State Support Programme (SSP) Nepal

Switzerland contributes to peace and stability in Nepal by supporting the country’s successful transition to federalism which is a pre-condition for enhanced economic development and prosperity. States are a critical catalyst for identity, conflict resolution and regional development in Nepal’s federal system. The programme therefore supports the State’s systems and capacities for inter-governmental cooperation, implementation and responsiveness towards citizens’ demands.

Country/region Topic Period Budget
Conflict & fragility

Conflict prevention
Public sector policy
01.10.2018 - 31.01.2024
CHF  9’900’000
Background The implementation of the federal Constitution (2015) is not solely a technical but inherently a political negotiation process. It seeks to address the root causes of past conflicts related to poverty, social marginalization, discrimination and poor service delivery. The multi-level system of governance as envisaged by the Constitution of Nepal relies on the principles of cooperation, coordination and co-existence among the different tiers of government. Due to the ongoing and still unclear sequencing of federal implementation processes, contributing to the effective inter-governmental relations between vertical and horizontal tiers of government is essential for the consolidation and functioning of federalism. Building of inclusive institutions, governance systems and processes, often being built from zero, will be the major task and challenge for Nepal in the years to come. The risk of conflicts will remain substantial. It is therefore both a historic opportunity and obligation for development partners to support federalization in Nepal including with a strong focus on the States.
Objectives Support the Government of Nepal to implement federalism through well-functioning, inclusive institutions and systems. 
Target groups

While State 1’s 4.5 million people are the primary beneficiaries of the proposed project at the operational level, State 1’s executive, legislative and line ministry institutions will be the direct beneficiaries.

LGs will also benefit through strategic inter-governmental collaborations and adoption of natural resource sharing mechanism.

Medium-term outcomes

OUTCOME 1: State 1 government delivers equitable development and public services

OUTCOME 2: State 1 and associated LGs cooperate and coordinate with each other on selected development priorities.

OUTCOME 3: State Government and elected representatives are accountable to their constituencies.


Expected results:  

Output 1.1: State 1 strengthens its capacity to perform legislative and policy making functions.

Output 1.2: State Government establishes administrative, organizational and human resource (HR) management system.

Output 1.3: State Government establishes public financial management system.

Output 1.4: State Government strengthens planning and implementation processes.

Output 2.1: State and Local Governments form strategic partnerships on selected priorities.

Output 2.2: State and Local Governments share natural resources equitably.

Output 3.1: State Assembly enhances its legislative performance and transparency.

Output 3.2: State government implements GESI sensitive transparency and civic engagement policies.

Results from previous phases:  

17 legislations enacted so far in 2018

6% development budget absorption rate by the fifth month of the first fiscal year

No mechanisms for Transparency, Accountability, Participation) have been institutionalized yet by State 1 government

Public Accounts Committee not yet functional

State Coordination Council convened once in 2018

A periodic State Master Plan not yet prepared

Directorate/federal office responsible SDC
Credit area Development cooperation
Project partners Contract partner
Private sector
Foreign state institution
  • National State Institute North
  • Foreign private sector South/East

Other partners
Government of Nepal represented by the State 1 Government and an Implementing Partner selected through a public selective tendering procedure (2 Steps).
Coordination with other projects and actors SSP will be managed in broad alignment with the Provincial and Local Governance Support Programme (PLGSP), and it will facilitate coordination of SDC’s sectoral programmes in State 1. SSP will also support State 1 to coordinate other development partners that have interventions at State level.
Budget Current phase Swiss budget CHF    9’900’000 Swiss disbursement to date CHF    3’132’344 Budget of the organisation CHF    11’700’000
Project phases Phase 99 01.10.2018 - 31.07.2030   (Current phase) Phase 1 01.10.2018 - 31.01.2024   (Current phase)