Completion Report

Project Number: 38347-022 Grant Number: 0106 December 2020

Nepal: Information and Communication Technology

Development Project

This document is being disclosed to the public in accordance with ADB’s Access to Information Policy.

CURRENCY EQUIVALENTS

Currency unit – Nepalese rupee/s (NRe/NRs)

At Appraisal At Project Completion 16 August 2007 30 April 2019

NRe1.00 = $0.015383 $0.008896 $1.00 = NRs65.008000 NRs112.409900

ABBREVIATIONS

ADB – Asian Development Bank CPS – country partnership strategy DMF – design and monitoring framework DOLRM – Department of Land Reform and Management DOTM – Department of Transport Management DONIDCR – Department of National ID and Civil Registration EDL – electronic driving license EIRR – economic internal rate of return e-GMP – e-Government Master Plan GEA – government enterprise architecture G2B – government to business G2C – government to citizens G2G – government to government GIDC – government integrated data center HLCIT – High Level Commission for Information Technology IEE – initial environment examination ICT – information and communication technology ISP – internet service provider IT – information technology LRIMS – Land Reform Information Management System LRO – land revenue office MOEST – Ministry of Environment, Science and Technology MOIC – Ministry of Information and Communications MOFAGA – Ministry of Federal Affairs and General Administration MTR – midterm review NID – national identification NIDS – national identification system NITC – National Information and Technology Center NEGIF – Nepal Government Interoperability Framework O&M – operation and maintenance OPMCM – Office of the Prime Minister and Council of Ministers PSC – Public Service Commission PSRMS – Public Service Recruitment Management System PIU – project implementation unit PMC – project management consultant PMU – project management unit PPMS – project performance monitoring system RDBMS – Relational Database Management System TA – technical assistance VRS – vehicle registration system

NOTES

(i) The fiscal year (FY) of the Government of Nepal and its agencies ends on 16 July. “FY” before a calendar year denotes the year in which the fiscal year ends, e.g., FY2020 ends on 16 July 2020.

(ii) In this report, “$” refers to United States dollars unless otherwise stated.

Vice-President Shixin Chen, Vice-President (Operations 1) Director General Kenichi Yokoyama, Director General, South Asia Regional Department

(SARD) Director Mukhtor Khamudkhanov, Country Director, Nepal Resident Mission (NRM),

SARD Team leader

Bhupendra Chandra Bhatt, Senior Project Officer (Transport), NRM, SARD

Team members Sunila Ghimire, Project Analyst, NRM, SARD Manbar Singh Khadka, Economics Officer, NRM, SARD

Sangita Rai, Operation Assistant, NRM, SARD Deepak Bahadur Singh, Senior Environment Officer, NRM SARD

Suman Subba, Senior Social Development Officer (Gender), NRM, SARD Laxmi Prasad Subedi, Senior Social Development Officer (Safeguards), NRM,

SARD

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

CONTENTS

Page

BASIC DATA i

I. PROJECT DESCRIPTION 1

II. DESIGN AND IMPLEMENTATION 1

A. Project Design and Formulation 1 B. Project Outputs 2 C. Project Costs and Financing 5 D. Disbursements 5 E. Project Schedule 5 F. Implementation Arrangements 6 G. Technical Assistance 6 H. Consultant Recruitment and Procurement 7 I. Gender Equity 7 J. Safeguards 7 K. Monitoring and Reporting 8

III. EVALUATION OF PERFORMANCE 8

A. Relevance 8 B. Effectiveness 9 C. Efficiency 11 D. Sustainability 11 E. Development Impact 12 F. Performance of the Borrower and the Executing Agency 13 G. Performance of the Asian Development Bank 13 H. Overall Assessment 13

IV. ISSUES, LESSONS, AND RECOMMENDATIONS 14

A. Issues and Lessons 14 B. Recommendations 14

APPENDIXES

1. Design and Monitoring Framework 16

2. Project Cost at Appraisal and Actual 23

3. Project Cost by Financier 24

4. Disbursement of Grant and Grant Proceeds 26

5. Contract Awards of Grant and Grant Proceeds 27

6. Status of Compliance with Grant Covenants 28

7. Economic Analysis 35

8. Technical Review of the Project 47

BASIC DATA

A. Grant Identification

1. Country Nepal 2. Grant number and financing

source 0106 (Asian Development Fund)

3. Project title Information and Communication Technology Development Project

4. Borrower Government of Nepal 5. Executing agency Office of the Prime Minister and Council

of Ministers 6. Amount of grant $25 million 7. Financing modality Project grant

B. Grant Data

1. Appraisal – Date started – Date completed

13 August 2007 16 August 2007

2. Grant negotiations – Date started – Date completed

7 December 2007 7 December 2007

3. Date of Board approval 28 January 2008 4. Date of grant agreement 23 May 2008 5. Date of grant effectiveness – In grant agreement – Actual – Number of extensions

21 August 2008 25 July 2008 0

6. Project completion date – Appraisal – Actual

30 June 2014 31 December 2018

7. Grant closing date – In grant agreement – Actual – Number of extensions

31 December 2014 31 December 2018 3

8. Financial closing date – Actual

11 November 2019

9. Terms of grant – Interest rate – Maturity (number of years) – Grace period (number of years)

Not applicable (NA) NA NA

10. Terms of relending (if any) – Interest rate

NA

– Maturity (number of years) NA – Grace period (number of years) – Second-step borrower

NA NA

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11. Disbursements

a. Dates

Initial Disbursement 23 June 2010

Final Disbursement 22 July 2019

Time Interval 109.02 months

Effective Date 25 July 2008

Actual Closing Date 11 November 2019

Time Interval 135.65 months

b. Amount ($)

Category

Original Allocation

(1)

Increased during

Implementation (2)

Canceled during

Implementation (3)

Last Revised

Allocation (4=1+2–3)

Amount Disbursed

(5)

Undisbursed Balance (6 = 4–5)

1. Works 22,600,000 6,950,000 8,500,000 21,050,000 19,253,833 1,796,167

1A. Rural e-Community

7,900,000 - 7,900,000 - - -

1B. Government Network

3,700,000 3,000,000 - 6,700,000 6,660,214 39,786

1C. e-Government Applications

11,000,000 3,950,000 600,000 14,350,000 12,593,619 1,756,381

2. Human Resource Development

1,500,000 - 400,000 1,100,000 1,067,349 32,651

3. Consulting Services

700,000 650,000 300,000 1,050,000 797,467 252,533

4. Unallocated 200,000 50,000 200,000 50,000 - 50,000 5. Office Equipment

- 250,000 - 250,000 228,977 21,023

Total 25,000,000 7,900,000 9,400,000 23,500,000 21,347,627 2,152,373

C. Project Data

1. Project cost ($ million)

Cost Appraisal Estimate Actual Foreign exchange cost 27.70 23.29 Local currency cost 3.50 3.30 Total 31.20 26.59

2. Financing plan ($ million})

Cost Appraisal Estimate Actual Implementation cost Borrower financed 6.2 5.24 ADB financed 25.0 21.35 Other external financing - - Total implementation cost 31.2 26.59 Interest during construction costs 0.0 0.0 Borrower financed 0.0 0.0 ADB financed 0.0 0.0 Other external financing 0.0 0.0 Total interest during construction cost 0.0 0.0

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3. Cost breakdown by project component ($ million)

Component Appraisal Estimate Actual A. Base Cost 1. Rural e-Community 9.00 0.00 2. Government Network 4.40 6.93 3. e-Government Applications 12.80 16.15 4. Human Resource Development 1.50 2.27 5. Project Management Consultants 0.70 0.92

6. Office Equipment 0.00 0.32 Subtotal (A) 28.30 26.59

B. Contingencies 2.90 0.00 Total (A+B) 31.20 26.59

4. Project schedule

Item Appraisal Estimate Actual Consultant Recruitment 29 Sep 2008-10 Jan 2009 18 Jun 2009–26 Jan 2010

Date of contract with consultants 10 Jan 2009 11 Feb 2010 Finalizing the bidding documents 29 Sep 2008–11 Feb 2009 23 Feb 2009–22 May 2013 Part 1: Rural E-Community 29 Sep 2008–24 Jan 2009 Component was cancelled

on 12 Feb 2013 Part 2: Government Network 29 Sep 2008-28 Dec 2008 16 Oct 2009–2 Feb 2010 Part 3 (i): Enterprise Architecture 29 Sep 2008–13 Dec 2008 23 Feb 2009–15 Jun 2009 Part 3 (ii): National ID System 29 Sep 2008–28 Dec 2008 22 Mar 2009–22 May 2013 Part 3 (iii) Vehicle Reg. & License 29 Sep 2008–12 Jan 2009 22 Mar 2009–24 Aug 2012 Part 3 (iv): E-Government- SC 29 Sep 2008–27 Jan 2009 22 Mar 2009-7 May 2012 Part 3 (v): Land Records Management 29 Sep 2008–11 Feb 2009 22 Mar 2009–3 May 2012 Procurement 14 Dec 2008–16 Jun 2009 22 Jun 2009–15 Jul 2016 Part 1: Rural E-Community 25 Jan 2009–29 May 2009 Cancelled Part 2: Government Network 29 Dec 2008–2 May 2009 13 Feb 2010–11 Nov 2010 Part 3 (i): Enterprise Architecture 14 Dec 2008–17 Apr 2009 22 Jun 2009–23 Apr 2010 Part 3 (ii): National ID System 29 Dec 2008–2 May 2009 29 Apr 2013–15 Jun 2016 Part 3 (iii) Vehicle Reg. & License 13 Jan 2009–17 May 2009 31 Aug 2012–4 Oct 2013

Part 3 (iv): E-Government-PSC 28 Jan 2009–1 Jun 2009 14 May 2012–12 Feb 2013 Part 3 (v): Land Records Management 12 Feb 2009–16 Jun 2009 10 May 2012–1 Apr 2013 Design, Supply, Installation, Testing and Commissioning

1 Jan 2009–29 May 2012 24 May 2010–16 Aug 2018

Part 1: Rural E-Community 30 May 2009-18 May 2012 Cancelled Part 2: Government Network 3 May 2009–26 Jul 2010 12 Oct 2010–27 Jan 2016 Part 3 (i): Enterprise Architecture 18 Apr 2009–17 Apr 2010 23 Apr 2010–31 Jul 2011 Part 3 (ii): National ID System 17 Jul 2009–9 Oct 2010 16 Jun 2016–16 Aug 2018 Part 3 (iii) Vehicle Reg. & License 15 Oct 2009–14 Oct 2010 4 Oct 2013–31 Dec 2017 Part 3 (iv): E-Government-PSC 15 Oct 2009–14 Oct 2010 12 Feb 2013–30 Oct 2015 Part 3 (v): Land Records Management 15 Oct 2009–14 Oct 2010 1 Apr 2013–31 May 2017 Part 4: HR Development for E-Governance 1 Jan 2009–29 May 2012 1 Jan 2013–12 Mar 2018

HR=human resource, ID=identity, PSC=Public Service Commission, Reg.=registration.

5. Project performance report ratings

Implementation Period Ratings

Development Objectives Implementation Progress From 31 Jan 2008 to 31 Mar 2011 Satisfactory Satisfactory Single Project Rating From 1 Apr 2011 to 30 Sep 2011 Potential Problem From 1 Oct 2011 to 30 Sep 2012 Actual Problem From 1 Oct 2012 to 31 Dec 2012 On Track

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From 1 Jan 2013 to 31 Mar 2013 Potential Problem From 1 Apr 2013 to 30 Jun 2013 Actual Problem From 1 Jul 2013 to 31 Dec 2013 Potential Problem From 1 Jan 2014 to 31 Dec 2014 On Track From 1 Jan 2015 to 30 Jun 2015 Potential Problem

From 1 Jul 2015 to 31 Dec 2019 On Track

D. Data on Asian Development Bank Missions

Name of Mission Date No. of

Persons

No. of Person-

Days Specialization of

Members Fact-Finding Mission 2–9 Jul 2007 3 16 g,h,i Appraisal Mission 13–17 Aug 2010 4 20 g,q,r,r Grant Negotiations 6–7 Dec 2007 3 6 g,i,p Consultation Mission 1 12–14 Mar 2008 3 9 g,h,i Project Inception Mission 22–26 Sep 2008 3 15 c,e,e, Special Administration Mission 7–9 Jun2009 2 6 e,f Grant Review Mission 1 5–8 Jul 2010 4 12 c,f,f Grant Review Mission 2 13–23 Dec 2010 3 33 c,f,f Grant Review Mission 3 19–26 Mar 2012 2 9 b,c Midterm Review Mission 17–28 Sept 2012 3 21 a,b,c Consultation Mission 2 1–11 Sep 2014 3 27 a,h,o Grant Review Mission 4 3–10 Nov 2014 2 17 a,c Grant Review Mission 5 31 Aug–4 Sep 2015 2 8 a,c Grant Review Mission 6 15–29 Aug 2016 14 b,c Grant Review Mission 7 6–22 Jun 2017 2 16 b,c Grant Review Mission 8 20 Nov–21 Dec 2017 2 14 b,c Grant Review Mission 9 23 Jul–14 Aug 2018 2 18 c,d Project Completion Review Mission 4–10 Sep 2020 7 12 c,f,j,k,l,m,n

a = senior public management specialist, b = procurement officer, c = project analyst, d = senior project officer (transport), e = transport specialist, f = project officer, g = principal financial specialist, h = senior ICT specialist, i = senior governance and/or capacity building officer, j = economics officer, k = senior environment officer, l = senior social development officer (safeguards), m = senior social development officer (gender), n = senior procurement officer o = smart card consultant, p = counsel, q = senior programs officer, r = consultant.

I. PROJECT DESCRIPTION 1. Nepal’s harsh topography, especially the hilly and mountainous regions, impedes sustainable growth and development. Poor road infrastructure built in the early 2000s deprived rural population from basic facilities and undermined household welfare.1 Public services were weak, supplier-centered, and difficult to access, leading to economic isolation of the rural population. The Government of Nepal recognized information and communication technology (ICT) as one of the most effective means to overcome geographic barriers, effectively deliver public services, and reduce poverty. However, the development of e-government and ICT in the early 2000s was at an embryonic stage. Among the countries assessed for e-readiness, Nepal ranked 5%–20%, the lowest quantile. The situation raised major concerns regarding the country’s participation in the information society and was the basis for Asian Development Bank (ADB) support for the Information and Communication Technology Development Project.2 It intended to make ICT accessible to the public and improve efficiency and transparency in public service delivery. 2. On 28 January 2008, ADB approved the project, which became effective on 25 July 2008. The estimated project cost was $31.2 million, to be financed by a $25.0 million grant from ADB and a $6.2 million contribution from the government. The project impact was ICT services increased for communities, business, and government entities, leading to more inclusive and sustainable socioeconomic development. The project’s envisaged outcome was accessibility, efficiency, and transparency in public service delivery improved by increasing the access of communities and business to affordable ICT. The outputs were (i) e-government framework and data infrastructure developed; (ii) e-citizen services and applications provided on a pilot basis for driving licenses and land registration; (iii) nationwide human resources developed to implement e-government and ICT; and (iv) national ICT operating policies and guidelines established to ensure interoperability of online technologies among government, business, and the community.

II. DESIGN AND IMPLEMENTATION

A. Project Design and Formulation 3. The project design and formulation at appraisal were aligned with the government’s development priorities to promote ICT. The ICT Policy 2000 envisioned placing Nepal on the global ICT map over the next 5 years.3 The government adopted the e-Government Master Plan (e-GMP) in 2005 to promote the use of ICT to improve government services and to foster social integration, economic growth, and poverty reduction.4 An objective of the 10th government plan was to promote good governance and social services by boosting ICT accessibility.5 The project aimed to realize the vision of the ICT Policy 2000, support the government’s ICT-led development strategy, and develop e-government projects under e-GMP guidelines.

1 G. Thapa and G. Shively. 2018. A Dose-Response Model of Road Development and Child Nutrition in

Nepal. Research in Transportation Economics. 70. 112–24. Basic facilities include education, health, and access to markets.

2 ADB. 2007. Report and Recommendation of the President to the Board of Directors: Proposed Asian Development Fund Grant Nepal: Information and Communication Technology Development Project. Manila.

3 Ministry of Science, Technology and Environment, Government of Nepal. 2000. Information Technology Policy, 2000. Kathmandu.

4 Pariyar, M. P. 2007. E-government initiatives in Nepal: Challenges and Opportunities. In Proceedings of the 1st international conference on Theory and practice of electronic governance. 280-282. People’s Republic of China, 10-13 December 2007.

5 National Planning Commission, Government of Nepal. 2002. Tenth Plan (2002–2007). Kathmandu.

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4. At design, the project was aligned with ADB’s country partnership strategy (CPS), 2005–2009 for Nepal. The project was fully consistent with reducing poverty and targeting development in poor and conflict-affected areas, an objective of ADB’s country strategy and program update, 2004–2006.6 The CPS focused on promoting good governance by increasing the efficiency of public services and government accountability and transparency.7 The project remained relevant to government and ADB strategies and plans at completion (para. 33). 5. The government requested ADB to provide project preparatory technical assistance (TA) to establish the foundation for the investment phase of the e-GMP (para. 25). The TA commenced in November 2006 and was completed in mid-July 2007.8 The TA provided a comprehensive basis for the project design, assessed the rationale for the project components, and justified the project’s implementation and the modality’s appropriateness. The project was formulated through extensive discussions with the government and development partners. In early March 2008, ADB organized an interagency workshop on e-government among stakeholders (participants from the Office of the Prime Minister and Council of Ministers [OPMCM] and the High Level Commission for Information Technology [HLCIT] and ADB consultants) to build government capacity to implement projects. A project inception mission conducted in Kathmandu in September 2008 reviewed the status of project readiness and discussed the implementation arrangement.9 The project’s design and monitoring framework (DMF) was sound, with appropriate indicators and targets. During the midterm review in 2012, the DMF was revised together with minor changes in scope (para. 6).10 The DMF summarizes the project’s achievements against the revised targets (Appendix 1). B. Project Outputs 6. At appraisal, the project outputs were (i) rural e-community connected, (ii) government network established, (iii) e-government applications developed, (iv) human resources developed for e-governance, and (v) national ICT policies formulated. From 2009–2012, the Nepal Telecommunications Authority substantially achieved the rural e-community output. Tele-density increased from 18.86% in January 2009 to 64.91% in July 2012, primarily because of increased penetration of mobile networks (Appendix 8). Upon the government’s request, the first output (rural e-community) was dropped during the midterm review held in September 2012 (footnote 10). Accordingly, the project scope was revised, the grant agreement was amended, and the grant for the rural e-community output was reallocated to the other outputs (footnote 13). The revised project maintained the other four outputs. Overall, all 11 output targets were achieved. 7. Output 1: e-Government framework and data infrastructure developed. All four output targets were met albeit with delays. The project aimed to develop the government enterprise architecture (GEA), the government integrated data center (GIDC), and the government groupware; and to pilot the national identification system (NIDS) as a central database.11 The government was to adopt the GEA as the standard framework for e-government applications by

6 ADB. 2003. Country Strategy and Program Update: Nepal, 2004–2006. Manila 7 ADB. 2004. Country Strategy and Program: Nepal, 2005–2009. Manila. 8 ADB. 2007. Preparing the Information and Communication Technology Development Project: A Programme of

Modernization for Nepal. Final Report. Manila (TA 4833-NEP). 9 ADB. 2008. Nepal: Information and Communication Technology Development Project. Project Inception Mission.

Aide Memoire. 22–26 September. Internal. 10 ADB. 2012. Information and Communication Technology Development Project. Aide Memoire. 3 December 2012.

