Nepal: Building Climate Resilience of Watersheds in Mountain Eco-Regions

Sovereign Project | 44214-024

Summary

The Government's Strategic Program for Climate Resilience interventions aim to provide lessons on how best to approach building climate resilience in vulnerable mountain regions. The SPCR will support, strengthen, and facilitate the scaling up of interventions that will build long-term climate resilience in Nepal. In a country where the impacts to water resources constitute the principal climate change risk and the majority of the population derives considerable benefit and livelihood from such resources, SPCR support is a critical entry point to improve the resilience of water resources and associated mountain ecosystems. While different development partners have stepped in to support the Government to implement climate change adaptation measures that focus on short term (urgent and immediate) measures, the SPCR will focus on longer term interventions aimed at enhancing climate resilience in Nepal.

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Consulting Notices

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Title Deadline
NGO Training Service Provider 26 Sep 2015

Procurement Notices

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Procurement Documents


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Project Name Building Climate Resilience of Watersheds in Mountain Eco-Regions
Project Number 44214-024
Country Nepal
Project Status Approved
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0357-NEP: Building Climate Resilience of Watersheds in Mountain Eco-Regions
Strategic Climate Fund US$ 23.54 million
Grant 0358-NEP: Building Climate Resilience of Watersheds in Mountain Eco-Regions
Nordic Development Fund Grant US$ 4.63 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Sector / Subsector Agriculture and Natural Resources - Water-based natural resources management
Gender Equity and Mainstreaming Effective gender mainstreaming
Description The Government's Strategic Program for Climate Resilience interventions aim to provide lessons on how best to approach building climate resilience in vulnerable mountain regions. The SPCR will support, strengthen, and facilitate the scaling up of interventions that will build long-term climate resilience in Nepal. In a country where the impacts to water resources constitute the principal climate change risk and the majority of the population derives considerable benefit and livelihood from such resources, SPCR support is a critical entry point to improve the resilience of water resources and associated mountain ecosystems. While different development partners have stepped in to support the Government to implement climate change adaptation measures that focus on short term (urgent and immediate) measures, the SPCR will focus on longer term interventions aimed at enhancing climate resilience in Nepal. Five SPCR components have been endorsed: Building Climate Resilience of Watersheds in Mountain Eco-Regions (the Project), Building Resilience to Climate-Related Hazards (to be administered by World Bank), Mainstreaming Climate Change Risk Management in Development (capacity building technical assistance to be administered by ADB), Building Climate Resilient Communities through Private Sector Participation (3 small projects implemented by IFC), and Enhancing Climate Resilience of Endangered Species (to be administered by World Bank).
Project Rationale and Linkage to Country/Regional Strategy

The Project will support the implementation of the Strategic Program for Climate Resilience (SPCR) which has recently been developed by the Government of Nepal in partnership with Asian Development Bank (ADB), International Finance Corporation (IFC) and the World Bank and was endorsed by the Pilot Program for Climate Resilience sub-committee of the Climate Investment Funds (CIF) on 28 June 2011. Within the overall framework of the SPCR, the Project will enable communities in mountainous ecosystems that are significantly vulnerable to climate change impacts to have improved access to and reliability of watershed and water resources.

Nepal is one of the most climate vulnerable countries in the world. To achieve the country's overriding goal of reducing poverty, Nepal will need to manage its substantial climate risks and chart a climate resilient growth path. Moreover, as a mountainous country belonging to the Himalaya region, also known as the 'third pole' or the 'water tower of Asia', Nepal faces unique challenges. Temperatures are rising fastest at the highest altitudes, affecting glaciers, snow and ice, and threatening the generally poor and isolated communities that depend upon them. Retreating glaciers and changes in seasonal snow fall and melt will lead to greater uncertainty about water discharge patterns and, in the long run, diminished water availability. This results either in floods that destroy agricultural crops, displace people, kill livestock, and cause sediment deposits on agricultural lands, or in droughts that also destroy crops and affect livestock, and result in insufficient water for drinking and sanitation. In both cases, women's vulnerability increases more than men's as their traditional roles of fetching water, firewood and fodder, and working on agricultural lands will be severely affected with floods and droughts. Furthermore, the coping and adaptive capacities of communities to climate change depends on their knowledge and awareness of climate change risks and appropriate mechanisms to address these risks, and their access to and control over resources, which, oftentimes, the disadvantaged groups do not have.

