The government of Nepal recognizes information and communication technology (ICT) as one of the most effective means to overcome the geographic barriers posed by its harsh topography, especially its hilly and mountainous terrain, to the effective delivery of public services and poverty reduction, and sustainable growth, particularly in the rural areas. Despite this, the development of e-government and ICT remained at infancy stage until the early 2000s. Among the countries assessed for e-readiness, Nepal was in the lowest 5%−20%. The situation raised major concerns regarding the country’s participation in the information society.
To help address the situation, the Asian Development Bank (ADB) approved a $31.2 million grant for the Information and Communications Technology (ICT) Development Project in January 2008. The project’s envisaged impact was ICT services increased for communities, business, and government entities, leading to more inclusive and sustainable socioeconomic development. Its expected outcome was accessibility, efficiency, and transparency in public service delivery improved by increasing the access of communities and business to affordable ICT. Its planned outputs were (i) rural e-community connected, (ii) government network established, (iii) e-government applications developed, (iv) human resources for e-governance developed, and (v) national ICT policies formulated.
From 2009–2012, the Nepal Telecommunications Authority substantially achieved the rural e-community project target. Tele-density increased from 18.86% in January 2009 to 64.91% in July 2012, primarily because of increased penetration of mobile networks. As it became redundant, the rural e-community output was dropped at government’s request during the midterm review in September 2012, and its budget was reallocated to the other components. At completion, the project achieved all its output and outcome targets on the four remaining components.
Much-needed government ICT infrastructure, including the government enterprise architecture, integrated data center and government groupware, was developed. With the ICT network, the government can better manage its document system and better coordinate among ministries and other government agencies. e-Citizen services and applications were piloted for land registration and land record management, the issuance of driving licenses, and public service recruitment. All piloting activities were successful.
By 2019, 108 land revenue offices were using the Land Reform Information Management System (LRIMS), which has simplified the calculation of registration fees and capital gains taxes, made them transparent, reduced illicit transactions, and increased work effectiveness. The Electronic Driving License system has been in operation in 16 offices and is expected to reduce bribery and corruption, because of the ease it has introduced into the license application system. Furthermore, the smart licenses issued through the system is likely to reduce road accidents. The Public Service Recruitment Management System, also fully operational in 16 offices, has improved public access to government jobs, simplified administrative processes, and reduced recruitment processing time.
Trainings conducted in the laboratories set up or strengthened by the project or through contracted training institutions helped civil servants, who were mostly ICT novices, understand better the e-government systems and operating procedures being implemented. Cabinet endorsement of the National ICT Operational Policy for the government enterprise architecture and the Nepal e-government interoperability framework has provided the legal basis and paved the way for the continued establishment and operationalization of e-government and ICT.
With output and outcome targets met, the project achieved its intended outcome. It was instrumental for the rapid increase in the use of ICT services since 2015 which has positively transformed Nepal. It has contributed to improved efficiency, transparency, and accountability in government transactions, positively impacting the poor and vulnerable. The corruption perception index improved from 22 in 2010 to 34 in 2019.
From 2010 (base year) to 2018 (project completion year), Nepal’s UN E-Government Development Index rose from 0.27 to 0.47, posting a 74% increase that exceeds the project target of 10%. Tele-density increased from 18.6% to 142.63% from 2008 to 2017. This increase augurs well for Nepal, as a study published in the 2016 World Development Report found that for every 10 percentage-point increase in fixed broadband penetration, gross domestic product grows by 1.21% in developed economies and 1.38% in developing countries.
The project had the Office of the Prime Minister and Council of Ministers (OPMCM) as executing agency. Six implementing agencies, each with a project implementation unit, assisted the project management unit and project management consultants in the OPMCM in implementing the project on a day-to-day basis.