Internal. Following the exclusion of the rural e-community output, the impact and outcome statements and targets in the DMF were also adjusted as part of the minor change in scope approved in 2012.

11 Although the GIDC was mentioned as the government information and data center in the project appraisal, the government later renamed it in government integrated data center.

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2014. The national portal to develop the GEA was launched on 4 December 2013. After the cabinet endorsed the national ICT operational policy and the e-government interoperability framework on 22 February 2015, the government developed and adopted the GEA as the standard framework for e-government applications.

8. The second indicator aims to strengthen the GIDC infrastructure (already established within the National Information and Technology Center [NITC]).12 The GIDC infrastructure was improved through installment of oracle enterprise as Relational database Management System (RDBMS), data storage system, data security system and other software and equipment that specially enhanced the capacity of data storage and data management, and was operationalized in 2015. The third indicator was to develop the groupware system to expedite coordination of e-government work (such as e-mail, calendaring and scheduling, document management, and conferencing and meetings) in ministries and departments. The groupware application was customized in line with government procedure and installed in the GIDC in 2015. Document Management System and e-mail system was implemented and operated in NITC. Video conferencing device were installed in more than 40 government institutions including ministries, constitutional bodies and departments. The service license for the database management system has been upgraded and the groupware equipment was installed in 2017.13

9. The fourth indicator was related to establishment of the pilot phase of the NIDS plans to develop a central database to share identification information required for public administration and services by 2014.The government started procurement for the national identification (NID) package in April 2013 but stopped it after ADB declared the process to be anomalous on 14 November 2013 because of a conflict of interest of the consultant engaged by the Department of National ID and Civil Registration (DONIDCR). The government cancelled the procurement and invited rebidding. The DONIDCR signed the contract for the national identification system (NIDS) on 15 July 2016, which became effective on 16 August 2016. The DONIDCR created a central database to develop the NIDS. The Ministry of Home Affairs approved the NID card distribution procedures on 20 May 2018. Implementation of the pilot NIDS was completed successfully by 31 December 2018, with live enrollment of data and personalization and issuance of NID cards. Because of delayed procurement, earthquakes in 2015, and provincial elections in November and December 2017, the target was delayed by 48 months (para. 21) but the output was achieved. 10. Output 2: e-Citizen services and applications provided for driving licenses and land registration. The project aimed to improve the delivery of government services by providing access to e-government applications, which were developed as summarized below. Overall, all three output targets were met despite delays.

11. The Department of Land Reform and Management (DOLRM) developed the e-governance application for land record management to improve service delivery and introduce user-friendly applications for accessing and updating land records. The DOLRM developed the Land Reform Information Management System (LRIMS), a centralized web-based system, and rolled it out in two land reform offices (LROs) in 2015 and in a total of 14 LROs by 2017. The DOLRM conducted a user acceptance test on 22 May 2017. The delay was caused by the 2015 earthquake, which affected data migration from paper to the electronic system; shortage of fuel because of the border

12 The GIDC was not established during the time of PPTA and therefore the project included it in the original DMF.

However, the Korean International Cooperation Agency (KOICA) built the GIDC infrastructure (building) with little or no equipment before 2012. Thus the project aims to strengthen the already established GIDC and revised DMF updated the target accordingly.

13 Office of the Prime Minister and Council of Ministers, Nepal Government. 2019. Nepal: Information and Communication Technology Development Project. Project Completion Report. Kathmandu.

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blockade; and the shortfall of information technology (IT) equipment. By 2018, the DOLRM has already installed the LRIMS in 54 LROs.14 The LRIMS has simplified calculating registration fees and capital gains taxes, made them transparent, reduced illicit transactions, and increased work effectiveness.

12. The Department of Transport Management (DOTM) developed the e-governance application for the electronic driving license (EDL) system to ease the issuance and renewal of smart licenses. The EDL contains a microchip that carries the driver’s information, digital photograph, and scanned signature. The DOTM developed the EDL application software and rolled it out in Kathmandu on 30 November 2015. The EDL system is in operation in 4 offices in Kathmandu Valley and 12 transport management zonal offices elsewhere. Initially, the issuance of the EDL was significantly delayed because of the wrong forecast for EDL demand and the lack of equipment and ICT-related human resources in DOTM. The development of a vehicle registration system (VRS) was also under the project scope. The project completed the VRS in December 2015, and the government will subsequently roll it out. As of project completion report date, the government has not rolled out the VRS. The delay is mainly due to the lack of trained staff to operate the financial management system of VRS given its complexity. The DOTM developed the system for the zonal level but it needs to meet legal standards and be able to handle provincial business processes. The DOTM is actively working to rollout the VRS as soon as possible. 13. The Public Service Commission (PSC) developed and implemented a web-based public service recruitment management system (PSRMS). The PSC launched the software with an external portal on 8 April 2015, almost a year later than expected because the software system was being tested and finalized. The system is now fully operational in all 16 PSC offices. Since 2016, 100% of applications have been received through the online system, indicating increased citizen awareness of the PSRMS’ role and importance.

14. Output 3: Nationwide human resources developed to implement e-government and information communication technology. The output aimed to build awareness, knowledge, and skills of key stakeholders in e-governance; establish computer laboratories; revise the training curriculum; and develop curricula for public training institutions. The project set up laboratories in training institutions and conducted training programs through contracted training institutions. Ten training laboratories were established, and six existing ones strengthened with addition of new computers and equipment in 2013. In total, the project conducted 118 trainings, benefiting 3,821 participants. About 11.4% of government personnel trained were female, exceeding the target of 10.0%. The Ministry of Federal Affairs and Government Administration (MOFAGA) developed curriculum and materials and trained government staff members through 11 civil servant training institutions. All targets under output 3 were achieved. 15. Output 4: National ICT operating policies and guidelines established to ensure interoperability with online technologies of government, business, and the community. The cabinet endorsed the National ICT Operational Policy for the GEA and the Nepal e-government interoperability framework on 22 February 2015. Based on these guidelines, the NITC reached a service agreement with the PSC and the DOLRM. Output 4 has been achieved.

14 Before the PCR mission in 2020, the system was already rolled out in all 131 LROs.

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C. Project Costs and Financing 16. The total project cost at appraisal was $31.2 million, constituting a $25.0 million grant (80%) from ADB and $6.2 million contribution (20%) from the government. The government contribution comprised taxes and duties of $3.5 million and contingencies of $2.7 million. 15 After the rural e-community component of the project was dropped (para. 6), the related grant saving was reallocated to improve delivery of the remaining four components. The actual cost at project completion was $26.59 million, with $21.35 million from ADB and $5.24 million from the government. The unallocated grant saving of $4.61 million resulted from lower than expected prices in most of the contract packages and the appreciation of the dollar against the rupee. The project cost details at appraisal and completion are in Appendix 2, Table A2. Appendix 3, Table A3.1 presents the project cost at appraisal by financier and Appendix 3, Table A3.2 presents the project cost at completion by financier. D. Disbursements 17. The project management unit (PMU) opened an imprest account to expedite project implementation through timely release of grant proceeds for human resource development. The ADB disbursed the grant proceeds for financing goods, works, consulting services, and other items in accordance with ADB’s Loan Disbursement Handbook, 2007 (as amended from time to time). The project used a statement of expenditure procedure to reimburse eligible expenditures and to replenish funds into the imprest account. At the request of the PMU, ADB directly paid contractors from the grant fund. The original disbursement schedule was extended three times until December 2018. 18. The disbursement projection at appraisal was overly optimistic for such a complex project, which had numerous small contracts. From 2008 to 2016, project implementation and disbursements were well below targets. The initial delay in project implementation, procurement delay in the NID package, delay in contract award, and earthquakes that struck in 2015 led to low disbursement before 2017. For several years, the project was not able to meet projected disbursement targets because of the delay in procurement of contract packages. When the implementation of the NID package progressed, disbursements picked up in 2017. The details on the projected, annual, and cumulative disbursements are in Appendix 4 and the details on contract awards in Appendix 5.

E. Project Schedule 19. ADB approved the project on 28 January 2008 and signed the grant on 23 May 2008. The project became effective on 25 July 2008, with the grant closing scheduled on 31 December 2014. The project was extended thrice, however, until 31 December 2018 and was financially closed on 11 November 2019.16 The delay in financial closure was caused by frequent turnover of government staff members and the resulting time needed to locate statement of expenditure documents.

15 The government network investment cost increased from $4.4 million to $7.8 million, e-government applications from

$12.8 million to $17.1, project management consultant from $0.7 million to $1.2 million, and contingencies from $2.9 million to $3.6 million. The cost for the NID component under e-government applications was estimated at $3.30 million at appraisal and the revised estimate after detail design of the pilot phase was $8.00 million. However, the contract price at award was $5.85 million.

16 The approval dates of extensions are 26 March 2014, 21 March 2016, and 11 April 2018.

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20. The first extension, from June 2014 to March 2016, was required because of problems with procurement and changes in the national political system. The Ministry of Finance requested a second extension of 24 months, from 31 March 2016 to 31 March 2018 to complete the implementation of (i) the database for the NIDS, (ii) the e-governance application for DOLRM, and (iii) vehicle registration and issuance of driving licenses. These outputs had not been completed by 2016 but were vital for meeting the overall project objectives. ADB approved a final extension, from 31 March 2018 to 31 December 2018.

21. The project, therefore, was delayed by 48 months because of exogenous factors and internal project implementation factors such as procurement delays (paras. 9, 11, 12, 13). Political instability also resulted in rapid turnover of government officials (particularly skilled and motivated ones). The major earthquakes in 2015 and the trade and transit embargo imposed by India from August 2015 to February 2016 delayed importation of required equipment, impeding project progress. F. Implementation Arrangements 22. The OPMCM was the executing agency and implemented and coordinated the project. The PMU, established under the executing agency, was supported by project management consultants (PMCs). Although the project steering committee was established to guide the project with multiagency involvement, it did not organize a single meeting during project implementation. 23. During project appraisal, the project had five components or outputs (para. 6). Each component and subcomponent was assigned to an implementing agency: (i) the Ministry of Information and Communications for the rural e-community; (ii) the Ministry of Environment, Science and Technology for the government network; (iii) the HLCIT for the enterprise architecture; (iv) the Ministry of Home Affairs for the NID; (v) the PSC for e-governance in the PSC; (vi) the Ministry of Land Management, Cooperatives and Poverty Alleviation for the DOLRM; (vii) the Ministry of Labor and Transport Management (MOLTM) for vehicle registration and driving licenses; and (viii) the Ministry of Federal Affairs and General Administration for human resource development.17 The government dissolved the HLCIT in December 2011 and transferred responsibility for enterprise architecture to the NITC. The result was six project implementing agencies, which established project implementation units (PIUs) for the components. 24. The PIUs were responsible for monitoring the day-to-day progress of project management, undertaking procurement, and preparing monthly project progress reports. The original implementation arrangements, with minor adjustments to reflect ground realities, were adequate to deliver program outputs. The executing agency and ADB’s resident mission regularly followed up and monitored the progress to expedite project implementation and completion. G. Technical Assistance 25. ADB approved a project preparatory TA (footnote 8) on 30 August 2006 for $0.6 million. It became effective on 13 October 2006 and closed on 31 October 2010. The TA was financed by ADB (Japan Special Fund) with actual disbursement of $ 0.572 million. The TA’s main objective was to conduct a scoping study to prepare the project. Four international individual consultants

17 During project appraisal and implementation, the Ministry of Land Reform and Management was renamed Ministry

of Land Management, Cooperatives and Poverty Alleviation. The Ministry of Labor and Transport Management is now the Ministry of Physical Infrastructure and Transport. The Ministry of General Administration is now the Ministry of Federal Affairs and General Administration. The subcomponents are the project outputs.

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were recruited for 16 person-months and one national firm comprising six experts was engaged for 34 person-months. Three individual national consultants were recruited to support the preparation of the detail design and bidding document for individual applications. All the consultants helped ADB missions, including for fact finding, appraisal, review, and processed the proposed project grant. The TA team identified the project target areas and provided a basic framework for implementing the project (footnote 8). All the envisaged TA outputs were achieved and the performance of the consultants is rated satisfactory. H. Consultant Recruitment and Procurement 26. The PMCs were recruited to help implement project activities such as preparing bidding documents, evaluating contracts, supervising and monitoring project component implementation, and building the capacity of the executing agency and PIU staff. The consultants were mobilized from 15 March 2010 until March 2013. After the end of PMC support, ADB deployed a consultant until the third quarter of 2016 to help the PMU prepare the progress reports in ADB format. Consultants were selected in accordance with the ADB Guidelines on the Use of Consultants (2007, as amended from time to time), following quality- and cost-based selection (80:20) and simplified technical proposal. The PMC provided a total of 108 person-months of national consultant inputs, consisting of (i) a team leader, (ii) an integration specialist, and (iii) a system integration specialist. In 2011–2013, frequent replacement of PMC members delayed project implementation. The performance of the consultants (PMC members and the ADB consultant) was assessed as satisfactory. 27. All goods and works financed from the grant proceeds were procured in accordance with ADB’s Procurement Guidelines (2007, as amended from time to time). Twelve contracts for IT system development and supply and installation of IT equipment were awarded following ADB’s international competitive bidding procedure using ADB’s standard bidding documents. Several small-value contracts for goods, equipment, and training were awarded following the shopping procedure. Except for the NID package (para. 9), no problems were observed in procuring goods or services with reference to ADB’s procedures. Most of the contracts for supply of equipment and goods were completed on time. Some contracts to develop application software systems were delayed by slow decision-making by PIUs and required extensions. Overall, the performance of the contractors and suppliers at project completion is assessed as satisfactory. I. Gender Equity 28. The project was categorized under some gender elements as a theme. Hence, a gender action plan was not required or included. The DMF included a 10% target for female government staff members to be trained in e-governance applications provided by the project. The project trained 11.4% (436 out of 3,821 persons), including female staff members in the six government agencies responsible for project implementation. J. Safeguards 29. The project’s safeguard performance is rated satisfactory. The project was categorized B for environment at appraisal and at completion.18 The project prepared an initial environmental examination (IEE) and attached a summary IEE to the project appraisal following ADB

18 The environment category remained at B despite dropping of data center construction since the environmental

impacts were envisaged not only from civil works but also from e-waste generated from the work if not properly managed.

8

Environmental Assessment Guidelines (2003, as amended from time to time). The IEE highlighted project activities, environmental baseline information, potential impacts, and mitigation measures along with an environmental management plan. 30. The project focused on e-governance and strengthening of the GIDC. No environmental impacts were observed because the project had no civil works. The e-wastes were properly managed. Positive environmental impacts resulted from minimizing paper use and improving transaction efficiency. Limited adverse impacts from e-waste, however, could occur if not managed properly. 31. The project categorization for involuntary resettlement and indigenous peoples was C at appraisal and completion. At appraisal, the project was designed to avoid land acquisition and resettlement. The project recorded no impact on indigenous peoples and no resettlement impact during implementation. The project complied with the safeguard covenants. There were no outstanding safeguard-related issues at completion. K. Monitoring and Reporting 32. Among 24 key grant covenants, 17 were complied with, 1 was complied with but with delays, 2 were partially complied with, and 4 were waived. On 12 February 2013, ADB approved the removal of the rural e-community output through a minor change in scope (para. 6), which subsequently resulted in the waiver of four covenants: (i) wireless broadband network, (ii) tele-centers, (iii) voice over internet protocol service provision, and (iv) land acquisition and resettlement. Details of each covenant and its status of compliance are in Appendix 6. The project steering committee did not convene regularly as planned. The PMU devised the standard cost model as a project performance monitoring system (PPMS). However, no baseline data were available to measure the outcome achievement and no data were collected to derive the parameters to estimate the model. The PMU prepared and submitted the quarterly progress reports with the support of the PMC from 15 March 2010 to March 2013 and prepared the progress reports with the support of an individual consultant up to the fourth quarter of 2016. Four out of nine audited project financial statements were received on schedule. The other five were received but were delayed on average by 1.18 months. The audit opinion, however, remained unqualified throughout the project period. The quarterly progress reports were not submitted regularly after the fourth quarter of 2016. The reports and the aide memoires of ADB project review missions did not cover environmental safeguards since the scope of work did not include construction and was limited to installing an electronic system for e-governance.

III. EVALUATION OF PERFORMANCE A. Relevance 33. The project is assessed as relevant at appraisal and at completion. During appraisal, the project was fully aligned with the ICT Policy 2000, the Telecommunication Policy 2004, the ICT Draft Policy 2006, and the country’s 10th 5-year plan (2002–2007) (para. 3). The project was aligned with ADB’s country strategy and program update 2004–2006 and Nepal’s CPS 2005–2009 (para. 4). The project was relevant at completion. It supported the development of the Digital Nepal Framework 2019 and aimed to create good governance and a prosperous digital Nepal.19

19 Ministry of Information and Communications. Nepal Government. 2019. Digital Nepal Framework. Kathmandu. https://mocit.gov.np/application/resources/admin/uploads/source/publication/Digital%20Nepal%20Framework.pdf

(accessed on 12 August 2020). Digital Nepal Framework is a revenue-financed institution.

9

The project is aligned with the second objective of ADB’s CPS 2020–2024 related to improved access to devolved services.20 The project also contributes to ADB Strategy 2030 operational priority on strengthening governance and institutional capacity by increasing the use of ICT to improve public service delivery. ICT mainly contributed to SDG 9.c (help build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation).Since e-government is a key to achieve the Sustainable Development Goals (SDGs), the project activities related to improving the quality and efficiency in public service delivery by promoting e-government were relevant at completion.21 34. The project modality, designed as per the results of the ADB project preparatory TA and the guidelines based on the e-GMP (para. 5), was appropriate since outputs are straightforward and well-defined. During project formulation, ADB consulted with the development partners to avoid overlap of activities and follow a complementary approach (footnote 9). The remaining e-government applications recommended by the e-GMP are being established by the government with the support of development partners such as the World Bank, Korean International Cooperation Agency, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), and ADB through other projects.22 The project was implemented when ICT in Nepal was in its infancy with scarce ICT infrastructure. The project aims to transform the traditional bureaucracy into one that is citizen-centric. Despite the project delay of about 48 months, the project design is relevant.23

35. The project was highly innovative in building basic ICT infrastructure to expedite service delivery, promote good governance, and realize the e-GMP. It provided the government with much-needed ICT infrastructure, established e-operation policy guidelines, and built stakeholders’ capacity. The DMF was well-designed at appraisal with a logical results chain, appropriate indicators and clear targets. However, given the rapid development and technological innovation in ICT, the delay caused the project’s rural e-community to become redundant because of related interventions of the government using its own resources which were not foreseen or planned during appraisal. Thus, the dropping of the rural e-community output was appropriate and even enhanced the project’s relevance through the reallocation of funds to better implement other components. The outcomes and outputs of the original DMF were revised with the minor change in scope (footnote 10). B. Effectiveness 36. The project is rated effective. The outcome envisaged in the revised DMF was accessibility, efficiency, and transparency in public service delivery improved by increasing the application of ICT and ensuring affordable access to ICT for communities and business. All six outcome targets were achieved. All output targets were achieved and contributed to the outcome. Individual tele-density increased from 21.65% in 2014 to 142.63% in 2017, implying a more than 10.00% increase in tele-density among households.24 The modality of shared-facility tele-centers has been replaced by mobile services.

20 ADB. 2019. Country Strategy and Program: Nepal, 2020–2024. Manila. 21 Methodology for UN e-Government Index Ranking (accessed 15 May 2020). 22 The e-customs was supported under Project No. 44143-013: Nepal-Sub-regional transport enhancement project and

e-procurement systems was supported under TA 8173-NEP: Supporting the strengthening public management program.

