Nepal: Integrated Urban Development Project

Sovereign Project | 42161-013 Status: Active

ADB is helping Nepal improve access basic urban infrastructure and services in the municipalities of Dharan, Janakpur, Nepalgunj, and Siddharthanagar. The project will implement integrated urban environmental improvements, including drainage systems, solid waste management facilities, and urban roads. It will also undertake community development programs and strengthen the capacity of agencies.

Project Details

Project Officer
Sharma, Laxmi South Asia Department Request for information
Country
  • Nepal
Modality
  • Grant
  • Loan
Sector
  • Transport
  • Water and other urban infrastructure and services
 
Project Name Integrated Urban Development Project
Project Number 42161-013
Country Nepal
Project Status Active
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0284-NEP: Integrated Urban Development Project
concessional ordinary capital resources lending / Asian Development Fund US$ 12.00 million
Loan 2851-NEP: Integrated Urban Development Project
concessional ordinary capital resources lending / Asian Development Fund US$ 44.80 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Transport - Urban roads and traffic management

Water and other urban infrastructure and services - Other urban services - Urban flood protection - Urban policy, institutional and capacity development - Urban solid waste management - Urban water supply

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The project will provide the population in the municipalities of Dharan, Janakpur, Nepalgunj, and Siddharthanagar with better access to municipal infrastructure and services in a socially inclusive manner. In accordance with the priorities of each municipality, integrated urban environmental improvements, including drainage systems, solid waste management (SWM) facilities, and urban roads, will be implemented in Janakpur, Nepalgunj, and Siddharthanagar municipalities. A water supply development subproject will be implemented in Dharan municipality. The project will also undertake community development programs (CDPs), focusing primarily on poverty pockets in the municipalities and communities that may not benefit directly from major infrastructure improvement subprojects. Gender equality and social inclusion (GESI) will be mainstreamed in all subprojects in the municipalities, and the capacity to address GESI in the Ministry of Physical Planning and Works (MPPW) will be strengthened by establishing an appropriate institutional structure and mechanisms for GESI mainstreaming.
Project Rationale and Linkage to Country/Regional Strategy The pace of urbanization in Nepal has increased markedly during 2001_2011 with an urban population growth rate of 3.4% per annum, compared with national population growth of 1.4% per annum. In 2011, 17% of the population was estimated to live in urban areas, up from 9.2% in 1991 and 13.9% in 2001. While global experience clearly demonstrates that urbanization is an important driver of economic development, the potential has not been adequately tapped in Nepal. In the absence of a stringent policy regulating and managing growth, uncontrolled and haphazard urban development has created numerous problems, including deficiencies in basic urban services; environmental degradation; encroachment on public land, forests, and river banks; and sprawling settlement development. Most municipalities in Nepal lack properly engineered and operated sanitary landfills, and have limited and intermittent water supply services, poorly maintained road infrastructure, and inadequate drainage systems that cause recurrent waterlogging problems, mainly in the Terai. The Local Self Governance Act mandates a wide range of functions and responsibilities to municipalities, but the lack of financial and qualified human resources and a low level of institutional capacity make providing infrastructure facilities commensurate with the growing demand for services a major challenge. Poor health, caused by the poor urban environment, saps economic growth by reducing labor productivity and educational attainment. Disease, associated economic burden, and premature death disproportionately affect the poor and vulnerable.
Impact Improved urban environment in the municipalities of Dharan, Janakpur, Nepalgunj, and Siddharthanagar

Project Outcome

Description of Outcome Population in project municipalities have inclusively better access to improved municipal infrastructure and services.
Progress Toward Outcome

Contracts for drainage and road subprojects in Siddharthanagar and Janakpur are being implemented. Physical progress of Siddahrthanangar roads and drainage package-82%, Nepalgunj roads and drainage package-completed, Janakpur roads and drainage package--17%

ISWM package for Siddharthanagar and Nepalgunj have already been awarded (18 April 2016 and 13 June 2016, respectively).

Contract for Dharan water supply project was awarded in March 2015 and the physical progress reported so far is 67%. Achievement towards outcome will be assessed in due course of time.

