Nepal: Decentralized Rural Infrastructure and Livelihood Project - Additional Financing

Sovereign Project | 38426-023

Summary

ADB is helping Nepal improve transport connectivity, infrastructure, and livelihoods in 18 poor hill and mountain districts. The project will also strengthen the decentralized management of rural infrastructure.

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Project Name Decentralized Rural Infrastructure and Livelihood Project - Additional Financing
Project Number 38426-023
Country Nepal
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0267-NEP: Decentralized Rural Infrastructure and Livelihood Project - Additional Financing
Asian Development Fund US$ 7.00 million
Grant: Decentralized Rural Infrastructure and Livelihood Project - Additional Financing
Swiss Grant (Cofinancing) US$ 7.06 million
Loan 2796-NEP: Decentralized Rural Infrastructure and Livelihood Project - Additional Financing
Asian Development Fund US$ 18.00 million
Loan 8257-NEP: Decentralized Rural Infrastructure and Livelihood Project - Additional Financing
OPEC Fund for International Development US$ 20.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector

Transport - Road transport (non-urban)

Gender Equity and Mainstreaming Effective gender mainstreaming
Description

The impact of the project will be reduced rural poverty in 18 poor and remote hill and mountain districts. The project outcome will be widened access to social services and economic opportunities. The project outcome will be achieved through the following outputs:(i) rural livelihood improved; (ii) capacity and decentralized local governance enhanced; (iii) rural transport infrastructure extended and maintained; and (iv) project management improved.

Output 1: Rural Livelihood Improved

The project will improve community infrastructure in the 18 districts. This will include 90 school buildings and health posts, 36 foot/mule/link trails, 54 water supply and irrigation schemes, 10 micro-hydropower, 8 rural market places, 10 ropeways, and other community infrastructure. The project will provide livelihood related skills training to 3,000 beneficiaries from the project impact zones, of which at least 40% are women and 60%, are from poor and excluded groups. In nine pilot districts, the project will work with existing savings and credit groups, and assist BGs willing to form themselves into formal Savings and Credit Cooperatives and facilitate their access to credit from existing institutional suppliers.

Output 2: Capacity and Decentralized Local Governance Enhanced

The project will improve district and national capacity building to promote improved decentralized governance. The thrust will be on establishing the capacity for sustainable management of rural road networks, strengthening the decentralized management of rural infrastructure, and raising central capacity to support local government bodies.

Output 3: Rural Transport Infrastructure Extended and Maintained

The project will improve 260 kilometers (km) of rural roads in the 18 districts (200 km new and 60 km upgrading). Rural roads of 1,200 km will be maintained in the 18 districts and 6,500 meters of trail bridges will be constructed. The implementation of the road sub-projects will employ labor-based equipment-supported methods, and works performed by BGs will be promoted over construction by contractors. Only those civil works that cannot be executed by the communities may be awarded on the basis of local competitive bidding to contractors.

Output 4: Project Management Improved

Technical support to project implementation will be provided through a Central Implementation Support Consultant (CISC) and District Implementation Support Consultant (DISCs) in each of the 18 project districts.

Project Rationale and Linkage to Country/Regional Strategy The road networks are the major modes of transportation in the country because of its widespread mountainous terrain and difficult weather conditions. Pervasive poverty in the hill and mountain districts is linked to the lack of road connectivity, and commensurate high transport costs, which discourage the mobility of people, and movement of goods and services within and outside the regions. The majority of settlements in hilly and mountainous areas are not accessible by motorized vehicles; they are cut off from the road network, and thus face constraints of limited access to food supplies, health and education facilities, and other essential services. In these areas, rural transport is largely based on a trail-based system of foot trails, mule tracks, and trail bridges. Poor road connectivity hampers realizing economic opportunities in the remote and mountainous districts, adversely affecting the country's economic potential.
Impact Reduced rural poverty in 18 very poor remote hill and mountain districts
Project Outcome
Description of Outcome Widened access to social services and economic opportunities
Progress Toward Outcome

(i) average annual income per household has reached to NRs. 141,000 which is higher than targeted annual 10% increment from NRs. 69,500,

(ii) transportation cost for people and goods reduced to NRs 13.17/km per person from NRs 18/km per person and to NRs 248/tons/km from NRs 491/tons/km respectively,

(iii) freight volume has reached to 0.416 tons/capita/year, which is more than targeted annual 20% increment from 0.116 tons/capita/year.

