Capacity Development of New Municipalities

Project description

Title: CD-Mun – Capacity Development of New Municipalities
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Nepal
Lead executing agency: Ministry of Federal Affairs and Local Development (MoFALD)
Overall term: 2015 to 2019


With a score of 0.56 in the Human Development Index (HDI 2016), Nepal ranks 144th out of 188 countries worldwide. Women, certain ethnic groups and marginalised castes such as the Dalits have a low social status.

Nepal committed itself to implement the 2030 Agenda and achieving the UN Sustainable Development Goals (SDGs) and issued a national report in 2015 detailing the measures required. It subsequently started allocating budget resources in 2016.

The new constitution, which was adopted in 2015, introduced plans to establish federalism and decentralised governance. In March 2016 the Government of Nepal initiated the restructuring of local governments which led to the establishment of 753 local governments. The new local governments exercise executive, legislative and judicial functions and are responsible for a wide range of tasks related to service delivery and development. The local level elections which were completed in September 2017, have instituted elected leadership in all local governments.

Nepal’s local governments need support to build up sufficient resources for implementing the necessary reforms. Moreover, the national level agencies are in need of substantial strategy guidance and support measures to prepare the extensive reforms at national and local levels.


Municipalities are in a better position to implement local government reforms targeting service delivery and access.


The project operates at national level and in nine selected partner municipalities.
It focuses on three fields of action:

  • National level coordination of capacity development measures: The objective is to improve coordination among key national actors, who engage in municipal reforms to enhance the national strategy.
  • Citizen-friendly and service-oriented administrative structures: The aim is to help municipalities design measures, which give women and disadvantaged groups better access to services. Best practices of municipalities are replicated throughout the country via peer learning and inter municipal networks.
  • Capacity development for municipal services: Concepts/models are developed for improving selected municipal services in priority areas of German Development Cooperation (i.e. health, renewable energy and inclusive economic development) and they are shared among municipalities through peer to peer learning.


  • Service delivery in partner municipalities has improved and people have better access to municipal services;
  • Disadvantaged groups, for example women, certain ethnic minorities and Dalits are increasingly involved in municipal decision-making
  • Based on relevant information and evidence from the field, national level institutions design policies and a capacity development strategy
  • Partner municipalities increase their revenues, establish building permit systems and adopt an inclusive budget planning process
  • Municipal service delivery in certain sectors has improved and best practices are available at national level in the form of guidebooks and/or models for service delivery.