This paper discusses the theoretical implications and operational complications of education service
delivery in Nepal. Since the establishment of multi-party system in Nepal in 1990, private education
investment came heavily and numerous education service providers entered the education sector both at
primary and higher education. The Nepali state promoted private investment in education in the past
two decades. However, the then Communist party of Nepal (Maoist) [CPN (M)] waged a decade long
insurgency (1996-2006) and one of the targets was to dismantle private investment in education sector.
Therefore, they vehemently opposed the private investment in education sector. Once they came to
power twice (in 2010 and 2012) for short time, they did not change their war-time position but also did
not scrap the private education system. This study on the education service delivery was a part of
ongoing long term research programme called the Secured Livelihood Research Consortium (SLRC)
jointly implemented in 8 conflict affected countries of Asia and Africa. Both the qualitative and
quantitative approaches were used in the study. In quantitative study, all total 3175 households were
surveyed in the 3 districts (Rolpa, Bardiya and Ilam) to document the people’s perception on education
service delivery to complement the national level assessment. In qualitative methods, the in-depth
interview, key informants interview, round table discussions were conducted with the key actors of this
sector. The findings of the study demonstrate that the education sector in Nepal is facing serious
conceptual confusion, theoretical contradictions, and operational setbacks. The state has been unable to
clarify its position (education limit to public service, private service or public-private partnership). The
study found that the multiple stakeholders (private investors, cooperatives, public institutions) involved
in education service delivery are thematically or conceptually in turmoil of how to manage the education
system and are facing operational difficulties. This paper concludes that education sector, one of the
fundamental basic services will continuously face multiple challenges, confusion and contradictions in
coming years too if the policy makers do not settle the conceptual confusion, theoretical contradictions,
and operational challenges