Nepal: Subregional Transport Facilitation (NEP)

Sovereign Project | 37027-013

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Project Name Subregional Transport Facilitation (NEP)
Project Number 37027-013
Country Nepal
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2097-NEP: Subregional Transport Facilitation (NEP)
Asian Development Fund US$ 20.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector Transport - Road transport (non-urban)
Gender Equity and Mainstreaming Some gender elements
Description The principal objective of the Project is to reduce transportation costs associated with Nepal's imports and exports, and to improve the efficiency and organization of transit trade documentation and data exchange. It also aims at promoting sub-regional economic cooperation through improved trade facilities and transit logistics under the SASEC Program.
Project Rationale and Linkage to Country/Regional Strategy

Transit logistics and trade facilities play a critical role for economic development and cooperation for Nepal as well as the SASEC subregion. To achieve economic development through international trade, physical and procedural obstacles hindering the competitiveness of export industries need to be reduced to the largest extent possible to reduce major barriers to foreign markets; promote a greater integration of developing countries in the global economic and attract foreign direct investment to least developed countries. Nepalese tradeable goods face one of the highest transport costs in the region, impeding the country's ability to improve competitiveness of its export goods and expand foreign trade. To improve reliability of delivery of goods and reduce transport cost, it is necessary to have rationalized transit agreements, improved border roads, transit practice and facilities, simplified and modernized customs clearance procedures and documentations, and modern data exchange system. Consistent with ADB's policies and HMGN's 10th Five-year Plan, the project is part of international efforts to help Nepal to improve transit logistics and trade facilitation that can be implemented in the country and yet it will have a big impact on trade and transit transport development between Nepal and other countries within SASEC to promote economic growth and poverty reduction.

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, investment and private sector cooperation and information and communication technology. The Transport Working Group under the SASEC program identified six major subregional transport corridors, two involving Nepal, that need to remove institutional and physical impediments (choke points) to enhance subregional transport connectivity and economic integration.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Birgunj, Bhairahawa, Kakarbhitta
Safeguard Categories
Environment A
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services About 37 person-months of international consultants and 301 person-months of domestic consultants will be required to assist the executing agency in (i) institutional capacity building with documents preparation and specification recommendation with respect to equipment for institutional capacity building component, and training on automation or cargo clearance improvement component; (ii) detailed design, bid preparation, procurement and construction supervision, and contract administration for two access roads and ICD, (iii) study and recommendation of toll level and collection methodology, and (iv) assisting the executing agency in monitoring and verifying resettlement action plans, environment management plans, HIV/AIDS and human trafficking program. Consulting firm will be recruited using ADB's quality- and cost-based selection procedure in accordance with ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB on the engagement of domestic consultants.
Procurement All civil works contract packages will be procured in accordance with ADB's Guidelines for Procurement following international competitive bidding procedures. Equipment for international shopping will be accepted for supply contracts valued at less than $500,000, and direct purchase will be applied for small or off-the-shelf items valued at less than $100,000.
Responsible ADB Officer Amulya Shrestha
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Ministry of Physical Infrastructure and TransportMr. Purna. P. Kadariyainfo@moppw.gov.npKathmandu, Nepal
Timetable
Concept Clearance 07 Mar 2004
Fact Finding 24 May 2004 to 04 Jun 2004
MRM 03 Aug 2004
Approval 04 Nov 2004
Last Review Mission -
PDS Creation Date 17 Nov 2006
Last PDS Update 28 Jul 2010

Loan 2097-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Nov 2004 19 Jan 2005 10 May 2005 01 Jul 2010 - 21 Sep 2010
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 26.70 Cumulative Contract Awards
ADB 20.00 04 Nov 2004 17.54 0.00 100%
Counterpart 6.70 Cumulative Disbursements
Cofinancing 0.00 04 Nov 2004 17.54 0.00 100%
Title Document Type Document Date
Subregional Transport Facilitation Project Project/Program Completion Reports Dec 2011
Subregional Transport Facilitation Project Reports and Recommendations of the President Oct 2004

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Nepal: Subregional Transport Facilitation Project Validations of Project Completion Reports Dec 2012

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