Annual Report 2011 - Poverty Alleviation Fund, Nepal

ForewordThe dismal national growth rate of 2 to 4 per cent from1996/97 to until now has left a quarter of the Nepalesepopulation below the poverty line. A more detailed andsophisticated assessment of Multi Dimensional PovertyIndex (MPI), conducted by Oxford University, has indicated thattwo third of the population is still living below the poverty line.Poor employment situation, slow development expenditure,frustrating investment climate, rising inflation and its pains andcollapsing financial sector-all have contributed towards stoppingthe country from moving forward-in terms of economy, stability,peace building, inclusive growth, and thus widening the gapbetween the rich and poor.In this context, the Poverty Alleviation Fund is working as aspecialized and fast track vehicle to reach out to the poor, andhas achieved some significant results on the ground especiallyimpacting on the lives of the poor and marginalized communitiesliving in the far-flung villages and districts.Six years down the line, PAF has been a brand as one out often Nepali is directly benefiting from PAF programme. Reachingout to the most vulnerable groups, especially those who aredisadvantaged due to gender, caste, ethnicity or physicalisolation, PAF has demonstrated that even modest amounts ofresources given to the community led development can helpmany poor families to get out of poverty, in a sustainable way.PAF is working now with other development partners andprogrammes to build synergies between the programmesaiming to alleviate poverty and community empowerment.PAF has made important strides in joining hands with localgovernments to avoid duplications and yield maximum benefitsfrom the pro-poor programme at the grass root level.The community based and driven approach has already resultedin the formation of over 17 thousand community organizations(COs) spread in 40 districts. Nearly 500 thousand householdsare direct beneficiaries of which 74 per cent are women and 66per cent are ultra poor--those who do not have food sufficiencyfor more than 3 months in a year.Independent analysis has shown that in communities wherePAF intervention is for more than 6 months, consumptiongrowth has increased by 49 per cent, and we have witnessedsignificant improvement in gender empowerment, health andeducation status and social capital and assets formation.Building on the success and learning, we are working on finetuningour approach to cover the hardcore, embrace pocketbaseddevelopment approach and make the communityorganizations self-sustaining.In view of the wide varieties of activities undertaken withinthe sub-projects of PAF-led programme, the challenges facedfor sustainability of the sub-projects include the linkage withmarket for sustaining income-generating activities as well asthe availibility of insurance and safety-nets, particularly forlivestock. PAF is also to explore an alternative to livestock -basedactivities for landless poor as the huge demand at present ismainly related with livestock. Another important issue beforePAF is to build the community capacity to manage RevolvingFund and operate the sub-projects and raise the awareness ofthe community through functional literacy. Also, there is a needto adopt different approach for poorest districts and districtswith greater access and livelihood opportunities and specialsupport to vulneranble poor and backward ethnic groups suchas Mushhar, Dom, Chamar, Raute, among others.PAF is working on its exit strategy focusing on its strategicthrust to enable community to go to a sustained path to get outof poverty within a stipulated 5-6 years of time. In this line, PAFis now embracing a pocket area development approach basedon the potential strength of the area. Monitoring, Researchand Development is being further strengthened to supportthe programme implementation including capacity buildingof main actors i.e. community organizations(CO), PartnerOrganizations(PO), local bodies and PAF.Based on lessons learned, PAF is now working on the expansionof its programme in new VDCs and districts and importantinitiatives are taken for the institutionalization of CommunityOrganizations as co-operative or other forms of institution andlink with financial institutions and markets where programmeis already in implementation. Also the PAF is laying specialemphasis on the capacity building of community organizations,partner organizations and PAF while co-ordination andcollaboration is being accorded high priority.I look forward to the support from all in our campaign to fightagainst poverty.Janak Raj JoshiVice ChairmanPAFANNUAL PROGRESS REPORT (2010/2011)i

List of Abbreviations and AcronymsAEPCAlternative Energy Promotion CenterCBSCentral Bureau of StatisticsCDCapacity DevelopmentCOCommunity OrganizationCICommunity InfrastructureCOPCommunity Organization of PoorCBCapacity BuildingCCPCommunity Contribution PlanCBOsCommunity Based OrganizationsCGCommunity GroupCIPCommunity Infrastructure ProjectDDCDistrict Development CommitteeDNPWCDepartment of National Park and Wildlife ConservationEIAEnvironmental Impact AssessmentFPCRTFFood Price Crisis Response Trust FundFMRFinancial Management ReportFNCCIFederation of Nepalese Chamber of Commerce and IndustriesGOsGovernmental OrganizationsGIZGerman International CooperationGoNGovernment of NepalIGIncome GenerationIEEInitial Environmental ExaminationIESEInitial Environmental and Social ExaminationIDAInternational Development Agency, World BankIFADInternational Fund for Agriculture DevelopmentLDOLocal Development OfficerLDFLocal Development FundLFLPLeasehold Forestry and Livestock ProgramMDGsMillennium Development GoalsMISManagement Information SystemMLDMinistry of Local DevelopmentMoUMemorandum of UnderstandingNDMNepal Development Market PlaceNEANepal Electricity AuthorityNGOsNon Governmental OrganizationsNPCNational Planning CommissionNOANon Operating AccountOAOperating AccountOAGOffice of the Auditor GeneralO and MOperation and MaintenancePAFPoverty Alleviation FundPOPartner OrganizationPSOsPrivate Sector OrganizationsPMPortfolio ManagerPMRProject Management ReportRBBRastriya Banijya BankREDPRural Energy Development ProgrammeRCIWRural Community Infrastructure WorksR & DResearch and DevelopmentSMSocial MobilizationSAsService AgenciesSNVNetherlands Development OrganizationSRISystem of Rice IntensificationTACTechnical Appraisal CommitteeTUTribhuwan UniversityUGUser GroupUNICEFUnited Nations International Children’s Emergency FundUSAIDUnited States Agency for International DevelopmentUSDUnited States DollarVDCVillage Development CommitteeVCDPVulnerable Community Development PlanWFPWorld Food ProgrammeWBWorld Bankii ANNUAL PROGRESS REPORT (2010/2011)

LIST OF Success StorIESSoap Factory Set Up in Gokuleshwor 7Watch, Radio Shop Earn Livelihood 14Livestock Insurance Providing Boon for Community 31Pig Farming Transforms Lives of Dalits 32LIST OF ANNEXESAnnex 1: Current Board of Governors (as of January 2012) 40Ex-Board Members Who Served During The Reporting Year (Fy 2010-11)Annex 2: CO registration, agreement for sub-project and disbursement status(Fiscal year 2010/11 only) 41Annex 3: CO registration, agreement for sub-project and disbursement status (Cumulative) 42Annex 4: POs, COs and Coverage (Fiscal year 2010/11 only) 43Annex 5: POs, COs and Coverage (cumulative to date)c 45Annex 6: PAF in Terai Border VDCs 47Annex 7: PAF in Karnali 47Annex 8: Community Institutional Development 48List of CO Federations in DistrictsAnnex 9: Status of the On-going Innovative Sub-projects 49List of Cooperatives formed through CO’s initiatives in DistrictsAnnex 10: Various Trainings to The Members of COs By Districts 50Annex 11: PO Capacity Development Status 54Annex 12: Gross Annual Income Change of CO members 55Annex 13: Summary Results of Revolving Fund Status 2010 57Annex 14: PAF Result Matrix 58Annex 15: Year wise Target vs. Achievements 61Annex 16: Details of expenditure up to July 16, 2011 (Cumulative PAF-I and PAF-II) 61Annex 17 (1): Program Funding Status of FY-2067/68 (2010/11 only) 62Annex 17 (2): District wise Target Vs Achievement in FY-2067/68 (2010/11 only) 63Annex 18: Poverty Alleviation Fund Project – II Progress Status 65Annex19: PAF II CO registration, agreement for sub-project anddisbursement status (cumulative) 66Annex 20: PAF II Expenditure (in NRs.) 67Annex 21: Summary Results of Follow-on Impact Survey 2010(Done by TU and the World Bank) 68Annex 22: Un-audited Financial Statement for FY 2010-11 70Annex 22: Un-audited Project Account for FY 2010-11 72Annex 24: Current Staff List (as of January 2012) 91

ExecutiveDirector’sReportMaking Communities EmpoweredInour continued crusade against poverty, the reportingyear has remained important for many reasons.Firstly, different impact evaluation studies haveconfirmed that PAF has helped to raise per capitaconsumption, average income, food sufficiency, child schoolingand access to services and women's empowerment. PAF hasalso created and improved community assets in rural areasbenefiting large number of the rural population. These findingsare the results of a comprehensive and independent follow- upstudy done in 2010 in the 6 sample districts conducted by TUand two separate studies on social re-assessment and revolvingfund by PAF itself.Secondly, PAF was able to receive the additional financing ofUS$ 75 million to strengthen its impact on the lives of the poorand cover additional poor households under the programme.The government of Nepal and WB signed a grant agreement onJuly 13, 2011 for the additional funding for the ongoing secondphase of PAF. Also, PAF has added more strategic partnersduring the year as several Memorandum of Understandings(MoUs) have also been signed with different organizations atcentral level to facilitate different task as well as to facilitatecollaboration in implementation of sub-projects at communitylevel with complementarities.Seven years on the ground, a total of 17,898 communityorganizations (COs) of poor are registered with PAF, out of whichPAF has already inked agreements with 16,819 COs. In their bidto sustainability and institutional growth, communities have alsobegun to build federations, network of COs and co-operatives.So far, 53 Multi-purpose co-operatives and 547 federationof COs have already been formed. The PAF supported COsare currently pursuing 16, 576 Income Generation and 3039Infrastructure related sub-projects till the end of the reportingperiod.Reaching Out to the PoorPAF is now currently working in 40 poorest districts definedby the Central Bureau of Statistics while additional 19 districtsare also covered under separate innovotive window and NepalDevelopment Market Place (NDM). Among the 40 districts,PAF is working in 71 per cent of total VDCs (87 per cent in 25districts and 50 per cent in 15 districts).All five districts of the Karnali zone are covered by theprogramme. Till date, programme has reached 134 VDCs i.e.100 per cent of 134 VDCs in Karnali and benefitted 54,329 poorhouseholds while Programme is covering Ten (10) districts inTerai (Mahottari, Rautahat, Sarlahi, Kapilbastu, Siraha, Bara,Bardiya, Dhanusa, Parsa, Saptari) and benefitted 159,647HHscovering 590 VDCs (i.e. 17 per cent of poor HHs and 52 percent of VDCs). Out of 146 border VDCs of Kapilbastu, Mahottari,Rautahat, Sarlahi and Siraha among above Terai districts, PAFprogram coveres 95 VDCs (i.e. 65 per cent) and benifitted20,015 HHsFurther, innnovative pocket programme is still continued inMakawanpur, Morang, Kanchanpur and Chitwan districts. It hasreached additional 13,376 poor households in 48 VDCs in thosedistricts.In an overall scenario, PAF has covered 470,021 poor HHsas CO member beneficiaries, among which a total of 65.8per cent members falls under hardcore poor category (foodsufficiency less than 3 months among other criteria fixed bythe communities), 25.41 per cent members falls under mediumpoor category (food sufficiency more than 3 months but lessthan 6 months among other criteria set by the communities), 8.6per cent members falls under poor category (food sufficiencymore than 6 months but less than a year among other criteriaset by the communities) and 0.2 per cent members falls undermarginal “non-poor” Category.Likewise, CO member households constitutes 29 per cent Dalit,28 per cent Janajati, 3 per cent Muslim, 30 per cent Brahmin/Chhetri and 10 per cent other caste and ethnicity. Gender-wise,74 per cent are female members in COs.Similarly, the key position holders in the community organisationsuch as president, treasurer, secretary constitutes, 34 per centDalit, 27 per cent Janajati, and 2 per cent Muslims and 29 per centBrahman/Chettri, and 8 per cent from other caste and ethnicity.Gender-wise, 62 per cent key position holders in CO are female.When per centage beneficiery of PAF by caste and ethnicity iscompared with district per centage ethnicity composition(asANNUAL PROGRESS REPORT (2010/2011)v

Budget ExpenditureOut of the total PAF expenditure upto FY 2067/68 (2010/11),93.52 per cent is from IDA (International Development AgencytheWorld Bank) grant, 2.21 per cent is from IFAD (InternationalFund for Agriculture Development) grant and the rest 4.26 percent from GoN (Government of Nepal).In this FY 2067/68 (2010/11), total expenditure is Rs.2,60,12,83,022.25 which is 85.59 per cent of total budget ofRs.3, 039,166,000. Currently the PAF Project II is funded by IDAGrant with US$ 100m and IFAD Grant of US$ 4m for four yearstill January 2012. IDA disbursement to this PAF II project tilldate is 98.49 per cent (as advance) i.e. equivalent to about US$98.49m. IFAD disbursement to PAF till the end of the reportingperiod is US$ 2.29m.Recently, IDA hs agreed to provide additional finacing of US$75m (out of which US$65m is from IDA grant and US$ 10mgrant is from FPCRTF) for PAF II project.Lessons and ChallengesIn view of the wide varieties of activities undertaken within thesub-project, the challenges faced for sustainability of the subprojectsinclude the linkage with market for sustaining incomegeneratingactivities as well as the availibility of InsuranceSafety-Net particularly for livestock. PAF is also to explore analternative to livestock based activities for landless poor asthere still persists a trend of huge demand of livestock relatedsub-projects. Another important issue before PAF is to build thecommunity’s capacity to manage revolving fund and operatethe sub-projects sustainably. It also need to raise the awarenessof the community through functional literactcy. Similarly, thereis a need to adopt different approach for poorest districts anddistricts with greater access and livelihood opportunities andspecial support to vulnernble poor, marginalized ethnic groupssuch as Mushhar, Dom, Chamar, Raute, among others.While working towards above challenges, it is inevitable towork with diversified groups of poor communities supportingeach other and network for linkages and collaboration withother programmes and line agencies to support communities.Further, legal institutionalization of Community Organizationsthrough coalition or formation of functional co-operativesand establishment of strong linkages with VDC/ DDC are alsoimportant for sustainability and long-term support to thesecommunity groups. PAF is also initiating dialogue to formulatea separate act to govern community organizations and selfhelp groups to avoide duplications and sustain communityefforts.PAF is working with its exit strategy focusing on its strategicthrust to enable community to go to sustained path to get outof poverty within a stipulated 5-6 years of time. In this line, PAFneeds to work on pocket area development approach based onthe strength local potentials and at the same time, focus will begiven to nutrition improvement by diversifying production andproviding special focus to marginalized community groups.The emphasis will be given for infrastructural developmentto support these initiatives. Monitoring, Research andDevelopment needs to be further strengthened to support theimplementation including capacity building of main actors i.e.CO, PO, Local Bodies and PAF.The future strategyBased on lessons learned, PAF will work for the expansionof its programme in new VDCs and districts and importantinitiatives will be taken for the institutionalization of CommunityOrganizations as co-operative or other forms of institutionas per their decision and link with financial institutions andmarkets where programme is already in implementation. PAFwill also emphasize on the capacity Building of communityorganizations, partner organizations and PAF while Coordinationand collaboration would also be accorded highpriority. This year onwards PAF is strenghening on syststematicGrievance Handling Process with stakeholders views on theeffective Performance Management System of COs, POs andPAF secretariat.We look forward to work together with all stakeholders in thedays to come.Thank you.Raj Babu ShresthaExecutive DirectorANNUAL PROGRESS REPORT (2010/2011)vii

Chapter 1:Introduction1.1. PAF introductionA quarter of the Nepali population still lives below poverty line. Themajorities of the poor live predominantly in rural areas and engage intraditional and subsistence farming on small plots of low quality land,have limited access to credit, infrastructure, markets and basic socialservices, often because of remoteness, and rely heavily on seasonalmigration and remittance.Poverty Alleviation Fund (PAF) was established in 2004 as a specialand targeted programme to bring the excluded communities in themainstream of development, by involving the poor and disadvantagedgroups themselves in the driving seat of development efforts. PAF iscontributing on bringing the level of poverty down to 10 per cent in20 years in pursuant with the long term goal of Government of Nepal;and reduce poverty by half by the year 2015 as per the MillenniumDevelopment Goals (MDGs).1.2. The StrategyPAF has taken strategy to enable poor people through social mobilizationand capacity building to organize and obtain quality basic services incost-effective and sustainable manner with their direct involvement.PAF uses Partner Organizations (POs) to help facilitate poor vulnerablepeople and their community Groups or Organizations to implement theprogramme components, and they include local bodies, NGOs/ CBOsand private sector organizations. PAF also seeks to forge partnershipwith various organizations working in its areas of operation at thevillage, district and national level in order to ensure holistic developmentintervention to bring discernible impact on poverty reduction and scalingup the programmes in considerably less time1.3. The ApproachPAF has followed six guiding principles: namely (a) Targeted to the poor(Antodaya) (b) Social Inclusion (Samabesi) (c) Demand Driven approach(Maag Anusar) (d) Transparency (Pardarsita), (e) Direct funding tocommunity organizations of the poor (Prataksha Bhuktani), and (f)Community Institutional Development (Samudaya Ko Sansthagat Bikash).Social Mobilization, Income Generation, Small CommunityInfrastructure Development and Capacity Building are the four majorprogramme components of PAF. The target beneficiaries of PAF are thepoor women, Dalit, Janajatis, and the vulnerable communities livingbelow the poverty line.1.4. Institutional ArrangementsInitially established by an ordinance in 2004, PAF is governed by an actsince 2006, thus PAF is an autonomous, independent and professionalorganization governed by separate law. The 12- member governingboard, chaired by the Prime Minister, is responsible for policy guidanceand programme approval.Vice-chairperson and 5 members- are appointed by the government fromamong the development professionals while other 5 ex-officio membersinclude National Planning Commission (NPC) Secretary, Chairman ofthe Association of District Development Committees of Nepal (ADDCN),Chairman of Association of Village Development Committees of Nepal(AVDCN), Chairman of National Women Commission (NWC), andChairman of National Dalit Commission (NDC).Currently, the PAF secretariat consists of 62 staffs, mostly professional,recruited on a competitive basis. A total of 370 partner organizationswork on behalf of the poor in 40 programme districts.1.5. Programme Components(a) Small-Scale Village and Community Infrastructure: Given theremoteness of many communities and the virtual non-existence of publicinfrastructure services, small investments in infrastructure and servicescan make a significant difference to poor communities. The communitiesare often very clear on what they need, and are willing to contribute tosub-projects within their means. Consideration is given to sub-projectsalready included in VDC plans and/or where the District DevelopmentCommittee (DDC) and/or VDC are prepared to provide matching grants.Key selection criteria include the number of target households that wouldbenefit and the expected employment impact. In addition, infrastructuresub-projects would require communities to prepare and commit to arealistic Operations and Maintenance (O&M) plan. Partner organizationsANNUAL PROGRESS REPORT (2010/2011) 1

(POs) would also be used to facilitate the process of communityorganization and capacity building in advance for the preparation of subprojectproposals. Community contributions would average 10%, withadjustments made for very remote and difficult areas. In the sectorswhere policies are in place that require a higher community contribution(e.g., 20% in rural water, with possible adjustments for very remote orpoor communities), such rates would be applied to ensure consistency.Examples of sub-projects implemented to date under PAF include linkroads, culverts, footbridges, micro-hydro, micro-irrigation, water supplyand sanitation schemes, and community meeting halls, schools, healthfacilities and other small-scale infrastructure.(b) Income Generating Sub-projects: Matching grants is providedto self-selected groups of poor and excluded people for incomegenerationactivities, based on objective criteria including ethnicity,caste, gender and poverty levels. Beneficiaries contribute 10 per centof the sub-project cost in cash. A proportion of the grants is reservedfor technical assistance to be contracted by communities themselvesin areas where they felt such need. Under PAF I, communities have haddiscretion as to how to manage the funds received, with a number ofthem choosing to revolve the funds within their group. Under PAF II,any groups choosing to manage resources in this way are receivingtraining in community-managed finance – under the capacity buildingcomponent – with a view to strengthen them to eventually have accesssponsored by organizations representing or working with the targetgroups, target groups themselves and/or local bodies. Examples underthe first phase of PAF have included innovations such as arsenic filters,forest based cardamom cultivation, evaporative cooling technology forfood preservation and women’s health projects.(d) Capacity Building: This would include five sub-components:(i) Social Mobilization of Community Groups: This subcomponentis supporting training/skills development for POsthemselves and for capacity building of community groups. POsare selected to work in target areas to disseminate informationabout the project, mobilize community groups, work with them indeveloping sub-project proposals and develop their skills in projectmanagement, financial management (FM), procurement, monitoringand evaluation etc. where local governments are functioning,POs are also liaised with them to ensure that the proposed subprojectsare consistent with VDC plans and priorities. In addition tomobilization of communities, capacity of POs themselves is alsobuilt under this sub-component, such that they are sensitive to keysocial, environmental and livelihoods-related issues such as gender,caste, disability, sustainability, accountability and local governance,natural resource management, and market linkages, etc. Moreimportantly, POs are partnered exclusively for social mobilization,facilitation, technical backstopping and monitoring of COs.to broader financial services for livelihoods initiatives. As with other subprojects,POs are contracted by the PAF to work with all communities,including through locally selected community facilitators, to assist inparticipatory processes, group formation, and development of soundsub-project proposals. Particular attention is paid to the commercial/economic viability of income-generating sub-projects to avoid the riskof supply or NGO driven proposals which are not sufficiently well linkedwith markets. Common examples to date under PAF have includedmicro-irrigation, micro enterprises/service sector activities, artisan/crafts, land productivity investments, trading and animal husbandry.Analysis of a representative sample of these investments shows incomeincreases for beneficiary households of 10-15%.(c) Innovation and Special Programs: An innovation window iscontinued to support proposals meriting special consideration owingto exceptional needs in a given context, or demonstrating innovativeways to improve livelihoods development and reach targeted groups.These proposals can be national or regional in coverage and may be(ii) Capacity Building for Local Bodies: The extent ofdecentralization in Nepal is limited, particularly given the continuedabsence of elected local bodies which were dissolved during theconflict period. With a view to supporting intermediary deliverychannels that lay the foundation for strengthened local government,this sub-component is focusing on building capacity of functioningand interested local bodies (VDCs, DDCs) in pro-poor planning andmonitoring, and other relevant topics to promote inclusive planningand service delivery for local development, as well as on the rules ofoperation of the PAF in order to enable local bodies to assist groupsand communities to access PAF resources.(iii) Capacity Building for Target Groups Engaged in Income-Generating Activities: All sub-projects include some provision fortechnical assistance as needed, but groups engaged in incomegeneratingactivities may require more support to help prepare forthe activity or to help implement it successfully. Therefore, this subcomponentwould focus on developing skills such as marketing,2 ANNUAL PROGRESS REPORT (2010/2011)

transport logistics, financing, and quality control. A capacity buildingagency would be contracted by PAF to work with community groupsto identify needs, develop capacity-building plans and procurerelevant technical assistance.(iv) Support to Rural and Community Finance: There is ampleevidence that the vast majority of PAF beneficiaries do not haveaccess to rural financial services, including microfinance lending.With a view to the longer-term sustainability and growth of thecommunity Income Generating Activities (IGAs) and enterprises,PAF is supporting training for community-managed finance in orderto strengthen institutions and encourage eventual access to broaderfinancial services for livelihood support. To achieve this objective,this sub-component would finance mapping and monitoringof those emergent groups revolving their PAF grant funds andmobilizing savings; provide training and capacity building support tostrengthen these activities; explore linkages to financial institutionsand relevant partners; and support PAF’s articulation of a longerterm vision or ‘graduation strategy’ for viable community institutionsand enterprises.(v) Information, Monitoring and Evaluation: This subcomponentinclude: (a) dissemination of information about theproject and other public sector programmes; (b) support forPAF’s management information system (MIS), which will needto be expanded to accommodate the scaled-up programme; (c)structured monitoring activities, including field visits to assessprogress; (d) regular beneficiary assessments, including qualitativefield work; and (e) follow-on impact assessment surveys to refineand monitor against the projectInstitutional andimplementation arrangementsAt the national level, overall project management responsibility is withthe PAF Board, chaired by the Prime Minister. The Vice Chairmanfunctions as a full time executive of PAF, and the Board includes ten otherMembers. The Executive Director of PAF serves the Secretary of theBoard. The ex-officio members are the Secretary of the National PlanningCommission, the Chairpersons of the Federation of District DevelopmentCommittee, the Village Development Committee, the National Women’sCommission and National Dalit Commission. Other appointed membersare five prominent professional persons, including a woman, who havecontributed to poverty alleviation in Nepal. PAF has a lean structurewith a limited number of staff who have been recruited on fixed termcontracts on a competitive basis, and a number of consultants and/orNGOs who are retained to support operations as needed.At the regional level, PAF is seeking to establish offices in those locationswhere the volume of work requires a presence, but keeps its own staffto a minimum. PAF works through POs which it recruits competitively,for purposes of social mobilization and capacity building at thecommunity level. These POs disseminate information about the project,mobilize community groups, work with them and build their capacityto develop and manage sub-project proposals, and monitor the qualityof participation. POs can be NGOs; community based organizations,or VDCs/DDCs, provided they meet PAF eligibility criteria. POs arerequired to appoint community facilitators in each target village, whomust be trusted by and selected in consultation with the communities,with attention to PAF’s aim of reaching excluded groups. POs also liaisewith local bodies to ensure that proposed infrastructure sub-projectsare consistent with VDC/DDC plans and priorities. While POs may beentrusted by community groups to submit final sub-project proposalsto PAF, once approved, grant funds flow directly to communities and notthrough POs.At the community level, PAF supports two types of sub-projects: (i) smallscalevillage infrastructure and services, and (ii) income generation. Thesame basic rules apply: sub-project proposals are identified by groupsof poor people (which could include members of a village or severalvillages) who come together as community groups/organizations (COs);decisions regarding sub-projects are participatory and inclusive, and thisis carefully monitored; the community groups make cash contributions;there are ceilings on the investment per household and on the size ofeach sub-project; and funds for implementation of sub-projects andtechnical assistance are deposited in community bank accounts.The village-level project cycle comprises: (a) community mobilization;(b) sub-project preparation including development of an operationsand maintenance plan; (c) appraisal; (d) approval by the PAF TechnicalAppraisal Committee (TAC) and (e) implementation. Where localgovernments are operational, the DDCs and the VDCs also need toendorse infrastructure sub-projects. Final sub-project proposals areappraised by PAF staff and approved by the Board, although approvalauthority can be delegated to Portfolio Manager.Links with Local GovernmentsPAF’s institutional arrangements at the local level is linked withgovernment local bodies in the following way: (i) there is a dedicatedcomponent on capacity building for local bodies (ii) DDC/VDCs can bePOs; (iii) all infrastructure sub-projects that are going to be financedthrough PAF have to be incorporated in VDC and the DDC annual plans;and (iv) for larger infrastructure demands from communities, VDCsand DDCs can co-finance any investment as long as PAF rules andcriteria are met.ANNUAL PROGRESS REPORT (2010/2011) 3

