Nepal: South Asia Subregional Economic Cooperation Road Connectivity Project

Sovereign Project | 38350-013

Summary

ADB and the Government of Nepal are working together to improve some of the most important roads in the country to help people and freight move more easily, and to increase trade with neighboring countries. The South Asia Subregional Economic Cooperation Road Connectivity Project is building alternative routes between the districts of Sunsari and Saptari to create year-round passable conditions along the East West Highway, especially across the Koshi River. This will include the repair of feeder roads that connect nearby villages to the highway, and improve people's access to government services and livelihood opportunities. The project, which is providing jobs for unskilled workers in the area, particularly women seeking employment, is upgrading 73 kilometers of bypass and border roads along the East-West Highway to two lanes, and improving 114 kilometers of another strategic roadway. The project is also providing training for people in the area to protect the environment and encourage tourism.

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Project Name South Asia Subregional Economic Cooperation Road Connectivity Project
Project Number 38350-013
Country Nepal
Project Status Approved
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 3012-NEP: South Asia Subregional Economic Cooperation Road Connectivity Project
Asian Development Fund US$ 75.00 million
TA 8413-NEP: Capacity Strengthening for Sustainable Road Transport
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Governance and capacity development
Sector / Subsector Transport - Road transport (non-urban)
Gender Equity and Mainstreaming Effective gender mainstreaming
Description ADB and the Government of Nepal are working together to improve some of the most important roads in the country to help people and freight move more easily, and to increase trade with neighboring countries. The South Asia Subregional Economic Cooperation Road Connectivity Project is building alternative routes between the districts of Sunsari and Saptari to create year-round passable conditions along the East West Highway, especially across the Koshi River. This will include the repair of feeder roads that connect nearby villages to the highway, and improve people's access to government services and livelihood opportunities. The project, which is providing jobs for unskilled workers in the area, particularly women seeking employment, is upgrading 73 kilometers of bypass and border roads along the East-West Highway to two lanes, and improving 114 kilometers of another strategic roadway. The project is also providing training for people in the area to protect the environment and encourage tourism.
Project Rationale and Linkage to Country/Regional Strategy Landlocked and mountainous, Nepal relies on its road system as the life blood of its economy. Almost 90 percent of freight and passengers are moved by road and most of that traffic traverses a core strategic road network of about 15,000 kilometers of interlocking highways and feeder roads. Only about a third of these key roads are paved. These main roads not only move people and freight around the country but they are vital for trade with Nepal''s economically vibrant neighbors, including India. The about 1,000 kilometer East-West Highway is one of the most important and heavily used roads in the country, but flooding and landslides sometimes require it to close. This forces travelers to take slower, less efficient alternative routs.
Impact Enhanced local and regional connectivity
Project Outcome
Description of Outcome Improved road transport system in Nepal
Progress Toward Outcome

Civil works on the following project roads are ongoing:

(i) EWH-Koshi Bridge-EWH Road

(ii) Leguwaghat-Bhojpur Road

(iii) Halesi-Diktel Road (km 40+0000 to km 52+000)

(iv) Halesi-Diktel Road (km 52+000 to km 64+000)

(v) Halesi-Diktel Road (km 64+000 to km 75+431)