23 The project delay was caused by external factors (political stalemate during 2012–2013, protracted constitution drafting until September 2015, twin earthquakes in 2015, a trade embargo from August 2015 to February 2016) and internal factors (delay in procurement).

24 Nepal Telecommunication Authority. MIS Reports 2014, 2017, and 2018 (accessed 10 August 2020).

10

37. Today, mobile data are accessible in all rural areas. Six internet service providers are operating.25 Communication cost has been reduced; for example, the Nepal Telecom Authority recommended paying the foreign currency equivalent of NRs263,781,606 for bandwidth and other telecom service charges in August 2014 but only NRs37,487,718 in October 2018 (footnote 24), which is about an 86% reduction (more than the target of 10%). Subscribers of wireless network operations increased from 47,379 to 57,630 from 2014 to 2017. Rapid assessment survey indicates a 50% increase in satisfaction with access and use of e-services through the LRIMS. 26 Before the project, no e-government services were in operation. By 2019, 108 LROs were using the LRIMS while 23 were providing over-the-counter services. At project completion, the PSRMS (16 offices) and the EDL system (16 offices) had been transformed into e-government services, increasing the ratio of e-government service users to existing over-the-counter government services by more than 10%. Survey indicates a 25% decrease in processing days to obtain a land certificate, from 4 or more to 3 days (footnote 26). Access to the EDL system decreased the costs of transactions by about 40%. Overall outcomes were achieved as the government has successfully piloted the e-applications. 38. All the targets related to output 1 (e-government framework and data infrastructure developed) were achieved (paras. 7–9). With the ICT network, the government can better manage its document system and better coordinate among ministries and other government agencies. 39. All the targets related to output 2 (e-citizen services and applications for driving licenses and land registration provided) were fully achieved (paras. 11–13). The LRIMS enables citizens to obtain details of land plots and pay fees online without visiting the LRO (para.11). The land registration certificate (lal purja) is distributed in printed form using a biometric fingerprint, electronic signature, and electronic photo. Property owners now have user identities and can log into the system from any part of the world and access their land records instantly, which has substantially increased recovery of capital gains tax on traded property. Such results have encouraged the land registration department to expand its use of ICT in all LROs. 40. The EDL system is likely to reduce corruption as it eases online application for licenses. Smart licenses have led to distribution of licenses to qualified drivers, which is likely to reduce accidents (para. 12). The PSRMS has expedited application submission and online payment, improved public access to government jobs, simplified administrative processes, and reduced recruitment processing time (para. 13). 41. All targets related to output 3—nationwide human resources developed to implement e-government and ICT—were achieved (para. 14). As most civil servants were ICT novices, training under the project helped them understand the systems and operating procedures of e-government and ICT. 42. Targets related to output 4—national ICT operating policies and guidelines established to ensure interoperability with online technologies of government, business, and the community— were achieved (para. 15 and Appendix 1). The policies and guidelines have provided the legal grounds to establish and operate e-government and ICT. The project did not involve any land acquisition and had a minimal environmental footprint. Safeguards implementation was satisfactory.

25 Registered rural internet service providers total 11, but only six are currently operating 26 A rapid assessment survey was conducted by the ADB consultant economist (Appendix 7).

11

C. Efficiency 43. Overall, the project is rated efficient in achieving outcomes and outputs based on economic internal rate of return (EIRR) at project completion. The economic reevaluation was conducted by comparing the economic costs and benefits with and without the project. Capital investment and operation and maintenance (O&M) costs were considered in the EIRR calculation. The economic benefits considered in the reevaluation include savings in (i) time of beneficiaries and staff, (ii) transport cost, (iii) paper cost, and (iv) salaries. The overall EIRR of 23.2% at project completion was substantially higher than the 12.0% threshold for economic viability but lower than the EIRR of 26.5% envisaged at appraisal.27 The economic reevaluation of the project at completion is in Appendix 7. The deviation of EIRRs at project appraisal and completion was mainly caused by the deletion of the project’s first component, which yielded a high EIRR and raised the overall EIRR. The net present value of the project is estimated at $38,51,947. The best-performing subcomponent, the PSC, had an estimated EIRR of 30.0%, followed by the Department of Land Management and Archive (29.5%), DONIDCR (21.5%), and the DOTM EDL (15.7%). 44. The sensitivity analysis was conducted using different scenarios (O&M cost increased by 20% and benefits reduced by 20%, O&M cost increased by 10% and benefits reduced by 10%). The analysis shows that the project continues to be economically viable when O&M cost increased by 20%. However, in a less adverse scenario (10% change in parameters), the project continues to be viable in all scenarios. The project was delayed by 4 years because of issues in procurement, and major unforeseen external factors particularly the earthquake (para. 21). Except for the NID project subcomponent, however, other outputs were mostly achieved within 2015; process efficiency, therefore, does not have a major impact on the project’s overall efficiency. The project’s three extensions had no impact on cost and counterpart financing and disbursement arrangements. D. Sustainability 45. The project is rated likely to be sustainable. The GIDC has provided efficient services (uninterrupted connectivity) to several agencies and secured and efficiently managed the data with ORACLE Enterprises as the Relational Database Management System (RDBMS). The project constructed and established the disaster recovery center in Hetauda. The turnover of staff members in less than 2 years and their replacement by novices slowed down and temporarily suspended e-service applications. However, the government is committed to build capacity in this sector. The NITC has helped institutions train government staff members. The implementing agencies have allocated annual budget to support the operations of the e-government application system and data infrastructure, including maintenance for all the outputs. Overall, the government has a high level of ownership, which is reflected by the rapid rollout of the pilot program nationally, allocation in the annual budget to run the system, and the establishment of separate ICT units (for example, in the PSC and LROs). The institutions are deemed sustainable in delivering outputs (Appendix 8). 46. All applications were received through the PSRMS from 2016 onward in all 16 PSC offices. After project completion, the PSC procured additional hardware and network equipment with government budget to more effectively operate the PSRMS. The PSC purchased an additional

27 Unlike the project appraisal, the estimated EIRR includes only the second project component and some

subcomponents. Therefore, the actual accumulative EIRR is expected to exceed the EIRR of 23.2% when considering the benefits from all components.

12

application module (e-payment through the revenue management information system [RMIS]) with government budget so that candidates could pay online. The PSC has improved the system as per the new requirement.28

47. The LRIMS increased revenue collection, reduced illicit land transactions, and increased work effectiveness. The government rolled out the LRMIS in all 131 LROs by July 2020 and Shree RS engineering JV Uniaxial Software Pvt. Ltd AMC has been contracted for O&M of the LRIMS application services. DOLRM developed a public access module using government budget and has timely updated the system.

48. The cabinet passed the NID act. Since fingerprints for the elderly might not work, the government plans to use iris recognition. About 666 stations are ready for deployment, with a target of 35,000 enrollments per day. The government aims to roll out the program to the whole country (77 districts). Unless the NID cards are distributed to a significant portion of the population, they might not come into effect. The sustainability of the NID component depends on how the NID card will be integrated with public service delivery systems and on its potential uses.

49. The DOTM plans to replace all paper cards with smart driving licenses by 2022. Using mass printers, the government is printing about 6,000 cards per day and expects to clear the backlog by December 2020. For the optimum utilization of cards, however, the DOTM is planning to develop a traffic module that assesses the validity of the card status and retains driving histories. The government is preparing to roll out the VRS aggressively in FY2020 with the support of contractor Madras Printing. 50. E-governance will contribute to environmental sustainability and carbon efficiency by minimizing the use of paper. Used batteries are either reused after repair or sent for recycling, minimizing the environmental risks from open disposal. Since these e-service applications were designed under the unitary state, the country’s recent transition to federalism might delay service delivery given the time and resources required to fully adopt the applications. Because of strong institutional settings, the government’s consistent financial support and full ownership, and the government’s commitment to transform public service delivery through e-services, the project is rated as likely to be sustainable.

E. Development Impact 51. The project’s development impact is rated satisfactory.29 The project was instrumental in the rapid increase in the use of ICT services since 2015 which has positively transformed Nepal. The establishment of a government network and e-service applications under the project has contributed to improved efficiency, transparency, and accountability in government transactions, and positively impacted the poor and vulnerable. From 2010 (base year) to 2018 (project completion year), Nepal’s UN E-Government Development Index increased from 0.27 to 0.47.30 The 74% increase exceeds the DMF target of 10%. Tele-density increased from 18.6% to 142.63% from 2008 to 2017. A study found that for every 10 percentage point increase in fixed

28 For example, the PSC established the RMIS, which has been useful in collecting exam fees online. 29 The project contributed to the following operational priorities (OPs) of ADB’s Strategy 2030: (i) OP 7.1.1. ICT

connectivity assets established: (a) the GIDC set up and (b) 10 ICT training laboratories established and 6 existing laboratories strengthened; (ii) OP 6.2.1. Capacity of public institutions to strengthen standards for better service delivery improved: (a) the GEA established and (b) three e-government services (LRIMS, PRSMS, EDL system) developed and rolled out and VRS created; and (iii) OP 6.1.1. Government officials’ capacity to design, implement, monitor, and evaluate relevant measures strengthened (3,821 government staff members trained in ICT measures).

30 UN E-Government Development Index (accessed 14 August 2020).

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broadband penetration, gross domestic product grows by 1.21% in developed economies and 1.38% in developing countries.31 Improved access to e-government services saves households a great deal of time and minimizes their transaction costs. The corruption perception index improved from 22 in 2010 to 34 in 2019.32 The increase in access to information, transparency in government services, and socioeconomic improvements in rural communities partly reflect the project’s impact. F. Performance of the Borrower and the Executing Agency 52. The performance of the borrower and the executing agency was satisfactory. The PMU, established under the OPMCM, was responsible for day-to-day project management. During implementation, the government provided sufficient and timely counterpart funds. Project implementation complied with most of the loan conditions and covenants. Although the executing agency, PMU, and PIUs took strong ownership of the project, some weaknesses were evident during implementation: (i) the PMU was not able to submit progress reports from 2016 to 2018; (ii) frequent turnover of staff members of the executing agency and PIUs delayed decision-making; and (iii) procurement of the NID package was delayed by the need for rebidding, which delayed project completion. Despite the engagement of only a few consultants, the project achieved substantial outputs because the executing and implementing agencies took full ownership of the project. G. Performance of the Asian Development Bank 53. The overall performance of ADB was satisfactory. As the executing agency lacked general project management experience, ADB coordinated closely with the project stakeholders and provided support from project inception to completion. When PMC support was completed in March 2013, ADB deployed a consultant to the PMU to help submit progress reports. ADB consultants trained government staff members involved in project implementation, procurement, financial management, safeguard monitoring, and progress reporting as per ADB requirements and procedures. ADB fielded regular missions to monitor progress and resolve issues. ADB organized frequent project meetings with the executing and implementing agencies as the project was in Kathmandu. Because the implementing agency had little experience in procurement and project implementation, the resident mission provided support. ADB organized regular tripartite portfolio review meetings to resolve interagency coordination issues. ADB’s monitoring, supervision, and support were adequate during project implementation. H. Overall Assessment 54. Overall, the project is rated successful. The project was relevant at appraisal and completion. Minor change in scope was appropriate because of the fast developments in ICT. The project was effective in achieving its outcome on improving accessibility, efficiency, and transparency in public service delivery through increased application of ICT. Targeted outputs were also achieved. The government strengthened the GIDC, established government ICT network and developed and rollout the e-government applications (PSRMS, LRMIS, EDL system). The project helped build and strengthen capacity in ICT, and draft the national ICT operational policy and e-government interoperability framework approved by the cabinet. The project is economically viable as the recalculated EIRR of 23.2% is higher than the ADB discount rate of

31 M. Minges. 2015. Exploring the Relationship between Broadband and Economic Growth. World Development Report

2016: Digital Dividends. Washington, DC: World Bank. 32 Transparency International Nepal. Corruption Perception Index (accessed 14 July 2019).

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12% despite delays in implementation. The project is rated likely to be sustainable as the government has taken full ownership of the project results. The majority of the E-government applications developed under the program are implemented at national level and have been provided with consistent financial support to sustainably operate. The project’s detailed technical review is in Appendix 8.

Overall Ratings Criteria Rating

Relevance Relevant

Effectiveness Effective

Efficiency Efficient

Sustainability Likely sustainable Overall Assessment Successful

Development impact Satisfactory

Borrower and executing agency Satisfactory

Performance of ADB Satisfactory

ADB = Asian Development Bank. Source: Asian Development Bank.

IV. ISSUES, LESSONS, AND RECOMMENDATIONS

A. Issues and Lessons 55. Institutional arrangements and capacity for complex and multiagency project. Nepal has no ministry to manage an ICT project in multiple sectors. The government confirmed the importance of the project by assigning the OPMCM as the executing agency. The OPMCM had the authority to manage multiple implementing agencies and ensure sufficient financing. The implementing agencies introduced several innovative applications under the project and rolled them out nationwide, with impressive results. However, the OPMCM initially lacked experience in executing a complex ICT project. With PIUs in six ministries, coordination was a challenge. Unlike other projects that have large PMC teams, the project engaged only a few consultants in the initial years. As a result, the project encountered delays and ADB had to provide project management support. The project, however, delivered results because of the government’s consistent financial support and full ownership. In implementing a project covering several sectors and involving different agencies, project management arrangements need to have flexibility to readjust the scope as opportunities or challenges arise during actual implementation. 56. Human resources and communication technology environment. Most government officials were new to ICT and official buildings had low-quality ICT infrastructure. The PMC was initially weak. The PMU saw frequent turnover of trained staff members, and their replacement were novices which often led to slowdowns and temporary suspension of e-service applications. Identifying and supporting “champions” within the implementing agency will help in managing challenges and addressing staff unfamiliarity and unwillingness to change. Training and awareness building activities also improve knowledge and skills to ensure better transition into new systems and processes. B. Recommendations 57. Good governance. Well-implemented ICT can improve public service delivery and transparency, enabling officials to remotely monitor offices across the country and receive daily updates on progress and challenges such as revenue collection. The LRIMS developed under

15

the project made service delivery more efficient and resolved illicit land transactions. In the future, ADB may target small-scale projects such as e-government applications for specific operations of a selected sector that are likely to improve public service delivery and good governance. 58. Improved design and implementation of the project performance monitoring system. The PPMS was not well designed and was difficult to implement. Although the standard cost model was mentioned in the DMF, it provided no clear guidelines on who and how the data would be collected. As a result, no baseline data were collected. The PPMS should be established early on with baseline data. If ADB plans to engage multiple implementing agencies, it is recommended to provide a TA to support the executing agency and project coordination.

59. Operationalizing the VRS. To maximize the benefits of the system, it is recommended for ADB to continue monitoring and following up the required actions in rolling out the VRS, particularly in meeting human resource requirements and legal standards to handle provincial business processes. 60. Layout of government buildings. Service seekers need to visit several rooms and buildings to complete transactions. The government should improve the layout of buildings to accommodate the workflow and systematically receive customers on a first-come basis through a one-stop outlet to make public service delivery more efficient.

61. Capacity-building activities. Capacity to operate e-services is limited. The government should include basic ICT courses in the training programs for all new civil service entrants. In addition, the government should explore selectively including more advanced ICT modules in existing mandatory training programs for government staff members Further, government need to organize the awareness program to promote the launch and successful operation of new e-government software or train the civils servants to operate the updated existing software (whenever there is a major change in the system). 62. Timing of the project performance evaluation report. The report should be prepared in 2022 or later so that the long-term benefits of the project can be quantified and the project impact better assessed.

16 Appendix 1

DESIGN AND MONITORING FRAMEWORK

Design Summary (Original)

Design Summary (Revised)

Performance Indicators and

Targets (Original)

Performance Indicators and

Targets (Revised)a

Project Achievements against revised

indicators/targets Impact (original) Socioeconomic improvements in remote and rural communities through ICT Improved ICT uptake in the country (community, business, and government)

Impact (revised) Increased ICT uptake in the country (community, business, and government), leading to inclusive and sustainable socio-economic development

20% improvement in the livelihood and well-being of rural communities in 38 districts, within 3 years after project completion 10% increase in the weighted average composite index of e-readiness, within 5 years after project completion

Increase of 0.0267 (i.e., 10% increase) in the weighted average composite index of UN E-Government Index Score, contributing to improvement in access to government services and socio-economic improvements in rural communities, within 2 years after project completion

Achieved: Nepal’s UN E-Government Index increased from 0.27 to 0.47 between 2010 and 2018 indicating more than 10% increase in the weighted average composite index of United Nations E-Government Index Score

Outcome (original)

Outcome (revised)

ICT made more accessible, affordable, inclusive, sustainable, and useful to remote and rural communities Public services made more citizen-centered and business-friendly through ICT

Improved accessibility, efficiency, and transparency in public service delivery through increased application of ICT, ensuring affordable access to ICT for communities and businesses

10% increase in tele-density (both in terms of individual household and shared-facility tele-centers) and 10% reduction in communication cost in project areas, within 3 years after project completion

10% increase in tele-density (both in terms of individual household and shared-facility tele-centers) and 10% reduction in communication cost in project areas, within 3 years after project completion (no change)

Achieved: The project has achieved more than 10% increase in tele-density (tele-density at individual level increase from 21.65% to 142.63% between 2014 and 2017) and 10% reduction in communication cost within 3 years. The payment of bandwidth and service charges of all telecom operators was NRs263,781,606 in the month of August 2014 while it was only NRs37,487,718 for the same services in October 2018 which is about

Appendix 1 17

86% reduction) (footnote 24).b

Financially and technically sustainable tele-center and wireless network operations of rural ISPs, within 3 years after project completion

Financially and technically sustainable tele-center and wireless network operations of rural ISPs within 3 years after project completion (no change)

Achieved: Tele-center and wireless network service providers have been registered and operating since 2009. Mobile data is accessible in all districts including rural areas in the country.c

20% increase in satisfaction with access and use of services (health, education, remittance, and government services) in rural communities and among businesspeople in 38 districts, within 3 years after project completion

20% increase in satisfaction with access and use of services (health, education, remittance, and government services) in rural communities and among businesspeople in 38 districts by 2015

Achieved: The survey conducted for this PCR in 2020 reveals that there has been about 50% increase in satisfaction with access and use of e-services.d

10% yearly increase in the ratio of online to over-the-counter government services, within 3 years after project completion

10% increase in the ratio of e-government service users to over-the-counter existing government services affected by the Project by 2015

Achieved: Among 131 land revenue offices, 108 land revenue offices are currently running LRIMS application and 20 land revenue offices are currently running paper (traditional) based application. There has been more than 10% increase in ratio of e-government service users (in case of LRIMS) to over-the-counter services.e

10% increase in government service efficiency, within 3 years after project completion

10% decrease in processing days required for the government services contributed by e-governance applications pertaining to the

Achieved: In the case of LRIMS, more than 10% decrease in processing days required to obtain land certificate (reduced from average of 4 days to average of 3 days).f

18 Appendix 1

project component by 2015

10% reduction in transaction costs to citizens for government services affected by the Project, within 3 years after project completion

10% decrease in cost of transactions, using Standard Cost Model, in accessing government services contributed by e-governance applications pertaining to the project component by 2015.g

Achieved: Although baseline data and required parameters were not available to estimate the standard cost, the survey conducted for this PCR in 2020 indicates that there has been around 40% decrease in cost of transaction to obtain EDL.d

10% increase in job and business opportunities in the ICT industry, within 3 years after project completion

Dropped

Outputs (original)

Outputs (revised)

1. Voice and broadband Internet connectivity through WiFi technology and tele-centers in all 75 districts in the country

Dropped

WiFi broadband network and telecenters to be put up and tested initially in three districts—one each from the hill, mountain, and terai districts—within 2 years after the start of the Project

Dropped

Rural network operation and business model, as well as the related policy, legal, and regulatory framework, to be established in the remaining districts in the country after pilot-testing, within 3 years after the start of the Project

Dropped

Appendix 1 19

WiFi broadband network and telecenters to be expanded and operated in the remaining 35 districts

Dropped

,ml,;.2. E-government framework and data infrastructure

1. E-government framework and data infrastructure (no change)

Enterprise architecture to be developed and adapted by the Government as the standard framework for e-government applications, within 1 year after the start of the project

Enterprise architecture to be developed and adapted by the government as the standard framework for e-government applications by 2014

Achieved with delay: Enterprise architecture developed and adopted by the government as the standard framework for e-government application in February 2015 by the cabinet. The guidelines directed that all the services of e-Government applications should be interoperable and provided through one stop national portal in line with adhering the GEA and NEGIF standard.

