2.4 Executing Agency (Line Ministry)
Even though NPC and MOF are responsible for finalising the long-term plans (5,15, 20 years), the annual programme and the required budget provisions, the line ministry is responsible for the following activities in response to requests from departments and other related agencies:

• Initiates project requests.
• Requests budget provision for project feasibility studies.
• Requests annual budgets for on-going and new projects.
• Approves district level annual programmes of projects already approved.
• May approve projects of an urgent nature costing less than NRs 1.5 million, informing NPC of the reasons why due processes of approval could not be followed.
• Provides data for ensuring quality, quantity and overall robustness of projects.
• Scrutinize the budget estimate and programme to check whether it is within budget limits, conforms to periodic plans and is result oriented and finalizes it.

2.4.1 Project Identification in Five-Year Plan
The ministry shall in line with the long-term development strategy, sector policies, and vision of the government, generate a list of projects that generate income and provide equitable development. The ministry shall consider the following:

• Development of sector master plans at central and local levels.
• Feedback and subsequent revisions in the master plan.
• Project requests through local bodies and political representations.
• Existing pre-feasibility/feasibility studies.
• Priorities in the master plan and other plans.
• Uniqueness of the project in terms of urgent relief, early benefits, funding availability, environmental inputs and sustainability.

The ministry shall submit to NPC the details of the following:

• On-going projects, their costs, time for completion and their priorities in terms of net present value (NPV) and internal rate of return (IRR).
• Maintenance and improvement of completed projects showing costs, time, NPV and priorities.
• New projects with costs, time, NPV and priorities.
• Projects that are not economically viable but socially urgent with costs, priorities, and time.
• Database of identified projects enlisting salient features of the project.
• Information dissemination.
• Feedback for future ministry plans and programmes.

The electronic record shall be maintained for all the five-year and annual project requests. Computer disks and hard copy shall be sent to NPC.

2.4.2 Project Preparation
The ministry shall ensure that the implementing agencies (e.g. departments) have sufficient planning units, manpower and adequate planning tools to generate and analyse the data and reports and to support NPC.
It provides a technical group or support to carry out detailed feasibility studies of the technical, institutional, economic and financial aspects of the project and to carry out the necessary social and environmental assessments.
It instructs division/district/project staff to develop the preliminary engineering design of the project specifying its objective, location, size, components costs, phasing, manner of execution, schedule and expected results of the project.

2.4.3 Project Appraisal
In collaboration with the MOF, the ministry carries out an appraisal of the project, reviewing all the aspects of the project and if necessary modifies and remodels the project.

2.4.4 Project Funding
In collaboration with MOF and NPC, the ministry arranges for including the appraised project in the five-year plan development budget or identifying funding from foreign assistance.

2.4.5 Annual Budget Requests to NPC/MOF
The ministry ensures that the implementing agencies (departments) consider the following in preparing and submitting their annual plans:

• On-going projects included in the five-year plan along with their status in relation to the plan period targets.
• Feasibility and pre-feasibility studies of the project.
• Justification for new projects not included in the five-year plan.
• Appraisal of projects for which feasibility studies have already been carried out.
• Priorities with reference to the five-year plan.

2.4.6 Annual Work Programme After Budget Approvals
Actual work programmes are prepared in detail within the annual budget approved for each project by the parliament. Executing agencies should ensure that the implementing agencies consider the following in preparing the annual work programme:

• The programme shall reflect the total project work to date and the work planned for the year and the timetable.
• The unit rates, time for completion, procurement process, specifications and design standards should match the expected levels of service and do not differ significantly among similar projects.
• Directives for annual plans are prepared so that uniformity, cost effectiveness and efficiency are well addressed.
• Annual work programmes are approved by the concerned ministry.

2.4.7 Project Implementation Plan
In collaboration with the Ministry of General Administration and MOF, the ministry obtains sanction of staff establishment and their placement in the project.
In collaboration with FCGO, it arranges for accountant staff required for the project and their placement in the project.
For co-ordination and eliciting co-operation from all concerned, it may form a coordination committee comprising representatives from all departments and ministries which will have an involvement in the project.

2.4.8 Institutional Arrangement
Each ministry shall establish a strong planning and monitoring division with adequate manpower, logistic support and appropriate incentive mechanisms.