4 ANNUAL PROGRESS REPORT (2010/2011)

Chapter 2:PAF Progress andAchievementsThis chapter discusses the annual achievements againstthe target and overall implementation status of thedifferent programme components during the reportingperiod as well as the cumulative achievements2.1. Annual Achievements Against TargetsPAF had set a definite target in its key components--social mobilization, income generation, community infrastructure activities, capacity building andinnovative sub-projects. The table below summarizes the achievements of the reporting year against the annual target:Table 1: Annual Achievements against targets for FY 2010-11Description Annual Target Physical Progress Progress %Income Generation Sub-Projects 1,738 2,790 161Infrastructure Sub-Projects 395 338 86Innovative Sub-Projects 60 20 33Total Sub-Projects 2,193 3,148 144Beneficiary HHs(including Infra sub-projects) 85,000 75,629 89Programme Funding status for the reporting year Rs. 3,039,166,000 Rs. 2,601,283,022.25 85.59For the reporting year 2010-11, the achievement in income generations sub-projects was far above the target i.e. 161 per cent while for infrastructurerelated projects the achievement was above 86 per cent. In case of innovative sub-projects, PAF had set an annual outputs of 60 sub-projects, whilethe achievements has stood at only 20 (33 per cent). Similarly, in the case of PAF expenditure for the reporting year, the achievement was 85.59 percent against the project expenditure target of 3,039.1 million (Annex 17).2.2. Component wise progress status2.2.1. Social MobilizationThe objective of the social mobilization is to build up capacity of communities for preparation, design, implementation, operation and management ofcommunity sub-projects to enhance their livelihoods.1. Demand Driven Community Proposal and Direct Funding1.1. Community Organizations, Sub-projects and InvestmentsA total of 17,898 community organizations (COs) were registered with PAF (2,007 in Mountain, 9,653 in Hilly region and 5,773 in Terai districts and465 through Innovative Window Programme Districts) till the end of the reporting year.Of the total registered COs, PAF has inked agreements with 16,819 COs (1,862 in Mountain, 8,818 in Hilly region and 5,698 in Terai districts andremaining 441 in Innovative Window Programme Districts) to implement different IG and community infrastructures related sub-projects.During the reporting year, 3,070 COs were registered and 2,832 COs were entered into agreement with PAF for implementing the comunity sub projects.Similarly, 3,148 number of agreements were done for various IG and INFRA subprojects (refer Table 2 on next page).ANNUAL PROGRESS REPORT (2010/2011) 5

Table 2: CO registration, CO Agreement and Sub-project AgreementFY 2010/11CumulativeCategoriesNo. of Regd. COsAgreementNo. of Regd. COsAgreementNo. of COs No. Of Agreement No. of COs No. Of AgreementMountain 611 519 590 2,007 1,862 2,100Hills 1367 1,149 1,309 9,653 8,818 10,198Terai 1,066 1,144 1,229 5,773 5,698 5,888Innovative Districts 26 20 20 465 441 492Grand total 3,070 2,832 3,148 17,898 16,819 18,678In the case of income generation, the most demanded activities from the community are related to agriculture, livestock, cottage industries, trade andskill based services. Similarly, infrastructure sub-projects are related to micro-irrigation, link road, culvert/bridge, ropeway, electricity/micro-hydro,water mill, water supply, sanitation, school and health post building, among others.Table 3: PAF investment to the Community Sub -projectsCategoriesFY 2010/11(Million Rs.)Cumulative (Million Rs.)IG Infra Total IG Infra TotalMountain 191.812 59.104 250.916 919.531 189.628 1,109.159Hills 451.545 194.918 646.462 3,640.130 1,350.903 4,997.322Terai 614.779 90.399 705.177 2,535.484 341.379 2,871.525Innovative Districts 6.023 0 6.023 153.826 51.475 205.302Grand total 1,264.157 344.421 1,608.578 7,248.973 1,933.386 9,183.310Till the end of previous FY 2009/10, agreements were made with 13,987 COs amounting to Rs. 7,574m while during the reporting year alone additional2,832 COs signed agreement amounting to 1,608m. Therefore in cumulative terms, agreements were made with 16,819 COs amounting Rs. 9,183mtill the end of reporting year i.e. FY 2010/11. Details are illustrated in Annex 2, Annex 3, Annex 4 and Annex 5. PAF coverage in Terai border VDCs andKarnali region is given in Annex 6 and Annex 7.1.2. Programme Cost Sharing (Investment—IG Vs Infra, PAF Vs Community)PAF alone has invested Rs. 1,263m in IG activities during the reporting year against the total cumulative investment of Rs. 7,248m till the end of thereporting year. In the case of Infra. schemes, PAF invested 344m during the reporting year while cumulative investment has remained at Rs. 1933m.Overall, out of the total PAF investment, 79 per cent has been made in income generating sub-projects and 21 per cent has been funneled in infrastructurerelated sub-projects.In terms of region-wise investment, PAF has invested the highest amount for IG sub-projects in hilly region, followed by Terai, mountain and innovativedistricts. Similar investment trends is maintained in infra sub-projects as well (See in chart).In cumulative average, community sharing is 15 per cent (13 per cent in cash and 2 per cent in kind) of the total sub-project cost whereas others, mainlythe VDCs and DDCs, have shared 1 per cent of the total sub-project cost. In total, PAF has invested 80 per cent of the community sub-projects cost.chart 1: PAF Investment Income Generation Vs Infrastructurechart 2: PAF InvestmentAmount21%4,500,000,0004,000,000,0003,500,000,000IGPAF (INFRA)PAF (IG)3,000,000,0002,500,000,0002,000,000,0001,500,000,000INFRAIG79%1,000,000,000500,000,0000IGINFRAINFRAHill Mountain TeraiRegion6 ANNUAL PROGRESS REPORT (2010/2011)

chart 3: Contribution in Sub-projects (IG+INGRA)chart 4: Contribution in INFRA sub-projectsOthers4%Others7%DDC/VDC2%PAF80%DDC/VDC1%PO0%CO Kind2%PAF66%CO Kind24%CO Cash13%CO Cash1%Soap factory set upin GokuleshworImplementation of PAF programmes in Gokulehswor, Baitadihas reached 5 years. Even while majority of the CO membersin the village remained happy pursuing traditional means ofincome generation like livestock rearing and animal husbandry,some of the members of Siddhanath CO chose to implementmanufacturing enterprise.Given that demand of soap always remained high the villageand nearby markets and there were no producers to make thesupply, some of the members of 23-member Siddhanath COof Gokuleshwor VDC - 9 assessed there was a huge market ofwashing soaps and they could tap that potential by establishinga soap manufacturing enterprise.Following the release of the first installment from PAF, the COorganized 12-day training on how to produce washing soaps.The trainings were attended 19 community members, including6 members of Siddhanath CO, 6 members of Janashakti COand 7 members of Devati CO. After the training, however, themembers realized they need huge monetary input to actuallymaterialze their plan and if they failed to compete, they willsuffer a huge loss. This realization forced many to drop the idea.However, Kalpana Nath and Ram Nath, chairman and treasurer ofSiddhanath CO respectively had different idea. They committedthemselves to set up the factory and even registered ‘ChaulaniSoap Industry’ at the Office of the Cottage and Small IndustriesDevelopment Committee (OoCSIDC) in Baitadi.They even inaugurated the industry in the presence of OoCSIDCChief Nrit Bahadur Bogati, Chairman of Rural Development SericeCenter Bishnu Datta Joshi and local political representatives andprominent local personalities on February 23, 2011.“We had planned to start the industry by taking loans of Rs15,000 each from the CO. But procurement of fixed assets alonehas crossed over Rs 275,000, said Kalpana Nath. Thankfully,PAF contributed Rs 120,000 in this process and the membersacquired raw materials investing Rs 125,000.Still good news was; contrary to initial skepticism, they havenot yet faced any problems over finding the marker. “We werenot even required to send soaps in the market. Retailers comedirectly in the factory and take away their orders,” said RamNath, another promoter of the soap factory.The factory has set wholesale price of soap (each weighingin a range of 170 grams to 180 grams) at Rs 9 per piece andtraders are happily retailing it at Rs 10. “We required huge initialinvestment because we needed to source the raw materials fromBareli and Pilbhiti of India. Otherwise, we are enjoying prettygood business and soung return,” said Ram Nath.Success StoryANNUAL PROGRESS REPORT (2010/2011) 7

Caste and ethnicity wise distribution of CO members in terms of region shows that Dalit dominates in the Terai region and Chhettri in hilly and Janajatiin mountain regions. (see diagram).chart 7: CO Members-Ethinicity Wisechart 8: Ethnicity Wise CO MembersNumber3%10%29%DalitJanajati120000100000cD jb24%Bramhin800006%28%ChhetriMuslimOthers6000040000200000Djjm o cmDb m ob cHill Mountain TeraioRegion3.4. CO Members by GenderFemale CO members have the lion’s share in terms of community participation and membership with 74 per cent. They are highest in hillly region andfollowed by Terai region and mountain region (See Chart 9, 10).chart 9: CO Members Gender-wisechart 10: CO Members-Ethinicity WiseNumber250000Female26%MaleFemale200000150000100000MaleFemale74%50000FemaleMaleMaleHill Mountain TeraiRegionANNUAL PROGRESS REPORT (2010/2011) 9

chart 12: IG activities investment by sector and regionPercentage90%80%70%60%50%40%30%20%10%0%FY2061/62FY2062/63PAF Investment in COsFY2063/64FY2064/65FY2065/66FY2066/67FY2067/68Income Generation 60.80% 65.20% 82.50% 74.20% 72.00% 64.70% 76.50%Community Infrastructure 32.50% 26.50% 7.60% 18.00% 20.40% 28.80% 21.50%Community Capacity Building 4.90% 5.90% 6.00% 5.00% 4.40% 3.70% 1.40%CO Management, M&E 1.80% 2.50% 2.90% 2.80% 3.10% 2.80% 0.70%In terms of investment, the ratios of IG sectorcontinuously increased to 84 per cent of total investmentin FY 2063/64 from 61 per cent in FY 2061/62, and thenstarted to decrease to 64.7 per cent in FY 2066/67. Thegraph shows that investment on IG sector has constantlyincreased till FY 2063/64 and then started to decrease.Being income generation activities as first choice of poor,IG investment again increased in FY 2010/11due to theexpansion of PAF coverage in new fifteen districts.Income generation activities can be grouped into differentsector like, agriculture, livestock, service, trading,manufacturing and others. PAF investment by sectorsas well as households involved in each sector has beenpresented in table and charts below. The following dataon PAF investment in income generating sub-projectsdoes not include the investment related to COs’ capacitybuilding and institutional management cost.Table 6 : Sector wise income generation activities by households and PAF investmentS.N.SectorsFY 2067/68Cumulative achievementsHHs Amt (in M) % of HHs % of Invest. HHs Amt (in M) % of HHs % of Invest1 Agriculture 6,266 80.05 10.70% 7.0% 49,069 415.56 11% 6.34%2 Livestock 43,039 814.99 73.49% 71.0% 304,314 4,660.30 68% 71.15%3 Service 197 56.28 0.34% 4.9% 18,207 254.61 4% 3.89%4 Trading 7,990 178.65 13.64% 15.6% 65,780 1,110.42 15% 16.95%5 Manufacturing 1,076 17.95 1.84% 1.6% 12,474 108.91 3% 1.66%Total 58,568 1,147.91 100.00% 100.0% 449,844 6,549.80 100% 100.00%The people living in rural areas have a limited access to basic infrastructures like road, electricity, market as well as information, resulting more demandof livestock activities as income generation sub-projects.Livestock sector is the largest portfolio of IG activities by investment as well as HHs involved. About 71 per cent of PAF support is disbursed to thissector and 68 per cent of IG beneficiaries’ households are engaged, followed by trade related activities with 17 per cent, agriculture related with 6 percent, service sector with 4 per cent, manufacturing and others activities with about 2 per cent.Out of total households 304,314 involved in livestock husbandry, about 33 per cent is engaged in milk production through buffalo and cow raising,60 per cent in meat production, 5 per cent in ox/he buffalo raising for farming /breeding and the rest 2 per cent for transportation purpose.Of thetotal investment of Rs 466 millions in livestock sector, about 49 per cent is in meat production followed by 41 per cent in milk production, 5 per centin breeding/farming, 3 per cent in transportation and rest 1 per cent in livestock support activities. The trends of investment in different category inlivestock sector is presented in chart.chart 13: Investment in IGA by Sectorchart 14: Investment in IGA by Sector5% 3%2%4%17%71%2% 6% LivestockServiceTradingManufacturingAgriculture49%41%Breeding/FarmingTransportationLivestock Management ActivitiesMilk ProductionMeat ProductionANNUAL PROGRESS REPORT (2010/2011) 11

chart 15: Trend of Investment in Livestock Activities60%50%40%30%20%10%0%061/62 062/63 063/64 064/65 065/66 067/68 066/67Milk ProductionBreeding/FarmingLivestock Management ActivitiesMeat ProductionTransportationchart 16: Investment in Livestock Activities by Region70%60%50%40%30%20%10%0%65%28%15%1% 3% 2%1%0% 2% 0%Hill Mountain TeraiLivestock Management ActivitiesLivestock for Meat ProductionLivestock for Milk Production57%28%18%13%Livestock for TransportationLivestock for Breedign/Farming66%The variation of communities demand across the geographical region,accessible and non accessible areas reveals that the communities aresmart enough in selection of activities based on accessibility, existingnatural resources, and potential markets opportunities.In Terai region, market of fresh milk is relatively higher and accessibleand the products can be easily marketed with little time and efforts forcollection and transportation. Nearly, 56 per cent of total households(with 66 per cent of total investment in livestock sector in region)pursuing livestock as part of their income generation activity in Terairegion, are rearing buffaloes and cows for milk products, followed by 31per cent (18 per cent of total amount) for meat production and remaining13 per cent (13 per cent of total amount) for farming /breeding purpose.Similarly in Hilly region, 74 per cent HHs (with 65 per cent of totalamount) have been found to be engaged in meat production by rearinggoat, pig, poultry, among others. In the same region, 22 per cent HHs(with 28 per cent of total amount) of livestock raising is done for milkproduction purpose followed by 4 per cent HHs (with 13 per cent oftotal amount) for farming/breeding and transportation purposes. In thecase of Mountain region, 61 per cent of households (with 57 per cent ofamount) are involved in meat production, followed by 28 per cent HHsTable 7: PAF investment in Agriculture sector by category(with 15 per cent of total amount) in milk production and remaining 11per cent for transportation purpose.In addition to animal husbandry, PAF has provided support in itsassociated areas such as animal treatment fund, establishmentof veterinary services, developing village level health workers tosupplement livestock component. In view of the largest investmentportfolio in livestock sector, due emphasis has been laid to establishlinkages with markets and services.Apart from livestock, diverse activities in the agricultural sector havebeen demanded by the communities. The activities thus demandedare system of rice intensification (SRI), vegetable farming in open fieldto tunnel house, seed multiplication, cash crop production, and fruitfarming. Households involved in different agriculture and forest relatedactivities have been presented in the Chart 17 (refer to next page).Out of total 49,069 HHs, 54 per cent households are engaged invegetable farming, followed by 17 per cent in fruit farming, 17 per centin agro-forestry, about 5 per cent in bee keeping and rest in cash crop,fishery etc. PAF investment in different activities and number of involvedhouseholds are presented in table below:FY 2067/68 Cumulative till 2067/68Sub-sectorHHPercentAmount(in M)PercentHHPercentAmount(in M)PercentAgro forestry 604 9.7 2.15 2.1 8138 16.6 28.65 6.9Fruit farming 194 3.1 2.61 2.6 8557 17.4 36.71 8.8Cereal crops 14 0.2 0.23 0.2 430 0.9 1.63 0.4Cash crops 732 11.7 8.89 8.8 2444 5.0 22.29 5.4Vegetable farming 4579 73.4 82.96 81.9 26713 54.4 289.36 69.6Bee keeping 87 1.4 1.88 1.9 2317 4.7 25.78 6.2Fishery 29 0.5 0.95 0.9 470 1.0 7.25 1.7Agriculture Support Activities 0 0.0 1.60 1.6 0.0 3.90 0.9Total 6239 100.0 101.26 100.0 49069 100.0 415.56 100.0Vegetable farming has been proved very lucrative to increase the income of poor within a short interval of time, where market is easily available forfresh vegetables. Under innovative window programme, PAF has also supported vegetable farming in lease land to landless and marginalized people inChitwan district. This programme has helped increase income of the poor, thereby, creating them full time employment.12 ANNUAL PROGRESS REPORT (2010/2011)

chart 17: PAF investment in Agriculture sector by category1%5%Vegetable17%17%1% 5%54%Bee KeepingFisheryAgro ForestryFruit FarmingCereal CropCash CropsIn moutain district like Mugu, green vegetable was outright impossibleduring winter season before PAF intervention. But after PAF arrival, it hasbeen usual to grow commercial vegetables even in winter season with theintroduction of pit green house and solar tunnel house. Such vegetablefarming technology/methodology has been successfully demonstratedand this proven and tested case has induced high potential of scaling upin other areas in the days ahead.Irrespective of better yield but comparatively longer gestation period, thedemand of fruit farming is stumpy. Nonetheless, a promotional activityof fruit farming undertaken by the communities has widened the scopefor scaling up this intervention in coming days.chart 18: Investment in Trading by Business Types5%76%2% 3%7%7%chart 19: Investment in Service sector by Category28%2%5%4%8% 2%14%29%3%5%OthersElectrical GoodsGarmentLivestock RelatedAgri BusinessRetail ShopSwing and CuttingLivestock SupportAgro ProcessingHotel/ResturantBarberRepair and MaintenanceMetal WorksTransportationCommunicationOthersFurther to the above, trading is the second largest portfolio on IG.Altogether, 65780 HHs are engaged in trading business, whilst PAFhas invested NRs 1110 Millions in this sector. Of the total investment,76 per cent has been invested in retail shop, followed by 7 per cent inagriculture related buisines, 7 per cent in livestock and livestock productrelated business, 3 per cent in garment business and rest in otherdifferent types of activities.Analysis in trading sector shows that retail business has largestinvestment in all ecological belts, which accounts more than 65 per centin Terai, 85 per cent in Mountain districts and more than 87 per centin Hill districts. Animal business, wood product business, agricultureinputs, food items related business are other major activities in thissector.Overall, 18,207 HHs are engaged in service sector, where PAF hasinvested about 254 millions. Out of total investment, 245 millions hasbeen invested in income generating social services and rest in socialservices like supports for schools and healthposts, scholarship etc.Tailoring buisiness is one of the largest components of social sectorhaving 29 per cent investment, followed by transportation 28 per cent,small hotels/teashops 14 per cent, repair and maintenance 8 per cent,and rest in other activities like livestock supports, agrovet services etc.A total of 12,474 HHs are involved in manufacturing related business,and PAF investment is about 109 millions in this sector. Out of totalinvestment, about 53 per cent has been in non-agro products relatedmanufacturing activities, followed by 41 per cent in forest productsrelated, agro-processing related 4.3 per cent and rest in fruit processing.Listing of income generation activities shows that there are diversifiedIG activities undertaken by the community members. Of them, livestocksector alone has been verified major activity as compared to other IGactivities. It means, there is still great challenge to provide informedchoices to the people, so that they are able to select suitable IG activitiesbased on their need, local resources, knowledge, skills and availablemarket potentials. A lion’s share of investment in livestock sectordemands more concentration to develop mechanism to provide adequateveterinary services at rural areas. It is unambiguous that to sustain thediverse interventions as specified above, PAF should accord higherpriority to enhance the qualitative capacity of both partner organizationsand community organizations.As COs/HHs activities on Income Generation are being continuedthrough utilization of Revolving Fund managed by the CO, there might beshift in activities based on knowledge and market potentials. This aspectneed to be atudied in future.ANNUAL PROGRESS REPORT (2010/2011) 13

Success Storywatch, radio shopearn livelihoodIf you have skill and dedication, even a watch and radioshop will easily help you earn the livelihood. This is what NojBahadur Ghartimagar of Rajbara-9, Pyuthan has proven.Four years ago, Ghartimagar had left for Malaysia spendingRs 100,000. He had hoped he will get good overseas job andearn handsome income. But that proved as mere a mirage. Bythe time he returned to village, he had barely managed to saveanything. This broke his dreams of earning decent life throughforeign employment. But as there existed no job opportunitiesin the village, he decided to move to India in search of newjob. However, before leaving for India, he chose to give onelast try in the village itself and opened a watch and radio shop.That was the case of 2009.“Thanks to PAF, I managed to get hold of Rs 18,000 in loans tostart the shop. After that, I have never looked back or thoughtof leaving the country for job,” said Noj Bahadur, he becamea member of Dikhachuli CO when PAF started the programmein his VDC.Ghartimagar learned the repair skills only after starting thebusiness. Day-to-day familiarization with the equipmenthelped his sharpen his skill. In case of complex problems,he takes help of repair specialists working in Thulabesi andBijuwar. “The business is doing good. It is fetching me Rs12,000 to Rs 15,000 every month,” he beams with smile.The demand for radio has increased in Rajbara and nearbyvillages after new FM radio stations came into operations.His shop - NB Watch and Radio Repair Center - alwaysremains crowded with people visitng the VDC office andlocal school. Thanks to the business, he has enrolled his 2children, including a daughter, in a school. “I have no problemin fulfilling all basic family needs now,” he stated.Ghartimagar has already cleared the loans he took to start thebusiness. He is planning to take fresh loans, eying to expandthe size of the business. “I want to add new watches, radioand mobile phone sets in my shop,” he said.Noj Bahadur has proven that even the people who failed toearn much in overseas job can make decent earning and leada decent life in the village itself. His service has also enabledthe locally to get the repair works (of watch and radio) done inthe village itself. Previously, they were required to walk at leastthree hours to fix their watches and radios. “This has eased usgreatly,” said Dilip Buda, a local.That is not all. Noj Bahadur is regarded as skilled manpowerand a person who started completely a new business in thevillage. “His business stands quite apart from what otherCO members are doing. And still good thing is, he is amongthose members are earning the most in the village,” said SaneRanamaga, chairman of Dikhachuli CO. As a result, locals treatNoj Bahadur with high respect. He invariably takes active partin the CO meeting and lead the fellow members with exampleson how poor themselves can end their poverty by dedicatingthemselves to various income generation activities.(Courtesy: Publications of POs in Pyuthan district)2.2.3. Community InfrastructureCompleted Infra Subprojects/SchemesTill the end of the reporting year, a total of 7,398 infrastructures schemes were completed while 701 schemes were completed during the fiscal year2010/11 alone (the reporting year).In terms of distribution of schemes by sector during the reproting year, drinking water supply & sanitation sub-projects--numbering 334, stands at thetop followed by 142 building construction related sub-projects and 79 small irrigation sub-projects. Similarly, a total of 45 sub-projects were related torural energy while 43 sub-projects were related to rural access i.e. transportation.Till the end of fiscal year 2010/11, it is clear that water supply & sanitation related activities stands at the top with 3,776 number followed by with 2,149irrigation activities, 333 community building sub-projects and 237 rural access sub-projects. Also, a total of 194 rural energy related sub-projects wereconstructed in cumulative and against 709 miscellaneous activities that includes drainage, improved cook stove, ICT support, river training, rice mills,among others.14 ANNUAL PROGRESS REPORT (2010/2011)