GIDC to be established within 1 year after the start of the Project

GIDC to be strengthened by December 2013

Achieved with delay: GIDC was strengthened by installment of RDBMS (oracle enterprise), data storage system, data security system and other software and equipment that specially enhanced the capacity of data storage and data management, and was operationalized in 2015.

Government groupware comprising the principal functions of e-mail, document management, calendaring and scheduling, and conferencing and meetings, to be developed

Government groupware comprising the principal functions of e-mail, document management, calendaring and scheduling, and conferencing and meetings, to be

Achieved with delay: The groupware application was customized in line with government procedure and installed in the GIDC in 2015. Document Management System and e-mail system was implemented

20 Appendix 1

within 2 years after the start of the Project

developed by 2014

and operated in NITC. Video conferencing device were installed in more than 40 government institutions including ministries, constitutional bodies and departments.

NIDS to be developed as a central database to share identification information commonly required for public administration and services, within 2 years after the start of the Project

Pilot Phase of the NIDS, which is to be developed as a central database to share identification information required for public administration and services by 2014.

Achieved with delay: Implementation of the pilot NIDS was completed on 31 Dec 2018 with live enrollment of the data, personalization and issuance of NID cards.

3. E-citizen services and applications for driver’s license and land registration

2. E-Citizen services and applications for driver’s license and land registration (no change)

Information and record management systems to be enhanced or developed as new systems for land and vehicle registration and licensing, and for government personnel information, within 3 years after the start of the Project

Information and records management system enhanced through development of e-governance application for land records management and service delivery by 2014

Achieved with delay: The LRIMS was rolled out in 2 LROs in 2015, and in 14 LROs by 2017. The government implemented LRIMS in 54 LROs in 2018 and all 131 LROs before the PCR mission in 2020.

Information and records management system enhanced through development of e-governance application for vehicle registration and license issuance by 2014

Achieved with delay: Pilot launch of the EDL system done on 30 Nov 2015; and put into operation in all 16 DOTM offices. Vehicle registration system was developed but not rolled out.h

Government personnel management and information system enhanced

Achieved with delay: The PSRMS system is developed and external portal launched on 8 April 2015. The system is

Appendix 1 21

through design and implementation of web-based public service recruitment management system, by end of July 2014

functioning properly in all Public Service Commissions.

Portal sites to be enhanced or developed as new systems, including government one-stop service and village network portal, within 3 years after the start of the project

Dropped

4. Nationwide human resources development for e-government and ICT

3. Nationwide human resources development for e-government and ICT(no change)

Awareness building and training to be provided to the communities and governments affected by the Project, during project implementation

Awareness building and training to be provided to government personnel affected by the Project, during project implementation (no change)

Achieved: 118 trainings were conducted with 3,821 participants as of 31 August 2015. 10 training labs were established and 6 were strengthened and established in 2013.

10% of government personnel trained should be female (added)

Achieved: A total of 3,821 personnel were trained, comprising 3,385 males and 436 females (11.4%).

ICT infrastructure, curriculum, and materials to be provided to civil servant training institutions, within 1 year after the start of the Project

ICT infrastructure, curriculum, and materials to be provided to civil servant training institutions, by 2014

Achieved: Curriculum and materials provided to 16 civil servant training institutions by 2015. New computers and equipment were also provided.

Academic courses in e-governance to be developed in cooperation with universities and colleges, within 2 years after the

Dropped

22 Appendix 1

start of the Project

5. National ICT operating policies and guidelines to ensure interoperability with online technologies of government, business, and the broader community

4. National ICT operating policies and guidelines to ensure interoperability with online technologies of government, business, and the broader community (no change)

National ICT operating policies and guidelines to be developed and endorsed by the Government, within 1 year after the start of the Project

National ICT operating policies and guidelines to be developed and endorsed by the government by 2014

Achieved with delay: The National ICT Operating Policy for GEA and NEGIF approved by the Cabinet on 22 February 2015.

DOTM = Department of Transportation and Management, EDL = Electronic Driving License, GEA = Government Enterprises Architecture, GIDC = Government Infrastructure Data Center, ICT = Information Communication Technology, ISP = internet service provider, LRIMS: Land Revenue Information Management System, LROs = Land Revenue Offices, NEGIF: Nepal Government Interoperability Framework, NID = National Identification, NIDS = National Identification System, NITC = National Information Technology Center, PCR = project completion report, PSRMS = Public Service Recruitment Management System, WiFi = Wireless Fidelity. Notes: a During the midterm review, several DMF outcomes and output indicators were revised to make them clearer and

measurable. The first output (rural e-community component) of the original DMF was dropped. Due to the delay in the initial phase of the project the component became redundant. as the government had already implemented the activities with its own resources.

b The increase in tele-density and reduction in communication cost is mainly due to the efforts of the government to extend and promote the telecommunication in the country.

c Among 11 registered rural ISPs, six are in operation in the country. d Please refer to the Appendix 7. The survey was conducted by the ADB consultant (economist) in 2020. e Not able to assess for other e-service applications since the government services have been 100% transferred to the

e-service application. f The number of processing days depends on the complexity of land transaction cases. If there are no issues at all and

everything is in the right order, the processing can be completed within one day. However, on average, it is noted that it takes about 3 days to issue the land certification to beneficiaries. Please refer to Appendix 7.

g Since there was no information recorded by the Implementing Agencies, the Standard Cost Model could not be estimated.

h The Vehicle Registration System development was included in project scope with the assumption that the government will roll out.

Source: Asian Development Bank.

Appendix 2 23

PROJECT COST AT APPRAISAL AND ACTUAL ($ Million)

Table A2: Project cost at appraisal and actual

Appraisal Estimate Actual

Item Foreign

Exchange Local

Currency Total Cost Foreign

Exchange Local

Currency Total Cost A. Base Cost 1. Rural e-Community 7.90 1.00 9.00 0.00 0.00 0.00 2. Government Network 3.70 0.70 4.40 6.66 0.27 6.93 3. e-Government Applications 11.00 1.80 12.80 14.86 1.29 16.15 4. Human Resources Development* 1.50 0.00 1.50 1.52 0.75 2.27

5. Project Management Consultant 0.70 0.00 0.70 0.20 0.72 0.92 1. Office Equipment 0.00 0.00 0.00 0.05 0.27 0.32

Subtotal (A) 24.80 3.50 28.30 23.29 3.30 26.59 B. Contingencies 1. Physical 2.60 0.00 2.60 0.00 0.00 0.00 2. Price 0.30 0.00 0.30 0.00 0.00 0.00

Subtotal (B) 2.90 0.00 2.90 0.00 0.00 0.00 Total (A+B) 27.70 3.50 31.20 23.29 3.30 26.59

Notes: Numbers may not sum precisely because of rounding. Source: Asian Development Bank estimates.

24 Appendix 3

PROJECT COST BY FINANCIER ($ Million)

Table A3.1: Project Cost at Appraisal by Financier

ADB

Government Total Costa

Amount % of Cost Category Amount

% of Cost Category Amount

Taxes and Duties

Item {A} {A/D} {B} {B/D} {D} {E} A. Base Cost

1. Rural e-Community 7.90 89% 1.00 00% 7.90 1.00 2. Government Network 3.70 83% 0.70 00% 3.70 0.70 3. e-Government Applications 11.00 86% 1.80 00% 11.00 1.80 4. Human Resources Development 1.50 100% 0.00 00% 1.50 0.00

5.Project Management Consultant 0.70 100% 0.00 00% 0.70 0.00 Subtotal (A) 24.80 88% 3.50 12% 24.80 3.50

B. Contingencies 1.Physical 0.20 7% 2.40 93% 2.60 0.00 2.Price 0.00 0% 0.30 100% 0.30 0.00 Subtotal (B)

0.20 7% 2.70 93% 2.90 0.00

Total Project Cost (A+B) 25.00 80% 6.20 20% 27.70 3.50

Note: Numbers may not sum precisely because of rounding. Source: Asian Development Bank.

* Human Resource Development includes expenditure made under Project Administration budget heading of the government; financed fully by the government.

Appendix 3 25

Table A3.2: Project Cost at Completion by Financier ($ Million)

ADB

Government Total Costa

Amount % of Cost Category Amount

% of Cost Category Amount

Taxes and Duties

Item {A} {A/D} {B} {B/D} {D} {E} A. Base Cost

1. Rural e-Community - - - - - 2. Government Network 6.66 96% 0.27 4% 6.58 0.35 3. e-Government Applications 12.59 78% 3.56 22% 15.34 0.81 4. Human Resources Development* 1.07 47% 1.20 53% 2.11 0.16

5.Project Management Consultant 0.80 87% 0.12 13% 0.80 0.12 6.Office Equipment 0.23 72% 0.09 28 % 0.28 0.04

Subtotal (A) 21.35 80% 5.24 20% 25.12 1.47 B. Contingencies

1.Physical 0.00 00% 0.00 00% 0.00 0.00 2.Price 0.00 00% 0.00 00% 0.00 0.00 Subtotal (B)

0.00 00% 0.00 00% 0.00 0.00

Total Project Cost (A+B) 21.35 80% 5.24 20% 25.12 1.47

Note: Numbers may not sum precisely because of rounding. Source: Asian Development Bank. * Human Resource Development includes expenditure made under Project Administration budget heading of the government; financed fully by

the government.

26 Appendix 4

DISBURSEMENT OF GRANT AND GRANT PROCEEDS

Table A4.1: Annual and Cumulative Disbursement of ADB Grant Proceedsa ($ million)

Annual Disbursement Cumulative Disbursement

Year Amount

($ million) % of Total Amount ($ million) % of Total

2009 - - - -

2010 0.34 2% 0.34 2%

2011 0.83 4% 1.16 5% 2012 0.56 3% 1.72 8% 2013 5.84 27% 7.55 35% 2014 1.60 7% 9.15 43% 2015 2.94 14% 12.09 57% 2016 1.32 6% 13.41 63% 2017 4.38 21% 17.78 83% 2018 1.64 8% 19.43 91% 2019 1.92 9% 21.35 100% Total 21.35 100% 21.35 100%

Note: Numbers may not sum precisely because of rounding. a Includes disbursements to advance accounts. Source: Asian Development Bank.

Figure A4.1: Projection and Cumulative Disbursement of ADB Grant Proceeds ($ million

0

5

10

15

20

25

30

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

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Appendix 5 27

CONTRACT AWARDS OF GRANT AND GRANT PROCEEDS

Table A5.1: Annual and Cumulative Contract Awards of ADB Grant Proceeds

Annual Contract Awards Cumulative Contract Awards

Yeara Amount ($ million) % of Total

Amount ($ million) % of Total

2009 - - - - 2010 2.09 10% 2.09 10% 2011 5.85 27% 7.94 37% 2012 - - 7.94 37% 2013 4.24 20% 12.18 57% 2014 1.23 6% 13.41 63% 2015 0.26 1% 13.67 64% 2016 5.85 27% 19.52 91% 2017 1.77 8% 21.29 100% 2018 0.04 0% 21.33 100% 2019 0.02 0% 21.35 100% Total 21.35 100% 21.35 100%

Note: Numbers may not sum precisely because of rounding. a Classified by contract signing dates. Source: Asian Development Bank.

Figure A5.1: Projection and Cumulative Contract Awards of ADB Grant Proceeds ($ million)

0

5

10

15

20

25

30

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Cu

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Projection and Cumulative Contract Awards of ADB Loan Proceeds

Projection Actual

28 Appendix 6

STATUS OF COMPLIANCE WITH GRANT COVENANTS

Covenant

Reference in Grant

Agreement

Status of Compliance Implementation Arrangements As the executing agency, OPMCM shall be responsible for overall implementation and coordination of the Project. Project Management Unit Within one month of the Effective Date, the PMU shall be established under the EA and shall comprise at least a Chief Project Director, a Project Director who shall be the joint secretary from OPMCM to be responsible for administrative aspects and another Project Director who shall be the Executive Director of the NITC, to be responsible for technical aspects, and a treasurer. The Chief Project Director shall have overall responsibility for Project management. The PMU shall be supported by PMC who shall provide technical inputs for appropriate supervision of Project implementation.

Schedule 4, Para. 1 and 2.

Complied. OPMCM remained as EA for the project and led overall implementation and coordination of the Project. PMU was established under OPMCM headed by the Joint Secretary and the Under Secretary. However, the PMC contract was closed from 15 March 2013.

Implementation Agencies Parts of the Project shall be implemented by respective Implementing Agencies (implementing agencies):

(i) MOIC shall be the implementing agency for Part 1;

(ii) MOEST shall be the implementing agency for Part 2;

(iii) HLCIT shall be the implementing agency for Part 3 (i);

(iv) MOH shall be the implementing agency for Part 3 (ii);

(v) PS Commission shall be the implementing agency for Part 3 (iii);

(vi) MOLRM shall be the implementing agency for Part 3 (iv);

(vii) MOLTM shall be the implementing agency for Part 3 (v);

(viii) MOFAGA for Part 4.

Schedule 4, Para.3.

Complied. NITC, PSC, DOLRM, DOTM, MOFAGA and PSC under their corresponding line ministries remained implementing agencies for the respective component of the grant.

Project Implementation Unit Within one month of the Effective Date, the Recipient shall cause the following PIUs to be established by the following Ministries as below:

(i) MOEST shall designate NITC as PIU for Part 2;

Schedule., Paras. 4 and 5 and 6.

Complied. Executing agency and implementing agencies headed by the Project Manager were established, staffed and operated as per the project requirements.

Appendix 6 29

Covenant

Reference in Grant

Agreement

Status of Compliance (ii) MOLRM shall designate the Department of

Land Reforms and Management as a PIU for Part 3 (iv); and

(iii) MOLTM shall designate the Department of Transport as PIU for Part 3 (v).

For other Parts of the Project, the respective implementing agencies shall establish a PIU headed by a Project Manager. The PIU shall (i) coordinate with the contractors and monitor the progress of day-to-day management and implementation; (ii) prepare withdrawals applications to submit to the PMU under the executing agency for endorsement; (iii) prepare monthly progress reports to submit to the PMU under the executing agency; (iv) be responsible for procurement; and (v) maintain Project accounts and prepare the annual reports. Project Steering Committee Within one month of the Effective Date, the Recipient shall cause the Project Steering Committee to be established to provide overall supervision on Project implementation and coordinate issues related to Project implementation. The PSC shall be chaired by the Chief Secretary, shall have the Chief Project Director acting as a vice Chairman and the Executive Director of NITC as a secretary. The PSC shall comprise the Secretary of MOIC and MOEST in addition to the member Secretary of HLCIT. The PSC shall meet on a regular basis, at least twice a year, or more as necessary. The PSC shall set the direction for overall Project implementation, provide guidance to the PMU on specific Project implementation issues and resolve any controversies between PIUs.

Partly complied. The Project Steering Committee was formed but the meeting was not held regularly. This was due to a number of interruptions at senior government level due to political changes.

Wireless broadband network The Recipient shall cause the executing to build the wireless broadband network in a phased manner over the Project implementation period. During the first year of implementation, the network shall be pilot tested in three selected districts to establish its ownership and operation modality. During the second year of Project implementation, the pilot testing shall be expanded to 10 more districts. During the third year of Project implementation, the network shall be expanded to 25 districts, applying established ownership and operation modality. Each phase network shall be extended to further remote areas one year after its operation.

Schedule 4, Para.7.

Waived though minor change in scope memo dated 12 Feb 2013 due to cancellation of Component 1 from the project.

30 Appendix 6

Covenant

Reference in Grant

Agreement

Status of Compliance Telecenters The Recipient shall cause the agency to build and operate the Telecenters in step with the wireless broadband network expansion over a period of four years after the Effective Date.

Schedule 4, Para. 8.

Waived though minor change in scope memo dated 12 Feb 2013 due to cancellation of Component 1 from the project.

Government Network: The Recipient shall develop, install, test, and commission the Government's network, e-government applications, and human resource development Parts in three years after the award of contracts.

Schedule 4, Para.9.

Complied with some implementation delay except for the VRS developed under DOTM. The system was developed as per the project scope, but the PIU did not act proactively for its timely roll out. The VRS development was included in the project scope with the assumption that the government will roll out.

Counterpart Funding The Recipient shall ensure that, throughout implementation of the Project, adequate budgetary allocations for the required counterpart funds are made, approved, and released in a timely manner to ensure efficient and timely implementation of the Project.

Schedule 4, Para.10.

Complied. The counterpart funds were made available on a timely basis.

Security The Recipient shall make its best effort to provide adequate security for the smooth and uninterrupted implementation of the Project.

Schedule 4, Para.11.

Complied. Government provided adequate security for the smooth and uninterrupted implementation of the Project.

VOIP Service Provision The Recipient shall fully liberalize VOIP service on a district-by-district basis following the spread of the wireless broadband networks of the Project so that rural ISPs in concerned districts can interconnect with telephones and cellular mobile services of the incumbent operator to promote implementation of broadband internet which offers multiple service integration through a single network.

Schedule 4, Para.12.

Waived though minor change in scope memo dated 12 Feb 2013 due to cancellation of Component 1 from the project.

e-Government Operation Policies and Guidelines The Recipient shall prepare and issue the e-government operation policies and guidelines for the common enterprise architecture to be developed under the Project and to be adopted as the Recipient’s standards for e-government applications. Within six months after awarding the contract for development of enterprise architecture application, the e-government developed under the Project shall be followed for further development of e-government

Schedule 4, Para.13.

Complied. The National ICT Operating Policy for GEA and NEGIF was approved through Cabinet decision of 22 February 2015. Government e-architecture prepared. GIDC established and national portal launched. The e-government applications were developed under the project

Appendix 6 31

Covenant

Reference in Grant

Agreement

Status of Compliance applications for establishing the interoperability among Recipient’s ICT systems.

following the approved policy and framework.

Land Acquisition and Resettlement The Recipient shall ensure that the equipment for wireless broadband network is co-located with Nepal Telecoms’ tower facilities whenever required, and that Telecenters are housed on the existing land of the Recipient. In the event of (i) any unanticipated or unforeseen involuntary resettlement; (ii) land acquisition; and (iii) resettlement activities during Project implementation, the Recipient shall ensure that the Project is implemented in accordance with ADB’s Involuntary Resettlement Policy (1995) and in accordance with all applicable laws and regulations of the Recipient.

Schedule 4, Para.14.

Waived though minor change in scope memo dated 12 Feb 2013 due to cancellation of Component 1 from the project.

Environmental Protection The Recipient shall ensure that any unexpected negative environmental impact is addressed in accordance with ADB’s environmental requirements. The Recipient shall ensure that the construction of the data center is carried out by taking into account the recommendations from the IEE and by strictly following the conditions attached in the building permit. The Recipient shall ensure that the Project is implemented in compliance with ADB’s Environment Policy (2002), and the Recipient’s Environment Protection Act, (1997) and the Environment Protection Regulation (1998).

