The UK will provide £70 million (Rs 11.2 billion) to Nepal for improving local governance and service delivery over the next 4 years. The Government of Nepal will contribute USD 1.12 billion and the Development Partners will pool together USD 226 million through LGCDP 2.  LGCDP 2 is a flagship national program which will be executed by the Ministry of Federal Affairs and Local Development (MoFALD) and implemented through local bodies. It covers all 75 districts, 58 Municipalities and 3,915 Village Development Committees, and will run until July 2017. UK support will be channeled through both government and non-government partners.

Finance Secretary Shanta Raj Subedi and head of DFID Gail Marzetti signed the agreement.

According to a press release by British Embassy, by improving delivery of the Government’s own national program, UK support will contribute to improve delivery of services by local government for 2 million families, reduce the number of people below the poverty line from 25% of the population to 15% by 2017, and make 1.7 million people better prepared for extreme weather and natural disasters. 

UK support includes £ 15 million for climate resilience and disaster preparedness at the local level and £20 million of direct support through NGOs that focus on 18 most poor and remote districts of the country. These funds will provide: 200 footbridges; 200 improved water systems for 12,000 households; access to clean energy for 200,000 people; 600 disaster-prepared schools and 100 disaster-prepared households. The NGO program will be closely aligned with the LGCDP 2 program framework.

LGCDP 1 was completed in July 2013 and successfully established important links between the state and citizens in the aftermath of the conflict. LGCDP I upgraded over 8,700 km of roads, renovated 2,150 schools and upgraded 1,031 health facilities and benefitted 1.9 million households by providing community infrastructure on demand. LGCDP 1 also set up 40,000 Ward citizens forums that have been playing an effective role in prioritizing community-based demands and ensuring local governments respond to such demands. LGCDP 2 will build on these successes.