Implementation Progress
Description of Project Outputs

1. Reliable municipal infrastructure developed

2. Community development programs undertaken and GESI capacity strengthened.

3. Project management and administration supported.

Status of Implementation Progress (Outputs, Activities, and Issues)

1. Reliable municipal infrastructure developed

1.1) By June 2017 (for all indicators): 107 km of drainage lines rehabilitated and 49 km of new drainage lines constructed in Janakpur, Nepalgunj, and Siddharthanagar.

Status: A total of 96.06 km drain works has been completed.

Siddharthanagar: 31.16 km

Nepalgunj: Completed.

Janakpur: 5.5 kms completed.

1.2) 36 km of new or upgraded roads and lanes improved in Janakpur, Nepalgunj, and Siddharthangar.

Status:

Total of 13.02 kms completed.

Nepalgunj: 7.7 km

Siddharthanagr: 5.3 km

Janakpur: Roads improvement works not yet started.

1.3) Sanitary landfill facilities with a service life of about 15 years with resource recovery system developed in Janakpur, Nepalgunj, and Siddharthanagar.

Status:

Siddharthanagar: Work not yet commenced due to local issues.

Nepalgunj:

Contract awarded on June 2016. Work commenced.

Janakpur:

Procurement process is not yet started

1.4) Modality for private sector participation in SWM assessed by 2015.

Status:

Provision has been made in the bidding document to operate SLS by the contractor for a year before handing over to the operator.

1.5) 5,000 households are newly served with and 12,000 households are receiving improved water services in Dharan.

Status:

225 km pipe laying completed, (202.866 km HDPE pipe,

21.267 km of DI pipe; and 0.86 km of GI pipe). Construction of RVTs, 2 completed and 1 under construction.

1.6) 90 km of new water supply pipes installed or upgraded in Dharan

Status:

Same as 1.5 above.

2. Community development programs undertaken and GESI capacity strengthened.

2.1) 100% of poor settlements in the project municipalities benefit from the community development program

Status:

Project implementation is being done in this direction by mobilizing NGOs in Dharan, Janakpur, Siddharthanagar and Nepalgunj Municpalities.

2.2) At least 33% of representatives on committees established for community development programs are women.

Status:

85 TLOs (14 Dharan, 30 Janakpur, 21 Siddharthanagar and 20 Nepalgunj); and

3 Users committees (1 each at Dharan, Janakpur and Siddharthanagar) formed in the project municipalities/SMCs have more than 33% of women representatives

2.3) 50% of participants in skills and entrepreneurship development programs are women.

Status: 68% women participants out of a total 797 participants

Dharan (89% women, out of 396),

Siddharthanagar (29% female out of 191), Janakpur (73% female out of 90), and Nepalgunj (54% female out of 120)

2.4) GESI operational manuals, toolkits, and checklists developed and used in MPPW and its departments.

Status: GESI operational guidelines finalized. GESI project based Log Frame developed. GESI operational guideline based toolkits developed. GESI related brochure prepared. They are being used

2.5 Budget for GESI operation allocated in MPPW separately from the project.

Status: Budget for GESI operation allocated in MoUD.

3. Project management and administration supported.

3.1 PCO and PIUs are fully staffed on time.

Status: PCO and PIUs formed and fully staffed.

3.2 Quarterly progress reports and audit reports are of satisfactory quality and submitted on time.

Status: Audit report and quarterly reports are being submitted timely and are of satisfactory quality.

3.3 Project is implemented on time and within budget.

Status: Project is performing within the approved budget despite delay in procurement process of Janakpur sub projects.

3.4 Staff skills on GESI upgraded through at least five trainings for municipal staff (target of 20% female participants).

Status: Three trainings completed.

28% female participants out of 107.

Nepalgunj-14% out of 41, Janakpur-36% out of 25, and Dharan-36% out of 41.

Training for Siddharthanagr is being prepared.

