Promoting good governance in Nepal

Capacity Development Support to Governance II

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  • Commissioning Party

    German Federal Ministry for Economic Cooperation and Development (BMZ)

  • Country
  • Lead executing agency


  • Overall term

    2022 to 2024

  • Products and expertise

    Governance and Democracy



The adoption of Nepal's constitution in 2015 marked a political turn in the country's development process and introduced federalism and decentralised governance. The restructuring led to the establishment of a federal government, 7 provincial governments and 753 local governments.

The newly created provincial and local governments are assigned to manage subnational resources and deliver public services to citizens. Significant progress has been made in setting up key institutional structures and in consolidating the regulatory environment for federalism.

However, considerable gaps in the capabilities needed to manage their new roles and functions still exist at all levels of government. 


Actors in various tiers of government are applying improved political, institutional and methodological elements of the new governance system.



While the first phase of the project improved local planning and local government service delivery, the second phase works to enhance the institutional capabilities of the subnational governments. It assists in the implementation of devolved functions and addresses the procedures and processes of inter-governmental cooperation, especially between the provincial and local governments. This is achieved by:

  • Improving the service delivery approach at the provincial centres for good governance and providing elected representatives and municipal staff with access to innovative support measures and learning networks.
  • Providing technical and methodological advice to six municipalities in developing and disseminating digital public services. Promoting digital forms of communication between citizens and local administrations with a focus on improving the digital literacy and skills of women and disadvantaged groups. 
  • Reinforcing knowledge management platforms and learning networks and the role of local government associations as knowledge partners and political advocates for local government interests.

Last update: February 2023