Nepal: Transport Project Preparatory Facility (formerly Transport Project Preparatory and Capacity Development Facility)

Sovereign Project | 43216-012

Summary

The facility will assist the government's effort to ensure that critically important road and air transport projects are implemented efficiently by systematically advancing the preparatory activities. The facility will identify and prepare high-priority projects for potential funding by the government and or by the Asian Development Bank (ADB) or other development partners in the country. This preparation will include feasibility studies, safeguard due diligence, detail engineering design, bidding documents, and procurement assistance for advance contracting (if appropriate). This will contribute significantly to (i) improving the implementation performance of the ensuing projects by reducing the period between project concept and loan approval and the commencement of improvement works, (ii) helping to achieve the intended outcomes efficiently, and (iii) realizing the projects- impacts and benefits in a timely manner.

Latest Project Documents

Consulting Notices

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Procurement Notices

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Procurement Documents

Title Document Date
Transport Project Preparatory Facility Apr 2013

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Project Name Transport Project Preparatory Facility (formerly Transport Project Preparatory and Capacity Development Facility)
Project Number 43216-012
Country Nepal
Project Status Approved
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0227-NEP: Transport Project Preparatory Facility (formerly Transport Project Preparatory and Capacity Development Facility)
Asian Development Fund US$ 12.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Transport - Air transport - Road transport (non-urban)

Gender Equity and Mainstreaming No gender elements
Description The facility will assist the government's effort to ensure that critically important road and air transport projects are implemented efficiently by systematically advancing the preparatory activities. The facility will identify and prepare high-priority projects for potential funding by the government and or by the Asian Development Bank (ADB) or other development partners in the country. This preparation will include feasibility studies, safeguard due diligence, detail engineering design, bidding documents, and procurement assistance for advance contracting (if appropriate). This will contribute significantly to (i) improving the implementation performance of the ensuing projects by reducing the period between project concept and loan approval and the commencement of improvement works, (ii) helping to achieve the intended outcomes efficiently, and (iii) realizing the projects- impacts and benefits in a timely manner. The facility will also provide capacity development support to help establish an enabling environment, supporting the government's goal of developing transport infrastructure under public-private partnership (PPP). The facility will prepare transport projects that will contribute to improving connectivity and accessibility throughout the country. The facility is also relevant to ADB's sector strategy in support of the government's goal of achieving regionally balanced economic growth and reduced social inequalities.
Project Rationale and Linkage to Country/Regional Strategy

At least two road transport and one air transport projects will be prepared under the Facility. The road transport component will prepare improvement projects for high priority SRN sections of about 1,300 km, identified in the government's Priority Investment Plan (2007-2016) and DOR's 20-year master plan for SRN. To enhance subregional connectivity, priorities will also include SRN links to subregional transport corridors identified under the SAARC Regional Multimodal Transport Study (SRMTS) . The air transport component will prepare capacity enhancement and safety improvements at the Tribuhuvan International Airport (TIA) in Kathmandu and other regional airports, as well as the domestic airports serving remote areas that are otherwise inaccessible by roads.

The Facility will also provide capacity development support to help establish an enabling environment for preparing and implementing PPP projects in the road and air transport sub-sectors. These will include: PPP sector diagnostic and sector map - reviewing legal, regulatory, and policy frameworks, assessing institutional structures, conducting stakeholder consultation, and clarifying sector strategy and road map; identify and prepare at least one small scale pilot PPP project - assessing and selecting PPP options, defining procurement and bid evaluation process, and preparing bid package; and procurement assistance as appropriate.

A potential ensuing project will be eligible for preparatory steps under the Facility if it is: organizationally and technically feasible; prima facie economically and financially viable an sustainable; environmentally and socially responsible; consistent and prepared in accordance with the Borrower's relevant sector strategy, master plans or medium term development plan; and consistent with ADB's Country Strategy Program or Country Strategy and Program Update. For the road transport sub sector, the Facility will primarily prepare improvement for priority SRN sections identified in the PIP. However, other candidate roads could also be considered if worthy in terms of improving accessibility, especially poor rural access, contributing to reduction of social exclusion, and enhancing connectivity to regional and economic centers, international borders, and district headquarters. For the air transport sub sector, the Facility will prepare improvement projects to enhance safety, capacity, and security in line with the Civil Aviation Sector Strategy and Infrastructure Development Plan , updated Master Plan for TIA , and the National Air Transport Development Plan.

The implementation of the Facility will be phased in line with ADB's pipe line projects. For instance, the preparation of about 900 km of SRN (Subgroup 1) will start immediately in order to facilitate the processing of ADB funded transport projects according to the Country Operation and Business Plan (COBP, Nepal, 2011-2013). Preparation for the remaining, about 400 km of SRN (Subgroup 2), will commence in about mid-2013 for potential transport projects to be funded during later years by ADB and or other development partners.

