Strong health leadership and governance across the three spheres of government are vital to institutionalise new policies and approaches under the federal system. NHSSP3 is improving the stewardship of the health sector through better formulated and implemented policies, acts, standards, guidelines and regulations, across all spheres, with governance functions carried out efficiently, effectively, equitably and in a responsive manner. Our strategic approach to L&G will be tailored to the requirements of each sphere to improve overall policy performance. L&G is focused on the Health Policy and Planning, and Public Procurement and Financial Management components.

Nepal is in a transition phase moving towards the federal form of governance. NHSSP provides responsive and flexible technical support to the MoH to facilitate a smooth transition towards the federalism. NHSSP is working with the MoH and its respective divisions to redefine the institutional structures along with their roles and responsibilities in the federal context. NHSSP is supporting the MoH to prepare the profile of local health institutions including human resources and to develop a guideline to facilitate the handover of health facilities to the local level. The team works closely with the Technical Working Group on federalism, and Federalism Implementation Unit / Health Sector Reform Unit, and keeps track of the TA support to the MoH towards the operationalisation of the federal reform.


NHSSP is focusing on building an enabling environment for reform and anchoring the work to the policy cycle. The team is building the capacity of the Human Resource and Financial Management Division and Logistics Management Division through the development, implementation, and monitoring of the Financial Management Improvement Plan, Internal Audit Improvement Plan and the Procurement Improvement Plan. It is working in collaboration with external development partners that are supporting financial management and procurement reform processes within the health sector.