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Management Contract of UNNATI, Inclusive Growth Programme

UNNATI - Inclusive Growth Programme in Nepal is focussing on Local Economic Development in seven districts in the Eastern Development Region (EDR). The support is 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 has 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 is expected to strengthen market-based inclusive growth that reduces poverty and raises living of standards. The strategic focus of UNNATI is on private sector development in compliance with Danida’s strategy for support to growth and employment. The private sector is a beneficiary and also an implementing partner. The public sector is expected to play 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 supports three components: C1: The Value Chain Component comprises two sub-components: 1.1: Commercialisation of Selected Value Chains and 1.2: Access to Finance; C2: The Infrastructure Component comprises two sub-components 2.1: Rural Transport Infrastructure and 2.2: Public Market-Related Infrastructure; and C3: The Enabling Environment Component comprises two sub-components 3.1: Public-Private Partnership and 3.2: Advocacy for Rights and Good Corporate Governance.  The three components are interlinked with the Value Chain Component as the core of the programme. ORGUT is contracted by Danida as the Management Contractor (MC) and provides the technical assistance to the Value Chain Component/ Commercialisation of Selected Value Chains and to the entire Infrastructure Component.

The Value Chain Implementation Strategy is focused on supporting the private sector in working with the value chain from the market to the farmer and support to improving access to financial services. Through strategic selection of a few value chains (orthodox tea, ginger and dairy) to be supported it is envisaged that the support will have a direct impact, but also a multiplier effect in the agricultural sector as a whole.  To facilitate lasting results, the aim is the development of a dynamic and professional service network that is available, able and willing to support broad-based agricultural development. TA provided by the MC focus on capacity building of service providers in production, post-harvest handling, product marketing, and identifying and securing trade linkages along the selected value chains and to develop existing and new market channels. Gender mainstreaming and good governance are key elements. The Infrastructure Component supports value addition in the selected value chains by intensification of production in existing areas, improving the quality of marketed production and reducing post-harvest losses. Consequently, the component focuses on infrastructure that assists in bringing higher quality produce to market quicker and more reliably with fewer post-harvest losses. Main focus is on the rehabilitation, upgrading and improvement of existing infrastructure rather than the construction of new infrastructure. The overall strategy for infrastructure improvements is to achieve the maximum impact for producers and traders.

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