Annual Progress Report Project Title - Crisis Prevention and Recovery Support to Nepal

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Annual Progress Report - 2012 Project Title - Crisis Prevention and Recovery Support to Nepal Award ID: 00050121 Award Title: Crisis Prevention and Recovery Support to Nepal Project ID: 00061759 Source of Funds: TRAC/BCPR Implementation Modality: (DIM) Project Beginning Year: 2008 Project Ending Year: 2012 Signature Name Project Manager Signature Name Executive- Project Board

Annual Progress Report 1. Overview of the Project Provide a brief description of the project and its main intended results The Crisis Prevention and Recovery Support to Nepal (CPRSN) project is an internal project that supports UNDP Nepal s peacebuilding efforts and the operationalisation of the peacebuilding components of the UNDAF, CPD and CPAP. The project supports UNDP s peacebuilding efforts along three activity results: (i) Consolidate Country Office capacity to provide technical and programatic support to the peace process through supporting human resouces and administrative needs of PBRU, (ii) Analysis, planning and initial start up of Strategic and Catalytic Peacebuilding Initiatives, and (iii) Programme Support Costs. Key areas of focus in 2012 were as follows (further details are provided in section 2.1 below) Support to strategic and catalytic new peacebuilding initiatives, in particular Armed Violence Reduction Technical Support on rehabilitation of Maoist combatants, focusing on capacity development of national institutions and actors Supporting UNDP Country Office capacity through staffing support to the Peacebuilding and Recovery Unit, and the Project Implementation Support Unit. 2. Key Results in 2012 2.1 Summarize three major results achieved in 2012, emphasizing changes in development conditions and/or people s lives. Explain how these interim results are leading towards the overall intended results of the project. Include any policy changes that the project has contributed to. Support to strategic and catalytic new peacebuilding initiatives, development of Armed Violence Reduction and Community Security project The AVR assessment initiated in late 2011 was completed in May 2012, with the results and analysis finalized based on in-depth review and engagement with Ministry of Home Affairs (MoHA). Extensive discussions with MoHA enabled the development of a draft programme outline, which was circulated among national security bodies for review. In November, a round table discussion was conducted with MoHA, Nepal Police (NP), Armed Police Force (APF) and National Investigation Department (NID) to review the proposed programme. At year end a programme document is being circulated for review and approval. In the area of resource mobilization o BCPR have committed $400,000 to be used as seed funding for the project o A bid to the UN Peace Fund for Nepal was successful and has secured an in principle commitment of approx $625,000 for funding in AVR and Community Security for 2013 and 2014. o UNDP CO has committed, as part of the UNDAF framework, to support the project with core resources. Tentative figure for 2013 is 400,000 TRAC allocation. Recruitment for a national project officer, was completed in December 2012. The post will function under CPRSN until a full project is developed and launched. The project is expected to be officially launched in early 2013 The five main pillars in the proposed Armed Violence Reduction and Community Security programme are: 1. Enhance capacities to monitor and analyse the incidence and distribution of armed violence to inform strategy development and planning; 2. Strengthen the capacities of the MoHA, NP, APF 2and NID to effectively control small arms and enhance community security; 3. Strengthen capacities for government-led coordination on armed violence reduction;

3. Achievements against Annual Work Plan (Annual Targets & Activities Please fill out the tabulation below and include all the annual targets set in the AWP for 2012 Activity Result 3: Analysis Planning and initial start up of Strategic and Catalytic Peacebuilding Initiatives (ACT 12 in Atlas) Activity Result 4: Incubation and development of collaborative leadership and peace-sensitive planning (ACT 13 in ATLAS) - TRANSFERRED TO THE CONFLICT PREVENTION PROGRAMME (CPP) Activity Result 5: Incubation and development of strengthening local capacities for peace (including Local Peace Committees) (ACT 14 in ATLAS) - TRANSFERRED TO THE CONFLICT PREVENTION PROGRAMME (CPP) consultant for knowledge management of PBRU activities mainly focussed on rehabilation work. * Engagement of Local Consultat to work on (04000) 71200 940 TRAC 71200 (04000) 44,440 TRAC 74200 (04000) 1,239 Activity Result 6: Programme Support Costs (ACT 6 in ATLAS) Cost Recovery - Security, M & E and Communication BCPR (26921) 74500 9,276 TRAC (04000) 71600 7,500 Total 701556 3

