Nepal's landlocked and fragmented terrain substantially hampered domestic and foreign commerce. Nepal's transport system suffered from long distances; dependence on a handful of transit routes for imports and exports; and substandard transit logistics, trade facilities, and infrastructure. Clearance procedures for goods were cumbersome, resulting in prolonged clearing times at the country's major gateways. Institutional capacity to manage an efficient transit system needed improvement. The ADB-sponsored South Asia Subregional Economic Cooperation (SASEC) Program, comprising Bangladesh, Bhutan, India, and Nepal, developed action programs for subregional economic cooperation in six priority sectors: transport, energy, tourism, environment, trade and investment, private sector cooperation; and information and communication technology. The Transport Working Group under the SASEC program identified six major subregional transport corridors of which two involved Nepal, needing to remove institutional and physical impediments (choke points) to improve subregional transport connectivity and economic integration.
This report validates the completion report's assessment of the project which aims to help integrate Nepal's economy into subregional and world markets by upgrading governance capacity, better transport facilities, and greater efficiency and effectiveness of trade management. IED overall assessment: Successful