STAKEHOLDERS’ MEETING, DEBRIEFING AND THE NEXT STEPS 4.1 Stakeholders’ Meeting (16 December 2009)

A half-day review workshop was held in Kathmandu by DOLIDAR, at which the background to the ISAP, its progress and achievements to date were present, the needs for further institutional strengthening, organisational development and capacity building were identified and a “Road Map” of what the next phase of the ISAP might look like. It was emphasised that the road map was not a detailed project proposal but a considered input to facilitate stakeholders in their deliberations regarding what to do next.

At the meeting DOLIDAR also presented in outline form the proposed

changes to the organisational structures for MLD, DOLIDAR, DDC and DTO. There was considerable interest in this, and DOLIDAR was invited to submit its proposal document with clear justification, as soon as possible. The consensus was that the best way forward would be to activate the LID Advisory Committee and the HRD Advisory Committee, and to let these committees decide on priorities and next actions. 4.2 DOLIDAR/ADB Debriefing (18 December 2009) There was a very useful debriefing with DOLIDAR senior management and the ADB Head – Portfolio Management Unit plus the ADB Procurement Officer on the last day of the assignment. The was an exchange of views on what the priorities from now on, what options were there, and how best to present and debate the proposed organisational enhancements with MLD. There was also a discussion on the issue of the Allocation Formula as an input to further consultations with MLD and other stakeholders, which is being finalised by the Institution Specialist. The IA was given clearance to complete and re-submit all key documents and this Final Output Report. 4.3 Next Steps

The documents produced by the IA - Synthesis, Road Map, and Enhancing Organisational Structures – are interlinked. The Road Map is probably the most important as it sets out a strategic approach to reviewing, upgrading and sustaining the key institutions, organisations and capacities. However, due to the work-load of DOLIDAR, something needs to be done as soon as possible to improve its responsiveness, and DOLIDAR cannot do this alone.

In order to take the enhancing organisational structures proposal forward in a

sensible manner, it must be closely coordinated with the Road Map for institutional strengthening and capacity building. By examining both proposals together, government and stakeholders can prioritise, resource and implement key activities in a sequential manner. Establishing and operationalising the three Working Groups – (a) Institution Strengthening and Capacity Building, (b) Sector Performance Monitoring and Evaluation, and (c) Information, will be important, in addition to the LID Advisory Committee and the HRD Advisory Committee mentioned in 4.1 above.

Regarding the Organisational Improvements proposal, DOLIDAR may wish to

prioritise an early meeting with the MLD, to present the proposal document and to walk MLD senior management through the principles and the elements of the proposal insofar as they affect MLD, DOLIDAR, DDC and DTO.

*~*~*

11

Final

APPENDICES

Appendices:

1. Terms of Reference of the International Advisor

2. Assignment Schedule at Completion

12

Final

Appendix (1): Terms of Reference Contract S20029 Project TA - 4397 (NEP): Capacity Building in Rural Infrastructure Institutions Expertise International Advisor Source International Category Independent Objective/Purpose of the Assignment: The objective/purpose of engaging the International Advisor is to advise on services to meet the requirement of the Advisory and Operational Technical Assistance (AOTA) as outlined in tasks below. The Advisor, based at Department of Local Infrastructure Development and Agricultural Roads (DOLIDAR) and other relevant local Government agencies including the local infrastructure programs under them as appropriate. Scope of Work: International Advisor will perform as the Advisor/Coordinator during the TA period. Detailed Tasks: 1. Review and prepare a synthesis of DOLIDAR Institutional strengthening activities under Institutional Strengthening Action Plan (ISAP) and those currently underway on other donor financed projects; and update it in an integrated way with future activities focusing more on other donor-financed projects; and update it in an integrated way with future activities focusing more on local infrastructure and the proposed rural transport infrastructure sector-wide approach. 2. Based on consensus reached on different aspects during the period of TA; prepare for review of a "road map" by DOLIDAR by using the new basis for more efficient use of resources for the sustainable development and management of local infrastructure contributing to poverty reduction. 3. Provide guidance and support to ISAP institutional specialist in accomplishing the assigned tasks. 4. Assist MLD and DOLIDAR in establishing an achievable and efficient organizational structure including the operational procedures for DOLIDAR, and appropriate branch of MLD, defining roles, functions, staffing and resource requirement for each section/unit. Output/Reporting Requirements: 1. Submit inception report after 2 weeks of commencement of the assignment. 2. Submit monthly progress reports. 3. Conduct national workshops. 4. Submit final output report by 18 Dec 2009. Maximum Working Days per Week: Field: 6 Places of Assignment: Days Estimated Dates (dd/mm/yyyy) NEP, Kathmandu 54 13/10/2009 - 31/12/2009 NEP, Outside Kathmandu 5 13/10/2009 - 31/12/2009 TOTAL DAYS (Intermittent) 59

13

Final

Appendix 2: Work Schedule at Completion

TOR Task Activity Approx. Start day/date

Target Finish day/date Progress

Output (1) Prepare + submit Inception Report Wed – 21 Oct Fri – 30 Oct Completed

DOLIDAR and ADB review Sun – 01 Nov Tue – 03 Nov Completed Finalise I/R and submit Wed – 04 Nov Wed – 04 Nov Completed

Output (2) Prepare and submit progress report Tues – 24 Nov Fri – 27 Nov Completed DOLIDAR and ADB review Sun – 29 Nov Wed – 02 Dec Finalise progress report and submit Thurs – 03 Dec Thurs – 03 Dec

T(1) Prepare Capacity Building Synthesis matrix (with PJS and SCT) Wed – 21 Oct Sun – 08 Nov Completed

Prepare Synthesis matrix Mon – 09 Nov Tue – 24 Nov Completed DOLIDAR reviews (progressively) Wed – 11 Nov Tues – 24 Nov Completed Prepare Synthesis document + submit Fri - 15 Nov Wed – 25 Nov Completed

T(2) Outline ISAP Road Map matrix (with PJS and SCT) Mon – 09 Nov Fri – 13 Nov Completed

Prepare ISAP Road Map document; Sun – 15 Nov Thurs – 26 Nov Completed DOLIDAR reviews (progressively) Sun – 15 Nov Thurs – 26 Nov Completed Finalise and submit to DOLIDAR Thurs – 26 Nov Thurs – 26 Nov Completed DOLIDAR review (full document) Fri – 27 Nov Mon – 30 Nov Completed Amend ISAP Road Map document if

required; DOLIDAR to circulate Road Map document to stakeholders

Tue – 01 Dec Wed – 09 Dec Completed

Output (3) Hold half-day workshop for stakeholders’ feedback + suggestions Wed – 16 Dec Wed – 16 Dec Completed

Finalise ISAP Road Map document if needed and re-submit to DOLIDAR

T(3) Ongoing liaison and consultation Tue – 20 Oct Fri – 18 Dec Completed

T(4) Review and clarify core issues with DOLIDAR; review with ADB Tue – 27 Oct Thurs – 29 Oct Completed

Develop organisational proposal incorporating SWAp needs Thurs – 29 Oct Sun – 08 Nov Completed

DOLIDAR initial review Mon – 09 Nov Tue – 10 Nov Completed Amend organisational proposal; hold

DOLIDAR review meetings as required Wed – 11 Nov Fri – 13 Nov Completed

Improve proposal; prepare submission Sun – 15 Nov Thurs – 19 Nov Completed Hold DOLIDAR / MLD review meeting In abeyance Prepare key document; DOLIDAR internal

review (2) and issue to MLD Fri – 20 Nov Wed – 09 Dec Completed

Hold half-day workshop for stakeholders’ feedback + suggestions Wed – 16 Dec Wed – 16 Dec Completed

Finalise and re-submit key document

Output (4) Drafting of Output Report Wed – 09 Dec Sun – 13 Dec Completed DOLIDAR/ADB review; wrap-up meeting Thurs – 17 Dec Fri– 18 Dec Completed Finalise Output Report and re-submit Fri – 18 Dec Fri – 18 Dec Completed

Note: Output (2) is a monthly progress report on the International Advisor’s work where (i) the Inception Report is the progress report for the month of October 200, (ii) a progress report was submitted on 30 November, and (iii) the Output Report constitute the final report regarding the progress and achievements of the assignment.

14






DOLIDAR INSTITUTIONAL STRENGTHENING

- A SYNTHESIS OF

NEEDS AND OPPORTUNITIES

~ version: 18 December 2009 ~

Prepared by: Michael Dalton International Advisor

Kathmandu

18 December 2009

.

Version: 18 December 2009


ADB Asian Development Bank AOTA Advisory and Operational Technical Assistance CFAA Country Financial Accountability Assessment cl. Clause COC Code of Conduct DAG Disadvantaged Group(s) DDC District Development Committee DDF District Development Fund (D)DG (Deputy) Director-General DfID Department for International Development (UK) DIDS District Infrastructure Development Section DOLIDAR Department of Local Infrastructure Development and Agricultural Roads DOR Department of Roads DP Development Partner(s) DPMAS District Poverty Monitoring Analysis System DRILP Decentralised Rural Infrastructure and Livelihoods Project DRSP District Roads Support Programme DTCO District Treasury Controlling Office DTMP District Transport Master Plan DTO District Technical Office FAR Financial Administration Regulations FCGO Financial Comptroller-General’s Office FMIS Financial Management Information System GESI Gender Equality and Social Inclusion GIS Geographical Information System GON Government of Nepal GRI Governance Reform Initiative GTZ Gesellschaft für Technische Zusammenarbeit (Germany) HRD Human Resources Development HRDAC Human Resources Development Advisory Committee HRD/M Human Resources Development/Management IA (ISAP) International Advisor IRAP Integrated Rural Accessibility Planning IS (ISAP) Institutional Specialist ISAP Institutional Strengthening Action Plan ISP Institutional Strengthening Project JICA Japan International Cooperation Agency JSCRI Joint Steering Committee on Rural Infrastructure ICT Information and Communication Technology (I)NGO (International) Non-governmental Organisation IRAP Integrated Rural Accessibility Planning ISAP Institutional Strengthening Action Plan Km Kilometre LBFAR Local Bodies Financial Administration Regulations LBT Labour-based Technology LDO Local Development Officer LEP Labour-based Environment-friendly and Participatory LGCDP Local Government and Community Development Programme LGSA Local Self-Governance Act LID Local Infrastructure Development LIDP Local Infrastructure Development Policy LIDSAP Local Infrastructure Development Strategic Action Plan LRN Local Road Network MC/PM Minimum Conditions / Performance Measures M&E Monitoring and Evaluation MIS Management Information System MLD Ministry of Local Development

i


MOF Ministry of Finance MOU Memorandum of Understanding MPPW Ministry of Physical Planning and Public Works MTEF Medium Term Expenditure Framework NDF National Development Forum NPC National Planning Commission NR Nepali Rupees NVC National Vigilance Centre OAG Office of the Auditor-General O&M Operations and Maintenance PAF Performance Appraisal Framework PCU Programme or Project Co-ordination Unit PD Pooling Donors PDR Priority District Road PEFA Public Expenditure and Financial Accountability PFM Public Financial Management PICC Project Implementation Co-ordination Committee PMAS Poverty Monitoring Analysis System PMS Poverty Monitoring Section QA Quality Assurance QMS Quality Management System RAIDP Rural Access Improvement and Decentralisation Project RAP Rural Access Programme RBM Results-based Management RBG Road Building Group RBN Roads Board Nepal RI Rural Infrastructure RRMF Rural Roads Maintenance Fund RRRSDP Rural Reconstruction and Rehabilitation Sector Development Programme RTI Rural Transport Infrastructure RTISSP Rural Transport Infrastructure Sub-Sector Programme SDC Swiss Agency for Development and Co-operation SMART Specific, Measurable, Attainable, Relevant, Time-bound SMDP Senior Management Development Programme SOI Statement of Intent SRN Strategic Road Network SSS Sub-sector Strategy SWAp Sector-wide Approach TA Technical Assistance TB Trail Bridge(s) TBSSP Trail Bridges Sub-sector Project TNA Training Needs Analysis or Analyses TOR Terms of Reference TSU Technical Support Unit TYIP Three-Year Interim Plan (2007/08 – 2009/10) US$ United States Dollar VDC Village Development Committee WB World Bank WFP World Food Programme

ii


EXECUTIVE SUMMARY

The Government of Nepal (GON) divided the development of infrastructure between the strategic or central level and local level. Within the Ministry of Local Develop (MLD), the Department of Local Infrastructure Development and Agricultural Roads (DOLIDAR) is the responsible agency for central and local level coordination, guidance and management of the local infrastructure development. The Asian Development Bank (ADB) approved grant-financed Advisory and Operational Technical Assistance (AOTA) in September 2004 as being "piggy-backed" on to the loan for the Decentralized Rural Infrastructure and Livelihood Project (DRILP), in order to strengthen DOLIDAR’s technical and institutional capacity in view of its pivotal role in the local infrastructure development. The institutional strengthening of DOLIDAR is supported in an integrated way by the major current externally-assisted projects in the LID sector. There continue to be significant changes in the general political environment in Nepal since the launch of the ISAP. Federalism, devolution and decentralisation remain very topical and will have an impact on the role and functions of MLD and DOLIDAR in future. A major thrust of GON has been to encourage moves towards sector-wide approaches (SWAp) in key sectors. The first sub-sector taken forward under LIDP has been rural transportation (infrastructure) (RTI) including a Trail Bridges SWAp as a subsidiary initiative that will be absorbed into the RTI SWAp fully in time. A major task for DOLIDAR has been to review how successful the various strands and sources of capacity building have been to date, and to analyse what institutional, organisational and capacity improvements are required for the RTI SWAp.

This Synthesis identifies and addresses the key institutional and organisational needs and opportunities arising out of the ISAP progress compilation, including the contribution of existing projects with capacity building elements, and outline assessment undertaken by the Institutional Specialist1 during October – November 2009, in consultation with the International Advisor. The original ISAP structure has been reviewed and assessed as no longer being an appropriate format for viewing and prioritising institutional strengthening, organisational design and capacity building for DOLIDAR, MLD, DDCs and Municipalities. A new framework is presented that captures succinctly and accurately the critical linkages between mandates, strategy and deliverables in the first instance, and the improvements necessary in institutions, organisations and capacities to meet the current and emerging needs of local infrastructure development – municipal and rural – from now on. The distinct possibility of a federalist state in the coming years and the implications of this on public governance and administration have been taken into account as best as one can, but this eventuality should not negate the core activities of strengthening processes, systems, resourcing and support.

The Synthesis has two strands – (1) Institutional and Organisational Framework, and (2) Strategy. Under strand (1) are four Objectives containing 16 “SMART”2 outputs, whereas under strand (2) there are three Objectives containing 20 “SMART” outputs. Particular effort has been made to integrate the complementary ongoing and forecast capacity building work of existing projects into the Synthesis, and key to this will be the launching of (i) an Institutional Strengthening and Capacity Building (IS/CB) Working Group, (ii) a Sector Performance Monitoring and Evaluation (SPME) Working Group, and (iii) an Information Working Group (IWG), under the RTI SWAp Implementation Coordination Committee in early 2010.

Finally, this Synthesis feeds directly into a medium–term framework or “Road Map (2010 - 2014)” proposal for the more efficient use of resources for the sustainable development and management of local infrastructure for poverty reduction in Nepal.

1 Mr. Prakash Jung Shah, also under TA 4397 (NEP) 2 S = Specific, M = Measurable, A = Attainable, R = Relevant, and T = Time-bound

iii




1. Introduction and Background

2. Progress to Date – Institutional Strengthening and Capacity Building

3. A Framework for Strengthening and Continuous Improvement

4. The Next Steps Appendices:

1. Details of the RTI SWAp documents: a. The Framework Document b. The Folders (19 no.)

2. The Synthesis Matrix

..

iv


1. INTRODUCTION AND BACKGROUND

The Government of Nepal (GON) divided the development of infrastructure between the strategic or central level and local level. Within the Ministry of Local Develop (MLD), the Department of Local Infrastructure Development and Agricultural Roads (DOLIDAR) is the responsible agency for central and local level coordination, guidance and management of the local infrastructure development. The Asian Development Bank (ADB) approved grant-financed Advisory and Operational Technical Assistance (AOTA) in September 2004 as being "piggy-backed" on to the loan for the Decentralized Rural Infrastructure and Livelihood Project (DRILP), in order to strengthen DOLIDAR’s technical and institutional capacity in view of its pivotal role in the local infrastructure development. The institutional strengthening of DOLIDAR is supported in an integrated way by the major current externally-assisted projects in the LID sector. There continue to be significant changes in the general political environment in Nepal since the launch of the ISAP. Federalism, devolution and decentralisation remain very topical and will have an impact on the role and functions of MLD and DOLIDAR in future. A major thrust of GON has been to encourage moves towards sector-wide approaches (SWAp) in key sectors. The first sub-sector taken forward under LIDP has been rural transportation infrastructure (RTI) including a Trail Bridges SWAp as a subsidiary initiative that will be absorbed into the RTI SWAp fully in time. Refer to Appendix 1 for a list of key documents.

A major task for DOLIDAR has been to review how successful the various strands and sources of capacity building have been to date, and to analyse what institutional, organisational and capacity improvements are required for the RTI SWAp and ongoing projects. The International Advisor selected was previously the team leader of the RTI SWAp formulation team, who worked closely with DOLIDAR management, ISP and development partners active in the sub-sector. He was based at DOLIDAR’s offices under the direction of the ISAP Project Coordinator, working closely with the Institutional Specialist (IS), and liaising with other TA consultants as needed. As part of AOTA, an Institutional Specialist3 has reviewed not only the progress of the ISAP as of end-October 2009, but also compiled and reviewed the complementarity and progress of the various RTI-related projects4 approximating to the institution strengthening and capacity building outcomes and objectives as presented in the ISAP framework. Of necessity in the time available this exercise has not been a formal evaluation per se of both the ISAP and the RTI-related projects but rather a summary of the progress of similar elements and an assessment of their contribution.

3 Mr. Prakash Jung Shah 4 DRILP, DRSP, RAIDP, RAP and RRRSDP

1


2. PROGRESS TO DATE – INSTITUTIONAL STRENGTHENING AND CAPACITY BUILDING

2.1 Summary and Overview

The Institutional Specialist prepared a stand-alone report5 on the progress and the

indicative or unmet needs regarding the ISAP and the existing RTI-related projects. Due to the range of information to be tabulated, there were two matrices prepared - (i) ISAP, and (ii) existing RTI-related projects. He assessed the progress in terms of achievement, quality, value and sustainability, and recorded both the ongoing activities and the unmet needs as reported by the ISAP Project Coordinator and the projects.

The conclusions to be drawn from the abovementioned progress report, as far as the International Advisor can ascertain, are as follows amongst others:

The outputs of the ISAP have been achieved to a reasonable degree, but in certain

areas fell short of expectations. With the benefit of hindsight, having so many disconnected outputs may not have promoted ownership and coordination.

It is not possible to ascertain the quality or the value of the training provided in different areas and at different levels. The impression is that overall, training was input-driven not outcome focused.

Due to the difficulties facing local government not least of which must be insufficient and/or inadequate staffing combined with PJ Shah: ISAP Progress and Review (…. November 2009)turnover, there must be a question over the sustainability of the outputs, in part or in whole. In some cases DOLIDAR had insufficient resources to absorb and sustain outputs from projects, which had considerable potential added value if they were properly institutionalised and resourced from the centre.

There appears to have been have been little or no coordination of the different capacity building elements between ISAP and all projects as a general rule, although there have been linkages with RAIDP.

Not having a Human Resource Development locus properly resourced within DOLIDAR – be it a section or division – goes some way to explain why there are concerns regarding momentum and sustainability

Conflicting institutional expectations and relationships are likely to be at the heart of the difficulties faced by MLD and DOLIDAR in meeting their not inconsiderable obligations under the Local Infrastructure Development Policy (LIDP 2061/2004). By extension this includes the difficulties at local level between the District Technical Office (DTO) and the District Development Committee (DDC).

2.2 Introducing the RTI Sector-wide Approach

As two separate but closely related exercises, the International Advisor reviewed the generic LIDSAP6 needs and RTI SWAp needs – institutional, organisational and capacity – against the same ISAP matrix as the Institutional Specialist had used. In this way, the unmet needs of the ISAP and the existing projects plus the forecast needs of the LIDSAP and the RTI SWAp could be compiled in such a way as to inform what any future programme should cover. By reviewing three matrices of needs – (i) ISAP, (ii) existing projects, and (iii) RTI SWAp, it was possible to obtain a realistic picture and inter-relationship of the overall range, scope and level of the combined needs. Specific technical capacity needs will be identified over time, as DOLIDAR takes up more LIDP sub-sectors more actively alongside the ongoing RTI sub-sector.

5 PJ Shah - ISAP Progress and Review submitted to DOLIDAR (November 2009) 6 Local Infrastructure Development Strategic Action Plan - DOLIDAR (September 2007)

2


3

3. A FRAMEWORK FOR STRENGTHENING AND CONTINUOUS IMPROVEMENT 3.1 Overview

In looking at the achievements and sustainability of institutional strengthening and capacity building initiatives to date, a number of significant issues emerge. These include a certain amount of confusion over the role and functions of MLD and DOLIDAR regarding LIDP, the lack of coherence, ownership and momentum of the HRD process for LIDP delivery, and the absence of structured coordination across RTI-related projects regarding HRD, amongst others. Notwithstanding the ISAP matrix and the elements in the various RTI-related projects, perhaps the most striking thing is the absence or articulation of a central vision for HRD. Vision is the answer to the key question – “HRD for what (purpose), when, where and by whom?” In answering this, the fault lines and inconsistencies at the heart of the difficulties emerge.

First, there needs to be consensus amongst key stakeholders on updating and

aligning the respective mandates of the various LIDP institutions and the deliverables that they are expected to achieve. Everything flows from this. As always it is important to note that institutions and organisations are not the same. Institutions describe legally established bodies and their inter-relationship (i.e. institutional arrangements) at different levels, which are mandated specific responsibilities ranging from formulating and executing policy, planning, monitoring and evaluation to implementation, with commensurate authority and resources. In this case, the institutions and the institutional arrangements are those that focus on delivering local infrastructure development (LID). Organisations on the other hand, are how institutions or bodies internally structure or organise their roles, functions and resources in order to meet the designated responsibilities and deliverables effectively and efficiently under a coherent strategy. If there are ambiguities or inconsistencies over the mandate, responsibilities, authority and deliverables of an institution, then it should not be surprising if that institution has organisational arrangements that are sub-optimal.

Secondly, in regard to LID-related organisations, the principle saying of “structure

follows strategy” is pertinent. The organisation’s roles and functions should be structured in such a way that the designated deliverables can be met as effectively and efficiently as possible. As above, in the same way that LID mandates, responsibilities, authority and deliverables are coherent and aligned from the ministry through to the districts, so to should the strategies at the different levels be coherent and aligned, which in turn will be reflected in the organisations at the different levels. Thirdly, coherent and aligned organisations are nothing if they remain on paper only; they must have the appropriate capacities (in terms of expertise) to apply the strategies for delivery.

Fourthly, the strategy for meeting deliverables can generally be broken down into

three components – (i) core processes, (ii) key systems, and (iii) resources and support. These are interdependent. Hence, in strengthening say a key process such as planning, one must also look at the information system that is critical to that process, identifying, upgrading and reinforcing the planning skills in the people charged with planning, as well as ensuring there are support, quality assurance and feedback.

In summary, institutions cover the What and Why questions, organisations cover

the Who, Where and When questions, and capacities cover the How questions. A simple graphic (Figure 3.1) presents the drivers and focus of strengthening and continuous improvement namely the critical interaction between the “underpinning” institutions, organisations and capacities and the three “superstructure” components of strategy – core processes, key systems, resources and support, all of which are necessary for successful delivery. ..


4

..

CAPACITIES

ORGANISATIONS

INSTITUTIONS

DELIVERABLES

CORE PROCESSES KEY SYSTEMS

RESOURCES + SUPPORT

CAPACITIES

ORGANISATIONS

DELIVERABLES

KEY SYSTEMS

CORE PROCESSES

RESOURCES + SUPPORT

INSTITUTIONS

STRATEGY

Figure 3.1: The Drivers and Focus of Strengthening and Continuous Improvement


5

3.2 The Framework

As mentioned in 2.2 above, it has been possible to look at the combined needs using the original ISAP matrix. However, the need to bring a sense of updated vision and leadership to the institutional strengthening and capacity building process, demands a more responsive framework reflecting the drivers and focus of strengthening and continuous improvement (see Table 3.1 below).

Starting from the top Left of the Table, the key challenge is reconciling and aligning

mandates, policies, principles and authority at the three levels – MLD, DOLIDAR and at the DDC and Municipality. This includes aligning deliverables as well. From this one can proceed to reviewing and improving the organisations in terms of roles and functions at the three levels, as well as addressing the issue of properly locating and renaming the District Technical Office (DTO) in the district- and municipal-level structure. Organisations are people, working individually and in groups, who must be informed of what is expected of them and be correctly positioned in line with their skills, experience and authority to meet expectations. Hence, proper job descriptions aligned with an individual’s expected contribution towards and responsibility for one or more deliverables, in part or in whole, are vital. In this regard, so as to underscore the importance of organisational and personal responsibilities for deliverables, the introduction of performance-based contracts in the form of a Memorandum of Understanding (MOU) between organisations and through personal contracts for individuals, are also critical, being in line with the government’s performance-based “Governance Reform Initiative” (GRI).

The three components of strategy are structured along the lines of the three levels (MLD,

DOLIDAR, and DDCs and Municipalities including District Infrastructure Development Section (DIDS), identifying what needs to be addressed by the organisation and its capacities. Finally, the question of resources and support is addressed more strategically including much closer working with existing RTI-related projects, which eventually should lead to greater added value in terms of coordination, collaboration and pooling.

3.3 The Synthesis Matrix: THE WAY FORWARD

The matrix, has two parts – (1) Institutional and Organisational Framework, and (2)

Strategy. It sets out the Key Outputs by Objective, the Key Activities to achieve each output, who is responsible for taking Action, and the Sources or References for the originating needs as reflected in the Progress Matrices (ISAP and other projects) and identified in the RTI SWAp documents. In summary: (a) Under the Institutional and Organisational Framework, there are four Objectives: 1.1 Clarifying and updating Mandates, Policies, Principles and Authority (with Three Outputs) 1.2 Clarifying and Updating Deliverables (with five Outputs) 1.3 Clarifying and Enhancing Organisational Structures, Roles and Functions (with four

Outputs), and 1.4 Optimising Capacities and Human Resources (with six Outputs). (b) Under the Strategy there are three Objectives:

Strengthening and Sustaining Core Processes (with nine Outputs) Strengthening and Sustaining Key Systems (with eight Outputs) Prioritising and Applying Resources and Support Effectively (with three Outputs).

Refer to Appendix 2 to see the Synthesis Matrix in full. ..


6

Ta 3 of

ble .1: Summary Strengthening and Continuous Improvement Approach

1. ciPoli es, Mandates,

Princip Ales/ uthority 2. Strategy 3. Deliverables

el vel

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..


4.

streare,add

THE NEX S

he Sy a ive a o LIDP tional n ening bu uld be hed, wha riori ncing how b al olved ductive coordination that will enhance the e alue o Th ps are s:

i. DOLIDAR to review and approve the ISAP Progress Matrix (Novem 2009)

submitted by Instit na e l

c ns to rogres x ( ember 009) warran s t sal, revie ap ve the ynthesis Ma , if th errors o ons, and paying rticular

attention to hat ach rding the s of strengthening uou ent is e not j sub-

i If necessary, DOLIDAR to share the with key sta olders, seeking their inputs on the stru o ;

i Once the Synth trix is c n i d elo “Road Map” whereby R can ment partners, how to use the S i se of

r the sustainabl cture that contributes to poverty reduction.

T S

ntheand est t

f all in

TEP

sis Mcapao enitiat

atrixcity

gage ives.

Tgthandd v

ims to gilding shol actors inve next ste

coherent picture approac more pro as follow

f how t the p

-relaties a

ted ind s

nstitueque

ber

Novpro padrivere RTI

the

tingtrixens and

utio

ngeng ttin

her LIDP-identified sub-

l Sp

o there

thes im

cia

oris ar pr

ist;

ctioopoanyproem

ii. Subject to no major changes or 2S

repre apov

theDOL

adopted rega app

sectors

ISIDr o

ro

APARm

pr

P to

issi

iat7;

s Mw a

ust

atrind

for th

ch seur c

aeiingon

sector but also the six ot

ii.

v.

draft Synthesis Matrix e an

edss

is lop

keh

p avelopent urastru

ctu

ledisheev

r

arcuse

d r

heit

ate

an

Inh krixnt

ge

terey

aan

f t

atstathm

he

ionkee an

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ah

baag

a

l Aoldsie

trix

dvers

s m

sor in mt o

es

DOisL

MaIDA

, t wMm

tocludioref loc

evng de effical inf

ynte d

s d

forenresources fo

7 LIDP (2061/2004) - cla 2: (i) Irrigation and River Co (ii) Micro Hydropower and Alterna nergy; (iii) Water Supply, Sewerag Sanitation; (iv) Housing, Buildin an Development; (v) Solid Wa gement; and (vi) Social Infrastructure.

use e and

ntrol;g and Urb

tive Este Mana

7


APPENDICES

1. il

2. The S

..

Deta s of the RTI SWAp documents: The Framework Document The Folders (19 no.)

ynthesis Matrix (November 2009)

8


Appendix (1): Details of RTI SWAp Documents

(A) THE FRAMEWORK DOCUMENT

• Foreword • Acronyms and Abbreviations

Table of Contents

• List of RTI SWAp Folders • Maps - (i) Regional; (ii) Nepal • Nepal – Country Data • Executive Summary

PART (1): CONTEXT AND VISION

. Introduction

3. Key Policie

. Social and Safeguards

PART (2): PLANNING, PROGRAMME, FUNDING AND INSTITUTIONS

Sector Planning and Maintenance, Key Indicators and RTI Programme

6. Budget and Medium Term Expenditure Framework (MTEF)

7. Institutional Arrangements, Development and Capacity Building

PART (3): KEY PROCESSES AND OVERSIGHT

8. Financial Management and Procurement

9. Governance, Accountability and Communications

PART (4): THE PARTNERSHIP

10. Implementation and Aid Coordination

11. Monitoring, Evaluation and Risk Management

1

2. Vision and Strategy

s and Legislation

4

5.

9


10

(B) List of RTI SWAp Folde s:

(1)

1. RTI Sub-Sector Strategy

2. Inclusion

3.

NG AND INSTITUTIONS

rformance,

8. RTI Sub-Sector Programme

9. RTI Medium Term Expenditure Framework

(3) KEY PROCESSES AND OVERSIGHT

11. Financial Management Strategy

12. Procure

13. Governance, Accountability and Anti-Corruption Strategy

14. Communications Strategy

(4) THE PARTNERSHIP

15. Aid Effectiveness

18. Joint Financing Arrangement 19. Risk Management Strategy ..

r

CONTEXT AND VISION

Gender Equality and Social

Safeguards – Environmental and Social (incl. Resettlement & Right-of-Way)

(2) PLANNING, PROGRAMME, FUNDI

4. RTI Planning

5. Maintenance Strategy

6. Technical Standards, Specifications and Norms

7. Sector Pe Monitoring and Evaluation

10. Institutional Development and Capacity Building

ment Strategy

16. Code of Conduct

17. Memorandum of Understanding


Appendix (2): The Synthesis Matrix

sl Key Outputs Key Activities Action by

Sources / References

1. INSTITUTIONAL AND ORGANISATIONAL FRAMEWORK OBJECTI . l i ng c M d , cipl u rVE 1 1: C arify ng and Updati Poli ies, an ates Prin es and A tho ity

1.1.1 Polic d

1. i ID 0 0 nd i f a a du n la s

2. u d o m s 3. e s s ; ally la h a I

ons o h, D A

DevePa s

LIDP – claus

MLD, ultatiOLIDlopmrtner

RevinclCircAm

ew Lding late

nd a

P (2ew craft fnece

61/2user cosary

04) a mentform

denti

unc

y are

upd

s for

ted L

men

DP

ing and for in cNPC

n witR an

ent

d Local Infrastructure Development e 7.11 y up ated

1.1.2 DC/DMand s a d agr

1. d ti m ties p dp ure e d

2. o p g ati3. a e polic le d h

b o 4. in D e n te cl g i

p a ut y5. e r ed resp bilitie orisatio re

d y years)

D anons o h

Muni it

1. LIDP – claus y; cl. 6.2.6 – mand able 1 (p.19)

(2003. ISAP 2.5 Effective LID

on po and accountabilit

4. RTI SWAp Fr work Document an er 10: Institutiona ening + Capacity Buil

5. LGCDP

e 6 - Policate; T7)

wers y; amed fold

l Strengthding

Revierural aPropIdentifconsuObtaprinciImplperio

w annd mse uy chlt on MLles

menticall

idenunicidatinngesest agrnd aevis(2-3

fy aal in + co

needptionemehorit

biguifrastructordind in

t on up onsi

or ga und

ng Manies, pri

dated Ma

s an

s inr LID

dates, ncip

nda

d auth

current manP anby ins an

s in

atesAP n ority,

polic

view

regard

and

es,

ing LIDS

stitutio aut

udin

ns;

2. LIDSAP

facilitatiMLin c

d DOLIDAR n witd ies

MLD. DOLIDAR and Dupd

TO eed

ultatiDDCs an

cipal

ate ted an

1.1.3

Local Infrastructure Development Strategic Action Plan (LIDSAP) updated

1. DSAP (2064/2007) and n reas fo e g d for d ew clauses

2. Circulate draft for comments 3. Amend as necessary; formally ue upda

ons on with + opment

LIDSAP current period is 2007/08 – 2009/10

Revieinclu

w LIing n

ide

re-iss

tify a r am

ted LIDSAP

ndin an DOLIDAR, ultati

DevelPartners

in cMLD

OBJECTIVE 1.2: Clarifying and Updating Deliv bles era

1.2.1 MLD. DOLIDAR and DDC Deliverables updated and agreed

1. As per updated Mandates in 1.1.2 above, review and identify all delivera les regarding rural and municipal infrastructure under LIDP and LIDSAP

2. Align existing and new Deliverables and propose adjusting Mandates, policies and authority as needed

3. Prepare matrix of updated Deliverables, by institution 4. Obtain MLD agreement on updated Deliverables

D and DOLIDAR ons on with

d Muni lities

LIDP – Table 1 (p.19); cl. 7.9 – Action Plans

LIDSAP RTI SWAp Framework

Document and folder 10

b MLin c ultati

DDCs ancipa

1.2.2 DOLIDAR Business Plan prepared, approved and implemented

1. Approve Business Plan framework methodology 2. Select Business Plan preparation team 3. Draft Business Plan taking note of updated and approved Deliverables;

obtain internal endorsement 4. Present to MLD and obtain endorsement 5. Implement, with monitoring by DOLIDAR Senior Mgmt

DOLIDAR ISAP 1.2 – rolling multi-year Business Plan

11


Key Outputs Key Activities Action by sl Sources / References

Effective co-or een core LID agencies and the line

1. Operationalise central a n committees 2. Coordinate planning an cal infrastructure sub-

sectors o ensure transfer and backstopping in consultation with

DOLIDAR

ntral

ISAP 1.5 – Effective LID coordination

dination betw

departments in place 3. Involve central ministries/agencies tof technical staff in DTOs

nd local coordinatiod operation of the lo

4. Review effectiveness periodically (2-3 years)

MLD and DDCs, LIDP – clause 7.3.2.1 – CeAgencies 1.2.3

1.2.4 Effective LID consultative and information mechanisms in place

1. tated public fora on rural development issues,

her local infrastructure assets, open to public inspection

M , with

LIDP – cl 6.4 – Donor harmonisation, cl. 7.6 -

Dissem. and opment

ISAP 1.6 – Effective Stakeholder

ications

Hold periodic GON-facilipriorities and local governance

2. Develop local information system to record RTI and ot

3. Ensure DTMPs and other sub-sector master plans are prepared and updated in a properly consultative manner

LD and DDCs in consultation

DOLIDAR

Information Mgmt + cl. 7.8 GESI Devel

support for LID RTI SWAp folder 13:

Governance and Accountability, and folder 14: CommunStrategy

1.2.5 Strategy (RTS) prepared, approved + adopted

5. tation with local stakeholders

h MLD and DOR

trategy Twenty-Year Rural Transport

1. Review existing draft RTS and align with DOR master plan for compatibility

2. Continue consultation with stakeholders, and finalise Submit for GON appr3. oval and funding

4. Review feedback, adjust or negotiate as appropriate Consult on implemen

DOLIDAR, In consultation wit

ISAP 1.7 – Long-term sfor local transport (infrastructure)

OBJE haCTIVE 1. 3: Clarifying and En ncing Organisational Structures, Roles and Functions

1.3.1 enhanced and operationalised for local infrastructure (rural and

2. Develop organiswith DOLIDAR

MLD structure, roles and functions

municipal)

rengthening MLD’s role in local ategic

ational structure for MLD’s consideration, coordinated

4.

