Local Infrastructure Support Programme - Nepal

Local Infrastructure Support Programme (LISP) will improve the ability of Nepal’s local and provincial governments to respond to the demands of rural citizens for local infrastructure and increase the legitimacy and accountability of local government to their citizens with an emphasis on the empowerment of women. It will create green recovery jobs to stimulate the local economy and build climate resilience.

The £90 million FCDO allocation for LISP will be delivered in two phases:

£45 million to start with (£10m, £33m and £2m of which for TA, FA investment and IEL components respectively), and

Another up to £45 million after the midterm review of LISP in 2026/27 and associated decision point in 2026/27.

FCDO is seeking the services of a supplier for detailed design and delivery of Local Infrastructure Support Programme, and to develop and agree a national framework for the sector (Proposed name: Provincial and Local Infrastructure Sector Framework). The sector support will ensure a common approach and procedures for all spheres in the Government and donors to strengthen and invest in the provincial and local infrastructure sector.

The supplier shall deliver the objectives of LISP’s three main and interlinked components - (1) System and capacity support to different spheres of the Government of Nepal and planning and engineering support for local infrastructure, budget up to £20 million (£12 million of which for planning and engineering support to local governments), (2) provide management support for a capital and resilience Financial Assistance (FA) investment, budget up to £66 million, and (3) Innovation, evaluation and learning (IEL), budget up to £4 million. Continuous learning for LISP will be delivered by a phased package of LISP Pilot, IEL (component c) and TA (component a).

The system, planning and engineering support and the management of FA investment components will be under a single contract.

LISP shall incentivise local governments providing access to infrastructure finance based on clear conditionalities and achievements, such as deliberative decision making, infrastructure quality and resilience, GESI integration. LISP finance shall only be made available to local governments that make the effort to improve their technical capacities and financial management and demonstrate a commitment to improving infrastructure services delivery.