Schedule 4, Para.15.

Complied. No adverse environmental impact observed during implementation as the project mainly contributed for development and roll out of the ICT based systems for the public service delivery and capacity building of the concerned government agencies on ICT.

Labor Laws The Recipient shall ensure that all Works, system development and installation contractors (i) comply with all applicable labor laws of the Recipient; (ii) do not employ child labor for construction and maintenance activities; (iii) do not differentiate wages between men and women particularly for work of equal value; (iv) encourage employment of the local poor who meet the job and efficiency requirements, particularly women, dalits, indigenous/ ethnic communities and other disadvantaged groups; and (v) provide timely payment of wages on at least a monthly basis and safe working conditions to all workers. All civil works contracts shall include specific clauses on these undertakings.

Schedule 4, Para.16.

Complied. Contract documents included appropriate provisions on Labor Laws. Grant review missions regularly monitored and ensured compliance to these provisions by the EA and implementing agencies.

Good Governance and Anticorruption Consistent with ADB’s and with the Recipient’s commitment to good governance, accountability and transparency, the Recipient shall ensure that the Project funds are utilized effectively and efficiently to

Schedule 4, Para 17.

Complied but with delays. Relevant provisions of ADB's Anticorruption Policy were included in all bidding documents for the Project.

32 Appendix 6

Covenant

Reference in Grant

Agreement

Status of Compliance implement the Project and to achieve the Project objectives. The Recipient shall (i) undertake necessary measures to create and sustain a corruption-free environment; (ii) ensure that the Recipient’s Anticorruption Law and ADB’s Anticorruption Policy (1998, as amended to date), are strictly enforced and are being complied with during Project implementation, and that relevant provisions of ADB’s Anticorruption Policy are included in all bidding documents for the Project; (iii) facilitate in ADB’s exercise of its right to investigate, directly or through its agents, any alleged corrupt, fraudulent, collusive or coercive practices relating to the Project; (iv) conduct periodic inspections on the Project contractor’s activities related to fund withdrawals and settlements; and (v) ensure that all contracts financed by ADB in connection with the Project include provisions specifying the right of ADB to audit and examine Project related the records and accounts of the executing agency and all contractors, suppliers, consultants and other service providers. The Recipient shall cooperate with any audit and investigation and extend necessary assistance, including access to all relevant books and records, as well as engagement of independent auditors and experts that may be needed for satisfactory completion of such audits and investigations.

The project furnished all requested documents to the Controller Department of ADB for completing the Statement of Expenditure Review Process. The EA submitted project financial statement audited by the Office of Auditor General of Nepal for all fiscal years during the project implementation. The overall financial management of the project with status of funds utilization and audit reports were reviewed during project review missions and also discussed during regular project progress review meetings.

Project Implementation Reporting The Recipient shall cause OPMCM to submit to ADB (i) a monthly progress report, (ii) a summary for monthly progress review meeting with implementing agencies and contractors concerned, and (iii) a quarterly Project progress report and quarterly Project performance monitoring and evaluation report.

Schedule 4, Para.18.

Partially complied. Executing agency submitted monthly progress report till July 2013 and quarterly progress report up to 2016. Quarterly progress report was not submitted on a regular basis after 2017, as there was little activity.

Project Performance Monitoring System (PPMS) Within three months of the Effective Date, the Recipient shall cause the PMU to establish a PPMS in a manner acceptable to ADB.

Schedule 4, Para. 19.

Partially complied. The Standard Cost Model was devised as a form of PPMS although it does not capture the full function of PPMS. No clear guidelines exist on how the data that feed into the standard cost model will be collected and who will be responsible to collect such data. No baseline data was collected in the early phase of the project.

Appendix 6 33

Covenant

Reference in Grant

Agreement

Status of Compliance

Project Review The Recipient shall carry joint review missions with ADB on a semi-annual basis. On the third year of Project implementation, the Recipient and ADB shall carry a joint MTR of the Project to (i) review progress, Project implementation schedule, implementation arrangements, and compliance with the terms of the Grant Agreement; and (ii) identify any necessary changes in the Project design. Within three months of the end of Project implementation, the Recipient and ADB shall carry a joint comprehensive Project completion review.

Schedule 4, Para. 20.

Complied. The executing agency, implementing agencies and ADB conducted joint grant review missions on a semi-annual basis. MTR mission was fielded from 17 to 28 September 2012. The review missions were continued up to 2018, after completion of major project activities. The PCR mission was conducted in September 2020.

Imprest Account; Statement of Expenditures (a) Except as ADB may otherwise agree, the Recipient shall establish immediately after the Effective Date, an imprest account at commercial bank acceptable to ADB for Part 4. The imprest account shall be established, managed, replenished and liquidated in accordance with ADB's Loan Disbursement Handbook and detailed arrangements agreed upon between the Recipient and ADB. The currency of the imprest account shall be Dollar. The initial amount to be deposited into imprest account shall not exceed the lower of (i) the estimated expenditure to be financed from the imprest account for the first 6 months of Project implementation, or (ii) the equivalent of 10% of the Part 4 amount. (b) The statement of expenditures procedure may be used for reimbursement of eligible expenditures and to liquidate advances provided into the imprest account, in accordance with ADB's Loan Disbursement Handbook and detailed arrangements agreed upon by the Recipient and ADB. Any individual payment to be reimbursed or liquidated under the SOE procedure shall not exceed the equivalent of $3,000.

Schedule 2, Para. 5.

Complied. The executing agency had established separate imprest account at the Nepal Rastra Bank (the Central Bank of Nepal) in US Dollar. Initial Deposit of the imprest/advance amount was $150,000 and it was established on 20 Mar 2013. Imprest account remained useful for covering the training related expenditure under the MOFAGA. SOE was used for reimbursement of eligible expenditures and to liquidate advances provided into the imprest account. ADB’s Loan Disbursement Handbook was followed for reimbursement and replenishment of the eligible expenditure made by the executing agency /implementing agencies.

Selection of Consulting Services Quality- and Cost-Based Selection. Except as ADB may otherwise agree, the Recipient shall apply quality- and cost-based selection for selecting and engaging consulting services.

Schedule 3, Para.7.

Complied. A consulting firm (Project Management Consultant) was recruited following Quality and cost-based selection. The firm was mobilized since 15 March 2010 to support EA for project management.

34 Appendix 6

Covenant

Reference in Grant

Agreement

Status of Compliance Particular Covenants The Recipient shall (i) maintain, or cause to be maintained, separate accounts for the Project; (ii) have such accounts and related financial statements audited annually, in accordance with appropriate auditing standards consistently applied, by independent auditors whose qualifications, experience and terms of reference are acceptable to ADB; (iii) furnish to ADB, as soon as available but in any event not later than 6 months after the end of each related fiscal year, certified copies of such audited accounts and financial statements and the report of the auditors relating thereto (including the auditors' opinion on the use the Grant proceeds and compliance with the financial covenants of the Grant Agreement as well as on the use of the procedures for imprest account/statement of expenditures), all in the English language; and (iv) furnish to ADB such other information concerning such accounts and financial statements and the audit thereof as ADB shall from time to time reasonably request.

Article IV, Section 4.02.

Complied, but with delays. Separate books of account (Financial statements) were maintained by the Executing Agency and implementing agencies. These financial statements were audited annually following government accounting policies and relevant practices in INTOSAI auditing principles. 4 out of 9 APFS reports were submitted within their timeline, the delayed ones had an average delay of 1.18 months. Specific audit opinions on utilization of funds, use of SOE procedures and advance account procedures were provided by the auditors.

The Recipient shall enable ADB's representatives to inspect the Project, the Goods financed out of the proceeds of the Grant, and any relevant records and documents.

Section 4.03.

Complied. The Recipient allowed ADB’s representatives to inspect the Project, the Goods financed out of the proceeds of the Grant, and any relevant records and documents as and when needed.

Appendix 7 35

ECONOMIC ANALYSIS

A. Project Beneficiaries

1. The ICT Development Project aims to improve accessibility, efficiency, and transparency in public service delivery in the country. The project specifically focuses on strengthening the e-government framework and data infrastructure; establishing and promoting the e-citizen services and applications on pilot basis for driver’s license and land registration; preparing nationwide human resources development for implementing e-government and ICT; and developing and endorsing the national ICT operating policies and guidelines. The project is likely to benefit all the citizens of the country through increasing their convenience, saving time and transportation cost, and through efficient management of nation’s resources and effective governance. The project is likely to create major positive spillover and multiplier effects over the various sectors of economy. B. Economic Analysis of e-government applications: Approach and Methodology 2. The economic analysis and efficiency re-evaluation of the Project is based on ADB’s Guidelines for the Evaluation of Public Sector Operations, 2016 (amended from time to time), and Guidelines for the Economic Analysis of Projects, 2017 (amended from time to time). The economic analysis primarily focuses on the second component of the project i.e. e-citizen services and application whose benefit can be measured and quantified. It included the EDLRS, PSRMS, LRIMS and National Identification Card System that were successfully piloted and launched at the national level in the country. Since the approximate benefit of the first component (e-government framework and data infrastructure) and the third component (Nationwide human resources development for implementing e-government and ICT) could not be monetized, its benefits were assessed qualitatively. The first component has facilitated the e-government applications and supported the government in its digitization efforts. With the improved government network connection, the decision making has been improved with real-time information flow, and able to monitor the cost of government activities leading to increase transparency and efficiency; wider availability of information and data harmonized across all layers and agencies of government, and more effective inter-agency and intra-agency communication. The third component has led to effective implementation of the e-government services and applications. As there are several potential indirect and non-quantifiable benefits of the first and third components and positively influences the implementation of the second component, the economic returns estimated accounting only the second component is expected to be downward biased. 3. The face-to-face as well as mail survey was conducted with the selected staffs from implementing agencies involved in implementing the project. Several assumptions for the economic analysis is based from the survey findings (Table A7.1). The additional benefits from accessing the e-government services were estimated while calculating the EIRR; thus comparing the “with-Project” and “without-Project” scenario. The economic life of the project was assumed to be 15 years with no residual value considering the cost element of each sub-component. All the economic values are expressed in real prices. All the goods and services are treated as non-tradable and thus standard conversion factor of 0.9 has been applied for actual capital investment, operation and maintenance cost to convert in to economic cost. A 12 percent discount rate was used as an opportunity cost of capital investment and the net present values was estimated accordingly. The survey reveals that there has been about 50% increase in satisfaction with access and use of e-services. The nature of the benefits and assumption used for estimating the benefits from the access to e-government services considered for the EIRR estimation are discussed below:

36 Appendix 7

4. National Identity Card System: The benefits for being able to access core personal ID data (such as ID card number, name, complete address, data and place of birth, gender and parents’ names) from the DONIDCR are enormous. The three parameters are considered for the economic analysis: (i) the time savings realized from accessing and using the personal ID records from the national ID register; (ii) the potential maximum use that can be made of the application; and (iii) the initial use made of the application and the rate at which its use will grow toward full potential. The benefits of the National Identity Card application can be fully realized only once the government makes it mandatory to receive government services and other public services. The analysis assumes this case and further assumes all non-government agencies to link into the NID Card data base. The beneficiaries of this greater efficiency are all the citizens of the nation.1 5. The initial use of the ID data base by the various agencies will depend on the quality and design of the application, the training provided to those who will use the application, the quality of preparation prior to generalized introduction, and the level of commitment of the government toward effective introduction of this application. It is considered that, even under the best circumstances, full maximum implementation of the application will not be achieved during the initial years. The time savings are estimated at a total of 60 minutes per interaction/transaction. The hourly time cost of government personnel whose time is saved in the process is estimated as per their annual salary. 6. The maximum potential usage of NID depends on (i) the government and non-government agencies that are linked to the National Identity Card application, and (ii) the number of functions and applications in these agencies that require basic NID Card Information. The agencies that have been considered in this analysis are from various sectors i.e. immigration, revenue, customs, national security, education, finance, health, labor, justice, transport and among others. On this basis, the number of instances where the various agencies would access the core NID Card information from the National ID Card database was estimated at 28 million annually.

7. Land Reform Information Management System (LRIMS): Improving information management within land records management offices across the country and linking it into the government network will not only reduce operation costs of the land revenue offices through increased efficiency but also enhance quality of services people received by enabling them to save their time to acquire land ownership document (Dhanipurja). The potential efficiency arising from use of ICT within district land revenue offices include (i) integrated land registration system; (ii) instant availability of land ownership document (Dhanipurja); (iii) reduction in unnecessary verification process (iv) reduction in fraud land ownership transfer activities (v) improved public services; (vi) enhanced real estate businesses through improved services at land revenue offices; (vii) elimination of paper; and (viii) detailed real-time information available by Department of Land Management and Archive. These efficiencies translate into time savings of government officials as well as of service receivers. These are the direct benefits being accounted while estimating the EIRR. Other benefits that service recipients enjoy are through saving of cost and time saving to acquire land ownership documents. These benefits are considered in the analysis. 8. The time required to issue the land certificate have been derived from a survey conducted with the government officials at Department of Land Management and Archive. Surveys indicate a 25% decrease in processing days to obtain the land certificate from 4 days plus to 3 days now. About 67 percent increase in productivity of government officials has been assumed due to the access to LRIMS. There has been about 50% increase in satisfaction with access and use of e-

1 Government officials stated that months of time is being saved while locating personal data by searching paper files manually during the discussions and a survey with randomly selected respondents also reflected the same.

Appendix 7 37

services through LRIMS. The annual cost of a government officials is estimated at NRs600,000. When the full potential of productivity gains has been achieved, annual savings would amount to NRs6 million assuming that about 10 government officials are deployed in a land revenue office at district level. However not all these savings can necessarily be attributed to introduction of ICT as efficient management procedures also play an important role in improving overall efficiency. Thus, it is assumed conservatively that half of these savings can be attributed to the introduction of ICT.

9. Electronic Driving Licenses & Vehicle Registration System: Currently, obtaining a license or a renewal of a licenses may require more than one personal trip to the Transport Management Offices. At least one of such trips could be avoided through using online application. Service receivers will save the time and transport cost from avoiding the trip to Transport Management Offices. The key parameters considered for the economic analysis are (i) potential maximum number of transactions that could be done in a day by an official; (ii) number of driving licenses that would be distributed in initial years following the launch of the application, and its growth in subsequent years realizing the full potential; and (iii) the unit savings in terms of time and travel costs for service recipients. The maximum potential number of transactions is the total number of licenses to be issued and registrations being done annually. A survey revealed that more than 2 million electronic driving licenses have been printed and issued as of fiscal year 2019/20 since the launch of the application. 10. The number of transactions and the amount of time saved while carrying out these transactions have been estimated based on survey results. A survey conducted with officials from DOTM indicates that 70 percent time is being saved per transactions where it used to take 15 days for one license to be issued when operated manually. It is assumed that in the first-year, 20 percent of trips associated with licenses would be avoided. Survey indicates the 40% decrease in cost of transaction to obtain EDL. Overall, the increase in savings of trip over years further depends on the continued commitment from the government to fully digitize electronic driving licenses. 11. The time and transport cost savings have been developed for service receivers. For Kathmandu residents, the travel time that can be saved by avoiding more trips to Transport Management Offices is around two hours and the time cost is NRs125 per hour based on average daily wage of blue-collar jobs. The key parameters for the estimation of the time cost savings are (i) average travel distance to Transport Management Officers; (ii) average total trip duration; and (iii) opportunity cost of time saved by licenses acquirer.

12. Public Service Recruitment Management System (PSRMS): The system has provided direct benefits to Public Service Commission (PSC) and perspective applicants in terms of time and cost savings.2 The potential efficiencies arising from use of ICT for application process include (i) an integrated application process for entire public service in the country; (ii) perspective applicant being able to apply for the position from any part of the country – this means that any citizen who meets requirement for a particular position can apply;3 (iii) saving of travel time and transport cost by applicant (iv) saving of paper cost via use of e-application forms. These are the direct benefits that are being reflected in this economic analysis.

2 Public Service Commission (PSC) does the initial scrutiny of the applications online, which helps it to save time and

scarce human resources. 3 Survey indicated that there has been 60 percent increment in application numbers since the launch of application.

38 Appendix 7

C. Results 13. Table A7.2 shows the aggregated EIRR of the selective components of the Project. The total costs include the investment, operating and maintenance costs related to the e-government application component. The total benefits account the savings in different forms such as time, transportation costs, paper wastage and efficiency gain. The overall EIRR of the project is re-calculated at 23.2%. The Net Present Value (NPV) is positive and estimated to be $3,851,947.0. The positive NPV and the EIRR of higher than 12% indicates the project is economically viable. The EIRRs were also estimated for each e-government application. The PSC yields the highest EIRR (30%) followed by the LRIMS (29.5%) DONIDCR (21.5%) and EDLS (15.7%) (Tables A7.3-A7.6). D. Sensitivity Analysis 14. Sensitive analysis was conducted to assess whether the economic viability of the project is likely to be affected by the adverse changes in the factors that are critical to economic returns of the project. The effects of three adverse variations (increase in operation cost by 20%; increase in operation and maintenance cost by 20%; and increase in operation cost by 20% and reduction in benefit by 20%) has been tested to examine the changes in EIRR and ENPV of the project (Table A7.7). The project is viable only at increase in operation and maintenance cost by 20%. However, at the lower adverse variations (changes of 10%), the project is economically viable in all above scenarios.

Appendix 7 39

Table A7.1: Assumptions of Benefit Calculations

Public Service Commission Applicants' Savings Travel Time Savings An applicant is able to save a total of five hours with the availability of

online application for public service jobs. Using NRs145 wage rate per hour, an applicant saves a total of NRs725. Assuming that the maximum number of applicants are skilled labor force.

Transport Cost Savings An applicant saves NRs200 since he/she doesn't have to travel to drop application. This amount is assumed conservatively taking an applicant travels locally to drop an application.

PSC's Savings Paper Cost Savings A total of 10 pages of paper will be saved and their printing/photocopy

cost would be NRs5. Thus, PSC saves NRs50 per application. Salary Savings A skilled PSC official saves a total of 2 hours as the application has in-

built feature to collect and process application to a certain level. The official's monthly salary is divided by 208 assuming that he/she works 8 hours per day and 26 days per month. Department of Transport Management

Licenses Acquirers' Savings

Travel Time Savings A licenses acquirer is able to save a total of four hours as the office gives a licenses within the same day and doesn't have to travel again to go to collect licenses Using NRs125 wage rate per hour, a licenses acquirer saves a total of NRs500. Assuming that the maximum number of applicants being unskilled labor force.

Transport Cost Savings A licenses acquirer saves NRs100 since he/she can avoid travelling to Transport Management Office. This amount is assumed conservatively considering a licenses acquirer travels locally to TMO.

DOTM's Savings Paper Cost Savings A skilled DOTM official saves a total of 4 hours as all the screening and

approval process can be done digitally. The official's monthly salary is divided by 208 assuming that he/she works 8 hours per day and 26 days per month.

Salary Savings A skilled DOTM official saves a total of 4 hours as all the screening and approval process can be done digitally. The official's monthly salary is divided by 208 assuming that he/she works 8 hours per day and 26 days per month.

Department of Land Management and Archive Service Receivers' Savings

Processing Time Savings A service receiver saves 7 hours in total while acquiring Dhanipurja. Assuming NRs125 per hour wage rate, one can save a total of NRs875.

Transport Cost Savings A service receiver saves NRs40 by avoiding one more travel to Land Revenue Office.

