ISLAMABAD, Jan 7: The Swiss Agency for Development and Cooperation (SDC) on Friday signed an agreement with the United Nations Development Programme (UNDP) under which it would provide $2 million as contribution for ongoing governance reforms in the NWFP, says a press release.

The money will be spent on the implementation of governance reforms under the NWFP Essential Institutional Reforms Operationalization Programme that fundamentally aims at enhancing the capacity of local governments in the NWFP for policy formulation and management.

SDC Country Director Kathy Schneitter and UNDP Resident Representative Haoliang Xu signed the agreement. The SDC contribution will be utilized in the second phase of the NWFP Essential Institutional Reforms Operationalization Programme (EIROP), which will facilitate the design and implementation of the devolution framework at provincial and district levels.

The first phase lasted from February 2001 till December 2004 and enhanced the quality and transparency of decision-making at provincial and district levels by improved information collection and capacity-building.

The second phase of EIROP, beginning in January 2005 and spanning a period of over three years, will focus on enhancing the capacity, transparency and accountability within the local government throughout the NWFP and will place special emphasis on the district and sub-district authorities under the devolution plan.