European Union Support to Inclusive Federalism (EUSIF)


EUSIF complements the Government of Nepal’s (GoN) flagship programme, the Provincial and Local Governance Support Programme (PLGSP), in enhancing inclusiveness, accountability, and sustainability of provincial and local government (PLG) systems and procedures through the Green, Resilient and Inclusive Development (GRID) approach. EUSIF engages with PLGs to enhance their capacity to provide quality, resilient and sustainable services to all people in an inclusive manner. Working with the most marginalized and excluded groups to improve their participation in the annual planning, budgeting, budget execution and monitoring processes, EUSIF will pilot different social accountability tools in five Model Palikas or municipalities identified by the Karnali Provincial Government, making PLGs more accountable to their constituents while providing more inclusive service delivery. The Project will also create platforms together with PLGs for policy dialogues and peer-to-peer learning and experience sharing.

EUSIF supports participatory planning and budgeting, evidence-based decision-making and well-targeted and executed local government investments. EUSIF especially supports LG’s inclusive and effective basic service delivery, mainstreaming of gender and social inclusion (GESI) and transformative behavioral change of the civil service and communities. The project also supports LGs with the integration of social accountability tools to make them accountable and responsive towards the diverse needs of their constituents. An important way to scale effective LG capacity development and to make it sustainable is through EUSIF’s collaboration with the Karnali Provincial Centre for Good Governance (PGCC), which will be supported in utilising good practices for LG capacity development packages.


Nepal’s Constitution guarantees equal rights and participation to all sections of the society. However, the federalization process that began with the constitution’s promulgation in 2015 is still in a nascent phase with key provincial and local institutions facing capacity gaps related to laws and policies, planning, execution and harmonization of intergovernmental efforts. 

Karnali Province has some of the most challenging development contexts with its difficult mountainous terrains, weak connectivity and sparsely populated areas, as well as high vulnerability to climate change impacts. Its socio-economic indicators are one of the lowest among seven provinces. The province has the highest multidimensional poverty of 39.5 % percent of its population followed by 25.3% in Sudurpashchim Province and 24.2% in Madhesh Province (Multidimensional Poverty Index 2021, National Planning Commission of Nepal). Gender gap remains high in almost all sectors. Nepal Human Development Report 2020 presents Karnali’s Gender Inequality Index (GII) at 0.558 against the national average of 0.479 (GII value ranges from 0 to 1). Participation of women and other marginalized social groups such as Dalit in political and administrative decision-making is low. These indicators point to institutional gaps in the delivery of accountable, inclusive and effective governance.

EUSIF aims to capture and scale successful community development approaches and capacity development packages for (local governments (LGs), which need to be applicable in a diversity of LG contexts and institutional capacities including in the most remote areas of the province. The diversity of Karnali, combined with a strong footprint of UNDP and EU projects are therefore important assets for EUSIF. 

Major Achievements

  • Inclusive Basic Service Delivery mapping conducted in 23 Palikas with in-depth analysis in five proposed Model Palikas. The findings inform systems, processes and resources towards effective and inclusive service delivery in subnational governments in Karnali.
  • GIS-based Project Information Management System (PIMS) developed for the Karnali provincial government to assist evidence-based and balanced development interventions. 
  • An inclusive pool of local trainers on Local Economic Development (LED) established at the Provincial Centre for Good Governance (PCGG) through transparent and competitive selection process. The trainers will be mobilized by PLGSP/PCGG to facilitate LED trainings planned in two clusters covering six districts in Karnali.
  • Training modules on ward functions and Gender and Social Inclusion (GESI) Audit being finalised, and digitized.
  • 61 deputy mayors/ vice chairs of LGs capacitated on inclusive governance.
  • Over 200 LG authorities and Community Based Organization (CBO) representatives capacitated on annual planning and budgeting process on participatory and accountable planning process at settlement and ward levels.


Expected Outcome

  • Inclusiveness, Community Benefit and Sustainability of Local Government and Ward Basic Services enhanced in line with Green, Resilient and Inclusive Development (GRID) objectives.
  • Provincial and local governments (PLG) data management, monitoring and reporting systems are evidence-based and enable achieving PLG Green, Resilient and Inclusive Development objectives.
  • Institutional capacity development of Provincial Centre for Good Governance (PCGG):  Provide complementary technical assistance to the Provincial and Local Governance Support Programme (PLGSP)
  • Capacity of Local Government Associations enhanced for evidence-based advocacy and representation of Local Government Voice.

Dashboard of Project Information Management System in Karnali Province:

Gender and Social Inclusion

  • A 29-point ‘Karnali Declaration’ demonstrating the province and local governments’ commitment to GESI was drafted with inputs from Deputy Mayors and Vice Chairs and later adopted by the provincial government.
  • Provided technical assistance to the Office of the Chief Minister and Council of Ministers, Karnali Province, to conduct a study on the socio-economic status of the marginalized Badi community to help the subnational governments to make informed decisions on planning and budgeting.
  • Developed GESI Assessment Framework for the Provincial Centre for Good Governance (PCGG) and a GESI/Gender-responsive Budgeting (GRB) checklist for inclusive local level planning process.
  • Developed GESI Audit Training Module for Karnali PCGG.
  • Ensured GESI criteria in the selection of 32 local economic development (LED) resource persons, who will be mobilized by the PCGG for trainings to LG officials on LED.
  • Embedded well-defined GESI/GRB components in the capacity-building exercises on local level planning and budgeting processes in three local governments of Karnali.

Related Materials


Project Details:

Project StatusActive
Project PeriodJan 2022-August 2024
Project ID00130156
Focus AreaInclusive Governance
Contributing PartnerEuropean Union in Nepal (EU)
Budget€2 million



ContactCO Focal Point

Mr. Tek Tamata
Portfolio Manager
United Nation Development Program (UNDP) Nepal
UN House, Pulchowk, Lalitpur
Phone:+ 977 14290000