Nepal: Rural Reconstruction and Rehabilitation Sector Development Program (Program grant)

Sovereign Project | 40554-032

Summary

The goal of the Program is to improve the living conditions and well being of number of people in the conflict affected areas by restoring basic social infrastructure, community and public services, and livelihoods. The Program will provide basic needs in the conflict-affected aread through income-generation activities through rural roads, water supply and sanitation, community development, and institutional infrastructure.

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Project Name Rural Reconstruction and Rehabilitation Sector Development Program (Program grant)
Project Number 40554-032
Country Nepal
Project Status Closed
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0094-NEP: Rural Reconstruction and Rehabilitation Sector Development Program (Program grant)
Asian Development Fund US$ 50.00 million
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 goal of the Program is to improve the living conditions and well being of number of people in the conflict affected areas by restoring basic social infrastructure, community and public services, and livelihoods. The Program will provide basic needs in the conflict-affected aread through income-generation activities through rural roads, water supply and sanitation, community development, and institutional infrastructure.
Project Rationale and Linkage to Country/Regional Strategy
Impact Reduce rural poverty in hill, mountain, and terai districts where isolation and hardship are common
Project Outcome
Description of Outcome

Greater economic and social inclusion, good governance, and improved service delivery in rural

infrastructure

Progress Toward Outcome With the exception of getting a Cabinet approval on the draft National Resettlement Policy, the Government has been satisfactorily executing the policy ctions/decisions and has fully utilized the funds under the Program. ADB has financed four short-term consultant inputs to improve quality of the draft Policy so that NPC could resubmit to the Cabinet and get an approval.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

Out of the 29 policy actions/decisions taken under the Program, further actions were envisaged with 9 of them. Out of the 9 policy actions, further actions have been taken in eight of them. These include: (i) the Constituent Assembly has already established a State Restructuring and Distribution of Power Committee; (ii) almost all the technical staff positions in all 75 DTOs have been filled; (iii) MOF issued directives to the Financial Comptroller General Office to undertake public expenditure tracking surveys for all the sectors; (iv) the Nepal Administrative Staff College has provided trainers training on management for development results (MfDR) to its four trainers, incorporated MfDR in its training curriculum, and has started conducting training; (v) MLD has been providing training to DDC staff on procurement and local body financial administration rules; (vi) MLD has finalized

computerization of all DDC accounts and established network between MLD and DDCs; (vii) a proposal for amendment to the Bank and Financial Institution Act has been forwarded for a Cabinet approval to issue regulatory norms for Infrastructure Development Bank; and (viii) Cabinet has already approved the Regulation of the Non-Nepali Resident Act. However, approval of the National Resettlement Policy by the Cabinet has not been completed. NPC submitted a draft Policy for a Cabinet approval in October 2008. The Cabinet returned the Policy to NPC for further review in consultation with concerned ministries, departments and stakeholders, and to improve quality of the text before resubmitting to the Cabinet. However, the process of improving the draft Policy progressed well with the help of four short-term consultants financed by ADB. NPC led and facilitated the process. The team has submitted the improved version to NPC on 28 February 2011.

MOF has fully utilized the $50 million under the Program by 15 July 2010 and has submitted to ADB a budget utilization report on 28 November 2011. Given the possibility of Cabinet approval of the National Resettlement Policy within next three

months and the budget has already been fully utilized, MOF will submit a draft Program Completion Report for ADB's review by 30 June 2011.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement A
Indigenous Peoples A
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 Five individual consultants will be recruited by Project Coordinating Unit (PCU) to advance project preparatory activities at the central and district levels including (i) 132 person months domestic consulting services in procurement, financial management, resettlement, and environmental management,; and (ii) 9 person-months in international consulting services on development of a joint donor coordination framework. The other consultants consisting of 54 person-months international and 626 person-months domestic consulting services will be recruited by PCU through quality and cost based selection process. The government will undertake advance action for recruiting consultants to facilitate the Project's start-up.
Procurement Goods, related services, and civil works will be procured in accordance with ADB's Procurement Guidelines. All small and widely dispersed civil works amounting to $30,000 will be undertaken by the community, following guidelines on community participationin procurement. In few cases involving more complex works such as bridge construction, high retaining walls, hard rock cutting, civil works contracts will be required, which will be procured by District Implementation Unit on the basis of national competitive bidding among contractors in accordance with 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
Ministry of FinanceDMU@NTC.NET.NPThe Government of Nepal
Singha Durbar
Kathmandu, Nepal
Timetable
Concept Clearance 31 Oct 2006
Fact Finding 08 Jun 2007 to 22 Jun 2007
MRM 26 Sep 2007
Approval 12 Dec 2007
Last Review Mission -
Last PDS Update 10 Mar 2011

Grant 0094-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
12 Dec 2007 14 Jan 2008 01 Feb 2008 31 Dec 2011 - 26 Jan 2012
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 50.00 Cumulative Contract Awards
ADB 50.00 12 Dec 2007 50.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 12 Dec 2007 50.00 0.00 100%

Safeguard Documents

See also: Safeguards

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Evaluation Documents

See also: Independent Evaluation

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