Implementation Progress
Description of Project Outputs

1. Rural livelihood improved

2. Capacity building and decentralized local governance enhanced

3. Rural transport infrastructure extended and maintained

4. Project management improved

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

PCU provided concurrence 115 CIs of which, 55 CIs were completed, reamining are under construction. The identification, selection, survey, design estimate and costing is in progress for addtional 35 CIs.

The male and female are getting equal wages for equal volume of work. The workers are aware of it and monitored by DISC & DPO during payment to BG members.

Training Service Provider (TSP) contracted for cluster I districts is conducting training for 500 traininees. Contract negotion with TSP for cluster II districts for 904 trainee concluded. TSP will be mobilized within April 15. EoI evaluation is in final stage for recruitment of TSP for custer III districts which includes 1014 trainees.

Awareness raising activities, meetings and trainings for VWRCC and BGs members are in progress. 408 events awareness raising and 185 event of consultation meeting in 20 road SPs has conducted in DRILP-AF.

EOI evaluation for recruiting Local NNGO t facililate micro finance activity is in final stage.

12 central and 10 district senior officer (22 nos.) participated in training in Indonesia

Districts has organized exposure visit and 101 members from DRCC and VWRCC were participated, in inter districts exposure visit. Out of total 101 member, female are 8 %.

The subprojects selected for construction are from indicative list in PAM. New roads in Gorkha, Lamjung, Bajhang, Kalikot and Humla are proposed on the basis of districts priority based on DTMP.

DDC, DTO are coordinating with various sectoral line agencies and local people in sub project site during planning and implementation. The information are being disseminated at various forums by DDCs/DTOs/DISC

ADB has conducted Regional procurement training to DTO, DPO account officer and safeguard related training on 10-12 and 13-14 Feb. 014 in Pokhara. PCU also organized trainings to LDO, DTO/DPOs for maintenance and regional stakeholder consultation workshop on Toll collection on 11 Jan 014 in Pokhara. DTO/DPO s are actively involved in DPR preparation and are carrying out bid evaluation.

A total of 29 road subprojects with 385 km. length are under implemention in 17 districts which includes 149 km new construction, 82 km upgrading, and 154 km finishing works. 49.76 km road construction, 11.61 km upgrading and 145.8 km finishing/making pliable of road has completed.

BGs working in Taplejung, Solukhumbu, Okhaldhunga, Ramechhap, Jajarkot, Jumla, Dolpa, Bajhang, Bajura, Baitadi and Darchula districts. 28 NCB & 8 Shop. contracts have been awarded. IFB has been published for 5 NCB packages using esubmission process.

PCU provided concurrence for 173 Trail bridges (10,667 rm.) in 8 districts (Taplejung, Okhaldhung, Ramechhap, Gorkha, Lamjung, Baglung Myagdi, and Baitadi). 108 nos. of TB (6,736 rm.) completed in DRILP-AF. The physical progress of ongoing TB is about 57%.

District road maintenance of 707 km has been carried out (Routine 396 km & Periodic 311 km) (In FY 069/070 - 258 km & in FY 070/71 449 km),

15 districts are revising ARMP for this fiscal year based on revised concept.

CISC, NNGO and DISCs in 8 SDC supported districts in place. The individual consultants (10 SMC) placed, and individual consultant Engineers selected and mobilized in 5 districts, Supporting staff selected and mobilised.

18 nos. of four wheel vehicles and 37 nos. of motorcycles had purchased and supplied to districts. Other equipments are being procured as per the need.

Financial management system established.

