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With the adoption of its new constitution on 20 September 2015,
Nepal became a federal democratic republic. Since then, the
country's transition from a unitary system of government to the new
federal system has been ongoing and remains a challenging process.
The report examines the evolving institutional arrangements,
challenges, and governance risks for the sectors in which ADB
operates. It also identifies potential reform measures that ADB
could support to help address these governance risks. The report
aims to contribute to the preparation of ADB's 2020-2024 country
partnership strategy for Nepal.
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