Impact Enhanced transport connectivity.
Project Outcome
Description of Outcome Improved efficiency in implementing road and air transport projects.
Progress Toward Outcome During review mission held on 6-10 March 2014, CAAN confirmed that PPP elements are already included in the scope of PPC-Air and that the Investment Board of Nepal will be informed with the outcome of consultant's study.
Implementation Progress
Description of Project Outputs

1. Feasibility studies and detailed design of road and air transport projects

2. Capacity development support to DOR and CAAN for preparing and implementing PPP projects

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

1) SASEC Road Connectivity Project, prepared under PPC-1 contract, was approved on 30 July 2013.

2) PPC-2 consultant being recruited.

3) Recruitment of PPC-Air being recruited.

Geographical Location Nepal
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The facility is expected to ensure development of environmentally and socially viable investment loans. The follow-on loans and grant will be prepared in compliance with ADB's Safeguard Policy Statement (2009) and government guidelines, regulations, and policies. The facility is not expected to have any adverse environmental consequences due to the nature of the proposed intervention, i.e., project preparation. During the feasibility studies, the consultants will prepare environmental impact assessments or initial environmental examinations, including environmental management plans, for the selected subprojects. Similarly, resettlement planning, indigenous peoples planning, and gender analyses will be prepared for the selected subprojects during this stage, and will be updated during the detailed design stage as appropriate.
Involuntary Resettlement

The grant will prepare feasibility studies, detailed design, and implementation support to follow-on investment. No resettlement issue is envisaged under the grant.

Resettlement impact will be assessed and resettlement planning documents will be prepared (if required) following ADB's Safeguard Policy Statement (2009), and government policy and procedures when each follow-on investment is processed.

Indigenous Peoples

The grant will prepare feasibility studies, detailed design, and implementation support to follow-on investment. No indigenous peoples issue is envisaged under the grant.

Indigenous people impact will be assessed and indigenous planning documents will be prepared (if required) following ADB's Safeguard Policy Statement (2009), and government policy and procedures when each follow-on investment is processed.

Stakeholder Communication, Participation, and Consultation
During Project Design Consultation was conducted in June 2009 and July 2010 with (i) the National Planning Commission, (ii) Office of the Prime Minister, (iii) Ministry of Tourism and Civil Aviation and Civil Aviation Authority of Nepal, (iv) Nepal Telecommunication Authority, (v) Ministry of Finance, (vi) Ministry of Physical Planning and Works, and (vii) Ministry of Information and Communications.
During Project Implementation

Once a year, DOR and CAAN, respectively, will hold one-day workshop to share information on project progress, issues, lessons learned, and performance improvement measures if appropriate.

Various information regarding the Project, including scope, general progress status, beneficiaries, invitation for bid, and consultant recruitment notices, will be provided to the general public. The information will be made available and updated through the official websites of DOR and CAAN.

While conducting poverty and social assessment, the Consultants will conduct field visits and direct consultations/interactions with stakeholders using participatory approaches at the local and line Ministry levels. If there are any gaps emerging from the communication needs assessment, the Consultants will have to formulate, in discussion with internal stakeholders and key decision-makers, a communications strategy for the Facility.

Business Opportunities
Consulting Services To carryout project preparatory activities under the Facility, international firms, as project preparatory consultant (PPC) will recruited. PPC1-Road Transport Component requires an estimated 353 person-months (68 international, 285 national). PPC2-Road Transport requires an estimated 245 person-months (36 international, 209 national) and PPC-Air Transport Component requires 236 person-months (101 international, 135 national). Consulting firms will be engaged using the quality- and cost-based selection (QCBS) method with a weighting of 90% technical and 10% financial as the nature of the assignment requires priority consideration for quality. To assist CAAN with project management, a national individual will be recruited for about 24 person-months using individual selection procedure.
Procurement All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2010, as amended from time to time)
Responsible ADB Officer Lee Ming Tai
Responsible ADB Department South Asia Department
Responsible ADB Division Transport and Communications Division, SARD
Executing Agencies
Civil Aviation Authority of NepalATDP@MOS.COM.NPP. B. No. 284, Babar Mahal
Kathmandu
Nepal
Ministry of Physical Infrastructure and TransportSingha Durbar
Kathmandu
Nepal
Timetable
Concept Clearance 10 Sep 2009
Fact Finding 12 Jul 2010 to 23 Jul 2010
MRM 30 Apr 2009
Approval 29 Oct 2010
Last Review Mission -
PDS Creation Date 05 Nov 2009
Last PDS Update 18 Mar 2015

Grant 0227-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Oct 2010 04 Mar 2011 25 Apr 2011 30 Jun 2016 30 Jun 2020 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 13.80 Cumulative Contract Awards
ADB 12.00 29 Oct 2010 6.03 0.00 50%
Counterpart 1.80 Cumulative Disbursements
Cofinancing 0.00 29 Oct 2010 2.69 0.00 22%

Safeguard Documents

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Evaluation Documents

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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.

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