KATHMANDU, April 16: A Non-Government Organization (NGOs) bringing funds to bear on earthquake reconstruction can set aside 20 percent of such funds as overhead. An NGO or INGO that is so engaged is now permitted to provide reconstruction grants of Rs 200,000 each for a minimum of 50 households, according to the Directives for Mobilizing NGOs for Reconstruction and Rehabilitation 2072, which was endorsed on Thursday by the National Reconstruction Authority (NRA).
"NGOs have to hand over the entire amounts of Rs 200,000 to the households," reads Clause 13 of the Directives. "Their administrative overhead cost should be on top of the housing grants they provide," said Ram Prasad Thapaliya, spokesperson of NRA. The NGOs and INGOs cannot draw funds from the commitments made by donors at the International Conference on Nepal Reconstruction held on June 25, 2015. Officials say the NGO contributions will help meet the resource crunch in reconstruction.The Directives have opened the way for NGOs and INGOs to work in reconstruction and rehabilitation. They can only work for clusters of a minimum of 250 houses in providing the housing grants. An INGO should have funds of at least Rs 50 million lined up for housing grant distribution to households.
Baikuntha Aryal, joint-secretary at the Ministry of Finance, International Economic Cooperation Coordination Division, is of the view that the 20 percent overhead provision might be suitable for development projects like building schools and health posts but it is too high for the work of merely collecting funds and distributing housing grants to households.
NRA spokesperson Thapaliya claimed that NGO's have to be limited to the clusters of households identified and designated by NRA, and this will strictly rule out any possibility of duplication of housing grant distribution .
NGOs and INGOS had been pressing hard for the government to issue regulations permitting their involvement in reconstruction and rehabilitation since the termination in mid-December of Ministry of Finance guidelines for NGOs/INGOs on providing support in rehabilitation and reconstruction.
Homeowners receiving housing grants from the government budget have to build their homes on their own. But NGOs and INGOs can distribute an additional Rs 50,000 on top of the Rs 200,000 for each household of single persons aged 75, families in absolute poverty, single women, and households far from road access. These last need extra funds to transport construction materials.
This policy, however, makes for some discrepancy in grant distribution, say experts, adding that NRA has to review its policy. "I assume this preferential policy for the needy will erode credibility and trust in the government among citizens," said Bhoj Raj Pokharel, former chief election commissioner and retired bureaucrat.
An NGO or INGO has to first apply at NRA with a proposal to work for reconstruction, which includes providing housing grants and constructing school building and health posts. They have to follow all the rules and regulations after getting permission and signing an agreement with NRA. They cannot collect funds once such an agreement is signed..
Gopal Lamsal, president of NGO Federation, expressed dissatisfaction over the limit on the amounts involved saying these were too little for building a house. "We were seeking a role in reconstruction and rehabilitation but this is not workable," added Lamsal.
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