The main objective of the CountryEnvironmental Analysis (CEA) in Nepal is to identifyopportunities for enhancing the overall performance ofselect environmental management systems through improvementsin the effectiveness of institutions, policies, andprocesses. CEA has been built upon the following threeprimary study components: (a) an examination of theenvironmental issues associated with infrastructuredevelopment, focusing on the Environmental Impact Assessment(EIA) process in priority growth sectors; (b) an analysis ofenvironmental issues linked to rapid urbanization, focusingon the growing problems of solid waste, poor air quality,and industrial pollution, and the resulting impacts onenvironmental health; and (c) an analysis of the policy andinstitutional underpinnings related to key environmentalmanagement systems at the national and local levels. Thisreport provides the basis for a discussion of the challengesand options facing Nepal in regard to improving theperformance of key environmental management systems andinstitutions to support its growth and poverty alleviation agenda.