Nepal - Digital Transformation Project

Overview & Synopsis

Nepal Digital Transformation Project for Nepal has the development objective to improve delivery and increase use of inclusive and high-impact services for citizens and businesses. Component 1: Digital Government. Sub-component 1.1: Secure Data Infrastructure supports immediate upgrades to the government data center and disaster recovery site to improve resilience, energy efficiency, and uptime; develops data governance tools such as a data classification framework, a cloud-first policy, and a cloud migration strategy; and establishes a hybrid Government Cloud (GovCloud) that enables secure, scalable use of public and private cloud services, complemented by strengthened cybersecurity through a Security Operations Center (SOC), Network Operations Center (NOC), Digital Forensics Lab, a national Cyber Response Contact Center, capacity building across government, and technical guidance informed by cybersecurity and data protection impact assessments. Sub-component 1.2: Core Digital Public Infrastructure strengthens foundational systems by modernizing the National Identity (NID) system, including enhanced authentication and a new system design aligned with data minimization and interoperability; establishes an Integrated Social Protection System (ISPS) with a social or family registry linked to the NID and civil registration and phased rollout starting with Social Security Allowances; builds an electronic signature ecosystem through a government Certification Authority (CA), integration toolkits and guidance for ministries and private systems, public awareness, and proposals to update the Electronic Transactions Act and related data protection and cybersecurity laws; upgrades the Nagarik App into a fully transactional one-stop service platform with a digital wallet, secure locker, verifiable credentials, multilingual and low-bandwidth interfaces, and integrated grievance redress; and creates a National Data Exchange anchored in consent- and compliance-based sharing to enable secure, standardized, interoperable data flows across government and authorized private entities, with frameworks and systems integration support. Sub-component 1.3: Digitalization of High-Impact Services finances business process reengineering for a prioritized set of services organized in clusters, with initial focus on business and economic and transport services, producing redesigned workflows, standard operating procedures, change management, and implementation-ready procurement packages; and pilots integrated digital land administration by harmonizing cadastral and registry data, developing online modules for key transactions, and integrating with the National Data Exchange, electronic signatures, and the Nagarik App, with performance-based pathways for scale-up. Component 2: Project Management and Implementation Support establishes a central Project Management Unit and Project Implementation Units to manage procurement, financial management, monitoring and evaluation, and environmental and social risk management; supports citizen engagement, outreach, and grievance redress; undertakes third-party audits and capacity building; and strengthens institutional coordination across ministries, departments, and agencies to ensure coherent delivery and sustainability.