Similarly in cumulative scenario, water supply & sanitation related infrastructures have maximum contribution (27.07 per cent) from the communities.It is followed by rural access with 25.54 per cent. In total, 24.36 per cent contribution has been made by the community for community infrastructure.chart 22: Ratio of Community Contribution in different Community Infra schemes35.00%30.00%25.00%20.00%15.00%10.00%5.00%0.00%Rural Access Community Rural Energy Small Irrigation Water Supply Miscellaneous TotalBuilding& SanitationFY 2067/68CumulativeContribution from Local BodiesDDC and VDC are also contributing in PAF supported infrastructure sub-projects. These institutions have contributed a total of Rs. 52.45 M in cumulativeand Rs 33.31 million during the reporting year alone. Its contribution in rural energy is at the top position and followed by rural access. This shows thatlocal bodies are more interested in rural energy and rural access. In cumulative, they have contributed 37.48 M and 27.42 M for sub-projects duringthe reporting year. This shows that co-ordination between PAF and Local bodies is increasing in the recent days. DDCs and VDCs have contributed Rs2.11 M for rural access schemes completed during the reporting year while Rs 6.01 M has been invested for the rural access in cumulative. Furtheranalysis shows that communities are enforcing local bodies to contribute in sub-projects that need higher investment.Table 9: Contribution from Local bodies in different PAF schemes (Completed Sub-projects)Investment of Local BodiesSNCategory of InfrastructuresFY 2067/68CumulativeAmount (million) % Amount (million) %1 Rural Access 2.11 3.38 6.01 2.732 Community Building 2.19 1.06 3.82 1.043 Rural Energy 27.42 11.12 37.48 7.874 Small Irrigation 0.075 0.12 1.91 0.945 Water Supply & Sanitation 1.5 0.93 3.22 0.636 Miscellaneous 0 0 0 0Total 33.12 4.43 52.45 2.87Out of total DDC/VDC investment, in PAF projects—either during the reporting year or in cumulative, the highest investment has been made in ruralenergy. Rural energy is seconded by community buildings in case of reporting year and rural access in case of cumulative.chart 23: Local Bodies Investment (2067/68)5%0%0%6%7%Rural AccessCommunity BuildingRural EnergySmall IrrigationWater Supply & SanitationMiscellaneous82%chart 24: Local Bodies Investment (Cumulative)0%4% 6% 11%Rural Access7%Community BuildingRural EnergySmall IrrigationWater Supply & SanitationMiscellaneous72%16 ANNUAL PROGRESS REPORT (2010/2011)

infrastructures respectively. It is highest for water supply and sanitation type infrastructures among recently completed infrastructures and rural energysub projects have highest value in cumulative.Salient Features of PAF Supported Infrastructure & Per unit CostInfrastructure for Rural AccessDuring the reporting year, four bridges (769 m length), nine culverts (33 meter in length), 27 rural roads (51 km in length) and three trail roads (4 km inlength) have been completed whereas in cumulative scenario, a total of 20 bridges (1190 m length), 80 culverts (280 meter in length), 127 rural roads(204 km in length) and 10 trail roads (19 km in length) have been completed.Table 14: Per unit cost for rural access sub projectschart 27: Per Household Community Contribution8,0007,0006,0005,0004,0003,0002,0001,0000Rural Access Community Rural Energy Small Irrigation Water Supply Miscellaneous TotalBuilding& SanitationFY 2067/68CumulativeSNRural accessSalient FeaturesPer unit costUnit FY 2067/68 Cumulative FY 2067/68 Cumulative1 Bridge m 769 1190 14739 161452 Culvert m 33 280 118691 751963 Road & its maintenance km 51 204 871648 8591304 Trail Road km 4 19 699125 253078Here per unit cost of bridge in the reporting fiscal year is less than that of cumulative as long as bridges were completed with less per unit cost.Community BuildingsTill now, PAF has supported for school, health post, community building and agriculture related building (cellar storage, market shed, milk/ vegetablecollection center). In FY 2010/11, 129 school buildings (626 rooms) have been constructed and maintained. One health post (2 rooms), four agriculturerelated buildings (13 rooms) and eight other types of community buildings (23 rooms) are constructed, whereas in cumulative, 272 school buildings(1,101 rooms), 5 health posts (16 rooms), 11 agriculture related buildings (22 rooms) and 45 other types of community buildings (41 rooms) areconstructed 664 number of rooms having 27655 m2 plinth area have been constructed during the reporting year and 1220 rooms having 48874 m2plinth area were constructed in cumulative. Recently completed building’s unit cost is Rs. 311,277/room and Rs 7,474/m2 area and in cumulative, itsvalue is 300,189/room and 7,493/m2 plinth area.Table 15: Per unit cost for Community Buildings ConstructionSNBuildingSalient FeaturesPer unit costUnit FY 2067/68 Cumulative FY 2067/68 Cumulative1 Building Room No & Plinth Area 664/ room (27655 m2plinth area)1220/ room(48874 m2 plinth area)311277/ room and Rs7474/m2300189/ room and7493/m2 plinth area.ANNUAL PROGRESS REPORT (2010/2011) 19

Rural EnergyElectricity line extension, Micro hydro power and solar system are sub-projects under the rural energy category. In recent fiscal year, a total ofseven electricity line extension sub projects (97 km extension), 37 numbers of micro-hydro sub-projects (770 kw) and one solar system have beencompleted. In cumulative, 37 number of electricity line extension (167 km extension), 98 numbers of micro-hydro sub-projects (1626 kw) and 59 solarsystem have been completed. The cost per Kw is Rs. 298,791 for infrastructure completed during the reporting year and Rs 259,793 in cumulative.Table 16: Per Unit Cost for Rural Energy Related Sub-projectsSNRural EnergySalient FeaturesPer unit costUnit FY 2067/68 Cumulative FY 2067/68 Cumulative1 Micro Hydro kw 770 1626 298791 259793Small IrrigationPAF is providing different types of schemes such as deep boring, artisan boring, treadle pump, drip, sprinkle, water harvest tank, plastic pond, earthenpond, well, lift and surface to community based on local topography, available water and command area. In recent year, 79 number of irrigationsub-projects (754 hectares) are completed among which 38 number of surface irrigation, two lift irrigation sub-projects, four earthen ponds wereconstructed. In cumulative, 347 numbers of boring, 2 drip, 9 lift irrigation, 12 plastic pond, 13 earthen pond, 123 surface irrigation and 24 sprinkledirrigation were completed. This has helped to irrigate more than 3,000 hectares of land.Water Supply & SanitationGravity, Lift, tube well, dug well, Rain water harvesting types of water supply schemes are constructed under PAF support. Simultaneously, waste pitand toilets are also constructed under PAF. In FY 2010/11, 169 number of gravity water supply (1156-taps/ water points), 2 lift water supply, 23 subprojectsof tube well, 4 sub-projects of dug well and 133 number of toilet sub-projects are completed.In cumulative, 523 number of gravity water supply (1156-taps/ water points), eight lift water supply, one rain water harvesting, 1,128 sub-projects oftube well, 46 dug well sub-projects and 1962 number of toilets (2476 in number)sub-projects were completed.Infrastructure (Under Construction)There are 650 infrastructures sub-projects under construction as of July 2011 and most of them are expected to be completed by next year. Amongthem, water supply and sanitation sub-projects are at top position whereas infrastructure under miscellaneous category (Ghatta, river training) subprojectsare minimum. And maximum households will be benefited from rural access which is 13,068 (24.1 per cent). It is followed by communitybuilding, from which 13,046 household (24 per cent) will be benefited.chart 28: Ratio of different infrastructure projects (under construction)chart 28.a: Number of Sub-projectschart 28.b: Benefited Household266.10%193.30%61.90%86,13%101,16%66,10%143,22%Rural AccessCommunity BuildingRural EnergySmall IrrigationWater Supply & SanitationMiscellaneous7271.13%9970.18%10546.20%13068.20%13046.24%Rural AccessCommunity BuildingRural EnergySmall IrrigationWater Supply & SanitationMiscellaneousPAF has made agreements with communities amounting Rs 605.4 million to construct these infrastructures. PAF is going to invest Rs 146.8 million forrural energy. This is the highest amount among under construction category. PAF’s second investment is water supply and sanitation related schemeswhere it has invested Rs 143.3 million.20 ANNUAL PROGRESS REPORT (2010/2011)

Table 17: Contribution by different agencies for infrastructure under constructionContribution in Million ( NRs)SN Type of InfrastructuresPAF Community Others DDCVDC1 Rural Access 95.8 26.7 74.4 7.92 Building 120.1 34.9 1.7 0.63 Rural energy 146.8 66.8 133.2 42.74 Small Irrigation 94.4 28.2 2.4 0.35 Water supply 143.3 43.9 0.2 16 Miscellaneous 5.2 1.3 0.1 0Total 605.4 201.3 211.7 52.1Communities Contribution for Projects Under ConstructionCommunity has committed to contribute Rs. 201.3 million for under construction infrastructures. Their commitment is highest for rural energy (Rs 66.8million) and least for miscellaneous Rs 1.3 million).With respect to total cost, Community’s commitment for contribution is 18.9 per cent in average. This is maximum for water supply and sanitation (23.4per cent) followed by small irrigation (22.6 per cent) and least for rural access. It is 13.1 per cent with respect to total cost.Table 18: Communities Contribution for projects under constructionCost Contribution in per centageSN Type of InfrastructuresPAF Community Others DDCVDC Total1 Rural Access 46.8% 13.1% 36.4% 3.9% 1002 Building 76.4% 22.2% 1.1% 0.4% 1003 Rural Energy 37.7% 17.2% 34.2% 11% 1004 Small Irrigation 75.4% 22.6% 2% 0.3% 1005 Water Supply 76.1% 23.4% 0.2% 0.6% 1006 Miscellaneous 78.8% 19.7% 1.6% 0% 100Total 56.6% 18.9% 19.8% 4.9% 100ANNUAL PROGRESS REPORT (2010/2011) 21

2.2.4. Innovative Special ProgrammeOverviewPAF has been implementing special window programme (innovative)beyond and within its regular districts. The programme has beenfocusing on adopting innovative concept, ideas, process, technologyetc. for the improvement of livelihood of target community. During thereporting year, PAF is still continuing support for innovative programmeas provided in Annex 9.Besides, PAF also has handled the NDM (Nepal Development MarketPlace, popularly known as “Launa Aba Ta Kehi Garaun” projects)which was called on by World Bank in 2008. Most of them have beencompleted and some of them are still in the phase of completion.Successful Completion and ReplicationOne of the major objectives of PAF is to bring the innovative process,technology and method in the sector of poverty alleviation. This is thereason being implementing the innovative and NDM projects so that itcan be replicated to the regular programme. Some of the Projects haveshown the remarkable replications in different parts of the country. Forexample, the SRI technology which has been successfully replicated inBajura and Siraha districts from its initiation from Morang as an NDMprogramme in 2005. The Productivity of paddy has increased more thandouble in both the replicated districts compared to conventional methodof paddy cultivation. Similarly, the Wi Fi technology that has been startedby Mahabir Pun as an NDM project supported by PAF, who later won theMagassasy International Prize, has been widely replicated in Achhamand Bhajang districts and they are doing wonders in those remote andinaccessible areas in terms of tele-medicine and knowledge. Also withthe effectiveness of such technology Government of Nepal freed thelicense acquiring fees from 2006 September to IPS up to the capacity2.4 Gigahertz to 5.8 Gigahertz. Also, after the success of a mechanizedbridge in Tanahu under NDM 2005, similar bridge has been constructedin Sindhuli.Learning :• PAF should undertake more and more innovative programmeswhich transfer the technology and process that are pro-poor.• PAF should undertake such innovative project that focuses on thepolicy review of the concerned stakeholders for the welfare of thepoor.• There should be sufficient time and resources for the successfulreplication of the project at regular programme areas.• PAF should also encourage the individual or an organization to bringthe projects that are innovative and replicable throughout the year.Future PlanIt may be noted that PAF has developed Innovative Sub-projectsGuidelines during the reporting year. PAF has also announced tolaunch 20 innovative programmes. The applications to conduct suchinnovative programmes have been received by PAF and are currentlyunder processing.2.2.5. Capacity DevelopmentCapacity development has been the centerpiece of internationaldevelopment assistance since the end of II World War and the start of thedecolonization period. Capacity development is the major component ofmillennium development goals (MDGs) in order to reduce poverty, andcapacity development is one of the core programme components of PAF.The PAF Perspectives of Capacity DevelopmentPAF is established to support poor women, Dalits, Janajatis andvulnerable groups for their livelihood improvement and empowerment.For this, they are organized into Community Organizations (COs). PAFhas mobilized Partner Organizations (POs) to support and facilitate COsto launch activities in the programme districts. Actually COs implementPAF activities by themselves but POs act as a bridging agent betweenPAF and COs to launch PAF activities.COs are the primary stakeholders of PAF and are regarded as thecenterpiece of its development effort. Without the capability developmentof its primary stakeholders, the expected outcome of the programmecouldn’t be achieved. COs are capacitated in the relevant areas. PAFaims to institutionalize and strengthen COs for their empowermentand sustainable development. Hence, Capacity development of COsis the major thrust of PAF. PAF has incorporated the components likeSocial Mobilization, Capacity Building, Income Generation/EmploymentCreation and Community Infrastructures in the programme in orderto support COs holistically. From the very beginning, PAF has beencapacitating COs, POs and PAF staff in pertinent themes. Capacitydevelopment of COs is linked to capacity development of POs and PAFstaff.General Current Trend of Capacity Development of COsand POsSince PAF has adopted the demand driven approach. Hence, the technicaland skill enhancement training related to various income generatingactivities and community infrastructures are based on the demandedactivities by each members of COs. Other trainings like entrepreneurshipskill development and institutional strengthening are firstly imparted.Training of Trainers (ToT) to staff of POs and through POs it is impartedto the members of COs. Because capacity development of COs is linkedto capacity development of POs. POs facilitate COs being in frontline,their capacity enhancement is imperative to capacitate COs. Hence,PAF firstly has been imparting ToT on Enterprise Development, SocialMobilization, Leadership Development and Group Management, Accountand Revolving Fund Management and Public Audit to the staff of POs.Apart from imparting training to the members of COs, the POs do coachCOs during their meetings and technical support.PAF believes that unless the members of COs have entrepreneurshipskill, the operation and management of income-generating activitiesmay not sustain at all. Hence, each member of COs is oriented onEntrepreneurship Skill Development to identify and select appropriate andprofitable economic activities for them. Similarly, the relevant membersof COs are trained in Construction, Operation and Maintenance ofvarious implemented infrastructures in the community. PAF has adoptedthe following approaches to capacitate the COs:22 ANNUAL PROGRESS REPORT (2010/2011)

Capacity Development of Community Organizations (COs)Since COs are the integral elements of PAF, they are given utmostpriority for their capacity development. PAF has been adopting followingapproaches to capacitate the COs• Creating awareness and sensitization through rigorous socialmobilization process• Facilitating them to be organized into Community Organizations(COs) to create their own institution. Empower them in decisionmaking process.• Facilitating /encouraging them to participate in participatory needidentification, and project cycle management.The following are trainings that PAF is providing to the COs (detailsin Annex 10)• Organizing orientation on PAF Implementation Process i.e. PAFpolices/strategies, norms and working procedures in order toimplement PAF activities smoothly and effectively. This is firstlyimparted to POs by PAF staff and imparted to COs through POs.• Organizing Entrepreneurship Skill Development Training i.e. SIYBand MECD to enable them to identify potential income generatingactivities at their local level and operate it sustainably. This trainingis firstly imparted to the staff of POs and imparted to COs throughPOs.• Organizing other trainings, orientations and exposures relevant toinstitutional development of COs. They are: Leadership Developmentand Group Management, Account Management, Revolving Fund andSaving-Credit Management, Public Audit, Cooperative Educationand Management and exposure visit. This training is firstly impartedto the staff of POs and imparted to COs through POs.• Organizing technical and skill development and trainings, orientationsand exposures relevant to various economic activities as demandedby COs. Mostly those trainings and orientation are directly impartedto COs by hiring resource person. Apart from training, they areexposed new technologies, and approaches by organizing exposurevisits. If replicable, they may replicate those in their communities.• Organizing trainings, orientations and exposures on construction,operation and maintenance of various community infrastructuresas demanded by COs. Such training is directly imparted to themembers of COs by hiring resource person.• Regular coaching and mentoring to COs by POs entrepreneurshipskill development and institutional development related matters i.e.Account Management, and Revolving Fund Management duringmonthly meeting of COs. Particularly, Social Mobilizers coach andmentor COs in the above matters.• Facilitating and mentoring COs to establish coordination, linkage andnetworking with other organizations for their improved sustainablelivelihood management beyond PAF.• Organizing Awareness and Social Improvement related orientationsand training by hiring resource person or by coordinating with otherorganizations i.e. Health, Hygiene and Sanitation, Gender Sensitivity,Domestic Violence and Rights Based Approach.The details of COs capacity development activities are provided in Annex 10.Capacity Development of Partner OrganizationsPAF has been mobilizing POs to facilitate and support COs in planningand implementation of PAF activities. The POs facilitate COs being infront line. Hence, capacity enhancement of POs is essential to capacitateCOs.PAF has been imparting Orientation on PAF Implementation Process i.e.PAF policies and working procedures, PAF Environmental Framework,PAF Community Level Infrastructures Implementation Process and ToTson Entrepreneurship Capacity Building, Social Mobilization, LeadershipDevelopment and Group Management, Account, Revolving Fund andSaving-Credit Management and other required themes to the staff ofPOs. Once they get training, the staffs of POs impart such training andorientation to the members of COs. Apart from this, the staffs of POs aretaken to exposure visit in best practices of institutional development andeconomic activities management. The staff of POs do regular mentoringand coaching to the members of COs on what they gained during trainingand exposures. The detail of the PO capacity development activities ismentioned in Annex 11.Capacity Development of PAF SecretariatPAF secretariat is established to support poor and vulnerable women,Dalit, Janajati and other castes for their poverty reduction. It is anautonomous institution to oversee the overall poverty reduction activitiesimplemented for the target groups. Hence, the capacity development ofPAF secretariat is very vital to implement PAF programme effectively andefficiently in the programme districts. If PAF staffers’ capacity is wellstrengthened, they transfer this to the staff of POs and the staff of POstransfers their knowledge and skill to the members of COs. They provideregular backstopping and mentoring to POs and COs to bring effectiveresults and outcome of PAF activities in the districts. Apart from this,they do coordination and networking with the Local Bodies (DDCs &VDCs), and Line Agencies to leverage resources for the betterment oftarget groups. Hence, capacity development of PAF secretariat is linkedto capacity development of POs, COs and Local Bodies.PAF has, since its inception, been developing the capacity of PAF staffby organizing a series of Interaction Meetings, Workshops, Orientations,Training and Exposures. Training is, however organized on the basisof their need. Training is organized for individual and group based onspecific need. Interaction meetings and orientations are also organizedon pertinent policies/strategies and issues to make the staff aware. Incountryand international exposure visits are also organized to makestaff familiar with the new practices and approaches.In-house Workshops and MeetingsPAF organizes in-house workshops and meetings on regular basis. Theobjective of organizing such events is to impart knowledge and skilland discuss on relevant issues. Such events are organized exclusivelyfor PAF staff and including donors and development partners. Usuallyworkshops are conducted to impart knowledge and skill to theparticipants and meetings are conducted to discuss on relevant issuesand identify approaches and options to address the issues. PAF inhouseevents are presented as followings:• In order to plan overall PAF divisional activities for the FY 2011/12, atwo day residential PAF Annual Planning Workshop took place from9 to 11 May, 2011 in Dhulikhel, Kavre district. All PAF professionalstaff and some board members namely Dr. Arzu Deuba, Shri KrishnaANNUAL PROGRESS REPORT (2010/2011) 23

Upadhaya, Dr. Duman Thapa, Dr. Bal Gopal Baidhaya, Mr. KhalilMiya and Mr. Rishi Raj Lumsali were present in the worksop. All theparticipants actively participated in the workshop and formulatedstrategies to implement the planned activities.• In order to strengthen and intensify PAF-DDCs/VDCs coordinationcollaboration in the districts, a two day “Regional Workshop withMLD was held in Nepalgunj from 1- 2 January, 2011. PAF districtLDOs, VDC Secretaries and PAF POs from Far, Mid and Westerndevelopment regions were present in the workshop. Duringthe workshop Vice-Chairperson from NPC, Secretary and JointSecretary from MLD, Regional Administrators from Far, Mid andWestern development regions were present. Similarly, RegionalDirectors for Agriculture Development and Education were alsopresent. The workshop concluded to go jointly with DDCs and LineAgencies to reduce poverty and to avoid duplication of programmesand resources in the Districts.• In order to strengthen PAF programme further based onimplementation learning, a two day “PAF Programme ReviewWorkshop” with Central Development Region POs was concludedfrom September 28 to 29, 2010 in Janakpurdham of DhanusaDistrict. Both the workshops identified and discussed on learning ofsuccessful and failure cases of PAF activities. The workshops thusorganized have drawn recommendations and suggestions to PAF toformulate policies and strategies to address the failure cases.Capacity Development of Local BodiesFrom the very beginning, PAF has been rigorously coordinating andcollaborating with DDCs and VDCs to implement activities in the district.Therefore, PAF has been involving DDCs and VDCs to monitor PAFactivities regularly. During monitoring, DDCs and VDCs provide feedbackand suggestions on the activities which helps to further improve andstrengthen gaps and lapses in providing services to the community.DDCs and VDCs do have government resources for infrastructures andsocio-economic development of district and village. Apart from this, thesectoral Line Agencies and other developmental organizations do haveresources for the sectoral activities. DDCs is the umbrella organizationto coordinate overall developmental activities in the district. Hence, ithas vital role in forging resources for betterment of poor people. PAFhas been implementing programme in close coordination with DDCs toforge resources from other organization for the benefit of poor people.PAF intends to capacitate DDCs based on their capacity developmentplan and other themes applicable and beneficial to PAF beneficiaries.PAF has envisaged to enhance the capacity of DDCs and VDCs in thefollowing themes:• Participatory Monitoring and EvaluationSince DDCs and VDCs are involved in regular monitoring of PAFactivities. This enables them for effective monitoring and evaluationof PAF and other donors activities in the district. During themonitoring visit they provide feedback and suggestions to improveand strengthen PAF programme further. During the FY 2067/68,DDCs have made 147 monitoring visit in 34 PAF programmedistricts.• PAF Programme Review and Coordination MeetingIn order to review PAF progress status, coordination and reviewmeeting with DDCs and Line Agencies is organized regularly inthe PAF programme districts. During the meeting, DDC and LineAgencies provide feedback and suggestions, which contributesfurther improvement and strengthening of PAF activities. Apartfrom that, such meeting acts as platform to forge resources for thebetterment of target groups. During the FY 2067/68, PAF organized72 events of coordination and review meeting with DDCs and Lineagencies in 34 PAF programme districts.• TOT on Entrepreneurship Skill DevelopmentPAF has been conducting TOT on Enterprise Development to thestaff of POs in the district. The main objective of TOT is to developentrepreneurship skill among the members of COs through POs. Aftergetting TOT, the POs impart such training to the members of COs.Being a permanent institute in the district; DDCs must have humanresource knowledgeable in entrepreneurship skill development. Inthat case, they can impart such training to beneficiaries beyondPAF and other projects. Hence, in some district PAF has involvedthe relevant staff of DDC in the entrepreneurship skill developmenttraining.• Collaboration and Coordination with LGCDPLGCDP is a development programme supported by many donorsto work for the overall development of district. LGCDP activitiesare launched through DDCs in the district. Along with developmentactivities, LGCDP has also capacity development component whichassesses the overall district level Capacity Development Need andacts to address that. So, PAF could collaborate with LGCDP toidentify the capacity development needs in the district which couldbe linked to capacity development and benefit to PAF COs.• VDC and Ward Level Orientation on PAFPAF has been implementing its activities in the target communities inthe VDC. While entering the VDCs to launch activities, PAF has beenconducting VDC and Ward level orientation on PAF. This has helpedPAF to get VDC support and feedback to identify target communitiesand launch PAF activities effectively.• Organize Exposure Visit to DDC PersonnelPAF has been organizing regular exposure visits to POs and COs.PAF has envisaged including VDCs staff along with POs exposurevisit event.24 ANNUAL PROGRESS REPORT (2010/2011)

Chapter 3:information,monitoring andevaluation3.1. MIS, Monitoring andEvaluationMonitoring and evaluation (M&E) is an inextricable part of PAF’smission, providing an analytical basis for programmatic decisions,allowing PAF to learn from its experiences, and share the impact andlessons with different stakeholders. This has been supported by thePAF MIS system. PAF MIS system help the management in processingits activities, managing contracts with CO/PO, monitoring and takinginformal decisions. The major MIS development in PAF includes PMIS(Programme Management Information System), HRIS (Human ResourceInformation System), AMIS (Administration Management InformationSystem) and FMIS (Financial Management Information System).Further PMIS is linked with FMIS to track the fund flow to communityorganizations.PAF’s monitoring data is developed on 5 different databases whichsupport the process of working with partner and communityorganizations and monitoring the sub-project activities (figure 1). Thesedatabases provide a rich source of information on PAF activities andhave been increasingly analyzed to improve planning and addressweaknesses in the project implementation process and to identify areasof strength that can be scaled up.PAF’s monitoring focuses on the progress, process, compliances and theresults of the project activities. PAF has been encouraging all the stakeholdersto be involved in the monitoring process of the projects activities.As community is at the driving seat of the PAF’s programme, monitoringby the community is essential for the compliances and the results of theprogramme. Thus, the monitoring sub- committee of each communityorganizations (CO) is responsible to monitor the activities carrying by therespective COs. Besides, the social mobilizers assigned by the partnerorganizations (POs) are also responsible to facilitate the monitoring subcommitteefor the effective monitoring and also monitor the activities ofCOs by themselves.Besides, the POs -programme coordinators, supervisors and boardmembers are also responsible to monitor or track the progress and thecompliances made by the community organizations.The Portfolio Managers (PMs) and the consultant assigned by the PMs,appraisal and monitor the activities of the POs as well as COs. Similarly,in periodic basis, the local bodies’ representatives (DDC, VDC and otherline agencies) also carry out the monitoring visits in the PAF workingareas of the districts.Further, the PAF central level also carries out monitoring visits in thedistricts in periodic basis. Likewise, PAF Board Members, representativesfrom line ministries and representatives from the World Bank also carryout monitoring visits in periodic basis.Further PAF has been reporting its progress against the set indicators onregular basis. For detail refer to Annex 12.Partner OrganizationSelectionCommunity organizationselection and registrationCommunity: Selectionpriority activitesCommunity:Implementation ofactivitesPartner OrganizationSelectionCommunityorganizations database -Beneficiary AssessmentCommunityAgreements databaseSub-projectProjects databaseRevolving FunddatabaseANNUAL PROGRESS REPORT (2010/2011) 25

