| Overview : MEDEP was developed to support the Government of Nepal in its poverty reduction and employment generation efforts by supporting micro-entrepreneurs in Nepal. Australian Government is the main donor for supporting micro entrepreneurship development in Nepal. The programme was initiated in 1998 and is currently in its phase IV (2013-2018). Phase I ran from 1998 – 2004, phase II from 2004 – 2008, phase III from 2008 – 2013. Over these phases, MEDEP has provided entrepreneurship development training; technical skills; access to finance; testing and transfer of appropriate technology; business counseling and market linkages to micro-entrepreneurs that later became a model for micro-entrepreneur creation and promotion in Nepal. Furthermore, the programme has also successfully provided policy advocacy for the promotion of micro, small enterprises, and support to draft appropriate policies, acts, regulations and guidelines. While earlier phases of the programme focused on providing direct support to micro-entrepreneurs, the current phase includes a strong focus on building the capacity of the GoN and NGOs to create a sustainable system for supporting micro-entrepreneurs in Nepal, such as the development and implementation of policies supporting access to markets, finance and business development services. The role of the MEDEP has changed from being an implementer to becoming a facilitator. In this context MEDEP has graduated into a national program and has been internalized by the GON. In operational terms, this means that GON will replicate MEDEP model in all 75 districts under GON’s programmatic and budgetary framework; under the MED-PA. The GON has requested MEDEP (and international development partners) for technical and capital assistance for executing MED-PA. Thus, MEDEP has been trying to realign itself to one that provides Technical Assistance to GON’s MED-PA for five years until 2018. By then, it is envisaged that technical assistance is no longer required by the GON to implement the MED-PA as the Government will be fully capable of implementing the Program. Given the objectives of phase IV leading to handing over MEDEP to the GoN, the challenge is to ensure that the MEDEP model is maintained and adopted by MEDPA. A smooth handover and continuation of the MEDEP model requires sufficient capacity within the GoN and other institutions involved in making MEDEP a success. Two capacity assessment and development reports have been conducted and published in 2009 & 2012 which provide clear recommendations for developing capacity among key stakeholders. The proposed Mid Term Evaluation (MTE) is planned to identify potential project design problems, assess progress towards the achievement of objectives, identify and document lessons learned and make recommendations regarding specific corrective actions necessary to improve project performance in the remaining years. | 
