Nepal: Secondary Towns Integrated Urban Environmental Improvement Project

Sovereign Project | 36188-023 Status: Approved

Summary

The objective of the project is to develop reliable, affordable, and effective municipal infrastructure and to strengthening the capacity of municipalities and the central government for project management and operation. The project area is Biratnagar, Birgunj, Butwal municipalities and Kavre Valley (Panauti, Dhulikhel and Banepa municipalities). The project was approved in 6 July 2010 and the planned project closing date is 30 June 2016.

Latest Project Documents

Consulting Notices See also: CMS

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Procurement Documents


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Project Name Secondary Towns Integrated Urban Environmental Improvement Project
Project Number 36188-023
Country Nepal
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2650-NEP: Secondary Towns Integrated Urban Environmental Improvement Project
Asian Development Fund US$ 60.00 million
Loan 8249-NEP: Secondary Towns Integrated Urban Environmental Improvement Project
OPEC Fund for International Development US$ 17.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Transport - Urban roads and traffic management

Water and other urban infrastructure and services - Other urban services - Urban policy, institutional and capacity development - Urban sewerage - Urban solid waste management - Urban water supply

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The objective of the project is to develop reliable, affordable, and effective municipal infrastructure and to strengthening the capacity of municipalities and the central government for project management and operation. The project area is Biratnagar, Birgunj, Butwal municipalities and Kavre Valley (Panauti, Dhulikhel and Banepa municipalities). The project was approved in 6 July 2010 and the planned project closing date is 30 June 2016.
Project Rationale and Linkage to Country/Regional Strategy

The National Urban Policy adopted by the government in 2007 gives priority to (i) achieving a balanced national urban structure6 by directing infrastructure development and investment; (ii) improving the quality of urban life by building a clean, safe, and well-developed urban environment; and (iii) setting up effective urban management by empowering capable local institutions. The 3-year interim plan (FY2008 FY2010) under the policy looks forward to government investments in urban infrastructure and other services, and to local institutions empowered and strengthened to build a clean, safe, and prosperous urban environment. While

productivity in the urban areas is higher and poverty substantially lower, infrastructure development and service delivery have fallen behind in those areas. Public investments have not kept pace with the growth of the urban population, swelled by internal conflicts and the dearth of economic and employment opportunities in the countryside.

Urban environmental conditions, already deteriorating, have worsened: inaccessible and poor-quality drinking water and sanitation facilities, uncollected or improperly dumped waste, water pollution from untreated domestic and industrial wastewater, and waterlogging. Moreover, urban services outside the Kathmandu valley are scarce. As a result, premature death, disease, and associated economic burdens disproportionately affect the poor and the vulnerable. Poor health saps economic growth by reducing labor productivity and holding back educational attainment.

Further development in the Kathmandu valley has its physical limits. New urban centers will inevitably emerge. But the urban environment in the urban centers urgently needs improvement to make up the lag in economic development in towns outside the valley and promote social and economic development in the regions of Nepal. The municipalities of Biratnagar, Birgunj, and Butwal were selected for the project on the basis of (i) economic growth potential, (ii) demand for urban services, and (iii) urban management capacity. Each town is the main urban center of an industrial corridor and of importance in external trade.

The project is in line with ADB's Nepal country partnership strategy. The project focuses on a small number of physically integrated components (drainage, sewerage and road improvement, and solid waste management in the same area); is confined to a few larger municipalities with relatively higher technical and financial capacity to implement the project and create visible impact; and provides capacity development support before project implementation.

Impact Improved quality of life and higher and more socially inclusive economic growth in key regional centers in Nepal.