3.2. Results From MonitoringData AnalysisThe re-social assessment of the sample 289 COs which are three or morethan three years of maturity period was carried out during 2010.The comparative analysis of the re-social assessment data with thebaseline social assessment shows that HH level assets increased, Schoolenrollment of the children increased, improvement in food sufficiencyduration of individual HH, and Construction and use of toilet/latrineincreased.Similarly, the household level gross income (from all the sources) of there-assessed 8,168 HHs has increased by 82.5 per cent in real term. Adistrict-wise gross annual income change of CO members is provided inAnnex 13. g year. The data was collected till November 15, 2009.The revolving fund assessment carried out during the end of FY2066/67, shows that community has been managing their revolving fundsatisfactorily (Annex 14). The data collected as of July 16, 2010, showsthat fund provided to the COs by PAF has been increased by 7.8 per centwhich includes the interest charges against the loan taken by its members,community contribution and fund collected from other sources.Similarly, among the total CO members, 84.6 per cent of the members haveaccessed the fund at least for one time to initiate their income generationactivities. Out of the total members accessing the fund from RF, 8.72 percent members have used the fund for more than two times, 19.77 percent members have used two times and 71.51 per cent members haveused one time.The assessment also shows 83.8 per cent of the total fund has beeninvested as loan to its members, 14.1 per cent of the fund is in bank andrest amount is as cash in hand in COs itself. Further, assessment showsthat the average rate of repayment of the loan disbursed is 76 per cent3.3. Environmental Frameworkand MonitoringMajority of PAF supported sub- projects are of small and microscales hence they hardly fall under legal obligations for environmentalassessment. However, PAF realizes that even micro/small scaleprojects may have some environmental implications and has laiddown Environment Management Framework (EMF) to address them asprecautionary principles. EMF has standardized methods for the subprojectsto assess the environmental problems associated with theirimplementation and ways to mitigate them.According to PAF EMF environmental assessment and planning mandatoryduring the project preparation for sub-project’s approval. Possible risks ofproposed sub-project and their mitigation measures are identified by thecommunity and documented as Environmental and Social Assessment(ESA) Checklist in facilitation from the partner organization. PAF monitorsthe compliance to this process during the sub project appraisal. Duringproject implementation, PAF reviews the progress on implementation ofthe mitigation measures outlined in the ESA checklist. Both complianceand impact monitoring on environment are important components whileconducting regular sub project monitoring.In addition, the monitoring team of Environmental Consultant also carriesout special environmental monitoring of sub projects on sample basis.ERMC P. Ltd. In Association with SchEMs P. Ltd. has been working asenvironmental consultant from February 2011. 72 sub projects in sixdistricts were monitored in FY 2010/11 by the environment consultant.Monitoring reports has not pointed out major harmful implications of thePAF IG or Infrastructure development activities on the local environment.The monitoring result has rather shown that Community-levelenvironmental assessment and planning has increased environmentalawareness among target communities and ensured environmentalfriendliness of the sub-projects.3.4. PO PerformanceEvaluationsFrom the last FY 2066/67, PAF has initiated to evaluate the performanceevaluation of the POs in different aspects. The evaluation was done in2 major areas. The first section is focused on the PO’s organizationalchart 29: Ranking of POsNot participatedD (Less than1150%)117C (50-64%)181B (65-79%)44A (80% or more)357Total0 100 200 300 400capacity to deliver the services as defined in the TOR and the secondsection is focused in how the COs/Beneficiaries perceive the servicesprovided by the POs to them.The overall objective of this process is to strengthen the PAF M&Esystem effective and assess the effectiveness of the services providedby the PO s to the COs.During the FY 2067/68, POs’ perfornmance evaluation was alsoconducted. The total number 357 POs were evaluated and based onthe results, the POs were entered into agreement for partnership withPAF to work in FY 2068/69 accordingly. The following graph shows therankingof POs based on the score obtained in the evaluation process.3.5. Impact EvaluationBaseline Survey4Number of POsCentre for Economic Development Administration/Tribhuvan University(CEDA/TU) has been selected for conducting the baseline survey in30 new districts. The contract has been done during this year and thepreparation works conducting the survey is ongoing.26 ANNUAL PROGRESS REPORT (2010/2011)

leqImpact StudyThe final report of the follow up survey in 6 sample districts of 19 districtshas been produced. The analysis of the cleaned data provided by theCEDA/TU was done by the team from the World Bank. The summaryof the findings is described in chapter 5. Similarly, the World Bank hasalso produced a brochure ‘Nepal Poverty Alleviation Fund: EvaluatingImpact’, based on the results of the study.3.6. Communications, Outreachand PublicationsPAF has laid significnat emphasis for communicaitons as it is criticalto create demand from beneficiaries ensure transparency and fosterpartnership and learning across stakeholders.PAF communication strategy aimed to disseminate PAF approach/procedure/rules to the related stakeholders, develop the external andinternal communication capacity of PAF and identify and developcommunication messages for PAF, as well as disseminate best practicesand success storiesSome of the major activities that were initiated and continued during thereporting year include.• Weekly Radio Programme from Different FM Radios Nepal• Publication of Newsletter “Jeevika” –both in English and Nepali on aregular basis.• Dynamic websites created, updated regularly• Annual Reports—both national and district based publications,Brochures, Fact Sheets, Mini Brochures publications• Success stories and cases collections• Different interaction meetings and workshop at the local and nationallevel• Extensive media coverage at the local level and national levels• PAF has updated its Programme Implementation Guidelines andpublished it during the reporting year.• PAF has prepared and published a guideline for CommunityInfrastructure Sub-projects during the reporting year.Since PAF work is now increased in terms of its coverage and depth,there is a growing need to generate greater awareness based on theresults. A proactive communication and outreach strategy will be ofhighly important in this regard. PAF will work with all stakeholders tokeep them abreast of the important developments and disseminating theinformation at national and international forums.3.7. Grievance HandlingSince the beginning of the reporting year, PAF has developed a grievancehandling system to record and response any complaints on practices,policies and procedures of PAF at the centre as well a the grass rootslevel. A complaint for PAF is defined as individuals or group’s displeasurewith the Handling of PAF works, any aspect of the service provided, ornot provided, in any PAF involved programme or site, the behavior ordecisions of PAF and PO’s staff, among others.A concept note of PAF grievance handling mechanism was developedand a sub-committee of the board members was also formed to overseeand supervise grievance handling system in PAF. PAF has developeda direct email to the vice chairperson, executive director and theprogramme chief in its website. The PAF can use the already installedsuggestion box in its central office. Any complain coming either froma direct email to the PAF Vice Chairperson, Executive director, websiteemail, or telephone, or any other means are recorded and registeredin a complaints register, with the updated status of the complaint andremedial actions taken.So far, complaints are being made related to the field level misuse of PAFfund, activities of PO, exclusion of hardcore poor, and selection of POin the districts, among others. PAF programme division chief is directlyoverseeing all the grievance related activities.• Orientations programme and stakeholders consultations at the localleveljflif{sk|ltj]bgcf=j= @)^&÷^*af/fu/LjL lgjf/0f sf]if!= af/fdf s]fifs]Gb|Lo tYof+s ljefun] u/LaLsf cfwf/df u/]sf]ju{L{s/0fdf $( cf}+ :yfgdf /x]sf] o; lhNnfsf]u/LaLnfO{ sd ug]{ sf]ifsf] p2]Zo cg'?k g} o;lhNnfdf cf=a= )^%÷)^^ b]lv sf]ifsf] sfo{qmdz'? ePsf] xf] . s'n (* uflj;dWo] $% uf=lj=;=dfsf]ifsf] sfo{qmd ;+rflnt 5 . sf]ifsf] sfo{qmdnfO{;xhLs/0f ug{sf nflu 5gf}6 ePsf !# j6f;xof]uL ;+:yfx? xfn o; lhNnfdf sfo{/t 5g\ .oL ;+:yfx?df afn tyf dlxnf ;]jf s]Gb|, ljsf;ljsNk ;+:yf, blnt hghflt pTyfg s]Gb|, u|fdL0fpTyfg cleofg, dfgj clwsf/ hfu/0f s]Gb|,hgr]tgf hfu/0f cleofg, hghfu/0f o'jf Snj,:yfgLo ljsf; s]fif, gj k|eft o'jf Sna, Go" o+u:6f/ Snj, ;+/If0f g]kfn, u|fdL0f ljsf; s]Gb| /u|fdL0f If]q tyf s[lif jg ljsf; s]Gb| /x]sf 5g\ .@= sfo{qmdsf cfwf/:tDex?@=!= ;fdflhs kl/rfng;fdflhs kl/rfng sf]ifsf rf/ cfwf/:tDedWo]zLif{s ;fd'bflos dxTjk"0f{ :tDe xf] . ;fdflhs kl/rfngs} dfWod4f/f;fd'bflos ;+:yfsf ;b:ox?n] cfk;df 5nkmnu/L cfkm\gf] 7fpFdf pknAw ;|f]t ;fwgsf] klxrfgub}{ cfkm\gf cfjZostf kl/k"lt{sf nflu of]hgfx?agfpF5g\ . o;} k|lqmofåf/f xfn;Dd sf]ifdf btf{ePsf ;fd'bflos ;+:yf / ;+emf}tfsf] cj:yf tntflnsfdf b]vfOPsf] 5 M?= s}lkmot;+Vof /sd ;fd'bflos ;+:yf ;+:yf u7g $%)sf]ifdf btf{ !@)tflnsf !sf]if;+u ;DalGwt lhNnfsf] ;du| tYof+sLo hfgsf/L;fd'bflos ;+:yf ;+hfn )sf]ifsf] nufgL ;+emf}tf !) #^,!@(,$$%=))cfocfh{gtkm{ !)^ #^,!@(,$$%=))ef}lts k"jf{wf/tkm{ );xof]uL ;+:yf !#sfo{qmd k'u]sf uf=lj=;= $%;fd'bflos ;+:yfdf cfa4 3/w'/L k|ltzt u/LaL juL{s/0f#,!!^u/LaL juL{s/0f clt u/La -s_ @,!(* &)=%$ dxLgf vfgk'Ug]hDdf # ≤ dxLgf vfgk'Ug]dWod u/La -v_ ^#^ @)=$! ^ ≤ u/La -u_ @&* *=(@ !@ ≤ dxLgf vfgk'Ug]-3_ $ )=!# cfkm\g} pAhgL jf lgoldt cfoaf6dlxnf @,*@* ()=&^k'?if @** (=@$ln+usf hfltut cfwf/df blnt !,)(#hghflt @(%d'l:nd (#(cGo &*(#$%^kTgLn]lbg yfn]kltnfO{ /f]huf/L–6]s]Gb| b]pjfsf]ifdf gofF pkfWoIfkLcf]÷;Lcf] s'gf]M ul/aLlj?4 n8\g] pT;fxlhNnf ljz]ifM h'DnfIf]q ljz]ifM sf]if ;xfotfsf] u|fdL0f;8sM ul/aL Go"gLs/0fdf of]ubfgn]vM ;+/lIft If]qdf sf]ifsf ultljlw ;+lIfKtM ultljlw;kmntfsf] syfM8fd|Lsf] df]6/ b]Vg] wf]sf] k'/f eof] ;+If]kdf sf]iflv/;}g -8f]6L_M 8f]6L lv/;}g–( s8fn ufpFsfdlxnfx¿ cfkm}F sdfP/ 3/ vr{ sdfpg ;IfdePsf 5g\ . ufpFd} sdfO{ x'g] sfd ;'?u/]kl5 oxFfsf dlxnfx¿n] sdfOsf nfluef/tlt/ uPsf cfkm\gf kltnfO{ lkmtf{ af]nfpgyfn]sf 5g\ .ufFpd} pgLx¿n] Joj;flos t/sf/Lv]tL u/]/ k|;:t cfDbfgL ug{ yfn]sf5g\ . o; sfdn] ;kmntf kfpFb} uPkl5ef/tsf ljleGg ;x/df rf}sLbf/L ug{uPsf ufpFsf k'?if kmls{g yfn]sfx'g\ . Joj;flos t/sf/L v]tLsf sf/0foxfFsf afl;Gbfsf] hLjg:t/ km]l/Psf]5 . o;cl3 afFe}m b]lvg] v]taf/Ldf cr]nhtftt} t/sf/L b]Vg ;lsG5 . 8';fb]jL P]/elG5g\, …d]/f kltn] d'DaO{df rf}sLbf/L u/]/jif{el/df !)÷!% xhf/ ?k}ofF sdfP/ NofpFy]t/ t/sf/L nufpg yfn]kl5 Ps} l;hgdf$) xhf/;Dd sdfpg yfn]sf 5f} .Ú8';fb]jLn] u/]sf] t/sf/L v]tL b]v]/pgsf klt 6]saxfb'/ P]/ klg b+u5g\ . pgL eG5g\, …tl/sf hfg] ufpFd} sdfOx'g] /x]5 . d'DaO{df gf]s/ lyPF, oxfF tt/sf/L laqmL ug]{ dflns kf] ePsf] 5' .Úef/tdf !% jif{;Dd rf}sLbf/L u/]sf8an P]/n] klg Ps jif{otf kTgLn] ;'?*(!)!@u/]sf] t/sf/L v]tLdf ;xof]u ul//x]sf5g\ . pgn] ef/tdf rf}sLbf/L u/]sf]eGbf ufpFd} t]Aa/ sdfO{ ePsf] cg'ej;'gfP . 8ansL kTgL wf}nLn] t/sf/Lv]tLaf6 jflif{s Ps nfveGbf a9L cfDbfgLul5{g\ . wf}nLn] elgg\, …kltsf] !% jif{sf]sdfOn] k'Vof}{nL 3/sf] 5fgf km]g{ ;lsPgt/ t/sf/L v]tLsf] sdfOn] 3/sf] 5fgf dfqkm]l/Pg, 5f]/f5f]/LnfO{ /fd|f] :s'ndf k9fpg;s]sf 5f}+ .Úsdnf P]/ ef/t uPsf kltsf] sdfOn]kl/jf/sf] cfly{s cj:yf slxNo} ;'lw|gg;s]sf] atfpb} clxn] t/sf/L v]tLaf6dgUu] cfDbfgL ePsf] ;'gfpFl5g\ . t/sf/Lv]tL u/]kl5 ufpFsf @@ hgf k'?if ef/thfg /f]lsPsf 5g\ . pgLx¿ t/sf/LlaqmL ug{ l;nu9L, ;fh3f6 / ;fFkm]au/;Dd k'U5g\ .t/sf/L v]tLnfO{ ;xof]u ul//x]sf]PsLs[t ;fdflhs ljsf; ;d"xsf sfo{qmd;+of]hs nId0f v8\sfn] s8fn ufpFsf @*kl/jf/sf dlxnf o; Joj;fodf nfu]sf]hfgsf/L lbP . oL dlxnfn] ul/aL lgjf/0fsf]ifn] ;fd'bflos ;:+yfdfkm{t ;'?dfnufgL u/]sf] $ nfv @@ xhf/ ?k}ofF klgltl/;s]sf 5g\ .-;fef/ M cGgk"0f{ kf]i6, @^ h]7_ANNUAL PROGRESS REPORT (2010/2011) 27

28 ANNUAL PROGRESS REPORT (2010/2011)

Chapter 4:partnership andcollaborationPAF belives that to alleviate the poverty partnership is very significant.It is imperative to join hands with the like minded agencies for the nobelcause of poverty alleviation. Hence PAF gives top pirority for partnershipand collaboration with different agencies (Governmental and NonGovernmenal) both at the central level and at the district level. Thedifferent efforts related to partnership forging and collaboration for theperiod of 2010 to 2011 are mentioned below.A national level coordination meeting in chairmanship of the ChiefSecretary of Government of Nepal was carried out in order to implementthe program more effectively in coordination with the government lineagencies. Further, PAf Board started to invite the Chief Secretary ofGovernment of Nepal, Secretary of Ministry of Finance and Secretary ofMinistry of Local Development as an observer in the Board meetings toenhance coordination with the government agencies.Several MoUs have also been signed with different organizations atcentral level to facilitate different tasks as well as to facilitate collaborationin implementation of sub-projects at community level.1. MoU with MoLDOn 8 October 2010, Ministry of Local Development (MoLD) and thePoverty Alleviation Fund (PAF-Nepal) agreed to work together by signinga Memorandum of Understanding and forming a strategic alliance toalleviate poverty through synergic efforts between the two institutions.The MoU was signed by Mr Som Lal Subedi, Joint Secretary, MoLD andMr Raj Babu Shrestha, Executive Director of PAF, in the presence of PAFVice Chairperson, Mr Vidyadhar Mallik and MoLD secretary Mr. KrishnaGyawali.The MoU entails increased coordination and linkages during projectplanning, implementation, monitoring, reporting and review whileimplementing targeted poverty alleviation and empowerment initiativesat the local level.2. MoU with WFPOn 30 August 2010, The United Nations World Food Programme (WFP)and the Poverty Alleviation Fund (PAF), two of the largest organisationsworking in Nepal’s most food insecure areas, joined forces by signinga Memorandum of Understanding and forming a strategic alliance toalleviate poverty and food insecurity in the Mid to Far-Western Hill andMountain regions.WFP and PAF will collaborate to provide vital food and nutritionassistance whilst engaging beneficiaries in income generating andcommunity infrastructure projects through food/cash-for-work. Specificprojects to be considered include: small scale irrigation, cash cropplantation, enhanced farming techniques and poultry farming. WFP alsoplans to provide food for training activities that will benefit members ofcommunity organizations of PAF.3. MoU with GIZOn 29 April 2011, The German Development Cooperation (GIZ) andPoverty Alleviation Fund (PAF-Nepal) have agreed to work together inthe common working districts and municipalities of Nepal.Building on the core competencies of each other, PAF and GIZ assistedthree different programmes will collaborate to improve and strengthenpro-poor governance at the local level and facilitate local level planningto articulate the voice of the disadvantaged population at the districtdevelopment committee (DDC) and municipality level.Under the new arrangement, both the institutions would work together toensure the access of poor and marginalized population to public goodsand services, provide market information to farmers through marketinformation systems and support in market linkages of agriculturalproducts, among others.4. MoU with USAID Supported EIGOn 13 Dec 2010, USAID sponsored Education for Income Generationand Conflict Mitigation project and Poverty Alleviation Fund (PAF-Nepal)have agreed to work in tandem targeting the unemployed youths of theMid Western Development region of Nepal.Building on the core competencies of each other, both the programmewill collaborate in assessing the need for job creation, developing andimparting applicable training for eligible youths and extending support forenterprise development and job creation through a package programme.Under the new arrangement, the youths of the under-served regionwill receive trainings in literacy, life skills, vocational education andANNUAL PROGRESS REPORT (2010/2011) 29

agriculture trade including Non-Timber Forest Products (NTFPs),commercial farming of vegetables, among others. Also, the poorfarmers will be informed about the appropriate technology related to thecommercial farming of vegetables and processing of NTFPs-- Medicinaland Aromatic Plants.5. MoUs with Heifer, Practical Action andLFLPOn 29 July 2011, The Poverty Alleviation Fund (PAF-Nepal) joined forceswith two international non-governmental organizations and one nationalprogramme aiming to establish synergies in poverty alleviation effortsat the grass roots and ensure increased opportunities for the poor anddisadvantaged people.PAF signed three separate memorandums of understanding (MoUs)with Practical Action Nepal, Heifer International Nepal and Departmentof Forest, Leasehold Forestry and Livestock Programme (LFLP) to worktogether on fighting poverty in common working districts.As part of the understanding with LFLP, PAF supported communityorganizations would have easy access of leasehold forestry whileleasehold forestry users groups would be facilitated and encouraged toenter in community organizations formed under the aegis of PAF. Also,both the programmes have agreed not to form separate communityorganizations in the new working areas. “PAF would also acknowledgethe leasehold forestry user’s groups if the members qualify PAF’spoverty ranking criteria”, reads the MoU. Both the programme wouldensure the participation and leadership of Women, Dalit, Janajatis andmembers of the marginalized groups in community groups. A 7-memberCentral Coordination Committee has been formed under the leadershipof PAF Vice Chairperson while a 12-member district level coordinationcommittee would be headed by the District Development Committee(DDC) Chairperson.Under the MoU with Practical Action, PAF and Practical Action wouldwork together to improve communities’ access to services by supportingthem to choose and adopt the mode of transport that better serve them.Also both the institutions would work to improve the agricultural incomeby enhancing the production through pocket area development andproviding the agricultural products easy access to market outlets throughdeveloping Gravity Goods Ropeways and other pro-poor technologies.The alliance with Heifer entails joint planning to identify poverty riddenclusters, feasible production clusters, seek support from the relatedgovernment ministries and achieve national priorities. “As PAF intendsto support in activities like income generation activities and ruralinfrastructure building as per the demand from the community, Heiferwould complement in income generation, improving nutrition, improvingenvironment as well as in social mobilization activities, “ states the MoU,“Periodic reviews of the partnership would be made as appropriate forhighest synergy from expertise of the parties.”6. MoU with HelvetasOn 7 February 2011, Helvetas Nepal and the Poverty Alleviation Fund(PAF-Nepal) joined forces forming a strategic alliance to enhance thelivelihoods of the rural poor. The alliance, to begin from Bardiya districtwith possible expansion to other districts, entails joint activities to reducethe vulnerability and increase resilience of the disadvantaged people andincrease agricultural productivity.Both the institutions have agreed to work together to facilitate accessto common land resources for land-poor and landless and disseminateappropriate technologies for the promotion of commercial farming ofvegetables particularly in riverbeds, but later also on rain-fed agriculturalland and other suitable areas. Also, they have agreed to establishsynergies to support poor farmers on market linkages of agriculturalproducts provide access to irrigation and drinking water and facilitatelocal level planning at ward and village development committee (VDC)level.7. MoU with FNCCI to work Jointly toPromote Agri-businessOn 21 November 2010, Poverty Alleviation Fund (PAF-Nepal) andFederation of Nepalese Chambers of Commerce and Industry (FNCCI)have joined hands to promote agriculture related business includinglivestock and Non Timber Forests Products(NTFPs) aimed at alleviatingpoverty and economic development.The MoU entails both the institutions engagement on capacitating theCommunity Organizations (COs) to carry out agriculture and livestockrelated business and establishing small processing enterprisesproducing high value products. The MoU also paves ways for involvingCOs in profitable and market oriented production and improved accessto market through the provision of technology and information service aswell as critical public infrastructure for promoting agribusiness, states ajoint statement issued after the signing of the agreement.To be implemented in 40 PAF programme districts, the agreement isalso expected to create and strengthen industry-wide partnerships alongthe value chain and thus forging linkage between producers, traders,processors and other stakeholders.8. Other MoUsBesides the different MoUs reached during the reporting year, PAF iscontinuing different MoUs with different institutions and programme,signed before the reporting year including the MoU with AlternativeEnergy Promotion Centre (AEPC).30 ANNUAL PROGRESS REPORT (2010/2011)

LIVESTOCK INSURANCE PROVIDINGBOON FOR COMMUNITYBy Umeed BagchandSuccess StoryWe have heard a lot about life insurance. But, the poor andbackward communities of Achham district in far-west region arethese days insuring their livestock. Just as sudden demise ofhousehold head pushes families in financial troubles, suddendeath of livestock reared on loans taken from communityrevolving fund can also land the families into troubles. Hence,through livestock insurance poor people are safeguardingthemselves from possible risks and losses. And their initiativehas become exemplary for others as well.In a place where people were facing difficulties to fulfill daysend, buying insurance cover for livestock was not an easy task.But thanks to PAF’s initiatives, community people are enjoyingthe facility with relative ease. PAF pushed for livestock insurancemainly because the prices of livestocks were skyrocketingand any loss of such expensive wealth would only worsen thesituation for the poor. Besides, as risks associated with livestockremained high in remote districts, many community people weredisenchanted to pursue livestock rearing. But thanks to PAF’sendeavor, community people decided to work for the introductionof this safety net, instead of turning away from the business.The credit of introduction of this facility goes to the localnetwork of community organizations though. In a bid to avoidthe loss and safeguard community members during loss,the network organized trainings to the CO members. “RamaRoshan Development Society also supported us immenselyin introducing livestock insurance,” said Nain Bahadur BC,secretary of the CO network.The network has mobilized respespective communities involvedin livestock rearing to insure their animals. For the cover, COmembers sign an agreement with Livestock Insurance CO. PAFhas facilitated them by layin down detail procedures on howlivestock insurance should be implemented. The manual is prettysimilar with norms of life insurance. Separate provisions havebeen put in place for insurance of big and smaller livestock. Theinitial cost incurred while registering for the livestock insuranceis borne equally by the members and PAF. The cost of renewal,however, needs to be shouldered by the livestock ownersthemselves.If a livestock died due to natural reason, the insurer COcompensates to members 80 per cent of its total cost price.“Insurance has been arranged considering the overall needsof the VDCs,” said Pramod Joshi, PAF’s Portfolio Manager forAchham district.The introduction of the service has greatly relieved the farmerswho used to suffer the most from loss of livestock. Many farmersare already enjoying the benefits from this financial cover. As aresult, people who made mockery of the service in the beginningtoo have started to take the service. “The motive of the serviceis not to earn profit, but to support the CO members that arepursuing livestock rearing,” said Khamba BC, a member of theCO that introduced the service with PAF support.Mangalsen CO that is formed by 25 PAF COs is implementingthe livestock insurance service. “The demand for the servicehas increased as more community members started to realizeits importance,” said Jung Bahadur Nepali, Chairman ofMangalsen CO.(Bagchand is a BBC Correspondent)ANNUAL PROGRESS REPORT (2010/2011) 31

