DCCs, local levels told not to accept foreign aid without approval

The Ministry of Federal Affairs and General Administration has issued a circular to all district coordination committees (DCC) and local levels not to accept assistance or loans from foreign agencies, development partners, communities or investors without consent of the federal government.
In a response to a letter from the Finance Ministry citing a recent decision of the cabinet, the ministry has urged DCC and local levels to abide by the constitutional provisions and other existing laws related to exclusive and concurrent powers of all three tiers of government.
The constitution – Article 59 (6) – reads that the Government of Nepal shall have power to obtain foreign assistance and borrow loans, which means only the federal government has the right to accept the foreign assistance and borrow loans. “Such assistance or loans shall be obtained or borrowed to maintain macroeconomic stability of the country,” the article reads, adding that Clause 7 of Schedule-5 has set down the matters related to international treaties or agreements, extradition, mutual legal assistance and international borders and transboundary rivers as the exclusive power of the federal government.
According to Section 12 of the Inter-governmental Fiscal Arrangement Act-2017, provincial and local governments shall not obtain any form of foreign grant or assistance or implement or make to implement any plans or programmes with the foreign grants or assistance, without prior consent of the federal government, the circular reads.
The Finance Ministry has requested the Ministry of Federal Affairs and General Administration to issue a circular to all the DCC and local levels in conformance with the November 15 decision of the cabinet, citing that there was the possibility that foreign assistance and loans would be accepted without bringing it to the knowledge of the federal government,” according to the Development Assistance Coordination Section under the Ministry of Federal Affairs and General Administration.
The central government has became very cautious about the issue after some local levels were found to be planning to sign agreements with foreign development partners for assistance and loans by keeping the federal government in the dark.
The federal government can accept foreign grants and assistance for plans or programmes to be implemented by the provincial and local governments.

India builds school building

Deputy chief of Mission at the Embassy of India in Kathmandu Dr Ajay Kumar inaugurated the school building of Kuleshwor Awas Secondary School located in Kathmandu-14 today.
The new school building constructed with the Government of India’s grant assistance of Rs 38.60 million is a three-storey building comprising 20 classrooms, separate sanitation facilities for boys and girls on each floor, underground water tank, septic tank and furniture. “The project was implemented by Kathmandu District Coordination Committee (DCC), according to a press note issued by the Indian Embassy in Kathmandu.
Chairman of DCC Shiva Sundar Raj Vaidya, chairman of the ward-14 Shova Sapkota and District Coordination Officer Pitamber Adhikari, along with political and community leaders also participated in the inaugural ceremony.
Kuleshwor Awas Secondary School – established in 1989 by Kuleshwor Awas Pariwar Kalyan Sanstha – is run with community support. At present, over 800 students are enrolled in the school out of which over 50 per cent are girls. Most of the students come from marginalised communities.
The newly built infrastructure is expected to boost the learning environment of students, the press note reads, adding that India is happy to be associated with the project which compliments effort of Nepal in augmenting infrastructure in the field of education.