The government, along with six multilateral development banks (MDBs) and international financial institutions (IFIs), has agreed to collaborate in harmonizing disbursement procedures and practices to enhance operational efficiency and achieve Nepal’s development goals. This consensus was reached during a two-day ‘MDBs Disbursement Harmonization Workshop’ held in Kathmandu on March 25-26, 2024. The workshop was organized by the MDBs and IFIs in close partnership with the Ministry of Finance, as stated in a press release by the World Bank.

The participating organizations including 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 of Nepal have committed to supporting Nepal in harmonizing the flow of funds, reporting mechanisms, legal frameworks, and disbursement arrangements for the three-tier structure of government. They also aim to standardize reporting templates across the operations of MDBs and IFIs in Nepal, thus reducing administrative burdens on the government, while strengthening and aligning country systems with those of MDBs and IFIs to the greatest extent possible. Pamela O’Connell, World Bank Vice President and Controller emphasized the need for urgent action in the face of unprecedented challenges.