Nepal: Decentralized Rural Infrastructure and Livelihoods

Sovereign Project | 30232-013

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Project Name Decentralized Rural Infrastructure and Livelihoods
Project Number 30232-013
Country Nepal
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2092-NEP: Decentralized Rural Infrastructure and Livelihoods
Asian Development Fund US$ 40.00 million
Loan: Decentralized Rural Infrastructure and Livelihoods
Swiss Development Corporation US$ 1.90 million
Deutsche Gesellschaft fur Tech. Zusammenarbeit US$ 700,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector

Agriculture, natural resources and rural development - Agricultural policy, institutional and capacity development

Gender Equity and Mainstreaming
Description The project will contribute in reducing rural poverty in 18 very poor remote hill and mountain districts of Nepal, affected by the conflict. The objective is to achieve sustainable increased access to economic and social services, and enhanced social and financial capital for people in the project area, particularly poor and disadvantaged groups in conflict areas. The scope includes: (i) community development and rural livelihood restoration, (ii) capacity building and decentralized governacne, (iii) rural tranport infrastructure, and (iv) project management services.
Project Rationale and Linkage to Country/Regional Strategy

To achieve its primary development objective of poverty reduction, the Government places high priority on the rehabilitation and expansion of rural infrastructure as highlighted in the Government's long-term Agriculture Perspective Plan (APP) and Ninth Plan. Furthermore, the Tenth Five-year Plan (2003-2007) defines the road transport sector objectives as being to use resources more efficiently to make transport services accessible nationwide, and refers to the formation of a road maintenance fund, to a greater role of the private sector, and to the construction of rural roads through a decentralized, environment-friendly approach.

This was highlighted in the country programming mission in 1999. It also complements ADB development objective of poverty reduction.

Impact Reduce rural poverty in 18 very poor remote hill and mountain districts of Nepal affected by the conflict
Project Outcome
Description of Outcome

Sustainable increased access to economic and social services, and enhanced social and financial capital for

people in the project area, particularly poor and disadvantaged groups in conflict areas

Progress Toward Outcome

The overall progress of works is satisfactory. The remaining works can be completed by the loan closing date of 31 October 2011 if the works progress are expedited. In particular, MLD and PCU should give priority in resolving the issue of delegation of project management authority to DTOs and ensuring availability of 10% counterpart funds from the participating districts.

As of 31 December 2010, cumulative contract awards and disbursement are $35.268 million (86%) and $25.012 million (61%) respectively against the elapsed loan period of 88%.

Implementation Progress
Description of Project Outputs

1: Community Development and Rural Livelihood Restoration

1.1 Increased awareness and participation in the planning, implementation, and maintenance of rural infrastructure, and in other development activities by local communities, including the poor and disadvantaged

1.2 New and rehabilitated physical infrastructure provided for community economic and social activities

(supplementary investments)

2. Capacity Building and Decentralized Local Governance

2.1 Capacity for planning, implementing, and maintaining rural infrastructure increased at district, village, and national levels

3. New and upgraded rural transport infrastructure provided using the labor-based, environmentally

sound, participatory construction approach

4: Project Management Services

4.1 Central PCU in Kathmandu established

4.2 District project office established

4.3 Participation and monitoring linkages established

Status of Implementation Progress (Outputs, Activities, and Issues)

Output 1. Community Development and Rural Livelihood Restoration

Progress: Total of 1,288 nos. of community orientation/awareness raising activities have been conducted with the participation of 41,384 participants (M/F- 22,071/18,388 DAG- 13,220; D/E-10,781) at district and local community level in sub-project area where various stakeholders are participating in the districts during the planning, implementation stage. It is expected that it will be continued during the implementation stage with increased participation of women and ethnic group.

In 16 districts, about 1,231 BGs (total member- 27,171) have been formed with about 38% women members and in other districts the formation process is ongoing. In all district one day orientation/training conducted to BG leader & co-leader. Till now 5,003 person days of leaders & co-leaders have been trained.