MLD

licy; cl. 6.2.6 – Mandate; cl. 6.4 – Donor Coordination cl. 7.3.2.1 Central Agencies, and Table 1 (p.19)

1. Consult MLD on options for stinfrastructure policy-making, monitoring, oversight and strcoordination within government

role and structure 3. Present proposal to MLD and review feedback

Amend proposal if requested and use final version to inform DOLIDAR’s own re-organisation exercise (1.3.2)

LIDP – clause 6 - Po

ISAP 2.5 - Effective LID facilitation powers and accountability

1.3.2

DOLIDAR structure, roles and functions enhanced and operationalised for local

unicipal)

or approval

l as appropriate

y

DOLIDAR, in consultation with

MLD

view of

7.3.2.1 - Central Agencies, and Table 1 (p.19)

DAR infrastructure (rural and m

1. Communicate final proposal to DOLIDAR staff; obtain feedback and adjust as necessary

2. Present re-aligned DOLIDAR organisational proposal f(MLD / MGA / MOF)

3. Review feedback and adjust or negotiate proposa4. Implement organisation changes in an orderly manner 5. Monitor outcome of federalism decisions, emerging SWAps and ISAP

activities, and update IS strateg

LIDP – clause 6.2.5 – ReDOLIDAR organisation, cl.

ISAP 1.3 – Modernise DOLIstructure

1.3.3 icipalities structure, roles and functions enhanced and

Municipalities DOLIDAR, in consultation with

LIDP – clause 7.2 Management of projects, cl. 7.3.1 -

DDC and Mun 1. In the light of (1.1.2 and 1.2.1) above, review DDC and plans to meet LSGA requirements

12


Key Outputs Key Activities Action by Sources / References sl

operationalised for local infrastructure (rural and municipal)

nd monitor

v. needs

MLD, DDCs and Municipalities

Coordination, cl.7.3.2.2 Local

s

2. Implement GON decisions on new LID field organisation aresults progressively

3. Conduct periodic reviews of DDC functions, capacities and deBodies

ISAP 1.4 - Sustainable devolution of LID roles and resource

1.3.4

DTO structure, roles and functions established and operationalised for local infrastructure (rural +

g DTO within DDC structure plans to meet LSGA requirements

DOLIDAR, MLD, DDCs and

rmation ctions, cl 7.1.2

mmes, cl.

e

municipal)

1. Present proposal for re-aligning and renamin

2. Implement GON decisions on new LID field organisation and monitor results progressively

3. Backstop DTOs and ensure technical quality is maintained 4. Conduct periodic reviews of DTO functions, capacities and

development needs.

Municipalities

1. LIDP – clause 6.2.2 Foof technical seMunicipal level progra7.1.3 – District level programmes, cl. 7.2 Project identification and implementation, and cl. 7.3.2.4 – Rural Engineering Unit

2. ISAP 1.4 - Sustainabldevolution in LID roles and resources.

OBJECTIVE 1. 4: Optimising Capaciti aes nd Human Resources

1.4.1 Human Resources Development Division established and

al and

office space, IT

n Committee Capacity Building

ring and ng Group

4. e


MLD

e 7.3.2.3 Capacity enhancement of Local Bodies

OD Consultant’s Report (Aug 2009)

B operational (IS/CB) Working Group, and (b) Sector Performance Monito

1. Present proposal (part of 1.3.2 above) to MLD and obtain approvbudget; Amend or negotiate changes as needed

ision; assign2. Assign or appoint staff to new HRD Divand other assets required

3. Under new RTI SWAp Implementation Coordinatio(RSICC), establish (a) Institutional Strengthening +

Evaluation (SPME) Working Group, and (c) Information Worki(IWG) Prepare/update HRD Plan (taking into account 1.4.6 below) and sharwith MLD and Development Partners for approval and funding;

5. Implement HRD Plan

LIDP – claus

RTI SWAp folder 10: IS & C

1.4.2 Effective outcome-oriented HRD

s

performance-based ice esses


LIDP – clause 7.3.2.4 HRM and

and HRM policies and processein place and operational

1. Review progress and lessons learned to date of‘Governance Reform Initiative’ (GRI) underway in public serv

2. Initiate small task force (TF) to review staff assessment procagainst LID performance needs

3. TF study of GON-endorsed GRI outputs on staff performance management for DOLIDAR application

4. TF to prepare strategy and phased action plan to implement GRI-endorsed performance management initiatives in DOLIDAR; obtainMLD approval

5. Implement enhanced DOLIDAR staff performance management process

MLD

HRD ISAP 9.1 – HRD and HRM

policies and processes in DOLIDAR

1.4.3 Performance- (or Results-) based management (P/RBM) approach

1. In parallel with 1.4.2 above, Task Force to review DOLIDAR’s BusinesPlan and see how a P/RBM approach should be applied

s DOLIDAR, in consultation with

LIDP – clause 7.3.2.4 HRM and HRD

13



applied 2. TF to prepare P/RBM approach paper including possible action plan fosenior management’s consideration; amend accordingly

r AR

3. Implement P/RBM approach (coordinated with 1.4.2)

MLD ISAP 9.1 – HRD and HRM policies +processes in DOLID

RTI SWAp folder 10: Institutional Strengthening + Capacity Bldg.

1.4.4

Adequate staff, budgetary and physical resources available to

1. Prepare realistic, sustainable DOLIDAR long-term ‘core functions’ manpower and resources strategy including outsourcing, aligned with

MLD and DOLIDAR a. t and resources carry out DOLIDAR’s core

functions effectively

organisational structure (1.3.2) 2. Submit for GON approval and funding 3. Receive feedback and amend or negotiate adjustment as appropriate 4. Transfer, promote or recruit staff in an orderly manner 5. Budgetary resources available for DOLIDAR for operations

ISAP 2.5 – Adequate staff, operating budge

1.4.5

gement leadership and effectiveness enhanced to meet amended Mandate and Deliverables

velopment

2. uding on-going support; obtain feedback and re-assess periodically

3. Evaluate SMDP results (2-3 years) and improve programme

DOLIDAR and MLD gement

d

Senior mana 1. Develop a new DOLIDAR and MLD Senior Management DeProgramme (SMDP), and obtain approval Deliver the SMDP incl

ISAP 9.3 – Senior Manaprogramme in DOLIDAR anMLD

1.4.6

nd TNA-based training

held under a coherent HRD framework

-led Training Policy

5. D

ng

colla n with current RTI projects

TNA-based training Demand-driven core skillssustained a

1. Review implications of MLD2. Prepare a coherent, coordinated HRD framework for identifying and

addressing key skills enhancing needs, initiatives and resources – centrally, regionally and locally

3. IS/CB Working Group to explore opportunities for coordination, collaboration and pooling

4. Under the HRD framework, design a rolling multi-year 'Core Skills' upgrading programme (see 2.1 + 2.2 below), based on recent or updated Training Needs Analyses (TNA) Implement the rolling multi-year 'Core Skills' programme Monitor trai6. ning delivery and periodically assess training impacts on LIperformance and outcomes Assess and update TNA (2-3 years) as needed 7.

8. Implement GON decisions on regional training facilities 9. Independent assessment to be held every two years on the scope,

quality and impact of HRD Plan and the rolling “Core Skills” upgradiprogramme

DOLIDAR, in boratio ISAP 9.2 –

and HRD programmes

2. STRATEGY OBJECTIVE 2. 1: Strengthening and Sus rocesses taining Core P

2.1.1 Effective programme and project management processes and y issues regarding current programme and project management


ISAP 2.1 – Effective project management

capacity strengthened

1. IS/CB Working Group (see 1.4.1 above) to re-assess quality and deliverprocess and capacities DDCs and RTI SWAp folder 8: RTI

14



2. IS/CB Working Group recommends improvements to the LID programme + project management processes, including effective data

LIDflows between PM and FM systems, and seeking DODDCs’ concurrence

AR and

4. edule to be held centrally,

Munici s, with colla n from

RTI projects

I/S

3. Draft concise programme + project management process manuals including information system requirements Design a consensus P&P Management module for the “Core Skills” programme (1.4.6) including events schregionally + locally

module in most 5. Obtain commitment or funds for delivering P&P Mgmt efficient manner, including follow-up; deliver training

6. Monitor quality and added value, and adjust module accordingly

palitieboratio

Programme and folder 10: and Capacity Bldg

2.1.2 Effective planning process and

nd

e

pal

e Skills” programme gionally and

. ity of delivery and adjust module accordingly


MLD, DDCs + Municipalities, with

LIDP – clause 6.3 - Local Planning; cl. 6.5.5 + 6.5.6, and cl. 7.1 + 7.2 – Local Dev. Programme + Planning

ISAP 3 – Planning process capacity strengthened

1. Review the sectoral and geographical co-ordination of planning activities by DDCs and Municipalities

2. MLD and SPME Working Group (see 1.4.1 above) to re-assess quality and delivery issues regarding sector-wide planning process acapacities, not just DTMP process

3. SPME Working Group recommends improvements to the sector-widLID planning process and information system including consolidated coordination of LBs’ planning process, for endorsement

4. Complete updating of DTMP Manual incorporating latest criteria including greater accessibility, issue with awareness raising and training events

5. Prepare or update manual(s) for planning other sectors; Pilot integration of DTMPs with other sectoral plans at DDC and Municilevel

6. Promote and monitor integrated district planning aligned with medium term expenditure framework approach

7. Design a consensus Planning module for the “Cor(1.4.6) including events schedule to be held centrally, relocally

8. Obtain commitment or funds for delivering Planning module in most efficient manner, including follow-up Monitor qual9

collaboration from RTI projects

RTI SWAp folder 4: RTI Planning, + folder 7: Sector Performance M&E

2.1.3 and poverty alleviation processes wide LID planning process a

Effective GESIdeve

, social lopment, social mobilisation

Review ongoing enhancement of participatory development, including GESI, in planning activities by DDCs and Municipalities

2. MLD and SPME Working Group (see 2.1.2.above) to assess quality and delivery issues regarding sensitivity and responsiveness of sector-

nd capacities ty


DDCs and Municipalities, with c m

LIDP – clause 6.5- Inter-related Matters, cl. 7.2.2.6 – Social Audit, and cl. 7.8 GESI Development

ISAP 5 –Social Dev. Social

nd and capacity strengthened

1.

3. SPME Working Group recommends improvements to the sensitiviand responsiveness of sector-wide LID planning process and capacities, for endorsement

ollaboration froRTI projects

Mobil. + Poverty Alleviation RTI SWAp folder 2: GESI, a

folder 3: Safeguards

15



4. In close coordination with the Planning module in 2.1.2 above,consensus Sensitivity + Responsiveness module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally + locally

design a

5. Obtain commitment or funds for delivering Sensitivity and Responsiveness module in most efficient manner, incl. follow-up

6. Monitor quality of delivery and adjust module accordingly

2.1.4 Effective environmental safeguard process and capacity strengthened

ding es

and

st r-wide


DDCs and Municipalities, with collaboration from

RTI projects

LIDP – clause 6.3.4 - LEP approach, cl. 7.2.1 – Environ. evaluation + EIA

ISAP 6 – Environmental Issues RTI SWAp folder 11: Financial

Mgmt, and folder 13: Governance and Accountability

1. Review ongoing implementation of full application of environmental functions in LID planning/activities by LBs

2. Complete uniform Guideline for environmental mgmt 3. Obtain GON approval for improved LID environmental appraisal

framework / process ar4. SPME Working Group to assess quality and delivery issues reg

environmental responsiveness as per ESMF in LID-related processand capacities

5. Design a consensus ESMF module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally locally

6. Obtain commitment or funds for delivering ESMF module in most efficient manner, including follow-up

7. Implement approved ESMF on all LID projects; monitor and adju8. Implement new LID environment monitoring database with secto

coverage;

2.1.5

Effective procurement management and contract administration process and capacity strengthened

to be held



RTI projects

ISAP 2.2 – Effective procurement + contract management

RTI SWAp folder 12: Procurement Strategy, and folder 13: Governance and

1. Review ongoing application of procurement manuals in LID planning/activities by LBs; Complete updating of uniform Guideline - procurement and contract administration

2. Review information management linkages with FMS; propose improvements to information system (see 2.2.4)

3. Obtain approval for improved Procurement Guideline 4. IS/CB Working Group to assess quality and delivery issues regarding

procurement and contract administration in LID-related processes and capacities

5. Design a consensus Procurement and Contract Admin. module for the “Core Skills” programme (1.4.6) including events schedulecentrally, regionally + locally

6. Obtain commitment or funds for delivering Procurement and Contract Administration module in most efficient manner, including follow-up

LIDP – clause 7.2.1 – Project Formulation, and Table (1) (p.19)

Accountability

2.1.6 thened

3. i

et and

w Effective financial management process and capacity streng

1. Monitor compliance at the local level of Local Bodies FAR as updated and approved

2. MLD and IS/CB Working Group to assess quality and delivery issuesregarding financial management process and capacities Design a consensus Financial Management module for the “Core


MLD and MOF, and n collaboration with

RTI projects

LIDP – clause 7.4 BudgFund Operation

ISAP 8.2 – Effective funds floand financial management

RTI SWAp folder 11: Financial

16



Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally Obtain commitment or funds for delivering Financial Management module, including follow-up; implement, monitor and adjust as need

4. ed

gations and

dically

Mgmt, and folder 13: Governance and Accountability

5. Implement modernised FM policy, guidelines, powers, deleauthorisations in DOLIDAR and DDCs with support as needed

perio6. Monitor and assess the revised FM operations and resultsagainst LID needs; implement improvements

2.1.7 Effective monitoring and evaluation process and capacity strengthened

1. SPME Working Group to review RTI SWAp folder 7: Sector Performance Monitoring & Evaluation, and determine how to harmonise

3.

or align current progress monitoring of RTI 2. SPME Working Group to re-assess quality and delivery issues

regarding LID-related monitoring and evaluation processes, informationsystem and capacities SPME Working Group to recommend improvements to the SPME information system

4. Design a consensus SPME module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally

5. Obtain commitment or funds for delivering SPME module in most efficient manner, including follow-up

6. Re-align and implement SPME on all LID projects 7. Monitor and assess the SPME operations and results periodically

against LID needs; implement improvements


MLD, NPC, DDCs and Municipalities, with collaboration from RTI projects

LIDP – clause 7.2.2.3 – M&E, and cl.7.2.2.4- Position Report

ISAP 4.1 – Monitoring + Evaluation

RTI SWAp folder 7: Sector Performance M&E, and folder 19: Risk Management

2.1.8 y strengthened

ing em and

RTI projects

e 7.2.2.4 Position – 3rd

keholders’

y,

Communications Strategy

Effective communications process and capacit

1. MLD and IS/CB Working Group to review RTI SWAp folder (14): Communications Strategy, and determine how to harmonise or align current RTI-related communications

2. IS/CB Working Group to assess quality and delivery issues regardLID-related communications process, information systcapacities

3. IS/CB Working Group to recommend improvements to the information system for better communications

4. Design a consensus Communications module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally

5. Obtain commitment or funds for delivering Communications module in most efficient manner, including follow-up

6. Implement communications strategy on all LID projects 7. Monitor and assess the communications operations and results

periodically against LID needs; implement improvements


MLD, DDCs + Municipalities, with collaboration from

LIDP – clausReport and cl. 7.2.2.5Party Audit ISAP 1.6 – Stasupport RTI SWAp folder 13: Governance + Accountabilitand folder 14:

2.1.9 capacity strengthened Effective audit process and 1. MLD and IS/CB + SPME Working Groups to review RTI SWAp folders

(7): Sector Performance Monitoring and Evaluation, (11): FinancialDOLIDAR, in

consultation with b. LIDP – clause 7.2.2.4 Position

Report cl. 7.2.2.5 – 3rd Party

17



Management, (13): Governance and Accountability, and see howharmonise or align current audit function at different levels

to

rd party

7.

MLD, OAG, NVC, DDCs and

Municipalities, with collaboration from

RTI projects

Social

c. functions

d. RTI SWAp folder 7: Sector Performance Monitoring and Evaluation, folder 11: Financial Management, folder 13: Governance and Accountability

2. Joint Working Groups to re-assess quality and delivery issues regarding LID-related audit process, information system and capacities

3. Joint Working Groups to suggest improvements to the information system for better auditing

4. Design a consensus Audit module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally

5. Obtain commitment or funds for delivering Audit module in most efficient manner, including follow-up

6. Implement enhanced audit function on all LID projects, using thitechnical audits Monitor and assess the audit operations and results periodically against LID needs; implement improvements

Audit and cl. 7.2.2.6 –Audit ISAP 8.1 – Enhanced audit

OBJECTIVE 2. 2: Strengthening Key Systems

2.2.1

Comprehensive and efficient information and communication technology (ICT) assets for LID functions in place

’s

MIS,

iatives in MLD and d

al and

5.

6. Ap seven



RTI projects

LIDP – clause 7.6– Information Mgmt and Dissemination

ISAP 10 – Information Systems RTI SWAp Framework

Document, and elaborated in various folders

1. Appoint Information Manager with a full understanding of the functionimportance, to lead the MIS/ ICT Section in DOLIDAR

2. Establish Information Working Group (IWG) in DOLIDAR to steer GIS and other responses to information needs

3. IWG to develop plan(s) to extend present IT/ICT initDOLIDAR to achieve full ICT capability, with extension to DDCs anMunicipalities

4. Submit proposed ICT strategy, action plan and costing for approvfunding; Procure and commission the necessary ICT equipment or enhancements and linking to the current system and sub-systems at different levels, starting with DOLIDAR and MLD Roll out enhancements to DDCs, starting with the RTI SWpilot districts and those DDCs served by existing RTI projects if possible

2.2.2

Comprehensive MIS to support MLD, DOLIDAR and DDC/Municipal planning, management and reporting processes

ent

2. tract

LD,

h

th MLD, DDCs +


RTI projects

ISAP 10 – Information Systems RTI SWAp folder 4: RTI

Planning, + folder 7: Sector Performance M&E

1. Conduct study under IWG to define main LID programme managemdata needs, collection process, structuring and output requirementsReview systems developed or used by existing RTI projects and ex“best practices” and lessons learned

3. IWG to review completed study on GIS needs assessment and scoping in MLD, DOLIDAR and DDCs/Municipalities

4. Prioritise appropriate ‘decision-support’ needs and options for MDOLIDAR and DDCs/Municipalities respectively

5. Fund and institutionalize the approved system including GIS, using botinternal and outsourced technical resources

DOLIDAR, in consultation wi

LIDP – clause 7.6– Information Mgmt and Dissemination

18



6.

M&E

Implement MIS development and GIS strengthening, including interfaces with LID programme management and M&E system

7. Phased, prioritised implementation of enhanced MIS, GIS and systems and assets in MLD, DOLIDAR, DTOs and DDCs/Municipalities with appropriate manuals and training

2.2.3 Efficient and compliant management of accountable assets in LID programmes

nd

2.

5. le for the “Core Skills” programme ) including events schedule to be held centrally, regionally and



RTI projects

Operation, Repair + Maintenance, and cl. 7.6 – Information Mgmt and Dissemination

ISAP 7 – Maintenance, ISAP 8 – Fin Mgmt and Accountability

RTI SWAp folder 4 : RTI Planning, folder 5: Maintenance Strategy, + folder 11: Financial Management

1. IWG to review road network inventory, condition survey and asset database plus asset tracking system being developed on projects aextract “best practices” MIS for rural roads is being developed/updated with linkage to spatial information (GIS) to establish the road/RTI asset management system

3. IWG to review consultancy outputs to develop IT-based, internet-friendly General Asset Management) System (GAMS) for DOLIDAR’s and DDC/Municipalities’ purposes

4. Decide on scope, specification, schedule, budget and technical support for LID multi-sector GAMS; Seek approval and funding Design a consensus GAMS modu(1.4.6locally

6. Obtain commitment or funds for delivering GAMS module in most efficient manner, including follow-up

7. Introduce effective IT-supported Asset Management System in DOLIDAR, DTOs and DDCs/Municipalities, with appropriate manuals and training

LIDP – clause 7.2.2.2 –

2.2.4 Efficient portfolio-wide Financial Management System (FMS) implemented in DOLIDAR.

1.

al

4.

on,


MLD and MOF, and in collaboration with

LIDP – clause 7.2.2.4 Position Report and cl. 7.2.2.5 – 3rd Party Audit

ISAP 8.3 – FMS in DOLIDAR RTI SWAp folder 11: Financial

IS/CB Working Group to review RTI SWAp folder 11: Financial Management, and undertake study to identify and assess present FM tools and resources in DOLIDAR and DDCs/Municipalities, and then determine future FMS scope

2. Ascertain the “best practices” and lesson learned from the current projects and systems

3. Decide on scope, scope, specification, schedule, budget and technicsupport for LID multi-sector FMS; Seek approval and funding Initiate DOLIDAR development of FMS per agreed specifications, budget and schedule using internal and/or external technical support

5. Design a consensus FMS module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally Obtain commitment or funds for del6. ivering FMS module in most efficient manner, including follow-up Implement pilot(s) for FMS in MLD and DOLIDAR, 7. with documentatitraining and other support Roll out nationwide DOLIDAR and DDCs/ Munici8. palities’ implementation of networked FMS operations

RTI projects Management, and folder 13: Governance and Accountability

19



2.2.5 Effective RTI maintenance system strengthened

CC fter

t

us

11.


LIDP – clause 6.3.6 – ; cl

pair and

I

1. Establish a Maintenance Working Group (MWG) under the RSI2. Review/update Rural Roads Maintenance Technical Handbook a

feedback has been received from stakeholders 3. Design a consensus Maintenance module for the “Core Skills”

programme (1.4.6) including events schedule to be held centrally, regionally and locally

4. Obtain commitment or funds for delivering Maintenance module in mosefficient manner, including follow-up

5. Ensure regular planning and budgeting for LID maintenance integratedwith funding cycles of the GON and of the Nepal Roads Board (NRB) inparticular

6. DOLIDAR to monitor the establishment of the mandatory District Rural Roads Maintenance Fund (DRRMF)

7. Support LBs to establish annual RTI and other LID maintenance plans, based on updated asset register and condition surveys

8. DOLIDAR to coordinate annual rural roads funding input to NRB’s annual maintenance plans

9. Facilitate strengthening of district-level capacity to implement new policy, standards and Manual provisions

10. Review periodically (2-3 years) Rural Roads Maintenance Directives finalized, approved and enforced from FY 2008/09, for continuoimprovement Monitor districts’ implementation of revised national rural road maintenance policy and standards

MLD, DDCs + Municipalities, withcollaboration from

RTI projects

Maintenance Action Plan7.2.2.2 – Operation, ReMaintenance ISAP 7 – Maintenance RTI SWAp folder 4 : RTPlanning, folder 5: MaintenanceStrategy, and folder 9: Medium

Term Expend Framework

2.2.6 Effective quality assurance (QA)

le in


LIDP – clause 6.2.8 - Quality Stands, cl. 7.2.2.1 – Quality Assurance Plan, and cl. 7.3.2.1

gmt. Ap folder 5: system strengthened

1. IS/CB Working Group to review quality assurance (QA) systems developed or used by existing RTI projects and extract “best practices”and lessons learned

2. Develop a QA framework and guidelines 3. Design a consensus Quality Assurance module for the “Core Skills”


4. Obtain commitment or funds for delivering Quality Assurance modumost efficient manner, including follow-up

5. Deliver QA capacity building and reinforce 6. Establish QA Centre in DOLIDAR with expertise to be available to

advise and assist DDCs and Municipalities 7. Ensure QA results and issues are fed into the review and update

process of LID technical standards, specifications and norms

MLD, DDCs + Municipalities, withcollaboration from

RTI projects

– Establish Tech. Standards ISAP 4.2 – DOLIDAR QA mRTI SWMaintenance Strategy, and folder 6: Technical Standards, Specifications and Norms

2.2.7 Effective disaster response system strengthened LD,

DOLIDAR, in consultation with other ministries +

agencies

LIDP – clause 7.3.2.1 Central

Agencies (disaster mitigation) ISAP 2.3 – Disaster

1. Identify appropriate roles and responsibilities within MLD, DOLIDAR, DDCs and Municipalities

2. Finalise comprehensive DIA and DM (LID) framework in MDOLIDAR, DTOs and DDCs

20



3. Design a consensus Disaster Response and Management (DRM) module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally

4. Obtain commitment or funds for delivering Disaster Response aManagement module in most efficient manner, including follow-up Deliver DRM capacity building and reinforce

nd

5.

Management

6. Implement comprehensive DIA and DM (LID) framework in MLD, DOLIDAR, DTOs and DDCs/Municipalities

2.2.8 ystem strengthened

2.

ith co m RTI projects

6.2 – Institutional

acity

ilding

Effective human resources management (HRM) s

1. DOLIDAR and IS/CB Working Group to identify best practices in HRM systems from existing projects With input from national HRM experts, prepare a coherent and sequenced system development/upgrading action plan, with close consultation with the Information and Communication Section

3. Obtain approval and funding for HRM system development or upgrading

4. Develop user manual and prepare an appropriate training course wfollow-up and backstopping

5. Implement HRM system development or upgrading 6. Monitor and adjust as required


MLD, DDCs + Municipalities, with

llaboration fro

LIDP – clauseStrengthening and CapBuilding ISAP 9.1 – HRD + HRM RTI SWAp folder 10: Inst. Strength and Capacity Bu

OBJECTIVE 2.3: Prioritising and Applying Resources and Support Effectively

2.3.1 Level of resources and support meeting agreed priorities

1.

2. ss Plan and operating budget to t

3. t

ets;

R’s progress and

,

ess

DOLIDAR to prepare annual Business Plan and operating budget in consultation with existing RTI projects on coordinated inputs DOLIDAR to submit annual BusineMLD for approval and funding; additional inputs from DevelopmenPartners to be confirmed DOLIDAR to allocate resources to Divisions + Sections, including funding for outsourcing and contracting ou

4. DOLIDAR Senior Management to monitor progress of each Division and Section against their respective prioritised work-plans and budgHold quarterly reviews

5. Specific issues and constraints to be addressed in the regular meetings of the IS/CB Working Group

6. RSICC meetings to be informed of DOLIDAconstraints; Additional inputs may be requested

7. DOLIDAR to make end-of-year presentation on progress against Business Plan and also outlook for the coming year

8. Independent assessment to be held every two years on the scopequality and impact of HRD Plan and the rolling “Core Skills” upgrading programme (see 1.4.6 above) including level or resources and support


MLD, DDCs, Municipalities + Development

Partners

ISAP 9.1 – HRD + HRM, and 9.2 – Budget for HRD RTI SWAp folder 10: Inst. Strength and Capacity Building, and folder 15: Aid Effectiven

2.3.2 All project-based institutional strengthening and capacity

n, 1. MLD and Development Partners to commit to closer coordinatiocooperation and collaboration at the first RTI SWAp Advisory


LIDP – clause 6.4 – Donor cl. 7.5.1 Harmonisation, and

21


22

sl Key Outputs Key Activities Action by

Sources / References building activities better coordinated on

cular ap and

Group

6. e as

existing RTI projects + Development

Partners

mong Donors RTI SWAp folder 10: Inst.

Strength and Capacity Building, and folder 15: Aid Effectiveness

Committee (RSAC) meeting in 2010 2. DOLIDAR to chair the RSICC meetings addressing broad coordinati

issues, 3. DOLIDAR to chair both the IS/CB Working Group and the IWG, to

address operational issues, constraints and opportunities are a rolling multi-year 4. DOLIDAR and IS/CB Working Group to prep

‘Core Skills’ upgrading programme (see 1.4.6 above), paying partiattention to maximising value by reducing redundancy and overlby seeking out opportunities for collaboration and pooling

5. DOLIDAR to report progress on the HRD Plan (see 1.4.1) and the “Core Skills” programme at the meetings of the IS/CB Working and the RSICC Make adjustments to the HRD Plan and the “Core Skills” programmrequired

Coordination aISAP 9.1 – HRD + HRM

2.3.3 Human resources utilisation and effectiveness enhanced

more representative districts and municipalit4. Assess how well the review process is fit-for-purp

1. DOLIDAR and IS/CB Working Group to determine indicators and targets for monitoring quality, delivery and value for money of HRD Plan and rolling “Core Skills” upgrading programme

2. Devise a review process that will capture human res the agreed indicators a

ource utilisation nd targets

ocedures in DOLIDAR and in five or ies

w

6.

ary,

DOLIDAR and MLD, in consultation with

existing RTI projects + Development

Partners

ISAP 9.4 – Manpower utilisation and effectiveness review

RTI SWAp folder 10: Inst. Strength and Capacity Building, and folder 15: Aid Effectiveness

and effectiveness, incorporating3. Pilot the review process and pr

ose, and make adjustments Stakeholders to agree schedule and budget for rolling out the revi5. eprocess nationwide Implement review process, with DOLIDAR to present findings at the meetings of the IS/CB Working Group and the RSICC

7. Adjust HRD Plan, “Core Skills” upgrading programme and if necessDOLIDAR’s Business Plan as needed

..


23






A ROAD MAP

FOR

INSTITUTION STRENGTHENING AND CAPACITY BUILDING (2010 – 2014)



Kathmandu

18 December 2009


i

ACRONYMS AND ABBREVIATIONS ADB Asian Development Bank AOTA Advisory and Operational Technical Assistance CFAA Country Financial Accountability Assessment COC Code of Conduct DAG Disadvantaged Group(s) DDC District Development Committee DDF District Development Fund (D)DG (Deputy) Director-General DfID Department for International Development (UK) DOLIDAR Department of Local Infrastructure Development and Agricultural Roads DOR Department of Roads DP Development Partner(s) DPMAS District Poverty Monitoring Analysis System DRILP Decentralised Rural Infrastructure and Livelihoods Project DRSP District Roads Support Programme DTCO District Treasury Controlling Office DTMP District Transport Master Plan DTO District Technical Office FAR Financial Administration Regulations FCGO Financial Comptroller-General’s Office FMIS Financial Management Information System GESI Gender Equality and Social Inclusion GIS Geographical Information System GON Government of Nepal GTZ Gesellschaft für Technische Zusammenarbeit (Germany) HRD Human Resources Development HRDAC Human Resources Development Advisory Committee HRD/M Human Resources Development/Management IA (ISAP) International Advisor IRAP Integrated Rural Accessibility Planning IS (ISAP) Institutional Specialist ISAP Institutional Strengthening Action Plan ISP Institutional Strengthening Project JICA Japan International Cooperation Agency JSCRI Joint Steering Committee on Rural Infrastructure ICT Information and Communication Technology (I)NGO (International) Non-governmental Organisation IRAP Integrated Rural Accessibility Planning ISAP Institutional Strengthening Action Plan ISP Institutional Strengthening Project Km Kilometre LBFAR Local Bodies Financial Administration Regulations LBT Labour-based Technology LDO Local Development Officer LEP Labour-based Environment-friendly and Participatory LGCDP Local Government and Community Development Programme LGSA Local Self-Governance Act LID Local Infrastructure Development LIDP Local Infrastructure Development Policy LIDSAP Local Infrastructure Development Strategic Action Plan LRN Local Road Network MC/PM Minimum Conditions / Performance Measures M&E Monitoring and Evaluation MIS Management Information System MLD Ministry of Local Development


ii

MOF Ministry of Finance MOU Memorandum of Understanding MPPW Ministry of Physical Planning and Public Works MTEF Medium Term Expenditure Framework NDF National Development Forum NPC National Planning Commission NR Nepali Rupees NVC National Vigilance Centre OAG Office of the Auditor-General O&M Operations and Maintenance PAF Performance Appraisal Framework PCU Programme or Project Co-ordination Unit PD Pooling Donors PDR Priority District Road PEFA Public Expenditure and Financial Accountability PFM Public Financial Management PICC Project Implementation Co-ordination Committee PMAS Poverty Monitoring Analysis System PMS Poverty Monitoring Section QA Quality Assurance QMS Quality Management System RAIDP Rural Access Improvement and Decentralisation Project RAP Rural Access Programme RBM Results-based Management RBG Road Building Group RBN Roads Board Nepal RI Rural Infrastructure RRMF Rural Roads Maintenance Fund RRRSDP Rural Reconstruction and Rehabilitation Sector Development Programme RTI Rural Transport Infrastructure RTISSP Rural Transport Infrastructure Sub-Sector Programme SDC Swiss Agency for Development and Co-operation SMART Specific, Measurable, Attainable, Relevant, Time-bound SMDP Senior Management Development Programme SOI Statement of Intent SRN Strategic Road Network SSS Sub-sector Strategy SWAp Sector-wide Approach TA Technical Assistance TB Trail Bridge(s) TBSSP Trail Bridges Sub-sector Project TNA Training Needs Analysis or Analyses TOR Terms of Reference TSU Technical Support Unit TYIP Three-Year Interim Plan (2007/08 – 2009/10) US$ United States Dollar VDC Village Development Committee WB World Bank WFP World Food Programme


iii

EXECUTIVE SUMMARY

The Government of Nepal (GON) divided the development of infrastructure between the strategic or central level and local level. Within the Ministry of Local Develop (MLD), the Department of Local Infrastructure Development and Agricultural Roads (DOLIDAR) is the responsible agency for central and local level coordination, guidance and management of the local infrastructure development. The Asian Development Bank (ADB) approved grant-financed Advisory and Operational Technical Assistance (AOTA) in September 2004 as being "piggy-backed" on to the loan for the Decentralized Rural Infrastructure and Livelihood Project (DRILP), in order to strengthen DOLIDAR’s technical and institutional capacity in view of its pivotal role in the local infrastructure development (LID). The institutional strengthening of DOLIDAR is supported in an integrated way by the major current externally-assisted projects in the LID sector. There continue to be significant changes in the general political environment in Nepal since the launch of the ISAP. Federalism, devolution and decentralisation remain very topical and will have an impact on the role and functions of MLD and DOLIDAR in future. A major thrust of GON has been to encourage moves towards sector-wide approaches (SWAp) in key sectors. The first sub-sector taken forward under LIDP has been rural transportation (infrastructure) (RTI) including a Trail Bridges SWAp as a subsidiary initiative that will be absorbed into the RTI SWAp fully in time. A major task for DOLIDAR has been to review how successful the various strands and sources of capacity building have been to date, and to analyse what further institutional, organisational and capacity improvements are required.