Success StoryPig farming transformslives of DalitsDarabatti Mallik, a member of impoverish Dum community --one of the poorest and excluded ethnic groups of Siraha district,has undergone a sea change in her life through pig rearing. Thisincome generating activity she started with the support of PAFtwo years ago not only helped her save her husband life whenhe suffered brain hemorrhage while working in others’ pig farm,but also enabled her enroll children for education and owner of aresidential plot and herd of pigs.Darabatti had started rearing pigs with 11 piglets that she boughtwith loans support of Saraswoti-Jyoti Community Organizationof PAF. “Brain hemorrhage of my husband suddenly landed mein helpless situation. I needed to treat him and also take care ofthe children, whereas we had no money and property to supportthat,” she recalled her plight.Commencement of PAF program, however, came as a boon forher. “Now all my financial woes have vanished -- thanks to softloans the CO provided to its members,” she added.After six months of starting the farm, she jumped into meatretailing. With assistance of her husband’s younger brother, shestill runs the meat shop in weekly markets in Lahan and Thadi,the local business hubs.With the income, she could afford decent treatment for herhusband in Siliguri of India. “This has remarkably improved hishealth. Now he even extends me a helping hand in the farm,”she smiled.Over these years, her son, Pashupati Mallik, passed out ofschool leaving certificate exams. He recently joined Nepal Policeservice as well. “Other three children are studying in an Englishmedium school,” she stated.Darabatti is now planning to build a house in her own residentialplot that she bought along Lahan-Thadi road segment. Accordingto Darabatti, she cleared her initial loans, but still owes Rs 19,000that she took as loans from the CO few months ago.Inspired by Darabatti’s success, 17 of 23 Dalit members ofSaraswoti-Jyoti CO have jumped into pig farming. “Thesesupports of PAF have spurred very positive outcome in thelives of the rural poor,” said Tej Narayan Chaudhary, presidentof Gramjyoti Development Center, a partner organization of PAF.He added that the impact could further multiply if rural roads areextended and markets developed in the villages.(Courtesy: Gorkhapatra daily)32 ANNUAL PROGRESS REPORT (2010/2011)

Chapter 5:THE OUTCOMEAND RESULTThis chapter discuss the the outcome of someof the major studies relating to PAF results onthe ground.During the reporting year, some of the few imporatant outcome studywere done including the details report of the impact evaluaiton studyconducted by CEDA, TU.An Independetn PAF impact evluation, conducted in six sample districts,and three control districts, show that the programme impact on realper capita consumption growth was 31 per cent over a two year PAFintervention period. This is impressive in the context of the same analysiswhich indicates that in the absence of the PAF programme, the targetedhouseholds would have recorded about negative 2 per cent growth.The estimated net programme impact on per capita consumption (in realterms adjusted for price inflation) growth is 13 per cent for PAF IncomeGenerating (IG) participant households, 28 per cent for PAF moneyrecipient households and 49 per cent for those beneficiaries who havereceived the money for at least six months. The net impact in the growthin per capita consumption is even higher for Dalit and Janajatis andfor the poorer segments of the population, implying program’s ability todistribute growth towards targeted groups.The evaluation data shows a 10 per centage point decrease in incidenceof food insufficiency and 7 per centage point increase in school enrolmentrate for children aged 6-15. The programme effect is also seen in access toservices (agriculture centers, community forest groups, farmer’s groups)and women’s empowerment. For child malnutrition (stunting, underweight)a higher, positive impact is seen for children between 1-2 years of ageamongst PAF supported households. (See details in Annex 21)A social re-assessment study of 289 sample COs from 24 programmedistricts covering 8,168 HHs, has shown that the average income ofindividual households has increased by 82.5 per cent. The comparativeanalysis, with three or more than three years of maturity period, showsthat HH level assets and school enrollment status of the children haveincreased while there was a marked improvement in food sufficiencyfor individual households. Also,construction and use of toilet/latrine wasincreased.The data also shows that among the 8,168 CO members HHs, theaverage real income at the HHs level is increased by 82.5 per cent (SeeAnnex 13)One another analysis on revolving fund status at CO level, carried outduring the end of FY 2066/67, shows that communities are managingtheir revolving fund satisfactorily. The data collected, shows that PAFprovided fund has increased by 7.8 per cent. Similarly, among thetotal CO members, 84.6 per cent of the members have accessed thefund at least for once to initiate their income generation activities.The assessment also shows 83.8 per cent of the total fund has beeninvested as loan to its members, 14.1 per cent deposited at the bankand the remaining fund is with the COs in the form of cash. Further,assessment shows that the average rate of repayment is 76.1 per cent.(See Annex 14)ANNUAL PROGRESS REPORT (2010/2011) 33

34 ANNUAL PROGRESS REPORT (2010/2011)

Chapter 6:FinancialManagementThis chapter discuss the the outcome of some of the majorstudies relating to PAF results on the ground.6.1. Financial Planning andManagementPAF Financial Management System consists of three pillars namely-Financial Planning, Financial Management and Financial Reporting.Financial management is directed by Applicable Accounting Standardswhich is accepted both by Government of Nepal and World Bank. It alsofulfills the requirements of partner organizations. Financial ManagementSystem of PAF is governed by Financial Management Manual.PAF accounting system is based on Cash basis. It maintains all books ofaccounts relating to receipts and expenditures. PAF maintains its booksof account on computerized accounting software-Fin App.For effective implementation of PAF activities and monitoring ofdocuments, regular auditing is done by internal and external auditors.M/S P.P. Pradhan & Company is assigned as internal auditor for theFY 2066/67 and FY 2067/68. Similarly, external audit is carried out byOffice of Auditor General.For effective planning and monitoring of funds, PAF has signed separateMoU with Rastriya Banijya Bank (RBB) and Nepal Bank Limited(NBL). PAF has opened Main account and along with main account,separate bank accounts are opened for PAF operating expenses and forProgramme expenses. Also, RBB and NBL have opened Operating bankaccount for each community organization in their concerned districts.PAF prepares Implementation Progress Report (IPR) on a trimester basisfor the purpose of review by internal management and reporting to theWorld Bank., The report is comprised of different sections including briefdescription of project progress. The IPR is the comprehensive reportthat includes various reporting formats, which cover financial, physicalprogress, contract expenditure and procurement information. The report2A discloses the information on sources and uses of funds. Likewise,2B provides information on uses of funds by project activity and 2Cis the section that gives information on IDA eligible expenditure andthe disbursement status. Section 2D is for reconciliation statement ofspecial account and the projection for the forthcoming trimester.Review of physical progress section provides all information on theachievement against planned with regards to major physical indicatorsset by PAF. Contract expenditure report has two parts- goods andThe funds flow modality of PAF with community organization is as follows:Figure : PAF Funds Flow ModalityPAFLevel(Centre)CO Level(District)PAFProgramA/CCommunityOperating A/Cconsultants. Furthermore, goods and consultancy are categorized on thebasis of prior or post review threshold. Similarly, procurement sectionhas two parts -goods and consultancy. Furthermore, procurement ofconsultant has been categorized as individual consultant and firmconsultant. Whether procurement is prior or post review depends uponthe threshold for procurement of goods and consultants.6.2. ProcurementPAFMain A/CCommunityContributionPAFOperatingA/CPartner Organization(PO) ProvideTechnical Assistanceto CommunityOrganization (CO)Annual procurement plan (PP) for the FY 2010/11 has been preparedand implemented. The PP covers procurement of services, goodsand non-commodity services. Based on the Public ProcurementAct 2063 Public Procurement Regulation 2064 and the World BankProcurement Guideline, PAF has prepared a procurement guideline andall the procurement of goods and services are procured by following theguideline.6.3. Budget and ExpenditureThe total expenditure in FY 060/61 (2003-04), FY 2061/62 (2004-05),FY 2062/63 (2005-06), FY 2063/64 (2006-07), FY 2064/65 (2007-08),FY 2065/66 (2008-09), FY 2066/67 (2009-10) and FY 2067/68 (2010-ANNUAL PROGRESS REPORT (2010/2011) 35

11) were Rs.5.78M, Rs. 247.32 M, Rs. 493.50 M, Rs 1,210.30 M, Rs. 1,875.48 M, Rs. 1,647.20 M, Rs. 2,481.5 M and 2601.28 M respectively.Total expenditure of PAF till FY 2010/11is Rs. 10,561 M. Out of the total PAF expenditure of Rs. 10,561 M till FY 2067/68 (2010-11), 94.12 per centwas in Program Implementation through CO & PO (CO-77.98 per cent & PO - 16.14 per cent), 2.05 per cent in Monitoring, Training, Studies and OtherProgram Support, 0.55 per cent in capital investment for PAF and 3.28 per cent in PAF operation/ recurrent cost. The details are provided in Annex 16.Out of the total PAF expenditure up to FY 2067/68 (2010/11), 93.52 per cent is from IDA (International Development Agency- the World Bank) grant,2.21 per cent is from IFAD (International Fund for Agriculture Development) grant and the rest 4.26 per cent from GoN (Government of Nepal) source.chart 30: Number of Sub-projectsMonitoring, Training,Studies and OtherProgram Support2.05%Capital Investment0.55%Operation/recurrent cost3.28%Program Implementationthrough CO & PO 94.12%(CO 77.98, PO 16.14)In this FY 2067/68, total expenditure is NRs. 2,60,12,83,022.25 which is 85.59 per cent of total budget of NRs.3, 039,166,000. Expenditure Trend isas follows:Table 19 : Expenditure TrendActivitiesFY-2067/68 ExpenditureAs of FY-2067/68 Expenditure (Cumulative)Amount in Nrs % Amount in Nrs %Programe Cost 2,466,199,122.73 94.81 9,941,161,835.34 94.12Operating Cost 95,107,597.62 3.66 345,925,336.61 3.28Capital Cost 369,821.20 0.01 57,877,128.90 0.55Training Workshop/Consultancy Cost 39,606,480.75 1.52 216,967,416.67 2.05Total 2,601,283,022.30 10,561,931,717.52In FY 2010/11 (067/068), the annual budget was estimated to be Rs. 3,039,166,000.00. Out of which 3.28 per cent was provisioned under recurrentcost and the rest 96.72 per cent was under program and capital cost. The expenditure details for FY 2067/68 is provided in Annex 17. Also, PAFunaudited financial statement and project account for the reporting year is provided in Annex 21 and 22.Currently the PAF Project II is funded by IDA Grant with US$ 100m and IFAD Grant of US$ 4m for four years till January 2012. IDA disbursement to thisPAF II project till date is 98.49 per cent (as advance) i.e. equivalent to about US$ 98.49m. IFAD disbursement to PAF till date is US$ 2.29m. The detailsof PAF II project achievment and expenditure status are shown in Annex 18, 19 and 20.Recently, IDA hs agred to providd additional finacing of US$ 75 M (out of which US$65 M is from IDA grant and US$ 10M grant is from FPCRTF) forPAF II project.IDA grant for PAF Project I of US$ 40 M (Initial US$ 15 M and Additional US$ 25 M) has been made utilised by January 2009.36 ANNUAL PROGRESS REPORT (2010/2011)

6.4. Disbursement to Community OrganizationsFund Disbursement has to be made against contracts (sub-project agreements) with Community Organization (CO) in two or more trenches while itneeds to maintain controlling mechanism based on agreed upon milestones.Table 20: Disbursement Expenditure to COs FY 2067/68 (in Million)DistrictCO Registered w/PAF (No.)AgreementWith CO No. Amount (NRs.)Total Amount Released(NRs.)Regular 40 DistrictsMountain 611 519 590 250,915,888.41 329,754,215.74Hill 1367 1149 1309 646,462,330.02 1,127,736,555.05Terai 1066 1144 1229 705,177,294.31 630,448,194.1340 Dist. Total 3,044 2,812 3,128 1,602,555,513 2,087,938,965Innovative Programme DistrictsInnovative Tot. 26 20 20 6,022,585.00 9,076,643Total = 3,070 2,832 3,148 1,608,578,098 2,097,015,608Based on the community demand, several activities related to income generation and small infrastructure sub-projects are being implemented. Thedisbursment status in FY 2067/68 is shown in Annex 2. Untill FY 2010/11 (2067/68) PAF has disbursed NRs 8,266 m directly to community account.The region wise distribution of disbursement shows that the hilly region has the highest share followed by Terai and Mountain regions.6.5. Disbursement to Partner OrganizationsDuring the reporting year, altogether 370 Partner Organizations (POs) have been working with PAF to facilitate and provide necessary technical supportsto the COs in the PAF districts for which PAF has disbursed Rs. 456 M. On the basis of the expenditure on PO, the hilly region has the highest sharewith 50.86 per cent and then Mountain and Terai regions with 14.65 per cent and 34.45 per cent respectively. Similarly the NDM programme stands for0.03 per cent of the total disbursement to POs.Table 21 : Disbursement Expenditure to POsS.N. Districts Disbursed in FY-67/68 %Disbursed as ofFY-67/68 (Cumulative)%A Hill 232,431,712.30 50.86 894,418,028.48 52.47B Mountain 66,970,882.78 14.65 238,824,716.66 14.01C Terai 157,442,657.05 34.45 525,067,088.32 30.80D NDM 145,000.00 0.03 46,270,292.95 2.71Total 456,990,252.13 1,704,580,126.416.6. Additional FundingThe World Bank has agreed to provide 75 million US$ grant assistance package (IDA US $ 65M and FPCRTF US $ 10 M) for the Government of Nepalto help meet its objectives to alleviate poverty through PAF.The additional US$ 75 million support for PAF will continue supporting these activities in more communities. It will also help improve food security inresponse to the drought and price fluctuations, particularly among the 3.7 million Nepalese most vulnerable to the spiraling cost of food.6.7. AuditInternal Audit of PAF for the FY 2067/68 has been carried out by PP Pradhan and Co., Charter Accountants on a trimester basis. External Audit for theFY 2067/68 has been carried out by the Office of the Auditor General on annual basis. After completion of the contract, Community Organizations (COs)submit their Audit to PAF. Also social audit is being carried out by COs. Partner Organizations (PO) also submit audit report of their contract to PAF. AlsoPAF undertakes audit of POs on a sample basis. PAF has plans to undertake audit of all PO and sample CO’s of each PO.ANNUAL PROGRESS REPORT (2010/2011) 37

Chapter 7:Lessonsand FutureDirectionsThis chapter discuss the the outcome of some ofthe major studies relating to PaAF results on theground.7.1. LessonsPAF will work on the expansion of its programme in new VDCs anddistricts. However, different strategies will be taken for poorest districtsand districts with greater access and livelihood opportunities. Whileexpanding in districts with greater access and livelihood opportunities,emphasis will be given to the most deprived community.Based on lessons learned and considering the immense demand forboth Income Generating and Infrastructure sub-projects effort will begiven for more prudent use of available resources by giving due attentionin selection of target communities and the sub-project activities. PAF'sparticipatory project formulation and implementation managementprocess will be reviewed so that priorities of ultra poor/ marginalized beaddressed. To reduce duplication of efforts and redundancies, inclusionof PAF activities in integrated district plan and co-financing from DDC/VDC and other agencies will be highly prioritized.Community people are engaged in diversified IG activities includingagriculture, livestock, manufacturing, service sector and trading.These activities need to be modernized by improving technology andby methods such as using improved animal breeds/seeds, animalhealth facilities and husbandry methods coupled with proper marketingplanning of the produced goods. Effort will be given to synchronizethese activities with community infrastructures such as irrigation, road,drinking water and marketing management.PAF's current initiative to build the Community's Capacity to ManageRevolving Fund and Operate the Sub-Projects and raise the awarenessof the community through functional literacy will be further intensified.To this, social mobilization will be kept unabated. Considerable inputwill be given to establish COs linkages with basic health, education andyouth training.Provisions for innovation and special programme will be reviewedand emphasis will be given to replicate and scale up the successfulinnovations. PAF will continue its efforts to explore an alternative tolivestock and agriculture based activities for landless poor.As PAF is maturing, technical assistance for activities under highdemand needs to be provided regularly and attention should be paid tothe quality of service providers. This is an important factor in ensuringthat efforts made by communities are sustained and served to bringthem permanently out of poverty. A new system of PO performanceevaluation with involvement of COs has been started this year, thisprocess will be will be continued with further improvements in comingdays.Efforts will be given to increase collaboration with private sector,governmental agencies, local governments and donor agenciesat all level to implement the programme and sub-projects in thecommunities to bring marked impact in considerably less time bycomplementing and supplementing each other's effort. SeveralMemorandums of Understanding (MoUs) has already been signed withdifferent organizations to facilitate collaboration. PAF's effort will be tomaterialize it in implementation to benefit the poor while exploring furthercollaborative efforts in the future.Increased governmental and civil society ownership in the programmewill be achieved by regularizing productive workshops, reviews,coordination meetings with relevant stakeholders in both central,regional and district levels. In addition monitoring and supervision visitsby central level and district governmental agencies, DDCs, VDCs, civilsocieties, political representatives and journalists in PAF project sites inthe district will be organized regularly.Community institutionalization is taking place with the formation of COFederations, enterprises, multi-purpose or single purpose cooperativesand VDC wise informal networks of COs as per communities' felt need.PAF will give effort in formalizing (and legalizing) these institutiondevelopment process while ensuring that poor community will gainmaximum benefits from these institutions. For sustaining incomegeneratingactivities initiated by communities, important initiatives willbe taken to establish the linkage with financial institutions, market aswell and the availability of Insurance Safety-Net.PAF is working with its exit strategy focusing on its strategic thrust toenable community to go to sustained path to get out of poverty withina stipulated 5-6 years of time. In this line, PAF will work on activitybased pocket area development approach by building on the potentialstrength of the area, linking with market and at the same time focus willbe given on improvement in nutrition. PAF will also give apecial focusto upliftment of marginalised community. Moving ahead, PAF will payincreased attention to research and development, monitoring processesand outcomes, improving financial management and capacity buildingof CO, PO, Local Bodies and PAF.38 ANNUAL PROGRESS REPORT (2010/2011)

7.2. ChallengesIn view of the wide varieties of activities undertaken within the subproject,the challenges faced for sustainability of the sub-projects includethe linkage with market for sustaining income-generating activities as wellas the availibility of Insurance Safety-Net particularly for livestock. PAFis also to explore an alternative to livestock based activities for landlesspoor as the huge demand are mainly livestock related. Another importantchallenge before PAF is to build the Community Capacity to ManageRevolving Fund and Operate the Sub-Projects and raise the awarenessof the communit through functional literactcy. Also, there is a need toadopt different approaches for poorest districts and districts with greateraccess and livelihood opportunities and special support to vulnernblepoor, backward ethnic groups such as Mushhar, Dom, Chamar, Raute,among others.7.3. The Future strategyPAF is now working for the expansion of its programme in new VDCs anddistricts and important initiatives are taken for the institutionalization ofCommunity Organizations as co-operative or other forms of higher tierinstitution as per their decision and link with financial institution and marketswhere programme is already in implementation. Also the PAF is layingspecial emphasis on the capacity building of community organization,partner organization and PAF while co-ordination and collaboration isbeing accorded high priority. This year onwards PAF is strenghening onsyststmatic Grievance Handling Process with stakeholders’ views onthe effective Performance Management System of COs, POs and PAFsecretariat.Marginalized Community Development ProgrammeDespite the project interventions in the poor districts, diffferentmonitoring result shows that the marginalized community is stilllagging behind to reap the advantage of programme. So PAF isworking to remedial steps in this regard. The special focus will bemade to the marginalized communities including Mushhar, Dom,Dushadh, Chamar, Khatwe, Byadha, Kusunda, Raute, Gandharva,Badi, Patharkatta, Muslims, Haliya, Deuki, Jhuma, Disabled, singlewomen, and HIV infected people, who are deprived, backward,illiterate, socially excluded. The government of Nepal has alsoentrusted PAF to carry out special programme for these groupsunder the immediate relief programme of the fiscal year 2011/12.Under the programme, specially tailored social mobilization is beingconducted This kind of training covers- plumbing, house wiring/electrification, mechanic-cycle/rickshaw/motorcycle, welding, bet/bamboo product making, candle making, driving etc. More focusis to be given to youth force of the community. This kind of skillalso enables them to seek employment in different organisationsprivate,NGO, INGO etc. Special attention is given to commercializethe traditional occupation of poor through enhancing their capacity,supporting appropriate equipment/technology, and creating linkageswith markets.To this effect, PAF has developed a strategy forspeically focussed programme for marginalied community.Pocket Area Development ProgrammePAF has realized that the beauty of diversification of IGA activitiesis being limited to fullfill the local market demand and buildingconfidence to initiate income generation activities for smallproducers. In order to commercialize particular products, linkageof external market is pre-requisite and to establish marketingchain, volume of markatable production is important.Diversification of IG activities has limited the potential ofestablishing necessary business services required to poorproducers from public as well as private sectors. In many of COs,activity based areas have emerged in different clusters. But POsare not clear to link those activities of cluster with market, andfor their institutionalization. It has, heneceforth, been inevitable toencourage POs to link activity based areas of cluster with marketsand sustain them. To this effect, PAF has develpved a strategy onactivity based pocket area development.ANNUAL PROGRESS REPORT (2010/2011) 39

Annex 1Current Board of Governors (as of January 2012)ChairpersonRt. Hon. Dr Babu Ram BhattaraiPrime MinisterVice ChairpersonMemberMemberMemberMemberMemberMemberMemberMemberMemberMemberSecretary PAF BoardMr. Janak Raj JoshiMr. Yuba Raj BhusalSecretary, National Planning CommissionMr. Rishi Raj LumsailiChairperson, Association of District DevelopmentCommittees of NepalMs. Mahin LimbuChairperson, Association of Village DevelopmentCommittees of NepalMs. Chand Tara KumariChairperson, National Women CommissionMs. Sushila Shirpali ThakuriChairperson , National Dalit CommissionMr. Akhileshwor Lal DasMr. Basanta Bahadur TelarMs. Durga Neupane(Bhattarai)Dr. Kal Bahadur RokayaMs. Kamala RaiMr. Raj Babu ShresthaEx-Board Members who served during the reporting year (FY 2010-11)Vice ChairpersonMemberMemberMemberMemberMemberMemberMemberMemberMr. Vidyadhar MallikMr. Bijul Kumar BishwokarmaNational Dalit CommissionMrs. Nainkala ThapaNational Women CommissionDr. Bal Gopal BaidyaDr. Arju RanaMr. Shree Krishna UpadyayaMr. Khalil MiyaDr. Duman ThapaMr. Yub Raj Panday, National Planning Commission40 ANNUAL PROGRESS REPORT (2010/2011)

ANNEX 2CO registration, agreement for sub-project and disbursement status (Fiscal year 2010/11 only)DistrictCO Registered w/ PAF(No.)AgreementWith CO No. Amount (NRs.)Total Amount Released(NRs.)HillDarchula 1 27 33,347,011 136,413,197Pyuthan 20 123 140 60,549,806 104,715,116Ramechhap 37 63 76 32,077,662 104,468,820Achham 106 127 133 113,543,057 94,575,856Baitadi 85 89 100 53,321,530 79,077,301Bajhang 139 68 81 51,698,628 59,497,890Bajura 5 6 11 10,154,210 36,877,853Dadeldhura 4 15 14,461,725 53,448,505Dailekh 38 38 42 15,780,170 45,589,367Doti 55 47 50 13,811,869 39,126,806Jajarkot 1 2 5 6,910,459 51,733,649Kalikot 48 49 64 43,588,367 72,892,250Rolpa 77 77 81 24,168,491 20,347,084Rukum 54 38 43 28,047,520 58,910,111Sindhuli 24 18 31 20,004,742 59,210,463Dhading 85 78 83 22,753,216 23,021,790Khotang 156 57 58 28,218,602 23,601,350Panchthar 210 54 54 15,426,859 13,312,733Salyan 122 123 123 24,762,179 22,476,322Terhathum 59 45 49 12,639,626 10,704,780Udayapur 46 42 43 21,196,601 17,735,314Lalitpur 150,000Makwanpur 1,687,397Hill Total 1,367 1,149 1,309 646,462,330 1,129,573,952MountainMugu 22 25 70 30,901,407 36,262,930Dolpa 43 43 45 33,252,207 33,522,362Humla 14 15,470,378 20,324,553Jumla 9 10 16 20,806,146 104,987,283Rasuwa 16 7 7 4,619,700 24,322,713Okhaldhunga 87 87 87 17,633,125 14,068,378Sindhupalchok 186 125 125 37,293,255 28,417,906Solukhumbu 38 55 55 16,810,992 10,582,433Taplejung 210 167 171 74,128,678 57,265,658Mountain Total 611 519 590 250,915,888 329,754,216TeraiKapilbastu 78 79 82 55,031,783 66,731,611Siraha 36 35 35 12,425,808 74,908,444Mahottari 32 32 47 25,630,014 56,236,030Rautahat 438 399 421 303,136,958 219,526,666Sarlahi 112 147 81,020,501 51,090,133ANNUAL PROGRESS REPORT (2010/2011) 41

