KATHMANDU, JANUARY 15The Ministry of Federal Affairs and General Administration has informed the local levels that they could spend the complementary grants provided by the federal government on five sectors only.

They include economic sector, infrastructure, agricultural land reform, forestry, social sector, and good governance. 'Local levels have failed to protect arable land' Local levels told to conduct self-assessment by January 21 In a notice published on its website on Friday, the MoFA- GA said the local levels were required to spend the complementary grants for such projects or programmes as per the 'Procedure for Complementary Grants'. Each of the five sectors has various sub-sectors.

The economic sector comprises sub-sectors like tourism infrastructure construction projects/programmes.

Agricultural land reform and forestry sector includes projects/programmes related to agricultural products storage house and cold storage, irrigation and river training, and conservation of forests, environment, and watershed areas.As per the MoFAGA, infrastructure sector will deal with model housing projects/programmes, construction of medium and large bridges, local and agricultural roads, science and technology infrastructure, and electricity generation and transmission.Likewise, social sector includes construction of school and university buildings, health posts, water supply and waste processing.Similarly, good governance sector covers construction of ward office buildings, relocation of vulnerable settlements and reconstruction of public infrastructure damaged by disasters.The government will provide complementary grants for operation of prescribed projects or programmes.

"No local level shall be allowed to use the complementary grants in the projects or programmes operated with equalisation, conditional and complementary grants or its own resources," the MoFAGA said.

The benefits to be obtained from the projects or programmes, capacity of local levels to mobilise resources and their economic condition and need, and priority for the projects or programmes will be taken as the base while providing and determining the amount of complementary grants.Any local level may submit a proposal to the Ministry of Finance to seek complementary grants for operation of projects or programmes within mid-January of each fiscal.

The proposal should comprise details related to rationale of the concerned project or programme, a feasibility study report, estimated total cost, benefits to be derived from the project or programme, detailed information with its drawing, design and specification, and Environmental Impact Assessment or Initial Environmental Examination report, among others.The government has also made a provision of a five-member project selection committee led by secretary at the MoF to make necessary examination of the proposal submitted by the local levels.

If the proposal is appropriate, the committee shall make recommendation to the MoF to approve it and provide complementary grants to the proponent (local level).However, any project or programme with special interest of any political party or religious group and that which has adverse effects on the environment will not be entitled to complementary grants.

The government may provide the grants to a project or programme with a cost estimate ranging from Rs 10 million to Rs 100 million for a rural municipality or municipality and Rs 50 million to Rs 250 million for sub-metropolitan city or metropolitan city. .

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