Govt, development partners agree on harmonization of disbursement practices

KATHMANDU: The government and six multilateral development banks and international financial institutions have agreed to work together to harmonize disbursement procedures and practices to help enhance operational efficiency and achieve Nepal’s development goals.

The agreement was reached at a two-day ‘MDBs Disbursement Harmonization Workshop’ organized in Kathmandu on March 25-26, 2024, by the MDBs and IFIs, in close partnership with the Ministry of Finance, a statement issued by the World Bank said.

Agence Française de Développement, Asian Development Bank, Asian Infrastructure Investment Bank, International Fund for Agricultural Development, OPEC Fund for International Development, the World Bank and the government have agreed to help Nepal harmonize flow of funds, reporting, legal and disbursement arrangements for the three-tier structure of government; standardize reporting templates across MDB-IFIs’ operations in Nepal to reduce the administrative burden on the government; strengthen and align country system with MDBs-IFIs to the extent possible.

“Unprecedented challenges demand urgent action and the need for harmonization among the MDB-IFIs. The World Bank, in its continued efforts to improve operational efficiency and support better development results for our mutual clients, is committed to work with co-financing partners in the area of disbursement harmonization,” Pamela O’Connell, World Bank Vice President and Controller, said in the workshop, according to the statement.

Likewise, Hari Prasad Mainali, Financial Comptroller General, Government of Nepal, said full utilization of budget allocation is a must to achieve sustainable economic growth and poverty reduction. “The government is committed to strengthening reforms to build transparency and accountability of public financial management systems and strengthen service delivery,” he added.

Participants of the workshop held discussions on disbursement and implementation-related opportunities and challenges, and the way forward to supporting MDB-IFIs operations in Nepal.