Quarterly Progress Report: Sajhedari Support to Federalism (STF) October 1 – December 31, 2019

The project is valued at $14,576,381 over six years and aims to support Nepal in its transition from a unitary to a federalist state. The project focuses on supporting municipalities and civil society in two provinces (5 and 7) and employs an analytical, reflective operating modality that uses evidence from the field to inform donor and Government of Nepal (GON) national and local policy. The objective of STF is to provide technical assistance to the GON in transitioning from a unitary state to a federation of provinces with more effective, accountable, responsive, and inclusive local governance. The project supports USAID Development Objective (DO) #1: "more inclusive and effective governance," and four DO1 Intermediate Results (IRs). STF is composed of three objectives: 1. The GON creates and implements sound policies and legislation that are informed by evidence; and empower, finance, and regulate provincial and municipal governments. 2. The targeted provinces and selected municipal governments therein are more responsive, inclusive, accountable, transparent, and effective in decision-making and delivering priority services to fulfilling core legal responsibilities. 3. Citizens and civil society organizations in targeted geographic areas, including the historically marginalized, actively participate in local decision-making and oversight. The project will play a critical role in supporting Nepal in the shift to the new system, through support to local governments (LGs) and utilizing an analytical, reflective operating modality. The project will focus on the provinces of 5 and 7, and will employ a co-design process and adaptive management emphasis to ensure that the project starts strongly, relies on evidence, and receives stakeholders' input and buy-in to adapt to changes in context. The project's methodology involves working closely with local governments, civil society organizations, and other stakeholders to identify and address the needs of the target areas. The project will also conduct regular monitoring and evaluation to assess progress and identify areas for improvement. The project's impact will be measured through a range of indicators, including the level of participation of citizens and civil society organizations in local decision-making, the effectiveness of local governments in delivering priority services, and the level of transparency and accountability in local governance. The project's budget for the first quarter (October 1 – December 31, 2019) was $1,444,000, which was allocated to various activities, including project management, technical assistance, and community engagement. The project's staff includes a Chief of Party, a Deputy Chief of Party, and several technical advisors and program managers. The project's quarterly progress report for October 1 – December 31, 2019, highlights several key achievements, including the completion of a local government scoping trip to the provinces of 5 and 7, the development of a project work plan, and the establishment of a project monitoring and evaluation system. The report also identifies several challenges and areas for improvement, including the need for greater engagement with local governments and civil society organizations, and the need for more effective communication and coordination among project staff. Overall, the STF project aims to support Nepal in its transition to a federalist state by providing technical assistance to local governments and civil society organizations, and by promoting more effective, accountable, responsive, and inclusive local governance. The project's methodology involves working closely with local stakeholders, conducting regular monitoring and evaluation, and adapting to changes in context.