UNDESA and UNCDF are working together with the Town Development Fund (TDF) of the Government of Nepal as well as the Ministry of Local Government, Rural Development and Cooperatives of Bangladesh to help local governments leverage their assets for achieving the Sustainable Development Goals (SDGs). To kick off their collaboration, participants from local governments and central government agencies met in Pokhara from 17-19 September and in Sreemangal, Bangladesh from 21-23 September 2019.

Global estimates to reach the SDGs range from US$2.5 to $7 trillion per year. Nepal will have to spend well over $15 billion a year until 2030 to attain them. Bangladesh would require an additional annual amount of over $65 billion for their full implementation.

A large share of the financing is needed at the local level whereby local assets, such as equipment and machinery, public land, buildings and infrastructure facilities provide essential public services. Local assets can both generate additional and leverage existing financial resources for sustainable development.

Despite their value and importance, surprisingly little attention has been devoted to managing municipal assets in the most cost-efficient manner. Nepal and Bangladesh are no exception. There are no coherent asset management frameworks, policies, strategies and actions in place. Such a gap must be addressed swiftly and efficiently in countries where increased urbanization and the effects of climate change will put further strain on existing assets: Nepal will experience one the highest rates of urbanization in the world over the next two to three decades. The unprecedented recent spread of dengue fever to urban areas is just one of many adverse effects of climate change that is putting greater demand on some of the existing urban facilities. Bangladesh, by some estimates, may lose over 20 per cent of its fertile land due to climate change. Such an event would push large rural populations to abandon their land and seek employment opportunities in Dhaka and other cities.

“Everyone loves new projects, but we are not thinking about proper maintenance and sustainable use of what we already have. Better asset management will help municipalities make a significant contribution towards Nepal’s sustainable development objectives,” explained Maniram Singh Mahat, Executive Director, Town Development Fund.

“Efficient asset management is the precondition of SMART municipal development.” said Beguem Roxana Quader, Additional Secretary, Ministry of Local Government, Rural Development and Cooperatives, Bangladesh.

Reflections on municipal asset management that is fit for purpose were at the heart of the training workshops. The participants reviewed the basic tenets of asset management and went through a step-by-step process of designing their individual municipal Asset Management Action Plans (AMAPs). Participants received hands-on training and worked in groups of their respective local governments - to define goals, principles and objectives of their municipal asset management, identify key stakeholders and their priority assets and to assign performance goals and key actions of their AMAPs to most efficiently manage their priority assets.

The ultimate objective of AMAPs is to help local governments navigate the complex landscape of asset management for all assets and set out a concrete multi-year action plan that will leverage them in support of the SDGs.

“Asset management is complex, but it doesn’t need to be with the proper skills and political commitment. It includes comprehensive and transparent inventorying of assets, their valuation, lifecycle management, as well as strategic portfolio reviews.” said Linda Newton, an internationally renowned expert on asset management and the chief instructor of the training workshop.

In the course of the discussions, local governments acknowledged the need to pursue more coordinated and effective asset management at the local level. They also emphasized the need for proper national guidance and greater coordination with other tiers of the government that manage assets located in their municipalities.

“I thank all the participants for preparing the AMAPs and as the Mayor of my municipality, I commit to implementing the action plan for Tulsipur. It is important to have a system developed to institutionalize the process of asset management which needs to be looked into by TDF, UN DESA and UNCDF to promote good governance in Nepal,” stated Topendra Bahadur K.C. Mayor, Tulsipur sub-metropolitan city.

While benefits of more effective asset management may take a while to materialize, they are substantial over time. The implementation of AMAPs can result in greater revenue potential of existing assets and lower service delivery costs. Moreover, well-managed assets will provide dependable, reliable services and amenities. They will increase the trust between government and taxpayers. Proper valuation and management of environmental assets, such as lakes, rivers and groundwater will increase resilience of municipalities in the face of external shocks.

The two workshops were attended by 80 central government officials and representatives of 11 local governments from across Nepal and Bangladesh. Participants welcomed the training and highlighted the need for sustained support in the implementation of AMAPs.

“The training has been very useful in providing us with a new set of practical tools to properly manage our assets. It has also changed how we view assets. Our services can be significantly scaled up if we share what we learned here with our colleagues at home,” informed Meena Lama, Deputy Mayor of Hetauda sub-metropolitan city.

This training and the implementation of AMAPs will provide the foundation for the automation and digitalization of our asset management practices.” highlighted Mr. Sazzad Islam, Town Planner of Chandpur municipality.

In addition, central government officials were trained in providing support and applying a diagnostic tool developed by UNDESA and UNCDF to help evaluate the demand for asset management at the local level.

Concluding the workshop UNDESA and UNCDF and the Governments of Nepal and Bangladesh expressed their commitment to provide continued support on the design and implementation of AMAPs.

“We look forward to continuing our collaboration with UNCDF and TDF to ensure that the AMAPs are implemented and replicated by other municipalities,” said Jesmul Hassan (UNCDF Bangladesh) and Pragyan Joshi (UNCDF Nepal) and Daniel Platz (UNDESA).

The Pokhara workshop was preceded by a meeting in Kathmandu on 15 September, organized by UNDESA, UNCDF and TDF in close coordination with the Financial Comptroller General’s Office. The participants comprised of high-level officials from central governments and other relevant stakeholders.

The event was chaired by Gopi Nath Manali, Financial Comptroller General, Ministry of Finance. Participants discussed the key elements of the national legislative, regulatory and political environment that governs asset management at the national level.

The Government of Nepal expressed its commitment to collaborate with the UNDESA, UNCDF and TDF to support municipal asset management in Nepal and to promote an enabling policy framework at the national level.

“Within the new federal context of Nepal, municipalities are facing a range of new responsibilities and challenges. The FCGO remains committed to strengthening municipalities in managing their assets,” noted Gopi Nath Manali, Financial Comptroller General.

Contacts:

UNCDF Bangladesh: Mr. Jesmul Hassan; email: Jesmul.Hassam@uncdf.org

UNCDF Nepal: Ms. Pragyan Joshi; email: Pragyan.Joshi@undf.org

UNDESA: Mr. Daniel Platz; email: platz@un.org