This Road Map addresses the institutional, organisational and capacity improvements necessary for DOLIDAR to carry out its designated functions as facilitator of the LIDP (2016/2004). It is based upon the ISAP Progress and Review1 and the subsequent Synthesis of institutional, organisational and capacity needs2. The essence of the proposal is that the three fundamentals of Institutions, Organisations and Capacities are necessary but not sufficient by themselves. Rather they lay the foundations for the Strategy that ensures the Deliverables are achieved, and at the heart of the Strategy lay core processes, key systems and resources plus support. The overall framework starts with Stream One namely the reviewing and updating policies, mandates and deliverables, then proceeding to appropriate re-organisation and alignment at different levels, as well as tackling human resources development and management in a strategic manner. In parallel but taking cognizance of the Stream One work as it progresses, Stream Two addresses core processes and key systems, determining how best to enhance them as well as build capacity to run and sustain them over time. The final element is looking at how well the planning and use of all available resources is managed, and whether opportunities for existing RTI projects to coordinate, collaborate and pool are exploited. The timeframe is five years (2010 – 2014), divided into short-term (years One and Two) and medium-term (years Three to Five). Active involvement of existing RTI projects is vital from the outset, coordinated through three working groups. Given the broader sub-sectoral coverage, it will be necessary for DOLIDAR to convene a HRD Advisory Committee (HRDAC) with MLD, other agencies, DDCs and Municipalities, and Development Partners.

Outline costs have been estimated for the initial interventions that will allow the government to scope, design and cost a complete five-year programme, incorporating support both from existing RTI projects and additionally from development partners. Some activities are considered as normal running costs covered by government or projects. Others will require time-bound local consultancies of a short-term nature, requiring travel to a representative sample of districts and municipalities, as well as holding workshops and publishing revised policy documents. In summary, the estimated costs for critical, enabling interventions are:

• Stream One: Institutional and Organisational Framework - US$ 330,000

• Stream Two: Strategy - US$ 2,195,000

US$ 2,525,000

1 PJ Shah: ISAP Progress and Review (November 2009) 2 MP Dalton: DOLIDAR Institutional Strengthening - A Synthesis of Needs and Opportunities (Nov 2009)


iv




2. A Synthesis of Needs and Opportunities

3. The Road Map – A Strategic Response

4. Key Details


1. Details of the RTI SWAp documents: a. The Framework Document b. The Folders (19 no.)

2. The Road Map matrix including bar-chart 3. Results Framework: Indicators and Means of Verification 4. Outline Cost Estimate

..


1

1. INTRODUCTION AND BACKGROUND 1.1 Introduction

The Government of Nepal (GON) divided the development of infrastructure between the strategic or central level and local level. Within the Ministry of Local Develop (MLD), the Department of Local Infrastructure Development and Agricultural Roads (DOLIDAR) is the responsible agency for central and local level coordination, guidance and management of the local infrastructure development. The Asian Development Bank (ADB) approved grant-financed Advisory and Operational Technical Assistance (AOTA) in September 2004 as being "piggy-backed" on to the loan for the Decentralized Rural Infrastructure and Livelihood Project (DRILP), in order to strengthen DOLIDAR’s technical and institutional capacity in view of its pivotal role in the local infrastructure development (LID). The institutional strengthening of DOLIDAR is supported in an integrated way by the major current externally-assisted projects in the LID sector.

The Institutional Strengthening Action Plan was formulated in 2004 and approved in January 2005. Among it key tasks was proposed the establishment of an Institutional Strengthening Project (ISP) in DOLIDAR to host and coordinate the activities under the ISAP. A unit was officially launched in November 2006, whose objective has been to coordinate institutional strengthening support provided by different agencies covering amongst others, planning, implementation and monitoring of institutional strengthening activities.

1.2 The Institutional Strengthening Action Plan

The ISAP focuses primarily on issues relating to DOLIDAR and its structure and core activities at different level. In the Inception Report3 the ISAP was structured over a timeframe of three periods namely (i) short-term: 2005 – 2008; (ii) medium-term: 2008 – 2011, and (iii) long-term: 2011 onwards. The Plan is comprised of a comprehensive matrix of development outputs and activities, relating to:

1. Business Strategy and Framework, 2. Core Processes, 3. Planning Processes, 4. Monitoring and Evaluation, 5. Social and Poverty Alleviation Issues, 6. Environmental Issues, 7. Maintenance of Road Networks, 8. Financial Management and Accountability, 9. Human Resources Development and Management, 10. Information Systems, and 11. Partnerships.

Subsequently, a twelfth component was added at the working level – Strengthening District Development Committees and other Local-level Bodies, which addressed elements from the original eleven components as they applied at the local level.

3 Date 01 March 2007


2

1.3 Context and Recent Developments

There continue to be significant changes in the general political environment in Nepal since the launch of the ISAP. Federalism, devolution and decentralisation remain very topical and will have an impact on the role and functions of MLD and DOLIDAR in future. A major thrust of government policy has been to encourage moves towards sector-wide approaches (SWAp) in key sectors. The first sub-sector taken forward under LIDP has been rural transportation (infrastructure) (RTI)4 including a Trail Bridges SWAp as a subsidiary initiative that will be absorbed into the RTI SWAp fully in time.

A major task for DOLIDAR has been to review how successful the various strands and sources of capacity building have been to date, and to analyse what institutional, organisational and capacity improvements are required for the RTI SWAp. In this regard, with ADB support, an Institutional Specialist (IS) was requested to review DOLIDAR’s institutional strengthening activities, reporting on the progress of the implementation of ISAP as well as on other donor-financed RTI projects that directly or indirectly support institution strengthening and capacity building. The format used by the IS for reporting progress was the same matrix that sets out the ISAP’s objectives, outputs and actions. Due to the number of projects covered5 and the volume of information, the IS’s report is in two parts – (i) the progress of the ISAP itself, and (ii) the progress and contribution of the five donor-supported projects, and the reporting cut-off date was 31 October 2009 (two months before the scheduled completed of the current ISP. In addition to the progress data, the IS in consultation with the International Advisor (IA), reviewed in outline terms the achievements, value and sustainability of the progress. His report6 to DOLIDAR, formed an input to the work of the IA in assessing and structuring what institutional strengthening and capacity building remained to be done plus emerging needs and opportunities. The conclusions drawn, amongst others, are as follows:

The outputs of the ISAP have been achieved to a reasonable degree, but in certain

areas fell short of expectations. With the benefit of hindsight, having so many disconnected outputs may not have promoted ownership and coordination.

It is not possible to ascertain the quality or the value of the training provided. There is an impression that overall, training was input-driven not outcome focused.

Due to the difficulties facing local government not least of which must be insufficient and/or inadequate staffing combined with turnover, there is a question over the sustainability of the outputs, in part or in whole. In some cases DOLIDAR had insufficient resources to absorb and sustain outputs from projects, which had considerable potential added value if they were properly institutionalised, resourced and rolled out from the centre.

There appears to have been have been little or no coordination of the different capacity building elements between ISAP and other projects in general, although there have been linkages with RAIDP.

Not having a Human Resource Development locus properly resourced within DOLIDAR – be it a section or division – goes some way to explain why there are concerns regarding value, momentum and sustainability

Conflicting institutional expectations and relationships are likely to be at the heart of the difficulties faced by MLD and DOLIDAR in meeting their not inconsiderable obligations under the Local Infrastructure Development Policy (LIDP 2061/2004). By extension this includes the difficulties at local level between the District Technical Office (DTO) and the District Development Committee (DDC).

4 Refer to Appendix 1 for details 5 DRILP, DRSP, RAIDP, RAP and RRRSDP 6 PJ Shah: ISAP Progress and Review (November 2009)


3

2. A SYNTHESIS OF NEEDS AND OPPORTUNITIES 2.1 Overview

Notwithstanding the ISAP matrix and the elements in the various RTI-related projects, perhaps the most striking thing is the absence or articulation of a central vision for HRD. Vision is the answer to the key question – “HRD for what (purpose), when, where and by whom?” In answering this, the fault lines and inconsistencies at the heart of the difficulties emerge.

First, there needs to be consensus amongst key stakeholders on updating and

aligning the respective mandates of the various LIDP institutions and the deliverables that they are expected to achieve. Everything flows from this. It is important to note that institutions and organisations are not the same. Institutions describe legally established bodies and their inter-relationship (i.e. institutional arrangements) at different levels, which are mandated specific responsibilities ranging from formulating and executing policy, planning, monitoring and evaluation to implementation, with commensurate authority and resources. In this case, the institutions and the institutional arrangements are those that focus on delivering local infrastructure development (LID). Organisations on the other hand, are how institutions or bodies internally structure or organise their roles, functions and resources in order to meet the designated responsibilities and deliverables effectively and efficiently under a coherent strategy. If there are ambiguities or inconsistencies over the mandate, responsibilities, authority and deliverables of an institution, then it should not be surprising if that institution has organisational arrangements that are sub-optimal.

Secondly, in regard to LID-related organisations, the principle of “structure follows

strategy” is pertinent. An organisation’s roles and functions should be structured in such a way that the designated deliverables can be met as effectively and efficiently as possible. As above, in the same way that LID mandates, responsibilities, authority and deliverables are coherent and aligned from the ministry through to the districts, so to should the strategies at the different levels be coherent and aligned, which in turn will be reflected in the organisations at the different levels. Thirdly, coherent and aligned organisations are nothing if they remain on paper only; they must have the appropriate capacities (in terms of expertise) to apply the strategies for delivery.

Fourthly, the strategy for meeting deliverables can generally be broken down into

three components – (i) core processes, (ii) key systems, and (iii) resources and support. These are interdependent. Hence, in strengthening say a key process such as planning, one must also look at the information system that is critical to that process, identifying, upgrading and reinforcing the planning skills in the people charged with planning, as well as ensuring there are support, quality assurance and feedback.

In summary, institutions cover the What and Why questions, organisations cover

the Who, Where and When questions, and capacities cover the How questions. A simple graphic (Figure 2.1) presents the drivers and focus of strengthening and continuous improvement namely, the critical interaction between the “foundations” - institutions, organisations and capacities - and the “superstructure” of strategy – core processes, key systems, resources and support, all of which are necessary for successful delivery. ..


4

Figure 2.1: The Drivers and Focus of Strengthening and Continuous Improvement

..

CAPACITIES

ORGANISATIONS

INSTITUTIONS

DELIVERABLES

CORE PROCESSES KEY SYSTEMS

RESOURCES + SUPPORT

CAPACITIES

ORGANISATIONS

DELIVERABLES

KEY SYSTEMS

CORE PROCESSES

RESOURCES + SUPPORT

INSTITUTIONS

STRATEGY


5

2.2 The Framework

It has been possible to look at the combined needs (ISAP, Other Projects, RTI SWAp) using the original ISAP matrix. However, the need to bring a sense of updated vision and leadership to the institutional strengthening and capacity building process, demands a more responsive framework reflecting the drivers and focus of strengthening and continuous improvement (see Table 2.1 below).

Starting from the top Left of the Table, the key challenge is reconciling and aligning

mandates, policies, principles and authority at the three levels – MLD, DOLIDAR and at the DDC and Municipality. This includes aligning deliverables as well. From this one can proceed to reviewing and improving the organisations in terms of roles and functions at the three levels, as well as addressing the issue of properly locating and renaming the District Technical Office (DTO) in the district- and municipal-level structure. Organisations are people, working individually and in groups, who must be informed of what is expected of them and be correctly positioned in line with their skills, experience and authority so as to meet expectations. Hence, proper job descriptions aligned with an individual’s expected contribution towards and responsibility for one or more deliverables, in part or in whole, are vital. In this regard, so as to underscore the importance of organisational and personal responsibilities for deliverables, the introduction of performance-based contracts in the form of a Memorandum of Understanding (MOU) between organisations and through personal contracts for individuals, are also critical, being in line with the government’s performance-based “Governance Reform Initiative” (GRI).

The three components of strategy are structured along the lines of the three levels (MLD,

DOLIDAR, and DDCs and Municipalities including District Infrastructure Development Section (DIDS), identifying what needs to be addressed by the organisation and its capacities. Finally, the question of resources and support is addressed more strategically including much closer working with existing RTI-related projects, which eventually should lead to greater added value in terms of coordination, collaboration and pooling.

2.3 The Synthesis Matrix: The Way Forward

The Synthesis matrix7, the foundation for the Road Map, has two parts – (1) Institutional

and Organisational Framework, and (2) Strategy. As institutional strengthening and capacity building are enabling and not ends in themselves, the Synthesis matrix is framed in terms of Enabling Objectives and outputs, not poverty reduction outcomes per se. It sets out the Key Outputs by Objective, the Key Activities to achieve each output, the agency responsible for taking Action, and the Sources or References for the originating needs as reflected in the progress matrices (ISAP and other projects) and identified in the RTI SWAp documents. In summary: - Under Stream One: Institutional and Organisational Framework, there are four Objectives: 1.1 Clarifying and updating Policies, Mandates, Principles and Authority (with three Outputs) 1.2 Clarifying and Updating Deliverables (with five Outputs) 1.3 Clarifying and Enhancing Organisational Structures, Roles and Functions (with four

Outputs), and 1.4 Optimising Capacities and Human Resources (with six Outputs). - Under Stream Two: Strategy there are three Objectives:

Strengthening and Sustaining Core Processes (with nine Outputs) Strengthening and Sustaining Key Systems (with eight Outputs) Prioritising and Applying Resources and Support Effectively (with three Outputs).

..

7 MP Dalton: DOLIDAR Institutional Strengthening – A Synthesis of Needs and Opportunities (November 2009)


6

Table 2.1: Summary of Strengthening and Continuous Improvement Approach

1. Policies,

Mandates, Principles and Authority

2. Strategy 3. Deliverables

level

2.1 Core Processes 2.2 Key Systems 2.3 Resources and Support

Ministry - MLD Review & update policy LIDP, LIDSAP, SWAps

Review & update for LIDP, LIDSAP, SWAps

A. Institutions DOLIDAR Review & update policy LIDP, LIDSAP, SWAps


DDCs; Mun. DTOs

Review & update policy LIDP, LIDSAP, SWAps


Ministry – MLD

Revise and Update Structure, Roles and Functions

- Policy-setting - LID Budget and Programme - M & E Consolidation - Oversight + Audit - Strategic Coordination (inter-ministry + donors)

- MIS - FMIS + Budget - Input to PMAS - HRM and HRD

- Correct staff at each level - Office support - Operating budget - Outsourcing as needed

Clarify for divisions and sections the local infrastructure-related deliverables

B. Organisations DOLIDAR Revise and Improve Structure, Roles and Functions

Tech. Stand + Manuals Designs/Costs/Budgets Procurement Financial Management Monitoring & Evaluation Capacity Building Information Mgmt Programme Mgmt

- MIS - FMIS + Budget - Input to PMAS - RTI-ICS / DTMPs - Asset Register - Quality Assurance - HRM and HRD - Communications

- Correct staff at each level - Office + field support - Operating budget - Outsourcing as needed

Clarify for divisions and sections the local infrastructure-related deliverables

DDCs; Municipalities DTOs

Revise and Improve Structure, Roles and Functions

LID Planning Designs/Costs/Budgets Procurement Financial Management Monitoring & Evaluation Information Mgmt Implementation Mgmt

- MIS - FMIS + Budget - Input to DPMAS - RTI-ICS / - DTMPs - Asset Register - Quality Assurance - HRM - Communications

- Correct staff at each level - Field support - Operating budget - Outsourcing as needed

Clarify all local infrastructure-related deliverables

Ministry - MLD Improve Job Descriptionsand P-Based Contracts

Deliver competency in Core Processes

Competency in Key Systems Budget for HRD As per performance-

based contracts

C. Capacities DOLIDAR Improve Job Descriptionsand P-Based Contracts


Competency in Key Systems

Budget and resources for HRD

As per performance-based contracts

DDCs Municipalities DTOs

Improve Job Descriptionsand P-Based Contracts


Competency in Key Systems

Budget and resources for HRD

As per performance-based contracts

..


7

3. THE ROAD MAP – A STRATEGIC RESPONSE 3.1 Considerations and Principles

In formulating the Road Map based on the preceding Synthesis matrix, a number of important considerations and principles have been taken on board, so as to correctly frame the strategic response.

3.2 Ownership and Leadership

As mentioned earlier, it has been difficult to ascertain the quality, value and the potential sustainability of the institutional strengthening and capacity building to date. To do so properly would require a formal evaluation of the ISP. In the interim, one can only make a best-estimate of these aspects of the efforts to date. Whatever the actual outcome of these efforts, from now on institution strengthening, organisation optimisation and capacity building must lie the heart of the DOLIDAR Business Plan, and explicitly so. The DOLIDAR senior management team will fully own the Business Plan and use it to drive the organisation forward to reaching the goals set for it and for meeting government’s and MLD’s expectations regarding deliverables – under LIDP and other policies. A key element of the Business Plan is going to be implementing the Human Resources Development (HRD) Plan, and through leadership, all stakeholders from central ministries through to districts and below, should be in no doubt that DOLIDAR takes its HRD responsibilities under the LIDP and LIDSAP very seriously indeed. Senior management will not only give demonstrable leadership to HRD initiatives overall, but will monitor and report on progress regularly. 3.3 Anticipating the Form and Implications of Federalism

At this time various options are being discussed by the Constituent Assembly, but no clear indication has been given as to which form of federal structure could be adopted. Accepting that some format will be adopted, the question is how the current framework (policies, plans, mandates, budgets, etc) of public administration is expected to respond to the chosen federal structure and related policies. Notwithstanding the intention of adopting federalism, it is expected that there will be safeguards and oversight retained at central level to ensure that gender equality, social inclusion, poverty reduction and national development are not held hostage at the state level to detriment of the poor and disadvantaged.

In this regard, on the assumption that the LIDP will continue (it is to be reviewed every five

years8, which probably means within this Nepali calendar or financial year but this is unclear), the expectation is that the essence and essential elements of the LIDP will remain the same. Even within federalism, for government to retain technical, programmatic, fiduciary and safeguards oversight and to avoid a breakdown in upward accountability for the application and utilisation of considerable district grants, DOLIDAR has potentially a greater not a lesser role to play than just that of facilitator and enhancer of the process of decentralisation9. This is discussed in (c) below. 3.4 Moving towards Sector-wide Approaches for LID

The LIDP is about moving to greater decentralisation and empowering districts to take responsibility for their own infrastructure development. For greater effectiveness, efficiency, ownership and sustainability, districts need the technical and managerial capacity plus resources to do so. DOLIDAR is charged under the LIDP to assist them to achieve this capacity. However, from a national perspective of securing maximum impact, value for money and greatest effectiveness, a sector-wide approach (SWAp) or at a minimum a programme approach, is needed. DOLIDAR has the potential to facilitate and promote this if it becomes the programme or

8 LIDP (2061/2004) – clause 7.11 9 LIDP (2061/2004) – clause 7.3.2.3


8

framework manager for RTI in the first instance, and for other LIDP sub-sector SWAps over time. By having a central programme or framework manager does not take from the authority of districts (and eventually by extension, states) to implement local infrastructure development projects and to be held accountable for the use of grants from government and development partners. Nor does it go against the spirit of the current LIDP but rather has much to recommend it. 3.5 Working Closely Together

There is little evidence that an appropriate level of coordination and collaboration in institutional strengthening and capacity building to date has been achieved. Only a formal evaluation can determine why this is so. Having said that, one must look ahead and ensure that, whatever the reasons for the weaknesses in this area to date, it cannot be more of the same or “business-as-usual”. There is a real opportunity for government and development partners together to extract much greater value for money from current and future resources, at low cost or no cost simply by insisting on better coordination to start with and then taking it from there. This added value can be increased substantially by focussing on opportunities for collaboration in different subject areas, at different locations and at different levels, and eventually looking at a pooling of some if not the majority of resources for institutional strengthening and capacity building. In the meantime and under DOLIDAR’s leadership, all existing projects should be moving towards better alignment and harmonisation not continued diversification. 3.6 Centrality of Working Groups

The Joint Steering Committee for Rural Infrastructure (JSCRI) arrangement is not working and something is urgently needed to fill its place. The RTI SWAp may the catalyst for improvement. The key to working more effectively together is three-fold – by launching (i) the RTI SWAp Advisory Committee (RSAC) chaired by the MLD, dealing with policy and oversight, and (ii) the RTI SWAp Implementation Coordination Committee (RSICC) chaired by DOLIDAR, dealing with operational issues, and also (Iii) by convening working groups under the RSICC. The RTI SWAp could be the pathfinder for eventual SWAps in other LIDP sub-sectors, making a very useful contribution in determining the best modalities for coordination and collaboration.

There are at least three key working groups that are vital for operationalising the Road

Map with particular reference to core processes, key systems, and resources and support. These are (i) the Institutional Strengthening and Capacity Building (IS/CB) Working Group, (ii) the Sector Performance Monitoring and Evaluation (SPME) Working Group, and (iii) the Information Working Group (IWG). There should be other working groups formed from time to time such as planning, maintenance, standards, GESI, safeguards, quality assurance, SWAp piloting and such like. By using the working group modality, DOLIDAR will be able to harness and focus the commitment and contribution of the various RTI projects from now on. 3.7 Role of Development Partners

Even if the move towards an RTI SWAp is slower than expected, development partners are committed under the Paris Declaration on Aid Effectiveness10 and the Accra Agenda for Action11 to working closely with government in a genuine partnership, following government’s priorities and using wherever possible government processes and systems. HRD clearly falls into this category, and if taken seriously, could establish a benchmark for how to make the partnership truly meaningful. In addition through the process of mutual accountability (or more correctly, responsibility), the partnership should be able to anticipate and solve related problems.

10 High-Level Forum on Aid Effectiveness – Paris (28 February – 02 March 2005) 11 High-Level Forum on Aid Effectiveness – Accra (02 – 04 September 2008)


9

4. KEY DETAILS 4.1 Overview

As this is a Road Map and not a formal programme or project document, the purpose is to set out for government’s and key stakeholders’ consideration and deliberation what shape a comprehensive framework for addressing institutional strengthening, organisation improvement and capacity building might take, the hierarchy, timing and sequencing of outputs and activities, the institutional arrangements to make it work, and the estimated costs. By definition human resource development is open-ended so as to deal with the evolving context, needs and expectations. However, for planning and budgeting purposes, the framework will be time-bound but open to evaluation, adjustment or extension at any stage.

The Road Map matrix including bar-chart is presented in Appendix 2. The Results

Framework: Indicators and Means of Verification, is presented in Appendix 3. 4.2 Timeframe

The timeframe for the next phase of institutional strengthening, organisation improvement and capacity building for local infrastructure development is five years, provisionally from January 2010 to December 2014, but clearly dependent upon government’s and key stakeholders’ endorsement and support. Short-term is defined as Years One and Two, and medium-term is defined as Years Three to Five. 4.3 Scope

The scope of work covers two interlinked components. The first is enhancing MLD, DOLIDAR, DDCs and Municipalities institutionally, organisationally and capacity-wise for better delivery of local infrastructure development. This also includes the technical offices, sections or units backstopping LID in the districts and municipalities. The second covers strengthening and sustaining the essential elements of an effective LID delivery strategy namely, core processes, key systems, resources and support. As well as optimising the various processes and systems, there will be a structured and well-coordinated human resources development (HRD) plan that addresses the competency needs for operating and sustaining them. More specific technical competencies shall also be addressed under the HRD plan. 4.4 Hierarchy and Priorities

The strategic underpinning and launch-pad of the overall initiative is expected to be undertaken in the first two years under Stream (1): Institutional and Organisational Framework, but not exclusively so. This will start with clarifying and updating mandates and policies including the LIDP, followed by clarifying and updating deliverables. From these, the various organisational structures, roles and functions will be improved, linking into systematically clarifying and increasing capacities. At the same time, as one cannot wait for Component One outputs to be completed, under Stream (2): Strategy, a coordinated and coherent approach to strengthening core processes and key systems will be rolled out. This will focus on having all current RTI projects work more closely in tandem with DOLIDAR’s core programme, be it ISAP (II) or some alternatively named initiative.

As the Components are interlinked, as Component One leads and develops, Component

Two will take on board any significant proposed changes therein that impact on processes and systems, and will be adjusted accordingly.


10

4.5 Institutional Arrangements including Coordination

DOLIDAR, in close consultation and collaboration with MLD, will drive the new initiative. At the highest level, MLD will lead the policy-setting, strategic coordination, impact monitoring and oversight processes, in consultation with related central agencies such as National Planning Commission, Ministry of Finance, etc. and with development partners. The forum for this will be the new RSAC, or some suitable alternative. At the operational level, DOLIDAR will host and chair the all-important RSICC and under that the various workings groups (IS/CB, SPME, Information, amongst others). As RTI is the largest LID sub-sector, this will lead the way in reviewing and strengthening processes and systems that should be common to all LID sub-sectors. The importance of the earliest involvement of existing RTI projects in the RSICC and the various working groups cannot be understated.

Nevertheless, given the broader sub-sectoral coverage of the HRD Plan, it will be

necessary for DOLIDAR to convene a HRD Advisory Committee (HRDAC) with participants from MLD, other agencies, representative DDCs and Municipalities, and Development Partners. The involvement of the DDCs and Municipalities as partners and not just as recipients, is to be recognised. A proposal in the RTI SWAp documents includes Folder 14: Communications Strategy. This has relevance and application to this whole initiative of HRD, particularly for informing and for securing buy-in from the DDCs and Municipalities. The RTI SWAp pilot programme covers seven districts that are presently served by RAP (2 no.) and RRRSDP (5 no.). With an effective working group approach, process and system improvements and skills upgrading can be rolled out in other districts as well. They do not have to wait.

Without doubt, Year One is going to be the most demanding, particularly on MLD, DOLIDAR and the three working groups. At this time, support and assistance through the various RTI projects will be critical, but so too will support and assistance to DOLIDAR at the centre. 4.6 Cost Estimate

Outline costs have been estimated for the initial interventions that will allow the government to scope, design and cost a complete five-year programme, incorporating support both from existing RTI projects and additionally from development partners. Some activities are considered as normal running costs covered by government or projects. Others will require time-bound local consultancies of a short-term nature, which in several instances will require travel to a representative sample of districts and municipalities, as well as holding workshops and publishing revised policy documents as necessary. In summary, the estimated costs are as follows:

Table 4.1: Summary of Cost Estimate

sl Objective Estimated Cost (US$) 1.1 Clarifying/Updating Policies, Mandates, Principles + Authority US$ 50,000 1.2 Clarifying and Updating Deliverables US$ 80,000 1.3 Clarifying/Enhancing Organisational Structures, Roles + Functions US$ 80,000 1.4 Optimising Capacities and Human Resources US$120,000

Total for Stream One US$ 330,000

2.1 Strengthening and Sustaining Core Processes US$ 175,000 2.2 Strengthening Key Systems US$ 1,990,000 2.3 Prioritising and Applying Resources + Support Effectively US$ 30,000

Total for Stream Two US$ 2,195,000 GRAND TOTAL US$ 2,525,000

The outline Cost Estimate is presented in detail in Appendix 4.


11

4.7 Monitoring, Evaluation and Oversight

DOLIDAR will drive the HRD initiative through its HRD Plan with components such as the “Core Skills” upgrading, ICT and MIS, organisation improvement and so on. The HRD Plan in turn is just one aspect of DOLIDAR’s Business Plan, which will be the main tool of senior management for leading and directing DOLIDAR year-on-year. It will also the tool for monitoring progress against deliverables, targets and budgets, and as such will be the agenda with sub-sets such as the HRD Plan progress, LIDSAP progress, RTI progress, etc. for reporting to MLD and key stakeholders at the RSAC or similar forum for oversight. At the operational level, DOLIDAR will monitor and report progress of implementation of the HRD Plan in more detail at the IS/CB Working Group meetings and at the HRDAC meetings.

It is envisaged that there will be periodic assessments at different levels every two years or

so. These will look at specific processes and systems, as well as coordinated interventions such as the “Core Skills” upgrading programme. At the highest level it is proposed that there be two formal evaluations, one mid-way through the initiative or at least before the end of Year Three, and either one just in the last trimester of Year Five (to inform any further planning) or an ex-post evaluation within three months of the end of Year Five. ..


12

5. THE NEXT STEPS

The Road Map aims to give a coherent and realistic picture of how LIDP-related institutional strengthening, organisational improvement and capacity building can be enhanced and taken forward, what the priorities and sequencing are, and how best to engage all actors involved in more productive coordination that will enhance the added value of all initiatives. The next steps are deemed to be as follows:

i. DOLIDAR, MLD and key stakeholders to review and endorse this Road Map

(November 2009); if appropriate amendments are needed, these can be undertaken;

ii. DOLIDAR to establish a HRD Advisory Committee, and launch the IS/CB Working Group;

iii. DOLIDAR and key stakeholders through the HRDAC to agree on the scope, timing, costing and institutional arrangements of the final initiative, and on how best to take the Road Map to the next stage;

iv. DOLIDAR and one or more development partners prepare a project document for ISAP (II) or some suitable name captures the sense of change and enhancement, seeking as wide a range of partners as possible;

v. Present the draft project document to the HRD Advisory Committee participants, soliciting ways to improve the proposal and seeking commitments on support as well as better coordination on the ground amongst existing projects;

vi. Secure funding and commence new programme/project.


13

APPENDICES

1. Details of the RTI SWAp documents: The Framework Document The Folders (19 no.)

2. The Road Map matrix including bar-chart

3. Results Framework: Indicators and Means of Verification

4. Outline Cost Estimate

..


