Nepal: Integrated Urban Development Project

Sovereign Project | 42161-013 Status: Active

Summary

ADB is helping Nepal improve access basic urban infrastructure and services in the municipalities of Dharan, Janakpur, Nepalgunj, and Siddharthanagar. The project will implement integrated urban environmental improvements, including drainage systems, solid waste management facilities, and urban roads. It will also undertake community development programs and strengthen the capacity of agencies.

Latest Project Documents

Consulting Notices See also: CMS

No notices are currently available for this project.

Procurement Notices See also: Operational Procurement

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Procurement Documents


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Project Name Integrated Urban Development Project
Project Number 42161-013
Country Nepal
Project Status Active
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
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome All contracts under the project except those for the integrated solid waste management are under implementation. Contractors have been fully mobilized. Procurement process for SWM project at Siddharthanagar and Nepalgunj is almost at conclusive stage. An alternate landfill site is identified for Janakpur ISWM and land acquisition process is at final stage.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

1. Reliable municipal infrastructure developed

1.1) By June 2017 (for all indicators): 107 km of drainage lines rehabilitated and 49 km of new drainage lines constructed in Janakpur, Nepalgunj, and Siddharthanagar.

Status: A total of 63 km drain works has been completed.

Siddharthanagar: About 14 km of drain is completed.

Nepalgunj: 49 kms of storm water drain completed. Overall, 94% of works completed.

Janakpur: Contract awarded on 22 December 2015.

1.2) 36 km of new or upgraded roads and lanes improved in Janakpur, Nepalgunj, and Siddharthangar.

Status:

Nepalgunj: 6.5 km of urban road (asphalt) completed.

Siddharthanagar: Ongoing.

1.3) Sanitary landfill facilities with a service life of about 15 years with resource recovery system developed in Janakpur, Nepalgunj, and Siddharthanagar

Status:

Janakpur: The originally identified location for landfill site could not be purchased due to social problems. Alternative land identified but yet to conclude the purchasing and acquisition process.

Nepalgunj: FBER preparation is in the final stage.

Siddharthanagar: Procurement process ongoing, TBER concurred by ADB.

1.4) Modality for private sector participation in SWM assessed by 2015.

Status:

Provision has been made in the bidding document to operate SLS by the contractor for a year before handing over to the operator.

1.5) 5,000 households are newly served with and 12,000 households are receiving improved water services in Dharan

Status:

Contract agreement for improvement of water supply systems in Dharan was signed on 25 March 2015, and contractor mobilized on 15 July 2015. Construction of two out of five subsystems of the subproject has been started. Layout work started for backwash overhead tank, three production wells developed and two under construction.

1.6) 90 km of new water supply pipes installed or upgraded in Dharan

Status:

4.7 km of transmission line and 14.4 km distribution line lying completed.

2) Community development programs undertaken and GESI capacity strengthened.

2.1) 100% of poor settlements in the project municipalities benefit from the community development program

Status:

Project implementation is being done in this direction by mobilizing NGOs in Dharan, Janakpur, Siddharthanagar and Nepalgunj Municpalities.

2.2) At least 33% of representatives on committees established for community development programs are women.

Status:

84 TLOs (14 Dharan, 29 Janakpur, 21 Siddharthanagar and 20 Nepalgunj) and 3 Users committees (1 each at Dharan, Janakpur and Siddharthanagar) formed in the project municipalities have more than 33% of women representatives

2.3) 50% of participants in skills and entrepreneurship development programs are women.

Status: Proposal for skills and entrepreneurship development programs concurred for Dharan and Siddharthanagar and being implemented, and under preparation for Janakpur and Nepalgunj.

More than 50% participants will be women.

2.4) GESI operational manuals, toolkits, and checklists developed and used in MPPW and its departments

Status: GESI operational guidelines finalized. GESI project based Log Frame developed. GESI operational guideline based toolkits developed. GESI related brochure prepared. They are being used

2.5) Budget for GESI operation allocated in MPPW separately from the project.

Status: Being complied

3) Project management and administration supported.

3.1) PCO and PIUs are fully staffed on time.

Status: PCO and PIUs formed and fully staffed.

3.2) Quarterly progress reports and audit reports are of satisfactory quality and submitted on time.

Status: Audit report and quarterly reports are being submitted timely and are of satisfactory quality.

3.3) Project is implemented on time and within budget.

Status: Project is performing within the approved budget despite delay in procurement process of Janakpur sub projects.

3.4) Staff skills on GESI upgraded through at least five trainings for municipal staff (target of 20% female participants).

Status:

Trainings being conducted on GESI Operational Guidelines. Also TOT on GESI mainstreaming being organized

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 Staff

Responsible ADB Officer Laxmi Sharma
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Ministry of Urban Development
Mr. Binod Chandra Jha
Singhadurbar, Kathmandu, Nepal

Timetable

Concept Clearance 15 Dec 2010
Fact Finding 24 Aug 2011 to 06 Sep 2011
MRM -
Approval -
Last Review Mission -
Last PDS Update 06 Mar 2016

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 6.44 0.00 54%
Counterpart 6.50 Cumulative Disbursements
Cofinancing 0.00 14 Feb 2012 4.14 0.00 35%

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 30.83 0.00 78%
Counterpart 20.60 Cumulative Disbursements
Cofinancing 0.00 14 Feb 2012 11.75 0.00 30%
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

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Integrated Urban Development Project: Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Jul 2016
Integrated Urban Development Project: Environmental Monitoring Report (July-December 2015) Environmental Monitoring Reports Mar 2016
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 Plans 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 Frameworks Oct 2011
Integrated Urban Development Project: Nepalganj Municipality (Draft) Resettlement Plans Sep 2011
Integrated Urban Development Project Environmental Assessment and Review Framework Sep 2011
Integrated Urban Development Project: Siddharthanagar Municipality (Draft) Resettlement Plans 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 Frameworks Sep 2011
Integrated Urban Development Project: Janakpur Municipality (Draft) Resettlement Plans 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

None currently available.

Related Publications

None currently available.


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