Geographical Location

Safeguard Categories

Environment B
Involuntary Resettlement B
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects

The project is classified "B" in accordance with ADB's Safeguard Policy Statement (2009) and therefore four Initial Environmental Examinations (IEEs) including Environmental Management Plan (EMP) were prepared each for Dharan, Janakpur, Siddharthanagar, and Nepalgunj Subproject. Findings of the IEE and EMP indicate that the project is not likely to cause significant adverse environmental impact since no forest areas, wildlife sanctuaries, national parks, biodiversity-critical habitats, or similar eco-sensitive areas will be traversed or lie within the corridors of impact as defined in the environmental assessment.

Most impacts are likely to occur during construction stage, associated with earth movement, embankment shaping, paving, heavy equipment operation and unpaved-road travel. These impacts are temporary in nature, and mitigating measures are being taken and regularly monitored by DUDBC and supervision consultants.

The IEEs and EMPs for storm water drainage and road for Siddharthanagar and Nepalgunj, and water supply in Dharan have been updated and approved by MoUD. IEE for storm water drainage and road,Janakpur submitted to MoUD for approval. However, EIA will be required in the case of solid waste management sub-project as per the requirement of Government of Nepal (GoN). Final EIA eport is submitted to MoPE and at final stage of approval for Siddharthanagar, and submitted to MoUD (to be approved by MoPE) for Nepalgunj for approval process.

No irreversible, diverse or unprecedented environmental impacts are expected to occur.

Involuntary Resettlement The project is classified "B" in accordance with ADB's Safeguard Policy Statement. It has been developed with a view to minimize land acquisition and involuntary resettlement. Where possible, construction activities will take place within the existing right of way. Out of seven subprojects, three SWM sub projects will have land acquisition impacts and insignificant resettlement impacts will have in three road and drainage sub projects. For Dharan Submetropolitan city, resettlement plan has been prepared based on detailed design. Existing resettlement plans for Siddharthanagar and Nepalgunj municipalities prepared during PPTA were updated and submitted to ADB. Resettlement plan for storm water drainage and road in Janakpur and water supply in Dharan has been submitted to ADB. Revised updated Resettlement Plan for Janakpur, Siddharthanagar and Nepalgunj are under preparation.
Indigenous Peoples The project is classified "C" in accordance with ADB's Safeguard Policy Statement. Social impact assessments confirmed that indigenous people will not be affected more than the rest of the population and will benefit equally from the socioeconomic opportunities created by the project. A combined indigenous peoples plan and resettlement plan was prepared for three subprojects. Adequate compensation provisions have been made in the combined plan to mitigate the impacts on indigenous people.
Stakeholder Communication, Participation, and Consultation
During Project Design

Urban services are limited outside Kathmandu Valley. Physical limitations restrict further development in the valley, and there is an urgent need to improve the environment in potential urban centers to promote social and economic development in other regions of Nepal. The government, represented by the Department of Urban Development and Building Construction (DUDBC), developed the criteria for selecting strategically important towns. Dharan, Janakpur, Nepalgunj, and Siddharthanagar were chosen for the project on the basis of (i) economic growth potential, (ii) demand for urban services, and (iii) urban management capacity. The project directly addresses and conforms to the development policy of Nepal, as expressed in the NUP and Three-Year Plan Approach Paper, by improving the environment of urban centers that work as catalysts for economic development, which will help contribute to the _employment-centric, equitable, and inclusive economic growth_ emphasized by the approach paper.

Urban infrastructure and facilities have tended not to fully recognize social differentials in the needs of women, the poor, and excluded groups. People living in municipal poverty pockets experience discrimination based on gender, caste, and ethnicity, and multiple exclusions constrain their progress and access to services. Their participation in community activities is limited due to lack of access to information and resources, although progress has been made through support for their empowerment and mobilization from various NGOs and development partners. To be effective, urban development must integrate GESI.

During Project Implementation

The project is in line with the Nepal country partnership strategy of the Asian Development Bank (ADB), which rests on four pillars: broad-based and inclusive economic growth, inclusive social development, governance and capacity building, and climate change adaptation and environmental sustainability. Reflecting lessons from similar projects, the project (i) focuses on a small number of physically integrated components, to simplify project administration and optimize inter-sector linkages; (ii) is confined to larger municipalities with relatively higher technical and financial capacity to implement the project and create discernable development impacts; (iii) fully involves stakeholders, including communities, in project identification and design from an early stage; (iv) provides capacity development support before project implementation; and (v) addresses enforcement of appropriate regulations as an essential element of managing urban infrastructure effectively.

