Nepal : Decentralized Rural Infrastructure and Livelihoods

Agriculture, natural resources and rural development / Agricultural policy, institutional and capacity development

To achieve its primary development objective of poverty reduction, the Government places high priority on the rehabilitation and expansion of rural infrastructure as highlighted in the Government's long-term Agriculture Perspective Plan (APP) and Ninth Plan. Furthermore, the Tenth Five-year Plan (2003-2007) defines the road transport sector objectives as being to use resources more efficiently to make transport services accessible nationwide, and refers to the formation of a road maintenance fund, to a greater role of the private sector, and to the construction of rural roads through a decentralized, environment-friendly approach.

This was highlighted in the country programming mission in 1999. It also complements ADB development objective of poverty reduction.

Sustainable increased access to economic and social services, and enhanced social and financial capital for

people in the project area, particularly poor and disadvantaged groups in conflict areas

The overall progress of works is satisfactory. The remaining works can be completed by the loan closing date of 31 October 2011 if the works progress are expedited. In particular, MLD and PCU should give priority in resolving the issue of delegation of project management authority to DTOs and ensuring availability of 10% counterpart funds from the participating districts.

As of 31 December 2010, cumulative contract awards and disbursement are $35.268 million (86%) and $25.012 million (61%) respectively against the elapsed loan period of 88%.

1: Community Development and Rural Livelihood Restoration

1.1 Increased awareness and participation in the planning, implementation, and maintenance of rural infrastructure, and in other development activities by local communities, including the poor and disadvantaged

1.2 New and rehabilitated physical infrastructure provided for community economic and social activities

(supplementary investments)

2. Capacity Building and Decentralized Local Governance

2.1 Capacity for planning, implementing, and maintaining rural infrastructure increased at district, village, and national levels

3. New and upgraded rural transport infrastructure provided using the labor-based, environmentally

sound, participatory construction approach

4: Project Management Services

4.1 Central PCU in Kathmandu established

4.2 District project office established

4.3 Participation and monitoring linkages established

Output 1. Community Development and Rural Livelihood Restoration

Progress: Total of 1,288 nos. of community orientation/awareness raising activities have been conducted with the participation of 41,384 participants (M/F- 22,071/18,388 DAG- 13,220; D/E-10,781) at district and local community level in sub-project area where various stakeholders are participating in the districts during the planning, implementation stage. It is expected that it will be continued during the implementation stage with increased participation of women and ethnic group.

In 16 districts, about 1,231 BGs (total member- 27,171) have been formed with about 38% women members and in other districts the formation process is ongoing. In all district one day orientation/training conducted to BG leader & co-leader. Till now 5,003 person days of leaders & co-leaders have been trained.

Building Group members have been paid about NRs 680.86 million in Taplejung, Solukhumbu, Okhaldhunga, Ramechhap, Lamjung, Myagdi, Jajarkot, Bajhang, Bajura, Jumla, Humla, Mugu, Dolpa, Kalikot, Baitadi and Darchula as a wages for the road construction work.

Community consultation program to inform local people in the districts about DRILP modalities & implementation is ongoing and slowly increasing the participation of women and poor ones in community meetings. Till now 47,465 HHs have participated in such community consultation meetings.

1,615 orientation/trainings (total participants 52,021) are conducted to DRCC/VWRCC/ BGs/DDCs/ DTOs, communities in planning, implementation & monitoring of the main subprojects & supplementary investments in ZOI.

Out of 1,080 BGs in 24 sub-projects, ten sub-project (Solu., Okhaldhunga, Ramechhap, Myagdi, Jajarkot, Bajhang, Bajura, Kalikot, Jumla & Baitadi) have formed Saving & Credit group. Total Saving Credit BGs groups are about 826 nos. All BG members are collecting saving fund from each running bill and saving amount is about NRs. 10,747,446 up to reporting period.

Out of 409 SIS demand collected, conducted survey, design and estimate of about 279 SIS schemes of first road sub-project in 18 districts. About 88 SIS schemes are under construction and about 130 SIS schemes have been completed. The work progress is going on in Rmaechhap, Lamjung, Jajarkot, Bajgang, Bajura, Jumla, Kalikot, Dolpa, Baitadi and Darchula districts.

Output 2: Capacity Building and Decentralized Local Governance Strengthened

Progress: Coordination with various sectoral line agencies is on-going at the district level for the preparation and implementation of the selected sub-projects. Sub-projects are being selected from DTMP priority list which reflects the local priorities. 11 districts have updated DTMPs which was prepared earlier and other 7 districts have recently prepared or in the process of finalization of DTMPs.