Building Group members have been paid about NRs 680.86 million in Taplejung, Solukhumbu, Okhaldhunga, Ramechhap, Lamjung, Myagdi, Jajarkot, Bajhang, Bajura, Jumla, Humla, Mugu, Dolpa, Kalikot, Baitadi and Darchula as a wages for the road construction work.

Community consultation program to inform local people in the districts about DRILP modalities & implementation is ongoing and slowly increasing the participation of women and poor ones in community meetings. Till now 47,465 HHs have participated in such community consultation meetings.

1,615 orientation/trainings (total participants 52,021) are conducted to DRCC/VWRCC/ BGs/DDCs/ DTOs, communities in planning, implementation & monitoring of the main subprojects & supplementary investments in ZOI.

Out of 1,080 BGs in 24 sub-projects, ten sub-project (Solu., Okhaldhunga, Ramechhap, Myagdi, Jajarkot, Bajhang, Bajura, Kalikot, Jumla & Baitadi) have formed Saving & Credit group. Total Saving Credit BGs groups are about 826 nos. All BG members are collecting saving fund from each running bill and saving amount is about NRs. 10,747,446 up to reporting period.

Out of 409 SIS demand collected, conducted survey, design and estimate of about 279 SIS schemes of first road sub-project in 18 districts. About 88 SIS schemes are under construction and about 130 SIS schemes have been completed. The work progress is going on in Rmaechhap, Lamjung, Jajarkot, Bajgang, Bajura, Jumla, Kalikot, Dolpa, Baitadi and Darchula districts.

Output 2: Capacity Building and Decentralized Local Governance Strengthened

Progress: Coordination with various sectoral line agencies is on-going at the district level for the preparation and implementation of the selected sub-projects. Sub-projects are being selected from DTMP priority list which reflects the local priorities. 11 districts have updated DTMPs which was prepared earlier and other 7 districts have recently prepared or in the process of finalization of DTMPs.

Various orientation/training, meeting is being provided to VWRCC member from the beginning. In the beginning of every Fiscal year VWRCC are provided training on planning, budgeting, and implementation of subproject. Total 447 numbers of orientation and meeting was conducted to 1,466 VWRCC members.

Rural Transport Infrastructure Sub sector policy on gender developed and approved. All 18 districts had already established maintenance fund and is expected to be operational from coming fiscal year with the preparation & implementation of Annual Road Maintenance Plan (ARMP) by the districts.

Output 3. New and upgraded rural transport infrastructure provided using the labor-based environmentally sound construction approach

Progress: All the 18 districts already selected 33 main sub-projects (including RCC motorable bridges) for the first/second phase implementation and the tentative length detail survey of about 782 km and design, estimate of the selected subprojects is about 704 km up to reporting period.

In all 18 districts (29 subprojects), construction and rehabilitation work for 496 km rural roads by BGs and contractor is progressing. The status of the subprojects are: walkover survey - 1500 km; detailed survey - 814 km; design and estimate - 764 km, cadastral survey - 33 SP/673 km, Contract/VWRCC Packaging - 579 km; resettlement plan - 31 nos. SP/588 km and IEE report - 31 nos. SP/696 km. In 25 road SP, 183 km new road and 159 km road rehabilitaiton work had been completed

Out of total 184 demanded trail bridges; 113 nos (8,247 rm) completed, 52 (3,489 rm) under construction and remaining 19 are in the process of planning, designing and estimate.

In 16 districts (except Gorkha & Humla), the phase II subprojects are selected. In rest of the districts, phase I subprojects will continue as phase II subprojects. A total of 19 subprojects are selected with the plan of 291.5 km under new construction and 45.5 km as rehabilitation. In 10 districts, work has already been started.

A total length of 14,000 rm of Trail Bridge is planned, out of which 6571 rm has been completed and rest is ongoing.

Works from BGs have been started in 16 districts. Payments records will be maintained through labor card. Till the reporting period, the total payment for civil contract, VWRCC/BGs and material/tools suppliers is NRs 2,280 million out of which NPR 681 million is paid to VWRCC/BGs mostly for unskilled works of which 38 % are women.

