Nepal: Integrated Urban Development Project

Sovereign Project | 42161-013

Summary

The project will provide the population in the municipalities of Dharan, Janakpur, Nepalgunj, and Siddharthanagar with better access to municipal infrastructure and services in a socially inclusive manner. In accordance with the priorities of each municipality, integrated urban environmental improvements, including drainage systems, solid waste management (SWM) facilities, and urban roads, will be implemented in Janakpur, Nepalgunj, and Siddharthanagar municipalities. A water supply development subproject will be implemented in Dharan municipality. The project will also undertake community development programs (CDPs), focusing primarily on poverty pockets in the municipalities and communities that may not benefit directly from major infrastructure improvement subprojects.

Latest Project Documents

Consulting Notices

See also: CMS

No notices are currently available for this project.

Procurement Notices

See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name Integrated Urban Development Project
Project Number 42161-013
Country Nepal
Project Status Approved
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0284-NEP: Integrated Urban Development Project
Asian Development Fund US$ 12.00 million
Loan 2851-NEP: Integrated Urban Development Project
Asian Development Fund US$ 44.80 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector Transport - Urban roads and traffic management
Water and other urban infrastructure and services - Other urban services - Urban flood protection - Urban policy, institutional and capacity development - Urban solid waste management - Urban water supply
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will provide the population in the municipalities of Dharan, Janakpur, Nepalgunj, and Siddharthanagar with better access to municipal infrastructure and services in a socially inclusive manner. In accordance with the priorities of each municipality, integrated urban environmental improvements, including drainage systems, solid waste management (SWM) facilities, and urban roads, will be implemented in Janakpur, Nepalgunj, and Siddharthanagar municipalities. A water supply development subproject will be implemented in Dharan municipality. The project will also undertake community development programs (CDPs), focusing primarily on poverty pockets in the municipalities and communities that may not benefit directly from major infrastructure improvement subprojects. Gender equality and social inclusion (GESI) will be mainstreamed in all subprojects in the municipalities, and the capacity to address GESI in the Ministry of Physical Planning and Works (MPPW) will be strengthened by establishing an appropriate institutional structure and mechanisms for GESI mainstreaming.
Project Rationale and Linkage to Country/Regional Strategy The pace of urbanization in Nepal has increased markedly during 2001 2011 with an urban population growth rate of 3.4% per annum, compared with national population growth of 1.4% per annum. In 2011, 17% of the population was estimated to live in urban areas, up from 9.2% in 1991 and 13.9% in 2001. While global experience clearly demonstrates that urbanization is an important driver of economic development, the potential has not been adequately tapped in Nepal. In the absence of a stringent policy regulating and managing growth, uncontrolled and haphazard urban development has created numerous problems, including deficiencies in basic urban services; environmental degradation; encroachment on public land, forests, and river banks; and sprawling settlement development. Most municipalities in Nepal lack properly engineered and operated sanitary landfills, and have limited and intermittent water supply services, poorly maintained road infrastructure, and inadequate drainage systems that cause recurrent waterlogging problems, mainly in the Terai. The Local Self Governance Act mandates a wide range of functions and responsibilities to municipalities, but the lack of financial and qualified human resources and a low level of institutional capacity make providing infrastructure facilities commensurate with the growing demand for services a major challenge. Poor health, caused by the poor urban environment, saps economic growth by reducing labor productivity and educational attainment. Disease, associated economic burden, and premature death disproportionately affect the poor and vulnerable.
Impact Improved urban environment in the municipalities of Dharan, Janakpur, Nepalgunj, and Siddharthanagar
Project Outcome
Description of Outcome Population in project municipalities have inclusively better access to improved municipal infrastructure and services.
Progress Toward Outcome

There are 10 consulting service packages in total: project management and support consultant (PMSC) in the PCO; GESI consultant for the GESI Unit; design and supervision consultants (DSCs) for the four project municipalities of Dharan, Janakpur, Nepalgunj, and Siddharthanagar; and local nongovernment organization (NGO) services in the four project municipalities. Contracts have been awarded for all and are fully been mobilized.