DistrictCO Registered w/ PAF(No.)AgreementWith CO No. Amount (NRs.)Total Amount Released(NRs.)Bara 79 106 106 36,129,445 26,044,376Bardiya 102 99 104 29,897,633 21,806,988Dhanusha 130 131 131 85,443,827 56,682,928Parsa 73 68 73 40,233,064 36,162,094Saptari 98 83 83 36,228,262 21,258,923Chitawan 7 7 7 1,048,535 2,449,546Kanchanpur 19 13 13 4,974,050 4,789,700Terai Total 1,092 1,164 1,249 711,199,879 637,687,440Total 3,070 2,832 3,148 1,608,578,098 2,097,015,608Annex 3CO registration, agreement for sub-project and disbursement status (Cumulative)DistrictCO Registered w/ PAF(No.)AgreementWith CO No. Amount (NRs.)Total Amount Released(NRs.)% ReleasedHillDarchula 885 866 1,236 579,210,992 547,637,756 95%Pyuthan 1,127 1,095 1,267 610,175,203 602,972,908 99%Ramechhap 1,189 1,157 1,294 511,880,353 500,476,747 98%Achham 595 587 671 397,110,801 330,930,339 83%Baitadi 668 532 635 311,802,657 286,536,441 92%Bajhang 452 365 468 243,676,055 205,623,986 84%Bajura 401 389 455 264,005,047 258,648,919 98%Dadeldhura 378 373 421 224,007,734 217,055,319 97%Dailekh 418 418 434 231,766,778 228,376,189 99%Doti 473 455 479 225,833,718 224,300,411 99%Jajarkot 360 295 316 227,044,139 179,950,720 79%Kalikot 602 556 588 300,837,093 253,989,378 84%Rolpa 175 175 179 71,902,311 63,244,004 88%Rukum 334 258 272 142,039,582 122,776,067 86%Sindhuli 800 789 955 492,041,451 480,225,059 98%Dhading 101 94 105 36,449,547 31,235,597 86%Khotang 156 57 58 28,218,602 23,601,350 84%Panchthar 210 54 54 15,426,859 13,312,733 86%Salyan 137 129 132 32,090,489 27,293,082 85%Terhathum 59 45 49 12,973,738 10,704,780 83%Udayapur 46 42 43 21,196,601 17,735,314 84%Baglung 1 1 1 722,165 722,165 100%Dhading 81 81 98 40,283,561 39,807,021 99%Kavrepalan 1 1 1 1,735,037 1,735,037 100%Lalitpur 2 2 2 6,784,220 6,784,224 100%Makwanpur 111 98 105 41,947,304 39,437,593 94%42 ANNUAL PROGRESS REPORT (2010/2011)

DistrictCO Registered w/ PAF(No.)AgreementWith CO No. Amount (NRs.)Total Amount Released(NRs.)% ReleasedSurkhet 1 1 1 3,015,982 3,015,982 100%Hill Total 9,763 8,915 10,319 5,074,178,018 4,718,129,121 93%MountainMugu 266 244 380 152,853,467 142,775,656 93%Dolpa 208 208 213 128,977,487 124,410,036 96%Humla 329 329 375 179,096,005 178,669,096 100%Jumla 474 472 509 394,425,975 366,584,097 93%Rasuwa 274 262 272 125,574,086 112,415,380 90%Okhaldhunga 87 87 87 17,633,125 14,068,378 80%Sindhupalch 186 125 125 37,293,255 28,417,906 76%Solukhumb 60 55 55 16,810,992 10,582,433 63%Taplejung 210 167 171 74,128,678 57,265,658 77%Mountain Total 2,094 1,949 2,187 1,126,793,072 1,035,188,640 92%TeraiKapilbastu 905 887 931 524,501,211 485,052,370 92%Siraha 1,328 1,319 1,341 515,923,195 488,315,873 95%Mahottari 578 565 585 254,732,973 226,302,083 89%Rautahat 1,449 1,343 1,402 835,659,348 620,826,328 74%Sarlahi 912 1,024 1,059 479,960,630 420,834,668 88%Bara 120 106 106 36,129,445 26,044,376 72%Bardiya 102 99 104 29,897,633 21,806,988 73%Dhanusha 130 131 131 85,443,827 56,682,928 66%Parsa 151 141 146 73,048,478 54,513,655 75%Saptari 98 83 83 36,228,262 21,476,717 59%Chitawan 47 47 74 18,031,856 17,617,264 98%Kanchanpur 141 132 132 43,065,392 40,099,342 93%Morang 79 77 77 48,165,610 32,087,755 67%Nawalparasi 1 1 1 1,551,248 1,551,248 100%Terai Total 6,041 5,955 6,172 2,982,339,107 2,513,211,595 84%Total 17,898 16,819 18,678 9,183,310,197 8,266,529,356 90%Annex 4POs, COs and Coverage (Fiscal year 2010/11 only)DistrictNo. of WorkingPosTotal VDC +Municipality inDistrictPO CommittedNo. of VDCCO WorkingVDCSub Proj. No.IG Infra CO Member HHBeneficiary HHTotal BeneficiaryHHHillDarchula 10 41 41 41 7 20 294Pyuthan 12 49 50 49 129 11 465 4320Ramechhap 9 55 55 55 63 13 841 1427Achham 16 75 67 64 130 3 3456 4524Baitadi 14 63 63 62 90 10 1935 2494Bajhang 10 47 47 45 63 18 1859 1483ANNUAL PROGRESS REPORT (2010/2011) 43

DistrictNo. of WorkingPosTotal VDC +Municipality inDistrictPO CommittedNo. of VDCCO WorkingVDCSub Proj. No.IG Infra CO Member HHBeneficiary HHTotal BeneficiaryHHBajura 4 27 27 27 6 5 138 244Dadeldhura 8 21 21 21 2 13 277Dailekh 5 56 25 25 38 4 1173 1267Doti 5 51 36 34 47 3 1267 1406Jajarkot 8 30 26 26 2 3 51 229Kalikot 6 30 30 30 49 15 1370 2152Rolpa 5 51 22 22 77 4 2166 1422Rukum 10 43 33 33 33 10 942 1354Sindhuli 10 54 54 38 18 13 462 896Dhading 8 50 20 19 75 8 1971 1056Khotang 7 76 38 30 50 8 1655 2949Panchthar 7 41 21 21 54 1443 746Salyan 6 47 27 27 123 3376 1797Terhathum 4 32 16 16 35 14 1237 762Udayapur 10 45 23 23 34 9 1109 1695Baglung 0 60 0 1Dhading 1 50 6 6Kavrepalanchok 1 90 1 1Lalitpur 2 42 4 2Surkhet 0 48 0 1Hill Total 178 1,274 753 719 1,125 184 26,916 32,794MountainMugu 6 24 24 24 51 19 299 1308Dolpa 3 23 23 23 43 2 1236 1297Humla 5 27 27 27 14 178Jumla 7 30 30 30 11 5 336 419Rasuwa 6 18 18 16 7 221 206Okhaldhunga 7 56 28 28 87 2244 1330Sindhupalchok 11 79 33 33 125 3318 1969Solukhumbu 3 34 14 14 55 865 1073Taplejung 9 50 41 40 167 4 3341 3363Mountain Total 57 341 238 235 546 44 11,860 11,143Terai 6 24 24 24 51 19 299 1308Kapilbastu 15 78 78 71 60 22 1875 1839Siraha 17 108 108 88 35 756 756Mahottari 12 77 46 46 42 5 862 1020Rautahat 9 97 97 74 395 26 9576 12785Sarlahi 16 100 67 67 112 35 957Bara 13 99 46 45 106 2106 2177Bardiya 6 32 18 15 99 5 2540 1787Dhanusha 14 102 51 51 131 3519 3698Parsa 11 83 48 48 56 17 1900 1765Saptari 15 115 48 48 83 2345 4303Chitawan 1 38 7 7 7 195 31144 ANNUAL PROGRESS REPORT (2010/2011)

DistrictNo. of WorkingPosTotal VDC +Municipality inDistrictPO CommittedNo. of VDCCO WorkingVDCSub Proj. No.IG Infra CO Member HHBeneficiary HHTotal BeneficiaryHHKanchanpur 1 20 20 8 13 308 294Makwanpur 2 44 18 18Morang 3 65 4 3Nawalparasi 0 74 0 1Terai Total 135 1,132 656 590 1,139 110 25,982 31,692Total 370 2,747 1,647 1,544 2,810 338 64,758 75,629Annex 5POs, COs and Coverage (cumulative to date)DistrictNo. ofWorking PosTotal VDC +Municipality inDistrictPO Committed No.of VDCCO WorkingVDCSub Proj. No.IG Infra CO Member HHSub Proj. No.Total BeneficiaryHHHillDarchula 10 41 41 41 851 393 17,828 28,734Pyuthan 12 49 50 49 1018 258 31,324 35,490Ramechhap 9 55 55 55 1139 190 27,873 30,679Achham 16 75 67 64 609 62 19,331 21,928Baitadi 14 63 63 62 526 109 17,272 20,262Bajhang 10 47 47 45 297 171 9,246 19,394Bajura 4 27 27 27 389 66 11,826 14,564Dadeldhura 8 21 21 21 371 50 11,033 11,613Dailekh 5 56 25 25 418 16 14,990 15,181Doti 5 51 36 34 455 24 14,776 14,972Jajarkot 8 30 26 26 293 23 10,760 15,971Kalikot 6 30 30 30 556 32 16,239 17,226Rolpa 5 51 22 22 175 4 5,094 4,341Rukum 10 43 33 33 242 30 7,849 8,403Sindhuli 10 54 54 38 792 163 24,533 28,692Dhading 8 50 20 19 91 14 2,418 1,547Khotang 7 76 38 30 50 8 1,655 2,949Panchthar 7 41 21 21 54 1,443 746Salyan 6 47 27 27 128 4 3,594 1,973Terhathum 4 32 16 16 35 14 1,237 762Udayapur 10 45 23 23 34 9 1,109 1,695Baglung 0 60 0 1 1 13 142Dhading 1 50 6 6 81 17 2,394 2,887Kavrepalanchok 1 90 1 1 1 1 11 125Lalitpur 2 42 4 2 2 416 516Surkhet 0 48 0 1 1 9 655Hill Total 178 1,274 753 719 8,605 1,662 254,273 301,447MountainANNUAL PROGRESS REPORT (2010/2011) 45

DistrictNo. ofWorking PosTotal VDC +Municipality inDistrictPO Committed No.of VDCCO WorkingVDCSub Proj. No.IG Infra CO Member HHSub Proj. No.Total BeneficiaryHHMugu 6 24 24 24 275 121 7,094 12,385Dolpa 3 23 23 23 208 5 6,178 6,264Humla 5 27 27 27 331 44 7,860 8,579Jumla 7 30 30 30 481 91 16,958 17,898Rasuwa 6 18 18 16 261 12 7,730 8,450Okhaldhunga 7 56 28 28 87 2,244 1,330Sindhupalchok 11 79 33 33 125 3,318 1,969Solukhumbu 3 34 14 14 55 1,378 1,073Taplejung 9 50 41 40 167 4 3,341 3,363Mountain Total 57 341 238 235 1,990 277 56,101 61,311TeraiKapilbastu 15 78 78 71 862 440 24,539 34,902Siraha 17 108 108 88 1302 257 31,365 32,619Mahottari 12 77 46 46 580 5 14,302 14,312Rautahat 9 97 97 71 1338 228 36,760 44,964Sarlahi 16 100 67 67 1024 35 26,462 27,292Bara 13 99 46 45 106 3,116 2,177Bardiya 6 32 18 15 99 5 2,540 1,787Dhanusha 14 102 51 51 131 3,519 3,698Parsa 11 83 48 48 129 17 4,166 3,892Saptari 15 115 48 51 83 2,345 4,303Chitawan 1 38 7 7 52 28 1,229 2,055Kanchanpur 1 20 20 8 132 3,049 3,079Makwanpur 2 44 18 18 66 39 3,154 3,130Morang 3 65 4 3 77 45 3,090 3,099Nawalparasi 0 74 0 1 1 11 705Terai Total 135 1,132 656 590 5,981 1,100 159,647 182,014Total 370 2,747 1,647 1,544 16,576 3,039 470,021 544,772Innovative Programme DistrictsNDM-2005 12 25 25 10 2 8,999NDM-2008 25 52 52 17 8 5,228NDM Total 37 0 77 77 27 10 0 14,227Total 407 2,747 1,724 1,621 16,603 3,049 470,021 558,99946 ANNUAL PROGRESS REPORT (2010/2011)

Annex 6PAF in Terai Border VDCsTerai Border VDCDistrict Total VDC PAF Coverage VDC CO Registration Nos CO Agreement NosCO MemberBeneficiary HHTotal PAF AgreementAmount (Rs.)IG No. IG Amount INFRA No. INFRA AmountBara 16 15 14,468,370 40 14,468,370 0Bardiya 9 4 18 18 453 3,860,966 18 3,860,966 0Chitawan 4 1 5 5 145 1,530,197 5 1,530,197 0Dhanusha 13 4 10 10 279 7,044,580 10 7,044,580 0Kanchanpur 8 1 4 4 85 1,226,300 4 1,226,300 0Kapilbastu 18 18 186 175 5132 121,770,446 163 70,207,763 93 51,562,684Mahottari 7 5 74 74 1557 28,429,663 74 28,429,663 0Parsa 20 11 37 36 1116 18,001,080 34 15,249,300 3 2,751,780Rautahat 6 6 166 157 4790 97,197,882 158 93,655,177 7 3,542,705Saptari 16 7 13 12 371 5,169,215 12 5,169,215 0Sarlahi 15 15 95 99 2607 48,185,477 99 48,003,643 1 181,834Siraha 14 8 93 92 2159 35,555,803 92 33,329,382 3 2,226,421Total 146 95 745 722 20,015 382,439,980 709 322,174,556 107 60,265,424100% 65% 100% 84% 16%Annex 7PAF in KarnaliKarnali Households (HH) Karnali Households (HH)District No. Of PO Total VDC PAF Coverage VDC CO Registration Nos CO Agreement Nos Total HH Poor HH CO Member Beneficiary HHTotal HH Poor HH CO Member BeneficiaryHH23 23 5,816 2,309 6,178 128,977,487.42Humla 5 27 27 329 329 6,951 2,885 7,860 179,096,005.41Jumla 7 30 30 474 472 15,856 5,454 16,958 394,425,975.39Kalikot 6 30 30 602 556 18,490 10,503 16,239 300,837,093.05Mugu 6 24 24 266 244 8,259 4,212 7,094 152,853,467.00Total 27 134 134 1879 1809 55,372 25,363 54,329 1,156,190,028.27100% 100% 96% 100% 98%ANNUAL PROGRESS REPORT (2010/2011) 47

DistrictTotal PAF AgreementAmount (Rs.)IG No. IG Agreement Amount (Rs.) Infra No.Infrastructure AgreementAmount (Rs.)Dolpa 128,977,487.42 208 114,401,794.00 5 14,575,693.42Humla 179,096,005.41 331 141,038,444.00 44 38,057,561.41Jumla 394,425,975.39 481 346,684,533.00 91 47,741,442.39Kalikot 300,837,093.05 556 270,852,781.20 32 29,984,311.85Mugu 152,853,467.00 275 80,867,724.00 121 71,985,743.00Total 1,156,190,028.27 1,851 953,845,276.20 293 202,344,752.07100% 82% 18%Annex 8Community Institutional DevelopmentList of CO Federations in DistrictsS.N.DistrictNo of COFederationSpecific Objectives/ActivitiesAccham 18 Five federations have been formed for Pasu Bima Programme, 2 for ICT (Information and communicationtechnologies) at Bayalpata, 2 for construction of micro hydro sub projects, 5 for school buildings and 4 forsolar school systems at various VDCs.1 Bajhang 1 Seven COs from Hemantawada and Luyata VDC have been federated to run a Seti Saipal V-SAT Center atChainpur to promote capacity building, entrepreneurs' skill and knowledge at local level.2 Bajura 13 13 federations have been formed for following activities in Bajura• 9 federations for School building construction• 2 federations for water supply project• 2 federations for Micro Hydro projectDadeldhura 16 16 Federations have been made for the following activities;• 9 federations for School building construction in 7 VDCs i.e. Jogbudha, Shirsha, Shirsha, Bhadrapur,Alital, Bhageshwor, Koteli and Manileka.• 5 Federations for Drinking Water Supply Scheme in 5 VDCs i.e. Ghankhet, Bhadrapur, Mastamandu andNvadurga.• 2 Federations for suspended bridge projects in 2 VDCs i.e. Ajaimeru and Navadurga.2 Darchula 14 11 CO federations have been formed to implement micro hydro sub project and three CO federations toimplement electric line extension schemes at various VDCs.3 Doti 10 10 Federations have been made for the following activities;• 4 federations for School building construction in 4 VDCs named Pokhari, Ganjari, Gairagaun, Basudevi.• 3 Federations for Drinking Water Supply Scheme in 3 VDCs named Bhumirajmandau, Daud and Toleni.• 2 Federations for micro hydro projects in 2 VDCs named Daud and Toleni.• 1 Federation for constructing a health post building in Ranagaun VDC.• Formed 29 COs networking in 29 VDCs for practicing their higher level organization.• Established a cooperative in Toleni VDC for running & maintaining a micro-hydro projects involving 3COs.4 Kalikot 2 Two CO federations have been formed to implement a micro hydro sub project at Phoi mahadev VDC and apico hydro sub project at Chilkhaya VDC for rural electrification.5 Kapilvastu 1 357 buffalo raising farmers of 5 VDCs namely Ganeshpur, Biddhyanagar, Bhagamanpur, Sirshihawa andRamnagar have been federated and formed Shivam Dugdha Utpadak CO for collecting milk and operatingchilling centre and cattle insurance scheme for members.6 Mugu 3 Two federated COs have been formed for constructing and operating micro hydro scheme for ruralelectrification and one for micro irrigation.7 Pyuthan 44 41 CO federations has been formed for implementation of different infrastructure sub projects like link road,drinking water, irrigation, micro hydro, school building in various VDCs.Two CO federations have been formed to operate community livestock Insurance program in Tusara andBangesal VDC.One CO federation has been formed for the establishment of Vegetable Collection Centre at Lung VDC.8 Rautahat 9 9 CO federations have been formed in 9 VDCs for livestock management and insurance policy9 Sindhuli 12 To implement infrastructure schemes like rural road, irrigation, drinking water, mechanized bridge etc.10 Siraha 9 One federated CO for operating a chilling centre at Bishnupurkalti VDC and another one to run breeding centreat Dhodhana and Bhadaiya VDCFive CO federations have been formed to construct culverts in various VDCsTwo CO federations have been formed in Mukshar VDC to construct to construct Agriculture roads11 Rukum 5 4 Water Users group and 1 school users group48 ANNUAL PROGRESS REPORT (2010/2011)

S.N.DistrictNo of COFederationSpecific Objectives/Activities12 Dailekh 9 One federation for Drinking Water Supply Project and 8 Federation for School Building Project.13 Ramechhap 9 For Micro-Hydro, Irrigation and Community Building projectsList of Cooperatives formed through CO’s initiatives in DistrictsS.N.DistrictNo ofCooperatives1 Accham 35 To manage all COs within the VDC.Specific Objectives/Activities2 Darchula 9 Six cooperatives have been established in 6 VDCs to provide saving and credit services to CO membersThree cooperatives established to provide electricity extension and distribution service by leasingagreement with NEA.3 Kapilvastu 1 A multipurpose cooperative has been established to run agro vet service and milk collection & marketingcenterTotal 19 Cooperatives has been established till date4 Mugu 1 Rara Bahuudesiya cooperative has been established with the joint efforts of 11 COs of three VDCs namelyPina, Karkiwada and Shreenagar to provide agro-vet services to its members, to establish hatchery andmake available chicks in district for its members To run dairy at district headquarter collecting milk fromits members.5 Pyuthan 2 Two cooperatives have been established at Arkha and Rajbara VDC to manage revolving fund & savingcredit fund, provide micro finance services to its members and for institutional development andsustainability of CO efforts.6 Rautahat 2 A cooperative has been formed in Bishanpurwar Manpur VDC to establish and operate milk chilling centerfor marketing milk products produced by the members.A cooperative has been established at Santapur Dostiya VDC to provide saving and credit service foragricultural and livestock management78SirahaChitwan11Three COs in Muskar VDC are in process to register Cooperative to run saving credit and provide technicalservices to its memberEight different COs in Khaireni VDC have teamed up to form a muti-purpose cooperative. 90 per cent ofthe cooperatives members are women. They are carrying cooperative farming in lease-land, marketing ofvegetable products and saving credits, among others.9 Makwanpur 1 One Cooperative ( Basamadi Agriculture Chepang Cooperative Org.) has been formed with collaborativeefforts of 3 Community Organizations at Basamadi VDC.Annex 9Status of the On-going Innovative Sub-projectsS.N. Name of the POs and its address Innovative Concept Working areas Remarks1. Multipurpose Development ManagementServices, (MDMS) Nepal, MorangBreed Improvement of Goat and Pig SeedImprovement in Vegetable Production2. Mahila Byabasayik Krishi Samuha, Morang Organic fertilizer production for CommunityLivelihood Improvement.3. Manohari Development Institute, (MDI),MakawanpurIntegrating Livelihood of Tribal People(Chepang and Tamang people) throughAgro-Forestry livelihood improvement,Small Infrastructures like rural road andplastic pond4. Focus Nepal, Dhading Social Mobilization for Local ResourceManagement and Enterprise Developmentfor Deprived Groups Chepang Community5. Made Nepal Vegetable cultivation in lease land forPoverty ReductionSisbani Badahare VDCTankisunawari and BaijanathVDCOngoingOngoingOngoing6 VDCs of Dhading The same VDCs are coveredthrough regular programmesince last year and the samePO is facilitating.5 VDCs of Chitwan District Ongoing6. NNWA, Kanchanpur Livelihood Improvement 9 VDCs and 1 Municipality Ongoing7 Nepal Water Conservation Foundation Facilitation support to social mobilization for LalitpurCompletedLalitpurropeway construction Bhattedanda8 Madan Bhandari Memorial Academy,Urlabari, MorangEducation Loan Program for VocationalTraining for Deprived EducationSelected students fromSiraha, Mahottari, Sindhuli,Rauthahat, Ramechap,Rasuwa, Sarlahi, Jhapa,Morang DistrictsOngoingANNUAL PROGRESS REPORT (2010/2011) 49

Annex10Various trainings to the members of COs by districtsS.N.Description of Training, Orientation& ExposuresNo. ofEventNo. of COsParticipateGender & Ethnicity Wise No. of ParticipantsMale Female Dalit Janajati Muslim Others TotalRemarks1 Training on Leadership and groupManagement226 1996 1698 3409 1558 689 110 2751 5078 Baitadi, Mugu, Bhajang, Rukum, Jumla, Bardiya, Parsa,Rautahat, Sindhuli, Solokhumbu2 Training on EnterpriseDevelopment/SIYB (TOPE &TOSE)77 900 370 1189 790 397 97 285 1559 Rukum, Sindhupalchwok, Parsa, Udayapur, Mahottari3 Orientation on Demand LedProposal Preparation9 202 76 126 64 127 0 11 202 Sindhupalchwok4 Training on Account Management 238 2716 2045 3869 2016 1574 137 2149 5876 Baitadi, Mugu, Bhajang, Rolpa, Bardiya, Kapilbastu,Rautahat, Sarlahi, Parsa,Bara, Siraha, Saptari, Sindhuli,Sindhupalchwok,Khotang, Solokhumbu,5 Refresher Training on Accountmanagement42 408 317 296 123 163 0 327 613 Rukum, Jumla, Terthathum6 Training on Revolving Fund &Saving-Credit Management233 942 1732 4462 1985 3277 140 1792 6194 Baitadi, Jumla, Rolpa, Humla Bardiya, Kapilbastu,Rasuwa, Bara, Rautahat, Khotang, Okhaldhunga,Terthathum, Udayapur, Siraha7 Training on Institutional Buildingand Cooperative Mgmt.53 274 198 677 350 195 13 317 875 Darchula, Doti, Rasuwa, Parsa, Rautahat, Sindhuli,Udayapur8 Training on Business Management 6 6 0 21 21 0 0 0 21 Parsa9 Training on Community BasedLivestock Insurance System16 214 186 188 70 176 0 128 374 Sindhuli, Jumla10 Training on Animal Husbandry(Buffalo, Cow, Goat, Pig)521 1873 4685 9413 3577 3012 461 7028 14098 Parsa, Bara,Sindhuli, Udayapur, Mahottari,Sindhupalchwok, Solokhumbu, Okhaldhunga,Terthathum, Doti, Dailekh,Jumla,Bhajang, Kalikot, Mugu11 Training on Vegetable Farming 16 54 105 299 70 34 0 300 404 Mugu, Dailekh, Sindhupalchwok, Sindhuli12 Training on Poultry Farming 37 31 40 27 18 0 26 71 4 Sindhuli, sindhupalchwok, Jumla13 Training on Ginger Farming 10 33 73 147 50 131 0 39 220 Terthathum, Sindhuli14 Training on System of RiceIntensification (SRI)1 8 11 12 7 16 23 Kalikot15 Training on IPM Mgmt. 4 4 0 82 42 0 0 40 82 Bhajang16 Training on Bee Keeping 1 10 12 6 4 7 0 7 18 Sindhuli17 Training on Dairy Development 1 21 18 7 4 6 0 15 25 Sindhuli18 Training on Livelihood Mgmt. 8 6 20 33 25 0 0 28 53 Mugu19 Training for Village Level AnimalHealth Workers4 4 4 Rautahat20 Training on Gothemal & CompostMal Mgmt.1 1 10 5 0 15 0 0 15 Khotang50 ANNUAL PROGRESS REPORT (2010/2011)