14

Appendix (1): Details of RTI SWAp Documents

(A) THE FRAMEWORK DOCUMENT

• Foreword • Acronyms and Abbreviations

Table of Contents

• List of RTI SWAp Folders • Maps - (i) Regional; (ii) Nepal • Nepal – Country Data • Executive Summary

PART (1): CONTEXT AND VISION

1. Introduction

2. Vision and Strategy

3. Key Policies and Legislation

4. Social and Safeguards

PART (2): PLANNING, PROGRAMME, FUNDING AND INSTITUTIONS

5. Sector Planning and Maintenance, Key Indicators and RTI Programme

6. Budget and Medium Term Expenditure Framework (MTEF)

7. Institutional Arrangements, Development and Capacity Building

PART (3): KEY PROCESSES AND OVERSIGHT

8. Financial Management and Procurement

9. Governance, Accountability and Communications

PART (4): THE PARTNERSHIP

10. Implementation and Aid Coordination

11. Monitoring, Evaluation and Risk Management


15

(B) List of RTI SWAp Folders:

(1) CONTEXT AND VISION

1. RTI Sub-Sector Strategy

2. Gender Equality and Social Inclusion

3. Safeguards – Environmental and Social (incl. Resettlement & Right-of-Way)

(2) PLANNING, PROGRAMME, FUNDING AND INSTITUTIONS

4. RTI Planning

5. Maintenance Strategy 6. Technical Standards, Specifications and Norms

7. Sector Performance, Monitoring and Evaluation

8. RTI Sub-Sector Programme

9. RTI Medium Term Expenditure Framework

10. Institutional Development and Capacity Building

(3) KEY PROCESSES AND OVERSIGHT

11. Financial Management Strategy

12. Procurement Strategy

13. Governance, Accountability and Anti-Corruption Strategy

14. Communications Strategy

(4) THE PARTNERSHIP

15. Aid Effectiveness

16. Code of Conduct

17. Memorandum of Understanding

18. Joint Financing Arrangement 19. Risk Management Strategy ..


16

Appendix (2): The Road Map matrix

Short-Term Medium-Term Key Outputs Key Activities Action by

Year 1 Year 2 Year 3 Year 4 Year 5

1. INSTITUTIONAL AND ORGANISATIONAL FRAMEWORK

OBJECTIVE 1.1: Clarifying and Updating Policies, Mandates, Principles and Authority

1.1.1 Local Infrastructure Development Policy updated

1. Review LIDP (2061/2004) and identify areas for amending and for including new clauses

2. Circulate draft for comments 3. Amend as necessary; formally launch updated LIDP

MLD, in consultation with

NPC, Line Ministries,

DOLIDAR and Develop. Partners

*** **

***

1.1.2 MLD. DOLIDAR and DDC Mandates updated and agreed

1. Review and identify ambiguities or gaps in current mandates regarding rural and municipal infrastructure under LIDP and LIDSAP

2. Propose updating + coordinating Mandates, by institution 3. Identify changes needed in policies, principles and authority, and

consult on best option 4. Obtain MLD agreement on updated Mandates including policies,

principles and authority 5. Implement revised responsibility and authorisations; review

periodically (2-3 years)

MLD and DOLIDAR

in consultation with DDCs and

Municipalities

** *** *** *** ********

***** ***** 1.1.3 Local Infrastructure Development Strategic Action Plan (LIDSAP) updated

4. Review LIDSAP (2064/2007) and identify areas for amending and for including new clauses

5. Circulate draft for comments 6. Amend as necessary; formally re-issue updated LIDSAP

, DOLIDAR, in consultation with

MLD + Develop. Partners

*** **

***

OBJECTIVE 1.2: Clarifying and Updating Deliverables

1.2.1 MLD. DOLIDAR and DDC Deliverables updated and agreed

1. As per updated Mandates in 1.1.2 above, review and identify all deliverables regarding rural and municipal infrastructure under LIDP and LIDSAP

2. Align existing and new Deliverables and propose adjusting policies, mandates and authority as needed

3. Prepare matrix of updated Deliverables, by institution 4. Obtain MLD agreement on updated Deliverables

MLD and DOLIDAR

in consultation with DDCs and

Municipalities

*** ** ** ***


1. Approve Business Plan framework methodology 2. Select Business Plan preparation team 3. Draft Business Plan taking note of updated and approved

Deliverables; obtain internal endorsement

DOLIDAR

** ** **** ************ ************ ************ ************


17


Year 1 Year 2 Year 3 Year 4 Year 5 4. Present to MLD and obtain endorsement 5. Implement, with monitoring by DOLIDAR Senior Mgmt

*** ****

1.2.3 Effective co-ordination between core LID agencies and the line departments in place

1. Operationalise central and local coordination committees 2. Coordinate planning and operation of the local infrastructure

sub-sectors 3. Involve central ministries/agencies to ensure transfer and

backstopping of technical staff in DTOs 4. Review effectiveness periodically (2-3 years)

MLD and DDCs, in consultation with DOLIDAR

************

*******

*******

************ ************ **********

************ ************

****

************ ************

************ ************

****


1. Hold periodic GON-facilitated public fora on rural development issues, priorities and local governance

2. Develop local information system to record RTI and other local infrastructure assets, open to public inspection

3. Ensure DTMPs and other sub-sector master plans are prepared and updated in a properly consultative manner


******

******

************

******

************

************

******

************ ************

******

************

******

************

1.2.5 Twenty-Year Rural Transport Strategy (RTS) prepared, approved + adopted

1. Review existing draft RTS and align with DOR master plan for compatibility

2. Continue consultation with stakeholders, and finalise 3. Submit for GON approval and funding 4. Review feedback, adjust or negotiate as appropriate 5. Consult on implementation with local stakeholders

DOLIDAR, In consultation with

MLD and DOR

****

**** ***

******** ************

**************

**************

**************

OBJECTIVE 1. 3: Clarifying and Enhancing Organisational Structures, Roles and Functions

1.3.1 MLD structure, roles and functions enhanced and operationalised for local infrastructure (rural and municipal)

1. Consult MLD on options for strengthening MLD’s role in local infrastructure policy-making, monitoring, oversight and strategic coordination within government

2. Develop organisational structure for MLD’s consideration, coordinated with DOLIDAR role and structure

3. Present proposal to MLD and review feedback 4. Amend proposal if requested and use final version to inform

DOLIDAR’s own re-organisation exercise (1.3.2 below)

MLD

** **

** ******

1.3.2 DOLIDAR structure, roles and functions enhanced and operationalised for local infrastructure (rural and municipal)

1. Communicate final proposal to DOLIDAR staff; obtain feedback and adjust as necessary

2. Present re-aligned DOLIDAR organisational proposal for approval (MLD / MGA / MOF)

3. Review feedback and adjust or negotiate proposal as appropriate

4. Implement organisation changes in an orderly manner 5. Monitor outcome of federalism decisions, emerging SWAps and

ISAP activities, and update IS strategy


MLD

** ** **

*******

***** ************ ************ ************ ************


18


Year 1 Year 2 Year 3 Year 4 Year 5 1.3.3 DDC and Municipalities structure, roles and functions enhanced and operationalised for local infrastructure (rural and municipal)

1. In the light of (1.1.2 and 1.2.1) above, review DDC and Municipalities plans to meet LSGA requirements


3. Conduct periodic reviews of DDC functions, capacities and development needs.



******

******

**** **** ****

**** 1.3.4 DTO structure, roles and functions established and operationalised for local infrastructure (rural and municipal)

1. Present proposal for re-aligning and renaming DTO within DDC structure plans to meet LSGA requirements


3. Backstop DIDS and ensure technical quality is maintained 4. Conduct periodic reviews of DTO functions, capacities + needs



****

*****

****

************

****

************

***************

************

***************

***

************

***

************

OBJECTIVE 1. 4: Optimising Capacities and Human Resources

1.4.1 Human Resources Development Division established and operational

1. Present proposal (part of 1.3.2 above) to MLD and obtain approval and budget; Amend or negotiate changes as needed

2. Assign or appoint staff to new HRD Division; assign office space, IT and other assets required

3. Under new RTI SWAp Implementation Coordination Committee (RSICC), establish (a) Institutional Strengthening + Capacity Building (IS/CB) Working Group, and (b) Sector Performance Monitoring and Evaluation (SPME) Working Group, and (c) Information Working Group (IWG)

4. Prepare/update HRD Plan (taking into account 1.4.6) and share with MLD and Development Partners for approval and funding;

5. Implement HRD Plan


MLD

*** *** **** ****

******** ************ ************ ************ ************

1.4.2 Effective outcome-oriented HRD and HRM policies and processes in place and operational

1. Review progress and lessons learned to date of performance-based ‘Governance Reform Initiative’ (GRI) underway in public service

2. Initiate small task force (TF) to review staff assessment processes against LID performance needs

3. TF study of GON-endorsed GRI outputs on staff performance management for DOLIDAR application

4. TF to prepare strategy and phased action plan to implement GRI-endorsed performance management initiatives in DOLIDAR; obtain MLD approval

5. Implement enhanced DOLIDAR staff performance management process


MLD

** ********* ***

*****

***** ************ ************ ************ ************


19


Year 1 Year 2 Year 3 Year 4 Year 5

1.4.3 Performance- (or Results-) based management approach applied

1. In parallel with 1.4.2 above, TF to review DOLIDAR’s Business Plan and see how a P/RBM approach should be applied

2. TF to prepare P/RBM approach paper including possible action plan for senior management’s consideration; amend accordingly

3. Implement P/RBM approach (coordinated with 1.4.2)


MLD

***** *****

*****

************

************

************

************

1.4.4 Adequate staff, budgetary and physical resources available to carry out DOLIDAR’s core functions effectively

1. Prepare realistic, sustainable DOLIDAR long-term ‘core functions’ manpower and resources strategy including outsourcing, aligned with organisational structure (1.3.2)

2. Submit for GON approval and funding 3. Receive feedback and amend or negotiate adjustment as

appropriate 4. Transfer, promote or recruit staff in an orderly manner 5. Budgetary resources available to DOLIDAR for operations

MLD and DOLIDAR

**** ***

***

****

****** ************ ************ ************ ************

1.4.5 Senior management leadership and effectiveness enhanced to meet amended Mandate and Deliverables

1. Develop a new DOLIDAR and MLD Senior Management

Development Programme (SMDP), and obtain approval 2. Deliver the SMDP including on-going support; obtain feedback

and re-assess periodically 3. Evaluate SMDP results (2-3 years) and improve programme

DOLIDAR and

MLD

******

******

************

***

************

************

************

***

1.4.6 Demand-driven core skills sustained and TNA-based training held under a coherent HRD framework

1. Review implications of MLD-led Training Policy 2. Prepare a coherent, coordinated HRD framework for identifying

and addressing key skills enhancing needs, initiatives and resources – centrally, regionally and locally

3. IS/CB Working Group to explore opportunities for coordination, collaboration and pooling

4. Under the HRD framework, design a rolling multi-year 'Core Skills' upgrading programme (see 2.1 + 2.2 below), based on recent or updated Training Needs Analyses (TNA)

5. Implement the rolling multi-year 'Core Skills' programme 6. Monitor training delivery and periodically assess training impacts

on LID performance and outcomes 7. Assess and update TNA (2-3 years) as needed 8. Implement GON decisions on regional training facilities 9. Independent assessment to be held every two years on the

scope, quality and impact of HRD Plan and the rolling “Core Skills” upgrading programme

DOLIDAR, in collaboration with

current RTI projects

** *** *** ******

*****

as req’d

******

as req’d

*** as req’d

***

******

as req’d

*** as req’d

***

2. STRATEGY

OBJECTIVE 2. 1: Strengthening and Sustaining Core Processes 2.1.1 1. IS/CB Working Group (see 1.4.1 above) to re-assess quality and DOLIDAR, in


20


Year 1 Year 2 Year 3 Year 4 Year 5 Effective programme and project management processes and capacity strengthened

delivery issues regarding current programme and project management process and capacities

2. IS/CB Working Group recommends improvements to the LID programme + project management processes, including effective data flows between PM and FM systems, and seeking DOLIDAR and DDCs’ concurrence

3. Draft concise programme and project management process manuals including information system requirements

4. Design a consensus P&P Management module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally + locally

5. Obtain commitment or funds for delivering P&P Mgmt module in most efficient manner, including follow-up; implement


consultation with DDCs and


RTI projects

*** *** **** ****

******

************

***

************

***

************

***

*******

***

2.1.2 Effective planning process and capacity strengthened

1. Review the sectoral and geographical co-ordination of planning activities by DDCs and Municipalities

2. MLD and SPME Working Group (see 1.4.1 above) to re-assess quality and delivery issues regarding sector-wide planning process and capacities, not just DTMP process

3. SPME Working Group recommends improvements to sector-wide LID planning process, information system and consolidated coordination of LBs’ planning process, for endorsement

4. Complete updating of DTMP Manual incorporating latest criteria including greater accessibility, issue with awareness raising and training events

5. Prepare or update manual(s) for planning other sectors; Pilot integration of DTMPs with other sectoral plans at DDC and Municipal level

6. Promote and monitor integrated district planning aligned with medium term expenditure framework approach

7. Design a consensus Planning module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally

8. Obtain commitment or funds for delivering Planning module in most efficient manner, including follow-up; implement




RTI projects

*** **** *** ******

******

**** *****

************

******

************

**

************

************

**

************

************

**

************

************

** 2.1.3 Effective GESI, social development, social mobilisation + poverty alleviation processes and

1. Review ongoing enhancement of participatory development, including GESI, in planning activities by DDCs and Municipalities

2. MLD and SPME Working Group (see 2.1.2.above) to assess quality and delivery issues regarding sensitivity+ responsiveness of sector-wide LID planning process and capacities



*** ****


21


Year 1 Year 2 Year 3 Year 4 Year 5 capacity strengthened 3. SPME Working Group recommends improvements to the

sensitivity and responsiveness of sector-wide LID planning process and capacities, for endorsement

4. In close coordination with the Planning module in 2.1.2 above, design a consensus Sensitivity + Responsiveness module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally

5. Obtain commitment or funds for delivering Sensitivity and Responsiveness module, incl. follow-up; implement


RTI projects ***

****

*****

************

**

************

**

************

**

************

**


1. Review ongoing implementation of full application of environmental functions in LID planning/activities by LBs

2. Complete and approve uniform Guideline for environmental management

3. Obtain GON approval for improved LID environmental appraisal framework / process

4. SPME Working Group to assess quality and delivery issues regarding environmental responsiveness as per ESMF in LID-related processes and capacities

5. Design a consensus ESMF module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally

6. Obtain commitment or funds for delivering ESMF module in most efficient manner, including follow-up

7. Implement approved ESMF on all LID projects; monitor and adjust as needed

8. Implement new LID environment monitoring database with sector-wide coverage



RTI projects

*** *** ***

****

****

**** ******

******

************

************

************

************

************

************

************

************

2.1.5 Effective procurement management and contract administration process and capacity strengthened

1. Review ongoing application of procurement manuals in LID planning/activities by LBs; Complete updating of uniform Guideline - procurement and contract administration (CA)

2. Review information management linkages with FMS; propose improvements to information system (see 2.2.4)

3. Obtain approval for improved Procurement + CA Guideline 4. IS/CB Working Group to assess quality and delivery issues

regarding procurement and contract administration in LID-related processes and capacities, and make recommendations

5. Design a consensus Procurement and Contract Admin. module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally

6. Obtain commitment or funds for delivering Procurement and



RTI projects

**** **** ***

**** *****


22


Year 1 Year 2 Year 3 Year 4 Year 5 Contract Administration module, including follow-up; implement, monitor and adjust as needed

******

************ ************ ************ ************

2.1.6 Effective financial management process and capacity strengthened

1. Monitor compliance at the local level of Local Bodies FAR as updated and approved

2. MLD and IS/CB Working Group to re-assess quality and delivery issues regarding financial management process and capacities

3. Design a consensus Financial Management module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally

4. Obtain commitment or funds for delivering Financial Management module, including follow-up; implement, monitor and adjust as needed

5. Implement modernised FM policy, guidelines, powers, delegations and authorisations in DOLIDAR and DDCs with support as needed

6. Monitor and assess the revised FM operations and results periodically against LID needs; implement improvements

DOLIDAR, in consultation with MLD and MOF,

and in collaboration with

RTI projects

**** **** ****

******

********

************

************

***

************

************

***

************

************

***

************

************

***


1. SPME Working Group to review RTI SWAp folder 7: Sector Performance Monitoring & Evaluation, and determine how to harmonise or align current progress monitoring of RTI

2. SPME Working Group to assess quality and delivery issues regarding LID-related monitoring and evaluation processes, information system and capacities

3. SPME Working Group to recommend improvements to the SPME information system

4. Design a consensus SPME module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally

5. Obtain commitment or funds for delivering SPME module, including follow-up; implement, monitor and adjust

6. Re-align and implement SPME on all LID projects 7. Monitor and assess the SPME operations and results



MLD, NPC, DDCs and Municipalities, with collaboration from RTI projects

**** **** ****

****

********

******

****

************

************

***

************

************

***

************

************

***

************

************

***

2.1.8 Effective communications process and capacity strengthened

1. MLD and IS/CB Working Group to review RTI SWAp folder (14): Communications Strategy, and see how to harmonise or align current RTI-related communications

2. IS/CB Working Group to assess quality and delivery issues regarding LID-related communications process, information system and capacities

3. IS/CB Working Group to recommend improvements to the information system for better communications


MLD, DDCs + Municipalities,

with collaboration from RTI projects

**** **** ****


23


Year 1 Year 2 Year 3 Year 4 Year 5 4. Design a consensus Communications module for the “Core

Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally

5. Obtain commitment or funds for delivering Communications module, including follow-up; implement, monitor and adjust

6. Implement communications strategy on all LID projects 7. Monitor and assess the communications operations and results


****

********

******

****

************

************

***

************

************

***

************

************

***

************

************

***

2.1.9 Effective audit process and capacity strengthened

1. MLD and IS/CB + SPME Working Groups to review RTI SWAp folders (7): Sector Performance Monitoring and Evaluation, (11): Financial Management, (13): Governance and Accountability, and determine how to harmonise or align current audit function at different levels

2. Joint Working Groups to assess quality and delivery issues regarding LID-related audit process, information system and capacities

3. Joint Working Groups to recommend improvements to the information system for better auditing

4. Design a consensus Audit module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally

5. Obtain commitment or funds for delivering Audit module, including follow-up; implement, monitor and adjust

6. Implement enhanced audit function on all LID projects, using third party technical audits

7. Monitor and assess the audit operations and results periodically against LID needs; implement improvements

DOLIDAR, in consultation with MLD, OAG, NVC,

DDCs and Municipalities,


**** **** ****

****

********

******

****

************

************

***

************

************

***

************

************

***

************

************

***


2.2.1 Comprehensive and efficient information and communication technology (ICT) assets for LID functions in place

1. Appoint Information Manager with a full understanding of the function’s importance, to lead the MIS/ ICT Section in DOLIDAR

2. Establish Information Working Group (IWG) in DOLIDAR to steer MIS, GIS and other responses to information needs

3. IWG to develop plan(s) to extend present IT/ICT initiatives in MLD and DOLIDAR to achieve full ICT capability, with extension to DDCs and Municipalities

4. Submit proposed ICT strategy, action plan and costing for approval and funding; Adjust proposal if needed

5. Procure and commission the necessary ICT equipment or enhancements and linking to the current system and sub-systems at different levels, starting with DOLIDAR and MLD



RTI projects

*** *** ******

****

******


24


Year 1 Year 2 Year 3 Year 4 Year 5 6. Roll out enhancements to DDCs + Municipalities, starting with

RTI SWAp pilot districts and DDCs served by existing projects ***

************

************

************

************

2.2.2 Comprehensive MIS to support MLD, DOLIDAR + DDC/Municipal planning, management and reporting processes

1. Conduct study under IWG to define main LID programme

management data needs, collection process, structuring and output requirements

2. Review systems developed or used by existing RTI projects and extract “best practices” and lessons learned

3. IWG to review completed study on GIS needs + scoping in MLD, DOLIDAR and DDCs/Municipalities; make recommendations

4. Prioritise appropriate ‘decision-support’ needs and options for MLD, DOLIDAR and DDCs/Municipalities respectively

5. Fund and institutionalize the approved system including GIS, using both internal and outsourced technical resources

6. Implement MIS development and GIS strengthening, including interfaces with LID programme management and M&E system

7. Phased, prioritised implementation of enhanced MIS, GIS and M&E systems and assets in MLD, DOLIDAR, DTOs and DDCs/Municipalities with appropriate manuals and training



RTI projects

**** **** ******

**** ******

****

****

************

************

************

************

******

************

************


1. IWG to review road network inventory, condition survey and asset database plus asset tracking system being developed on projects and extract “best practices”

2. MIS for rural roads is being developed/updated with linkage to spatial information (GIS) to establish the road (and other RTI) asset management system

3. IWG to review consultancy outputs to develop IT-based, internet-friendly General Asset Management) System (GAMS) for DOLIDAR’s and DDCs/Municipalities’ purposes

4. Decide on scope, specification, schedule, budget and technical support for LID multi-sector GAMS; Seek approval and funding

5. Design a consensus GAMS module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally

6. Obtain commitment or funds for delivering GAMS module in most efficient manner, including follow-up; implement, monitor + adjust

7. Introduce effective IT-supported Asset Management System in DOLIDAR, DTOs and DDCs/Municipalities, with appropriate manuals and training



RTI projects

**** **** ******

******

******

******

****

************

************

************

************

************

************

************

************

2.2.4 Efficient portfolio-wide

1. IS/CB Working Group to review RTI SWAp folder 11: Financial



25


Year 1 Year 2 Year 3 Year 4 Year 5 Financial Management System (FMS) implemented in DOLIDAR.

Management, and undertake study to identify and assess present FM tools and resources in DOLIDAR and DDCs/Municipalities, and then determine future FMS scope

2. IS/CB Working Group to ascertain the “best practices” and lesson learned from the current projects and systems

3. Decide on scope, scope, specification, schedule, budget and technical support for LID multi-sector FMS; Seek approval and funding

4. Initiate DOLIDAR development of FMS per agreed specifications, budget and schedule using internal and/or external technical support

5. Design a consensus FMS module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally

6. Obtain commitment or funds for delivering FMS module in most efficient manner, including follow-up; implement, monitor + adjust

7. Implement pilot(s) for FMS in MLD and DOLIDAR, with documentation, training and other support

8. Roll out nationwide DOLIDAR and DDCs and Municipalities’ implementation of networked FMS operations

MLD and MOF, and in

collaboration with RTI projects

**** **** ******

******

******

******

****

************

************

******

************

************

************


1. Establish a Maintenance Working Group (MWG) under RSICC 2. Review/update Rural Roads Maintenance Technical Handbook

after feedback has been received from stakeholders 3. Design a consensus Maintenance module for the “Core Skills”


4. Obtain commitment or funds for delivering Maintenance module, including follow-up; implement, monitor and adjust

5. Ensure regular planning and budgeting for LID maintenance integrated with funding cycles of the GON and of the Nepal Roads Board (NRB) in particular

6. DOLIDAR to monitor the establishment of the mandatory District Rural Roads Maintenance Fund (DRRMF)

7. Support LBs to establish annual RTI and other LID maintenance plans, based on updated asset register and condition surveys

8. DOLIDAR to coordinate annual rural roads funding input to NRB’s annual maintenance plans

9. Facilitate strengthening of district-level capacity to implement new policy, standards and Manual provisions

10. Review periodically (2-3 years) Rural Roads Maintenance Directives finalized, approved and enforced from FY 2008/09, for



RTI projects

**** **** ******

******

********

******

******

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************

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************

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26


Year 1 Year 2 Year 3 Year 4 Year 5 continuous improvement

11. Monitor districts’ implementation of revised national rural road maintenance policy and standards

************

************

************

************

2.2.6 Effective quality assurance (QA) system strengthened

1. IS/CB Working Group to review quality assurance (QA) systems developed or used by existing RTI projects and extract “best practices” and lessons learned

2. IS/CB Working Group to develop a QA framework and guidelines 3. Design a consensus Quality Assurance module for the “Core

Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally

4. Obtain commitment or funds for delivering Quality Assurance module in most efficient manner, including follow-up

5. Deliver QA capacity building and reinforce; monitor and adjust 6. Establish QA Centre in DOLIDAR with expertise to be available

to advise and assist DDCs and Municipalities 7. Ensure QA results and issues are fed into the review and update

process of LID technical standards, specifications and norms

DOLIDAR, in consultation with MLD, DDCs and


RTI projects

**** **** ******

**** ******

****

****

************

************

************

************

************

************

************

************

************

************

************

************

2.2.7 Effective disaster response system strengthened

1. Identify appropriate “DR” roles and responsibilities within MLD, DOLIDAR, DDCs and Municipalities

2. Finalise comprehensive DIA and DM (LID) framework in MLD, DOLIDAR, DTOs and DDCs

3. Design a consensus Disaster Response and Management (DRM) module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally

4. Obtain commitment or funds for delivering Disaster Response and Management module, including follow-up

5. Deliver DRM capacity building and reinforce 6. Implement comprehensive DIA and DM (LID) framework in MLD,

DOLIDAR, DTOs and DDCs/Municipalities

DOLIDAR, in consultation with other ministries and agencies

****

****** ******

****

****

****

************

************

************

************

************

************

************

************

2.2.8 Effective human resources management (HRM) system strengthened

1. DOLIDAR and IS/CB Working Group to identify best practices in HRM systems from existing projects

2. With input from national HRM experts, prepare a coherent and sequenced system development/upgrading action plan, with close consultation with the Information + Communication Section

3. Obtain approval and funding for HRM system development or upgrading including multi-year plan of action

4. Develop user manual(s) and prepare an appropriate training course with follow-up and backstopping

5. Implement HRM system development or upgrading at all levels including training modules

DOLIDAR, in consultation with MLD, DDCs and


RTI projects

******

****** ******

**** ****

************************

************************

************************

************ ************


27


Year 1 Year 2 Year 3 Year 4 Year 5 6. Support from MLD + DOLIDAR; monitor and adjust as required **** as req’d as req’d as req’d as req’d



1. DOLIDAR to prepare annual Business Plan and operating budget in consultation with existing RTI projects on coordinated inputs

2. DOLIDAR to submit annual Business Plan and operating budget to MLD for approval and funding; additional inputs and support from Development Partners to be confirmed

3. DOLIDAR to allocate resources to Divisions and Sections, including funding for outsourcing and contracting out

4. DOLIDAR Senior Management to monitor progress of each Division and Section against their respective prioritised work-plans and budgets; Hold quarterly reviews

5. Specific issues and constraints to be addressed in the regular meetings of the IS/CB Working Group

6. RSICC meetings to be informed of DOLIDAR’s progress and constraints; Additional inputs may be requested

7. DOLIDAR to make end-of-year presentation on progress against Business Plan and also outlook for the coming year

8. Independent assessment to be held every two years on the scope, quality and impact of HRD Plan and the rolling “Core Skills” upgrading programme (see 1.4.6 above) including level or resources and support


MLD, DDCs, Municipalities + Development

Partners

******

****

*****

***

*******

**********

**

************

************

**

************

************

**

************

************

**

************

************

**

2.3.2 All project-based institutional strengthening and capacity building activities better coordinated

1. MLD and Development Partners to commit to closer coordination, cooperation and collaboration at the first RTI SWAp Advisory Committee (RSAC) meeting in 2010

2. DOLIDAR to chair the RSICC meetings addressing broad coordination issues,

3. DOLIDAR to chair both the IS/CB Working Group and the IWG, to address operational issues, constraints and opportunities

4. DOLIDAR and IS/CB Working Group to prepare a rolling multi-year ‘Core Skills’ upgrading programme (see 1.4.6 above), maximising value by reducing redundancy and overlap and by seeking out opportunities for collaboration and pooling

5. DOLIDAR to report progress on the HRD Plan (see 1.4.1) and the “Core Skills” programme at the meetings of the IS/CB Working Group and the RSICC

6. Make adjustments to the HRD Plan and the “Core Skills”


existing RTI projects +

Development Partners

*** ***********

**********

******

***

************ **********

***

************ ************

***

************ ************

***

************ ************

***


28


Year 1 Year 2 Year 3 Year 4 Year 5 programme as required *** *** *** *** ***


1. DOLIDAR and IS/CB Working Group to determine indicators and targets for monitoring quality, delivery and value for money of HRD Plan and rolling “Core Skills” upgrading programme

2. Devise a review process that will capture human resource utilisation and effectiveness, incorporating the agreed indicators and targets

3. Pilot the review process and procedures in DOLIDAR and in five or more representative districts and municipalities

4. Assess how well the review process is fit-for-purpose, and make adjustments

5. Stakeholders to agree schedule and budget for rolling out the review process nationwide

6. Implement review process, with DOLIDAR to present findings at the meetings of the IS/CB Working Group and the RSICC

7. Adjust HRD Plan, “Core Skills” upgrading programme and if necessary, DOLIDAR’s Business Plan as needed

DOLIDAR and MLD, in

consultation with existing RTI projects +


****

****

****

************

***

*****

***

**

***

**

***

**

..


29

Appendix (3): Results Framework: Indicators and Means of Verification

sl Key Outputs Key Indicators Means of Verification

Action by

1. INSTITUTIONAL AND ORGANISATIONAL FRAMEWORK OBJECTIVE 1.1: Clarifying and Updating Policies, Mandates, Principles and Authority

1.1.1

Local Infrastructure Development Policy updated

LIDP document reviewed, updated, distributed and received

Assess methodology used Inspect final document Confirm distribution and receipt of revised

LIDP

MLD, in consultation with NPC, Line

Ministries, DOLIDAR and Development Partners

1.1.2 MLD. DOLIDAR, DDCs and Municipalities Mandates updated and agreed

MLD Mandate as a formal document updated and approved

DOLIDAR Mandate as a formal document updated and approved

DDCs (including DTOs) Mandate as a formal document updated and approved

Municipalities (including DTOs) Mandate as a formal document updated and approved

Inspect Mandates documents Inspect MLD formal notification to DOLIDAR,

DDCs and Municipalities

MLD and DOLIDAR in consultation with DDCs and

Municipalities

1.1.3

Local Infrastructure Development Strategic Action Plan (LIDSAP) updated

LIDSAP document reviewed, updated, distributed and received

Assess methodology used Inspect final document Confirm distribution and receipt of revised

LIDSAP

DOLIDAR in consultation with MLD, and



1.2.1 MLD DOLIDAR, DDC and Municipalities Deliverables updated and agreed

MLD Deliverables within a formal (Mandate) document updated and approved

DOLIDAR Deliverables within a formal (Mandate) document updated and approved

DDCs (incl. DTOs) Deliverables within a formal (Mandate) document updated and approved

Municipalities (including DTOs) Deliverables within a formal (Mandate) document updated and approved

Inspect Mandate documents to confirm that Deliverables have been clearly set

MLD formal notification to DOLIDAR, DDCs and Municipalities inspected

MLD and DOLIDAR


Methodology agreed and applied BP Preparation Team mobilised and

consultations undertaken Each divisions + sections plans prepared Draft(s) circulated; feedback incorporated B/ Plan reviewed and approved by MLD B/Plan used by DOLIDAR management DOLIDAR reporting progress vs. B/Plan

Assess methodology used including consultation and participation process

Inspect final document as approved by MLD Confirm distribution and receipt of B/P by

DOLIDAR management Assess regular use of B/P as a management

and reporting tool

DOLIDAR

1.2.3 Effective co-ordination between Central coordination committee(s) under MLD Inspect meetings’ agendas MLD and DDCs,


30


Action by core LID agencies and the line departments in place

meeting formed and regularly as per agreed coordination mechanism

Local coordination committee(s) under DDCs / Municipalities meeting regularly

Planning cycle and operation of all local infrastructure sub-sectors in place

Central ministries and agencies have ensured transfer and backstopping of technical staff in DTOs

Effectiveness reviews being held every 2-3 years with follow up actions

Inspect meetings minutes and attendance Interview sample of attendees Inspect sample of districts + municipalities and

verify meetings and their value with participants

Inspect TOR for effectiveness reviews Inspect effectiveness review reports Inspect records of foll0w-up actions and

reporting through the regular coordination meetings

in consultation with DOLIDAR


Periodic GON-facilitated public fora on rural development issues, priorities and local governance held

Local information system to record RTI and other local infrastructure assets, operational and open to public inspection

DTMPs and other sub-sector master plans prepared and updated in a properly consultative manner

MLD / DOLIDAR/ DDCs + Municipalities applying a communication strategy

Inspect list of fora held plus approximate attendees, handouts or public statements

Inspect representative sample of local information systems and ascertain public’s opportunities to inspect

Inspect electronic copy of DTMPs and other sub-sector plans from all districts at DOLIDAR; interrogate sample of districts on DTMP / Plans consultation process and verify with local stakeholders

Ascertain use of communications strategy in a representative sample of districts and municipalities


1.2.5 Twenty-Year Rural Transport Strategy (RTS) prepared, approved and adopted

Existing draft RTS aligned with DOR master plan for compatibility

Consultation with stakeholders completed and RTS draft finalised

GON approval and funding received Local stakeholders consulted on implementation

Assess methodology used including consultation and participation

Inspect final document as approved Confirm distribution and receipt of revised RTS

DOLIDAR, In consultation with MLD and

DOR

OBJECTIVE 1. 3: Clarifying and Enhancing Organisational Structures, Roles and Functions

1.3.1

MLD structure, roles and functions enhanced and operationalised for local infrastructure (rural and municipal)

Options for strengthening MLD’s role in local infrastructure policy-making, monitoring, oversight and strategic coordination

Final organisational structure coordinated with DOLIDAR’s role and structure

Re-organisation exercise implemented


Inspect final document as approved Ascertain progress or completion of re-

organisation

MLD

1.3.2 DOLIDAR structure, roles and functions enhanced and operationalised for local

re-aligned DOLIDAR organisational proposal presented to MLD / MGA / MOF for approval

Approved organisation changes Implemented in


Inspect final document as approved

DOLIDAR, in consultation with MLD


31


Action by infrastructure (rural and municipal) an orderly manner

Outcome of federalism decisions, emerging SWAps and ISAP activities monitored and Institutional Strengthening strategy updated

Inspect manuals and guidelines used by divisions and sections

Ascertain progress or completion of re-organisation process

Ascertain how key developments such as federal structure plus admin reform have been addressed by the organisation

1.3.3

DDC and Municipalities structure, roles and functions enhanced and operationalised for local infrastructure (rural and municipal)

In the light of (1.1.2) and (1.2.1) above, DDCs and Municipalities plans to meet LSGA requirements reviewed by them

GON decisions on new LID field organisation Implemented and results monitored

Periodic reviews of DDC functions, capacities and development needs conducted


Inspect final document as approved Inspect manuals and guidelines used by

sections and units Ascertain progress or completion of re-

organisation process Confirm periodic reviews have been held and

inspect review report + actions taken

DOLIDAR, in consultation with MLD, DDCs and Municipalities

1.3.4

DTOs structure, roles and functions established and operationalised for local infrastructure (rural and municipal)

Proposal for re-aligning and renaming DTO as DIDS within DDC structure plans to meet LSGA requirements presented

GON decisions on new LID field organisation Implemented and results monitored

DTOs backstopped and technical quality maintained

Periodic reviews of DIDS functions, capacities and needs conducted


Inspect final document as approved Inspect manuals and guidelines used Ascertain progress or completion of re-

organisation process Confirm periodic reviews have been held and

inspect review report + actions taken

DOLIDAR, in consultation with MLD, DDCs and Municipalities

OBJECTIVE 1. 4: Optimising Human Resources

1.4.1 Human Resources Development Division established and operational

Proposal presented to MLD; approval and budget obtained

Staff assigned or appointed to new HRD Division office space, IT and other assets required assigned or purchased

Under new RTI SWAp Implementation Coordination Committee (RSICC), (a) Institutional Strengthening + Capacity Building (IS/CB) Working Group, and (b) Sector Performance Monitoring and Evaluation (SPME) Working Group, and (c) Information Working Group (IWG) operationalised

HRD Plan updated, approved and funded by MLD and Development Partners

HRD Plan implemented

Confirm Division established and staffed, with office space, IT support and budget

Confirm that the key working groups have been established and operationalised

Assess HRD Plan methodology used including consultation and participation

Confirm that HRD Plan is reflected in the DOLIDAR Business Plan, and is being funded and implemented as well as being monitored by DOLIDAR senior mgmt.