Project Outcome

Description of Outcome Improved and affordable municipal services delivered effectively, efficiently, and reliably by accountable project municipalities.
Progress Toward Outcome Construction works for drainage and sewer with waste water (WWTP) treatment plant; and urban roads and lanes improvement works are going on in Biratnagar and Birgunj. Water supply system expansion works in Butwal and Kavre valley are also progressing. Contracts for integrated solid waste management (ISWM) packages (Birgunj and Butwal) have been awarded; in case of Butwal ISWM contractor has been mobilized to the site. For ISWM It is likely that the project will achieve its outcome to provide improved and affordable municipal services delivered effectively, efficiently, and reliably by accountable project municipalities.
Implementation Progress
Description of Project Outputs

1. Reliable, affordable and effective municipal infrastructure developed

1.1 Drainage and sewerage systems improved (Biratnagar, Birgunj)

1.2 Urban roads and lanes improved (Biratnagar, Birgunj)

1.3 Solid waste management systems improved (Birgunj, Butwal)

1.4 Water supply systems expanded (Kavre Valley, Butwal)

1.5 Other urban infrastructure facilities improved (Butwal)

1.6 Community development program undertaken, including health and hygiene education , 3R (reduce, reuse, and recycle) promotion, skills, training and investment in small-scale community facilities

2. Capacity of the municipalities and the central government strengthened for project management and operation

2.1 Municipalities strengthened in terms of financial, technical and institutional capacity

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

Output activities

1.1 Drainage and sewerage systems improved

Biratnagar 30.1 km drain, 15.98 km sewer completed, WWTP in progress

Birgunj 18.5 km drain, 3 km sewer completed, WWTP in progress

1.2 Urban roads and lanes improved

Biratnagar 100 m sub-base completed

Birgunj 8.3 km embankment, 2.54 km sub-base completed

1.3 Solid waste systems improved

Birgunj contract awarded on 12 January 2016

Butwal - contract awarded on 28 December 2014, slow progress

1.4 Water supply systems expanded

Butwal 3 deep tube wells completed, RVT construction ongoing

Kavre valley 140 km pipe line, 58 km leakage test completed, WTP ongoing, DI pipes fully delivered

1.5 Other urban infrastructure facilities improved

Butwal Bid evaluation of auto village improvement contract is ongoing

1.6 Community Development Program (CDP)

Biratnagar awareness on project information - in 130 TLOs, Health Hygiene education- 10,996 person (Male-7326, Female-3670), 3R in 7 clusters, skills training -232 person (Male-89, Female-143), HH toilet -485, hand pump -10, public toilet -3 completed, 1 mobile toilet has been purchased. 44 users committees formed with total 401 members (F- 164, M- 237)

Birgunj - awareness on project information - in 28 TLOs, Health Hygiene education- 3,290 person (Male-1747, Female-1543), 3R in 9 clusters, skills training -566 person (Male-143, Female-423), HH toilet -103, hand pump -25, public toilet -0 completed. 13 users committees formed with total 264 members (F- 127, M- 137)

Butwal - awareness on project information - in 16 TLOs, Health Hygiene education- 851 person (Male-430, Female-421), 3R in 14 clusters, skills training -185 person (Male-47, Female-138), HH toilet -stopped, hand pump -0, public toilet -1 no., 2.16 km drain completed, 900 compost bin distributed. 16 users committees formed with total 174 members (F- 80, M- 94)

2.1 Municipalities strengthened in terms of financial, technical and institutional capacity

It is too early to assess. However, Butwal was declared the best performer municipality in Nepali FY 2071/71 by MoFALD. No other municipalities except Birgunj have reported loss in revenue generation in 2015. PIUs are established and are supporting the project municipalities to carry out project implementation, and provide technical support. Birgunj and Butwal have initiated to carry out the CDP activities on their own without the support from NGOs. Social development officers are deputed to all 4 municipalities. PMCS and DSCs are supporting the municipalities for capacity development activities.

Geographical Location Biratnagar, Birgunj, Butwal and Kavre valley (Banepa, Dhulikhel, and Panauti) municipalities

Safeguard Categories

Environment B
Involuntary Resettlement B
Indigenous Peoples B

Summary of Environmental and Social Aspects

Environmental Aspects

The implementing agencies had done environmental examinations, including environmental management plans, (EMPs), for the subprojects during the feasibility study. An environmental assessment and review framework was therefore also prepared. The framework sets out the requirements for project screening and classification, subproject selection, information disclosure to and consultation with the affected people, environmental assessment, EMP development and implementation, and monitoring and reporting.