(vi) Mechipul-Birtamod Road

(vii) Manthali-Ramechap Road

Implementation Progress
Description of Project Outputs

1. Roads upgraded to all-weather standard with community participation

2. Improved capacity of MPIT in road maintenance and asset management and capacity of DOR in delivering GESI results.

Status of Implementation Progress (Outputs, Activities, and Issues) NCB civil works contracts have been awarded in May 2014; contractors commenced work in June 2014. Personnel and machines have been mobilized; maintenance and survey works are ongoing. ICB civil works contracts have been awarded in October 2014 and commenced work in November 2014. Physical progress of the 2 ICB packages is on track. Construction Supervision Consultant contract has been awarded and was mobilized in July 2014.
Geographical Location
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples A
Summary of Environmental and Social Aspects
Environmental Aspects The DOR Project Directorate will have an environmental focal person to coordinate and oversee proper implementation of environment safeguards in the project. Technical support will be provided by the Geo-Environment and Social Unit (GESU) that is responsible for implementing and monitoring social and environment safeguards for all DOR projects. GESU has received capacity building assistance from various international agencies including the ADB and hence, is well experienced. The Construction Supervisions Consultant's team will include an Environmental Expert that will supervise and guide proper implementation of the EMP by the contractor. Biodiversity enhancement activities for the EWH Koshi (Chatara) Bridge EWH will be implemented by a local NGO in close collaboration with the local Forestry department, and the Department of National Parks and Wildlife Conservation. A training and coordination workshop will be conducted before project implementation to clarify roles and responsibilities of all project stakeholders. Semi-annual environmental monitoring reports for all the project roads will be prepared for disclosure on the ADB website in compliance with the ADB SPS 2009.
Involuntary Resettlement The Project will cause significant land acquisition and resettlement impacts. The combined involuntary resettlement and indigenous people plans outline the compensation entitlements and these have been endorsed by the EA and adequate budget will be allocated. Meaningful consultation and information disclosure were undertaken with (i) project-displaced persons, (ii) IP households in the project influence area and their leaders and (iii) the general public through the ADB website. If any changes or additional land requirements or involuntary resettlement impacts are identified, a new or updated resettlement plan will be prepared or modified according to the applicable laws referred to in the resettlement plan. ADB's approval will be obtained before further implementation of the relevant section of the project roads. The DOR Project Directorate will have a resettlement and safeguards focal person to coordinate and oversee proper implementation of combined indigenous peoples plan and resettlement plans. Technical support will be provided by GESU. The CSC team will include a Resettlement Expert that will guide and supervise implementation of the combined IPP and RPs. DOR will submit the monitoring reports to ADB on semiannual basis.
Indigenous Peoples The Government has declared 59 groups as indigenous peoples, or the janjatis , constituting about 37.2% of Nepal's population. Meaningful consultations with the concerned indigenous groups and their leaders were conducted in the project influence area as part of the social impact assessment and the census survey in an atmosphere free of coercion and in a culturally sensitive manner. This was to ensure a comprehensive perspective on the Project and its impacts, and to ascertain community response to the Project, their needs and demands from the Project, an estimate of losses that they would suffer, and steps to mitigate those losses. This is to ensure that indigenous peoples will not be affected more than the rest of the population and will have culturally appropriate benefits from the socioeconomic opportunities created by the Project. The project will not have adverse impacts on the identity, culture and customary livelihoods of the indigenous people.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Procurement The government has promulgated the Public Procurement Act (2007) and Public Procurement Regulations (2007), both of which are generally acceptable to ADB and encompass best international procurement practices. The Public Procurement Monitoring Office has been assigned as the national procurement oversight body under the Office of the Prime Minister and Council of Ministers. The government will publish information on the project on the DOR's website, including business opportunities associated with the project, and information on procurement of goods, works, and consulting services. E-submission of bids which has substantially increased transparency and fairness in bidding competition of in the previous ADB road project will be adopted.
Responsible ADB Officer Lee Ming Tai
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Ministry of Physical Infrastructure and TransportHPSHARMA@MELAMCHIWATER.ORGSingha Durbar
Kathmandu
Nepal
Timetable
Concept Clearance 05 Dec 2011
Fact Finding 15 Jan 2013 to 15 Feb 2013
MRM 13 Mar 2013
Approval 30 Jul 2013
Last Review Mission -
Last PDS Update 23 Mar 2015

Loan 3012-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Jul 2013 20 Oct 2013 31 Jan 2014 30 Jun 2019 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 97.00 Cumulative Contract Awards
ADB 75.00 30 Jul 2013 36.57 0.00 66%
Counterpart 22.00 Cumulative Disbursements
Cofinancing 0.00 30 Jul 2013 13.72 0.00 25%

TA 8413-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Jul 2013 01 Oct 2013 01 Oct 2013 30 Jun 2015 30 Jun 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
500,000.00 0.00 0.00 0.00 0.00 0.00 500,000.00 30 Jul 2013 6,332.36

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
SASEC Road Connectivity Project: Manthali-Ramechhap Subproject Initial Environmental Examination Feb 2013
SASEC Road Connectivity Project: Halesi–Diktel Subproject Initial Environmental Examination Feb 2013
SASEC Road Connectivity Project: Leguwaghat-Bhojpur Subproject Initial Environmental Examination Feb 2013
SASEC Road Connectivity Project: Mechipul-Chandraghadi-Birtamod Subproject Initial Environmental Examination Feb 2013
SASEC Road Connectivity Project: Leguwaghat-Bhojpur Road Safeguards Due Diligence Reports Dec 2012
SASEC Road Connectivity Project: East-West Highway - Koshi Bridge - East-West Highway Subproject Combined Resettlement Plan and Indigenous Peoples Plans Dec 2012
SASEC Road Connectivity Project: Mechipul-Birtamod Subproject Safeguards Due Diligence Reports Dec 2012
Strategic Road Improvement Project: East-West Highway (Nadaha) – Koshi Bridge (Chatara) – East West Highway Environmental Impact Assessments Nov 2012
SASEC Road Connectivity Project: Halesi-Diktel Road Combined Resettlement Plan and Indigenous Peoples Plans Aug 2012
SASEC Road Connectivity Project: Manthali-Ramechhap Road Combined Resettlement Plan and Indigenous Peoples Plans Aug 2012

Evaluation Documents

See also: Independent Evaluation

No documents found.


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