The Local Infrastructure Support Programme (LISP) is set to transform the capacity of Nepal’s local and provincial governments to deliver infrastructure that meets the needs of citizens while enhancing governmental legitimacy and accountability. Central to LISP’s approach is a focus on empowering women, fostering green job creation, and stimulating the local economy through climate-resilient infrastructure development.

With the implementation of Nepal’s new constitution, local and provincial governments have emerged as pivotal players in delivering sustainable development outcomes. However, to fully realize this vision, the Government of Nepal (GoN) estimates that £3 billion (US$5 billion) in local infrastructure investment is required over the next seven years. Current gaps, including maintenance issues, climate-related impacts, and inefficient life cycle cost management, lead to annual losses of at least £100 million in infrastructure value. LISP addresses these challenges head-on by supporting local governments with the tools and resources they need to improve service delivery, accountability, and resilience in their communities.

LISP’s overarching goal is to enhance the legitimacy of local governments (LGs) by empowering them to deliver infrastructure services demanded by their communities. This programme posits that with improved planning, prioritization, and execution, LGs can achieve better development outcomes. Furthermore, support from development partners can accelerate these improvements, fostering a sustainable path forward for infrastructure investments and delivery.

LISP is supporting in developing the Provincial and Local Infrastructure Sector Framework (PaLIS), a national initiative that aims to harmonize investment and capacity-building activities across provinces. This framework will enhance coherence in the sector, facilitating collaboration across the three provinces, with targeted investments in Karnali, Lumbini, and Madhesh. During the initial phases, local governments will apply for LISP grants and capacity support, demonstrating their priorities, existing capacities, and commitment to resilient project execution.

• Expanded Infrastructure Access: LISP will enhance access to sustainable infrastructure for up to 1.7 million people, with a focus on local roads, irrigation, water supply, sanitation, and solid waste management services.
• Strengthened Government Capacity: Approximately 80-100 LGs will benefit from capacity-building initiatives, improving their skills in planning, budgeting, decision-making, and service delivery.
• Green Job Creation: Supporting Nepal’s green recovery, LISP will generate up to six million person-days of employment, primarily in maintenance, rehabilitation, and resilience-building efforts for local infrastructure.
• Evidence-Based Planning: LISP will promote the use of data and innovative approaches in local government planning and investment, enhancing efficiency and responsiveness.
• Resilient Infrastructure Assets: An estimated 1,800 infrastructure assets will be developed with increased resilience and sustainability, ensuring lasting value for communities.
• Targeted Support for Vulnerable Communities: LISP will directly support around 630 projects in remote, disadvantaged, and vulnerable communities, improving infrastructure equity across the country.
• National Infrastructure Framework: The programme will establish a national framework for provincial and local infrastructure, guiding partner investments and aligning resources with GoN priorities.
• Enhanced Government Collaboration: LISP will bolster cooperation between Local, Provincial, and Federal Governments, fostering strong intergovernmental relationships that drive effective service delivery at the local level.

LISP is positioned to deliver a paradigm shift in local infrastructure delivery in Nepal, demonstrating the power of well-supported, accountable, and responsive local governance. As this ambitious programme progresses, LISP will not only fulfil critical infrastructure needs but also help local governments become stewards of sustainable development, climate resilience, and community empowerment.