The EIA/IEE of the subprojects has been prepared as per the requirement of the Government and ADB's Environment Safeguard Policy. Project implementation is being done in line with the respective Environment Management Plan (EMP) of the Project.

The initial environmental examinations found the planned subprojects to have only small and localized adverse impact on the environment, which can be mitigated with the mitigation measures proposed in the EMPs. On the other hand, the improvements in drainage and sewerage systems, solid waste management systems and community development programs will have significant positive impact on community hygiene and overall environmental sanitation situation.

Project Implementaion Units (PIUs) have updated IEE/ EIA of the sub-projects based on the final engineering design. PIUs have been complying and will comply with the EMPs of the respective subprojects while implementing the projects. Project coordination Office (PCO) has been monitoring safeguard compliance by each PIU in accordance with approved EMPs and is repoting its implementation status in its quartely as well as semi annual environmental safeguard monitoing report to ADB.

Involuntary Resettlement

Several subprojects involve land acquisition and involuntary resettlement, but the involuntary resettlement impact is not considered significant. Draft resettlement plans have been prepared for these subprojects in compliance with the government's and ADB's policy requirements. A resettlement framework has also been prepared.

The PIUs have updated/ have been updating the resettlement plan in coordination with PCO, during detailed design and also on need basis during implementation of the civil works packages (subprojects), they are implementing the final resettlement plan (RP) during the Project implementation. PCO is monitoring compliance to the RPs by the PIUs and is also reporting the compliance status to ADB through quartely progress reports and semi annual social safeguard monitoring report.

Indigenous Peoples

Considering the nature and scale of these subprojects, the impact on indigenous peoples will be limited to a few involuntary resettlement and land acquisition cases. Accordingly combined RP and Indigeneous People's Plan has been prepared for Kavre Valley Water Supply Sub Project. The resettlement plan includes an indigenous peoples plan, and the resettlement framework includes an indigenous peoples planning framework, with special assistance measures for indigenous people and other vulnerable groups. The Project implementation units in the respective municipalities will implement the subprojects in compliance with the prepared RPs.

As sanitation services improve, so will the health benefits for indigenous people. In addition, the gender equality and social inclusion plan contains specific actions favorable to indigenous people. The community development program has also been ongoing in the selected poverty clusters of Biratnagar, Birgunj and Butwal Municipalities to adreess the capacity building needs and small scale infrastructure need of marginalised and vunerable people of the project area.

Stakeholder Communication, Participation, and Consultation
During Project Design Key stakeholders (government departments, non government organizations, development partners, etc.) joined central-level workshops held to discuss the project design during the project preparatory TA. A gender equality and social inclusion (GESI) action plan was developed to ensure the effective participation of stakeholders in the project. In the three project municipalities (Biratnagar, Birgunj, and Butwal), group discussions and workshops were organized to solicit the views of potential beneficiaries of the project, including vulnerable groups such as women, dalits, and indigenous people. Strong support for the project was confirmed at these workshops, and the design of the subprojects reflects the suggestions and comments made.
During Project Implementation

During Project Implementation concerned stakeholders at the central and the municipal level were consulted as needed regarding the Project progress, underlying issues and to develop way forward. Stakeholder's consultation is often found effective to finalize the subprojects, environment and safeguard related issues. In case of community development program (CDP) as well, the project level activities are being developed and implemented in consultation with beneficiaries at site and stakeholders at the municipal level.

Consultation meetings were held, during the recent mission, at Kavre valley and auto village site Butwal. Issue on the ownership of auto village land was observed. PCO is requested to conduct due diligence on land ownership and resolve the issue. In Bhumidanda Kavre, there was a public demand for water supply and irrigation schemes (est. cost $60,000) as a compensatory measure for water diversion. Mission advised the PCO to implement, through water/irrigation users committees, the water and irrigation schemes from the EMP budget.

Business Opportunities

Consulting Services

An estimated 1,585 person-months (86 international, 1,499 national) of consulting services will be provided to (i) facilitate project management and implementation including overall monitoring and evaluation at the central level; (ii) carry out detailed design and construction supervision for individual subprojects, including monitoring for safeguards compliance; and (iii) provide institutional development support for the establishment and operationalization of the Kavre Water Supply Management Board (or its equivalent).