Ascertain if HRD Plan is reviewed and updated periodically


1.4.2 Effective outcome-oriented HRD Progress and lessons learned to date of Confirm task force was operationalised and DOLIDAR,


32


Action by and HRM policies and processes in place and operational

performance-based ‘Governance Reform Initiative’ (GRI) in public service reviewed

Small task force (TF) to review staff assessment processes against LID performance needs launched

TF study of GON-endorsed GRI outputs on staff performance management for DOLIDAR application completed and endorsed

Strategy and phased action plan to implement GRI-endorsed performance management initiatives in DOLIDAR prepared; MLD approval obtained

Enhanced DOLIDAR staff performance management process implemented

that GRI progress was reviewed Confirm that study was prepared and

endorsed, including action plan, through inspection of documents

Confirm through inspection and interviews that performance management process is being implemented

in consultation with MLD


DOLIDAR’s Business Plan reviewed and P/RBM approach for application assessed

P/RBM approach paper including possible action plan for senior management’s consideration prepared and endorsed

P/RBM approach implemented

Inspect paper on P/RBM and verify that internal consultation has taken place

Inspect DOLIDAR’s Business Plan and ascertain if P/RBM has been incorporated

Confirm that P/RBM is being implemented and is being monitored by management


1.4.4

Adequate staff, budgetary and physical resources available to carry out DOLIDAR’s core functions effectively

Realistic, sustainable DOLIDAR long-term ‘core functions’ manpower and resources strategy including outsourcing, aligned with organisational structure prepared, approved and funded

Staff transferred, promoted or recruited in an orderly manner; outsourcing used as needed

Budgetary resources for DOLIDAR operations available on time

Verify that annual budget funded in time from all sources against commitments

Confirm that staff positions have been filled and that outsourcing is used


1.4.5

Senior management leadership and effectiveness enhanced to meet amended Mandate and Deliverables

New DOLIDAR and MLD Senior Management Development Programme (SMDP) developed, approved and funded

SMDP delivered including on-going support; feedback obtained plus re-assessed periodically

SMDP results evaluated every 2-3 years, and programme improved

Assess design methodology used including consultation and participation

Inspect final proposal and programme including schedule as approved + funded

Inspect SMDP course materials Inspect feedback and changes made Inspect periodic evaluation report and actions

taken

DOLIDAR and MLD

1.4.6 Demand-driven core skills sustained and TNA-based training held under a HRD framework

Implications of MLD-led Training Policy reviewed Coherent, coordinated HRD framework for

identifying and addressing key skills enhancing needs, initiatives and resources – centrally, regionally and locally - prepared

Opportunities for coordination, collaboration and

Verify that MLD Training Policy reviewed Inspect HRD framework Ascertain, through inspection + interviews,

how much coordination, collaboration and pooling has taken place

Inspect “Core Skills” upgrading programme

DOLIDAR, in collaboration with current RTI projects


33


Action by pooling explored by IS/CB Working Group

Under the HRD framework, a rolling multi-year 'Core Skills' upgrading programme (see 2.1 + 2.2 below), based on recent or updated Training Needs Analyses (TNA) designed and approved

Rolling multi-year 'Core Skills' programme implemented

Training delivery monitored, impacts on LID performance + outcomes periodically assessed

TNA assessed and updated every 2-3 years as needed

GON decisions on regional training facilities implemented

Every two years independent assessment held on the scope, quality and impact of HRD Plan and the rolling “Core Skills” upgrading programme

and verify if TNA inputs used Interview a representative sample of

participants at the centre and in local bodies as to the relevance, quality and value of the programme

Verify TNA have been updated periodically, and results as input to programme revision

Ascertain response to GON decisions regarding regional training centres

Confirm that independent assessment of HRD Plan and “Core Skills” programme has taken place every two-three years; inspect report and actions taken.

2. STRATEGY OBJECTIVE 2. 1: Strengthening and Sustaining Core Processes

2.1.1 Effective programme and project management processes and capacity strengthened

Quality and delivery issues regarding current programme and project management process and capacities re-assessed by IS/CB Working Group

Improvements to the LID programme + project management processes, including effective data flows between PM + FM systems recommended and accepted

Concise programme and project management process manuals including information system requirements drafted

A consensus P&P Management module for the “Core Skills” programme including events schedule to be held centrally, regionally + locally designed and endorsed

Commitment or funds for delivering P&P Mgmt module in most efficient manner, including follow-up obtained

P&P management module implemented Quality of delivery monitored; module adjusted

Verify that improvements to the LID programme + project management processes, including effective data flows between PM + FM systems accepted

Inspect programme and project management process manuals that should include information system requirements

Verify that a consensus P&P Management module for the “Core Skills” programme has been endorsed

Verify that commitment or funds for delivering P&P Mgmt module have been obtained

Confirm through inspection of documentation and interviews that the module is being held

Assess effectiveness of P&P management at different levels

Confirm that quality of delivery is being monitored, and the module adjusted as needed

DOLIDAR, in consultation with DDCs and Municipalities, with


2.1.2 Effective planning process and Sectoral and geographical co-ordination of Verify through inspection of documents and DOLIDAR, in consultation with


34


Action by capacity strengthened planning activities by DDCs and Municipalities

reviewed Quality and delivery issues regarding sector-

wide planning process and capacities, not just DTMP process, re-assessed

improvements to sector-wide LID planning process, information system and consolidated coordination of LBs’ planning process, recommended and endorsed

DTMP Manual incorporating latest criteria including greater accessibility, issue with awareness raising and training events updated

Manual(s) for planning other sectors prepared or updated; Pilot integration of DTMPs with other sectoral plans at DDC + Municipal level done

Integrated district planning aligned with medium term expenditure framework approach promoted and monitored

A consensus Planning module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally designed and endorsed

Commitment or funds for delivering Planning module in most efficient manner, including follow-up obtained

Planning module implemented Quality of delivery monitored + module adjusted

interviews that coordination of planning is taking place, and that quality and delivery issues regarding sector-wide planning process and capacities have been re-assessed

Verify through inspection and interviews that recommended improvements endorsed

Inspect updated DTMP Approach Manual and other sub-sector planning manuals

Verify that a consensus Planning module for the “Core Skills” programme has been endorsed

Verify that commitment or funds for delivering Planning module have been obtained


Assess effectiveness of planning process at different levels

Confirm that quality of delivery is being monitored, and module adjusted as needed

MLD, DDCs + Municipalities, with collaboration from RTI

projects

2.1.3

Effective GESI, social development, social mobilisation and poverty alleviation processes and capacity strengthened

Ongoing enhancement of participatory development, including GESI, in planning activities by DDCs and Municipalities reviewed

Quality and delivery issues regarding sensitivity+ responsiveness of sector-wide LID planning process and capacities assessed

Improvements to sensitivity and responsiveness of sector-wide LID planning process capacities, recommended and endorsed

A consensus Sensitivity + Responsiveness module for the “Core Skills” programme including events schedule to be held centrally, regionally and locally, designed In close coordination with the Planning module and endorsed

Commitment or funds for delivering Sensitivity

Verify through inspection of documents and interviews that participatory, GESI planning is taking place, and that quality and delivery issues regarding sector-wide planning process and capacities have been assessed

Verify through inspections and interviews that recommended improvements endorsed

Verify that a consensus Sensitivity and Responsiveness module for the “Core Skills” programme has been endorsed

Verify that commitment or funds for delivering module have been obtained


Assess effectiveness of the process at




35


Action by and Responsiveness module, including follow-up obtained

Sensitivity + Responsiveness module implemented

Quality of delivery monitored + module adjusted

different levels Confirm that quality of delivery is monitored,

and the module adjusted as needed


Ongoing implementation of full application of environmental functions in LID planning/activities by Local Bodies reviewed

Uniform Guideline for environmental management completed and approved

Approval for improved LID environmental appraisal framework / process obtained

A consensus ESMF module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally designed and endorsed

commitment or funds for delivering ESMF module in most efficient manner, including follow-up obtained

Approved ESMF on all LID projects implemented monitored and adjusted

New LID environment monitoring database with sector-wide coverage implemented

Verify through inspection of documents and interviews that environmental planning is taking place, and that quality and delivery issues of environmental responsiveness as per ESMF in LID-related processes and capacities have been assessed

Confirm that uniform Guidelines have been approved and are in use

Verify that recommended improvements have been endorsed

Verify that a consensus ESMF module for the “Core Skills” programme has been endorsed



Assess effectiveness of safeguard process Confirm that quality of delivery is monitored,

and the module adjusted as needed Inspect LID environment monitoring database



2.1.5

Effective procurement management and contract administration process and capacity strengthened

Ongoing application of procurement manuals in LID planning/activities by LBs reviewed/updated

Uniform Guideline - procurement and contract administration (CA) completed and approved

Information management linkages with FMS reviewed and improvements to information system proposed (see 2.2.4)

Approval obtained for improved Procurement and Contract Administration Guideline

Quality + delivery issues regarding procurement and contract administration in LID-related processes and capacities assessed and recommendations made

A consensus Procurement and Contract Admin. module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally designed and endorsed

Verify through inspection of documents and interviews that procurement manuals review is taking place, and that quality and delivery issues have been assessed


Verify that recommended improvements have been endorsed

Verify that a consensus Procurement and Contract Administration module for the “Core Skills” programme has been endorsed


Assess the effectiveness and transparency of procurement and contract administration at different levels

Confirm through inspection of documentation




36


Action by Commitment or funds for delivering Procurement

and CA module, including follow-up obtained Module implemented, monitored and adjusted

and interviews that the module is being held Confirm that quality of delivery is monitored,

and the module adjusted as needed


Compliance at the local level of updated and approved Local Bodies FAR monitored

Quality and delivery issues regarding financial management process + capacities re-assessed

a consensus Financial Management module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally designed and endorsed

Commitment or funds for delivering Financial Management module, incl. follow-up obtained

FM module implemented, monitor and adjusted Modernised FM policy, guidelines, powers,

delegations and authorisations in DOLIDAR and DDCs implemented

Revised FM operations and results monitored and assessed periodically against LID needs, and improvements implemented

Verify through inspection of documents and interviews that Financial Management review is taking place, and that quality and delivery issues have been assessed


Verify that a consensus Financial Management module for the “Core Skills” programme has been endorsed



Assess quality of financial management function at different levels

Confirm that quality of delivery is monitored, and the module adjusted as needed

DOLIDAR, in consultation with MLD and MOF, and in



RTI SWAp folder 7: Sector Performance Monitoring & Evaluation (SPME) reviewed, and harmonisation and alignment of current progress monitoring of RTI determined

Quality and delivery issues regarding LID-related monitoring and evaluation processes, plus information system and capacities assessed

Improvements to the SPME information system recommended and approved

A consensus SPME module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally designed

Commitment or funds for delivering SPME module, including follow-up obtained

Module implemented, monitored and adjusted SPME on all LID programmes and projects re-

aligned and implemented SPME operations and results periodically against

LID needs monitored and assessed; improvements implemented

Verify through inspection of documents and interviews that RTI SWAp folder 7 has been reviewed, and that potential harmonisation andalignment have been determined

Verify through document inspection that quality and delivery issues assessed

Confirm that information system improvements have been approved and are in use

Verify that a consensus Monitoring and Evaluation module for the “Core Skills” programme has been endorsed



Assess by inspection/interviews improvements in M&E function + products at different levels


DOLIDAR, in consultation with MLD, NPC, DDCs and

Municipalities, with collaboration from RTI

projects

2.1.8 Effective communications process RTI SWAp folder (14): Communications Strategy Verify through inspection of documents and DOLIDAR, in consultation with


37


Action by and capacity strengthened reviewed, and harmonisation or alignment of

current RTI-related communications determined Quality and delivery issues regarding LID-related

communications process, information system and capacities assessed

Improvements to information system for better communications recommended and approved

A consensus Communications module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally designed and endorsed

Commitment and funds for delivering Communications module incl. follow-up obtained

Module implemented, monitored and adjusted Communications strategy on all LID programmes

and projects implemented Communications operations + results monitored

and assessed periodically against LID needs; improvements implemented

interviews that RTI SWAp folder 14 has been reviewed, and that potential harmonisation andalignment have been determined

Verify that quality and delivery issues have been assessed

Confirm that information system improvements have been approved and are in use

Verify that a consensus Communications module for the “Core Skills” programme has been endorsed



Assess the quality of communications at all levels


MLD, DDCs + Municipalities, with collaboration from RTI

projects

2.1.9

Effective audit process incorporating third party technical auditing, and capacity strengthened

RTI SWAp folders (7): Sector Performance Monitoring and Evaluation, (11): Financial Management, (13): Governance and Accountability reviewed, and harmonisation or alignment of current audit function at different levels determined

Quality and delivery issues regarding LID-related audit process, information system and capacities assessed

Improvements to the information system for better auditing recommended

A consensus Audit module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally designed and endorsed

Commitment or funds for delivering Audit module, including follow-up obtained

Module implemented, monitored and adjusted Enhanced audit function on all LID projects

implemented, using third party technical audits Audit operations/results monitored and assessed

against LID needs; improvements implemented

Verify through inspection of documents and interviews that RTI SWAp folders 7, 11 and 13 have been reviewed, and that potential harmonisation and alignment have been determined

Verify through inspections and interviews that quality and delivery issues assessed

Verify that a consensus Audit module for the “Core Skills” programme has been endorsed



Assess the quality of auditing, including use of third party audits


DOLIDAR, in consultation with MLD, OAG, NVC, DDCs and

Municipalities, with collaboration from RTI

projects


38


Action by OBJECTIVE 2. 2: Strengthening Key Systems

2.2.1

Comprehensive and efficient information and communication technology (ICT) assets for LID functions in place

Information Manager with a full understanding of the function’s importance, to lead the MIS/ ICT Section in DOLIDAR appointed

Information Working Group (IWG) in DOLIDAR to steer MIS, GIS and other responses to information needs established

Plan(s) to extend present IT/ICT initiatives in MLD and DOLIDAR to achieve full ICT capability, with extension to DDCs and Municipalities developed

ICT strategy, action plan and costing for approval and funding proposed and approved

ICT equipment or enhancements procured and commissioned, linking to the current system and sub-systems at different levels, starting with DOLIDAR and MLD

Enhancements to DDCs and Municipalities rolled out, starting with the RTI SWAp seven pilot districts and those DDCs served by existing RTI projects if possible

Confirm appointment of Information Manager through interview

Confirm operationalisation of IWG through inspection of documents and interviews

Inspect plans + strategies approved + funded Inspect new ICT equipment and confirm

against purchase orders Assess use and effectiveness of ICT through

inspection and evaluation Assess the timeliness and effectiveness

through inspection and interviews of the roll-out programme

DOLIDAR, in consultation with MLD, DDCs + Municipalities, with collaboration from RTI

projects

2.2.2

Comprehensive MIS to support MLD, DOLIDAR and DDC/Municipal planning, management and reporting processes

Study conducted under IWG defining main LID programme management data needs, collection process, structuring and output requirements

Systems developed or used by existing RTI projects and extract “best practices” and lessons learned reviewed

Completed study on GIS needs and scoping in MLD, DOLIDAR and DDCs + Municipalities reviewed and recommendations made

Appropriate ‘decision-support’ needs and options for MLD, DOLIDAR and DDCs + Municipalities respectively prioritised

Approved system including GIS using both internal and outsourced technical resources, funded and institutionalised

MIS development and GIS strengthening implemented, including interfaces with LID programme management and M&E system

Enhanced MIS, GIS and M&E systems and assets in MLD, DOLIDAR, DTOs and DDCs/Municipalities with appropriate manuals

Inspect study report prepared by IWG including best practices and lessons learned

Inspect scoping study approved + funded Inspect decision-support system as designed

and operationalised Inspect GIS as designed and operationalised Inspect manuals training materials Assess use and effectiveness of systems

through inspection, interviews and evaluation Assess the timeliness and effectiveness

through inspection and interviews of the roll-out programme


projects


39


Action by and training duly phased, prioritised and implemented


Road network inventory, condition survey and asset database plus asset tracking system being developed on projects and extract “best practices” reviewed

MIS for rural roads with linkage to spatial information (GIS) to establish the road (and other RTI) asset management system developed or updated

Consultancy outputs to develop IT-based, internet-friendly General Asset Management) System (GAMS) for DOLIDAR’s, DDCs’ and Municipalities’ purposes reviewed

Scope, specification, schedule, budget and technical support for LID multi-sector GAMS decided; approval and funding secured

A consensus GAMS module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally, designed and approved

commitment or funds for delivering GAMS module in most efficient manner, including follow-up obtained

Module implemented, monitored and adjusted Effective IT-supported Asset Management

System in DOLIDAR, DTOs and DDCs + Municipalities, with appropriate manuals and training introduced

Inspect review report of road network inventory, condition survey + asset database plus asset tracking system being developed onprojects and “best practices” extracted

Inspect utilisation of MIS and GIS for a General Asset Management System (GAMS)

Verify by inspection the scope, specification, schedule, budget and technical support for LID multi-sector GAMS as approved and funded

Verify that a consensus GAMS module for the “Core Skills” programme has been endorsed



Assess the quality of and improvements in asset management



projects


RTI SWAp folder 11: Financial Management reviewed, a study undertaken to identify and assess present FM tools and resources in DOLIDAR and DDCs + Municipalities, and future FMS scope determined

“Best practices” and lesson learned from the current projects and systems ascertained

Scope, scope, specification, schedule, budget and technical support for LID multi-sector FMS decided, and approval and funding secured

DOLIDAR development of FMS per agreed specifications, budget and schedule using both internal and external technical support Initiated

Inspect review report of RTRI SWAp folder 11 and current tools and resources

Verify by inspection the scope, specification, schedule, budget and technical support for LID multi-sector FMS as approved and funded

Verify that a consensus FMS module for the “Core Skills” programme has been endorsed



Assess the quality of and improvements in financial management at different levels




40


Action by A consensus FMS module for the “Core Skills”

programme (1.4.6) including events schedule to be held centrally, regionally and locally, designed and endorsed

Commitment or funds for delivering FMS module in most efficient manner, including follow-up obtained

Module implemented, monitored and adjusted Pilot(s) for FMS in MLD and DOLIDAR, with

documentation, training and other support Implemented

DOLIDAR, DDCs and Municipalities implementation of networked FMS operations rolled out nationwide



Maintenance Working Group (MWG) under RSICC established

Rural Roads Maintenance Technical Handbook after feedback has been received from stakeholders reviewed and updated

A consensus Maintenance module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally, designed and endorsed

Commitment or funds for delivering Maintenance module, including follow-up obtained;

Module implemented, monitored and adjusted Regular planning and budgeting for LID

maintenance integrated with funding cycles of the GON and of the Nepal Roads Board (NRB) in particular ensured

Establishment of the mandatory District Rural Roads Maintenance Fund (DRRMF) monitored by DOLIDAR and follow-up action taken

LBs establishing annual RTI and other LID maintenance plans, based on updated asset register and condition surveys supported

Annual rural roads funding input to NRB’s annual maintenance plans coordinated by DOLIDAR

Strengthening of district-level capacity to implement new policy, standards and Manual provisions facilitated

Rural Roads Maintenance Directives as

Confirm by inspection and interview that MWG has been operationalised

Confirm that a Maintenance Handbook has been approved and are in use

Verify that a consensus Maintenance module for the “Core Skills” programme has been endorsed



Assess the quality of and improvements in the planning, management and monitoring of maintenance at different levels

Verify that appropriate maintenance plans and funding mechanisms are in use and effective

Confirm that quality of maintenance is monitored, and the module adjusted as needed

Inspect NRB’s annual maintenance plans Verify that Rural Roads Maintenance

Directives are being reviewed periodically


projects


41


Action by finalised, approved and enforced from FY 2008/09 for continuous improvement, reviewed periodically (2-3 years)

Districts’ implementation of revised national rural road maintenance policy and standards monitored and followed up


Quality Assurance systems developed or used by existing RTI projects reviewed and “best practices” and lessons learned extracted

QA framework and guidelines developed a consensus Quality Assurance module for the

“Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally, designed and endorsed

Commitment or funds for delivering Quality Assurance module in most efficient manner, including follow-up obtained

QA capacity building delivered, reinforced, monitored and adjusted

Quality control (QC) laboratories with necessary equipment established and operational in every district

A QA Centre in DOLIDAR established with expertise available to advise and assist DDCs and Municipalities

QA results and issues fed into the review and update process of LID technical standards, specifications and norms

Confirm by inspection and interview that a QA

system and framework operationalised Verify that a consensus Quality Assurance

module for the “Core Skills” programme has been endorsed



Assess the quality of and improvements in the construction, rehabilitation and maintenance

Verify that a QA Centre in DOLIDAR has been established with expertise available to advise and assist DDCs and Municipalities

Inspect QC laboratories and testing processes including follow-up actions in a representative sample of districts and municipalities

Confirm that the QA module is monitored, and is adjusted as needed

Confirm by inspection that QA results and issues fed into the review/update process of LID technical standards, specifications, norms


projects

2.2.7 Effective disaster response (DR) system strengthened

Appropriate “DR” roles and responsibilities within MLD, DOLIDAR, DDCs and Municipalities identified

Comprehensive DIA and DM (LID) framework in MLD, DOLIDAR, DTOs and DDCs finalised

A consensus Disaster Response + Management (DRM) module for the “Core Skills” programme (1.4.6) including events schedule to be held centrally, regionally and locally, designed and endorsed

Commitment or funds for delivering Disaster Response and Management module, including

Confirm by inspection and interview that DR system has been operationalised

Confirm by inspection and interview that DIA and DM (LID) has been

Verify that a consensus Disaster Response and Management module for the “Core Skills” programme has been endorsed



Assess the quality of and improvements in the

DOLIDAR, in consultation with other ministries + agencies


42


Action by follow-up obtained

DRM capacity building delivered, reinforced, monitored and adjusted

Comprehensive DIA and DM (LID) framework in MLD, DOLIDAR, DIDS and DDCs/Municipalities implemented

construction, rehabilitation and maintenance Confirm that the DRM module is monitored,

and is adjusted as needed Confirm by inspection that a Comprehensive

DIA and DM (LID) framework in MLD, DOLIDAR, DIDS and DDCs + Municipalities is being implemented

2.2.8 Effective human resources management system strengthened

Best practices in HRM systems from existing RTI projects identified

A coherent and sequenced system including a development or upgrading action plan, prepared with input from national HRM experts and with close consultation with Information and Communication Section

Approval and funding for HRM system development or upgrading including multi-year plan of action obtained

User manual(s) developed and an appropriate training course with follow-up and backstopping prepared

HRM system development or upgrading at all levels including training modules implemented

Support from MLD + DOLIDAR; HRM system monitored and adjusted as required

Confirm by inspection that best practices in HRM systems from existing RTI projects have been identified and applied

Confirm by inspection that a coherent and sequenced system including a development or upgrading action plan has been prepared

Verify that approval and funding for HRM system development or upgrading including multi-year plan of action have been obtained

Inspect User Manual(s) and training materials Confirm by inspection that HRM system

development or upgrading at all levels including training modules, have been implemented

Confirm that support from MLD + DOLIDAR has been forthcoming, and that the HRM system is monitored and adjusted as required


projects



Annual Business Plan and operating budget in consultation with existing RTI projects on coordinated inputs prepared by DOLIDAR

Annual Business Plan and operating budget submitted, approved and funded; inputs and support from Development Partners confirmed

Resources to Divisions and Sections, including funding for outsourcing and contracting out, allocated by DOLIDAR

Progress of each Division and Section against their respective prioritised work-plans and budgets monitored by DOLIDAR Senior Management; quarterly reviews held

Specific issues and constraints addressed in the

Inspect DOLIDAR’s annual Business Plan and operating budget as approved and funded, including allocation of budget within DOLIDAR for each Division and Section

Confirm level and cost of outsourcing by DOLIDAR annually through document viewing

Inspect progress monitoring by each Division and Section against plan and budget, and also by senior management

Confirm by inspection and interviews that quarterly progress review meetings are held

Review minutes of IS/CB Working Group and RSICC meetings

Inspect DOLIDAR’s end-of-year presentation

DOLIDAR, in consultation with MLD, DDCs, Municipalities +



43


Action by regular meetings of the IS/CB Working Group

RSICC meetings informed of DOLIDAR’s progress and constraints; Additional inputs requested and supported

End-of-year presentation on progress against Business Plan and also outlook for the coming year made by DOLIDAR

Independent assessment held every two years on the scope, quality and impact of HRD Plan and the rolling “Core Skills” upgrading programme (see 1.4.6 above) including level or resources and support

Inspect the TOR and the review report of the independent assessment of the HRD Plan and the “Core Skills” upgrading programme, including follow-up actions.

2.3.2

All project-based institutional strengthening and capacity building activities better coordinated

MLD and Development Partners committed to

closer coordination, cooperation and collaboration at the first RTI SWAp Advisory Committee (RSAC) meeting in 2010

RSICC meetings addressing broad coordination issues chaired by DOLIDAR

IS/CB Working Group and the IWG, to address operational issues, constraints and opportunities chaired by DOLIDAR

A rolling multi-year ‘Core Skills’ upgrading programme (1.4.6) prepared paying particular attention to maximising value by reducing redundancy and overlap and by seeking out opportunities for collaboration and pooling

Progress on the HRD Plan (1.4.1) and the “Core Skills” programme reported by DOLIDAR at the meetings of IS/CB Working Group and RSICC

Adjustments to the HRD Plan and the “Core Skills” programme made

Confirm that regular RSICC meetings held and inspect agenda and minutes

Confirm by inspect agenda and minutes that IS/CB Working Group addresses issues, constraints and opportunities

Confirm by document inspection and interviews that the “Core Skills” programme has been resourced in the most efficient manner including collaboration and pooling by existing RTI projects

Confirm by document inspection and interviews that progress of the HRD Plan and the “Core Skills” programme are reported and discussed regularly, and that follow-up actions have been taken

DOLIDAR, in consultation with existing RTI projects + Development Partners


Indicators and targets for monitoring quality,

delivery and value for money of HRD Plan and rolling “Core Skills” upgrading programme determined

Review process designed that will capture human resource utilisation and effectiveness, incorporating agreed indicators and targets

Review process and procedures piloted in

Verify by inspection that a review process has been designed and approved that captures human resource utilisation and effectiveness, incorporating agreed indicators and targets

Inspect review report including adopted recommendations, on process + procedures piloted in DOLIDAR and in five or more representative districts and municipalities

Verify by document inspection that a schedule

DOLIDAR and MLD, in consultation with existing RTI

projects + Development Partners


44


Action by DOLIDAR and in five or more representative districts and municipalities

Review process assessed regarding fit-for-purpose, and adjustments made

Schedule and budget for rolling out the review process nationwide agreed by stakeholders

Review process implemented, with findings presented by DOLIDAR at the meetings of the IS/CB Working Group and the RSICC

HRD Plan, “Core Skills” upgrading programme adjusted and if necessary, DOLIDAR’s Business Plan as needed

and budget for rolling out the review process nationwide has been agreed by stakeholders

Verify by inspection and interviews that the review process has been implemented, with findings presented by DOLIDAR at the meetings of IS/CB Working Group and RSICC

Verify by inspection that follow-up actions have been taken regarding HRD Plan, “Core Skills” upgrading programme adjusted and if necessary, DOLIDAR’s Business Plan

..


45

Appendix (4): Outline Cost Estimate

Key Outputs Action by Cost Estimate Assumptions

1. INSTITUTIONAL AND ORGANISATIONAL FRAMEWORK

OBJECTIVE 1.1: Clarifying and Updating Policies, Mandates, Principles and Authority

1.1.1 Local Infrastructure Development Policy (LIDP) updated

MLD, in consultation with NPC, Line

Ministries, DOLIDAR and Development Partners

US$ 15,000 Local consultancy = 3 w/months Workshops Publication and distribution of new LIDP

1.1.2 MLD. DOLIDAR, DDC + Municipal Mandates updated and agreed

MLD and DOLIDAR in consultation with DDCs and

Municipalities US$ 20,000

Local consultancy = 4 w/months Workshops Travel to representative sample of

districts and municipalities

1.1.3 Local Infrastructure Development Sector Action Plan (LIDSAP) updated

DOLIDAR, in consultation with MLD and Development Partners US$ 15,000

Local consultancy = 3 w/months Workshops Publication and distribution of new

LIDSAP

Sub-total US$ 50,000


1.2.1 MLD. DOLIDAR, DDC + Municipal Deliverables updated and agreed

DOLIDAR, in consultation with MLD Included in 1.1.2 above


DOLIDAR US$ 20,000 Local consultancy = 4 w/months Workshops

1.2.3 Effective co-ordination between core LID agencies and the line departments in place

MLD and DDCs, in consultation with DOLIDAR GON operating costs


MLD and DDCs, in consultation with DOLIDAR GON operating costs


46


1.2.5 Twenty-Year Rural Transport Strategy (RTS) prepared, approved and adopted

DOLIDAR, In consultation with MLD US$ 60,000

Local consultancies = 12 w/months Workshops Publication and distribution

Sub-total US$ 80,000 OBJECTIVE 1. 3:

Clarifying and Enhancing Organisational Structures, Roles and Functions

1.3.1 MLD structure, roles and functions enhanced and operationalised for local infrastr. (rural and municipal)

MLD, in consultation with DOLIDAR US$ 20,000 Local consultancy = 4 w/months

Workshops

1.3.2 DOLIDAR structure, roles and functions enhanced and operationalised for local infrastructure (rural and municipal)


1.3.3 DDC and Municipalities structure, roles and functions enhanced and operationalised for local infrastructure (rural and municipal)

DOLIDAR, in consultation with MLD, DDCs

and Municipalities US$ 60,000

Local consultancies = 12 w/months Workshops Travel to representative sample of

districts and municipalities 1.3.4 DTO structure, roles and functions established and operationalised for local infrastructure (rural and municipal)

DOLIDAR, in consultation with MLD, DDCs

and Municipalities Included in 1.3.3 above

Sub-total US$ 80,000 OBJECTIVE 1. 4: Optimising Capacities and Human Resources 1.4.1 Human Resources Development Division established and operational

DOLIDAR, in consultation with MLD US$ 40,000 Local consultancies = 6 w/months

Logistics and IT support

1.4.2 Effective outcome-oriented HRD and HRM policies and processes in place and operational

DOLIDAR, in consultation with MLD US$ 30,000 Local consultancies = 6 w/months

Workshops




47


1.4.4 Adequate staff, budgetary and physical resources available to carry out DOLIDAR’s core functions effectively

DOLIDAR, in consultation with MLD GON operating costs

1.4.5 Senior management leadership and effectiveness enhanced to meet amended Mandates and Deliverables

DOLIDAR and MLD US$ 30,000

International consultancy = 1 w/month for course development only

Workshops during development only Full programme to be costed after design

completed and approved

1.4.6 Demand-driven core skills sustained and TNA-based training held under a coherent HRD framework

DOLIDAR, in collaboration with current RTI projects US$ 20,000

Local consultancy = 4 w/months for design and development only

Workshops during development only Travel to representative sample of



Total for Objectives 1.1 - 1.4 US$ 330,000

2. STRATEGY

OBJECTIVE 2. 1: Strengthening and Sustaining Core Processes

2.1.1 Effective programme and project management processes and capacity strengthened

DOLIDAR, in consultation with DDCs and Municipalities, with collaboration from RTI projects

US$ 20,000



districts and municipalities Delivery programme to be costed after

design completed and approved

2.1.2 Effective planning process and capacity strengthened

DOLIDAR, in consultation with MLD, DDCs + Municipalities, with

collaboration from RTI projects US$ 20,000





2.1.3 Effective GESI, social development, social mobilisation


US$ 20,000 Local consultancy = 4 w/months for

design and development only Workshops during development only


48


+ poverty alleviation processes and capacity strengthened

Travel to representative sample of districts and municipalities

Delivery programme to be costed after design completed and approved



US$ 15,000





2.1.5 Effective procurement management and contract administration process and capacity strengthened


US$ 20,000







collaboration with RTI projects US$ 20,000






DOLIDAR, in consultation with MLD, NPC, DDCs and

Municipalities, with collaboration from RTI projects

US$ 20,000





2.1.8 Effective communications process and capacity strengthened








49


2.1.9 Effective audit process and capacity strengthened

DOLIDAR, in consultation with MLD, OAG, NVC, DDCs and

Municipalities, with collaboration from RTI projects

US$ 20,000




design completed and approved Sub-total US$ 175,000


2.2.1 Comprehensive and efficient information and communication technology (ICT) assets for LID functions in place



US$ 20,000 US$ 750,000



Provisional lump-sum for ICT. Full programme to be costed after design completed and approved

2.2.2 Comprehensive MIS to support MLD, DOLIDAR + DDC/Municipal planning, management and reporting processes



US$ 30,000 US$ 285,000



Provisional lump-sum for MIS. Full programme to be costed after design completed and approved











US$ 30,000 US$ 35,000



Provisional lump-sum for FMS. Full programme to be costed after design completed and approved


50










DOLIDAR, in consultation with MLD, DDCs and Municipalities,


US$ 20,000 US$ 750,000




design completed and approved Provisional lump-sum for strengthening

QC laboratories in districts

2.2.7 Effective disaster response system strengthened

DOLIDAR, in consultation with other ministries and agencies US$ 15,000





2.2.8 Effective human resources management (HRM) system strengthened

DOLIDAR, in consultation with MLD, DDCs and Municipalities,


US$ 15,000




design completed and approved Sub-total US$ 1,990,000



DOLIDAR, in consultation with MLD, DDCs, Municipalities and

Development Partners US$ 15,000

Local consultancy = 3 w/months to cover two independent assessments over the five year period

Workshops during the two assessments Travel to representative sample of



51


2.3.2 All project-based institutional strengthening and capacity building activities better coordinated

DOLIDAR, in consultation with existing RTI projects and Development Partners

GON and RTI projects’ operating costs


DOLIDAR and MLD, in consultation with existing RTI

projects + Development Partners US$ 15,000

Local consultancy = 3 w/months to cover piloting of review process

Workshops during the piloting Travel to representative sample of

districts and municipalities Full review programme to be costed after

pilot completed and evaluated


Total for Objectives 2.1 – 2.3 US$ 2,195,000

GRAND TOTAL US$ 2,525,000 (US$ 330,000 + US$ 2,195,000)

..