Gender desk has established in DOLIDAR.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects The overall project is category B in accordance with ADBs Safeguard Policy Statement (2009). The executing agency and implementing agencies prepared initial environmental examinations, including environmental management plans (EMPs), for the sample subprojects. The environmental assessment and review framework was revised in accordance with ADBs Safeguard Policy Statement. 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 initial environmental examinations found the planned subprojects to have only small and localized adverse impacts on the environment, which can be managed by the mitigation measures proposed in the EMPs.
Involuntary Resettlement Most subprojects involve land acquisition and involuntary resettlement, but the involuntary resettlement impact is not considered significant. The resettlement framework has been revised and updated in compliance with ADBs Safeguard Policy Statement. The resettlement framework includes a due diligence procedure to ensure those donating land will not be impoverished through donation. Any donation will be confirmed through a written record, including a no-coercion clause verified by an independent external party. Land owners not conforming to the donation eligibility criteria will be offered compensation at replacement cost and/or assistance so that they maintain the same or better income and livelihood status. All subprojects will be screened early in the project cycle. If a subproject involves any involuntary resettlement impacts, an appropriate resettlement plan will be prepared based on the detailed design, disclosed to those affected persons, and submitted for ADB approval in accordance with the resettlement framework.
Indigenous Peoples The indigenous peoples planning framework has also been revised in compliance with ADBs Safeguard Policy Statement, with special assistance measures for indigenous peoples and other vulnerable groups. Considering the nature and scale of the subprojects, any negative impact on indigenous peoples is expected to be limited to a few involuntary resettlements and land acquisition cases. In addition, a gender equality and social inclusion plan contains specific actions favorable to indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation The road subprojects are being selected from the priority list of the district transport master plan (DTMP). The DTMP is being prepared through consultative process. During selection of road alignment project beneficiaries are being consulted. Similary, the community infrastructures are selected with wider consultation with beneficiaries. The consulation is being carried out by DPO, DISC and VWRCC in a participatory way. During the preparation of safeguards plans the affected persons and beneficiaries are being consulted.
Business Opportunities
Consulting Services 1 package for CISC, 3 packages for training provider, 1 package for MFI
Procurement NCB (works) - 44 packages, Goods & supply (shopping) 57 packages, works (shopping) - 5 packages, NCB (goods) - 1 package
Responsible ADB Officer Laxmi P. Subedi
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Dept of Local Infra Devt & Agri Roads*
*
Nepal
Timetable
Concept Clearance 09 Aug 2010
Fact Finding 15 Jun 2011 to 30 Jun 2011
MRM 18 Aug 2011
Approval 21 Dec 2011
Last Review Mission -
Last PDS Update 27 Mar 2015

Grant 0267-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Oct 2011 01 Feb 2012 23 Apr 2012 30 Jun 2017 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 28.45 Cumulative Contract Awards
ADB 7.00 31 Oct 2011 1.96 0.00 28%
Counterpart 14.39 Cumulative Disbursements
Cofinancing 7.06 31 Oct 2011 1.76 0.00 25%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - Satisfactory - Satisfactory

Loan 2796-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 Oct 2011 01 Feb 2012 23 Apr 2012 30 Jun 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 18.00 Cumulative Contract Awards
ADB 18.00 31 Oct 2011 7.76 0.00 47%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 31 Oct 2011 6.34 0.00 39%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - Satisfactory - Satisfactory

Loan 8257-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
21 Dec 2011 01 Jun 2012 06 Feb 2013 28 Feb 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 20.00 Cumulative Contract Awards
ADB 0.00 21 Dec 2011 0.00 12.46 62%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 20.00 21 Dec 2011 0.00 5.71 29%