An estimated 831 person-months (all national) of local NGO services will be provided to assist the implementation of the community development program. Consulting firms and local NGOs will be engaged using the quality- and cost-based selection (QCBS) method with a standard quality:cost ratio of 80:20. Selection criteria for local NGOs will include (i) experience relevant to the project activities and objectives, (ii) experiences in the district. where the Project municipalities are located, (iii) financial integrity, and (iv) record of proven competence in community mobilization and public health sensitization programs.

A separate design and supervision consultant (DSC) services for each project municipality was procured. Extension of time was approved for the DSC services for Butwal, Biratnagar and Birgunj. Variations for the DSC services were approved for Birgunj and Kavre. Similar variations for Butwal and Biratnagar are being submitted within March 2016.

NGO service for Biratnagar has been extended. Whereas, the NGO contract for Birgunj and Butwal were terminated. Butwal and Birgunj municipalities have initiated to continue the CDP activities through their social development sections with technical support from social development expert of DSC and PMSC.

Procurement

International competitive bidding procedures will be used for civil works contracts estimated to cost more than $1 million, and supply contracts valued at more than $500,000. National competitive bidding procedures will be used for civil works contracts equivalent to $1,000,000 or less, and supply contracts equivalent to $500,000 or less. Shopping will be used for contracts for procurement of works and equipment worth equivalent to $100,000 or less.

Out of 7 planned contract packages, 5 packages had already been awarded and construction works were in progress. Birgunj solid waste management contract package was recently awarded on 12 January 2016; contractor has mobilized. Butwal auto village contract package remained outstanding. The price bid evaluation for auto village contract is still under process.

Responsible Staff

Responsible ADB Officer Mohan Karkee
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Ministry of Physical Infrastructure and Transport
HPSHARMA@MELAMCHIWATER.ORG
Singha Durbar
Kathmandu
Nepal

Timetable

Concept Clearance 12 Mar 2010
Fact Finding 15 Mar 2010 to 26 Mar 2010
MRM 19 Aug 2010
Approval 06 Jul 2010
Last Review Mission -
PDS Creation Date 19 Jul 2010
Last PDS Update 07 Mar 2016

Loan 2650-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
06 Jul 2010 26 Oct 2010 18 Jan 2011 30 Jun 2016 31 Dec 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 89.33 Cumulative Contract Awards
ADB 60.00 06 Jul 2010 46.21 0.00 79%
Counterpart 29.33 Cumulative Disbursements
Cofinancing 0.00 06 Jul 2010 23.93 0.00 41%

Loan 8249-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
18 Jun 2010 26 Nov 2010 25 Jan 2011 15 Dec 2015 31 Dec 2017 -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 17.00 Cumulative Contract Awards
ADB 0.00 18 Jun 2010 0.00 14.00 82%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 17.00 18 Jun 2010 0.00 6.05 36%