S.N.Description of Training, Orientation& ExposuresNo. ofEventNo. of COsParticipateGender & Ethnicity Wise No. of ParticipantsMale Female Dalit Janajati Muslim Others TotalRemarks21 Training on Dale Ghans & BhuinGhas Mgmt.2 39 34 38 17 38 0 17 72 Sindhuli22 Training on Beta -Bans Mgmt. 1 15 13 8 2 17 0 2 21 Sindhuli23 Training on Fruit Farming 2 4 25 10 23 0 0 12 35 Mugu24 Training on Carpentry & FurnitureManufacturing4 33 86 0 25 0 0 61 86 Mugu, Kalikot, Jumla25 Training on Tailoring 4 37 6 54 26 0 3 31 60 Doti, Jumla, Parsa26 Training on Candle making 2 4 1 13 8 0 0 6 14 Parsa27 Training on Panir/Cottage CheeseMaking1 5 5 Rautahat28 Training on Curd Making 1 2 4 Rautahat29 Training on Motor Bike, Bi-Cycleand Pumping Set Repairing3 3 0 2 1 0 0 3 3 Parsa, Rautahat30 Orientation on Local ResourceMobilization8 50 68 45 17 67 0 29 113 Udayapur31 Training on Aadharsila 28 75 636 46 682 Rautahat32 Training on Construction andOperation of various Infrastructures24 31 244 265 52 321 0 136 509 Parsa, Udayapur, Sindhuli33 Orientation on Health, Hygiene ,Sanitation and Social Improvement87 3137 1139 3376 1723 1395 184 1213 4515 Mugu, Parsa, Sarlahi34 Functional Literacy Class to COs 18 18 206 137 56 63 7 217 343 Sarlahi35 Exposure Visit 1 8 6 10 4 0 0 12 16 BaitadiS.N.Description of Training, Orientation& ExposuresNo. of EventNo. of COsParticipateGender & Ethnicity Wise No. of ParticipantsMale Female Dalit Janajati Muslim Others TotalRemarks1 Training on Leadership and groupManagement2379 2053 4277 2048 865 146 3271 6330 Baitadi, Mugu, Bhajang, Rukum, Jumla, Bardiya,Parsa, Rautahat, Sindhuli, Solokhumbu, Dhanusa2 Training on EnterpriseDevelopment/SIYB (TOPE &TOSE)77 900 370 1189 790 397 97 285 1559 Rukum, Sindhupalchwok, Parsa, Udayapur, Mahottari3 Orientation on Demand LedProposal Preparation9 202 76 126 64 127 0 11 202 Sindhupalchwok4 Training on Account Management 268 2923 2109 4418 2344 1637 148 2398 6527 Baitadi, Mugu, Bhajang, Rolpa, Bardiya, Kapilbastu,Rautahat, Sarlahi, Parsa,Bara, Siraha, Saptari,Sindhuli, Sindhupalchwok,Khotang, Solokhumbu,DhanusaANNUAL PROGRESS REPORT (2010/2011) 51

S.N.Description of Training, Orientation& ExposuresNo. of EventNo. of COsParticipateGender & Ethnicity Wise No. of ParticipantsMale Female Dalit Janajati Muslim Others TotalRemarks5 Refresher Training on Accountmanagement42 408 317 296 123 163 0 327 613 Rukum, Jumla, Terthathum6 Training on Revolving Fund &Saving-Credit Management257 1123 1800 4944 1927 3022 155 1640 6744 Baitadi, Jumla, Rolpa, Humla Bardiya, Kapilbastu,Rasuwa, Bara, Rautahat, Khotang, Okhaldhunga,Terthathum, Udayapur, Siraha , Dhanusa7 Training on Institutional Buildingand Cooperative Mgmt.53 274 198 677 350 195 13 317 875 Darchula, Doti, Rasuwa, Parsa, Rautahat, Sindhuli,Udayapur8 Training on Business Management 6 6 0 21 21 0 0 0 21 Parsa9 Training on Community BasedLivestock Insurance System16 214 186 188 70 176 0 128 374 Sindhuli, Jumla10 Training on Animal Husbandry(Buffalo, Cow, Goat, Pig)521 1873 4685 9413 3577 3012 461 7028 14098 Parsa, Bara,Sindhuli, Udayapur, Mahottari,Sindhupalchwok, Solokhumbu, Okhaldhunga,Terthathum, Doti, Dailekh,Jumla,Bhajang, Kalikot,Mugu11 Training on Vegetable Farming 16 54 105 299 70 34 0 300 404 Mugu, Dailekh, Sindhupalchwok, Sindhuli12 Training on Poultry Farming 37 31 40 27 18 0 26 71 4 Sindhuli, sindhupalchwok, Jumla13 Training on Ginger Farming 10 33 73 147 50 131 0 39 220 Terthathum, Sindhuli14 Training on System of RiceIntensification (SRI)1 8 11 12 7 16 23 Kalikot15 Training on IPM Mgmt. 4 4 0 82 42 0 0 40 82 Bhajang16 Training on Bee Keeping 1 10 12 6 4 7 0 7 18 Sindhuli17 Training on Dairy Development 1 21 18 7 4 6 0 15 25 Sindhuli18 Training on Livelihood Mgmt. 8 6 20 33 25 0 0 28 53 Mugu19 Training for Village Level AnimalHealth Workers4 4 4 Rautahat20 Training on Gothemal & CompostMal Mgmt.1 1 10 5 0 15 0 0 15 Khotang21 Training on Dale Ghans & BhuinGhas Mgmt.2 39 34 38 17 38 0 17 72 Sindhuli22 Training on Beta -Bans Mgmt. 1 15 13 8 2 17 0 2 21 Sindhuli23 Training on Fruit Farming 2 4 25 10 23 0 0 12 35 Mugu24 Training on Carpentry & FurnitureManufacturing4 33 86 0 25 0 0 61 86 Mugu, Kalikot, Jumla25 Training on Tailoring 4 37 6 54 26 0 3 31 60 Doti, Jumla, Parsa26 Training on Candle making 2 4 1 13 8 0 0 6 14 Parsa27 Training on Panir/Cottage CheeseMaking1 5 5 Rautahat28 Training on Curd Making 1 2 4 Rautahat52 ANNUAL PROGRESS REPORT (2010/2011)

S.N.Description of Training, Orientation& ExposuresNo. of EventNo. of COsParticipateGender & Ethnicity Wise No. of ParticipantsMale Female Dalit Janajati Muslim Others TotalRemarks29 Training on Skill and CapacityEnhancement7 56 16 152 104 12 0 52 168 Dhanusa30 Training on Motor Bike, Bi-Cycleand Pumping Set Repairing3 3 0 2 1 0 0 3 3 Parsa, Rautahat31 Orientation on Local ResourceMobilization8 50 68 45 17 67 0 29 113 Udayapur32 Training on Aadharsila 28 75 636 46 682 Rautahat33 Training on Constructionand Operation of variousInfrastructures24 31 244 265 52 321 0 136 509 Parsa, Udayapur, Sindhuli34 Orientation on Health, Hygiene ,Sanitation and Social Improvement87 3137 1139 3376 1723 1395 184 1213 4515 Mugu, Parsa, Sarlahi35 Functional Literacy Class to COs 18 18 206 137 56 63 7 217 343 Sarlahi36 Exposure Visit 1 8 6 10 4 0 0 12 16 BaitadiANNUAL PROGRESS REPORT (2010/2011) 53

Annex 11PO Capacity Development StatusS.N.Description of Training, Orientation& ExposuresNo. of EventNo. of POsParticipateGender & Ethnicity Wise No. of ParticipantsMale Female Dalit Janajati Muslim Others TotalRemarks1 Orientation on PAF Implementationprocess4 21 120 26 12 22 2 110 146 Kalikot, Siraha, Dhanusa2 Orientation on PAF EnvironmentalFrameworks1 4 20 2 6 7 0 12 22 Terthathum3 Training on Social mobilization andleadership Development8 57 197 70 36 64 4 163 267 Rukum, Bardiya, Mahottari, Khotang, Solokhumbu,Dhanusa4 ToT on Account and RevolvingFund Management18 89 403 139 68 206 7 261 542 Dolpa, Rolpa, Kapilbastu, bara, Rautahat, Sarlahi,Saptari, Sindhuli,Okhaldhunga,Khotang,Solokhumbu,Sindhupalchwok5 Training on LivelihoodImprovement Planning2 15 75 19 7 20 2 65 94 Dhanusa6 Training on Aadharsila 2 15 75 19 7 20 2 65 94 Dhanusa7 Training on Report and ProposalWriting2 15 75 19 7 20 2 65 94 Dhanusa8 Workshop on PotentialityExploration1 15 150 Dhanusa9 Orientation on PAF Revolving FundManagement Guidelines10 41 185 49 33 57 0 145 235 Doti, Kalikot, Jumla, Khotang, Terthathum,Sindhupalchwok, Humla,10 Orientation on CommunityLevel Various infrastructuresImplementation Process5 35 111 34 25 46 0 74 145 Kalikot, Rolpa, Kapilbastu, Saptari, Terthathum11 Orientation on Community BasedLivestock Insurance System1 4 21 4 0 10 0 16 26 Humla12 Orientation on ProgrammeManagement Information System(PMIS)1 4 10 1 2 3 0 5 11 Terthathum13 Training on Value Chain 1 2 23 9 3 1 0 28 32 Doti14 Training on Cooperative Mgmt. 2 15 4 24 38 7 0 19 64 Baitadi, Dolpa15 Exposure Visit of POs 1 11 24 9 4 11 0 19 33 Sindhupalchwok16 Training on Report Writing 1 5 1 4 0 4 0 1 5 Sindhupalchwok17 Orientation on Health & Sanitation 1 98 81 17 7 23 0 68 98 Sarlahi18 Coordination & Review MeetingWith DDCs and Line Agencies17 Ramechhap, Rasuwa, Parsa, Bara, Rautahat,Sindhuli, Dhanusa54 ANNUAL PROGRESS REPORT (2010/2011)

Annex 12Gross Annual Income Change of CO membersDistrictNo. of COsTotal COMembersHH level Annual Gross Income change in Rs. (Range)0-15000 15000-30000 30000-60000 >60000Average incomeIncreased (%)Achham 9 269 236 9 13 11 41.2% 87.7 3.3 4.8 4.1Bajhang 8 174 158 10 6 0 50.6% 90.8 5.7 3.4 0.0Bajura 6 190 65 60 44 21 176.1% 34.2 31.6 23.2 11.1Dadeldhura 8 221 150 50 15 6 115.5% 67.9 22.6 6.8 2.7Dailekh 8 264 173 58 25 8 113.9% 65.5 22.0 9.5 3.0Darchula 25 565 460 76 15 14 40.2% 81.4 13.5 2.7 2.5Dolpa 6 202 200 2 0 0 7.3% 99.0 1.0 0.0 0.0Doti 10 306 245 44 13 4 18.3% 80.1 14.4 4.2 1.3Humla 10 282 189 37 36 20 41.5% 67.0 13.1 12.8 7.1Jajarkot 9 285 143 109 28 5 277.2% 50.2 38.2 9.8 1.8Jumla 8 232 145 30 20 37 114.7% 62.5 12.9 8.6 15.9Kalikot 8 318 313 1 2 2 -0.1% 98.4 0.3 0.6 0.6Kapilvastu 25 709 531 80 36 62 142.7% 74.9 11.3 5.1 8.7Mahottari 13 313 179 55 48 31 51.1% 57.2 17.6 15.3 9.9Mugu 6 251 221 10 8 12 45.0% 88.0 4.0 3.2 4.8Pyuthan 16 400 247 97 45 11 98.3% 61.8 24.3 11.3 2.8Ramechhap 23 579 465 61 37 16 47.1% 80.3 10.5 6.4 2.8Rasuwa 10 284 221 36 14 13 59.5% 77.8 12.7 4.9 4.6Rautahat 15 416 144 108 104 60 125.7% 34.6 26.0 25.0 14.4Rolpa 6 225 83 59 60 23 115.1% 36.9 26.2 26.7 10.2Rukum 7 191 93 36 47 15 164.7% 48.7 18.8 24.6 7.9ANNUAL PROGRESS REPORT (2010/2011) 55

DistrictNo. of COsTotal COMembersHH level Annual Gross Income change in Rs. (Range)0-15000 15000-30000 30000-60000 >60000Average incomeIncreased (%)Sarlahi 10 296 234 42 13 7 59.1% 79.1 14.2 4.4 2.4Sindhuli 19 655 433 116 77 29 79.6% 66.1 17.7 11.8 4.4Siraha 24 541 319 112 68 42 61.8% 59.0 20.7 12.6 7.8Total 289 8,168 5,647 1,298 774 449 82.5% 69.1 15.9 9.5 5.556 ANNUAL PROGRESS REPORT (2010/2011)

Annex 13Summary Results of Revolving Fund Status 2010Districts No. of POsNo. ofVDCsNo. of COs No. of Members RF from PAFRF from othersourcesNo. of membersaccessing RFAverage LoanPeriodAverageInterest rateAveragerepayment rateLoan sizeMaximum MinimumAchham 8 23 286 9,549 103,613,693 8,369,437 7,873 2.0 7.1 74.4 100,000 200Baitadi 6 23 116 4,197 41,725,964 4,031,059 4,630 2.0 5.7 28.9 92,000 1,000Bajhang 3 18 197 4,067 43,658,284 1,756,849 3,853 2.9 9.0 92.5 133,000 500Bajura 4 27 318 9,843 127,633,257 5,075,455 8,547 2.4 4.4 61.5 100,000 900Dadeldhura 8 18 378 11,198 99,167,898 4,300,986 8,855 2.1 7.5 59.8 40,000 650Dailekh 5 25 282 10,728 134,203,907 26,098,895 9,420 1.5 5.0 87.2 84,650 1,000Darchula 10 41 781 15,412 184,589,884 5,894,544 13,554 1.9 7.4 64.6 222,500 500Dolpa 3 12 134 4,093 59,534,491 8,250,831 3,234 2.0 6.0 15.6 28,406 3,330Doti 5 21 273 8,790 109,708,980 4,228,063 9,679 2.1 6.0 41.4 150,000 2,700Humla 5 22 277 5,817 119,209,648 2,872,556 1,334 2.2 5.2 57.9 100,000 900Jajrkot 7 20 164 6,814 62,797,731 6,575,106 6,855 2.1 11.6 48.2 160,000 1,000Jumla 7 29 423 15,113 209,235,344 24,170,767 10,071 1.9 3.8 83.3 100,000 1,500Kalikot 6 24 281 7,924 86,874,798 24,311,318 6,192 2.8 12.0 80.3 32,000 2,000Mahottari 8 20 438 10,669 123,075,590 8,573,827 8,450 1.8 3.9 80.8 56,000 900Mugu 5 24 131 4,066 29,002,755 26,038 2,479 2.8 1.0 25.2 33,000 500Pyuthan 12 49 959 27,258 225,937,076 5,238,890 25,721 1.8 7.3 93.1 125,070 225Rauthat 8 44 828 22,582 335,977,312 29,579,038 17,781 1.8 7.1 88.8 100,000 1,000Rolpa 1 4 98 2,944 35,247,090 2,765,192 2,265 1.2 9.3 100.0 48,600 2,250Rukum 3 12 114 3,187 36,272,122 5,337,705 3,029 1.5 9.4 94.0 54,600 1,500Sindhuli 10 35 700 27,747 272,582,704 15,464,158 21,119 2.1 5.6 96.3 63,000 100Siraha 15 63 969 22,693 284,948,003 17,916,180 18,293 2.7 6.7 71.6 260,000 900Morang 2 3 61 2,375 23,827,681 3,971,577 2,375 1.0 6.0 81.6 60,000 2,000Makawanpur 2 18 38 1,436 10,267,958 1,368,364 1,160 1.7 9.5 84.3 29,367 500Total 143 575 8,246 232,502 2,759,092,169 216,176,836 196,769 2.0 6.8 76.0 260,000 100RemarksANNUAL PROGRESS REPORT (2010/2011) 57

Annex 14PAF Result MatrixNEPAL: Poverty Alleviation FundNepal – PAF II ProjectRESULTS FRAMEWORKAs of 16 July 16, 2011Impact: Reduced poverty through improved living conditions of poorObjective Summary Performance IndicatorsMeans of Verification/Source ofInformationProgressPAF II (100M) CumulativeProject level: OUTCOMES1. Livelihood Improved P1.1.Increased by 30% poorhouseholds with access toimproved infrastructure facilities atEnd-of-Project (EOP).P1.1 Report available from InfradivisionNo. of households: 69,374 HHsIG+INFRA: 3,575No. of households: 69,374 HHsIG+INFRA: 3,575P1.2 No. of improved communitywater points constructed orrehabilitated under the projectP1.2 Report available from InfradivisionTotal: 2139 Total: 3,603P1.3. 25% of poor householdswith minimum of 15% increasedincomes through project activitiesby EOP.P1.2.1 Follow-up baseline surveyof PAFPer centage of HHs: 66% [Based on the Beneficiary assessmentof sample households in year 2010, who have received PAFsupport at least 3 years or more. A new beneficiary assessment isunder preparation.] The Follow up survey 2010 shows: Per capitaconsumption of money reciepient CO members increased by 28%( in real term) and the money received at least six or more monthsincreased by 49%2. 2. Empowered womenand targeted groups’membersP2.1 30 % of key positions inProject Community Organizations(COs) filled by women and personsfrom the targeted householdsP2.1 Status report of CO withdisaggregated dataWomen: 65%Dalit and Janajati: 57%Total: 35,810Women: 63%Dalit and Janajati: 62%Total: 50,129P2.2. 25% of COs lead(Chairperson) by women and thetargeted HHsP2.2 CO status report withdisaggregated dataWomen: 7,011 (56%)Dalit and Janajati: 7,454 (60%)Total: 12,438Women: 9,310 (53%)Dalit and Janajati: 11,416(65%)Total: 17,514P2.3. 30% of members of Projectcommunity organization fromtargeted householdsP2.3 CO status report Dalit and Janajati: 52%Total: 310,143Dalit and Janajati: 58%Total: 470,021INTERMEDIATE OUTCOMES INDICATORSCOMPONENT 1: Infrastructure DevelopmentRemarks“Poor Households” means those families withless than one year’s supply of (staple) food and/orcategorized by PAF ‘A’, ‘B’ & ‘C’.“Non-poor HHs” means other HHs that live in thevicinity of poor HHs having access to the samefacilities and/or categorized by PAF ‘D’.“Access” means having possible use of facilities.“Improved facilities” means communityinfrastructure facilities which have been improvedby the Project.“incomes” means total household cash incomes“Targeted households (HHs)” are: Dalit andJanajati, within the Poor Households.“Key positions “ means Chairperson, Secretary andTreasurer of the Community Organizations“Project COs” means the groups formed under theProject.58 ANNUAL PROGRESS REPORT (2010/2011)

Objective Summary Performance IndicatorsC.1 Small scale village andcommunity infrastructureC.1.1 No. of projects completed (a)with target community participation,and (b) according to qualitystandards, as verified by Technicalstaff of Partners Organizationsand PAF’s Infra. Division and TAC(Technical Appraisal Committee).C.1.2 All completed infrastructurewith O&M measures satisfactorilyoperating at least one year aftersub-project completion.COMPONENT 2: Income Generating Activities (IGA)C.2 Income generationprojectsC.2.1 30% of each IGA communityorganization belonging to targetedHHs.C.2.2 Increased 15% average netincome generated from IGA, bylocality.COMPONENT 3: InnovationsC.3 Innovations Window C.3.1 100% of Innovation Grantsawarded according to the agreedcriteriaC.3.2 60% of project-fundedinnovations completed minimumof the first year of their approvedimplementation program andsubmitted their detailed progressreport to PAF Management by EOP.COMPONENT 4: Capacity BuildingC.4.1 Capacity building forCommunity OrganizationsC.4.1 At least 60% of CommunityOrganizations participated inorientation program is successfullyimplementing approved subprojects.Means of Verification/Source ofInformationProgressPAF II (100M) CumulativeC1.1.1 Report of Infra divisionand sub projects report of MIS1. No. of INFRA subprojectsverified and approved: 1,7542. No. of INFR subprojectscompleted: 1,0843. No. of target HHs benefited(INFRA): 69,454 (Dalit: 15,241;Janajati: 18,259)IG + Infra: HH: 3,575/Dalit: 901/Janajati: 561)1. No. of INFRA subprojectsverified and approved: 3,0392. No. of INFR subprojectscompleted: 2,3313. No. of target HHs benefited(INFRA): 100,351 (Dalit:22,991; Janajati: 25,141)IG + Infra: HH: 32,092/Dalit:10,960/Janajati: 10,713)C.1.2 Status report on O&Mstudy of InfrastructureNo. of Infra. Sub projects operatingO&M measures:200No. of Infra. Sub projectsoperating O&M measures:1450C2.1.1 Compiled district reportand MISTargeted HHs in IGA communityorganization: 52% (Total: 302,503)Targeted HHs in IGA communityorganization: 61.8% (Total:436,097)C2.2 Baseline and follow upsurveys and social assessmntof COsAverage gross annual income increased 82.5% in real term. [Basedon the Beneficiary assessment of sample households in year 2010,who have received PAF support at least 3 years or more. A newbeneficiary assessment is under preparation.]C3.1 Assessment report ofinnovative sub project awarded1. No. of Innovative grantsawarded: comprisinga.Nepal Development Marketplace(NDM): 0b. Other: 2531. No. of Innovative grantsawarded: comprisinga.Nepal DevelopmentMarketplace (NDM): 37b. Other: 534C3.2 Progress reports 1. No. of Innovative subprojectscompleted (Progress reportsavailable on standard template):NDM: 0Other: 80% (out of 253)1. No. of Innovative subprojectscompleted (Progress reportsavailable on standard template):NDM: 67% (out of 37)Other: 86% (out of 534)C.4 Training reports Per centage of COs successfullyImplementing approvedSubprojects: 88.5% ( out of12,370)Per centage of COssuccessfully implementingapproved Sub projects: 92.5%(out of 17,892)Remarks“Quality standards” means use of materials andwork as mentioned in design & estimate of the subprojects. It will ensure during final installment ofprojects.“Satisfactorily” means operating well, being wellmaintained, O&M funds available, etc.Criteria for Project-funded Innovation include:those that benefit the poor and targeted population,as defined aboveare cost-effectiveare replicablehave a detailed implementation plan for at least 2years“Successful implementation” means over half ofthe group members are involved in the sub-project,have agreed operating procedures, and an agreedimplementation plan, including processes andsharing of cost and revenue and also fund isgranted by PAF.ANNUAL PROGRESS REPORT (2010/2011) 59

Objective Summary Performance IndicatorsC.4.2 Capacity building forLocal BodiesC.4.2 50% of Local Bodies (LBs)trained and involved in monitoringPAF activities in their localitiesC.4.3 Capacity building forIGA GroupsC.4.3 60% of trained IGAcommunity organization memberssuccessfully operating IGAC.4.4 Community Groupstrained to access fundsC.4.4 50% of trained IGAcommunity organization memberssuccessfully obtained and managedfinancing for their businessactivities.COMPONENT 5: PAF managed effectively and efficientlyC.5 PAF is well-managed atnational & district levelsC.5 1 # of project managedsmoothly, with timely response atPO and CO level.C.5.2 Project management receivesPO Progress and monitoring reportsand Audit reports according toProject standards of timeliness from100% POs.C.5.3 100% of complaints receivedby PAF recorded, addressedsatisfactorily and the actionsdocumented through complianthandling mechanism.Means of Verification/Source ofInformationProgressPAF II (100M) CumulativeC4.2 Training reports and reviewworkshop report of LBs1. No. of monitoring visits by thestaff of LBs: 2521. No. of monitoring visits bythe staff of LBs: 447C.4.3 Training reports andfollow up survey as well as casestudies.1. No. of IG sp: 9,3562. No. of IGA members trained:252605IG + INFRA: 4,5111. No. of IG sp: 14,6692. No. of IGA members trained:383,929IG + INFRA: 26,4653. % of trained IGA members successfully operating IGA: 85.4%(based on RF status assessment)C.4.4 Status reports of revolvingfund of COs% of IGA CO members obtaining and managing the funds for intendedpurpose: 85.4% [Based on the assessment carried out on RF accessby the CO members for their business activities during 2010. Thenew assessment of 2011 is in progress ]C.5.1 Project completion reports PO: 898CO: 9,166PO: 1,144CO: 14,802C.5.2 Project completion reportsof POs and MIS.PO progress reports: 898 CO levelSocial Audit reports: 5,699PO progress reports: 1144CO level Social Audit reports:5,699C.5.3 Reports on complianthandling mechanism1. % of Complaints received and recorded and addressed: 91.6% (Total complaints received: 36)Remarks• ‘Local bodies’ means VDCs, DDCs andMunicipalities• “Trained” means participated in orientationand other monitoring training.“Successfully operating” means that the enterprisesare showing positive and increasing net income• “Successfully managed” means complyingwith the conditions of the financing,including use and management of funds forthe intended purposes, diligence in timelyservicing of debt.• ‘Funds’ means PAF revolving fund or otherfunds.• “Project Managed” means status of proposalreceived, agreement done, fund transfer andcompletion of sub/projects.• “On time” means 7 and 15 days after monthscompleted in the case of 20 accessible and20 remote districts respectively.60 ANNUAL PROGRESS REPORT (2010/2011)