In recent years the Government has given a much stronger emphasis to issues related to the environment and now to climate resilience as well. The Government prepared the National Adaptation Programme of Action (NAPA, 2010) through a broad-based consultative process. The NAPA includes 43 adaptation options that have been clustered into 9 priority profiles, several of which call for interventions in watershed management, soil and water conservation, scaling up multiple-use water systems, enhanced water storage, and ecosystem management.

Nepal has some experience in integrated water, forest and agriculture management. The Department of Soil Conservation and Watershed Management (DSCWM) under the Ministry of Forests and Soil Conservation (MOFSC) is the lead government institution for watershed management, and its field offices implement small projects to protect and improve water resources and their catchment areas. Water management in Nepal has traditionally been according to administrative rather than geographical boundaries, and Nepal is preparing an Integrated Water Resources Management Policy. DSCWM recognizes that an understanding of the link between the hydrologic cycle and land management at the watershed scale is necessary for effective water resources management, and is keen to boost its capacity in this regard. The 3-year interim development plan (2011-2013) calls for a watershed-based approach.

Impact Climate resilience in Nepal mountain communities improved
Project Outcome
Description of Outcome

Communities in selected climate-vulnerable mountain watersheds have access to more

reliable water resources

Progress Toward Outcome Too early to assess. Project is just getting started and consultants were fielded in 3Q 2014.
Implementation Progress
Description of Project Outputs

1. Participating communities have improved catchment management and new or improved water storage

infrastructure

2. Communities and government manage water and land in an integrated and inclusive manner within watersheds

3. Knowledge-based approaches for integrated water and land management and improved water reliability and accessibility in the wake of climate change adopted by government

4. Project management support provided

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

Field works not started yet.

Not started yet.

Ongoing.

Not started yet.

Not started yet.

Ongoing.

Not started yet.

Ongoing.

Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project has an environmental assessment review framework that specifies environmental criteria for subproject selection. Subprojects of the types planned have minor or insignificant environmental impacts. It is expected to most of the inventions will be classified as Category C under ADB's Safeguard Policy Statement, with the exception of some of the newly constructed earthen ponds, which would be categorized B. A rapid environment assessment will be conducted for each subproject to determine the classification. Initial environmental exams will be prepared for Category B subprojects, and due diligence reports will be prepared for Category C subprojects. One district soil conservation office staff member will be trained as an environment officer for monitoring, supported by a consultant. The project management unit will prepare annual environmental monitoring reports.
Involuntary Resettlement The project will undertake small community-driven schemes with no resettlement or involuntary land acquisition. Communities must submit applications for project benefits and indicate in such applications that they voluntarily donate any necessary small parcels of land. By doing so, they become primary beneficiaries of enhanced water availability and watershed management. The selection criteria further require that communities demonstrate their willingness to carry out catchment protection measures. A voluntary land donation framework has been prepared and requires that due diligence is conduted on each scheme to ensure the selection criteria has been met.
Indigenous Peoples The communities where the potential schemes are located are almost exclusively Chhetri and/or Brahman and Dalit, and have insignificant Janajati (indigenous people) presence. The Janajatis do not constitute a community and are generally not a part of the agrarian system in the project area. An indigenous peoples impact-screening checklist has been prepared that will be used for each proposed subproject to screen out any subproject that will have negative impact on indigenous peoples' communities. A few members of an endangered, nomadic, indigenous peoples group the Raute occasionally visit the project area in Achham and Doti districts. To minimize their vulnerability and to conserve the natural resource niche that their marginal livelihood depends on, the project has included, as part of the subproject selection criteria, avoidance of project water storage interventions in land where the Raute are known to camp, even though untapped water sources may exist.
Stakeholder Communication, Participation, and Consultation
During Project Design Several multi-stakeholder events were held starting in September 2009 to develop Nepal's Strategic Program for Climate Resilience (SPCR) financed under the Pilot Program for Climate Resilience (PPCR) of the Climate Investment Funds. In March 2010, a small-scale TA was approved to conduct conduct an assessment of key risks for Nepal communities in light of climate change, and their adaptive capacity. Consultations at the national (primarily through the NAPA thematic working groups), district (6 sample districts, involving 150 people), and local level (12 places, involving 450 people, 40% of which were women) were held during the 6-month implementation period of the small-scale TA. A second joint programming mission involving Government, NGOs, local governments, and civil society was fielded in November 2010 to review the findings of the SPCR preparatory team and agree on priority SPCR projects. The final joint programming mission was fielded in February 2011 and a full multi-stakeholder workshop was dedicated to the design of the project and associated PPTA. Finally, a consultation workshop was convened in August 2011 to review the project concept paper and provide suggestions for improvement.
During Project Implementation
Business Opportunities
Consulting Services All consultants and nongovernment organizations (NGOs) will be recruited according to ADB's Guidelines on the Use of Consultants. One main package of consulting services will be engaged for project implementation support and supervision. An estimated 709 person-months of national consulting services are required to (i) facilitate project management and implementation, and (ii) strengthen the institutional and operational capacity of the executing agency. The consulting firm will be engaged using the quality- and cost-based selection (QCBS) method. Considering the remote location of the assignment, its unique management challenges, the variety of types of infrastructure in one project, and the need to implement the project in a shortened time period with high quality works, a quality:cost ratio of 90:10 will be used. Taking into account the services required and consultants to be recruited, the fact that DSCWM lacks the experience in procuring large consulting services packages, and the necessity to reduce project implementation start-up delays, the Government has requested that ADB, on behalf of the Government, undertake the shortlisting, evaluation, and ranking of the lead firms or organizations and their proposals. Contract negotiations, approval and signing of contracts will remain the Government's responsibility, with ADB assistance as may be required.
Procurement