Contracts for drainage and road subprojects at Nepalgunj and Siddharthanagar were awarded in Dec 2014. TBER for Integrated Solid Waste Management (ISWM) projects at Siddharthanagar is approved by ADB; and that for ISWM Nepalgunj is under review. Contract for procurement of civil works package for Construction of Dharan Water Supply Subproject was awarded on 25 March 2015 . Similarly, design of the drainage and road project at Janakpur has been finalized and bidding documents are in stage of final review at ADB.

Implementation Progress
Description of Project Outputs

1. Reliable municipal infrastructure developed

2. Community development programs undertaken and GESI capacity strengthened.

3. Project management and administration supported.

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

1. Contract for storm water drain and road improvement subprojects at Nepalgunj and Siddharthanagar were awarded in Dec 2014. Contractors have been mobilized in both subprojects and works is ongoing.

TBER for ISWM Subproject at Siddharthanagar is recently approved by ADB where as TBER for ISWM Subproject at Nepalgunj is under review.

Contract for procurement of civil works package for Construction of Dharan Water Supply Subproject was awarded on 25 March 2015.

Detailed design and cost estimate has been finalized for Janakpur Drain and Road Improvement Subproject and Bidding documents for the same is in stage of approval at ADB.

Regarding Janakpur ISWM Subproject, a site has been identified for construction of sanitary landfill site and process for procuring the land is ongoing.

2. Under the Community development components of the project different type of hardware (small scale infrastructure) and software (skill development training, awareness raising and capacity building trainings) are ongoing at the Project Municipalities (Dharan, Siddharthanagar and Nepalgunj) by mobilizing NGOs.

Social Coordination/GESI Unit established in MoUD and it's departments (DWSS and DUDBC). GESI units have been established in 8 Division and Sub Division Offices of DWSS and 10 Division Offices of DUDBC.GESI operational guidelines finalized and approved. GESI project based Log Frame and GESI operational guideline based toolkits developed. GESI related brochure prepared.Orientation/training on the GESI project based Log Frame developed. GESIoperational guideline based toolkits developed. In Dec 2014, 1 event of Orientation Program on GESI Operational guideline was conducted to 16 Sub/Division Offices in Eastern Development Region of DWSS. Similarly, 1 event of Regional level orientation on GESI Operational Guideline was organized to head of Sub/ Division Offices of DWSS.

3. Project Coordination Office and Project Implementation Units have been established and is in full operation with all key staff positions fulfilled. PCO and PIUs are taking responsibility for overall management and administration of project related matters. Also the quarterly proress reports, audit reports and safeguard (environment and social) documents and reports are being submitted to ADB as per requirements.

There has been delay in procurement process of Janakpur subprojects and especially the ISWM subproject due to issues in finalizing site for contruction of sanitary landfill site. At present some postitive development is being made also in this package.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is classified as environmental category B. Four initial environmental examinations including environmental management plans were prepared in accordance with ADB's Safeguard Policy Statement (2009) and government laws, and disclosed. Subprojects are not located in or near sensitive or protected areas, and the initial environmental examinations conclude that no significant adverse impacts are anticipated from proposed locations, designs, and construction activities. The environmental management plans provide adequate mitigation measures to ensure impacts are limited and of short duration. The net environmental benefits will be positive and large, including reduced (i) urban flooding from improved drainage systems, (ii) environmental pollution from improved SWM, and (iii) health and hygiene status as well as the overall environmental sanitation situation of the selected povery clusters of the project municipalities will be improved through various software and hardware activities under small scale community infrastructure. Implementation arrangements in the PCO build on experience gained through ADB urban projects, and consultant support will enable the PIUs to manage environmental impacts. The PCO has been providing environment safeguard related reports/ documents to ADB as required. The project had alredy submitted Semi annual environmental safeguard monitorting report covering the period of June-Dec 2014. This has been disclosed in ADB's web site.
Involuntary Resettlement

The project is classified as category B for involuntary resettlement and category C for indigenous peoples. Three draft resettlement plans were prepared in consultation with affected persons in accordance with the ADB's Safeguard Policy Statement and disclosed. Also the updated resettlement plan of the subproject have been / are being finalised based on the final design of the subprojects.