DOLMA's Savings Paper Cost Savings DOLMA saves a total of NRs50 by avoiding printing a total of 10 pages

of paper. Salary Savings DOLMA saves 3 hours of a skilled official by approving/processing

documents digitally. By doing that, it saves NRs721.15 as salary per Dhanipurja issuance.

Department of National ID and Civil Registration Government Agencies Saving

40 Appendix 7

Database Locating Time Savings

Government agencies can save 3 hours of time to locate ID database. Since the task of locating ID database can be done with rudimentary skills, only NRs145 wage rate has been given to personnel that can save 3 hours by avoiding manually locating ID database from the archive.

Salary Savings Government agency that needs to process services can save 3 hours of skilled official by processing/approving documents digitally. Thus, any government agency can save NRs721.15 to while providing services to those with NID Card.

NIDMC's Savings Paper Cost Savings NIDMC saves a total of NRs721.15 by saving 3 hours of a skilled official. Salary Savings NIDMC saves a total of NRs721.15 by saving 3 hours of a skilled official.

Appendix 7 41

Table A7.2: Economic Internal Rate of Return of the Project

Capital Investment (In USD)

Fiscal Year

Time

ADB

GON Total Capital

Investment (in USD)

Operation & Maintenance Cost (USD)

Total Cost (in USD)

Total Economic

Benefit

Economic surplus

(Nominal Price)

Economic surplus (Real

Price)

2009/10 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

2010/11 1 120000.00 19480.92 125532.82 0.00 125532.82 0.00 -125532.82 -224165.76

2011/12 2 120000.00 19480.92 125532.82 0.00 125532.82 0.00 -125532.82 -202472.30

2012/13 3 120000.00 19480.92 125532.82 0.00 125532.82 0.00 -125532.82 -187362.43

2013/14 4 745994.00 121105.39 780389.45 786000.00 1547789.45 0.00 -1547789.45 -2120259.52

2014/15 5 839868.00 136344.99 878591.69 1110000.00 1969991.69 441558.00 -1528433.69 -1934726.19

2015/16 6 1260770.00 204674.62 1318900.16 1168860.00 2469160.16 2200538.00 -268622.16 -312351.35

2016/17 7 713197.00 115781.09 746080.28 1743017.40 2419497.68 2200538.00 -218959.68 -246022.12

2017/18 8 4444208.00 721477.04 4649116.53 1812948.97 6392465.50 2200538.00 -4191927.50 -4556442.93

2018/19 9 3157258.00 512552.33 3302829.29 2399174.37 5581403.67 4674258.00 -907145.67 -935201.72

2019/20 10 0.00 0.00 0.00 2482260.07 2361660.07 9349410.00 6987749.93 6987749.93

2020/21 11 0.00 0.00 0.00 2572823.47 2452223.47 10076910.00 7624686.53 7402608.28

2021/22 12 0.00 0.00 0.00 2671537.59 2550937.59 10804410.00 8253472.41 7860449.92

2022/23 13 0.00 0.00 0.00 2779135.97 2658535.97 10804410.00 8145874.03 7542475.96

2023/24 14 0.00 0.00 0.00 2896418.20 2775818.20 11332530.00 8556711.80 7708749.37

Total 11521295.00 1870378.21 12052505.89 22422176.04 33556081.92 64085100.00 30529018.08 26783029.14

ENVP 3851946.97

EIRR 23.24%

42 Appendix 7

Table A7.3: EIRR for Electronic Driving License Component

Capital Investment (In USD)

Fiscal Year

Time ADB GON Total Capital Investment

(in USD)

Operation/Labor Cost

(USD)

Maintenance Cost (In USD)

Total O&M Cost (In

USD)

Total Cost (in USD)

Total Economic

Benefit

Economic surplus

(Nominal Price)

Economic Surplus (Real

Price)

2009/10 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0

2010/11 1 30000.00 4870.23 31383.21 0.00 0.00 0.00 31383.21 0.00 -31383.21 -56041.43963

2011/12 2 30000.00 4870.23 31383.21 0.00 0.00 0.00 31383.21 0.00 -31383.21 -50618.0745

2012/13 3 30000.00 4870.23 31383.21 0.00 0.00 0.00 31383.21 0.00 -31383.21 -46840.60625

2013/14 4 149976.00 24347.25 156890.92 600000.00 0.00 600000.00 756890.92 0.00 -756890.92 -1036836.883

2014/15 5 458651.00 74457.85 479797.96 654000.00 270000.00 924000.00 1403797.96 0.00 -1403797.96 -1776959.447

2015/16 6 392979.00 63796.59 411098.03 712860.00 270000.00 982860.00 1393958.03 1031480.00 -362478.03 -421486.0847

2016/17 7 134927.00 21904.18 141148.06 777017.40 270000.00 1047017.40 1188165.46 1031480.00 -156685.46 -176051.081

2017/18 8 318324.00 51677.03 333000.92 846948.97 270000.00 1116948.97 1449949.89 1031480.00 -418469.89 -454858.5763

2018/19 9 0.00 0.00 0.00 923174.37 270000.00 1193174.37 1193174.37 3094440.00 1901265.63 1960067.657

2019/20 10 0.00 0.00 0.00 1006260.07 270000.00 1276260.07 1276260.07 3094440.00 1818179.93 1818179.933

2020/21 11 0.00 0.00 0.00 1096823.47 270000.00 1366823.47 1366823.47 3094440.00 1727616.53 1677297.6

2021/22 12 0.00 0.00 0.00 1195537.59 270000.00 1465537.59 1465537.59 3094440.00 1628902.41 1551335.633

2022/23 13 0.00 0.00 0.00 1303135.97 270000.00 1573135.97 1573135.97 3094440.00 1521304.03 1408614.845

2023/24 14 0.00 0.00 0.00 1420418.20 270000.00 1690418.20 1690418.20 3094440.00 1404021.80 1264884.5

Total 1544857.0

0 250793.5

8 1795650.58 10536176.04 2700000.00 13236176.0

4 14852261.5

6 21661080.00 6808818.44 5660687.976

ENVP $434,284.91

EIRR 15.7%

Appendix 7 43

Table A7.4: EIRR for Public Service Recruitment Management System

Capital Investment (In USD)

Fiscal Year

Time

ADB

GON Total Capital

Investment (in USD)

Operation & Maintenance Cost (USD)

Total Cost (in USD)

Total Economic Benefit

Economic surplus

(Nominal Price)

Economic surplus (Real

Price)

2009/10 0 0.00 0.00 0.00 0.00 0.00 0.00 0

2010/11 1 30000.00 4870.23 34870.23 0.00 31383.21 0 -31383.21 -56041.43963

2011/12 2 30000.00 4870.23 34870.23 0.00 31383.21 0 -31383.21 -50618.0745

2012/13 3 30000.00 4870.23 34870.23 0.00 31383.21 0 -31383.21 -46840.60625

2013/14 4 92867.00 15076.12 107943.12 90000.00 178148.81 0 -178148.81 -244039.4616

2014/15 5 299584.00 48634.76 348218.76 90000.00 394396.88 0 -394396.88 -499236.5588

2015/16 6 539873.00 87643.51 627516.51 90000.00 645764.86 727500 81735.14 95040.86529

2016/17 7 0.00 0.00 0.00 600000.00 540000.00 727500 187500.00 210674.1573

2017/18 8 0.00 0.00 0.00 600000.00 540000.00 727500 187500.00 203804.3478

2018/19 9 0.00 0.00 0.00 600000.00 540000.00 727500 187500.00 193298.9691

2019/20 10 0.00 0.00 0.00 600000.00 540000.00 727500 187500.00 187500

2020/21 11 0.00 0.00 0.00 600000.00 540000.00 1455000 915000.00 888349.5146

2021/22 12 0.00 0.00 0.00 600000.00 540000.00 2182500 1642500.00 1564285.714

2022/23 13 0.00 0.00 0.00 600000.00 540000.00 2182500 1642500.00 1520833.333

2023/24 14 0.00 0.00 0.00 600000.00 540000.00 2182500 1642500.00 1479729.73

Total 1022324.00 165965.07 1188289.07 5070000.00 5632460.16 11640000.00 6007539.84 5446740.491

ENPV $983,880.79

EIRR 30.0%

44 Appendix 7

Table A7.5: EIRR for Land Reform Information Management System

Capital Investment (In USD)

Fiscal Year

Time

ADB

GON Total Capital

Investment (in USD)

Operation & Maintenance Cost (USD)

Total Cost (in USD)

Total Economic

Benefit

Economic surplus

(Nominal Price)

Economic surplus (Real Price)

2009/10 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0

2010/11 1 30000.00 4870.23 34870.23 0.00 31383.21 0.00 -31383.21 -56041.43963

2011/12 2 30000.00 4870.23 34870.23 0.00 31383.21 0.00 -31383.21 -50618.0745

2012/13 3 30000.00 4870.23 34870.23 0.00 31383.21 0.00 -31383.21 -46840.60625

2013/14 4 454086.00 73716.76 527802.76 90000.00 556022.49 0.00 -556022.49 -761674.6377

2014/15 5 65278.00 10597.29 75875.29 90000.00 149287.76 0.00 -149287.76 -188971.8537

2015/16 6 303082.00 49202.63 352284.63 90000.00 398056.16 0.00 -398056.16 -462856.0038

2016/17 7 81315.00 13200.76 94515.76 90000.00 166064.18 0.00 -166064.18 -186588.9667

2017/18 8 351516.00 57065.45 408581.45 90000.00 448723.30 0.00 -448723.30 -487742.7213

2018/19 9 0.00 0.00 0.00 600000.00 540000.00 410760.00 -129240.00 -133237.1134

2019/20 10 0.00 0.00 0.00 600000.00 540000.00 3168720.00 2628720.00 2628720

2020/21 11 0.00 0.00 0.00 600000.00 540000.00 3168720.00 2628720.00 2552155.34

2021/22 12 0.00 0.00 0.00 600000.00 540000.00 3168720.00 2628720.00 2503542.857

2022/23 13 0.00 0.00 0.00 600000.00 540000.00 3168720.00 2628720.00 2434000

2023/24 14 0.00 0.00 0.00 600000.00 540000.00 3696840.00 3156840.00 2844000

Total 1345277.00 218393.57 1563670.57 4050000.00 5052303.52 16782480.00 11730176.48

ENVP $1,860,226.13

EIRR 29.5%

Appendix 7 45

Table A7.6: EIRR of National Identity Card System

Capital Investment (In USD)

Fiscal Year

Time

ADB

GON Total Capital

Investment (in USD)

Operation & Maintenance Cost (USD)

Total Cost (in USD)

Total Economic

Benefit

Economic surplus

(Nominal Price)

Economic surplus (Real Price)

2009/10 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0

2010/11 1 30000.00 4870.23 34870.23 0.00 31383.21 0.00 -31383.21 -56041.43963

2011/12 2 30000.00 4870.23 34870.23 0.00 31383.21 0.00 -31383.21 -50618.0745

2012/13 3 30000.00 4870.23 34870.23 0.00 31383.21 0.00 -31383.21 -46840.60625

2013/14 4 49065.00 7965.26 57030.26 6000.00 56727.23 0.00 -56727.23 -77708.53935

2014/15 5 16355.00 2655.09 19010.09 6000.00 22509.08 441558.00 419048.92 530441.6735

2015/16 6 24836.00 4031.90 28867.90 6000.00 31381.11 441558.00 410176.89 476949.8717

2016/17 7 496955.00 80676.16 577631.16 6000.00 525268.04 441558.00 -83710.04 -94056.22592

2017/18 8 3774368.00 612734.56 4387102.56 6000.00 3953792.31 441558.00 -3512234.31 -3817645.985

2018/19 9 3157258.00 512552.33 3669810.33 6000.00 3308229.29 441558.00 -2866671.29 -2955331.231

2019/20 10 0.00 0.00 0.00 6000.00 5400.00 2358750.00 2353350.00 2353350

2020/21 11 0.00 0.00 0.00 6000.00 5400.00 2358750.00 2353350.00 2284805.825

2021/22 12 0.00 0.00 0.00 6000.00 5400.00 2358750.00 2353350.00 2241285.714

2022/23 13 0.00 0.00 0.00 6000.00 5400.00 2358750.00 2353350.00 2179027.778

2023/24 14 0.00 0.00 0.00 6000.00 5400.00 2358750.00 2353350.00 2120135.135

Total 7608837.00 1235225.98 7959656.68 66000.00 8019056.68 14001540.00 5982483.32 5087753.897

ENVP $573,555.14

EIRR 21.5%

46 Appendix 7

Table A7.7.: Sensitivity Analysis of the Economic Returns

Cases ENPV ($) EIRR (%)

Base case 3,851,947.0 23.2

Adverse variations

Operation and maintenance cost increased by 20% 1,529,709.7 16.2

Benefits reduced by 20%, costs unchanged (299,486.2) 11.1

Operating cost increased by 10%, benefits decreased by 10% (1,734,819.8) 6.7

Appendix 8 47

TECHNICAL REVIEW OF THE PROJECT

A. Executive Summary 1. The technical report has been prepared based on the understanding of objectives and scope of the ADB Grant No:0106-NEP-project and ADB’s Guidelines. During the report preparation, multiple Interaction/communication with the executing agency and associated implementing agencies, project consultants, and other concerned stakeholders/beneficiaries were conducted. All the essential data were collected physically and from their respective web portal as provided by executing agency, associated implementing agencies, concerned stakeholders/beneficiaries and ADB. These data and information were analyzed and the final report has been prepared after incorporating the comments and suggestions from ADB, consultants and from the concerned stakeholders. This report provides the brief background of the project and underscores the key activities, status and sustainability of the project. B. Project Background

1. E- Government Master Plan 2. The Government of Nepal intends to leverage ICT in meeting its development goals and designed the e-GMP with a specific focus in the areas of e-Services, e-Community and e-Economy. As an important component of the e-Governance initiatives in Nepal, it was envisioned that practically all the e-Services and electronic information in Nepal will be delivered via a comprehensive integration platform and collections of portals and applications. This ICT development project was developed to support concrete initiatives to implement the Government’s ICT-led development strategy. 3. In 2005, the government adapted e-GMP prepared in joint collaboration with the major government agencies: HLCIT, NITC, MOEST, MOIC, MOFAGA, and MoF. The KIPA (Korean Information Technology Promotion Agency) provided the technical support. The process initiated in January 2005 with the objective of using ICT to enhance government process, provide service to citizens and foster social integration, economic growth and poverty reduction. E-GMP Consulting Report was completed in November 2006. The report identified 21 major components, which were all agreed among multi-stakeholders, to be included in the E-GMP (Table A8.1).

Table A8 1: Major Components Identified in the e-government master plan

Phase Priority Project Sector

1

1 Government Portal G2Cb

2 Groupware G2Ga

3 Executing Agency Infrastructure 4 GIDC Infrastructure

5 NID G2C

6 e-Education G2G 7 PKI Infrastructure

2

8 e-Authentication G2G 9 e-Tax G2G 10 e-Customs G2Bc

11 e-Vehicle G2C 12 e-Drivers License G2C 13 e-Land G2G

48 Appendix 8

4. Under the e-GMP, all the citizen centric services provided by the government were prioritized to identify the services which have the most impact to the citizen. The objective was to identify government services which are critical to the citizen and those which cause the most inconvenience to the citizen at present, when obtaining such services. Through Business Process Reengineering, these services can be reengineered to make them more efficient and citizen friendly. ICT can be used as an energizing tool to further enhance the efficiency of the reengineered business processes. These services were referred to as ‘e-Services’. 2. ICT Policy 5. The government considered that easy access to quality and timely information is important for good governance. Cognizant of this, the government is keen to provide access to information and knowledge to citizens and businesses to empower them to fully participate in the processes of governance. Globally, a significant difference in the economic conditions is found for those countries developed in the field of information technology in comparison to the countries lagging behind in this field. The persistence of such disparities may not be agreeable even for the developed countries. In this context, there is a greater possibility that the international community will extend its support to developing countries in the promotion of information technology. Such assistance will certainly play a vital role in the national development for a developing country like Nepal. Hence, it is important to formulate a policy for developing information technology. The first ICT Policy was published in 2000, which was a milestone in the ICT sector. It created a broader sketch of the development of ICT in the country. The policy envisioned that Nepal will transform itself into a knowledge-based society by becoming fully capable of harnessing information and communication technologies through achieving the goals of good governance and poverty reeducation which will help spur social economic development. 6. Considering the fast technological developments in ICT sector and also the political, social and economic changes in the country, the ICT policy 2000 was revised and propagated the ICT policy 2010 aiming “ICT as an enabler for economic, social, administrative and other areas of development” and “ICT as an economic force to create employment opportunity, economic development, and export promotion through effective use of ICT”. Similarly, in 2017 the National Broadband Policy was promulgated which was necessary in acquiring a goal focused socio-economic development through the means of ICT. Further, the integrated ICT (2072) was promulgated. 3. Electronic Transaction Act

7. After the implementation of ICT policy, the electronic transaction act was imperative for regulating the ICT activities in the country. Hence, government promulgated the Electronic Transaction Act 2063 with following provisions:

3

14 e-Procurement G2B 15 Passport Management G2C 16 Immigration G2G 17 BRAMS G2B 18 e-Health G2C 19 e-Commerce G2B 20 e-Agriculture G2C 21 Community network

Notes: aG2G (Government to Government); bG2C (Government to Citizens); cG2B (Government to Business)

Appendix 8 49

� it is the means to make legal provisions for authentication and regularization of the

recognition, validity, integrity and reliability of generation, production, processing, storage,

communication and transmission system of electronic records by making the transactions

to be carried out by means of electronic data exchange or by any other means of electronic

communications, reliable and secured.

� And whereas, for controlling the acts of unauthorized use of electronic records or of

making amendment in such records through the illegal manner.

� Certifying digital signature (Combination of Private and Public Key)

� Formation of Office of Controller

� Formation of Tribunal

4. ADB Technical Assistance 8. ADB provided technical assistance for developing the e-government projects under the guidelines of e-GMP. ADB TA-4833 commenced in November 2006 and was completed by mid-July 2007, addressing different aspects of the e-Governance of the Government of Nepal. The Government expects that the implementation of the e-Governance will improve productivity in government administration and enhance service delivery by facilitating exchange of information. This will lead to better interaction and coordination of work among Ministries, Departments, Agencies (MDAs), citizens, and private businesses.

C. Current Status of Sub-components of the project

1. E-government framework and data infrastructure 1.1. Government Enterprise Architecture and Nepal E-Governance Interoperability

Framework

9. The main purpose of this component was to provide a standard guideline for the development of government e-applications and provide inter-operability between various systems of government institutions. This component also develops the National Portal and map at least one service of the IRD adhering the GEA and NEGIF standard to be hosted in the National portal. The main objective of the National portal was to deliver the public service within one stop portal. The NITC is the implementing agency. 1.1.1. Key Activities, Status & Sustainability

10. The contract was signed on April 2010 with Price waterhouse Coopers, India. A workshop on National Portal was conducted in June 2011 under the chairmanship of Chief Secretary, Government. All focal persons of government entities along with PMC and member of Computer Association of Nepal (CAN) participated in the workshop and the portal was demonstrated. A GEA training program was conducted for senior level government officials and private sector. An interaction program was also conducted regarding national portal to focal person of various government organizations. The final GEA and NEGIF report was submitted on May 2011. The GEA and NEGIF report was completed and housed it in the NITC web site nitc.gov.np for those who intended to download the document. Meanwhile, unfortunately HLCIT was dissolved in December 2011. Consequently, the implementation responsibility for this sub-component including GEA under the e- government applications component were transferred to NITC. The

50 Appendix 8

executing agency for Nepal e-government program was developed to ensure that the following attributes in every aspect of design and application:

Interoperability: Interoperability allows seamless exchange of information, reuse of data models and inter-changeability of data across systems.