Cross Cutting Issues Gender Equality, Women s Empowerment, and Social Inclusion 4.1 Describe results achieved by the project in promoting gender equality, women s empowerment and social inclusion. Please highlight gender results achieved which has resulted in change in gender equality and status of women in particular. Please provide quantitative data wherever possible. Gender equality and women s empowerment play a central role in the programmes supported by the PBRU, both in the Conflict Prevention Programme and the UN Interagency Rehabilitation Programme. The design of the Collaborative Leadership and Dialogue pillar in CPP gives special priority to women, youth, and traditionally/historically marginalized groups, while the UNIRP supports former combatants with gender sensitive support to transition to civilian livelihoods. The PBRU has collaborated with UN Women, and received inprinciple approval from UNPFN, to develop a project that promotes peacebuilding along three complementary areas of Dialogue, Security and Gender. The AVR and Community Security project under development, has a significant focus on gender issues including GBV. South-South Cooperation 4.2 Has the project/undp supported Nepal in drawing on expertise and experiences from other developing countries or sharing its expertise and experiences with another developing country/countries? Please indicate details. CPRSN was used to bring international expert, Mr. Kees Kingma, to advise the UN system and the Government of Nepal on international best practices in the area of DDR and rehabilitation of former combatants. This international expertise is based on experiences and lessons from other developing countries. National consultant, Mr. Trilochan Malla, also has significant expertise in other contexts, most notably the DDR process in Sierra Leone. For its strategic and catalytic work in Armed Violence Reduction, CPRSN has partnered with both national (Interdisciplinary Analysis) and international (Safer World) organizations, and international experts (Paul Eavis) for a programme development that benefits from global and national expertise. 4.3 Are specific models of practices from other developing country/countries being adopted by Nepal or is Nepal promoting its model/practices in other developing country/countries with the support of the project/undp? Please specify. In all support on issues of DDR and rehabilitation, UNDP promotes adherence to the Integrated Disarmament, Demobilization and Reintegration Standards (IDDRS). In the area of Armed Violence Reduction, all assessment work is informed by the Geneva Declaration on Armed Violence and Development and The Oslo Commitments on Armed Violence initiatives that draw on global lessons in the area of armed violence. The OECD developed Armed Violence Lens was used for the AVR assessment conducted under CPRSN. Capacity Development Has the project contributed specifically to improving the performance of institutions and systems through strategic (comprehensive or targeted) capacity development interventions? If so explain the systems, describe who and what, indicating the category of institution that were the main focus of your efforts? CPRSN continued to be used through 2012 to provide direct capacity building to the Government of Nepal in the area of DDR and Rehabilitation. This was conducted through ongoing technical advice from national and international experts. In addition, the national experts contracted worked with the staff of UNIRP to build the capacity of the ministry of Peace and Reconstruction in the area of database management for rehabilitation and integration of excombatants. CPRSN supported the attendance of one Under Secretary from MoPR at a training course entitled Reintegration of EX-Combatants in June/July in The Netherlands. In the area of Armed Violence Reduction, 3 of the 5 main programme pillars in the proposed programme have a direct focus on building national capacity. 4

5. Implementation Challenges 5.1 Describe any implementation challenges you have faced during the implantation of the project in 2012, as well as your responses. The peace-process in Nepal continues to move at a varied pace. In the area of rehabilitation of former combatants national political dynamics, as well as the views of former combatants at an individual level, resulted in almost all of the main verified group of ex-combatants (19,000) opting for either integration into the national army or a cash voluntary retirement package. This meant that little or no rehabilitation work has been planned for those that are opted for civilian life, via voluntary retirement. The constitution writing process continues to stall, with the passing of a May deadline resulting in the dissolution of the Constituent Assembly and the emergence of a political and legal vacuum overseen by a caretaker government. While not having a direct effect on project activities in CPRSN, indirectly the diversion of political energy and space to ongoing negotiations has a stalled progress in many areas of peacebuilding and development in general. 5