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Secondary Towns Integrated Urban Environmental Improvement Project: Social Monitoring Report (January-December 2015) Social Monitoring Reports Jan 2016
Secondary Towns Integrated Urban Environmental Improvement Project: Semiannual Environmental Monitoring Report (July-December 2015) Environmental Monitoring Reports Dec 2015
Secondary Towns Integrated Urban Environmental Improvement Project: Semiannual Environmental Monitoring Report (January-June 2015) Environmental Monitoring Reports Jul 2015
Secondary Town Integrated Urban Environmental Improvement Project: Kavre Valley Integrated Water Supply Scheme Initial Environmental Examination Dec 2014
Secondary Towns Integrated Urban Environmental Improvement Project - Birgunj Sanitary Landfills Development: Environmental Impact Assessment Environmental Impact Assessments Nov 2014
Secondary Town Integrated Urban Environmental Improvement Project - Integrated Solid Waste Management Subproject, Butwal Municipality: Initial Environmental Examination Initial Environmental Examination Sep 2014
Secondary Towns Integrated Urban Environmental Improvement Project: Environmental Monitoring Report (August 2014) Environmental Monitoring Reports Aug 2014
STIUEIP - Biratnagar/Birgunj/Butwal/Kavre Valley: Social Monitoring Report (July 2014) Social Monitoring Reports Jul 2014
STIUEIP Biratnagar - Sewer and Drainage Network Waste Water Treatment Plant Subproject & Urban Road and Lanes Improvement Subproject: Updated Resettlement Plan Resettlement Plans Jul 2014
STIUEIP - Kavre Valley Integrated Water Supply Subproject: Updated Combined Resettlement Plan and Indigenous Peoples Plan Combined Resettlement Plan and Indigenous Peoples Plans May 2014
STIUEIP - Biratnagar/Birgunj/Butwal/Kavre Valley: Social Monitoring Report (January 2014) Social Monitoring Reports Jan 2014
STIUEIP Birgunj - Sewer and Drainage Networks, Urban Road, and Lanes Improvement Subproject & Integrated Solid Waste Management Subproject: Updated Resettlement Plan Resettlement Plans Nov 2013
Secondary Towns Integrated Urban Environmental Improvement Project: Butwal Water Supply Subproject Initial Environmental Examination Nov 2013
Secondary Towns Integrated Urban Environmental Improvement Project: Birgunj Sewerage and Drainage Network, Waste Water Treatment Plant, and Road and Lanes Improvement Subproject Initial Environmental Examination Aug 2013
Secondary Towns Integrated Urban Environmental Improvement Project: Biratnagar Sewerage and Drainage Network, Waste Water Treatment Plant, and Road and Lanes Improvement Subproject Initial Environmental Examination Apr 2013
Secondary Towns Integrated Urban Environmental Improvement Project: Kavre Valley Integrated Water Supply Environmental Impact Assessments Jan 2013
Secondary Towns Integrated Urban Environmental Improvement Project - Butwal Water Supply Subproject: Due Diligence Report Safeguards Due Diligence Reports Jan 2013
Secondary Towns Integrated Urban Environmental Improvement Project: Initial Environmental Examination for Kavre Valley Initial Environmental Examination Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project: Combined Resettlement Plan and Indigenous People's Plan for Birgunj Municipality Combined Resettlement Plan and Indigenous Peoples Plans Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project Environmental Assessment and Review Framework Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project: Resettlement Framework and Indigenous People's Planning Framework Combined Resettlement Framework and Indigenous Peoples Planning Frameworks Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project - Birgunj Municipality: Combined Resettlement Plan and Indigenous People's Plan Combined Resettlement Plan and Indigenous Peoples Plans Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project: Initial Environmental Examination - Biratnagar Subproject Initial Environmental Examination Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project: Resettlement Framework and Indigenous People's Planning Framework Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project: Initial Environmental Examination - Birgunj Subproject Initial Environmental Examination Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project: Resettlement Plan and Indigenous People's Plan for Biratnagar Municipality Combined Resettlement Plan and Indigenous Peoples Plans Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project: Initial Environmental Examination - Butwal Subproject Initial Environmental Examination Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project - Biratnagar Municipality: Resettlement Plan and Indigenous People's Plan Indigenous Peoples Plans/Indigenous Peoples Development Plans Jun 2010
Secondary Towns Integrated Urban Environmental Improvement Project Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks May 2010
Secondary Towns Integrated Urban Environmental Improvement Project Combined Resettlement Framework and Indigenous Peoples Planning Frameworks May 2010
Secondary Towns Integrated Urban Environmental Improvement Project - Resettlement Plan for Kavre Valley Resettlement Plans May 2010
Secondary Towns Integrated Urban Environmental Improvement Project - Combined Resettlement Plan and Indigenous People's Plan for Birgunj Municipality Combined Resettlement Plan and Indigenous Peoples Plans May 2010
Secondary Towns Integrated Urban Environmental Improvement Project: Resettlement Plan for Kavre Valley Resettlement Plans May 2010
Secondary Towns Integrated Urban Environmental Improvement Project - Resettlement Plan and Indigenous People's Plan for Biratnagar Municipality Combined Resettlement Plan and Indigenous Peoples Plans Mar 2010

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


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