Open Standards: Open standards are expected to provide interoperability, data preservation and greater freedom from technology and vendor lock-in. adoption of open standards will facilitate storing of electronic national records and data using open data file formats.

Flexibility: The framework facilitates adoption of new technologies and allows managing any change in governance processes.

Collaboration: The architecture provides a platform that will allow various stakeholders to make use of the repositories such as reusable models, script, data and metadata etc.

Technology: The technologies adopted are open so that they can be easily interfaced with other systems and other systems with them.

11. The contractor provided a continuous support to other implementing agencies in adhering to the GEA and NEGIF standards in their applications. During the contract period, the contractor supported election commission, IRD, DOLRM, DOTM and PSC in adopting the compliance and standards described in GEA and NEGIF report. 12. The development of the ‘National Portal’ was completed and installed the portal in the server of GIDC.OPMCM issued a letter on behalf of NITC to sixty government institutions to collect the information to upload in the National Portal. Accordingly, the information from different government institutions were received. The pre- meeting for launching the national portal was held on July chaired by the Chief Secretary, Lila Mani Pokharel. In the due course, Chief Secretary directed to form a committee of secretary level to determine the static content (in the front face of the portal) of the national Portal. The committee finalized the static content. Consequently, the chief secretary of government launched the National Portal officially on Dec 2013. Hence , the portal is publicly accessible and can be browsedonhttp://www.nepal.gov.np. The e-services of applications under the project were already adhered in the national portal and such services can be viewed from that portal. Additionally, other government institutions, Department of foreign employment, and Department of Passport and Ministry of Health adhered their services in the national portal and public can view their services in the portal such as pre-permission details, MRP status and list of doctors respectively. Also static contents of most of the government institutions were provided via the portal. Recently, NITC is responsible for updating the content and e-services of government organizations in the National Portal and strengthening for its sustainability. 13. The operational Guidelines of GEA and NEGIF were prepared and completed by NITC and forwarded it to MOEST for its approval. The National ICT policy guidelines for GEA and NEGIF is vital and very crucial in the development phase of the e-Gov application in adhering the GEA and NEGIF standards and to be interoperable with other government ICT applications. Accordingly, the Directive 2015 for ICT of government (Management and Operational) was promulgated on February 2015 by the cabinet. The guidelines directed that all the services of e- Gov applications should be interoperable and provided through one stop national portal in line with adhering the GEA and NEGIF standard.

14. The government transferred the responsibility of GEA and NEGIF to DOIT (Department of ICT) from the date of promulgation of GEA and NEGIF guidelines. The project provided the

Appendix 8 51

standard guidelines of GEA and NEGIF which are the benchmark and blueprint for further development of entire government e-applications as well as for the private sectors. But, GEA and NEGIF guidelines update is continuous process, hence the DOIT awarded the contract for updating the GEA and NEGIF guidelines. The contractor provided the SRS, design document and Quality Control Document. Lots of workshops were held with multi stakeholders with different pattern of questionnaires. The assessment for the gap finding was also conducted in the existing GEA guidelines and accordingly the guideline was updated with 16 mandatory artifacts. The trainings were conducted regarding the standards and its application to the different level of multiple stakeholders. The updated document was finalized at the end of December 2019 and forwarded MOCIT (Ministry of Communication and Information Technology for its approval. In the meantime, the document was circulated to all the ministries to get feedback before its approval from MOICT. 1.2. Government Integrated Data Center and Groupware 15. The purpose of this component was to strengthen GIDC infrastructure already established within NITC where all e-governance applications would be integrated and housed and to establish groupware system. With business process and services to the citizens provided through online applications that handled the core business and operational data for government services, all the information and data should be protected with efficient backup and recovery provisions. Thus the established infrastructure needs to facilitate high availability, scalability, efficient management and optimized use of information and data. 16. Groupware is an umbrella term for technologies designed to facilitate and coordinate e-government work, (e-mail, calendaring and scheduling, document management and video conferencing) in different ministries. As a pilot project, a range of groupware applications were developed in the form of a single integrated web services with open standards for all ministries and departments. The groupware was implemented in selected departments and ministries.

1.2.1. Key Achievement, Status & Sustainability 17. The contracts (lots) of the government network sub-project was signed on 2010. All the equipment of Lot1 and Lot2 were installed and commissioned, and the necessary trainings were conducted. The LRIMS OF DOLRM, ELDVRS of DOTM, PSRMIS of PSC, NID of DONIDCR and National Portal were installed in GIDC in the servers procured in Lot1. The groupware application was also installed in the same server. Hardware equipment (Server, Storage), and Enterprise RDBMS (Oracle 11g) to host applications developed under the project were procured in Lot1. All the applications under the project were installed in Oracle 11g provided by NITC. Time wise RDBMS version is a continuous process as and when a system demands. Therefore, NITC was upgraded with Oracle 12g under the budget of government. All the primary database and applications under the project are running and functioning well till date. Mainly network equipment (Router, Switches) to strengthen GIDC network system are procured under Lot 2. Additional Hardware and network were also procured through budget of government. Some hardware and network equipment after the project period were also upgraded as required under the budget of government. 18. The groupware component under lot 3 comprises Document Management System, e-mail, calendaring, scheduling and video conferencing. The necessary training was provide regarding the groupware application. The groupware application was customized in line with government procedure and installed in the GIDC. Initially the Document Management System and e-mail system was implemented and operated in NITC. The existing Groupware application was running

52 Appendix 8

in MS XP operating system and presently XP operating system is already obsoleted. Hence it is essential to upgrade the groupware application and expand the services to other government agencies after completion of the project and NITC needs to manage the source for it. Additionally, Video conferencing devices were installed in more than 40 government institutions including ministries, constitutional bodies and departments and also need to be upgraded along with the core video conferencing server system to ensure the compatibility with current system and technology. Such equipment is very essential at the present time such as current pandemic situation all over the world as offices are more inclined to conduct meetings in virtual environment. 19. Additional three components as required were requested by NITC. i) Additional Hardware: Insufficient hardware (Server and Storages) to host applications developed under this project. ii) GIDC Security Strengthening: Procurement of ICT Security equipment to strengthen ICT security of GIDC iii) GIDC Infrastructure Management: Procurement of GIDC Infrastructure management equipment to strengthen physical Infrastructure Management of GIDC. Considering the necessary for these sub-components, ADB allocated the budget as required. Accordingly, NITC issued an IFB and contracts were signed on Aug 2014, Feb 2017 respectively. Table A8.2 shows the major ICT and Security Equipment required for functioning the government network and Groupware.

Table A8.2. ICT and Security Equipment of Government Network and Groupware

S. No Equipment

1 RISC Servers High Availability

2 Intel Servers High Availability

3 RISC Chassis

4 Intel Chassis

5 SAN (Switch Area Network)

6 Tape Storage

7 L3 Switches

8 Routers

9 IPS (Intrusion Prevention System)

10 HIPS (Host –Based Intrusion Prevention System) 11 Load Balancer 12 Server Farm Switches 13 DDOS (Distributed Denial Of Services) 14 DNS Firewall 15 Surveillance (IR Dome camera, IR Bullet Camera) 16 Network Video Recorder 17 Access Control System 18 Fire Detections and alarm systems

20. NITC was established with the vision of facilitating ICT enabled delivery of all government Services (G2G, G2B & G2C etc.) from traditional modes to integrated electronic modes wherein the value to the citizens and businesses gets enhanced. The government sought to implement the GIDC as an integrated collaboration platform for hosting the government ICT applications that will optimize the processing of information, reduce time delays as well as costs and increase certainty and security. Considering the facts, government established GIDC under the NITC which provides extremely reliable and secure infrastructure for running Internet operations on a 24-hour basis. Most of the staff of NITC are ICT officials including the chief and deputy chiefs with a

Appendix 8 53

massive responsibility in implementing the ICT system of government that requires high priority and focus in ICT security as well. Hence, NITC should expand ICT officials as much as possible to provide a quality of services in entire government sector. 21. System failures and natural calamity are a constant concern, and the worst possible situation for any organization all over the world. Therefore, having a backup location with servers, ICT infrastructures and reliable dedicated internet and disaster recovery plan for business continuity is significantly important. Disaster recovery is best implemented when an alternate location with high-availability and security is brought into the mix. So regardless of occurrence of natural disaster such as fires or floods or malicious intent to interrupt or completely halt the operations of any organizations, one need to be assured that the records and data are well preserved and are in working order. So, the disaster recovery center was constructed and established in Hetauda with the assistance of KOICA. Now, all the applications under the project could be installed and housed in DR site Hetauda to preserve the data from unforeseen circumstances that could prevail in future. The government need to establish the additional DR sites in multiple locations to increase the safeness and security of the data.

1.3. National Identification Database 22. This sub-component was to establish a National ID database and all system components needed for issuing cards that will facilitate delivery of related public services .The component was also aimed for pilot phase in issuing smart cards The Nepal’s NID system mainly addresses the provision of an authentic national ID card, a legal document with national identity for citizen for secure and trusted Identification, eService delivery, Administrative efficiency and furthermore the new system will address the loss of data in VDCs / municipalities that will be no longer problem when data is maintained in the national identity record system (NIR). The DONIDCR is the implementing agency for this component.

1.3.1. Key Activities, Status & Sustainability

23. After the rebid of the procurement process, the contract of NID was awarded and signed on July 2016 with M/S Morpho (SAFRAN), France. The activities of the NID component was commence from August 16. The detail project plan and the system study and design of all major processes were completed within 8 and 13 weeks respectively. The detail design of the temporary personalization center was completed and established the personalization center. The detail design of the NID architecture and definition of all customization and reporting including the Nepali language elements were submitted by the contractor and reviewed by the officials of the DONIDCR. In turn, the DONIDCR approved the documents and established a personalization center AFIS (Automated Fingerprint Identification System). The established verification system (AFIS) provides biometric de-duplication for fingerprints with the capacity of 250,000 citizens This AFIS was integrated with the Enrollment system and provides the deduplication result. The application was developed in an open source platform Java as front end and data base (RDBMS) was applied and deployed in Oracle. 117,000 NID smart card were distributed in Singhadurbar, Panchthar and other 15 districts. A NID smart card, typically a type of chip card, is any pocket-sized card with embedded integrated circuits, digital photo and multiple level of security. NID card is more reliable, durable and secure than earlier paper based citizenship card. Lots of information also can be stored in the chips of smart card. Neither the smart card is easily tampered nor could the duplicate card be produced. Thus the system is profoundly discouraging in producing the fake citizenship card once the NID system will be deployed all over the country. The major output of this pilot phase are:

54 Appendix 8

A single integrated national identity registry database system Enrollment Operational personalization center Card Delivery Recording Basic eservices with limited functionality Local backup capability Verification System (AFIS)

24. The NID system is a single integrated national identity registry database system. The primary database and application were housed in GIDC. The secondary database and application for backup purpose were housed in DONIDCR office The central office has two links; i) Dark Fiber connectivity between GIDC and Central office; ii) alternate link of 10 Mbps/ 10 Mbps. Table 8A.3 presents the major hardware and Network equipment deployed for NID system in GIDC and NID Head Office. Table 8A.3: Major Hardware and Network Equipment Deployed for National Identification

System in GIDC and its Head Office

S. No Equipment

1 High availability Web/Proxy Server and backup server with genuine licensed operating system for Internal Network and access to government Information Data Center

2 Server Rack

3 Online UPS backup

4 Server for SMS system with software

5 Desktop Computers

6 UPS for workstations

7 Multifunction Network Printer/Scanner/Copier

8 Firewall

9 Network Routers (Medium range) OS with security feature

10 Network Routers (low end range) OS with security feature

11 Network Manageable switch (24 port)

12 Network switch (24 port)

13 Solar Power Backup for at least 2 set computers, 1 printer for minimum 4 hours

14 Smart Card Printer

15 Smart Card reader

16 Smart Card 1,60,000

17 Finger Printer Capture System

Appendix 8 55

2. E-Citizen Services and Applications for Driver’s License and Land Registration 25. There are 3 sub-components of this component: e-Governance application of LRIMS, Electronic Vehicle Registration and Driving License systems, and e-governance on PSRMS, 2.1. E-Government Application of Land Records Management 26. The purpose of this sub-component was to improve the land records management system in updating the land records and optimize to collect the maximum revenue of land transactions. The aim of this system was to automate the land transaction related functions of Land Revenue Offices based on different land transactions process requirements and make the information easily accessible to land owners and other related authorities. 2.1.1. Key Activities, Status & Sustainability

27. The contract was signed with RMSI Pvt. Ltd on April 2013.The project was initiated with the stage of business Process Reengineering. Accordingly, the SRS was provided and application was divided in three build. The entire approximately 5 million data of LRO stipulated in the contract were digitized by the contractor and all the existing date were migrated into new system. 28. All the equipment was deployed in the project sites. Multiple workshops and trainings were held with multi stakeholder and officials of LRO for business process reengineering and finalized the ‘To be ‘model and report was provided to DOLRM. The application was developed in an open source platform Java as front end and data base(RDBMS) was applied and deployed in Oracle. The Audit security of application was also held with the assistance of DOIT (Department of ICT) before launching the portal The developed application was installed in server of GIDC. The application was started piloting from Kalanki LRO by the end of 2014. There were 15 project sites including Department of DOLRM. Henceforth, the landowner can view their land registration online and acquire a “Lal Purja” land registration in printing form.

29. The LRIMS application was adhered to GEA an NEGIF standards so that the application could register in ESB (Enterprise Service Bus) and will be able to provide services through one stop Government National Portal. Henceforth, through the e-service “View” in official portal of government, the landowner can view their Land property details with populating the user name and password in the view box.

30. After implementation of the LRIMS , separate office code was provided to the LROs that were in the network of the system and only the necessary permissions were provided through system administration in the central system Staffs the LRO are able to connect via intranet link ( private link ) and public are able to connect from anywhere via internet ( public link) in the LRIMS system .Earlier in DLIS system each LRO must updated the system separately in the servers at the time of amendment the provision in the act (i.e.: revenue ,fees and tax) but nowadays entire data will be updated centrally and it will beneficial the uniformity of the data as well .Department could itself monitor online of each and every administrative activities of LROs within the network of the LRIMS system. 31. Al the details of the land registrations are centralized so that whenever the concerned stakeholders required the data it could be acquired easily and quickly. The revenue collection of land transactions also could be sought on daily basis. The capital gain tax will be calculated automatically by the system at the time of the land ownership transferal. The system will send the message to applicant via SMS and e-mail before the approval of land ownership transferal. Thus,

56 Appendix 8

the system will profoundly discourage the fake transaction land ownership transferal. Accordingly, the system is beneficial in escalating the revenue collection for the government. 32. These days Land registration certificates” Lal Purja” will be distributed in the printed form along with capturing the biometric fingerprint, electronic signature and electronic photo. Hence, the certificates are more secure and far better than previously hand written certificates. The detail of land property of individual person could be easily and quickly obtained whenever it is required. After complete enrollment of LRIMS system in the country, with the aim to maintain the delimitation of land property and other legal purpose for the government the system will be much more beneficial to pursue such figures or statistics.

2.1.2. Implementation sites

33. There were 15 project sites including the head office of DOLRM. The LRIMS was implemented in all 15 project sites. The table 8A.4 comprises the project sites of DOLRM.

Table 8A.4: Project Sites of Department of Land Reform Management

S.N. Project Offices

1 Department of Land Reform Management, Central Office, Kathmandu

2 Baglung

3 Banke

4 Bhaktapur

5 Biratnagar, Morang

6 Chabahil

7 Chitwan

8 Dhading

9 Dillibazar

10 Kalanki

11 Kaski

12 Kavre

13 Lalitpur

14 Makawanpur

15 Parsa

34. The developed application was audited for the verification of its efficiency, accuracy and reliability with the assistance of Department of Information Technology. The application software, LRIMS is centralized web-based application system. The primary database and application were housed in GIDC. The secondary database and application for backup purpose were housed in DOLRM head office. The central office has two Dark Fiber connectivity between GIDC and Central office; ii) alternate link of 10 Mbps/ 10 Mbps. During last three years, the project sites were connected (within the budget of the project) to main application server in GIDC via the central office using a lower –end router. Recently, the connection payment has been furnishing through the budget of government. The major modules of the LRIMS application are as follows:

Appendix 8 57

i. Moth and Rokka/ Fukka verification procedure: ii. Generate unique LIN number. iii. Integrate into GIS iv. Land Valuation v. Module for capital gain tax vi. Transaction/Update (Adjudication) vii. Amendment of records database by application request viii. Capturing likthat document ix. Capturing Signature and Finger Prints x. Administration / Management / Security xi. MIS reports xii. User Customization Report xiii. Data Exchange Module for various applications xiv. Online Information

35. The project provided hardware and network equipment and LRIMS system including with aforementioned modules which facilitated to automate the land transaction related functions of Land Revenue Offices based on different land transactions process requirements and make the information easily accessible to land owners and other related authorities. Table 8A.5 shows the major hardware and network equipment deployed for LRIMS system in GIDC, DOLRM Head Office and Project Sites. 36. The facility of online filling form and submission was not embedded in that system which is very valuable to the landowners for efficiency in time saving and eradicating the hurdles cause by visiting the payment LROs. Considering the facts to providing the benefits to the landowners, DOTM developed an additional application module (Public Access Module) within budget of government. The module has functionality of filling and submitting the form, capturing signature, uploading document and viewing, printing the form. Only valid landowners and authorized persons/organizations can perform their functions online from anywhere. DOTM also procured few additional hardware including computers, servers, printers, biometrics within budget of government to assist further for the operation of PRSMS system more effective. 37. The LRIMS system was implemented in 2 LROs in 2015, 8 LROs in 2016, 9 LROs in 2017, and 28 LROs in 2018 and 61 LROs in 2019. The LRIMS system was implemented in 96 additional LROs through the budget of government till now. There are 126 LROs are in functioning among 131 LROs. DOLRM is planning to implement the LRIMS in 8 LROS in 2020 and else entire remaining LROs in next fiscal year.

