Annual Portfolio Review Presentation by Benoit Thierry, IFAD's Country Programme Manager for Nepal presented during IFAD Annual Portfolio Review December 3, 2012; 13:15-15:15 hrs; Ministry of Finance, Singha Durbar

1. IFAD Nepal
Annual Portfolio Review
CPMT Meeting
Ministry of Finance
Monday 3rd December 2012

2. Portfolio
Closed Loans
Active Loans
• 1979 - Integrated Rural Development • 2003 - Western Uplands Poverty
Project (Sagarmatha) Alleviation Project
• 1981 - Small Farmer Development Project
• 1982 - Command Area Development
Project • 2005 - Leasehold Forestry And
• 1986 - Second Small Farmer Development Livestock Programme
Project
• 1987 - Aquaculture Development Project • 2008 - Poverty Alleviation Fund
• 1988 - Production Credit For Rural Phase II (DSF)
Women Project
• 1991 - Hills Leasehold Forestry And
Forage Dev Project • 2010 - High-Value Agriculture
• 1994 - Groundwater Irrigation & Flood Project In Hill And Mountain Areas
Rehabilitation Project
• 1998 - Poverty Alleviation Project In
• 2013 - Kisankalagi Unnat Biu-Bijan
Western Terai Karyakram (Improved Seeds for
Farmers Programme)

3. Timeline - overview
Integrated Rural Development Project
Small Farmer Development Project
Command Area Development Project
Second Small Farmer Development Project
Aquaculture Development Project
Production Credit for Rural Women Project
Hills Leasehold Forestry and Forage Development Project
Groundwater Irrigation and Flood Development Project
Poverty Alleviation Project in Western Terai
Western Uplands Poverty Alleviation Project
Leasehold Forestry and Livestock Programme
Poverty Alleviation Fund Phase II
High Value Agriculture Project in Hill and Mountain
Areas Kisankalagi Unnat Biu-Bijan Karyakram

4. IFAD working areas, main and recent projects

5. IFAD Disbursements in Nepal

6. Portfolio: Social Targetting –
Active Projects

7. Portfolio beneficiaries: Planned and Actual
Coverage of Rural Households - Dec 2012
Projects Households
Districts Planned Actual
Western Uplands Poverty Alleviation Project
(WUPAP) 11 115,000 82,180
Leasehold Forestry and Livestock Programme
(LFLP) 22 44,300 61,004
Skill Enhancement for Employment Project
(SEEP) 5 1200 1,244
Pro-poor Livelihood Promotion (PPLP) 5 5000 5,183
Local Livelihoods Program (LLP)
High Value Agriculture Inclusive Business Pilot
Project (HVAP-IB) 1400 1,400
High Value Agricultural Project (HVAP) 10 66,000 6,000
Kisankalagi Unnat Biu-Bijan Karyakram
– seeds project 6 150,000
Total 382,900 157,011

8. Annual Performance Based Ratings
Project Status Reports (PSR Ratings
6
5 5 4.8 4.8 4.9 5
4.6 4.4
4 4 4 4.2
4 4.2 4.3
4
Rating
3 3 3 3 3 3
2 2
1 c
0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Year
Nepal Regional average

9. Annual Performance Based Ratings
5
PSR Ratings
4.75
4.5
4.25 APR
WUPAP
4
LFLP
3.75 PAF
HVAP
3.5
3.25
3
2009 2010 2011 2012

10. Country Programme Evaluation (CPE)
Key Conclusions
• Overall positive and productive presence in the country,
- Relevant but overly ambitious country strategies
- At times poor program design and implementation
- Challenging country context – post-conflict
- Country dialogue weak due to frequent staff changes and lack of
resources
• Need to diversify strategy, move away from “business as usual”
- Two-pronged approach
- Poverty reduction driven by remittances and migration
- Limited resources for program management

11. CPE Main recommendations
To be used in Agreement at Completion Point (ACP) .
I. Strategic Partnership
- Paradigm shift: two-pronged approach, combining “basic needs”
approach with high-value agriculture development focusing on
developing profitable rural enterprises rather than aid-
dependent groups
- Avoid geographic dilution, concentrate on fewer districts, and on
road corridors for high value agriculture
- Factor in the conflict dimension in IFAD strategies and
programmes

12. CPE Main recommendations (cont.)
II. Policy Dialogue
- Strengthen the link between policy dialogue and portfolio –
include policy work in project budgets
- Agree with Government on joint policy dialogue agenda
- Improve cooperation with local and international partners
through a better-targeted grant programme

13. CPE Main recommendations
III Operations and Program Management:
- Local context and implementation support: need more resources in
fragile state context. Possible sources: grants, project financing.
- Class and caste-based interventions: Consider forming groups
based on economic criteria, while making sure disadvantaged
groups are included.
- Improve measuring and communicating impact of IFAD-supported
operations.
- Align COSOP and PBA cycle management to avoid “last moment
utilisation” of the PBA.

14. Thank You For Your Attention