Update the Risk and Issues Logs in the templates provided below. The updated risk and issue logs should follow the same format as in the QPRs. Risk Log Matrix # Description Category Impact & Probability Political consensus deferred or broken down on the architecture for implementation of peace agreements and delays in formation of a new Government. Political P = 2 I = 3 Countermeasures / Management response Step-by-step approach to develop a new programme, linking each development with political developments. Owner Author Date Identified Last Update Status Dennis Denis 09/06/2008 Sep 2012 Reducing Due to lack of political consensus among three major political parties about the future of qualified Maoist combatants, it has created uncertainty of their integration and rehabilitation. Political P = 2 I = 3 Position UNDP as an impartial peace-broker by fielding high-level consultancy missions to initiate dialogues and provider advice on integration and rehabilitation to different stakeholders Dennis Denis 09/06/2008 Sep 2012 Reducing GoN engagement in Armed Voilence Reduction Organizational P = 1 I = 3 Focal points have been identified in 6 ministries to date, and ongoing engagment is prioritizing their involvement in assessment of findings and any future potential project design. Dennis Denis 09/06/2008 Sep 2012 Reducing 6

Issue Log Matrix ID Type Date Identified Description and Comments Status Status Change Date Resolved at the end of 2012 The budget carry over from 2011 to 2012 of Norwegian contribution of USD 89409, allocated for AVR Assessment, encumbered in 2011 has been an issue due to the donor's demand to spend this money in 2011. CPRSN standing by for update. Author Author 7

8

Lessons learned and next steps 6.1 Describe the main lessons learnt that can be drawn from the year s experiences. Please mention any best or worst practices which UNDP should be aware of. Please be specific and focus on 2012. While the move to cash packages without rehabilitation, for ex-combatants, would not have been the route advocated for by the UN, which encourages support to transition to civilian life, the national ownership of the process was respected throughout. Since it is perceived that the value of the cash package was higher than expected, it was agreed among international actors involved in the sector that no further exclusive support would be targeted at those former combatants receiving cash (while also not excluding them from broad based community support, or support for which they are otherwise eligible). The peace process continues to ebb and flow, with the country continuing in a political deadlock as to how to move constitution writing forward, and manage a election. The need to remain flexible in programming approach remains as critical as ever. The technical support offered on rehabilitation options for former Maoist combatants navigated various political sensitivities and deadlocks to remain relevant throughout the year. As in previous years, it was found that the project functioned best when used as a catalytic incubator for new peacebuilding initiatives. This is particularly clear in the project development support to Armed Violence Reduction and Community Security. UNDP s procedures remain time-consuming and burdensome. The exception has been the ExpRes roster managed by BCPR, through which pre-vetted expertise can be contracted quickly. Global initiatives, such as the ExpRes roster, to reduce the timeframes of hiring personnel and procuring goods and services are welcome. 6.2 For projects continuing in 2013, describe priority actions for the following year to overcome any constraints, build on achievements and partnerships, and use the lessons learnt during the previous year. In particular, please make clear recommendations for any required corrective action, for review by the project board. For 2013 the CPRSN project will focus on continued support to strategic and catalytic peacebuilding initiatives. While the Armed Violence Reduction and Community Security programme moves towards launch, initial activities will continue to be managed through CPRSN. Moving forward, CPRSN will explore options for new areas of programming, but also focus on strengthening and consolidating the PBRU s work in the areas of Dialogue and Security. The CPP has been given in principle support by the UNPFN to develop a project with IOM and UN-Habitat that supports a national plan on land reform and and property return. This project has a short to medium term objective of unlocking dialogue on land and setting parameters for political engagement on this highly sensitive topic. CPRSN will engage in catalytic work examining options that could build upon any successes in this area, such as technical assessments of reestablishing land-registries damaged in conflict, cadastral mapping and systems etc. Issues of natural resource management and conflict, and potential programming options and support by PBRU will be examined. The conflict disrupted traditional dispute resolution mechanisms. CPRSN intends to examine this issue, exploring options to reestablish successful past practices, while linking to formal systems and other mediation mechanisms. 9

Implementation Status of DIX or NIX Audit Action Plan (if applicable) Update the implementation status against each audit/ spot check recommendations for 2012 in the table below Obs No Audit Observation Audit Recommendation Risk Severity Action Planned Target Impementation Date Person Responsible Status 10