Background and partners

The Nepal national PPPUE programme's first phase ran from March 2002 to 2004 and was followed up by a second phase, which is currently running and ending in March 2007. This report covers the lessons learned from the first phase. The focus of the national programme was to develop an enabling environment and framework for public-private partnerships. The PPP approach has been promoted by the Nepal Government, and is seen as an important mean to address the urgent demand for local services delivery in urbanizing Nepal. Various national ministries have undertaken policy initiatives regarding PPP's in different sectoral areas, with different outcomes. In particular, the Government has adopted the 'Public Infrastructure: Build, Operate and Transfer Policy 2000' specifically facilitating private sector involvement in the provision of primarily national infrastructure. Regarding the local government level, several clauses of the Local Self-Governance Act 2055/1999 (LSGA) and its regulations specifically encourage the combine efforts of the public and private sectors in local service delivery. The Ministry of Local Development, one of the major partners of the PPPUE national programme, has facilitated various initiatives in local PPP's.

The Ministry of Local Development implemented the PPPUE project in partnership with the Federation of Nepalese Chamber of Commerce and Industry, Municipal Association of Nepal, Chamber of Local Chamber of Commerce and Industry and the Tole-Lane Organization. National consultants were also closely involved, mainly in the feasibility studies of potential projects as well as the legal groundwork of the programme implementation.