The overall objective of the proposed SAGUN extension program is 'to ensure that natural resources in selected areas of Nepal are managed in a democratic and sustainable way; that the performance of selected civil society groups and other institutions is improved to meet the principles of good governance; that the benefits from natural resources are dispersed in accountable and transparent ways and that the benefits and other earned revenues are equitably distributed to the local communities both directly and through sustainable livelihoods improvement initiatives; so that the biodiversity is conserved and the democratic process for conflict resolution and peace building is supported'.

The SAGUN program was developed to build on the successful establishment of Natural Resource Management (NRM) groups in order to increase their ability to manage the precious forest and water resources that support people’s livelihoods.

In Nepal’s rural areas, over 80% of people directly depend upon these natural resources. The negative impact of insurgency on development and weak local governance has highlighted the need for grassroots groups to strengthen the management of natural resources in order to increase productivity and sustainability. NRM groups are a significant force in mobilizing natural, human and financial resources. With the support of SAGUN Program, they can develop capacities to better manage their local resources as per government guidelines and distribute the costs and benefits inclusively, to ensure equitable access to, and benefit from, these assets amongst those who depend on them most, namely women, Dalits, marginalized ethnic groups and other disadvantaged groups.

Strengthened Actions for Governance in Utilization of Natural Resources (SAGUN) Program has been implemented since November 2002. Funded by USAID, the program has a total budget of US $7.97 million including of US $ 6.30 million grant from USAID. The initial phase of the program completed in December 2006 with three months ‘No Cost Extension’ phase. Initially the Program had three components viz. Forestry and Buffer Zone Component; Irrigation Component and Partnership for Hydropower Component. In September 2005, Policy Advocacy Campaign was added to the Program.

From January 2007, Irrigation, Hydropower and Policy Advocacy Campaign components have been phased out and only Forestry and Buffer Zone Component has been continued with new programmatic and geographic focus. SAGUN Extension Program (SEP) has begun from January 2007 for a period of 21 months until September 2008 with a total budget of US $ 1.875 million including US $ 1.5 million grant from USAID. The SEP builds on the best practices and lessons learned form the initial phase of SAGUN Program and apply them in the expanded new areas such as Gorkha, Lamjung, Buffer Zone area of Langtang National Park and Kanchenjunga Conservation Area.

The key focus areas of the SEP include: Strengthened governance; improved livelihoods; biodiversity conservation; and, policy advocacy. During the Program period, SEP targets to reach 1,300 Natural Resource Management Groups (NRM) groups and 225,000 direct beneficiaries including women, poor, traditionally marginalized and ethnic minority groups such as Dalits and marginalized Janajatis.

To achieve the overall objective, the program strategy comprises focus on local NRM groups, minimization of root causes of conflict, livelihood improvement planning, institutionalization of LRPs, landscape level biodiversity threat reduction, and new thrust in policy advocacy.