Various orientation/training, meeting is being provided to VWRCC member from the beginning. In the beginning of every Fiscal year VWRCC are provided training on planning, budgeting, and implementation of subproject. Total 447 numbers of orientation and meeting was conducted to 1,466 VWRCC members.

Rural Transport Infrastructure Sub sector policy on gender developed and approved. All 18 districts had already established maintenance fund and is expected to be operational from coming fiscal year with the preparation & implementation of Annual Road Maintenance Plan (ARMP) by the districts.

Output 3. New and upgraded rural transport infrastructure provided using the labor-based environmentally sound construction approach

Progress: All the 18 districts already selected 33 main sub-projects (including RCC motorable bridges) for the first/second phase implementation and the tentative length detail survey of about 782 km and design, estimate of the selected subprojects is about 704 km up to reporting period.

In all 18 districts (29 subprojects), construction and rehabilitation work for 496 km rural roads by BGs and contractor is progressing. The status of the subprojects are: walkover survey - 1500 km; detailed survey - 814 km; design and estimate - 764 km, cadastral survey - 33 SP/673 km, Contract/VWRCC Packaging - 579 km; resettlement plan - 31 nos. SP/588 km and IEE report - 31 nos. SP/696 km. In 25 road SP, 183 km new road and 159 km road rehabilitaiton work had been completed

Out of total 184 demanded trail bridges; 113 nos (8,247 rm) completed, 52 (3,489 rm) under construction and remaining 19 are in the process of planning, designing and estimate.

In 16 districts (except Gorkha & Humla), the phase II subprojects are selected. In rest of the districts, phase I subprojects will continue as phase II subprojects. A total of 19 subprojects are selected with the plan of 291.5 km under new construction and 45.5 km as rehabilitation. In 10 districts, work has already been started.

A total length of 14,000 rm of Trail Bridge is planned, out of which 6571 rm has been completed and rest is ongoing.

Works from BGs have been started in 16 districts. Payments records will be maintained through labor card. Till the reporting period, the total payment for civil contract, VWRCC/BGs and material/tools suppliers is NRs 2,280 million out of which NPR 681 million is paid to VWRCC/BGs mostly for unskilled works of which 38 % are women.

Until the reporting period the total of 4,828,770 person-days employment has already been created including trail bridges workers.

Output 4: Project planning, management, and support strengthened

Progress: PCU with full time project coordinator, 2 project engineers (though there is 3 engineers provisioned), and supporting staffs are in place.

DPO engineers in 18 project districts have been fulfilled. The supporting staffs are yet to be fully recruited which makes DPO only partially functional and effective in most of the districts.

At central level suitable building with acceptable communication system has been arranged but at district level the building has been rented to establish DPO with partial procurement of logistical facilities. It is yet to make DPO fully functional and operational with the recruitment of full staff (Accountant, Jr. Engineers, and Computer Operator etc). CISC & DISCs in 8 districts from SDC supports are already engaged and DISCs in 10 non-SDC districts are procured and mobilized.

Output 5: Project Management Services

Progress: Workshop on Project procedure Manual (PPM) was held from time to time. The Chairperson, Vice-chair person, local development Office and DTO chief participated the workshop. During the workshop the participants discussed the progress and other related issues encountered during implementation. Central Implementation Support Consultants engaged under SDC support from March 2005. A new Project coordinator assigned starting January 2007.

All road and trail construction use the full LEP approach, which includes (i) employing unskilled labor instead of construction equipment; (ii) applying design and construction methods that protect the physical environment; and (ii) applying design and construction methods that protect the physical environment; and (iii) incorporating local interests and opinions in the planning, design, and implementation of the works. DoLIDAR has provided adequate technical assistance to ensure that the integrity of the approach is maintained in all Project districts and throughout the entire implementation period. The approach is being considered during the entire planning, selection, survey and design of subproject and implementation of works.

All subprojects have been identified, selected, implemented, and reported in accordance with (i) the environmental procedures and requirements specified in the Environmental Assessment and Review Procedure, (ii) the IEE of each subproject, (iii) the Bank's Environmental Assessment Guidelines, and (iv) relevant national and local environmental laws, regulations and guidelines. IEE in selected subproject is ongoing in parallel to design, survey and reporting.

The Project Coordination Unit will select the central implementation support consultants. Other required consulting services in the districts will be engaged by the District Project Offices in accordance with ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB for engaging consultants. Quality and cost-based selection procedures will be used in recruiting the consultants. A consortium of an international firm in association with domestic firms will provide the services. A total of 515 person-months of consultants may be required, consisting of 90 person-months of international and 425 person-months of domestic consultants. Consulting services also required under the Project's piggybacked technical assistance, Capacity Building in Rural Infrastructure Institutions, are listed separately.

ADB has approved advance action for the recruitment of a Project implementation consultant to facilitate the start-up of project implementation.