The project requires minor land acquisition for construction of sanitary landfills and temporary impacts on vendors during construction, with no significant resettlement impacts anticipated. Special assistance measures will be made available to vulnerable groups. The resettlement plans will be implemented by the PIUs and monitored by the PCO, and adequate consultant inputs have been made available to support implementation and build capacity to managing resettlement impacts and social risks. The project has been reporting compliance to social safeguard related issues by the PIUs in the quarterly as well as semi anuual social safeguard monitoring report to the ADB. The semi annual safeguard monitoring report covering the period of June-Dec 2014 has already been submitted.

Indigenous Peoples The project is classified as category B for involuntary resettlement and category C for indigenous peoples. Considering the urban locations of these subprojects, no impacts to indigenous peoples are expected.
Stakeholder Communication, Participation, and Consultation
During Project Design

Urban services are limited outside Kathmandu Valley. Physical limitations restrict further development in the valley, and there is an urgent need to improve the environment in potential urban centers to promote social and economic development in other regions of Nepal. The government, represented by the Department of Urban Development and Building Construction (DUDBC), developed the criteria for selecting strategically important towns. Dharan, Janakpur, Nepalgunj, and Siddharthanagar were chosen for the project on the basis of (i) economic growth potential, (ii) demand for urban services, and (iii) urban management capacity. The project directly addresses and conforms to the development policy of Nepal, as expressed in the NUP and Three-Year Plan Approach Paper, by improving the environment of urban centers that work as catalysts for economic development, which will help contribute to the employment-centric, equitable, and inclusive economic growth emphasized by the approach paper.

Urban infrastructure and facilities have tended not to fully recognize social differentials in the needs of women, the poor, and excluded groups. People living in municipal poverty pockets experience discrimination based on gender, caste, and ethnicity, and multiple exclusions constrain their progress and access to services. Their participation in community activities is limited due to lack of access to information and resources, although progress has been made through support for their empowerment and mobilization from various NGOs and development partners. To be effective, urban development must integrate GESI.

During Project Implementation

The project is in line with the Nepal country partnership strategy of the Asian Development Bank (ADB), which rests on four pillars: broad-based and inclusive economic growth, inclusive social development, governance and capacity building, and climate change adaptation and environmental sustainability. Reflecting lessons from similar projects, the project (i) focuses on a small number of physically integrated components, to simplify project administration and optimize inter-sector linkages; (ii) is confined to larger municipalities with relatively higher technical and financial capacity to implement the project and create discernable development impacts; (iii) fully involves stakeholders, including communities, in project identification and design from an early stage; (iv) provides capacity development support before project implementation; and (v) addresses enforcement of appropriate regulations as an essential element of managing urban infrastructure effectively.

Therefore as envisioned by the Project, the project coordination office and project implementation units are doing consultation with the concerned stakeholders as and when needed and also been disseminating the relevant project related information to the public. Also due consideration has been given for the meaningful participation of the concerned project stakeholders in reaching project related decisions.

Business Opportunities
Consulting Services All advance contracting and retroactive financing will be undertaken in conformity with ADB's Procurement Guidelines (April 2010, as amended from time to time) (ADB's Procurement Guidelines) and ADB's Guidelines on the Use of Consultants (April 2010, as amended from time to time) (ADB's Guidelines on the Use of Consultants). The issuance of invitations to bid under advance contracting and retroactive financing will be subject to ADB approval. The Government and Municipalities have been advised that approval of advance contracting and retroactive financing does not commit ADB to finance the Project. Advance contracting is approved for the recruitment of PMSC, DSC, GESI consultant and NGOs.
Procurement All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines. International competitive bidding (ICB) procedures will be used for any civil works contract estimated to cost more than $1 million, and any goods contract estimated to cost more than $500,000. National competitive bidding (NCB) procedures will be used for any civil works contract estimated to cost $1 million or less and any goods contract estimated to cost $500,000 or less. Shopping will be used for any civil works or goods contract estimated to cost less than $100,000.
Responsible ADB Officer Laxmi Sharma
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Ministry of Urban DevelopmentMr. Binod Chandra JhaSinghadurbar, Kathmandu, Nepal
Timetable
Concept Clearance 15 Dec 2010
Fact Finding 24 Aug 2011 to 06 Sep 2011
MRM 06 Oct 2011
Approval 14 Feb 2012
Last Review Mission -
Last PDS Update 30 Mar 2015