Annex 15Year wise Target vs. AchievementsPhysical ProgressFiscal YearTarget in Nos. Achievement in Nos. % of achievementFY 2060/61 - -FY 2061/62 - 541FY 2062/63 1,597 1166 73%FY 2063/64 2,750 3483 126%FY 2064/65 3,776 3117 83%FY 2065/66 4,048 3343 83%FY 2066/67 3,923 3882 99%FY 2067/68 2,193 3148 144%Total 18,287 541 102%Financial ProgressFiscal YearBudget (NRs) Expenditure (NRs) %FY 2060/61 10,000,000.00 5,781,379.00 57.81FY 2061/62 268,000,000.00 247,322,606.00 92.28FY 2062/63 507,925,000.00 493,505,927.00 97.16FY 2063/64 1,254,070,000.00 1,210,296,385.00 96.51FY 2064/65 1,970,732,000.00 1,875,485,349.00 95.17FY 2065/66 2,978,865,000.00 1,647,207,175.00 55.30FY 2066/67 2,723,717,000.00 2,481,049,874.47 91.09FY 2067/68 3,039,166,000.00 2,601,283,022.25 85.59Total 12,752,475,000.00 10,561,931,717.72 82.82Annex 16Details of expenditure up to July 16, 2011 (Cumulative PAF-I and PAF-II)Details 40M Expenditure 100M Expenditure Total ExpenditureCommunity Organization (IG) 1,381,890,497.49 4,471,353,214.74 5,853,243,712.23Community Organization (INFRA) 391,685,432.51 1,229,519,625.48 1,621,205,057.99Community Organization (INNOVATIVE) 654,004,180.22 107,814,513.00 761,818,693.22Total Community Organization (I) 2,427,580,110.22 5,808,687,353.22 8,236,267,463.44Partner Organization (II) 373,442,911.49 1,331,451,460.41 1,704,894,371.90Sub Total (A=I+II) 2,801,023,021.71 7,140,138,813.63 9,941,161,835.34Monitoring, Training/Workshop (B) 108,181,431.90 108,785,984.77 216,967,416.67PAF Capital Cost (C) 34,438,454.82 23,438,674.08 57,877,128.90PAF Recurrent Cost (D) 120,946,304.52 224,979,032.04 345,925,336.56Total (A+B+C+D) 3,064,589,212.95 7,497,342,504.52 10,561,931,717.47Note:(i) Including PPF Expenditure and KA-1-6 (Beruju) Expenses Amount(ii) Project PAF-I is closedANNUAL PROGRESS REPORT (2010/2011) 61

Annex 17 (1)Program Funding Status of FY-2067/68 (2010/11 only)TargetProgressDescriptions Yearly Budget Yearly Expenditure %Block Grant to CosIncome Generation Sub Projects 1,498,802,000.00 1,526,897,895.45 101.87Infrastructure Sub Projects 668,271,000.00 470,910,094.15 70.47Innovative Sub-Projects 88,343,000.00 11,400,881.00 12.91Total Sub-Projects Block Grants (A) 2,255,416,000.00 2,009,208,870.60 89.08Partner Organization 529,048,000.00 456,990,252.13 86.38Goods & Equipment, Vehicle And Furniture 14,769,000.00 369,821.20 2.50Consultancy, Training, Workshop, Seminar 113,764,000.00 39,606,480.75 34.81Incremental Operating Expenses 126,169,000.00 95,107,597.57 75.38Sub Total (B) 783,750,000.00 592,074,151.65 75.54Grand Total (A+B) 3,039,166,000.00 2,601,283,022.25 85.5962 ANNUAL PROGRESS REPORT (2010/2011)

Annex 17 (2)District wise Target Vs Achievement in FY-2067/68 (2010/11 only)DistrictTarget Physical Achievement Achievement in % BeneficiariesIG INFRA Amount IG INFRA Amount IG INFRA Amount Co members TotalInitial 6 DistrictsDarchula 7 10 149,175,130.00 7 20 136413196.8 100% 200% 91% - 294Kapilbastu 28 19 73,173,881.00 60 22 66731610.87 214% 116% 91% 1,875 1,839Mugu 45 4 47,817,321.00 51 19 36262929.8 113% 475% 76% 299 1,308Pyuthan 0 3 73,176,944.00 129 11 104715115.8 367% 143% 465 4,320Ramechhap 21 5 98,163,839.00 63 13 104468819.6 300% 260% 106% 841 1,427Siraha 38 9 113,706,731.00 35 74908444.23 92% 0% 66% 756 756Sub Total 139 50 555,213,846.00 345 85 523,500,117 248% 170% 94% 4,236 9,94419 Additional DistrictsAchham 44 20 91,104,746.00 130 3 94575856.4 295% 15% 104% 3,456 4,524Baitadi 9 8 60,870,320.00 90 10 79077301.2 1000% 125% 130% 1,935 2,494Bajhang 28 11 57,861,377.00 63 18 59497889.58 225% 164% 103% 1,859 1,483Bajura 10 4 44,666,970.00 6 5 36877853.41 60% 125% 83% 138 244Dadeldhura 4 4 55,652,572.00 2 13 53448505 50% 325% 96% 277Dailekh 34 9 51,411,664.00 38 4 45589366.57 112% 44% 89% 1,173 1,267Dolpa 52 3 31,746,126.00 43 2 33522361.93 83% 67% 106% 1,236 1,297Doti 40 5 42,616,782.00 47 3 39126805.61 118% 60% 92% 1,267 1,406Humla 0 0 25,023,445.00 14 20324553.04 81% 178Jajarkot 2 4 41,126,799.00 2 3 51733648.62 100% 75% 126% 51 229Jumla 7 6 116,063,381.00 11 5 104987282.5 157% 83% 90% 336 419Kalikot 0 18 92,279,359.00 49 15 72892250.09 83% 79% 1,370 2,152Mahottari 22 5 69,474,916.00 42 5 56236030 191% 100% 81% 862 1,020Rasuwa 22 5 10,021,657.00 7 24322713.29 32% 0% 243% 221 206Rautahat 0 29 174,357,393.00 395 26 219526665.9 90% 126% 9,576 12,785Rolpa 46 0 26,003,623.00 77 4 20347084 167% 78% 2,166 1,422Rukum 27 19 91,457,389.00 33 10 58910110.88 122% 53% 64% 942 1,354Sarlahi 0 31 51,328,274.00 112 35 51090133.4 113% 100% 957Sindhuli 22 11 61,678,596.00 18 13 59210462.74 82% 118% 96% 462 89619 Dist. Tot. 369 192 1,194,745,389.00 1,165 188 1,181,296,874 316% 98% 99% 27,050 34,61025 Dist. Total 508 242 1,749,959,235.00 1,510 273 1,704,796,991.26 297% 113% 97% 31,286 44,554ANNUAL PROGRESS REPORT (2010/2011) 63

Annex 18Poverty Alleviation Fund Project – II Progress StatusHeading Number Amount (NRs.)Community Organizations (CO) Registered with PAF 12,370CO Federation Registration 517Agreement 11924 6,740,003,674PAF Investment in CO Income Generating (IG) Activities 11269 5,238,088,609Community Infrastructure 1754 1,501,915,065Partner Organizations (PO) 370Districts Covered Total 57Regular PAF Districts 40Phase I (6 Districts) 6Phase II (19 Districts) 19Phase III (15 Districts) 15Innovative Programme 10NDM-World Bank Innovative Prog. 24VDC Covered POs Working 1646COs Programme Activity 1538Per centageCO Member House Holds Total 344,512(HH)Poverty Hardcore Poor (Ka) 220,926 64.13%RankingMedium Poor (Kha) 91,315 26.51%Poor (Ga) 31,695 9.20%Marginal Non-Poor (Gha) 576 0.17%Gender Male 80,150 23.26%Female 264,362 76.74%Ethnicity Dalit 82,987 24.09%Janajati 97,343 28.26%Others 164,182 47.65%Total Beneficiary HH Total 358316Ethnicity Dalit 89,505Janajati 93,467Others 175,344ANNUAL PROGRESS REPORT (2010/2011) 65

Annex19PAF II CO registration, agreement for sub-project and disbursement status (cumulative)AgreementDistrictCO Registered w/ PAF (No.)With CO No. Amount (NRs.)Initial 6 DistrictsDarchula 442 571 739 409,226,460Kapilbastu 428 422 453 271,197,524Mugu 119 137 195 86,919,259Pyuthan 878 891 997 513,686,962Ramechhap 799 824 882 375,377,411Siraha 818 813 827 314,690,029Sub Total 3,484 3,658 4,093 1,971,097,64519 Additional DistrictsAchham 354 393 423 302,589,200Baitadi 500 417 444 225,825,513Bajhang 333 252 320 192,966,725Bajura 286 280 315 194,308,809Dadeldhura 244 257 286 175,599,110Dailekh 281 287 297 175,403,701Dolpa 103 105 108 79,238,973Doti 294 285 298 146,641,871Humla 118 128 147 85,965,435Jajarkot 253 192 205 155,450,857Jumla 287 299 311 261,349,584Kalikot 498 466 484 253,256,554Mahottari 305 308 312 156,569,981Rasuwa 108 101 101 60,207,592Rautahat 1,191 1105 1144 702,191,306Rolpa 155 156 159 60,367,061Rukum 254 179 192 110,985,778Sarlahi 726 848 873 414,721,098Sindhuli 507 551 635 352,170,27119 Dist. Tot. 6,797 6,609 7,054 4,105,809,41925 Dist. Total 10,281 10,267 11,147 6,076,907,06415 B1 DistrictBara 120 106 106 36,129,445Bardiya 102 99 104 29,897,633Dhading 101 94 104 35,649,547Dhanusha 130 131 131 85,443,827Khotang 156 57 58 28,218,602Okhaldhunga 87 87 87 17,633,125Panchthar 210 54 54 15,426,859Parsa 151 141 146 73,048,478Salyan 137 129 132 32,090,489Saptari 98 83 83 36,228,262Sindhupalch 186 125 125 37,293,25566 ANNUAL PROGRESS REPORT (2010/2011)

AgreementDistrictCO Registered w/ PAF (No.)With CO No. Amount (NRs.)Solukhumbu 60 55 55 16,810,992Taplejung 210 167 171 74,128,678Terhathum 59 45 49 12,639,626Udayapur 46 42 43 21,196,60115 B1 Dist. Total 1853 1415 1448 55183541940 Dist. Total 12,134 11,682 12,595 6,628,742,483Innovative Programme DistrictsChitawan 30 45 53 12,241,422Dhading 51 64 68 29,911,566Kanchanpur 65 56 56 18,491,700Lalitpur 2 2 2 6,784,220Makwanpur 70 59 63 27,754,427Morang 18 16 16 16,077,855Innovative Tot. 236 242 258 111261190Total = 12,370 11,924 12,853 6,740,003,673Annex 20PAF II Expenditure (in NRs.)Details As of FY-66/67 FY-2067/68 Total ExpenditureCommunity Organization (IG) 2,944,455,319.29 1,526,897,895.45 4,471,353,214.74Community Organization (INFRA) 758,609,531.33 470,910,094.15 1,229,519,625.48Community Organization (INNOVATIVE) 96,413,632.00 11,400,881.00 107,814,513.00Total Community Organization (I) 3,799,478,482.62 2,009,208,870.60 5,808,687,353.22Partner Organization (II) 874,461,208.28 456,990,252.13 1,331,451,460.41Sub Total (A=I+II) 4,673,939,690.90 2,466,199,122.73 7,140,138,813.63Monitoring, Training/Workshop (B) 69,179,504.02 39,606,480.75 108,785,984.77PAF Capital Cost (C) 23,068,852.88 369,821.20 23,438,674.08PAF Recurrent Cost (D) 129,871,434.47 95,107,597.57 224,979,032.04Total (A+B+C+D) 4,896,059,482.27 2,601,283,022.25 7,497,342,504.52Note: Including PPF Expenditure and KA-1-6 (Beruju) Expenses AmountANNUAL PROGRESS REPORT (2010/2011) 67

Annex 21Summary Results of Follow-on Impact Survey 2010(Done by TU and the World Bank)1. PAF’s monitoring data is developed on 5 different databaseswhich support the process of working with partner and communityorganizations and monitoring the sub-project activities (figure 1). Thesedatabases provide a rich source of information on PAF activities andhave been increasingly analyzed to improve planning and addressweaknesses in the project implementation process and to identify areasof strength that can be scaled up.2. In addition to the MIS, an independent impact evaluation has also beenintegrated into the design of the program. The IE has been a long-termpartnership between the PAF Secretariat, Tribhuvan University (TU) (thatcarried out the surveys) and the WB task team (that provided TechnicalAssistance- TA during the design phase and carried out the analysis).Data for the PAF Impact Evaluation (IE) come from two rounds of surveysPartnerOrganizationSelectionPartnerOrganizationSelectionof 3,000 households from 200 villages. The baseline was carried out inlate 2007 and the follow-up of the same households in early 2010. Thesurvey questionnaire is adapted from the Nepal Living Standards Survey(NLSS) and includes detailed information on consumption and income,socio-economic and demographic issues, including education, healthand nutrition, housing conditions and physical assets, migration andremittances, employment, social environment, community relationship,voice and participation. For comparability with the national householdsurvey based welfare measures, PAF survey includes a very similarconsumption module and follows the same consumption aggregationmethod. The IE analysis uses panel households (2774 out of 3,000),half of which are PAF beneficiaries (treatment) the rest non-beneficiaries(control) households. Outcome indicators on PAF beneficiary householdsand carefully matched non-beneficiary households are compared for theperiods before and after the initiation of the PAF program. This methodis known as difference-in-difference combined with propensity scorematching.Consumption EffectsCommunityorganizationselection andregistrationCommunityorganizationsdatabase-BeneficiaryAssessmentCommunity:SelectionpriorityactivitesCommunityAgreementsdatabaseSubprojectProjectsdatabaseCommunity:Implementationof activitesRevolvingFunddatabase3. The estimated net program impact on per capita consumption (inreal terms adjusted for price inflation) growth is 13% for PAF IncomeGenerating (IG) participant households, 28% for PAF money recipienthouseholds and 49% for those beneficiaries who have received themoney for at least six months. It is not a surprise that these impactestimates are larger for money recipients but it is interesting to notethat this effect remains strong for those who have had the funds forsome time and have invested them in IGAs. The magnitudes of theseestimates are impressive across all three categories of treatments bothin terms of per cent change and absolute change. For example, moneyrecipients for more than 6 months recorded on net a 49 per cent growthand Rupees 6,900 (approximately US$100) absolute change in real percapita consumption in just over two years of time. These results are allstatistically significant and robust across different matching algorithms.The higher levels of welfare impact over time may suggest that IGArevenue is contributing to the welfare of these households, a result thatwould be desirable from a policy and sustainability point of view.4. The net impact in the growth in per capita consumption is even higherfor Dalit and Janajatis, implying the program’s ability to distribute growthtowards targeted groups. The net effect for money recipients among thiscaste/ethnic group was an increase in real per capita consumption of 34per cent, compared to 28 per cent for the overall sample of the sametreatment category.Food Security Effects5. Chronic food insecurity is a particularly important concern in Nepaland substantial amount is spent per year on public works programmesaimed at alleviating hardship for food insecure households. Sustainedfood price inflation remains a concern and an estimated 3.7 millionpeople are currently food insecure. The impact of high prices and foodinsecurity is most severe on economically, geographically and sociallymarginalized communities. Since Nepal‟s poorest households spendmore than 75% of their income on food, high prices will continue toaffect poverty alleviation efforts. The analysis estimates that the netPAF impact on incidence of food insecurity (as defined as self-reportedfood sufficiency for six months or less) is 10 per centage points declinewhen the treatment group is PAF money recipients, and 14 per centagepoints decrease among money recipients at least 6 months prior tosecond-round survey. These effects are stronger for Dalit and Janajatihouseholds. However, there is no impact for PAF IG households (thebase treatment category), possibly implying that the self-reported foodsufficiency indicator (measure of perceived change in household’s abilityto increase their food consumption) is not affected by PAF participationalone when the household is yet to receive funds and start an IG activity.Once again, these results are quite robust across different matchingalternatives.School Enrolment Effects6. Due to PAF, school enrolment rate among 6-15 year old childrenincreased by a net 7 per centage points for PAF IG households, by anet 9 per centage points for PAF money recipient households , and anet 12 per centage points for PAF money recipients for more than sixmonths. These are all notable and statistically significant impacts. Whilechild education is not a direct outcome associated with PAF intervention,one can think of at least two ways by which a treated household wouldchange its behavior in relation to this outcome. First, PAF householdsare part of the larger PAF community organization (CO) are and likelyto benefit from social-networking and mobilization. Second, actualand perceived positive change in income (PAF funds) will likely reducepotential constraints to sending a child to school.68 ANNUAL PROGRESS REPORT (2010/2011)

Child Underweight Effects7. For child malnutrition, measured in terms of underweight, the impactsof PAF are as not strong as they are for other outcome indicators.Nevertheless, incidence of underweight among children under 5 years ofage is estimated to decrease by 5 to 10 per centage points. The resultsare however not statistically significant and also do not hold acrossdifferent matching techniques and across multiple treatment groups. Wetake this as a sign of overall trend in the right direction and could seesignificant effects in the next couple of years.Other Effects8. There are, as yet, no significant PAF impact evident on indicatorsassociated with community/social capital (trust, respect, relationshipsbetween different ethnic groups, community disputes, etc.), althoughthe overall trend for both groups is positive. Similarly, while there isno significant impact of PAF program on the use of health services/facilities, the effects are qualitatively positive on the use of agriculturalcenters, community forest services, and farmers’ groups.Targeting9. The targeting results are consistent with PAF’s objective of targeting thepoorest households and support monitoring data results as well. Of themany categories that PAF uses to classify the disadvantaged, one is thelevel of food sufficiency. The other is whether the household is from Dalitor Janajati caste/ethnicity category. For example, the probability of beingselected as PAF money recipient goes up by 25 per centage points if youare from a Dalit/Janajati household. Similarly, one per cent decrease inper capita consumption at the baseline is associated with 15 per centagepoints increase in the probability of being selected for PAF.706050403020100-10-20Reduction in Food insufficency6.860.4ControlTreatment17.23 months or Less 6 months or Less10. The impact results are also consistent with PAF’s targeting thepoorest households. Among other categories that PAF uses to classifythe poor, one is the level of food sufficiency. Households are separatedinto four different groups under this category: hardcore poor (those withless than 3 months of food security either via own production or other-9.1dependable sources of income), medium poor (those with 3 to 6 monthsof food security), poor (those with 6 to 11 months of food security), andnon-poor (those with 12 or more months of food security). The resultsshow that the per centage of households with food insufficiency of 3months or less dropped from 13.8% in 2007 to about 5.5% in 2010, areduction of more than 60%, for the PAF beneficiary households (definedas those engaged in PAF supported income generating activities). Thereduction was only about 6.8% for non-beneficiaries. Similarly, theper centage of households with food insufficiency of 6 months or lessdecreased from 40% in 2007 to about 33% in 2010, a reduction of about17.5%, for PAF beneficiary households. There was no reduction for nonbeneficiariesduring this period and in fact, there was an increase in foodinsufficiency of these households by about 9%.Access and Use of Services11. With the second phase of PAF II still ongoing, the number of poorhouseholds with access to improved infrastructure facilities has reachedmore than 49,000. The impact evaluation results show that the schoolenrollment rate for children from households engaged in PAF supportedincome generating activities increased by more than 7 per centagepoints. The enrollment rate was even higher for children from Dalit orJanajati households. While there was no obvious difference between thePAF beneficiaries and the non-beneficiaries in the use of health services/facilities, the beneficiary households were found to be making moreuse of agricultural centers, community forest services, and farmers’groups. The increased use of such services supports the monitoringdata findings that PAF beneficiaries are investing in agriculture-relatedopportunities and reaching out to service providers to improve anddevelop these investments.Conclusions12. The evaluation results indicate that there is a positive and significantimpact on household level welfare due to the PAF program relative toany other poverty reducing efforts that may be on-going at the sametime. The results further indicate that the program is an effective tool fortargeting the population considered most vulnerable in terms of casteand ethnicity as well as most food insecure. There are many processrelated questions that this impact evaluation does not yet answer. Forexample, a review of the monitoring data suggests that women groupsare far more diversified in livelihood activities that mixed groups. Impactson women only groups would need to be analyzed further as should thepreviously related positive indication of nutritional impact on childrenunder 5 years of age.13. The household-level panel data provide an opportunity for furtheranalysis over time which may help us understand changes in povertydynamics and for further counterfactual analysis of the outcomesreported in this paper. As such, a continuation of the survey methodologyand of the impact evaluation analysis would be an important tool forpolicy makers and for the implementation of the poverty alleviation fundat the national level.(Ref. Impact Evaluation of the Nepal Poverty Alleviation Fund, WB/TU)ANNUAL PROGRESS REPORT (2010/2011) 69

Annex 22Un-audited Financial Statement for FY 2010-1170 ANNUAL PROGRESS REPORT (2010/2011)

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Annex 23Un-audited Project Account for FY 2010-1172 ANNUAL PROGRESS REPORT (2010/2011)

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Annex 24Current Staff List (as of January 2012)S.N. Staff Name Designation1 Raj Babu Shrestha Executive Director2 Manoj Chipalu Financial Analyst, Chief of Finance & Admin. Division3 Murari Lal Chaudhary Community Infrastructure Expert, Chief of Community Infrastructure Division4 Ram Prasad Dhakal Social Inclusion Expert, Chief of Program Coordination Division5 Kanchan Tamang Lama R&D Officer and Acting Chief of M&E and Research Division6 Anita Koirala Micro Enterprise Development Officer and Acting Chief of HRD Division7 Avishesh Neupane Environment Officer8 Dilip Raj Joshi Finance Officer9 Prabin Ghimire Finance Officer10 Shankar Prasad Yadav Civil Engineer11 Shree Ram Subedi Communication Officer12 Sunita Shakya MIS Officer13 Achut Man Singh Pradhan Portfolio Manager14 Ajay Kumar Patel Portfolio Manager15 Akhilesh Chandra Das Portfolio Manager16 Amar Kumar Pakhrin Portfolio Manager17 Arun Pandey Portfolio Manager18 Bal Krishna Bishwakarma Portfolio Manager19 Bhupananda BK Portfolio Manager20 Bikam Karki Portfolio Manager21 Deepa Regmi Portfolio Manager22 Dhana Raj Shah Portfolio Manager23 Durga Bahadur Gandhari Portfolio Manager24 Hare Ram Wagle Portfolio Manager25 Ishwari Lal Bishwakarma Portfolio Manager26 Jaya Raj Pant Portfolio Manager27 Jharendra Bahadur Singh Portfolio Manager28 Kamal Bahadur Thing Portfolio Manager29 Krishna Bahadur Sherala Portfolio Manager30 Lal Bahadur Siwa Portfolio Manager31 Lokendra Singh Badal Portfolio Manager32 Mahesh Kumar Shahi Portfolio Manager33 Malati Chaudhary Portfolio Manager34 Manoj Kumar Gupta Portfolio Manager35 Meena Nakarmi Portfolio Manager36 Nirak Bahadur Sunar Portfolio Manager37 Nirmal Pant Portfolio Manager38 Om Prasad Poudel Portfolio Manager39 Padam Singh Thagunna Portfolio Manager40 Pradip Paudel Portfolio Manager41 Pramod Joshi Portfolio Manager42 Rabindra Suwal Portfolio Manager43 Ram Bahadur Bhusal Portfolio ManagerANNUAL PROGRESS REPORT (2010/2011) 91

S.N. Staff Name Designation44 Ramesh Lama Portfolio Manager45 Sajada Khatun Portfolio Manager46 Sandeep Nath Upreti Portfolio Manager47 Sanjay Kumar Jha Portfolio Manager48 Tara Prasad Joshi Portfolio Manager49 Anita Shrestha Office Assistant50 Dipesh Ratna Shakya Office Assistant51 Jaya Hada Office Assistant52 Lalita Kayastha (Khanal) Finance Assistant53 Parjun Sapkota Office Assistant54 Rita Bayalkoti Office Assistant55 Russell Man Singh Pradhan MIS Assistant56 Suman Kumar Pandit Finance Assistant57 Prem Lama Messenger58 Rajendra Dhakal Messenger59 Subash Rai Messenger60 Datta Maharjan Driver61 Devi Kumar Ale Magar Driver62 Krishna Bahadur Khatri Driver63 Shiva Nagarkoti DriverEx-staffs who worked during the reporting year of 2010-11S.N. Staff Name Designation1 Krishna Babu Joshi Chief of Monitoring Evaluation and Research Division2 Mahesh Pokhrel Administration Officer3 Naveen Prashad Procurement Officer4 Prabin Manandhar Portfolio Manager5 Dinesh Gautam Office Assistant6 Kapila Prajapati Receptionist7 Satish Chaudhary Finance Assistant8 Smriti Sharma Receptionist92 ANNUAL PROGRESS REPORT (2010/2011)

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