Throughout October 27, 28 and 29 Niti Foundation (USAID-PFM) and the NNRFC held a series of discussion for the revision of existing royalty-sharing bases and framework across Bagmati Province; Bhimphedi, Hetauda and Chitwan to review Nepal’s natural resource royalty-sharing framework. These sessions brought together representatives from federal, provincial, and local governments, as well as impacted municipalities and rural municipalities, to discuss creating a more equitable and resource-specific model for distributing royalties from natural resources.
Key discussions centered around the need for a revised structure to reflect the unique demands and impacts of resource extraction in each region. Suggestions included adjustments to the existing 50/25/25 federal, provincial, and local distribution model, with proposals such as a 40/25/30 allocation and the introduction of a 5% shared royalty pool to support all provinces. Participants emphasized the importance of incorporating environmental impact factors and performance-based indicators to enhance accountability and ensure funds support local development, sustainability, and community welfare.
To build a comprehensive framework, USAID- PFM distributed questionnaires to stakeholders across government levels and communities, gathering feedback that will guide an updated royalty-sharing model. This collaborative initiative highlights Nepal’s commitment to fair and accountable benefit-sharing for communities impacted by natural resource extraction.