Grant 0284-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Feb 2012 08 May 2012 04 Jul 2012 31 Dec 2017 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 18.50 Cumulative Contract Awards
ADB 12.00 14 Feb 2012 6.46 0.00 54%
Counterpart 6.50 Cumulative Disbursements
Cofinancing 0.00 14 Feb 2012 3.38 0.00 28%

Loan 2851-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Feb 2012 08 May 2012 04 Jul 2012 31 Dec 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 65.40 Cumulative Contract Awards
ADB 44.80 14 Feb 2012 20.37 0.00 51%
Counterpart 20.60 Cumulative Disbursements
Cofinancing 0.00 14 Feb 2012 4.06 0.00 10%
Title Document Type Document Date
Integrated Urban Development Project: Procurement Plan Procurement Plans Feb 2015
Integrated Urban Development Project Project/Program Administration Manual May 2013
Financing Agreement for Integrated Urban Development Project Financing Agreement May 2012
Project Agreement for Integrated Urban Development Project Project/Program Agreement May 2012
Integrated Urban Development Project: Gender Equality and Social Inclusion Action Plan Gender Action Plans Jan 2012
Integrated Urban Development Project Project/Program Administration Manual Jan 2012
Integrated Urban Development Project Reports and Recommendations of the President Jan 2012
Integrated Urban Development Project Summary Poverty Reduction and Social Strategies Jan 2012
Integrated Urban Development Project Design and Monitoring Frameworks Oct 2011
Integrated Urban Development Project Initial Poverty and Social Analysis Dec 2010
Integrated Urban Development Initial Poverty and Social Analysis Nov 2010

Safeguard Documents

See also: Safeguards
Title Document Type Document Date
Integrated Urban Development Project: Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Feb 2015
Integrated Urban Development Project: Environmental Monitoring Report (January - June 2014) Environmental Monitoring Reports Aug 2014
Integrated Urban Development Project: Semi-Annual Social Safeguard Monitoring Report (January-June 2014) Social Monitoring Reports Jul 2014
Integrated Urban Development Project: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Feb 2014
Integrated Urban Development Project: Semi-Annual Social Safeguard Monitoring Report July-December 2013 Social Monitoring Reports Dec 2013
Integrated Urban Development Project: Draft Resettlement Plans for Janakpur Resettlement Planning Documents Oct 2011
Integrated Urban Development Project: Environmental Assessment and Review Framework (as of Board approval) Environmental Assessment and Review Framework Oct 2011
Integrated Urban Development Project: Draft Initial Environmental Examinations for Dharan Environmental Assessment and Measures Oct 2011
Integrated Urban Development Project: Resettlement Framework (as of Board approval) Resettlement Planning Documents Oct 2011
Integrated Urban Development Project - Nepalganj Municipality (Draft) Resettlement Planning Documents Sep 2011
Integrated Urban Development Project Environmental Assessment and Review Framework Sep 2011
Integrated Urban Development Project - Siddharthanagar Municipality (Draft) Resettlement Planning Documents Sep 2011
Integrated Urban Development Project - Siddharthanagar Municipality (Draft) Environmental Assessment and Measures Sep 2011
Integrated Urban Development Project - Nepalganj Municipality (Draft) Environmental Assessment and Measures Sep 2011
Integrated Urban Development Project Resettlement Planning Documents Sep 2011
Integrated Urban Development Project - Janakpur Municipality (Draft) Resettlement Planning Documents Sep 2011
Integrated Urban Development Project - Janakpur Municipality (Draft) Environmental Assessment and Measures Aug 2011
Integrated Urban Development Project - Dharan Municipality (Draft) Environmental Assessment and Measures Aug 2011

Evaluation Documents

See also: Independent Evaluation

No documents found.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.