Nepal : Subregional Transport Facilitation (NEP)

Sovereign Project | 37027-013

The principal objective of the Project is to reduce transportation costs associated with Nepal's imports and exports, and to improve the efficiency and organization of transit trade documentation and data exchange. It also aims at promoting sub-regional economic cooperation through improved trade facilities and transit logistics under the SASEC Program.

Project Details

  • Project Officer
    Shrestha, Amulya Das
    South Asia Department
    Request for information
  • Country/Economy
    Nepal
  • Modality
  • Sector
    • Transport
Project Name Subregional Transport Facilitation (NEP)
Project Number 37027-013
Country / Economy Nepal
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2097-NEP: Subregional Transport Facilitation (NEP)
Asian Development Fund US$ 20.00 million
Strategic Agendas Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Private sector development
Sector / Subsector

Transport / Road transport (non-urban)

Gender Some gender elements
Description The principal objective of the Project is to reduce transportation costs associated with Nepal's imports and exports, and to improve the efficiency and organization of transit trade documentation and data exchange. It also aims at promoting sub-regional economic cooperation through improved trade facilities and transit logistics under the SASEC Program.
Project Rationale and Linkage to Country/Regional Strategy

Transit logistics and trade facilities play a critical role for economic development and cooperation for Nepal as well as the SASEC subregion. To achieve economic development through international trade, physical and procedural obstacles hindering the competitiveness of export industries need to be reduced to the largest extent possible to reduce major barriers to foreign markets; promote a greater integration of developing countries in the global economic and attract foreign direct investment to least developed countries. Nepalese tradeable goods face one of the highest transport costs in the region, impeding the country's ability to improve competitiveness of its export goods and expand foreign trade. To improve reliability of delivery of goods and reduce transport cost, it is necessary to have rationalized transit agreements, improved border roads, transit practice and facilities, simplified and modernized customs clearance procedures and documentations, and modern data exchange system. Consistent with ADB's policies and HMGN's 10th Five-year Plan, the project is part of international efforts to help Nepal to improve transit logistics and trade facilitation that can be implemented in the country and yet it will have a big impact on trade and transit transport development between Nepal and other countries within SASEC to promote economic growth and poverty reduction.

The ADB-sponsored South Asia Subregional Economic Cooperation (SASEC) program comprising Bangladesh, Bhutan, India and Nepal developed action programs for subregional economic cooperation in six priority sectors: transport, energy, tourism, environment, trade, investment and private sector cooperation and information and communication technology. The Transport Working Group under the SASEC program identified six major subregional transport corridors, two involving Nepal, that need to remove institutional and physical impediments (choke points) to enhance subregional transport connectivity and economic integration.

Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Safeguard Categories
Environment A
Involuntary Resettlement
Indigenous Peoples
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services About 37 person-months of international consultants and 301 person-months of domestic consultants will be required to assist the executing agency in (i) institutional capacity building with documents preparation and specification recommendation with respect to equipment for institutional capacity building component, and training on automation or cargo clearance improvement component; (ii) detailed design, bid preparation, procurement and construction supervision, and contract administration for two access roads and ICD, (iii) study and recommendation of toll level and collection methodology, and (iv) assisting the executing agency in monitoring and verifying resettlement action plans, environment management plans, HIV/AIDS and human trafficking program. Consulting firm will be recruited using ADB's quality- and cost-based selection procedure in accordance with ADB's Guidelines on the Use of Consultants and other arrangements satisfactory to ADB on the engagement of domestic consultants.
Procurement All civil works contract packages will be procured in accordance with ADB's Guidelines for Procurement following international competitive bidding procedures. Equipment for international shopping will be accepted for supply contracts valued at less than $500,000, and direct purchase will be applied for small or off-the-shelf items valued at less than $100,000.
Responsible ADB Officer Shrestha, Amulya Das
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission (NRM)
Executing Agencies
Ministry of Physical Infrastructure and Transport
Timetable
Concept Clearance 07 Mar 2004
Fact Finding 24 May 2004 to 04 Jun 2004
MRM 03 Aug 2004
Approval 04 Nov 2004
Last Review Mission -
PDS Creation Date 17 Nov 2006
Last PDS Update 28 Jul 2010

Loan 2097-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
04 Nov 2004 19 Jan 2005 10 May 2005 01 Jul 2010 - 18 Jul 2016
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 26.70 Cumulative Contract Awards
ADB 20.00 17 Jun 2022 17.53 0.00 100%
Counterpart 6.70 Cumulative Disbursements
Cofinancing 0.00 17 Jun 2022 17.53 0.00 100%

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Subregional Transport Facilitation Project Project/Program Completion Reports Dec 2011
Subregional Transport Facilitation Project Reports and Recommendations of the President Oct 2004

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.


Evaluation Documents See also: Independent Evaluation

Title Document Type Document Date
Nepal: Subregional Transport Facilitation Project Validations of Project Completion Reports Dec 2012

Related Publications

None currently available.


The Access to Information Policy (AIP) 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.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.