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Environmental Monitoring Report (January-June 2014) Environmental Monitoring Reports Jul 2014
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Sahartara-Lesicape Road Subproject Environment Due Diligence Report Safeguards Due Diligence Reports May 2014
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Lek Kharka-Mukli Branch Road Sub-project, Solukhumbu Safeguards Due Diligence Reports Feb 2014
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Delta-Aatichaur Road Sub-project, Bajura Safeguards Due Diligence Reports Jan 2014
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Beni-Toripani Road Sub-project, Myagdi Safeguards Due Diligence Reports Dec 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing Environment Compliance Audit Reports Dec 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Kalakandalek-Khamel-Kawa Road Sub-project, Mugu Safeguards Due Diligence Reports Nov 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Baglung-Kushmisera Road Sub-project, Baglung Resettlement Planning Documents Oct 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Kalakanda-Khamale-Kawa Road Sub-project, Mugu Indigenous Peoples Planning Documents Oct 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Deltabazar-Aatichaur Road Sub-project, Bajura Indigenous Peoples Planning Documents Oct 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Deltabazar-Aatichaur Road Environment Due Diligence Report Safeguards Due Diligence Reports Oct 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Dangaji-Mahendradhar Road Sub-project, Bajhang Initial Environmental Examination Sep 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Dangaji-Mahendradhar Road Sub-project, Bajhang Indigenous Peoples Planning Documents Sep 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Dangaji-Mahendradhar Road Initial Environmental Examination Initial Environmental Examination Sep 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Rumjatar-Khartekhola Road Sub-project, Okhaldhunga Safeguards Due Diligence Reports Jun 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Baglung-Kushmisera Road Sub-project, Baglung Indigenous Peoples Planning Documents Jun 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Baglung-Kushmisera Road Environment Due Diligence Report Safeguards Due Diligence Reports May 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Kokhe Ahale and Koya Bhanjyang Slope Stabilization Road Sub-project, Gorkha Safeguards Due Diligence Reports Apr 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Garma-Nele-Bogal Road Sub-project, Solukhumbu Safeguards Due Diligence Reports Mar 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Garma-Nele-Bogal Road Sub-project, Solukhumbu Safeguards Due Diligence Reports Mar 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Thalaha-Batule-Aulatari Road Sub-project, Jajarkot Safeguards Due Diligence Reports Mar 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Kudari-Tamti-Topla Road Sub-project, Jumla Safeguards Due Diligence Reports Mar 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Vopur-Rupatola Road Sub-project, Bajhang Indigenous Peoples Planning Documents Mar 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Kudari-Tamti-Topla Road Sub-project, Jumla Indigenous Peoples Planning Documents Mar 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Dhadfedhi-Kunchha-Baguwa-Duipiple Road Sub-project, Lamjung Safeguards Due Diligence Reports Mar 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Dhadfedhi-Kunchha-Baguwa-Duipiple Road Sub-project, Lamjung Indigenous Peoples Planning Documents Mar 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Vopur-Rupatola Road Sub-project, Bajhang Resettlement Planning Documents Mar 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Kudari-Tamti-Topla Road Environment Due Diligence Report Safeguards Due Diligence Reports Mar 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Sundarbazaar-Kunchha-Duipipale Road Environment Due Diligence Report Safeguards Due Diligence Reports Mar 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Vopur-Rupatola Road Environment Due Diligence Report Safeguards Due Diligence Reports Mar 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Pakarbas-Galba Road Sub-project, Ramechhap Safeguards Due Diligence Reports Feb 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Pakarbas-Galba Road Sub-project, Ramechhap Initial Environmental Examination Feb 2013
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Lekakharka-Mukli Road Subproject, Solukhumbu Initial Environmental Examination Dec 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Dangaji-Mahendradhar Road Sub-project, Bajhang Resettlement Planning Documents Dec 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Thalaha-Batule-Aulatari Road Sub-project, Jajarkot Initial Environmental Examination Oct 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Garma-Nele-Budhidanda Road Environment Due Diligence Report Safeguards Due Diligence Reports Oct 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Bitule-Latinath-Paribagar Road Sub-project, Darchula Indigenous Peoples Planning Documents Sep 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Rumjatar-Kharte Khola Road Sub-project, Okhaldhunga Indigenous Peoples Planning Documents Sep 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Khar-Khalanga Road Sub-project, Darchula Indigenous Peoples Planning Documents Aug 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Shreebhavar-Kotila Road Sub-project, Baitadi Resettlement Planning Documents Aug 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Khar-Khalanga Road Sub-project, Darchula Safeguards Due Diligence Reports Aug 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Shreebhabar-Kotila Road Sub-project, Baitadi Indigenous Peoples Planning Documents Jul 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Martadi-Majhigoan Road Sub-project, Bajura Safeguards Due Diligence Reports Jul 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Gupha-Sanghu Road Sub-project, Taplejung Indigenous Peoples Planning Documents Jul 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Shreebhavar-Kotila Road Environment Due Diligence Report Safeguards Due Diligence Reports Jul 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Salena-Melauli Road Sub-project, Baitadi Resettlement Planning Documents Jun 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Ghupa-Sanghu Road Sub-project, Taplejung Safeguards Due Diligence Reports Jun 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Bitule-Latinath-Paribagar Road Sub-project, Darchula Safeguards Due Diligence Reports Jun 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Salena Melauli Road Sub-project, Baitadi Indigenous Peoples Planning Documents Jun 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Martadi-Majhigaun Road Sub-project, Bajura Indigenous Peoples Planning Documents Jun 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Salena-Melauli Road Environment Due Diligence Report Safeguards Due Diligence Reports Jun 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Barbis-Delta Bazaar Road Sub-project, Bajura Resettlement Planning Documents May 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Barabis-Delta Bazar Road Sub-project, Bajura Indigenous Peoples Planning Documents May 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Pakarbas-Galpa Road Sub-project, Ramechhap Indigenous Peoples Planning Documents Feb 2012
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Environmental Assessment and Review Framework (as of Board approval) Environmental Assessment and Review Framework Aug 2011
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Initial Environmental Examination (as of Board approval) Environmental Assessment and Measures Aug 2011
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Resettlement Framework (as of Board approval) Resettlement Planning Documents Aug 2011
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Jul 2011
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing: Indigenous Peoples Planning Framework (as of Board approval) Indigenous Peoples Planning Frameworks/Indigenous Peoples Development Frameworks Jul 2011
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing Resettlement Planning Documents Jul 2011
Decentralized Rural Infrastructure and Livelihood Project - Additional Financing Environmental Assessment and Review Framework Jul 2011

Evaluation Documents

See also: Independent Evaluation

No documents found.


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