LOCAL INFRASTRUCTURE INSTITUTIONS

PROPOSAL

FOR

ENHANCING ORGANISATIONAL STRUCTURES



Kathmandu

18 December 2009

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ADB Asian Development Bank AOTA Advisory and Operational Technical Assistance CFAA Country Financial Accountability Assessment COC Code of Conduct DAG Disadvantaged Group(s) DDC District Development Committee DDCO District Development Committee Office DDF District Development Fund (D)DG (Deputy) Director-General DfID Department for International Development (UK) DIDS District Infrastructure Development Section DOLIDAR Department of Local Infrastructure Development and Agricultural Roads DOR Department of Roads DP Development Partner(s) DPMAS District Poverty Monitoring Analysis System DRILP Decentralised Rural Infrastructure and Livelihoods Project DRSP District Roads Support Programme DTCO District Treasury Controlling Office DTMP District Transport Master Plan DTO District Technical Office EIA Environmental Impact Assessment EMAP Environmental Management Action Plan EP Environmental Protection FAR Financial Administration Regulations FCGO Financial Comptroller-General’s Office FMIS Financial Management Information System GESI Gender Equality and Social Inclusion GESIPA Gender Equality, Social Inclusion and Poverty Alleviation GIS Geographical Information System GON Government of Nepal HRD/M Human Resources Development/Management IA (ISAP) International Advisor IEE Initial Environmental Evaluation IRAP Integrated Rural Accessibility Planning IS (ISAP) Institutional Specialist ISAP Institutional Strengthening Action Plan ISP Institutional Strengthening Project JSCRI Joint Steering Committee on Rural Infrastructure ICT Information and Communication Technology (I)NGO (International) Non-governmental Organisation IRAP Integrated Rural Accessibility Planning ISAP Institutional Strengthening Action Plan LBFAR Local Bodies Financial Administration Regulations LBT Labour-based Technology LDO Local Development Officer LEP Labour-based Environment-friendly and Participatory LGCDP Local Government and Community Development Programme LGSA Local Self-Governance Act LID Local Infrastructure Development LIDP Local Infrastructure Development Policy LIDSAP Local Infrastructure Development Strategic Action Plan LRN Local Road Network MC/PM Minimum Conditions / Performance Measures M&E Monitoring and Evaluation MIS Management Information System MLD Ministry of Local Development MOEST Ministry of Environment and Science and Technology

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MOF Ministry of Finance MOU Memorandum of Understanding MPPW Ministry of Physical Planning and Public Works MRE Monitoring, Reporting and Evaluation MTEF Medium Term Expenditure Framework NDF National Development Forum NLSS National Living Standards Survey NPC National Planning Commission NR Nepali Rupees NVC National Vigilance Centre OAG Office of the Auditor-General O&M Operations and Maintenance PAF Performance Appraisal Framework PCU Programme or Project Co-ordination Unit PD Pooling Donors PDR Priority District Road PEFA Public Expenditure and Financial Accountability PFM Public Financial Management PICC Project Implementation Co-ordination Committee PMAS Poverty Monitoring Analysis System PMS Poverty Monitoring Section QA Quality Assurance QMS Quality Management System RAIDP Rural Access Improvement and Decentralisation Project RAP Rural Access Programme RBM Results-based Management RBG Road Building Group RBN Roads Board Nepal RI Rural Infrastructure RIDNS Rural Infrastructure Development National Strategy RRMF Rural Roads Maintenance Fund RRRSDP Rural Reconstruction and Rehabilitation Sector Development Programme RSAC RTI SWAp Advisory Committee RSICC RTI SWAp Implementation Coordination Committee RTI Rural Transport Infrastructure RTISSP Rural Transport Infrastructure Sub-Sector Programme SDC Swiss Agency for Development and Co-operation SDE Senior Divisional Engineer SMART Specific, Measurable, Attainable, Relevant, Time-bound SOI Statement of Intent SRN Strategic Road Network SSS Sub-sector Strategy SWAp Sector-wide Approach TA Technical Assistance TB Trail Bridge(s) TBSSP Trail Bridges Sub-sector Project TNA Training Needs Analysis or Analyses TOR Terms of Reference TSU Technical Support Unit TYIP Three-Year Interim Plan (2007/08 – 2009/10) US$ United States Dollar VDC Village Development Committee WB World Bank WFP World Food Programme WG Working Group WRS Water Resources and Sanitation

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EXECUTIVE SUMMARY

The Government of Nepal (GON) divided the development of infrastructure between the strategic or central level and local level. Within the Ministry of Local Develop (MLD), the Department of Local Infrastructure Development and Agricultural Roads (DOLIDAR) is the responsible agency for central and local level coordination, guidance and management of the local infrastructure development. The Asian Development Bank (ADB) approved grant-financed Advisory and Operational Technical Assistance (AOTA) in September 2004 as being "piggy-backed" on to the loan for the Decentralized Rural Infrastructure and Livelihood Project (DRILP), in order to strengthen DOLIDAR’s technical and institutional capacity in view of its pivotal role in the local infrastructure development. The institutional strengthening of DOLIDAR is supported in an integrated way by the major current externally-assisted projects in the LID sector. There continue to be significant changes in the general political environment in Nepal since the launch of the ISAP. Federalism, devolution and decentralisation remain very topical and will have an impact on the role and functions of MLD and DOLIDAR in future. A major thrust of GON has been to encourage moves towards sector-wide approaches (SWAp) in key sectors. The first sub-sector taken forward under LIDP has been rural transportation (infrastructure) (RTI) including a Trail Bridges SWAp as a subsidiary initiative that will be absorbed into the RTI SWAp fully in time. A major task for DOLIDAR has been to review how successful the various strands and sources of capacity building have been to date, and to analyse what institutional, organisational and capacity improvements are required.

Given the dramatic increase in responsibilities and work-load of DOLIDAR, there have been three reviews of particular importance to local infrastructure development: (i) ISAP Review in 20071, (ii) ISAP Review in 20092, and (iii) an assessment regarding necessary re-alignment of DOLIDAR so that it may move forward with the Rural Transport Infrastructure Sector-wide Approach (RTI SWAp)3 in 2009/10. A meta-review and synthesis of these have led to the current Proposal.

This Proposal addresses the institutional and organisational improvements with linkage to

the complementary institutional strengthening and capacity building needs, which are covered under a separate Road Map (2010 – 2014) proposal. The analytical framework for such a review has a structured, hierarchical examination starting with key policies governing LID, the key institutions and their mandates, deliverables, responsibilities and authority, the key organisations including their roles and functions, the critical capacities needed, and the strategy for achieving the deliverables. Whereas one should not pre-empt the findings and recommendations of a suitable review exercise, one could anticipate a number of possible conclusions based on good practice, gap analysis and focussing on enhancing LID effectiveness and efficiency. There are gaps in the responsibilities and authority framework, not least of which is not having a programme management approach to LID delivery and accountability. The answer is programme management of the national LID strategy and programme by DOLIDAR under the leadership of MLD as GON “client”. This is vital, and in order for DOLIDAR to perform this mission-critical function for the whole ministry it must have the appropriate authority to do so. Current ambiguities in lines of authority reporting are simply not effective and will continue to frustrate MLD’s desire for LID accountability.

For MLD the key changes between the existing and proposed structures are as follows:

→ There is one new Division proposed – Local Infrastructure, with two Sections – (i) Rural Infrastructure (covering LIDP clauses 2.1, 2.2, 2.3, 2.4, and 2.7), and (ii) Municipal Infrastructure (covering LIDP clauses 2.4, 2.5 and 2.6). This allows all seven LIDP sub-sectors to be covered, and allowing for attention to be given RTI to which most of the LID budget is allocated as well as the overlap of water, sewerage and sanitation in both rural and urban areas.

→ Given the predominantly technical nature of municipal management, planning and environmental management, in order to ensure greater national technical leadership and

1 MK Bhattarai: Assessment Report on Identification of Staff and Resource Needs against the existing Organizational Structure of MoLD/DoLIDAR (November 2007). 2 MG Maleku: Organisational Structure, Functions and Development Plan (August 2009) 3 DOLIDAR - RTI SWAp folder 10: Institutional Strengthening and Capacity Building (September 2009)

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impact of the key Municipal Management Division it would be most appropriate if the Division Chief was of Joint Secretary: Technical grade.

→ A new Section – Gender Equality, Social Inclusion and Poverty Alleviation (GESIPA) - is to be added to the Planning and Foreign Aid Coordination Division. For the DDCs and DTOs, the 2009 Report of the Organisational Development Consultant

sets out a proposal for enhancing the provision of technical services within the DDC namely, by incorporating the DTO with possibly re-naming it as the District Infrastructure Development Section (DIDS) along the lines of the “Technical Section” as envisaged in the LIDP. So as to avoid confusion, it is not intended to repeat the Consultant’s work on which there is consensus.

Finally, DOLIDAR mandate, responsibilities and deliverables have all changed significantly

since the department was formed just over ten years ago, but these changes have not been yet been formally recognised in an overall coordinated framework for local infrastructure development. The current organisational arrangement is no longer appropriate for the significant and ever-increasing work-load. The ambiguities and gaps in the LIDP need to be rectified as soon as possible. The need to address municipal infrastructure is ever-pressing, as well as adopting a systemic approach to gender equality and social inclusion, information and communication, and the widening demand for human resources development. However, improving DOLIDAR cannot be done in isolation; it must be done in tandem with improvements in the MLD and in district organisational arrangements and capacities. A coherent proposal is now made that addresses these issues, even through a review of the LIDP may be some way off as of now, the general direction for enhancing DOLIDAR does not pre-empt or constrain the most likely changes to the LIDP-driven mandates, responsibilities and deliverables.

The proposal for enhancing DOLIDAR is a combination of renaming some divisions,

introducing new divisions and sections to meet current and forecast needs better, as well as re-aligning some functions internally and having project coordination units under the main Divisions. There is a case for endorsing the suggestion in the 2009 Report of renaming DOLIDAR as simply the “Department for Local Infrastructure Development (DOLID”). This strengthens the primary focus on effective LID delivery. The key changes between the existing and proposed structures are:

→ There are two new Divisions proposed – (i) Municipal Infrastructure Division, with two

Sections and project coordination units, and (ii) Human Resources Development Division, with two Sections.

→ The existing Rural and Agricultural Roads Division is renamed to better reflect its role; it is also increased and strengthened with three Sections and project coordination units.

→ The existing Other Infrastructure Division is renamed to better reflect its role; it is also increased and strengthened with three Sections and project coordination units.

→ The existing Planning, Monitoring and Foreign Aid Division is renamed to better reflect its role; it is also increased and strengthened with four Sections.

→ The DTO, although under the direct control of the DDC, will report to and be supported by the various Divisions on a matrix basis regarding technical matters.

→ The Pool of currently unassigned personnel, those on study leave or on special assignments, is recognised separately and reports to the Director-General. Pool members in project coordination units report to the respective Division Chief.

→ Other Sections such as General Administration and Financial Administration remain as before, reporting to the Director-General. In order to take this proposal forward in a sensible manner, it must be closely coordinated

with the Road Map for institutional strengthening and capacity building, a proposal submitted in November 2009. By examining both proposals together, government and stakeholders can prioritise and implement key activities in a proper, sequential manner. A good starting point would be to establish and operationalise (i) the LID Advisory Committee, (ii) the HRD Advisory Committee, and (iii) the three Working Groups – (a) Institution Strengthening and Capacity Building, (b) Sector Performance Monitoring and Evaluation, and (c) Information.

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2. Strategic Review - Reconciling Policy, Mandate and Deliverables with Strategy and Structure

3. Institutional and Organisational Reviews to Date

4. Enhancing Organisations - Roles and Functions, Staffing and

Resources


1. Existing DOLIDAR Organisational Structure

2. Existing MLD Organisational Structure

3. Proposed Enhancement - MLD Organisational Structure

4. Details of Proposed Enhancement of MLD

5. Proposal (MG Maleku) – District Technical Office

6. Proposed Enhancement - DOLIDAR Organisational Structure

7. Rural Transport Infrastructure Division

8. Water Supply, Sanitation, Irrigation and Other Infrastructure Division

9. Municipal Infrastructure Division

10. Planning, Monitoring and Donor Coordination Division

11. Human Resources Development Division .

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1. INTRODUCTION AND BACKGROUND 1.1 Introduction

The Government of Nepal (GON) divides the development of infrastructure between the strategic or central level and the local level. The Ministry of Local Development (MLD) has responsibility for local governance and administration in addition to local infrastructure. It has been the ministry most deeply involved in promoting effective local government and good governance through devolution and decentralisation, and may continue in this regard to play a major role in operationalising the anticipated federal structure and administration once agreed by the Constituent Assembly. The key legislation is the Local Self-Governance Act (2055/1999) and Regulation, which together define the principles and elements of decentralisation.

From the citizens’ perspective, local government is primarily about the provision of

basic services and local infrastructure that directly impact on their health, safety and well-being; public administration is perceived as secondary. Nevertheless the two go hand-in-hand and are interdependent. Hence, there are core streams in MLD: self-governance; planning and aid coordination; and municipal management. Local infrastructure outside municipalities is the domain of the Department of Local Infrastructure and Agricultural Roads (DOLIDAR). This is a technical department established by the MLD in September 1998 as directed by the Rural Infrastructure Development National Strategy (RIDNS) (2054/1998). The objective of the RIDNS was to pursue a widely accepted process in the implementation of rural infrastructure development work coordinated by various line ministries, donor agencies and local bodies. In summary, DOLIDAR is the agency responsible for central and local level coordination, guidance and oversight of local infrastructure development. 1.2 The Context

The Local Self-Governance Act (LGSA) (2055/1999) was a major turning point in expanding the jurisdiction of Local Bodies (LBs) for resource mobilisation and management, so as to have a greater say in and contribution towards the development of the country, and more specifically their localities. The objective was to empower the LBs to become more pro-active and responsive to local needs and priorities, something that could not be done as well from a central level. The process envisaged was that responsibilities for formulating infrastructure development programmes, implementing them and then sustaining the assets created through proper maintenance, would come about through the devolving of powers held by central agencies in the past. This transfer was to be undertaken in a way that was to be least disruptive to the workings of both central agencies and LBs.

However, the desired transition was not achieved in the five years immediately after

the RIDNS was approved, for a variety of reasons. As a result, the MLD instigated a review of the RIDNS and concluded that a more focused policy on local infrastructure was needed. A new Local Infrastructure Development Policy (LIDP) (2061/2004) was prepared and approved, and it is this policy that has guided local infrastructure development since. Key to this was the defining of local infrastructure as seven sub-sectors namely:

1. Local Transportation (infrastructure) 2. Irrigation and River Control 3. Micro-Hydro Power and Alternative Energy 4. Water Supply, Sewerage and Sanitation 5. Housing, Building and Urban Development 6. Solid Waste Management 7. Social Infrastructure

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The LIDP was supplemented by the preparation by DOLIDAR and subsequent approval and issuing by MLD of the Local Infrastructure Development Strategic Action Plan (LIDSAP) (September 2007), covering the abovementioned seven sub-sectors. This addressed the requirement under LIDP (clause 7.9) for separate strategic action plans to be prepared and implemented for each of the sub-sectors. In parallel with the infrastructure-related interventions, further strengthening of the capacity of LBs was expected to be enhanced with the formulation, approval and launching of the Local Governance and Community Development Programme (LGCDP)(2008), directly under MLD’s control. Finally, a significant and important policy change overall has been the government adopting a medium term expenditure framework (MTEF) approach for sectors as well as the push for having a sector-wide approach (SWAp) including sector programmes wherever possible. 1.3 Recent Developments

Notwithstanding the difficulties faced in aspects of delivering public service, investment and administration in recent years, MLD and DOLIDAR have endeavoured to promote and facilitate the devolution and decentralisation to the LBs, particularly the responsibility, authority and resources for local infrastructure development and maintenance. However, there is a sense of disappointment at the centre, not counting the growing frustration of the rural population that more has not been achieved to date. The problem is multi-faceted – political, institutional, organisational, capacity and human resources, and poor governance including a lack of transparency and accountability. The way forward is not clear at this time of constitutional and political transition.

Nevertheless, while the nation awaits the decision of the Constituent Assembly on

which form federalism will take in Nepal, and equally important the implications for public administration arising from that decision, MLD and DOLIDAR must proceed with their best efforts to improve effectiveness and efficiency in facilitating local infrastructure development and maintenance. The question is – what can and should the relevant institutions and organisations do to improve the local infrastructure delivery rate so as to reduce poverty?

Whereas the question is easy to pose, the answer on the other hand is more difficult

to discern but is not impossible. What is required is a three-stage approach. In simple terms Stage One is where key stakeholders envisage in detail what a successful national framework for delivering local infrastructure or end-state within a given timeframe say five years, would look like. Stage Two is working backwards from that desired end-state five years hence to see (i) what is in place now and working or not as the case may be, and (ii) to ascertain what needs to be in place over and above current policies, strategies and arrangements, capacities and resources. This is usually done using dynamic planning tools such as problem-tree analysis and critical path analysis, as well Pareto analysis and such like. Stage Three is designing and implementing a well-conceived programmatic response that addresses both the gaps and the weaknesses in current policies, strategies and arrangements, capacities and resources.

This general approach has been the starting point for DOLIDAR to re-examine how it

could work even closer to the spirit and the intent of the LIDP and the LIDSAP. It is already working towards a SWAp in rural transport infrastructure (RTI) with an important trails and trail bridges component, covering LIDP and LIDSAP sub-sector No. 1. In parallel with this organisational improvement exercise, it is looking at a more holistic capacity building approach, building on the achievements of the Institutional Strengthening Action Plan (ISAP) to date. The challenge is correctly identifying which of current policies, strategies and arrangements need amending or supplementing. From this, capacities and resources can then be re-aligned, re-directed and augmented.

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2. STRATEGIC REVIEW - RECONCILING POLICY, MANDATE AND DELIVERABLES WITH STRATEGY AND STRUCTURE

2.1 Overview

As discussed in the pervious section, the delivery of local infrastructure development is not meeting expectations. There are a number of issues here that affect directly and indirectly the delivery of LID, which are now discussed

Currently there is no politically representative decision-making mechanism in the

districts and municipalities. The Secretary of the District Development Committee (DDC), an appointee by and staff member of the MLD, is the final decision-maker on district-related matters until such time as local elections are held, which are in abeyance until the new Constitution is approved and enacted. This has led to a perception of a lack of transparency in the prioritisation of LID, with only lip-service being paid to consultation and participation. Districts for the most are not well staffed with technical capacity to design and then supervise the implementation of LID projects. Even where technical, administrative and managerial positions are filled, specific skill sets such as planning, procurement, contract administration, monitoring, reporting, financial reporting and auditing are not as strong as they should be given the responsibilities.

A further issue is that the District Technical Office (DTO), which answers to

DOLIDAR, is supposed to have been replaced by a one-stop, multi-sub-sector District Infrastructure Development Office (DIDO) within the DDC, as required by GON Regulation promulgated in April 2001 and mentioned in the LIDP. This has not happened. There are several different ministries and technical agencies involved, who would appear reluctant for whatever reason to enforce this regulation. At the same time, although transport infrastructure makes up the most of a district’s infrastructure, in many instances there are institutional difficulties in the working relationship between the DTO and the DDC’s staff to the point where some DDCs have recruited their own technical staff to by-pass the involvement of the DTO. Other issues amongst others are believed to include political interference with the procurement and contract administration process, alleged corruption, fraud and poor fiduciary management, delays in releasing budgeted funds from the centre in a timely manner throughout the financial year, and the general lack of organisational and personal accountability for performance in the public administration.

Hence, a picture emerges of fault lines and inconsistencies at the heart of the

difficulties facing LID delivery. However, there are two broader questions to be asked and answered. First, in setting out under the LIDP the requirement for empowering districts and municipalities to plan, prioritise and implement LID, was a structured, programmatic approach and timeframe envisaged regarding how this transition to local empowerment and capacity for all LID would take place? If the answer in substantive terms is “No”, then it should come as no surprise that improvements have been variable across the country to date. Secondly, there have been successes, but are the reasons known and the lessons to be learned identified, and have successful districts and municipalities become benchmarks and centres of best practice for other districts and municipalities to follow?

The conclusion is that tinkering with organisational structures here and there or

providing more capacity building courses in a disconnected manner and so on, are unlikely to truly capture the factors of real success and sustainability. In summary, what is needed is a strategic review of mission-critical elements for key LIDP-related institutions that have responsibilities of one form or another to promote, facilitate and empower the delivery of LID through districts and municipalities.

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2.2 The Analytical Framework

The analytical framework for such a review has a structured, hierarchical examination starting with key policies governing LID, the key institutions and their mandates, deliverables, responsibilities and authority, the key organisations including their roles and functions, the critical capacities needed, and the strategy for achieving the deliverables.

First, there needs to be recognition that the different expectations regarding LID are

not reflected clearly and consistently. For all the good intentions of the LIDP it has gaps and areas of ambiguity. Most importantly, there is no timeframe for completing sufficient or minimum empowerment so as to meet yet-to-be defined criteria of success. Hence, reviewing the LIDP should be top priority. Indeed, in the LIDP itself, there is provision4 for a policy review every five years, the first of which is due this year, 2066 in the Nepali calendar, corresponding to 2009/10. As a result of this review, there should be consensus amongst key stakeholders on updating and aligning the respective mandates of the various LIDP institutions and equally important the deliverables that they are expected to achieve. Everything flows from this clarity of vision and expectations.

It is important to stress that institutions and organisations are not the same, a not-

uncommon misconception. Institutions describe legally established bodies and their inter-relationship (i.e. institutional arrangements) at different levels, which are mandated specific roles and responsibilities ranging from formulating and executing policy, planning, monitoring and evaluation to implementation, with commensurate authority and resources. In this case, the institutions and the institutional arrangements are those that focus on delivering LID. Organisations on the other hand, are how institutions or bodies internally structure or organise their roles, functions and resources in order to meet the designated responsibilities and deliverables effectively and efficiently under a coherent strategy. If there are ambiguities or inconsistencies regarding the mandate, responsibilities, authority and deliverables of a particular institution, then it should not be surprising if that institution has sub-optimal organisational arrangements.

Secondly, in regard to LID-related organisations, the principle of “structure follows

strategy” is pertinent. An organisation’s roles and functions should be structured in such a way that the designated deliverables can be met as effectively and efficiently as possible. This can only be done by following a properly thought-out strategy that is explicitly supported by a focused and effective organisational structure. In the same way that LID mandates, responsibilities, authority and deliverables should be coherent and aligned from the ministry through to the districts, so to should the strategies at the different levels be coherent and aligned, which in turn will be reflected in the organisations at the different levels.

Thirdly, the strategy for achieving deliverables can be broken down into three

components – (i) core processes, (ii) key systems, and (iii) resources and support. These are interdependent. Hence, in strengthening say a key process such as planning, one must also look at the information system that is critical to that process, identifying, upgrading and reinforcing the planning skills in the people charged with planning, as well as ensuring there are support, quality assurance and feedback.

Fourthly, coherent and aligned organisations are nothing if they remain on paper

only; they must have the appropriate capacities (in terms of expertise and staff numbers) to apply the strategies for delivery. 4 LIDP (2061/2004), clause 7.11: Policy Review

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In summary, institutions cover the “What” and “Why” questions, organisations cover

the “Who”, “Where” and “When” questions, and capacities cover the “How” questions. The reconciliation between these, which are mission-critical, can only come about when the vital interaction between the “foundations” - institutions, organisations and capacities - and the “superstructure” of strategy – core processes, key systems, resources and support, all of which are necessary for successful delivery, is clearly understood. 2.3 Implications for MLD and DOLIDAR

Whereas one cannot pre-empt the findings and recommendations of an LIDP review exercise, one could anticipate a number of possible conclusions based on good practice, gap analysis and focussing on enhancing LID effectiveness and efficiency.

MLD is the central ministry with the mandate for promoting local governance,

administration and local infrastructure. It may not be necessary to revise its mandate as such but rather to look at how that mandate has reflected and should reflect the current LIDP, particularly in terms of deliverables and how they should be achieved. Having said that, MLD’s responsibilities, activities and resources have increased under the 10th Plan and the Three-Year Interim Plan. A provisional conclusion at this stage is that the mandate could remain essentially the same but the institutional arrangements and organisational structure need to be updated to properly align with these significant changes. This is critical when considering the ever-increasing demand for policy-setting for LID including municipal infrastructure, strategic coordination amongst central ministries and agencies, promoting sector-wide approaches across LID sub-sectors, stronger monitoring and reporting on poverty reduction outcomes and value for money, and for ensuring better oversight and accountability of the significant increases in conditional grants and other funding.

DOLIDAR was formed by Cabinet Decision No. 33/055, dated 2055/5/8 in the Nepali

calendar (August 1998), and had its mandate extended and organisation increased under Cabinet Decision No. 9/058, dated 058/12/6 (March 2001) to cover setting up DTOs and other additional work. Its core mandate is (i) planning and management of rural infrastructure, (ii) providing guidance and technical and managerial support to LBs for sustainable development and management of local infrastructure; (iii) promoting suitable and local technology, (iv) strengthening technical capabilities of LBs, (v) facilitating human resource development in the LBs, and (vi) resource planning and donor coordination for rural infrastructure.

However, with the increase in its responsibilities, activities and resources as a result

of the significant increases at MLD level mentioned above, DOLIDAR needs clarification of the deliverables under its mandate or at least, greater clarity of how the wider LIDP (i.e. all seven sub-sectors) is to be implemented and not just RTI, and DOLIDAR’s role in that implementation. The LIDP document5 contains ambiguous language (inadvertent or otherwise) suggesting that it may not have been rigorously vetted at the consultation and drafting stage by the key stakeholders. The upshot of this is that there gaps in the responsibilities and authority framework, not least of which is not having a programme management approach to LID delivery and accountability.

At the district and municipality level, there is a need to address the dysfunctional

institutional arrangements regarding the DTO and the DDC’s or Municipality’s technical capacity to plan, implement and monitor projects in all seven LID sub-sectors. MLD needs to take a strong lead, as part of its strategic coordination role, in bringing all sector-specific technical expertise into a unified District technical section. 5 English language version

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3. INSTITUTIONAL AND ORGANISATIONAL REVIEWS TO DATE 3.1 Key Reviews

There have been several reviews of MLD’s and DOLIDAR’s institutions and organisations in recent years. The key reviews of particular importance to local infrastructure development are: (i) ISAP Review in 20076 and (ii) ISAP Review in 20097. In addition there has been an assessment regarding necessary re-alignment of DOLIDAR so that it may move forward with the Rural Transport Infrastructure Sector-wide Approach (RTI SWAp)8 in 2009/10. These are discussed below, and the conclusions drawn are inputs to formulating how best to resolve institutional and organisational gaps and ambiguities for more effective and cost-efficient delivery of local infrastructure. DOLIDAR’s current organisational structure is presented in Appendix 1. 3.2 ISAP Organisational Review (2007) 3.2.1 Overview

The overall objective of the study was to identify resource gaps in MLD and DOLIDAR and prepare a report identifying human resources needs, existing strengths and weakness including needs of equipment and training programmes. The study focused on the assessment of existing resources and gaps to perform existing organisational mandates of the MLD, DOLIDAR and DTOs. The Consultant undertook a Strengths/Weaknesses assessment of the three institutions, summarising as follows:

Table 3.1: Strengths and Weaknesses Assessment

Organisation Strengths Weaknesses

Ministry of Local Development

Adequate, experience and professional human resources to perform existing tasks enable MLD in formulation of policy for LID Sector.

Lack of HRD plan, logistic plan, lack of appropriate monitoring mechanism and efficient ICT networking within the ministry and with the local bodies.

Department of Local

Infrastructure Development and Agriculture Roads

Capable government organization at central level having network in all the 75 districts of Nepal with technically competent human resources in LID sector.

Lack of HRD plan and programme for human resource development, inadequate expert human resources in road bridge construction, difficulty in implementation of capacity development programmes to the local bodies' staff due to lack of adequate financial resources, and non-compliance to personnel transfer and deputation policy.

District Technical Offices

The only technical office in the district working under DDC as per the decentralized norms in the field of local infrastructure development sector with ability to work with local people at local level.

Lack of clear-cut roles and responsibilities and authorities of DDC and DTO in order to carry out LID activities.

Source: MK Bhattarai report - Executive Summary 6 MK Bhattarai: Assessment Report on Identification of Staff and Resource Needs against the existing Organizational Structure of MoLD/DoLIDAR (November 2007). 7 MG Maleku: Organisational Structure, Functions and Development Plan (August 2009) 8 DOLIDAR - RTI SWAp folder 10: Institutional Strengthening and Capacity Building (September 2009)

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3.2.2 Conclusions and Recommendations (2007 Report)

The Consultant concluded that most of the positions in the studied organisations were filled with some exceptions, and also:

• MLD/DOLIDAR/DTO staffs were managerially and technically competent to perform present job. Organisation structures of the MLD, DOLIDAR and DTO were more or less suited the areas of works at that time. However, they have to be tailor-made to perform the specified functions at all levels in order to transform the LID Policy, 2004 i.e. restructuring.

• A comprehensive HRD plan was not in place.

• Functional role conflicts between the DDCO and DTOs were observed.

• Lack of vertical and horizontal ICT linkages were found.

• Logistics were partially available at all levels, but even those available were under-utilised.

• Monitoring of programmes and performance was not being carried out regularly, and with inadequate coordination among DDCs, DOLIDAR and MLD.

His recommendations included the following, amongst others:

• Conduct organisational restructuring study of MLD/DOLIDAR/DDC.

• Conduct detail training needs assessment (TNA).

• Prepare a comprehensive HRD plan.

• Prepare a detail logistic plan and procure necessary equipment.

• Develop and implement an ICT network at all levels.

• Prepare and follow an annual plan of operation by each division/section of MLD and DOLIDAR

• Prepare a comprehensive monitoring framework and monitoring plan.

• Harmonize the authority delegation mechanism.

• Re-define functions of the DTO and DDCOs and harmonise them.

• Maintain effective coordination mechanism among MLD, DOLIDAR, DDCO, DTO and other line agencies. Prepare and adopt quality assurance (QA) framework

3.3 ISAP Organisational Review (2009) 3.3.1 Overview

As a result of the recommendations made in the 2007 Review, a second review

exercise was undertaken in 2009. The different Consultant on this occasion observed that there had been sharp increases in the mandates of MLD, DOLIDAR and local governments after the approval of Local Infrastructure Development Policy (2061/2004), which had been supported by sectoral policies. In the absence of capacity at the local government level to implement and on the part of MLD and DOLIDAR to support and facilitate LBs, the result was slow development combined with inadequate services, which contradict the aspiration of the people and the goal of GON. There has been and continues to be a strong demand of infrastructure development and progress in effective and transparent governance.

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Only six or seven years ago MLD and DOLIDAR together were managing approximately NR four billion per year through their programmes. At present they have to manage in excess of NR 36 billion, which is likely to increase further as the government tries to meet the people’s demands. Crucially, he observed that it was not possible for all agencies to manage the increasing mandates and resources effectively and efficiently with the present organisation structures. He concluded that it was time to restructure the present organisations of MLD, DOLIDAR and LBs so that they could fulfil their respective mandates to maximum effect to meet the expectations and the aspirations of the people.

In his opinion, governance without the support of development cannot win the hearts

and minds of the people, whatever good it may provide. Improvements in governance have to be complemented by development, and vice-versa, or else they are not sustainable. Hence, key organisations have to be re-designed or re-aligned so that they can understand and complement each other within the collective framework of their mandates. However, organisations are made up of people and to be truly effectively staff must cherish to work in a team, enhance their capacities and feel motivated to contribute to achieving the goal.

3.3.2 Conclusions and Recommendations (2009 Report)

The Consultant concluded that the focus of restructuring MLD is integration of Governance and Infrastructure Development and the capacity enhancement of MLD staff. The main functionaries within MLD are technical and administrative professionals. Administrative professionals are more focused to governance and its improvement, whereas technical professionals are more focused on infrastructure development. The restructured organisation should integrate these two professional streams better, encouraging them to work more closely together to produce a stronger impact on governance and infrastructure development. He offered two options for the restructuring of the MLD organisation.

In the context of increased mandate, present workload and ever-increasing demand,

the Consultant concluded that DOLIDAR should be restructured from three divisions to five divisions so as to address (i) increasing demand for motorable bridges for all-weather roads, and (ii) human resource development to enhance capacity of all stakeholders related to local infrastructure development. The new divisions, in his opinion, should address the increasing programmes of local motorable bridges and trail bridges, and the strong need for human resource development and technology development and research. In the long run DOLIDAR needs to create separate divisions for facilitating all seven LIDP sub-sectors effectively.

At present the DTO, as the technical office of the DDC, has to support all LID under

the DDC together with local infrastructure maintenance. Only 42 districts are headed by a Senior Divisional Engineer (SDE), with the remaining 33 districts headed by an Engineer. On top of supporting LID for the DDC, the DTO has also to support VDCs in infrastructure development at present. In the context of increasing infrastructure development in the districts and municipalities, the Consultant concluded that in order for the DTO to coordinate, facilitate, guide and implement LID including ensuring the following of standards, norms and directives, (i) all present DTO have to be headed by an SDE assisted by an enlarged technical staff, and (ii) the DTO itself could be renamed as District Infrastructure Development Section (DIDS), all other things being equal.

To be effective in achieving socio-economic development in a district the DDC has to

best utilise all the sectoral agencies by bringing them under it, and through coordination, interaction and integrated planning, to ensure that they complement each other, as soon as possible so as to create a synergy effect for development. Once this is organised by the DDC it should be possible to expedite and accelerate development and increase resources needed for further development. Ultimately it will strengthen the development capacity of the district along with administrative and management capacity. Hence, the objective for the

8


DDC has to be in full command of all LIDP sub-sectors within its mandate along with enhanced coordinating mechanism with central agencies to expedite development. Accordingly a medium-term re-organisation of the DDC has been recommended to strengthen local government in the spirit of decentralization. In order to strengthen local government core local cadres have to be stable and professional in their concerned works for which Public Service Commission for local government has to act as soon as possible. Outsourcing of non-core functions and services should be actively followed. 3.4 Other Assessments - RTI SWAp (2009) 3.4.1 Overview

In March 2009, DOLIDAR, with support from DFID, mobilised a multi-disciplined team of national and international experts to formulate the RTI SWAp Framework Document and the supporting folders. A key folder was one that dealt with the institutions, organisations and capacities required for an effective SWAp. The conclusions and the recommendations of the SWAp formulation team were wide-ranging, taking note of earlier work of this nature namely by the earlier reviews mentioned above. Overall, the conclusion was that the move to a RTI SWAp, being but the first for LID, will have a wide impact on the institutional arrangements and capacities at various levels.

3.4.2 Conclusions (RTI SWAp formulation 2009)

In summary, a SWAp is a process-oriented approach. It has to be harmonized with

national systems and policies and procedures. National ownership is the heart of SWAp. MLD and DOLIDAR have to own the RTI SWAp and have to internalize it well. The RTI SWAp can be implemented in phases. The implementation strategy has to be reviewed periodically and adjusted as per the implementation experiences.

Any re-organisation of DOLIDAR at this time has to be interim in nature due to GON

constraints and the constitutional state of flux. It has to take into account the distinct possibility of devolution of responsibilities currently held by MLD and DOLIDAR to the states/provinces and the districts under an approved and operational federal system including administration and fiscal affairs. The emerging SWAp role of DOLIDAR will be more focused as a national centre of reference on RTI technical expertise, standards, norms, monitoring, reporting and having a fit-for-purpose information system. It is more likely to be responsible for backstopping, capacity building, oversight of quality assurance, monitoring and reporting.

3.4.3 Recommendations (RTI SWAp formulation 2009)

A comprehensive human resources and capacity building plan in RTI sub-sector is

missing, and needs to be undertaken. Hence, a fresh review of current training programmes is important and arising from this, training programmes and events will have to be developed on the basis of properly undertaken training needs analyses. Capacity of the institutions involved has to be developed in a systematic way by adopting a capacity development process cycle.

Government has to decide about amending the DTOs’ positioning within the DDCs,

which preferably, has to be converted to a technical section (for example, as a District Infrastructure Development Section (DIDS) as suggested by MG Maleku) of the DDC and has to be assigned technical and managerial responsibilities. Financial, budgeting and fund flow mechanisms and authorization routes have to be clearly settled. The confusion regarding the DDC/DTO relationship has to be cleared up and a proper authorization mechanism has to be put in place so that DTO can function as a multi-sector-wide technical and managerial section of DDC. Programme planning, implementation, procurement,

9


10

monitoring and reporting, accounting, auditing and reporting systems all need to have a proper assessment, identifying the gaps at each level, and with a strengthening plan developed. The capacity of the districts is unlikely to be homogenous; hence this heterogeneity has to be addressed properly through targeting. Similarly, human resource capacity may also differ. “One size” is unlikely to fit all. Solutions have to be found at each particular level.

