Nepal : Decentralized Rural Infrastructure and Livelihood Project - Additional Financing

Transport / Road transport (non-urban)

The impact of the project will be reduced rural poverty in 18 poor and remote hill and mountain districts. The project outcome will be widened access to social services and economic opportunities. The project outcome will be achieved through the following outputs:(i) rural livelihood improved; (ii) capacity and decentralized local governance enhanced; (iii) rural transport infrastructure extended and maintained; and (iv) project management improved.

Output 1: Rural Livelihood Improved

The project will improve community infrastructure in the 18 districts. This will include 90 school buildings and health posts, 36 foot/mule/link trails, 54 water supply and irrigation schemes, 10 micro-hydropower, 8 rural market places, 10 ropeways, and other community infrastructure. The project will provide livelihood related skills training to 3,000 beneficiaries from the project impact zones, of which at least 40% are women and 60%, are from poor and excluded groups. In nine pilot districts, the project will work with existing savings and credit groups, and assist BGs willing to form themselves into formal Savings and Credit Cooperatives and facilitate their access to credit from existing institutional suppliers.

Output 2: Capacity and Decentralized Local Governance Enhanced

The project will improve district and national capacity building to promote improved decentralized governance. The thrust will be on establishing the capacity for sustainable management of rural road networks, strengthening the decentralized management of rural infrastructure, and raising central capacity to support local government bodies.

Output 3: Rural Transport Infrastructure Extended and Maintained

The project will improve 260 kilometers (km) of rural roads in the 18 districts (200 km new and 60 km upgrading). Rural roads of 1,200 km will be maintained in the 18 districts and 6,500 meters of trail bridges will be constructed. The implementation of the road sub-projects will employ labor-based equipment-supported methods, and works performed by BGs will be promoted over construction by contractors. Only those civil works that cannot be executed by the communities may be awarded on the basis of local competitive bidding to contractors.

Output 4: Project Management Improved

Technical support to project implementation will be provided through a Central Implementation Support Consultant (CISC) and District Implementation Support Consultant (DISCs) in each of the 18 project districts.

(i) Average annual income per household has reached to NRs. 186,311 which is higher than targeted annual 10% increment from NRs. 69,500;

(ii) Transportation cost for people and goods reduced to NRs 10.4/km per person from NRs 18/km per person and to NRs 281/tons/km from NRs 491/tons/km respectively;

(iii) Freight volume has increased to 0.645 tons/capita/in 2016, which is more than targeted annual 20% increment from 0.116 tons/capita/year;

(iv) Per capita person trip to district HQ reached 16 from 4.39 trips of base year 2010, which is more than targeted annual 10% increment; and

(v) A total of 9,205 public utilities have come up in subproject area through which 639,764 persons were getting better access to social services.

1. Rural livelihood improved

2. Capacity building and decentralized local governance enhanced

3. Rural transport infrastructure extended and maintained

4. Project management improved

CISC, NNGO and DISCs in 8 SDC supported districts in place. Individual consultants were mobilized instead of firm for 10 districts due to the case was in court.

21 nos. of four wheel vehicles and 37 nos. of motorcycles were purchased and supplied to districts. Other equipment items were also procured as per the need.

A common financial management system was developed for the Ministry of Local Development, DDCs and DOLIDAR.

Gender desk has established in DOLIDAR.

58 central and district level staff participated regional study tour.

Most of the subprojects selected are those indicated in PAM. New roads in Gorkha, Lamjung, Bajhang, Kalikot and Humla are proposed on the basis of districts priority based on DTMP.

DDC, DTO have demonstrated improved capacity to implement infrastructure subprojects, and to deliver development services.

District level project staffs from DDC and district technical office has been capacitated in all aspects of development project planning, management, and implementation.

The project constructed 552 community infrastructures schemes, slightly higher than the revised target of 550 infrastructures.

This is in practice. The workers are aware of it and monitored by DISC & DPO during payment to BG members.

A total of 7,575 beneficiaries trained in livelihood related skills of which 42.91% were women and 60.82% were from poor and excluded groups.

Local NGO has been mobilized for microfinance access facilitation in 9 pilot project districts. Local NGO has completed orientation training related to microfinance access for BGs, existing saving and credit groups. Exposure visit for members of saving credit group organized.

A total of 3,117 orientation, awareness raising, and consultation events were conducted in which 1,08,972 persons 41% women and 68% disadvantaged groups participated.

Constructed 527 km road versus 555 Km revised target and rehabilitated 249 km road against revised target of 255 km. The achievement is 96% of overall road construction and rehabilitation target.

A total of 29,314 running meter trail bridges completed, which was higher than revised target 20,500 running meter. The trail bridge construction target was increased to 26,600 running meter in both investment's MTR

District road maintenance of 1,273 km has been carried out.

This activity was dropped by MTR as recommended in assessment report.