Table A8.5: Major Hardware and Network Equipment Deployed and Project Sites

S. No Equipment

1 High availability Web/Proxy Server and backup server with genuine licensed operating system for Internal Network and access to GIDC

2 Server Rack

3 Online UPS backup

4 Server for SMS system with software

5 Desktop Computers

58 Appendix 8

6 UPS for workstations

7 Multifunction Network Printer/Scanner/Copier

8 Firewall

9 Network Routers (Medium range) OS with security feature

12 Network Routers (low end range) OS with security feature

13 Network Manageable switch (24 port)

14 Network switch (24 port)

15 Solar Power Backup for at least 2 set computers, 1 printer for minimum 4 hours

16 Smart card Reader/Writer for Center

17 Finger Print capture system with software

38. Additional ICT personnel were deputed moderately more than earlier and from the beginning ICT director post existed from the beginning. Nevertheless there is a lacking of technical personnel in DOLRM and it seems that there is needs to establish separate ICT wing or ICT division for support and extension of LRIMS further .The multiple TOT training knowledge transformation is necessary to operate LRIMS system in entire LROs due to reshuffle of LRO’s operators quite often .It also needs source of sufficient budget for outsourcing to support and extension of LRIMS as well as further extension and replacement of hardware and network equipment. Also slightly change is required in the LRIMS application to implement in federal system in future. The warranty period of LRIMS application ended on 22 May 2020.Hence, the national firm has been hired for its support from 23 May 2020. All the communication payment including internet cost after the project completion has been furnishing under the budget of government. 2.2. Electronic Vehicle Registration and Driving License Systems 39. The purpose of this sub-component was to implement a user friendly Driving License and establish the Vehicle Registration system to streamline the process of personalization, production and issuing of the new smart card driving license system. The state-of-the-art smart card base Electronic Driving License will contain a microchip that will carry driver information including a digital photograph and scanned signature. The implementing agency is Department of Transport Management (DOTM). 2.2.1. Key Activities, Status & Sustainability

40. The contract was signed on Oct, 2013 with Madras Security printers Pvt.Ltd. The project was initiated with the stage of ‘As is’, ‘to be’ and ‘Business Process Reengineering’. The contractor developed a certain user interface of application and presented in each and every related section independently. Accordingly collected a cumulative feedback of their business flow process and finalized the SRS document. On the base of finalized SRS the application was developed in an open source platform Java as front end and database (RDBMS) was applied and deployed in Oracle. All the equipment was installed in DOTM, GIDC and entire project sites. After devastated earthquake held on April 25, 26 and May 12, 2015, DOTM could not accomplish the project work

Appendix 8 59

during the contract period. Hence, DOTM requested to extend the project and ADB provided the concurrence for extension of the project. Multiple workshop and training sessions were held with multi stakeholder and officials of TMO (Transport Management Office) to get feedback on their business flow process .Accordingly ,the design of smart card was finalized and ELDS (Electronic Driving License System)one part of ELDVRS application was launched on 30 November 2015.Smart card personalization center was established in DOTM head quarter .Additional two personalization center will be established once the DOTM decided the sites for the personalization center .These activities were the part of the project and delayed due to the lacking decision on finalizing the sites. One Hundred Sixty Thousand smart card were distributed through the project. Additionally, 54 thousand cards were distributed under the project. There were 18 project sites including DOTM. Henceforth, the applicant apply online form for smart card driving license and view their result online in web portal. 41. In line with district and zonal code TMO offices were segregated and adjusted in ELDVRS system. Required permissions were authenticated through system administration in the central system Staffs of the TMO are able to connect via VPN (virtual Private Network) and public are able to connect from anywhere via internet (public link) in the EDLS system. Department could itself monitor online of each and every administrative activities TMOs within the network of the EDLS system.

42. Al the details of the driving License are centralized so that whenever the concerned stakeholders required the data it could be acquired easily and quickly. The applicant can apply the online form for all categories of driving licenses. There is a quota system for applying the form and available a maximum one week from a date of notice published. While applying a form category of driving license and mobile number is mandatory and is restricted to apply from number of offices. 43. The examination date will be provided to the applicant after payment the fee. Once the applicant passed in the trail result will be sent to receive the smart card via SMS and e-mail as well as published in the web portal. In the meantime the applicant also able to check their application status. Then all the successful applicant’s smart card will be printed in the personalization center located in the premises of DOTM office. A smart card, typically a type of chip card, is any pocket-sized card with embedded integrated circuits, digital photo and multiple level of security. Smart card is more reliable, durable and secure than earlier paper based card. Lots of information also can be stored in the chips of smart card. Neither the smart card could be easily tampered nor could the duplicate card be produced. Thus, the system will profoundly discourage in producing the fake license as earlier. 44. The ELDVRS application was adhered to GEA an NEGIF standards so that the application could register in ESB (Enterprise Service Bus) and will be able to provide services through one stop Government National Portal. Henceforth, the e-service of ELDVRS can be adhered in Government National Portal.

2.2.2. Implementation sites

45. There were 18 project sites including with the head office of DOTM. The application was implemented in all project sites. Table A8.6 shows the project sites of DOLRM.

60 Appendix 8

Table A8. 6: Project Sites of DOLRM

No. Project Sites

1 Office of Transport Management, Ekantakuna, Kathmandu

2 Bagmati Zonal Office (A) - Ekantakuna (4 wheelers)

3 Bagmati Zonal Office (B) - Ekantakuna (License Office)

4 Bagmati Zonal Office (C) - Talchikhel (2 wheelers)

5 Bagmati Zonal Office (D) - Swayambhu (Sewa Kendra)

6 Bagmati Zonal Office (E) - Sallaghari (Sewa Kendra)

7 Mechi Zonal Office

8 Koshi Zonal Office

9 Janakpur Zonal Office

10 Sagarmatha Zonal Office

11 Narayani Zonal Office

12 Gandaki Zonal Office

13 Lumbini Zonal Office

14 Dhaulagiri Zonal Office

15 Rapti Zonal Office

16 Bheri Zonal Office

17 Seti Zonal Office

18 Mahakali Zonal Office

46. The developed application was audited for verification of its efficiency, accuracy and reliability with the assistance of DOIT (Department of Information Technology). The application software, ELDVRS is a centralized web-based application system. The primary database and application were housed in GIDC. The secondary database and application for backup purpose will be established in DOTM head office. The central office has two links. The central office has two links; i) Dark Fiber connectivity between GIDC and Central office; ii) alternate link of 10 Mbps/ 10 Mbps. During last three years, the project sites were connected (within the budget of the project) to main application server in GIDC using a lower –end router. Recently, the connection payment has been furnishing through the budget of government. The major modules of the LRIMS application are as follows:

i. Electronic Driving License (Information for EDL) ii. Renewal Module iii. Add License Categories Module iv. Duplicate License Issuance Module v. ‘Nepalikaran’ Module (Provide DL against International DL) vi. Penalty Payment vii. Search viii. Biometric information ix. Medical Information Module x. Accounting Module xi. Smart Card Production Module

Appendix 8 61

xii. SMS Module xiii. Tracking of Electronic Driving License (end user to view online, processing status of

EDL) xiv. User Access Level, Security and Audit Trail xv. Reports xvi. Smart Card Production

47. Apart from the above mentioned hardware equipment and smart card after the completion of the project, DOTM procured 4 small smart card printer (60/per hour) and one mass smart card printer (450/per hour) and 1.7 million smart card under the budget of government after the completion of the project. Almost one million smart card were distributed among 1.7 M card. The application was also deployed in additional six sites under the budget of government. The government of Nepal is planning to purchase additional 2 M smart card and one mass printer in this fiscal year. DOTM is preparing to modify the ELDS in line with province system. Besides that, DOTM is planning to develop a traffic module for penalty and to distribute a reader to traffic police. 48. The VRS was developed by the contractor and tested multiple time. In the early stage the system was developed in Zonal based level. But later lot of changes in business process was requested by DOTM to meet the requirement in line with province system due to the political system of country was transformed to federal system. Hence, VRS system could not be rolled out in project period. However, the government is aggressively preparing to roll out the VRS system within this fiscal year with the support of existing contractor Madras Printing. Accordingly, DOTM extended the contract with preceding contractor Madras printing within the source of government and allocated the budget for completion of the VRS system.

49. Additional ICT personnel were deputed moderately more than earlier including ICT Director nevertheless there is a lacking of technical personnel in DOTM and it seems that it needs to establish separate ICT wing or ICT division for support and extension of LRIMS further .The multiple TOT training knowledge transformation is necessary to operate EDLVRS system in entire TMOs due to often alterations of TMOs operators .It also needs source of sufficient budget for outsourcing to support and extension of ELDVRS as well as further extension and replacement of hardware and network equipment. The warranty period of Electronic Driving license is ongoing. All the communication payment including internet after the project completion has been furnishing under the budget of government. Table A8.7 presents the major hardware and Network equipment deployed for PSRMS system in GIDC, PSC Head Office and Project Sites.

Table A8.7: Major Hardware and Network Equipment Deployed for PSRMS System in GIDC, PSC Head Office and Project Sites

S. No Equipment

1 High availability Web/Proxy Server and backup server with genuine licensed operating system for Internal Network and access to GIDC.

2 Server Rack

3 Online UPS backup

4 Server for SMS system with software

5 Desktop Computers

62 Appendix 8

6 UPS for workstations

7 Multifunction Network Printer/Scanner/Copier

8 Firewall

9 Network Routers (Medium range) OS with security feature

12 Network Routers (low end range) OS with security feature

13 Network Manageable switch (24 port)

14 Network switch (24 port)

16 Solar Power Backup for at least 2 set computers, 1 printer for minimum 4 hours

21 OMR (Optical Mark reading)

2.3. Public Service Recruitment Management System 50. The project provided hardware and network equipment and PSRMS system including with aforementioned modules which facilitated the examiners to populate on-line form submission and processing of the examinations for the civil servants. The facility of payment for online submission via bank was not embedded in that system which is very valuable to the applicants for efficiency in time saving and eradicating the hurdles cause by visiting the payment centers. Considering the facts to providing the benefits to the applicants, PSC developed an additional application module (E-Payment of PSC through RMIS) within budget of government. The business function of additional module enables bank users to collect exam fee from examiners while applying online application exam form in PSRMS and also update in the RMIS (Revenue Management Information System). RMIS is a Revenue Management Information System owned by FCGO (Financial Comptroller General Office) with the objective of Revenue collection and reconciliation from bank and paying office center. The sole objective of this platform is to facilitate a distinguished environment for bank users to collect revenues of exam forms. This system enables two Databases communicating through API to perform data insert task of PSC exam revenue collections from same web portal. PSC also procured few additional hardware and network equipment within budget of government to assist further for the operation of PRSMS system more effective. 51. Few additional ICT personnel were deputed moderately more than earlier including ICT Director nevertheless there is a lacking of technical personnel in PSC. Hence, it seems that there is a needs to establish separate ICT wing or ICT division for support and extension of PSRMS further. It also needs source of sufficient budget for outsourcing to support and extension of PRSMS as well as further extension and replacement of hardware and network equipment. The warranty period of PSRMS application ended and national firm Info Developer Pvt. Ltd hired for its support. Multiple open source platforms were used including Life ray based on Java for the development of PSRMS. PSC needs to consider the version of such platforms to be upgraded or replaced for integration with new technologies and support of perpetual licenses. All the communication payment including internet after the project completion has been furnishing under the budget of government.

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3. Nationwide human resources development for e-government and ICT 52. This component of the project was to build awareness, knowledge and skills of the key stakeholders in e-Governance. The component was also meant to provide support to strengthen the computer laboratories for capacity development of institutions, promoting ICT human resource development and strengthen networking between training institutions and support for functional linkages, and revise existing training curriculum and develop new curricula for public training institutions aiming at improving the quality of training curriculum. 3.1.1. Key Activities, Status & Sustainability

53. The contract was signed on Aug-2013 with Wave-Max JV. The equipment was delivered in entire project sites and installed in the entire training institute. The procured hardware and network equipment was envisioned to provide support to strengthen the computer laboratories for capacity development of institutions. The major hardware and network equipment deployed in training institutes is illustrated in Table A8.8.

Table A8.8: Major Hardware and Network Equipment Provided to the Training Institutes

S. No. Equipment

1 Desktop Computer

2 Notebook

3 LCD Projector

5 Server with genuine Operating system

7 Unmanaged Network switch (24 port)

8 Managed Network Switch

9 2ton Air-conditioner

10 Network Printer

11 Flatbed Scanner

12 Photocopy machine

13 On-line UPS

14 Firewall Device

15 Generator

16 IP connectivity

54. The MOFAGA signed the contracts on December 2012 with all the training institutions for further conduction of the training. The TOT training (Training program in Thailand – May 22- June 2, Information Communication for e-Governance) for government personnel along with the personnel of executing agency was conducted. Accordingly, the training institutions prepared the TNA (Training Need Assessments) and curriculum Development. The National Center for Education performed the training (Three-day Orientation Course on ICT and e-Governance) for Joint Secretary Level. The national training for health center performed the training (Three-day Orientation Course on ICT and e-Governance). LDTA has accomplished the several TNA for VDC, DDC and municipalities. Staff College also developed some TNA.

64 Appendix 8

55. The National Center for Education performed the training (Three-day Orientation Course on ICT and e-Governance) for Joint Secretary Level. The national training for health center performed the training (Three-day Orientation Course on ICT and e-Governance). PTA conducted 5 TNA workshops. PTC completed the TNA and the designed the course in line with TNA. NCED conducted workshop for training material development. LDTA held a TOT session for 21 days a long course from 4 to 24 June. The project consultant also provided the training on e-government, cyber law and project management which was very fruitful for the LDTA trainers. The project consultant provided training on e-government, cyber law and digital signature to various training institutions. MOFAGA conducted a regional workshop on ICT awareness and PIS (Personnel Information System) hands on in the districts: Pokhara, Biratnagar and Nepalgunj on 23 May, 8 June and 24 June respectively. 56. Likewise, PTC, NCED, NITC and all the training institutions prepared the required TNA and conducted the several trainings. The National Training of Trainer program on “The linkage between ICT Applications and Meaningful Development” was conducted by Ministry of General Administration at National Information Technology Center (NITC) Singhadarbar, from 10-12June, 2014. As requested by the MOFAGA with the assistance of project consultant, Un-APCIT provided the resource person. The program was conducted in the technical assistance of UN-APCICT with the support of making availability of the author of the Academy Module1 Usha Rani Vyasulu Reddi. Mr. Durga Nidhi Sharma, Secretary of MOFAGA, were the guest of Honor, Mr. Mukanda Raj Panthi, Joint-Secretary MOFAGA, was the chairperson of the program and Ms. Usha Reddi was the resource person of the program. The participants were from MOFAGA, Nepal Administrative Staff College (NASC), National Police Academy (NPA), Revenue Training Center (RTC), Postal Training Center (PTC), Personnel Training Academy (PTA), Local Development Training Academy (LDTA), Judicial Training Center (JTC), National Center for Educational Development (NCED) and National Health Training Center (NHTC). 57. The MOFAGA held another training program for government ICT leader on the topics of ICT Development project from 8 to 11 July ,2014. The raining was conducted with the assistance of project consultant and Un-APCIT provided the resource person. Representatives from training institutes and government organization along with OPMCM were en masse participated in training. The training was very fruitful and provided the opportunity to be familiar with new technology in deployment the e-government system with the case studies in different countries. 58. Trainings was imparted to government staff through 17 government training institutions including with NITC and four LDTA regional institutions. NITC also conducted several trainings on various topics regarding the e-government subjects. 118 trainings were conducted during the project period from December 2012 to December 2014 with total 3,385 males and 436 females. The entire cumulative participants along with male and female were 3,821 and to be precise 13.35 % were female participants. The TOT training and other various types of training were very fruitful from Joint Secretary Level to the Officer Level to implement the e-government system in the concerned ministries and departments. Entirely, the HRD sub-component was performed exclusively and the trainings were accomplished very successfully. At the present all the training institutions are providing various types of training as well. Table A8.9 shows the training centers located in the various parts of the country. Similarly, Table A8.10 shows the procurement and consultant contacts with contract award dates.

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Table A8.9: Training Centers and its Locations

S. No Implementation Sites Address

1. Ministry of General Administration (MOFAGA) Singh Durbar

2. Nepal Administrative Staff College (NASC) Jawalakhel, Lalitpur

3. Personnel Training Academy (PTA) Jawalakhel, Lalitpur

4. Local Development Training Academy (LDTA)

Jawalakhel, Lalitpur and 4 Regional LDTA at Jhapa, Pokhara, Surkhet and Dipayal.

5. Revenue Administration Training Centre (RATC) Harihar Bhawan, Pulchowk

6. National Police Academy (NPA) Maharajgunj, Kathmandu

7. Postal Training Centre Babarmahal, Kathmandu

8. National Health Training Centre (NHTC) Teku, Kathmandu

9. National Centre for Education and Development (NCED)

Sanothimi, Bhaktapur

10. Judicial Service Training Centre (JSTC) Babarmahal, Kathmandu

11. Office of Prime Minister & Council of Ministers Singhdurbar

12. Departments of Civil Personnel Records (DOCPR) Harihar Bhaban, Lalitpur

Table A8.10: Procurement and consultant contacts, with contract award dates

S.N. PCSS Description Name and address of Supplier Contract

Date 1 G0417 Project Management

Consultant Service SPI Nepal Pvt. Ltd. Pulchowk, Lalitpur, Nepal

11-Feb-10

2 G04414 Government Enterprise Architect

Price Waterhouse Coopers Plot No. Y-14, Section 5, Salt Lake, Kolkata - 7000091, West Bengal, India

23-Apr-10

3 G05721 Government Network - Lot 1 Supply, Installation and delivery of GIDC Hardware and RDBMS

LG CNS India Pvt. Ltd MARATHAHALLI, SARAJPUR OUTER RING ROAD, BANGALORE-560 103, INDIA

12-Oct-10

4 G05722 Government Network - Lot 2 Supply installation and delivery of GIDC Network Equipment

Subisu Cable net (P.) Ltd. Baluwatar, Kathmandu, Nepal

22-Oct-10

5 G05723 Government Network - Lot 3 Supply installation and delivery of government groupware

LG CNS India Pvt. Ltd MARATHAHALLI, SARAJPUR OUTER RING ROAD, BANGALORE-560 103, INDIA

11-Nov-10

6 G05955 National ID International Consultant

Ardaman Singh Kohli, Calgary, Canada

06-Feb-11

66 Appendix 8

7

MOFGA signed the contracts with all the training Institutes

All the training Institutes December -12

8 G09317 Public Service Recruitment Management System for PSC

Infinite Computer Solutions (India) Limited 157 EPIP Zone 2nd Phase, Kundalahalli, Whitefield Bangalore-560066

12-Feb-13

9 G09396 Land Records Information Management System for DOLRM

RMSI Private Limited, India A-8, Sector 16, NOIDA 201301, UP, India

1-Apr-13

10 G10488 Electronic Driving License and Vehicle Registration System

Madras Security Printers India Pvt Ltd, No 19 and 72, T.H Road, Chennai (Madras) -600081, India

4-Oct-13

11 G10065 Computer Hardware and Network Equipment for Lab Setup of Government Training Institutions

Wave-Max JV 8-Aug-13

12 G12115 Government Network Lot 4 Additional hardware for GIDC, NITC

Max International Pvt. Ltd Kathmandu, Nepal

21-Aug-14

13 G15761 NID System M/S SAFRAN IDENTITY AND SECURITY

15 –Jul- 16

14 G16864 Government Network Lot 5 Delivery of GIDC infrastructure Management

Subisu Cable net Pvt. Ltd Kathmandu, Nepal

3-Feb -17

15 G16865 Government Network Lot 6

Supply and Delivery of GIDC security strengthening

Subisu Cable net Pvt. Ltd Kathmandu, Nepal

3-Feb-17

D. Conclusion 59. Overall, the project provided the centralized web applications of NID, RIMS, EDLRS, and PRMIS which facilitated the government to implement G2G and G2C system. The citizens could obtain various e-services effectively and efficiently under the project that are provided by government. Government has owned the GEA standard and promulgated the operating policy guidelines which is very beneficial to regulate in maintaining the standards and interoperability while implementing the e-government services. All the e-applications under the project were housed securely all the time as primary database and also as one stop. Government portal is publicly accessible where all the government information could be sought centrally. More than five thousand government officials ranging non-gazette officers to Joint secretary via HR component and other sub-components were trained and obtained the opportunity to be familiar with advanced technology.

60. Few additional ICT personnel were deputed in all the organizations. Nevertheless, there is a lacking of technical personnel in all institutions. It seems that it needs to be establish separate ICT wing or ICT division for support and extension of e-government applications further except in NITC. All the applications under the project are running and functionally well. GIDC is also performing well in supporting in hosting all applications. Entirely, the ICT development project was completed successfully and functioning well. Information Technology is evolving rapidly and changing new hardware, networks and software products seem to emerge continuously. This rapid change is accelerating and will likely continuous to do so in the future. Considering these

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factors there should be provision of replacement of hardware and network within 5-7 years and upgradation of software while designing and estimating the project. Government needs to establish the extremely continuous sources and support for expansion and sustainability of ICT infrastructure and e-government applications.