All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines.

DSCWM has little to no experience in procuring contractors for civil works. Their usual practice is to engage communities to manage the construction of small civil works, with DSCO staff supervising and technically assisting them. They do not have experience in designing or constructing irrigation ponds or drinking water tanks and associated transmission systems. For these reasons, procurement of civil works will be through contractors and managed by the PMU, with the assistance of consultants. Procurement of goods through shopping may be done by the PMU and DSCOs, with assistance of the PMU's procurement specialist. The Project Director of the PMU will be responsible for the procurement of all goods, related services, and civil works under the Project.

Goods, related services, and civil works will be procured in accordance with ADB's Guidelines for Procurement. Since all contracts for civil works, equipment and services are expected to cost less than $1,000,000, contracts with a value greater than $100,000 will be awarded using national competitive bidding (NCB) procedures acceptable to ADB. Shopping will be allowed for contracts valued between $100,000 equivalent or less. DSCWM will certify to ADB that the goods and services financed by the grant are procured from ADB member countries. For small works where materials costs are less than $2,400 and where in-kind contributions in labor is freely provided by the community, ADB may agree to force account procedures provided that DSCWM has the capacity to assure proper use of funds. ADB must approve in advance the awarding of all contracts and substantial contract variations.

Because contracts will be awarded using national competitive bidding, before the start of any procurement ADB and the Government will review the public procurement laws of the Government to ensure consistency with ADB's Procurement Guidelines.

Responsible ADB Officer Vidhisha Samarasekara
Responsible ADB Department South Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SARD
Executing Agencies
Dept. of Soil Conservation & Watershed Mgmt.Ministry of Forest & Soil Conservation
P.O. Box 4719, Babar Mahal
Kathmandu, Nepal
Timetable
Concept Clearance 10 Oct 2011
Fact Finding 20 May 2013 to 24 May 2013
MRM 09 Jul 2013
Approval 23 Sep 2013
Last Review Mission -
Last PDS Update 28 Jul 2015

Grant 0357-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
23 Sep 2013 20 Jan 2014 07 Feb 2014 31 Jul 2020 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 25.48 Cumulative Contract Awards
ADB 0.00 23 Sep 2013 0.00 3.72 16%
Counterpart 1.94 Cumulative Disbursements
Cofinancing 23.54 23 Sep 2013 0.00 1.71 7%

Grant 0358-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
23 Sep 2013 13 Feb 2014 13 Feb 2014 30 Jun 2019 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 4.63 Cumulative Contract Awards
ADB 0.00 23 Sep 2013 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 4.63 23 Sep 2013 0.00 0.00 0%

Evaluation Documents

See also: Independent Evaluation

No documents found.


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