The organisational design of DOLIDAR and DDC/DTOs has to be revisited in

keeping with the Government’s strategy for rural infrastructure and the RTI SWAP and the move to a federalist state in the long run. At present the districts can be classified on the basis of their workload and resource levels such as category “A” (resource-sufficient for workload), category “B” (resource gaps for workload) and category “C” (resource-poor for workload). The organisational structure of each district should be developed on a needs basis for each district. As local projects under the SWAp are rolled out, each DDC can decide to recruit for a specific period additional technical staff, contract out project-specific services, or some combination of these options. Current human resources strengths of the centre and the districts have to be re-assessed in the light of the RTI SWAp. On the basis of this re-assessment, core and non-core positions have to be segregated. Core positions have to be filled by competent people from the centre or districts; non-core positions can be contracted out or out-sourced as per the appropriate regulations.

A Minimum Conditions/ Performance Measures (MC/PM) system for RTI has to be introduced to measure the quality and other procedural performance with specific process and result indicators. That has to be follow appropriate guidelines and manuals. This work should be coordinated and in line with MLD’s MC/PM performance rating systems. For that purpose joint teams can work with Local Body’s Fiscal Commission (LBFC) team with additional technical personnel as necessary. On the basis of MC/PM evaluation results, incentive-based conditional grants can be allocated as well as the personal performance rating also built up at the same time.

3.5 Summary Conclusions

A summary of the current situation is given in Figure 3.1. From the three reviews above, perhaps not unsurprisingly, there is considerable consensus on what needs to be done. Many but not all conclusions and recommendations align, but the general direction is consistent. First, the key policies, particularly LIDP, have to be reviewed and updated. Secondly, mandates, including responsibilities, authority and deliverables, for LID have to be re-visited, adjusted, harmonised and re-aligned at the different levels. Thirdly, the organisational structures at the different levels have also to be adjusted and re-aligned. Fourthly, the capacities of the organisations at the different levels have to be increased and enhanced in accordance with a comprehensive HRD Plan. Fifthly, ICT and information systems must be improved and have connectivity at all levels. Other improvements to processes, systems and the coordination of all available resources are also mentioned.

With these in mind, informed by a progress assessment of the Institutional

Strengthening Action Plan9(ISAP) and a synthesis on outstanding needs10, a comprehensive proposal11 for institutional strengthening and capacity building has been made along the above lines. However, given the importance of getting the policies and mandates right so that the institutions and organisations can be improved, a detailed proposal as an input to any future strategic review is now made. ..

9 PJ Shah: ISAP Progress and Review - (November 2009) 10 MP Dalton: A Synthesis of Institutional Strengthening and Capacity Building Needs - (November 2009) 11 MP: Dalton: A Road Map for Institutional Strengthening and Capacity Building (2010-2014) - (November 2009)


11

Mandate: (as per LIDP only- Section 7.3.2.2) Full responsibility for formulation,

implementation, monitoring, evaluation, maintenance + operation of LIDP locally

Deliverables: (as per LIDP only) • LID sub-sector plans (i.e. DTMP) • Participatory plan formulation • Provision of local level procurement • Local infrastructure incl. maintenance • Accountability and transparency

MINISTRY OF LOCAL DEVELOPMENT

District Development Committees (including DTO)

Department of Local Infrastructure Development and Agricultural

Roads

Mandate: Policy formulation – decentralization,

governance, local infrastructure + inclusion Aid mobilisation and coordination LB and LID budget and fund operation Monitoring, reporting and oversight Strategic coordination

Deliverables (as per LIDP only – Sections 6 + 7.9) • Devolution of LID programmes to LBs • Appropriate institutional structures and

technical capacity building for LID in place • Promotion of people’s participation and

contribution to LID including resources • Harmonisation among LID donor agencies • Preparation and implementation of LIDSAP

Mandate: Technical department to MLD Operate Infrastructure Offices at local level Strategy for and planning of LID Promotion of suitable technology/approaches

Deliverables: • Preparation and implementation of LIDSAP • Technical standards, guidelines, manuals • Technical capacity building of DDCs • Technical backstopping of DTOs

Roles: (as per LIDP only – Section 7.3.2) Focal ministry for LID Issue public works directives Coordinate internal/external funds flows Disaster mitigation Facilitator for capacity enhancement of LBs

Functions: • Policy formulation • Information management • Appropriate technology and research • Social audit assistance • M& E; managing third party technical audits

Roles: Technical centre of reference to MLD + LBs Facilitator to LBs for LID implementation Information resource centre Progress monitoring and reporting

Functions: • Technical and managerial support to LBs • Formulation of LID strategies and plans • National technical standards+ norms; QA • Human resources development • Monitoring and evaluation of LID • RTI donor coordination • Information and documentation

Roles: (as per LIDP only) Refer to Mandate - LIDP Section 7.3.2.2

Functions: (as per LIDP only) • Participatory planning for LID • Technical designs, specifications + costs • Procurement + contract administration • Implementation supervision + reporting • Financial management + reporting • Asset management including planning

and budgeting for maintenance

FIGURE 3.1: Summary of Indicative Mandates, Deliverables, Roles and Functions (current)

..


4. ENHANCING ORGANISATIONS - ROLES, FUNCTIONS, STAFFING AND RESOURCES

4.1 The Importance of Aligning Policy, Mandates and Deliverables 4.1.1 Introduction

As all three reviews covered in Section 3 mentioned, policies and mandates have to be clarified and defined before one can optimise inter-related organisational structures. Within a mandate, it is not always clear what the institution in question has to deliver. There will be, for example, references to responsibilities for policy making, planning, programming, budgeting, coordinating, monitoring, auditing, consulting, promoting and so on. These are only actions or activities, important as they may be; however, what are often not clear are the explicit outputs and outcomes that contribute to the desired end-state, namely the deliverables for which the institution has single-point responsibility. All too often institutions are looked at in isolation, and across institutions mandates including deliverables are not clear, with roles and functions more focused on activities and not sufficiently on deliverables. What is needed is a framework for looking across the piece, and for the LID institutions, a template such as Figure 4.1 below should prove useful.

Figure 4.1: A Framework for examining Institutional Alignment within LID Policy

1. Mandate 2. Deliverables 3. Roles 4. Functions

Ministry of Local

Development

DOLIDAR

District Development Committee or Municipality

District Technical Office 4.1.2 Specific Issues to be addressed

What is becoming clearer is that responsibilities for and indeed the LID-specific deliverables themselves are ambiguous and overlapping. One way to deal with this is take the current LIDP document as the starting point and ask a number of questions:

• Could LID be delivered nationwide as per GON’s expectations by MLD and the DDCs /

Municipalities alone, and if not, why not? • What is it that only DOLIDAR can do for the LIDP key stakeholders? • What is exactly is missing from the framework of responsibilities for the successful

delivery of LID nationwide?

From the answers, however initial, it can be concluded that MLD and DDCs jointly do not have the organisational strengths and capacity to deliver LID. However, DOLIDAR’s current responsibilities cannot make up for these shortcomings. What is needed is a programmatic approach under MLD leadership, to delivering LID. By this is meant that notwithstanding the responsibility and authority of DDCs and Municipalities under the LIDP to plan, prioritise, design and implement LID, by looking at and executing LID as a national programme with local design and implementation, the deliverables can be made much clearer and thus the roles and contributions of all, with a greater potential for success.

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The major challenge is to get the responsibilities at the different levels right and aligned. In summary MLD becomes the “client” as the government representative, responsible for executing LID. It will set and monitor the policy, regulations, directives and budget for LID, with DDCs and Municipalities continuing to have responsibility for carrying out detailed LID planning, prioritisation, design, procurement and implementation. DOLIDAR, as a centre of the technical and managerial expertise, has its responsibilities amended to cover three roles – enabling, quality assurance oversight and programme management. 4.2 Ministry of Local Development 4.2.1 Overview of Issues and Constraints

The current organisational structure for MLD is given in Appendix 2. The latest and detailed assessment work on the MLD was carried out by the Organisation Development consultancy in 200912, and was discussed in section 3.3 above. The consultant noted that originally the focus of the ministry was on governance and strengthening the political system, with less focus on development which was mandated to line ministries and departments. At the same time no demarcation of mandate in local infrastructure management had been made until the LID Policy, (2061/2004) was adopted.

At present the volume of MLD’s work in infrastructure development has increased

dramatically and is expected to continue to increase in the future, since MLD has to address almost all local infrastructure within its mandate (as per LIDP clause 2). More than 70% of the MLD’ total budget is for infrastructure development, but it does not have technical professionals in the organisation. So that the MLD can properly set LID policy including guiding, monitoring and evaluating, then it must explicitly recognise its role of technical oversight to see that the results and deliverables are achieved. The consultant observed that at present in irrigation, river training, rural energy, solid waste management and social infrastructure sectors there is confusion. Furthermore, in the consultant’s opinion, there has been no substantive move towards devolution to the LBs by central line agencies as per LIDP, even though it is now five years since LIDP was enacted. MLD is leaving itself open to criticism for not acting to rectify the situation as per LIDP clause 6.2.6, and implementing the policy in coordination with the line agencies. He also suggested the formation of an independent watch-dog or advisory board for the ministry, to monitor the process, procedures, impediments in the works and offer perspectives and solutions to the key problems facing the MLD. In particular it would study the working of the present system and identify necessary measures to improve performance.

For those elements of LIDP such as RTI that are being implemented by the DDCs and

supported by DOLIDAR, there is no substantive oversight as to whether the LID targets are being reached, the completed works are sustainably maintained, and the work procured is value for money. There are considerable weaknesses in the monitoring, reporting and evaluation (MRE) function in MLD, which means that reported progress – physical and financial - is rarely challenged or verified. The fault in part lies in the managerial weakness of MLD insofar as the importance to oversight of having a strong MRE function has not been recognised. Staff are understood to perceive the MRE unit as a career backwater.

Hence, there is consensus among consultants and advisors who have studied the LID

problems in some detail, that there is an urgent need for stronger technical leadership and functions for LID policy setting and monitoring. To this must be added adopting a programmatic approach to LID execution with GON “client”. This also takes into account greater recognition of the local infrastructure needs of municipalities. 12 MG Maleku: Organisational Structure, Functions and Development Plan (August 2009)

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4.2.2 Proposal – Ministry of Local Development

On the assumption that the LIDP will be reviewed and adjusted in the not-too-distant future, the best-fit organisational structure is believed to be that presented in Appendix 3. For clarity the diagram does show the ancillary bodies such as LBFC secretariat, various commissions and committees and the Local Development Training Academy The organigram ties in relatively closely with the conclusion of the Organisational Development consultant. The key changes between the existing and proposed structures are as follows:

→ There is one new Division proposed – Local Infrastructure, with two Sections – (i)

Rural Infrastructure (covering LIDP clauses 2.1, 2.2, 2.3, 2.4, and 2.7), and (ii) Municipal Infrastructure (covering LIDP clauses 2.4, 2.5 and 2.6). This allows all seven LIDP sub-sectors to be covered, and for attention to be given RTI to which most of the LID budget is allocated as well as the overlap of water, sewerage and sanitation in both rural and urban areas.

→ Given the predominantly technical nature of municipal management, planning and environmental management, in order to ensure greater national technical leadership and impact of the key Municipal Management Division it would be most appropriate if the Division Chief was of Joint Secretary: Technical grade.

→ A new Section – Gender Equality, Social Inclusion and Poverty Alleviation (GESIPA) - is to be added to the Planning and Foreign Aid Coordination Division.

The details are presented in Appendix 3.

4.2.3 Roles and Functions, Staffing and Resources

The 2009 Report of the Organisational Development consultant sets out the roles, functions, staffing and resources for enhancing MLD. So as to avoid confusion, it is intended to summarise the consultant’s work duly amended to reflect a wider consensus in Appendix 4. The one exception is the new Section – Gender Equality, Social Inclusion and Poverty Alleviation, which does not appear in the consultant’s report. 4.3 District Development Committees and Municipalities – Technical Services 4.3.1 Overview of Issues and Constraints

The two previous reviews (2007; 2009) have captured the major issues and constraints regarding the DDCs and Municipalities. In order to see the proposal in 4.3.2 in its correct context, the issues and constraints are summarised as follows, drawing on the 2009 Report:

• The absence of elected representatives in DDC including sub-committees. The Local Development Officer (LDO) acts as DDC chairman together with LDOs’ functions, and unfortunately as a public servant centrally appointed by MLD, may sometimes be lower in rank to the head of the DTO.

• Once budgets for projects and maintenance are approved by DDC, DTO prepares detail programme and estimates of the works from its own technical personnel after necessary surveys. The issues here are whether the DTO has sufficient technical staff to maintain and update a cost database, and what protection is there against interference in technical standards and cost estimates. Oversight and audit are not substantive including possible inter-district comparisons and benchmarking.

• Based on prevailing Procurement Act and Regulations, work is implemented by users’ committee or by contracting on a competitive basis, using standard contract document government-approved. The issues here relate to political interference with the procurement process, a major concern.

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• There is strong competition among different politically affiliated users committees to grasp the work for personal. There is a prevalence of “hidden” contractors and the use of heavy machines even though the planning and cost estimates are made on LEP basis to benefit the poor, the unemployed and disadvantaged people. The trend is towards increasing commercialisation and without oversight, abuse. It is understood that sometimes conflict among different users committees has been so strong that it obstructed to start the work.

• There is no legal binding on or enforcement of users’ committees to complete contracted works as per prescribed specification and to rectify defects in the defect liability period normal in most infrastructure projects. This raises major concerns on the efficacy and transparency of engaging users’ committees in works related to infrastructure. This does not help sustain local infrastructure once completed or to promote economic growth. Unfortunately users’ committees, under political influence, appear to want to do the minimum quality work with little consideration for proper completion or maintenance. This reflects the absence of a quality assurance approach.

• Most local works are small and numerous which are difficult to manage with a small core group of technical staff in the DTO, particularly in the absence of a clear policy of and budget for outsourcing non-core technical support services.

• There is no quality assurance system or understanding, reflecting the culture in districts where local infrastructure is funded by Government block grants and internal resources. However, recently districts are getting increasing resources for infrastructure development from development partners, and as a result quality assurance culture is starting to be established in some districts. If quality and exemplary performance can be visibly rewarded, this will act as peer pressure on other districts, thus progressively assuring proper and sustainable infrastructure that will help socio-economic development.

• There are no technical personnel in Village Development Committees (VDCs) and with many scattered projects across a the district, under-resourced DTOs face a major difficulty. The results in ad-hoc project preparation and weak supervision.

• Performance can be different from district to district. There are successes based on trust, cooperation and coordination between LDO and DTO Chief in the district even under the present institutional arrangement. However, in the main, there is a difficult relationship between DDC led by the LDO and the DTO. There is understandable confusion between the respective staffs, and this absence of a team approach and proper chain of command have been an impediment in the development process. In some DTO the staff members apparently do not feel responsible for the outcome of the project but rather they are just tools to produce outputs from the resource invested.

In addition, the 2007 Report identified weaknesses in the DTO namely, (i) unclear work

description between DDCO and DTO, (ii) administrative personnel involved in technical works like evaluation, cost estimate etc. of construction works, (iii) lack of financial authority in DTO to perform its job effectively, (iv) local bodies are not encouraged to follow technical norms and guidelines, and (v) inadequate technical authority. 4.3.2 Proposal – District Technical Office

The 2009 Report of the Organisational Development Consultant sets out a proposal for enhancing the provision of technical services within the DDC by incorporating the DTO. He also put forward a suggestion to re-name it as the District Infrastructure Development Section (DIDS) in the long-term as envisaged in the LIDP, all other things considered. Due to the importance of the DTO the Consultant’s proposal is attached as Appendix 5 for completeness.

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4.3.3 Roles and Functions, Staffing and Resources

The 2009 Report of the Organisational Development Consultant sets out the roles, functions, staffing and resources for enhancing the DTO under the DDC. So as to avoid confusion, it is not intended to repeat or re-present the Consultant’s work here on which there is a consensus. 4.4 DOLIDAR 4.4.1 Overview

DOLIDAR’s mandate, responsibilities and deliverables have all changed significantly since the department was formed just over ten years ago, but these changes have not been yet been formally recognised in an overall coordinated framework for local infrastructure development. The current organisational arrangement is no longer appropriate for the significant and ever-increasing work-load. The ambiguities and gaps in the LIDP need to be rectified as soon as possible. The need to address municipal infrastructure is ever-pressing, as well as adopting a systemic approach to gender equality and social inclusion, information and communication, and the widening demand for human resources development. However, improving DOLIDAR cannot be done in isolation; it must be done in tandem with improvements in the MLD and in district organisational arrangements and capacities. A coherent proposal is now made that addresses these issues, even through a review of the LIDP may be some way off as of now, the general direction for enhancing DOLIDAR does not pre-empt or constrain the most likely changes to the LIDP-driven mandates, responsibilities and deliverables. 4.4.2 Proposal – Enhancing DOLIDAR’s Contribution

In the earlier sections there was an important discussion on the pressing need for a programmatic approach as the best way for bringing overall focus and structure to the delivery of LID by all actors. This has been taken up in the proposal for enhancing MLD itself, in section 4.2 above. The same now applies to DOLIDAR, whose mission should be something along the lines of: …. providing outstanding managerial and technical expertise for the planning, delivery and sustainability of local infrastructure that is fit-for-purpose and value for money… In this way, the need for DOLIDAR to provide management capability as well as technical excellence is explicitly recognised. The question is - what type of management capability? The answer is programme management of the national LID strategy and programme by DOLIDAR under the leadership of MLD as GON “client”. This is vital, and in order for DOLIDAR to perform this mission-critical function for the whole ministry it must have the appropriate authority to do so. Current ambiguities in lines of authority reporting are simply not effective and will continue to frustrate MLD’s desire for LID accountability.

The proposal for enhancing DOLIDAR is a combination of renaming some divisions,

introducing new divisions and sections to meet current and forecast needs better, as well as re-aligning some functions internally and having project coordination units under the main Divisions. There is a case for endorsing the suggestion in the 2009 Report of renaming DOLIDAR as simply the “Department for Local Infrastructure Development (DOLID”). This strengthens the primary focus on effective LID delivery. The proposed organigram is presented in Appendix 6. The key changes between the existing and proposed structures are as follows:

→ There are two new Divisions proposed – (i) Municipal Infrastructure Division, with two

Sections and project coordination units, and (ii) Human Resources Development Division, with two Sections.

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→ The existing Rural and Agricultural Roads Division is renamed to better reflect its role; it is also increased and strengthened with three Sections and project coordination units.

→ The existing Other Infrastructure Division is renamed to better reflect its role; it is also increased and strengthened with three Sections and project coordination units.

→ The existing Planning, Monitoring and Foreign Aid Division is renamed to better reflect its role; it is also increased and strengthened with four Sections.

→ The DTOs, although under the direct control of the DDC, will report to and be supported by the various Divisions on a matrix basis regarding technical matters.

→ The Pool of currently unassigned personnel, those on study leave or on special assignments, is recognised separately and reports to the Director-General. Pool members in project coordination units report to the respective Division Chief.

→ Other Sections such as General Administration and Financial Administration remain as before, reporting to the Director-General.

4.4.3 Rural Transport Infrastructure Division

This Division addresses the needs of LIDP clause 2.1 namely RTI to which most of the LID budget is allocated, and hence has the greatest work-load. The three Sections are – (i) Roads, (ii) Bridges, and (iii) Trail Bridges. The project coordination units encompass existing RTI projects. Description of roles and functions, staffing and resources is given in Appendix 7. 4.4.4 Water Supply, Sanitation, Irrigation and Other Infrastructure Division

This Division addresses the needs of LIDP clauses 2.2 – 2.7. The three Sections are –

(i) Water Supply, Sewerage and Sanitation (covering LIDP clause 2.4), (ii) Irrigation, River Training and Rural Energy (covering LIDP clauses 2.2 and 2.3), and (iii) Building and Social Infrastructure (covering LIDP clauses 2.5 in part and 2.7). The project coordination units once launched will encompass the various projects in this area. The busiest Section at present is the first, but in time work-load in the other two Sections will increase. A description of the roles and functions, staffing and resources is given in Appendix 8. 4.4.5 Municipal Infrastructure Division

This new Division is required so that DOLIDAR can respond to the needs of municipal infrastructure as requested by GON. The two Sections are – (i) Municipal Infrastructure (covering a range of local infrastructure mentioned in the LIDP, particularly clause 2.5, and insofar as they occur in the urban context), and (ii) Environment and Solid Waste Management (covering LIDP clause 2.6, as well as functioning as a centre of reference on environmental protection matters on LIDP in general). The project coordination units once launched will encompass the various projects in this area. A description of the roles and functions, staffing and resources is given in Appendix 9.

4.4.6 Planning, Monitoring and Donor Coordination Division

This Division has been renamed to better reflect the leadership role DOLIDAR plays in coordinating development partners and central agencies. The former title was deemed inappropriate, somehow reflecting a dependency on foreign aid, which after the Paris Declaration13 and the Accra Agenda for Action14 the title should reflect the national leadership of the partnership for development. There are two existing Sections – (i) Planning and Donor Coordination, and (ii) Monitoring and Evaluation, as well as two new Sections – (iii) Gender

13 Paris High-Level Forum on Aid Effectiveness (28 February – 02 March 2005) 14 Accra High-Level Forum on Aid Effectiveness (02 – 04 September 2008)

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Equality and Social Inclusion (GESI), and (iv) Information and Communication. A description of the roles and functions, staffing and resources is given in Appendix 10. 4.4.7 Human Resources Development Division

This is new Division required to give due recognition and focus to a strategic approach to looking at capacities and skills at all levels for effective LID delivery and sustainability, as well as promoting applied research and development for more cost-effective, sustainable LID. There are two Sections – (i) Research and Technology Promotion, and (ii) HRD and Training. A description of the roles and functions, staffing and resources is given in Appendix 11. 4.4.8 Other Sections

There are two main sections – Administration and Finance – that have been assessed in the Report (2009) by the Organisational Development Consultant, whose observations were: (i) Administrative Section:

This section keeps personnel records, and supports the Director-General in managing staff in both the Department and in the DTOs. It facilitates evaluation of personnel. It is supposed to prepare an organisational development plan as per the changing mandate of the Department in consultation with the Director-General, the division and sections. It handles the complaints process to address individual or group complaints, promotes the maintenance of discipline, and oversees the process for reward and sanction. It also undertakes record keeping of consumables and permanent assets, and their management.

The section is headed by Under Secretary (Adm.), assisted by two Section Officers. (ii) Financial Administration Section:

The section does day-to-day financial administration of the Department. It prepares quarterly, semi-annual and annual consolidated financial reports, budget disbursements, reimbursements, monthly financial reports, collection and compilation. It facilitates investigation and clearance of financial irregularities. It advises the Director-General on financial matters and gives opinion on related decision-making including time extension on contracts. It promotes financial discipline in related agencies and related works. It makes recommendations for budget release to different agencies as per approved programme. It monitors financial aspects and auditing of local bodies, and provides directives on sensitive misappropriation. It reviews the financial working procedures of local bodies, recommending improvement and capacity enhancement of local staffs regarding financial administration.

The section is headed by Under Secretary (Finance), assisted by section officer (finance). ..

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5. THE NEXT STEPS

The Proposal should not be seen in isolation. There is the preceding Road Map proposal, which has been submitted for consideration at this time. This, by its nature and title, sets the framework for undertaking a comprehensive review, linking institutional strengthening, organisational improvement and capacity building together. From reviewing the proposals together, government and other stakeholders can prioritise and implement the key activities in a proper sequential manner with appropriate oversight.

A good starting point would be to establish and operationalise (i) the LID Advisory

Committee, (ii) the HRD Advisory Committee, and (iii) the three Working Groups – (a) Institution Strengthening and Capacity Building, (b) Sector Performance Monitoring and Evaluation, and (c) Information.

.

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APPENDICES

1. Existing DOLIDAR Organisational Structure

2. Existing MLD Organisational Structure

3. Proposed Enhancement - MLD Organisational Structure

4. Details of Proposed Enhancement of MLD

5. Proposal (MG Maleku) – District Technical Office

6. Proposed Enhancement - DOLIDAR Organisational Structure

7. Rural Transport Infrastructure Division

8. Water Supply, Sanitation, Irrigation and Other Infrastructure Division

9. Municipal Infrastructure Division

10. Planning, Monitoring and Donor Coordination Division

11. Human Resources Development Division ..


Appendix (1): Existing DOLIDAR Organisational Structure


..

DOLIDAR

Director-General Personal Assistant

Rural & Agricultural Roads Division

Deputy Director-General

Other Infrastructure Division

Deputy Director-General

Planning, Monitoring and Foreign Aid

Division Deputy Director-General

Finance / Accounting. Section

- 1x Accounts Officer - 3x Accountants

Rural & Agricultural Roads Section

- 1x Division Engr. - 2x Engineers

Trail Bridges Section

- 1x Division Engr. - 4x Engineers

Rural Drinking Water + Sanitation +

Buildings Section - 1x Division Engr. - 2x Engineers

Irrigation, River Control + other

Infrastructure Section - 1x Division Engr. - 2x Engineers - 1x Sub. Agr Engr.

General Administration Section

- 1x U/Secretary - 2x Section Officers - 1x Legal Officer - 25x other staff

Programme / Project Offices

- 2x Division Engr. - 10x Engineers - 5x Jnr. Engineers

Planning and Donor Coordination Section - 1x Division Engr. - 2x Engineers - 1x Agri. Officer - 1x Draughtsman

District Infrastructure Development Office

District (1): ……….

Monitoring, Envir. + Technology Section

- 1x Division Engr. - 2x Engineers - 1x Sociologist - 1x Mechanic - 1x Electrician

District Infrastructure Development Office

District (75): ……….

21


Appendix (2): Existing MLD Organisational Structure

Personal Office

Secretary

General Administration Division

Self-Governance Coordination Division

Planning and Foreign Aid Coordination Division

Legal Advisory Section

Personnel Administration Section (1)

Human Resources Development Section

Local Bodies Support Section

Population and Vital Registration Section

MINISTER OF LOCAL DEVELOPMENT

Department of Local Development and Agricultural Roads

Planning and Donor Coordination Section

Monitoring and Evaluation Section

Municipal Management Division

Municipal Management Section

Financial Administration Section


Decentralised Work Plan Coordination

Section

Municipal Planning Section

Environment Management Section

Information, Documentation and Publication Section

Excluding non-core bodies, committees, etc

22


23

Secretary

General Administration Division

Self-Governance Coordination Division

Planning and Foreign Aid Coordination Division

Legal Advisory Section


Human Resources Development Section

Local Bodies Support Section

Population and Vital Registration Section

MINISTER OF LOCAL DEVELOPMENT

Department of Local Development and Agricultural Roads

Planning and Donor Coordination Section


Municipal Management Division

Municipal Management Section

Financial Administration Section


Decentralised Work Plan Coordination

Section

Municipal Planning Section

Environmental Management Section

Information, Documentation and Publication Section

Local Infrastructure Division

Rural InfrastrucSection

ture

- District Development Committees

- Municipalities

Gender Equality, Social Inclusion and Poverty Alleviation

Section

Excluding non-core bodies, committees, etc

Municipal Infrastructure Section

Appendix (3): Proposed Enhancement - MLD Organisational Structure

..


Appendix 4: Details of Proposed Enhancement of MLD 1. Local Infrastructure Division

The role of this Division is to be a national centre of policy, oversight and evaluation

regarding the progress of local infrastructure programmes by LIDP sub-sector, the cost-effectiveness and impact of local infrastructure, the proper maintenance of constructed infrastructure assets, and DOLIDAR’s management of a fit-for-purpose national LID asset management system with connectivity to all local asset management systems. It will also advise other MLD Divisions on the allocation formula regarding grants for local level infrastructure. 1.1 Rural Infrastructure Section Functions

• In consultation and coordination with DOLIDAR, prepare policy-related papers and options for LID and its components. Maintain information database on LID policies, etc.

• Advise and assist DOLIDAR to address difficulties being faced with implementing the integration of DTO into the DDC’s organisational structure, liaising closely with other MLD Divisions and Sections to resolves constraints and obstructions at both local and central levels.

• Advise and assist MLD to carry out strategic coordination of key stakeholders as envisaged under the LIDP. Develop system of coordination with concerned public and private agencies to facilitated coordinated planning in the water resources and sanitation (RWS) sub-sectors.

• In coordination with DOLIDAR and MPPW, facilitate local bodies in preparing physical development plans.

• In coordination with DOLIDAR and Ministry of Environment and Science and Technology (MOEST), facilitate the development of rural energy schemes, promoting potential studies.

• Review and approve Sectoral Master Plans in all LID sub-sectors. • Facilitate preparation of strategy to mobilise resources for implementing long-term plan in

LID sub-sectors, including giving opinions for consideration in decision-making. • Monitor and evaluate progress and outcomes of the sector-wide approach (SWAp) and

programme in RTI and other LID sub-sectors, and recommend improvements to enhance efficiency.

• Oversee DOLIDAR in the development and refinement of processes and procedures in construction and maintenance of local infrastructure, so as to improve value-for-money, cost-efficiency, sustainability and transparency, and to increase participation and ownership of stakeholders.

• Oversee DOLIDAR’s efforts to operationalise a local infrastructure asset management approach and system including condition surveys, inventory and cost base at local and central levels.

• Review DOLIDAR’s consolidated reports on LID sub-sectors, giving attention to achievements against plan and budget, quality, value-for-money and sustainability.

• Review outcomes and impact of individual LID sub-sector interventions on poverty reduction, gender equality and social inclusion with GESIPA Section. Also coordinate regarding incorporation of LID issues, particularly RTI, into national living standards survey (NLSS) and census.

• Monitor DOLIDAR’s “Core Skills” upgrading programme in consultation with the MLD’s Human Resources Development Section and other Sections. Facilitate capacity building of the stakeholders in the sub-sector in coordination with DOLIDAR.

• Advise and assist MLD’s Planning Division in the preparation of the annual plans in LID sub-sectors, including coordination regarding prioritisation and formulation issues.

• Identify opportunities for LID research and pilot schemes with DOLIDAR that promote innovation in management, planning and technology, enhance efficiency and use local materials and knowledge. Review DOLIDAR’s research programme and results.

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1.2 Municipal Infrastructure (including Solid Waste Management) Section:

• In consultation and coordination with DOLIDAR, prepare policy-related papers and options for municipal infrastructure and solid waste management sub-sectors. Prepare summary of decisions within the Division and give opinion regarding urban development.

• Represent the ministry in dealings with MPPW and other ministries relating to urban development and solid waste management planning and policy.

• Advise and assist DOLIDAR to address difficulties being faced with implementing the integration of DTO into the DDC’s organisational structure as the new DIDS with particular attention being given to municipal technical services and support, liaising closely with other MLD Divisions and Sections to resolves constraints and obstructions at local/central levels.

• Conduct feasibility studies for the planned infrastructure development of municipalities. Based on feasibility studies in coordination with DOLIDAR advise municipalities on implementation and maintenance

• Facilitate the implementation of the municipalities’ annual programme of urban development and infrastructure including solid waste management.

• Advise and assist DOLIDAR on moving towards a sector-wide approach (SWAp) and programme in municipal infrastructure, recommending improvements to enhance efficiency.

• Oversee DOLIDAR in the development and refinement of processes and procedures in construction and maintenance of municipal infrastructure assets, so as to improve value-for-money, cost-efficiency, sustainability and transparency, and to increase participation and ownership of stakeholders.

• Oversee DOLIDAR’s efforts to operationalise an municipal asset management approach and system including condition surveys, inventory and cost base at local and central levels.

• Review DOLIDAR’s consolidated reports on municipal infrastructure development, giving attention to achievements against plan and budget, quality, value-for-money and sustainability.

• Advise and assist, in coordination with DOLIDAR, in the dissemination of information necessary for urban development, operation and maintenance.

• Coordinate with the MLD’s Human Resources Development Section and DOLIDAR in the capacity building of Municipalities and urban stakeholders. Monitor DOLIDAR’s “Core Skills” upgrading programme in consultation with the MLD’s HRD Section.

• Coordinate with Planning and Foreign Aid Coordination Division and the Rural Infrastructure Section regarding the resource needs for urban development and infrastructure.

Staffing The Division should be headed by a Joint Secretary with a technical background in local infrastructure development and has a good understanding of development economics. To start with, the respective Sections should be staffed with at least one technical professional with experience in each of the seven LIDP fields. As there is already a Municipal Planning Section, MLD could see how to utilise existing staff from other sections on a matrix basis, from DOLIDAR, and from other relevant ministries or departments on an interim basis. The Section Chiefs should be of Senior Divisional Engineer (SDE) grade. A common resource would be a professional with experience in information management, archiving and communications (web-pages, newsletters, fact-sheets, etc.). This person could be located in the Rural Infrastructure Section but with a brief to advise and assist the other two Sections.

Resources As the Division is new, getting GON approval and budget for staff positions may be problematic in the current climate. To overcome this, it is proposed that the MLD first see if the Division could be set up as a “shadow” unit alongside the Planning and Donor Coordination Division, utilising existing staff from other sections on a matrix basis, from DOLIDAR, and from other relevant ministries or departments on an interim basis. This shadow unit could be called say the “Local Infrastructure Centre” or something similar, which would carry out the core functions from

25


those listed above, subject to availability of competent staff. The four key positions to start with are the Division Chief, an RTI professional, a WRS professional and a Solid Waste Management professional. If MLD could start with these, supplemented by local specialists in the other fields on an interim or outsourced basis and possibly funded by development partners, then the added value of the Division should be proven within 12 – 18 months, making it easier to secure GON approval. 2. Gender Equality, Social Inclusion and Poverty Alleviation Section

Role

The role of the Section is to be a centre of reference regarding policy setting, monitoring, oversight and evaluation for ensuring gender equality, social inclusion and poverty alleviation (GESIPA) policies, principles and strategies are properly addressed and incorporated in a timely manner into the planning, budgeting, implementation, accountability and sustainability of all empowerment, governance and local infrastructure programmes under the MLD. It will work closely with and advise DOLIDAR, DDCs and Municipalities in relation to operationalising strategies through LID sub-sector programmes and local projects. Functions The functions of the Section are: (i) to establish and operationalise a professionally competent centre of reference for gender equality, social inclusion and poverty alleviation policies, information and best practices, (ii) to advise MLD, NPC, other central agencies, development partners and other stakeholders on GESIPA policy-making, strategies and auditing, (iii) to advise and build the competence of planners at the central and local levels on how to identify and address GESIPA issues, (iv) to prepare, maintain and update guidelines and guidance notes on GESIPA policies, principles and best practices for use by stakeholders at central and local levels, (v) to review major programme proposals for compliance with current GESIPA policies and best practices, (vi) to monitor and evaluate programmes, and if requested by MLD, individual projects for compliance with current GESIPA policies and for identifying lessons learned and gaps in current policies, (vii) to build up and maintain a technically sound body of knowledge and database on GESIPA for access by planners and practitioners, (viii) to carry out awareness raising and capacity building at central and local levels, (ix) to advise and assist in social and community auditing, and (x) to prepare pertinent reports and papers particularly an annual report for the MLD to submit to the NPC on the impact, effectiveness and constraints of programmes addressing GESIPA. Staffing The Section should preferably be headed by a professional with a background in development economics with broad experience in social inclusion and poverty alleviation programmes. To start with, the Section should be staffed with at least one professional with experience in each of the following fields (i) gender equality issues, polices and best practices, (ii) social inclusion issues, policies and best practices, (iii) poverty alleviation issues, policies and best practices, and also a professional with experience in information management, archiving and communications (web-pages, newsletters, fact-sheets, training materials, etc.) Resources As the Section is new, getting GON approval and budget for staff positions may be problematic in the current climate. To overcome this, it is proposed that the MLD first see if the Section could be set up as a “shadow” unit under either the Planning and Donor Coordination Section or the Monitoring and Evaluation Section, utilising existing staff from those and other sections including internal transfers or on a matrix basis. This “shadow” unit could be called say the GESIPA Centre, which could carry out the core functions from those listed above, subject to availability of competent staff. The two key positions to start with are the provisional Section leader (with broad experience in social inclusion and poverty alleviation) and the Gender Equality professional. If MLD could start with these two positions, supplemented by local specialists in the other fields on an interim or outsourced basis and possibly funded by development partners, then the added value of the Section should be proven within 12 – 18 months, making it easier to secure GON approval.

