Management Contract of UNNATI, Inclusive Growth Programme

UNNATI - Inclusive Growth Programme in Nepal focussed on Local Economic Development in seven districts in the Eastern Development Region (EDR). The support was channelled through the private sector, and to seven local governments through the Department of Local Infrastructure Development and Agricultural Roads (DoLIDAR) and the District Development Committees (DDCs). The Local Economic Development Strategy for the programme had the following approach:

  • Ensuring that the local investment climate is functional for local businesses;
  • Supporting small and medium sized enterprises;
  • Encouraging the formation of new enterprises;
  • Attracting national and external investment;
  • Investing in physical infrastructure;
  • Investing in educational and workforce development, institutional support systems and regulatory issues;
  • Supporting the growth of particular value chains;
  • Supporting informal and newly emerging businesses;
  • Targeting certain disadvantaged groups.

The programme strengthened market-based inclusive growth with the objective of reducing poverty and raising living of standards. The strategic focus of UNNATI was on private sector development in compliance with Danida’s strategy for support to growth and employment. The private sector was a beneficiary and also an implementing partner. The public sector played an important role in terms of setting national objectives, policies and plans; carrying out improvements to key infrastructure; providing the regulatory frameworks; and creating an enabling environment for the private sector to contribute efficiently and effectively to inclusive growth and employment creation with a specific focus on women.

UNNATI supported three components:

C1: The Value Chain Component comprised two sub-components - 1.1: Commercialisation of Selected Value Chains and 1.2: Access to Finance;

C2: The Infrastructure Component comprised two sub-components - 2.1: Rural Transport Infrastructure and 2.2: Public Market-Related Infrastructure; and

C3: The Enabling Environment Component comprised two sub-components - 3.1: Public-Private Partnership and 3.2: Advocacy for Rights and Good Corporate Governance. 

The three components were interlinked with the Value Chain Component at the core of the programme. FCG Swedish Development AB (formerly ORGUT Consulting AB) was contracted by Danida as the Management Contractor (MC) and provided the technical assistance to the Value Chain Component, sub-component 1.1 and to the entire Infrastructure Component.

The Value Chain Implementation Strategy was focused on supporting the private sector in working with the value chain from the market to the farmer, and improving access to financial services. Through strategic investments along a few selected value chains (orthodox tea, ginger, cardamom and dairy) the support had a direct impact as well as a multiplier effect in the agricultural sector as a whole. To facilitate lasting results, UNNATI supported the development of a dynamic and professional service network that is available, able and willing to support broad-based agricultural development. The TA provided by the MC focused on capacity building of service providers in production, post-harvest handling, product marketing, and identifying and securing trade linkages along the selected value chains, as well as the development of existing and new market channels. Gender mainstreaming and good governance were key elements.

The Infrastructure Component supported value addition in the selected value chains through the intensification of production in existing areas, improving the quality of marketed production and reducing post-harvest losses. Consequently, the component focused on infrastructure that assisted in bringing higher quality produce to market quicker and more reliably with fewer post-harvest losses. The main focus of the this component was on the rehabilitation, upgrading and improvement of existing infrastructure rather than the construction of new infrastructure. The overall strategy for infrastructure improvements was to achieve the maximum impact for producers and traders.

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