Until the reporting period the total of 4,828,770 person-days employment has already been created including trail bridges workers.

Output 4: Project planning, management, and support strengthened

Progress: PCU with full time project coordinator, 2 project engineers (though there is 3 engineers provisioned), and supporting staffs are in place.

DPO engineers in 18 project districts have been fulfilled. The supporting staffs are yet to be fully recruited which makes DPO only partially functional and effective in most of the districts.

At central level suitable building with acceptable communication system has been arranged but at district level the building has been rented to establish DPO with partial procurement of logistical facilities. It is yet to make DPO fully functional and operational with the recruitment of full staff (Accountant, Jr. Engineers, and Computer Operator etc). CISC & DISCs in 8 districts from SDC supports are already engaged and DISCs in 10 non-SDC districts are procured and mobilized.

Output 5: Project Management Services

Progress: Workshop on Project procedure Manual (PPM) was held from time to time. The Chairperson, Vice-chair person, local development Office and DTO chief participated the workshop. During the workshop the participants discussed the progress and other related issues encountered during implementation. Central Implementation Support Consultants engaged under SDC support from March 2005. A new Project coordinator assigned starting January 2007.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects

All road and trail construction use the full LEP approach, which includes (i) employing unskilled labor instead of construction equipment; (ii) applying design and construction methods that protect the physical environment; and (ii) applying design and construction methods that protect the physical environment; and (iii) incorporating local interests and opinions in the planning, design, and implementation of the works. DoLIDAR has provided adequate technical assistance to ensure that the integrity of the approach is maintained in all Project districts and throughout the entire implementation period. The approach is being considered during the entire planning, selection, survey and design of subproject and implementation of works.

All subprojects have been identified, selected, implemented, and reported in accordance with (i) the environmental procedures and requirements specified in the Environmental Assessment and Review Procedure, (ii) the IEE of each subproject, (iii) the Bank's Environmental Assessment Guidelines, and (iv) relevant national and local environmental laws, regulations and guidelines. IEE in selected subproject is ongoing in parallel to design, survey and reporting.

Involuntary Resettlement A short resettlement plan in 20 subprojects of phase 1 has been approved by ADB. In phase 2, 10 have already been approved. Of the total 32 subprojects; ADB had approved 30 RP; provided its comments for one plan and preparation of one additional plan in final stage. Project Resettlement Framework agreed upon between the Project and ADB has been fully complied. The contracts have been awarded only after the approval of resettlement plan. Compensation payment is completed before possession of land in all subprojects.
Indigenous Peoples The 18 project districts have a significant presence (20%) of disadvantaged castes (Kami, Damai, and Sarki) and hill tribe groups (Tamang, Rai, and Limbu). Disadvantaged ethnic groups and castes are predominantly found in the lowest-income households and usually work as wage laborers. The Project's focus is on poverty alleviation and income restoration, and community development using participatory approaches, targeting these groups. Selection criteria for BG membership ensure that the poorest households will have the priority for income earning and training as BG members.
Stakeholder Communication, Participation, and Consultation
During Project Design The Project aims to increase the participation of the socially excluded and poor in VDC decision making through a community social mobilization program, which will target vulnerable and excluded groups (women and disadvantaged castes generally). Workshops run by social mobilizers will help poor people develop the confidence to speak at meetings and participate in collective decision making.
During Project Implementation The Project promoted participatory approaches through the decentralized government process. Subprojects have been identified through existing VDC participation in finalizing district transport master plans. Communities are being trained by the social mobilizers to acquire skills to run community consultations. Within BGs, the capacities of men and women to voice their concerns are being strengthened.
Business Opportunities
Consulting Services

The Project Coordination Unit will select the central implementation support consultants. Other required consulting services in the districts will be engaged by the District Project Offices in accordance with ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for engaging consultants. Quality and cost-based selection procedures will be used in recruiting the consultants. A consortium of an international firm in association with domestic firms will provide the services. A total of 515 person-months of consultants may be required, consisting of 90 person-months of international and 425 person-months of domestic consultants. Consulting services also required under the Project's piggybacked technical assistance, Capacity Building in Rural Infrastructure Institutions, are listed separately.