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Appendix 5: District Technical Office (DTO)

As proposed by MG Maleku (August 2009)15

MLD

DDC Secretariat

. .

DoLIDAR

DOH

DEO DHO DAO DVO

DDC

DIDS

M/E &

R/D Sec.

S. Dev.Sec. Int. .Aud.Sec.

Pl./Adm. Sec.

Publicity/MIS Section

DOV

Acc. Sec.

DOE

DOA

Municipality

VDC

Note:

This proposal takes a long-term perspective, looking at what the situation might be or should be when all line agencies decentralise their local technical offices to the responsibility and authority of the DDC, as envisaged in the LIDP. It is open to discussion and improvement by stakeholders.

15 MG Maleku: Organisational Structure, Functions and Development Plan (August 2009)

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DTO: In the context of increasing scope of works related to seven sectors of infrastructure development it has been relevant to change the name of DTO to District Infrastructure Development Section. At present DTO is main arm to implement infrastructure development and upkeep in the district as per the directives of DDC; the districts are increasingly supported by donors with increasing resources to meet development goal of Government within the time frame planned by Government. All the districts are being addressed to meet fundamental need of infrastructure in the district; hence work load has increased tremendously which needs proper management and knowhow to deliver the output as planned. At present in 42 districts DTOs are headed by SDE and in 33 districts DTOs are headed by Engineer assisted by support staffs (sub-Er & Assist Er.).In comparison with other established technical departments the core technical personnels in DTO is significantly low related to work volume, which has been one of the main causes of delayed output and not being complied with quality assurance as per specification. In the context of increasing infrastructures investment it is not possible to handle the volume of works from the present core group of technical personnel within present structure of DTO, hence at least the DTO headed by Er. has to be upgraded to be headed by SDE and assisted by 1-3 nos. of Er. with training on management, planning, procurement, monitoring and contract administration along with quality assurance and other relevant work related to professions. Need based training, orientation, refresher trainings must be the annual program of HRD to enhance efficiency of DTO, it must be for all staffs. The focus of capacitating Core DTO staffs has to be in planning, implementation, procurement, management, quality assurance, monitoring and reporting in order to get best value of money. At present DTOs are not well supported by logistics in survey equipments, in lab. equipments, office equipments and transport vehicles to do its work properly. Norms for logistics has to be established by DoLIDAR, according to which logistics has to be supplied to DTO to facilitate the works, it has to be accompanied with training in its use related to works. It must be a part of capacity building and institutional strengthening of DTO. In order to avoid misunderstanding and work in team it is recommended DTO to work within DDC along with other district level line agencies with clear responsibility and accountability in infrastructure development and upkeep. In order to cope up increasing infrastructure development, based on the experience of line ministries, norms for outsourcing of professionals has to be established which will facilitate to complete increasing infrastructure works in time with assured quality, at the same time the professional team will complement professional need of DTO with responsibility and accountability, supporting the core permanent staff of DTO, in the case of large scale infrastructure development in district.

28


29

Organization of District Infrastructure Development Section (Short term):

Irrigation & other infrastructure

development Section Er., Sub-Er., Assist.

Sub-ER.

W/S and Building Section; Er., Sub-Er., Assist. Sub-Er.

42 Districts with 3 Ers. Ilam, Dhankuta, Udaypur, Sarlahi, Sindhuli, Ramechhap, Dolakha, Sindhupalchowk, Dhading, Nuwakot, Bhaktapur, Kavre, Kapilbastu, Makwanpur, Palpa, Shyangja, Tanahun, Gorakha, Kaski, Baglung, Banke, Bardia, Surkhet, Doti, Kanchanpur, Jhapa, Sunsari, Morang, Saptari, Siraha, Dhanusha, Mahottari, Kathmandu, Lalitpur, Rauthut, Bara, Parsa, Chitwan, Nawalparasi, Rupundehi, Dang, Kailali, Bajura, Bajhang, Darchula, Dandeldhura, Baitadi, Achham.

GOVERNMENT OF NEPAL Ministry of Local

Development Department of Local

Infrastructure Development DISTRICT INFRASTRUCTURE

DEVELOPMENT SECTION Chief District Engineer

Rural/Agr. Roads, Er., Sub-Er., Assistant

Sub-Er.

33 Districts with 2 Ers. Taplejung, Panchther, Sankhuwasabha, Tehrathum, Solukhumbu,Bhojpur, Khotang, Rasuwa, Manang,Parbat,Gulmi,Argakhachi,Lamjung, Myagdi, Mustang, Peuthan, Salyan, Mugu, Dolpa, Humla, Jumla, Kalikot, Dailekh, Rukum, Rolpa. Jajerkot. Dailekh


30

..

Personal Assistant

DOLIDAR (or DOLID)

Director-General

Rural Transport Infrastr. Division

DDG

Planning, Monitoring, & Donor Coord. Division

DDG

Roads Section

Section Chief

Bridges Section

Section Chief

Irrigation, Rivers, & Rural Energy

Section Section Chief


Planning and Donor Coord. Section

Section Chief


Section Chief

Gender Equality and Social Inclusion Sect.

Section Chief

Project Coord. Units (1…..)

District Technical Offices

Districts (1- 75):

Finance Admin. Under-Secretary

General Admin. Under-Secretary

Water Sply. Sanitation, Irrigation & Other

Infrastructure Division DDG

Building & Social Infrastr. Section

Section Chief

Rural Water & Sanitation Section

Section Chief

HRD and Training Section

Section Chief

Human Resources Development Division

DDG

Research and Technology

Promotion Section Section Chief

Trail Bridges Section

Section Chief

Municipal Infrastructure Division

DDG

Municipal Infrastr. Section

Section Chief

Environment & Solid Waste Mgmt

Section Section Chief

Information and Communication Sect.

Section Chief Project Coord.

Units (1….)

Project Coord. Units (1….)

Pool

Appendix (6): Proposed Enhancement - DOLIDAR Organisational Structure


Appendix (7): Rural Transport Infrastructure Division16

1. Role

The role of this Division is to be a national centre of technical and managerial expertise regarding the design and implementation of roads and motorable bridges as part of the Local Road Network (LRN), suspension bridges on trails, the proper maintenance of constructed assets and the operation of an RTI asset management system. In order to provide all-weather transport infrastructure the division may have to be involved in the implementation of complex bridges with local bodies, together with preparing standards, specifications, manual and directives to facilitate design and implementation of roads, motorable bridges and suspension bridges. 2. Functions

• Prepare and update a long-term plan for local roads (rural DTMP and urban Master Plan) in coordination with DDCs and Municipalities and in coordination with Dept. of Roads and MLD (Local Infrastructure Division), prepare policy related to rural and urban roads.

• Oversee the preparation of Integrated Rural Accessibility Planning to update DTMP. Ensure that copies of all DTMPs are retained electronically at DOLIDAR in a central database. Update DTMP Approach Manual periodically.

• Represent DOLIDAR in expediting the devolution of rural and urban roads from line agencies to local bodies.

• Based on a long-term plan, prepare rural and urban road projects for implementation in coordination with DDCs and Municipalities; monitor implementation and outcomes.

• Prepare, update and disseminate standards, specifications, norms, manuals and guidelines for the survey, design, construction, supervision and costing of roads, motorable bridges and pedestrian bridges. Maintain a library of standards, specifications, norms, guidelines, papers, texts, presentations, best practices, etc, for reference.

• Develop a maintenance system including standards, specifications and norms for rural transport infrastructure assets, and embed and reinforce this system through capacity building, backstopping and monitoring of local bodies, promoting the establishment of a road maintenance fund.

• Advise local bodies on preparing and updating an RTI asset management system, ensuring connectivity to a central database at DOLIDAR. Ensure proper quality assurance and validation are carried out.

• Promote environmental awareness and emerging technology to reduce environmental impact and to increase efficiency and value for money.

• Prepare and update appropriate contract documents and guidelines for the procurement of bridges; disseminate among concerned local bodies with appropriate training.

• Plan and prioritise motorable bridges and pedestrian bridges to be constructed based on criteria agreed and integrated rural accessibility planning; mobilise resources.

• Support Local Government in the implementation of complex and long bridges. • Facilitate implementation of roads and bridges through backstopping and recommending

effective and efficient technology. Promote intra-district planning of roads and bridges. • Coordinate with HRD Division in preparation of HRD Plan related to rural and urban roads,

motorable bridges and pedestrian bridges. • Coordinate with HRD Division in the need for skills upgrading in road and bridge design,

surveying, implementation, monitoring and quality control, for local stakeholders. Facilitate and support HRD Division in conducting training courses and workshops.

• Promote or conduct applied research and development in roads and bridges for cost effective construction and maintenance, including the use of indigenous technology and local materials, in coordination with HRD Division.

16 This Appendix draws on the 2009 Report of the Organisational Development Consultant, where there is consensus.

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3. Sections, including Staffing 3.1 Roads Section:

Primary responsibility is for the preparation and facilitation of roads programme in districts including monitoring, in coordination with DDCs and Municipalities. Coordinate preparation of DTMPs by districts including updating them. Facilitate districts in the preparation of Integrated Rural Accessibility Planning. Maintain a central copy of all DTMPs. Guide the development, operating and maintaining of an RTI asset management system with connectivity to the central database, updating the local and central registers at least once a year based on a validated report from each district. Coordinate with HRD Division in planning and delivering capacity building of DDC/DTO/VDC and other stakeholders. Other responsibilities are derived from the list of functions in (2) above.

The section is headed by an SDE, assisted by two Engineers. 3.2 Bridges Section:

Primary responsibility is for the preparation of standards, norms and specification for local motorable bridges in coordination with DOR. It will prepare an annual programme of motorable bridges on local roads in consultation with local roads division and local bodies. Advise MLD (Local Infrastructure Division) regarding policy related to local bridges. Operate and maintain a database of local bridges and prepare manual and directives for maintenance. Prepare criteria for prioritizing bridges to be constructed, with wider consultation of stakeholders. Monitor the implementation of the bridge program and time and again conduct impact study of bridge before and after construction. Coordinate with HRD Section to address the HRD need in motorable bridges to enhance capacity in motorable bridge building on LRN. Other responsibilities are derived from the list of functions in (2) above.

The section is headed by an SDE (Structures), assisted by two Engineers. 3.3 Trail Bridges Section:

In coordination with other Divisions, local bodies, MLD (Local Infrastructure Division) and development partners involved in rural transport infrastructure sector, the Section will prepare an annual programme for pedestrian bridges. Advise MLD (Local Infrastructure Division) on policy-related matters and procedures related to pedestrian bridges. Monitor the implementation of the annual programme, paying particular attention to quality, cost-effectiveness and sustainability. Conduct impact study of pedestrian bridges before and after construction, in coordination with the DDC. Maintain a database of pedestrian bridges, the plans to maintain them; monitor the timing and quality of maintenance undertaken. Coordinate with HRD Division and local bodies to address the need for skills upgrading. Other responsibilities are derived from the list of functions in (2) above.

The section is headed by an SDE, assisted by two Engineers. 3.4 Project Coordination Unit: Responsibilities and staffing as agreed with development partners on a case-by-case basis for existing RTI projects. 4. Resources

For details of resource needs for this Division and Sections, refer to the 2009 Report of the Organisational Development Consultant. .

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Appendix 8: Water Supply, Sanitation, Irrigation and Other Infrastructure Division17

1. Role

The role of this Division is to be a national centre of technical and managerial expertise regarding the design and implementation of water supply and sanitation, irrigation and river training, micro-hydro power and alternative energy, housing and building, and social infrastructure, the proper maintenance of constructed assets and the operation of sub-sector asset management systems at the local level with connectivity to the centre.

2. Functions

• Facilitate the devolution of infrastructure programmes related to water supply and sanitation, irrigation and river training, micro-hydro power and alternative energy, housing and building, and social infrastructure, from the line agencies to local bodies working together with MLD and related ministries.

• Prepare a strategy to implement small irrigation and river training works in consultation with Dept. of Irrigation and DWIDP.

• Facilitate the preparation of an annual programme of small irrigation and river training works.

• Prepare a working policy and strategy to implement a water supply and sanitation programme at local levels, and develop system to monitor and evaluate them.

• Support districts to plan, design and implement social infrastructure including buildings at local level.

• Support districts to plan, design and implement rural energy schemes. • Prepare, update and disseminate standards, specifications, norms, manuals and

guidelines for the survey, design, construction, supervision and costing of non-RTI infrastructure. Maintain a library of standards, specifications, norms, guidelines, papers, texts, presentations, best practices, etc, for reference.

• Develop a maintenance system including standards, specifications and norms for local infrastructure assets excluding RTI, and embed and reinforce this system through capacity building, backstopping and monitoring of local bodies.

• Advise local bodies on preparing and updating an local asset management system, ensuring connectivity to a central database at DOLIDAR. Ensure proper quality assurance and validation are carried out.

• Promote environmental awareness and emerging technology to reduce environmental impact and to increase efficiency and value for money.

• Prepare and update appropriate contract documents and guidelines for the procurement of bridges; disseminate among concerned local bodies with appropriate training.

• Support and coordinate with HRD Division regarding training programmes, study visits, workshops and seminars related to other infrastructure.

• Prepare directives and guidelines to cope with water-induced disasters in the districts. Prepare and promote disaster prevention guidelines to mitigate and manage disasters.

• Provide technical support in building design and alternative energy. 3. Sections, including Staffing 3.1 Water Supply and Sanitation Section:

Based on the priority of districts prepare an annual programme for water supply, sewerage and sanitation. Monitor and evaluate the progress and compile the progress received and prepare a unified report. Coordinate with local bodies and HRD Division for the capacity building of local


33


bodies and stakeholders to facilitate efficient management and development of water supply, sewerage and sanitation. Advise on proper solutions to get rid of arsenic, lime incrustation, etc. in water supply to reduce health hazards. Prepare standards, specifications, norms, guidelines and working procedures for local bodies; disseminate with appropriate training, and monitor their application. Advise and assist local bodies in preparing local programmes for water supply, sewerage and sanitation. Prepare periodic updates and annual reports on the progress and constraints in the sub-sector.

The section is headed by an SDE, assisted by two Engineers. 3.2 Irrigation, Rivers and Rural Energy Section:

Prepare an annual programme for rural irrigation and water-induced disaster controls in coordination with local bodies within their mandate and facilitate implementation. Monitor and evaluate the implementation of the programme; recommend reforms to the process and procedures for efficient implementation, operation and maintenance. Facilitate local bodies in rural energy and micro-hydro development including operations and maintenance in coordination with the concerned ministry and NEA. Prepare an annual programme in coordination with local bodies and facilitate implementation. Monitor and evaluate the programme; refine the process and procedures for efficient implementation in coordination with related agencies. Coordinate with local bodies and HRD Division for the capacity building of local bodies and stakeholders to facilitate efficient management and development of the infrastructure. Prepare periodic updates and annual reports on the progress and constraints in the various sub-sectors.

The section is headed by an SDE, assisted by two Engineers, one civil and the other electrical. 3.3 Building and Social Infrastructure Section:

Prepare and disseminate latest building code and monitor its application by local bodies. In coordination with Department of Building and Physical Planning disseminate standards and facilitate local bodies in physical planning, facilitate in design of public buildings and other infrastructure, at local level. Advise and assist local bodies to prepare, cost and implement building programmes. Coordinate with local bodies and HRD Division for the capacity building of local bodies and stakeholders to facilitate efficient management and development of building programmes. Prepare periodic updates and annual reports on the progress and constraints in the various sub-sectors.

The section is headed by an SDE, assisted by one or two Engineers depending upon the by the work-load. 3.4 Project Coordination Unit: Responsibilities and staffing as agreed with development partners on a case-by-case basis for existing and future projects. 4. Resources

For details of resource needs for this Division and Sections, refer to the 2009 Report of the Organisational Development Consultant. .

34


Appendix 9: Municipal Infrastructure Division 1. Role

Given the move towards urbanisation, the importance of providing adequate infrastructure for municipalities increases. Within the MLD there is a Municipal Management Division, with proposed responsibilities for policy and oversight regarding local infrastructure applying to municipalities. Hence, the role of this DOLIDAR division is to be a national centre of technical and managerial expertise regarding the design and implementation of urban infrastructure including solid waste management, the proper maintenance of constructed assets and the operation of a municipal asset management system. In order to ensure the provision of infrastructure the division may have to be involved in the implementation of certain projects with local bodies, together with preparing standards, specifications, manual and directives to facilitate design and implementation of specific urban infrastructure.

2. Functions

• Advise and assist MLD in the preparation of urban development and solid waste management policies, programmes, and budgets. Liaise closely within DOLIDAR.

• Prepare an operating policy and strategy for developing urban infrastructure with local bodies and supporting them with advice and assistance during implementation.

• Advise and assist local bodies in conduct feasibility studies for proper urban development. • Prepare an operating policy and strategy for effective management of solid waste. • Prepare, update and disseminate standards, specifications, norms, manuals and

guidelines for the survey, design, construction, supervision and costing of urban infrastructure. Maintain a library of standards, specifications, norms, guidelines, papers, texts, presentations, best practices, etc, for reference.

• Develop a maintenance system including standards, specifications and norms for urban infrastructure assets, and embed and reinforce this system through capacity building, backstopping and monitoring of local bodies and municipalities.

• Advise local bodies on preparing and updating an urban asset management system, ensuring connectivity to DOLIDAR. Ensure QA and validation are carried out.

• Promote environmental awareness and emerging technology to reduce environmental impact in urban areas and to increase efficiency and value for money.

• Prepare and update appropriate contract documents and guidelines for the procurement of urban infrastructure; disseminate among concerned local bodies with appropriate training.

• Support and coordinate with HRD Division regarding training programmes, study visits, workshops and seminars related to urban infrastructure.

• Prepare directives and guidelines to cope with urban infrastructure disasters. Prepare and promote disaster prevention guidelines to mitigate and manage disasters.

3. Sections, including Staffing 3.1 Municipal Infrastructure Section:

Advise and assist MLD in preparing policy-related papers and options for urban sector. Advise MLD on matters related to Interim Plan and Master Plan, and the Annual Plan of each Municipality. Facilitate and promote planned infrastructure development including costing and budgeting, and improvement in the infrastructure services of municipalities including operations and maintenance. In consultation and coordination with MLD, prepare policy-related papers and options for municipal infrastructure sub-sector. In coordination with MLD, evaluate the capacity of municipalities to provide technical services and management. Facilitate resource mobilisation for urban infrastructure development, capacity building and service improvement. Represent DOLIDAR in dealings with MPPW and other ministries and agencies relating to urban development planning and policy.

35


Facilitate municipalities in conducting feasibility studies for planned urban development.

Based on feasibility studies and in consultation with MLD, advise municipalities on implementation and maintenance. Facilitate the implementation of the municipalities’ annual programme of urban development. Promote the moving towards a sector-wide approach (SWAp) and programme in municipal infrastructure, recommending improvements to enhance efficiency. Develop and refine processes and procedures in construction and maintenance of municipal infrastructure assets, so as to improve value-for-money, cost-efficiency, sustainability and transparency, and to increase participation and ownership of stakeholders. Develop, promote and operationalise a municipal asset management approach and system including condition surveys, inventory and cost base, with interconnectivity between local and central levels. Prepare consolidated reports on municipal infrastructure development, giving attention to achievements against plan and budget, quality, value-for-money and sustainability. Collect and disseminate information necessary for urban development, operation and maintenance. Coordinate with the Human Resources Development Section and other divisions and sections in the capacity building of Municipalities regarding training programmes, study visits, workshops and seminars related to urban planning, etc.

This section is headed by an SDE, assisted by two Engineers.

3.2 Environment and Solid Waste Management Section:

As the centre of reference on local environmental matters relating to local infrastructure – rural and urban – this section has cross-cutting responsibilities and functions beyond the urban sector. Advise and assist MLD in preparing policy-related papers and options regarding environmental protection (EP). Advise MLD on environmental matters related to Interim Plan and Master Plan, and the Annual Plan of each district and municipality. Facilitate and promote planned EP as an integral part of LID including costing and budgeting, and improvement in EP including operations and maintenance. In consultation and coordination with MLD, prepare EP policy-related papers and options. Collect and disseminate information necessary for EP, operation and maintenance In coordination with MLD, evaluate the capacity of municipalities to provide EP services and management. Facilitate resource mobilisation for EP, capacity building and service improvement. Represent DOLIDAR in dealings with other ministries and agencies relating to environmental planning and policy.

In order to reduce the impact of environmental degradation before the start of construction

of any local infrastructure projects, advise and monitor the carrying out of appropriate studies (i.e. IEE, EIA) based on Environmental Act and Regulation. Advise local bodies on how to prepare an EMAP and follow it strictly at the time of construction. Prepare and promote guidelines and ensure dissemination of same to al LID sub-sectors, and monitor application. Advise and assist in the proper planning of solid waste management for municipalities. Based on the priority of district and municipality prepare annual programme for solid waste, paying particular attention to addressing hazardous and biological/medical/industrial waste. Coordinate with the Human Resources Development Section and other divisions and sections in the capacity building of Municipalities regarding training programmes, study visits, workshops and seminars.

This section is headed by an SDE, assisted by one or two Engineers.

3.3 Project Coordination Unit: Responsibilities and staffing as agreed with development partners on a case-by-case basis for existing and future projects. 4. Resources

DOLIDAR to examine opportunities for internal transfers for all positions. .

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Appendix 10: Planning, Monitoring and Donor Coordination Division18

1. Role

The role of this Division is to act as the centre for planning, enabling, monitoring and coordination of activities relating to DOLIDAR’s deliverables. In particular, the Division will perform the mission-critical role of information support manager for the whole of DOLIDAR’s operations, as well as strengthening DOLIDAR’s responsibility for general coordination of development partners as the move towards sector-wide approaches continues to grow. 2. Functions

• Facilitate and oversee the preparation of long-term plans and DOLIDAR’s annual Business Plan. Ensure GESI strategies and principles are incorporated into plans and programmes.

• Raise awareness of GESI policy, strategy and principles amongst the stakeholders through guidelines and training courses. Ensure there is a GESI focal point in all districts.

• Monitor and assess the progress of sub-sectoral programmes and the Business Plan. Prepare consolidated progress reports on behalf of DOLIDAR.

• Assess the constraints being encountered in programme implementation, and propose additional or corrective measures to solve them. If needed, initiate action to resolve constraints in consultation with concerned actors and stakeholders.

• Develop and operationalise an information and communications system that permits horizontal and vertical connectivity, and is fit-for-purpose for the different Divisions and Sections in DOLIDAR and for the DDC / DTO. Establish GIS-based data management and communication of data and information to and from centre and local bodies incorporating appropriate ICT within the all related institutions.

• In consultation with other Divisions and Sections in DOLIDAR develop and operationalise an effective LID asset management system and sub-systems primarily for the districts’ use but with full interconnectivity with and interrogation capability by DOLIDAR.

• Develop and operationalise an effective monitoring and reporting system including GIS overlays primarily for the districts’ use but with full interconnectivity with and interrogation capability by DOLIDAR.

• Facilitate the fulfilment of obligations to be borne by Government as per the agreement made with development partners. Act as secretariat for DOLIDAR/donor fora as needed.

• Facilitate the enhancing of the planning and management capacity of local bodies integrating available resources from the government and development partners.

• Initiate evaluation of sub-sector programmes and projects as required, coordinating participation by key stakeholders.

• Prepare and operationalise a comprehensive communication strategy, as outline in RTI SWAP folder 14: Communications Strategy.

• Facilitate the capacity building of all stakeholders as required, in consultation and coordination with HRD Division and other divisions.

3. Sections, including Staffing 3.1 Planning and Foreign Aid Coordination Section:

Facilitate the preparation of local infrastructure development plans and programmes in coordination with MLD, NPC, other Divisions within DOLIDAR and with LBs. Mobilise resources with development partners to meet the needs in infrastructure development at local level and to build local capacity in planning, monitoring and reporting. As per agreement fulfil all requirements


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of GON, coordinating with ministries, agencies and stakeholders. Facilitate the capacity building of all stakeholders as required.

The section is headed by SDE, assisted by two Engineers.

3.2 Monitoring and Evaluation Section:

Develop and operationalise an effective monitoring and reporting system including GIS overlays primarily for the districts’ use but with full interconnectivity with and interrogation capability by DOLIDAR. Monitor and assess the progress of sub-sectoral programmes and the annual Business Plan. Prepare consolidated progress reports and other reports on behalf of DOLIDAR. In coordination with other Divisions and Sections identify and undertake annual monitoring activities in all programmes and existing projects. Address the constraints to successful completion. Prepare roster of independent experts for third party audits. Review the complaints of stakeholders, analyse the issues and the data, and advise the relevant section to investigate further and take appropriate action. Facilitate the awareness raising and capacity building of all stakeholders in close coordination with the HRD Division and other Divisions.

The section is headed by an SDE, assisted by one Engineer. 3.3 Gender Equality and Social Inclusion Section:

Liaise closely with the GESIPA Section in MLD, informing GESI policy-making. Develop appropriate GESI strategies for application in LID sub-sector programmes. Raise awareness of GESI policy, strategy and principles amongst the stakeholders through guidelines and training courses. Ensure there is a DDC GESI focal point in all districts, and backstop them with advice and support. Review programme and project proposals for compliance with current GESI policy, strategies and best practices. Monitor progress on the various LID sub-sector programmes and projects, recommending areas for correction and improvement. Prepare GESI progress reports on behalf of DOLIDAR. Facilitate the awareness raising and capacity building of all stakeholders in close coordination with the HRD Division and other Divisions.

The section is headed by a Senior Sociologist or Development Specialist, assisted by a GESI officer with field experience. 3.4 Information and Communication Section:

The effective management and dissemination of data and information are going to be mission-critical for DOLIDAR in its role as the national centre of reference for LID. Having a pro-active approach to developing a fit-for-purpose multi-user system with appropriate sub-systems is vital, as is recognising that one of the key positions in the whole of DOLIDAR is that of Information and Communication Manager. This is not an IT person but someone who truly understands (i) the importance of data and information to individual users at different levels, (ii) the need for real-time horizontal and vertical interconnectivity and interrogation capability, and (iii) the impact of GIS and other graphics overlays in presenting data and information. The actual IT (software and hardware) provision can be outsourced to the private sector, which has readily available expertise in these areas. The key functions are divided into two:

(a) Information Management:

Develop and operationalise an information and communications system that permits horizontal and vertical connectivity, and is fit-for-purpose for the different Divisions and Sections in DOLIDAR and for the DDC / DTO. Establish GIS-based data management and communication of data and information to and from centre and local bodies incorporating appropriate ICT within the all related institutions. In consultation with other Divisions and Sections in DOLIDAR develop and operationalise an effective LID asset management system and sub-systems primarily for the

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districts’ use but with full interconnectivity with and interrogation capability by DOLIDAR. Help in the development and operationalisation of an effective monitoring and reporting system including GIS overlays primarily for the districts’ use but with full interconnectivity with and interrogation capability by DOLIDAR. Disseminate application of GIS/GPS in developing inventory of all LID sub-sectors as part of the enhanced asset management system. Develop information and data collection and dissemination system, and establish library collecting all the plans, surveys, reports related to the sub-sectors and to DOLIDAR. Provide backstopping advice and support to ICT users at all levels. Review and update the technology periodically. Facilitate the awareness raising and capacity building of all stakeholders in close coordination with the HRD Division and other Divisions.

(b) Communications:

Prepare and operationalise a comprehensive communication strategy, as outline in RTI SWAP folder 14: Communications Strategy. Ensure appropriate and timely flow of relevant information to LID stakeholders including women, poor and excluded groups and people in remote areas, using the most appropriate medium of communication in order to ensure the sustainable development and maintenance of the LID that will guarantee optimum use. Overall, communication needs are complex and it will demand significant effort to satisfy the information flow requirements. The main institutions involved in the LID sub-sectors do not currently have any communication policy or strategy. Communication with stakeholders is ad-hoc; communication with the stakeholders takes place on an as and when required basis. Proposals for the improvement of communication with the stakeholders include the development, testing and rolling out of a detailed communication strategy with DOLIDAR at its centre for making the communication with stakeholders more effective and efficient.

The section is headed by an SDE, assisted by one ICT specialist (software/networking) and one Communications Officer with a background in journalism, public relations or marketing. 4. Resources

For details of general resource needs for this Division and Sections, refer to the 2009 Report of the Organisational Development Consultant. There are some new requirements namely for the Gender Equality and Social Inclusion Section and the Information and Communication Section, which if cannot be met by internal transfers within DOLIDAR and MLD, then could outsourced, supported by development partners. However, the two key positions of GESI Section Chief and Information and Communications Section Chief must be considered core positions and central to DOLIDAR’s mandate and deliverables. ..

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Appendix 11: Human Resources Development Division19

1. Role

The role of the Human Resources Development Division is to develop strategic resources within DOLIDAR and the districts for maximising the delivery of cost-efficient and sustainable LID. Continuous improvement of human resources alone will be insufficient if it is not complemented by undertaking and applying the latest research and technology for LID. The Division will act as both a centre of expertise and coordination in human resources development including organisational development and also as a coordinator of applied research to be undertaken in-house, out-sourced or some combination of the two. 2. Functions

• Prepare a working policy and strategy for applied research and technology appropriate to LID, with a view to seeking out and introducing new technology, materials, norms and best practices at the earliest opportunity.

• Collect information on latest LID technology and management developments in Nepal and in other countries, building up a knowledge database of papers, policies, strategies, practices, institutions and practitioners.

• Establish an LID Research Panel within DOLIDAR and MLD, to identify areas to be researched, endorse proposals, and guide application of research findings.

• Coordinate with local bodies on piloting the introduction of latest technology and best practices, in coordination with the relevant Divisions within DOLIDAR.

• Prepare papers and reports on LID research as applied and experienced in Nepal, and attend workshops and conferences as appropriate. Hold national workshop periodically to promote greater interest in and support for applied research.

• Ensure that an independent audit of the working policy, strategy, results and applications is undertaken every three-four years, so as to inform and improve what is in place.

• Prepare a working policy and strategy for human resource development of concerned institutions and stakeholders, taking into account the MLD’s policy on HRD.

• Prepare a multi-year human resource development (HRD) Plan and a “Core Skills” upgrading programme, obtain approval and funding from available sources, and implement the Plan and programme.

• Establish appropriate working groups involving key stakeholders for guiding, coordinating and overseeing the implementation of the HRD Plan and programmes.

• Coordinate the capacity building work of existing projects, looking at ways to enhance coordination, collaboration and pooling of resources. This will become more important as the RTI SWAp is piloted and then rolled out.

• Carry out periodic training need assessments/analyses (TNA). Update HRD Plan and programme every three years incorporating new demands identified by proper TNA.

• Develop a demand-driven curriculum based on TNA and prevailing development activities. • Develop database of relevant institutions and roster of providers of training and expertise,

and inform them of opportunities for submitting expressions of interest. Undertake and maintain a proper assessment scheme of all training providers employed by DOLIDAR, indicating areas of weak performance and need for improvement or else being dropped.

• Conduct training of trainers (TOT) for effective training and promoting large-scale training. • Conduct regional and central training events for stakeholders. • Carry periodic evaluation of impact and use of training provided, identifying gaps if any. • Maintain institutional relations with relevant training institutions and providers in-country

and externally, to maximise the knowledge base and best practices available to DOLIDAR. • Work with CETVT for accreditation of training courses wherever possible.


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3. Sections, including Staffing (i) Applied Research and Technology Development Section:

The section, in coordination with sectoral line agencies and cognizant of latest developments in other countries, will research, evaluate and introduce new added value technology and norms in local bodies along with introducing better management practices.

It will prepare a working policy and strategy for applied research and technology appropriate to LID. It will collect information on latest LID technology and management developments in Nepal and in other countries, building up a knowledge database of papers, policies, strategies, practices, institutions and practitioners. It will establish and act as secretariat to an LID Research Panel within DOLIDAR and MLD, identifying priority areas to be researched and then findings applied. It will coordinate with local bodies on piloting the introduction of latest technology and best practices, in coordination with the relevant Divisions within DOLIDAR. It will ensure that an independent audit of the working policy, strategy, results and applications is undertaken every three-four years, so as to inform and improve what is in place.

The section is headed by an SDE, assisted by two Engineers, one civil and one mechanical/electrical. (ii) Human Resources Development Section: In close consultation and coordination with all divisions and sections in DOLIDAR as well as with MLD, the Section will prepare a comprehensive HRD Plan and particularly a “Core Skills” upgrading programme. The HRD Plan will have subsidiary annual plans developed in consultation with Divisions, Sections and others pooling resources for the approved plan. The Plan will relate to training programmes, courses and events at the centre, in the regions and at district level, including workshops, seminars and on-the-job training schemes. The Section will in coordination with line agencies and existing donor-supported projects organise relevant training for DOLIDAR and local bodies. It will develop a database of training institutions and providers both in-country and externally, which could assist with implementing its annual plan and programme. It will arrange study tours in-country and externally, to observe innovative and successful works, practices and policies. It will maintain a database of all trained persons and monitor their career progress and individual performance, so as to improve capacity building curriculum and plan. The section will prepare an annual report on the achievements and constraints of the annual plan and the HRD Plan overall.

The section is headed by an SDE, assisted by one Engineer and an HRD officer. 4. Resources

DOLIDAR is to review if it can appoint and staff from existing human resources. If not it may have to look at interim appointments from personnel in the Pool, or outsource to the private sector possibly with assistance from development partners.

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