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Dissolution of CA worries donors

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KATHMANDU, June 19: With the dissolution of the Constituent Assembly on May 27, parliamentary oversight of the budget and expenditures has gone, something which worries donors. One such donor is the UK Government´s Department for International Development (DfID), one of the largest bilateral donors.



“We have no doubt that we will spend the 331 million pounds over the four years from 2011-2015,” says Dominic O´Neill, head of the DfID office in Nepal. “But things have become difficult after May 27.” [break]He is worried that without a proper monitoring mechanism and without strengthening the oversight, it would be difficult to fill the gap in ensuring accountability.



“We can´t take unnecessary risks with our money,” O´Neill said, sharing his concern with Republica. “Unfortunately, the accountability and oversight mechanisms are weaker now (with no Parliamentary Accounts Committee).”



“With no parliament in place, we cannot be expected to put more money through the national system,” he further said. “It is the responsibility of the government to give us assurance in this regard.”



Sharing his experiences from his team´s recent visits to some Terai districts and Jumla, O´Neill said politics needs more time to resolve the differences by building consensus, but Nepal does not have any more time to wait for the economy to improve.



The decisions have to be made now to send positive signals to donors and investors, O´Neill feels, and expresses hope that Nepal will have political stability soon so that the country can focus on development.



“I understand that politics needs time to improve,” says O´Neill, who has many years of experience working in different parts of the world. “But people are waiting for the state to deliver the goods to improve their living standards,” he said, adding, “The economy should not be taken for granted.”



He is of the opinion that Nepal needs a major economic fillip and that would only come from the development of hydropower. This is the reason DfID has been engaged with the recently-established Investment Board in preparing the Project Development Agreement (PDA) for investors, according to him. “Nepal needs to remain competitive (to attract investors),” he says.



He also says that though the failure to promulgate a constitution was a disappointment for many, DfID would continue its support as the constitution was part of a larger peace process that is yet to conclude.



Asked about the recent allegations of DfID igniting ethnic tension by encouraging the marginalized communities, he said that DfID´s inclusion agenda is drawn directly from the government´s own agenda for including the excluded groups.



“The issues of inclusion are articulated in many government documents, including the Three Year Plan,” he said, adding, “We follow the principles of good development laid down by the government in their own plans.”



“The DfID´s concept of working with the marginalized communities is not an attempt to disturb the social fabric of Nepal,” he clarified. “We are very proud of what we have done regarding inclusion and we will continue to support the government´s own policies in inclusion.”



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