ADB has approved advance action for the recruitment of a Project implementation consultant to facilitate the start-up of project implementation.

Procurement Goods, related services, and civil works financed by ADB will be procured following ADB's Guidelines for Procurement. All civil works will be small and widely dispersed, and most will be undertaken by unskilled community labor. The works will be small, with an average value of $10,000 to $15,000 equivalent, and will follow ADB's community participation in procurement guidelines. In isolated instances, small civil works contracts may be required, which will be procured by the district technical office on the basis of local competitive bidding among prequalified contractors in accordance with the Government's procurement procedures acceptable to ADB.
Responsible ADB Officer Govinda P. Gewali
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Dept of Local Infra Devt & Agri RoadsD.b. Tamangdg@dolidar.elink.com.np*
*
Nepal
Timetable
Concept Clearance 08 Mar 2002
Fact Finding 24 Nov 2003 to 10 Dec 2003
MRM 28 Jan 2004
Approval 23 Dec 2004
Last Review Mission -
PDS Creation Date 28 Nov 2006
Last PDS Update 28 Feb 2011

Loan 2092-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
24 Sep 2004 23 Dec 2004 31 Oct 2005 31 Oct 2011 - 26 Jan 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 64.70 Cumulative Contract Awards
ADB 40.00 24 Sep 2004 39.72 0.00 100%
Counterpart 22.10 Cumulative Disbursements
Cofinancing 2.60 24 Sep 2004 39.72 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory
Title Document Type Document Date
Decentralized Rural Infrastructure and Livelihood Project Project Procurement-Related Reviews Apr 2012
Decentralized Rural Infrastructure and Livelihood Project Reports and Recommendations of the President Sep 2004

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Decentralized Rural Infrastructure and Livelihoods Project Environmental Monitoring Reports May 2010
Decentralized Rural Infrastructure and Livelihoods Project Environmental and Social Monitoring Reports Mar 2010
Decentralized Rural Infrastructure and Livelihoods Project Initial Environmental Examination Jul 2008
Decentralized Rural Infrastructure and Livelihoods Project Initial Environmental Examination Jul 2008
Decentralized Rural Infrastructure and Livelihoods Project Initial Environmental Examination Jul 2008
Decentralized Rural Infrastructure and Livelihoods Project Initial Environmental Examination May 2008
Decentralized Rural Infrastructure and Livelihoods Project Initial Environmental Examination May 2008
Decentralized Rural Infrastructure and Livelihoods Project Initial Environmental Examination Mar 2008
Decentralized Rural Infrastructure and Livelihoods Project Initial Environmental Examination Jan 2008
Decentralized Rural Infrastructure and Livelihoods Project Initial Environmental Examination Dec 2007
Decentralized Rural Infrastructure and Livelihoods Project Initial Environmental Examination Sep 2007
Decentralized Rural Infrastructure and Livelihoods: Baglung-Ghodabadhe Road Sub-project Initial Environmental Examination Jul 2007
Initial Environmental Examination (IEE) of Beni-Darbang Road Sub-project Initial Environmental Examination Jul 2007
Initial Environmental Examination (IEE) of Beni-Darbang Road Sub-project Initial Environmental Examination Jul 2007
Decentralized Rural Infrastructure and Livelihoods: Vopur-Rupatola Road Section of Chainpur-Kanda Road Sub-project Initial Environmental Examination May 2007
Decentralized Rural Infrastructure and Livelihoods Project Initial Environmental Examination Dec 2006
Decentralized Rural Infrastructure and Livelihoods Project: Environmental Assessment and Review Procedure Environmental Assessment and Measures Jun 2005
Decentralized Rural Infrastructure and Livelihoods Project: Summary Initial Environment Examination Initial Environmental Examination Sep 2004

Evaluation Documents

See also: Independent Evaluation

No documents found.


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