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 Name||Subregional Transport Facilitation (NEP)|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Regional integration
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
|Sector / Subsector||
Transport / Road transport (non-urban)
|Gender Equity and Mainstreaming||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.
|Description of Outcome|
|Progress Toward Outcome|
|Description of Project Outputs|
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|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 $100,000.|
|Responsible ADB Officer||Shrestha, Amulya Das|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Nepal Resident Mission|
Ministry of Physical Infrastructure and Transport
Mr. Purna. P. Kadariya
|Concept Clearance||07 Mar 2004|
|Fact Finding||24 May 2004 to 04 Jun 2004|
|MRM||03 Aug 2004|
|Approval||04 Nov 2004|
|Last Review Mission||-|
|PDS Creation Date||17 Nov 2006|
|Last PDS Update||28 Jul 2010|
|Approval||Signing Date||Effectivity Date||Closing|
|04 Nov 2004||19 Jan 2005||10 May 2005||01 Jul 2010||-||18 Jul 2016|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||26.70||Cumulative Contract Awards|
|ADB||20.00||04 Nov 2004||17.33||0.00||99%|
|Cofinancing||0.00||04 Nov 2004||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.
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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.
|Title||Document Type||Document Date|
|Subregional Transport Facilitation Project (NEP)||Environmental and Social Monitoring Reports||Feb 2009|
|Subregional Transport Facilitation (NEP): Land Acquisition and Resettlement Plan for Bhairahawa - Bhumahi Road Upgrading Sub-Project||Resettlement Plans||Jan 2007|
|Subregional Transport Facilitation: Land Acquisition and Resettlement Plan for Birgunj-ICD Sub-Project and Bhairahawa-Parasi Sub-Project||Resettlement Plans||Aug 2004|
Evaluation Documents See also: Independent Evaluation
None currently available.
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