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The European Union (EU), Governments of Switzerland, Norway and the United Kingdom,
collectively referred to as the Joint Financing Agreement (JFA) Development Partners
herein after, have agreed to provide a grant assistance of One Hundred Million US
Dollar, equivalent to Eleven Billion Four Thousand Million Nepalese Rupees (NPR 11.4
The project aims to strengthen the capacity of provincial and local governments to
deliver public service in a more effective and efficient way. This project will ensure to
attain functional, sustainable, inclusive and accountable provincial and local governance
by maximizing benefits of cooperative federalism for Nepali citizenry.
The project will conclude in four fiscal years commencing from July 2019/20 and wrapping up in July
2022/23. The Joint Financing Arrangement to this effect was signed and exchanged
between the Government of Nepal and JFA Development Partners at the Ministry of
Finance, Kathmandu, on 4 September.
Important activities listed under the project are Innovation and Partnership Fund, Local
Policy, Strategy, Guidelines, Framework & Institutional Development, Capacity
Development Programme (Province and Local Level), and Public Financial Management
(PMF) for the implementation of SUTRA and Local PFM. The project is expected to be a
landmark project in capacitating the sub-national governments by bridging the existing
gap among three level of governance system.
The JFA was signed by Dr. Rajan Khanal, Secretary, Ministry of Finance and H.E. Mr.
Matthew John Rycroft, Permanent Secretary, Department for International Development
(DFID), H.E. Lasse Bjorn Johannessen, Ambassador, Norwegian Embassy in Nepal and H.E.
Elisabeth Von Capeller, Ambassador, Swiss Embassy in Nepal, on behalf of their
respective Governments. The European Union will sign the JFA in the days to come.
The Government of Nepal has expressed its appreciation to the European Union,
Governments of the United Kingdom, Norway and Switzerland for providing such
generous financial support for this program and for the trusted partnership in
strengthening our Sub-national Governance.
Ministry of Finance
Singh Durbar, kathmandu
September 04, 2019
(Bhadra 18, 2076)