Due to COVID-19 the government of Nepal decided on a lock-down in March 2020, which lasted until early July. During lockdown the team continued discussions, preparations and support to all municipalities to forward their plans and budgets for the fiscal year (July 2020-2021). All were approved and budgets allocated according to plan. In July restricted travelling was made possible and enabled the team of Karuna Nepal to sign agreements in 22 municipalities. However, rising number of infections forced the government to lock-down two districts. Unfortunately, in Karuna Nepal had to close their provincial office again. The plan is still to start with the implementation of the 27 municipalities of batch 1 and 31 of batch 2 simultaneously in this fiscal year.