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Development assistance in Nepal

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Support Nepal to improve governance and policy implementation


Effective and stable governance that delivers services effectively and equitably across the country continues to be a challenge for Nepal. Helping to improve governance and policy implementation is a new objective for Australia.

Sub-National Governance Program

$20 million, 2017 — 2021

In 2017, Australia commenced a Strategic Partnership with The Asia Foundation Nepal to support Nepal's transition to a federalised system of governance. The Partnership focusses on effective and inclusive subnational governance, particularly improved local service-delivery and support for local economic governance. The Partnership supports the enabling environment in which effective subnational governance can better respond to the needs citizens and deliver inclusive local economic growth and poverty reduction. Initial activities include data analyses and evidence generation for decision-making.

The Partnership's implementation arrangements are adaptive and responsive to opportunities, constraints and unexpected developments in Nepal's evolving political landscape and processes. The Partnership has an emphasis on the needs of marginalised groups including women and girls. Partnership outcomes will directly contribute to achieving the key objectives of DFAT's Aid Investment Plan Nepal (2016-2020), namely to expand job opportunities for the poor by promoting enterprise and job creation and support the government to improve governance and policy implementation.

Related documents*

Name of document Year published Type
Mid Term Review Report of the DFAT-TAF Strategic Partnership on Sub-National Governance program 2019 Mid Term Review

The Public Financial Management Multi-Donor Trust Fund

$2.9 million, 2011-2019

Through this World Bank implemented Multi-Donor Trust Fund, Australia is contributing to building stronger financial systems in Nepal. The Trust Fund aims to strengthen performance, transparency and accountability in public financial management, resulting in improved resource management; increased awareness and oversight of government processes; and improved design of public financial management interventions at the country and sector level.

Strategic Water and Energy Advisory Services

$2.9 million, 2018-2021

As part of our support of Nepal's transition to a federalised system of governance, Australia is helping establish a strategic advisory service to strengthen public policy processes, particularly for improved service delivery.

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