|Project Name||Preparing the Secondary Towns Integrated Urban Environmental Improvement Project|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Water and other urban infrastructure and services / Urban policy, institutional and capacity development
|Gender Equity and Mainstreaming|
|Project Rationale and Linkage to Country/Regional Strategy||
The rapid urban population growth, coupled with the Government?s inability to keep pace with the demand for infrastructure and services has led to a series of urban environmental concerns in the secondary towns and constraining the economic growth of Nepal. Urban sector economy plays a key role for providing services and employment opportunities to the rural hinterland.
Nepal?s Country Strategy and Program (CSP) (2005-2009) promotes investments to meet the urgent need for safe water supply and sanitation services in urban areas observing rapid urbanization, aiming to foster inclusive social development. Nepal is ranked 142nd out of 177 countries in terms of human development index shown in the Human Development Report 2007/2008, which clearly warrants further needs of social development. Although proportion of population with access to clean drinking water is reported at rather high 76.6% in 2006 by the Government, figures substantially vary depending on the source, and water supply is still considered insufficient in both volume and quality even in Kathmandu, the capital. Situation for sanitation and solid waste management is even worse, thus necessitating urgent intervention in these sub-sectors. Investments in these sub-sectors in selected secondary towns, catching up with the rapid and haphazard urbanization, are essential for providing clean and developed urban environment in line with the National Urban Policy (NUP) 2007. Moreover, the CSP and NUP address the need to strengthen rural-urban connectivity for promoting broad-based economic growth. Therefore, other urban infrastructure, such as improvement of road network, bus terminals and markets, would play an important role in enhancing rural-urban links.
These approaches are still valid and confirmed in Nepal Country Operations Business Plan (2008-2010) and the latest Country Programming Mission conducted in April 2008, though the political and security context in Nepal has changed since the preparation of the CSP. The proposed project preparatory technical assistance (PPTA) and ensuing Project intends to support the Government for an inclusive social development and broad-based economic growth through provision of environmental and other urban infrastructure in selected secondary towns by taking an integrated approach. The Project will build on the lessons learned under the on-going Urban and Environmental Improvement Project (Loan 1966-NEP), in particular in terms of implementation framework and financial arrangement.
|Impact||Improved quality of life and higher economic growth in selected secondary towns in Nepal.|
|Description of Outcome||Project design and feasibility study that the borrower and ADB have agreed upon.|
|Progress Toward Outcome|
|Description of Project Outputs||
The PPTA plans to deliver the following two main outputs: (i) preparation of feasibility study; and (ii) formulation of appropriate institutional and implementation framework. The first component will strategically select three to five target secondary towns with high economic growth potential and urgent needs for urban environmental improvement and supplementary urban facilities in line with the relevant development policy and strategy, after carefully examining commitment, capacity and readiness of candidate secondary towns. Then, the work is carried out to identify sub-projects and prepare overall investment package, including safeguard reports. The investment package will cover provision of infrastructure for urban environmental improvement mainly for household services such as water supply, sanitation (wastewater treatment), drainage and solid waste management, and supplementary urban facilities such as urban road, bus terminals, city parks and markets, and may include seed money for land pooling. Moreover, economic activities such as cold storage facilities may be considered under the Public-Private Partnership (PPP). Social and poverty assessment will be undertaken and mechanisms for improving access to and quality of basic urban services for the poor will be assessed. The second component will include institutional assessment of central as well as local bodies, from technical, financial and managerial viewpoints. On the basis of review of current status and direction of decentralization/devolution, appropriate institutional and financial arrangements will be proposed, together with comprehensive capacity building programs. These two components will be implemented in tandem in a closely coordinated manner.
The PPTA will be implemented over a period of 8 months in two phases. The first phase of the PPTA will be executed in 3 months, when three to five target secondary towns will be determined. The second phase will be implemented over a period of 5 months for preparation of overall investment package and formulation of institutional and implementation framework.
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Discussions will be held with officials of relevant government ministries and departments, and development partners including NGOs actively engaged in urban environmental improvement.|
|During Project Implementation|
|Consulting Services||15 person-months of international consultants and 32 person-months of national consultants will be engaged from a firm using the simplified technical proposal procedures based on quality- and cost-based selection method, in accordance with ADB's Guidelines on the use of Consultants (2007, as amended from time to time).|
|Responsible ADB Officer||Saito, Norio|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Urban Development and Water Division, SARD|
Ministry of Physical Infrastructure and Transport
Ashok Nath Uprety
Babar Mahal Ministry of Physical Infrastructure and Transport
|Concept Clearance||04 Jul 2008|
|Fact Finding||09 Jul 2008 to 16 Jul 2008|
|Approval||02 Dec 2008|
|Last Review Mission||-|
|PDS Creation Date||23 Jul 2008|
|Last PDS Update||02 Aug 2011|
|Approval||Signing Date||Effectivity Date||Closing|
|02 Dec 2008||29 Dec 2008||29 Dec 2008||31 Oct 2009||28 Feb 2011||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|1,546,000.00||146,000.00||298,000.00||0.00||0.00||0.00||1,990,000.00||02 Dec 2008||831,072.25|
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