This study has two main objectives: first, to assess the overall capacity of the Ministry of Education and Sports (MOES) of Nepal, its staff and constituent bodies in relation to their mandates, roles and responsibilities; second, to guide the conceptualization and preparation of a human resource development plan (HRDP) for MOES to support the central goal of quality improvement under the Basic and Primary Education Programme (second phase) (BPEP II). A core of data was collected by questionnaire instruments which were administered widely within central MOES agencies, selected regional and district units, and local schools within the central and western regions. These quantitative data were complemented with extensive interviewing and group discussion across central, regional and local units. Extensive analysis of relevant documentation was also carried out. The report is presented in three parts. Part I introduces the study and places it within the broader context of public sector reform in Nepal. Part II presents the data collected and analyzed at each of the three institutional levels, as well as in terms of female participation in Nepalese education. Part III suggests a way forward, setting out an expanded vision for human resource development that integrates individual and institutional development and outlining the critical issues to be considered by those involved in the preparation of the HRD plan, as well as a range of practical human resource development and capacity-building measures. The following are appended: (1) Institutional Analysis--Plan of Action; (2) Institutional Analysis Tables; (3) Organizational Chart: Department of Education; and (4) Organizational Chart: Ministry of Education and Sports. (Contains 40 tables.) [This report was produced with support from the Study and Resource Centre of the International Programme for Education and Development, Danish University of Education.]