Therefore as envisioned by the Project, the project coordination office and project implementation units are doing consultation with the concerned stakeholders as and when needed and also been disseminating the relevant project related information to the public. Also due consideration has been given for the meaningful participation of the concerned project stakeholders in reaching project related decisions.

Business Opportunities

Consulting Services Consulting firms have been recruited using ADB's quality- and cost-based selection procedure in accordance with Guidelines on the Use of Consultants by the Asian Development Bank. It was envisaged that about 10 person-months of international consultants and 1,500 person-months of national consultants will be required for the Project. Consultants have been carrying out design, construction and supervision of three drainage works and three road works; three solid waste management works, and one water supply work including one project management and one GESI mainstreaming
Procurement 6 ICB out of 7 packages are awarded one for Dharan water supply Improvement; two for solid waste management, and three for storm water drainage and road improvement in Janakpur, Siddharthanagar and Nepalgunjj.While procurement of one package for solid waste management of Janakpur has been halted due to opposition to originally proposed landfill site at Fulgama. Alternative site at Bhoyal owned by Guthi Trust (Govenrnent Trust) has been identified and finalized

Responsible Staff

Responsible ADB Officer Sharma, Laxmi
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Ministry of Urban Development
Mr. Binod Chandra Jha
Singhadurbar, Kathmandu, Nepal

Timetable

Concept Clearance 15 Dec 2010
Fact Finding 24 Aug 2011 to 06 Sep 2011
MRM -
Approval 14 Feb 2012
Last Review Mission -
Last PDS Update 06 Mar 2017

Grant 0284-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Feb 2012 08 May 2012 04 Jul 2012 31 Dec 2017 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 18.50 Cumulative Contract Awards
ADB 12.00 14 Feb 2012 7.21 0.00 60%
Counterpart 6.50 Cumulative Disbursements
Cofinancing 0.00 14 Feb 2012 5.45 0.00 45%

Loan 2851-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Feb 2012 08 May 2012 04 Jul 2012 31 Dec 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 65.40 Cumulative Contract Awards
ADB 44.80 14 Feb 2012 32.47 0.00 82%
Counterpart 20.60 Cumulative Disbursements
Cofinancing 0.00 14 Feb 2012 17.38 0.00 44%

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 Public Communications Policy (PCP) 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
Integrated Urban Development Project: Procurement Plan Procurement Plans Feb 2015
Integrated Urban Development Project Project/Program Administration Manual May 2013
Project Agreement for Integrated Urban Development Project Project/Program Agreements May 2012
Financing Agreement for Integrated Urban Development Project Financing Agreement May 2012
Integrated Urban Development Project Project/Program Administration Manual Jan 2012
Integrated Urban Development Project: Gender Equality and Social Inclusion Action Plan Gender Action Plans Jan 2012
Integrated Urban Development Project Reports and Recommendations of the President Jan 2012
Integrated Urban Development Project Summary Poverty Reduction and Social Strategies Jan 2012
Integrated Urban Development Project Design and Monitoring Frameworks Oct 2011
Integrated Urban Development Project Initial Poverty and Social Analysis Dec 2010
Integrated Urban Development Initial Poverty and Social Analysis Nov 2010

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
Integrated Urban Development Project: Environmental Monitoring Report (July-December 2016) Environmental Monitoring Reports Jan 2017
Integrated Urban Development Project: Semiannual Social Monitoring Report (January-June 2016) Social Monitoring Reports Jul 2016
Integrated Urban Development Project: Environmental Monitoring Report (January-June 2016) Environmental Monitoring Reports Jul 2016
Integrated Urban Development Project: Environmental Monitoring Report (July-December 2015) Environmental Monitoring Reports Mar 2016
Integrated Urban Development Project: Environmental Monitoring Report (July-December 2014) Environmental Monitoring Reports Feb 2015
Integrated Urban Development Project: Environmental Monitoring Report (January - June 2014) Environmental Monitoring Reports Aug 2014
Integrated Urban Development Project: Semi-Annual Social Safeguard Monitoring Report (January-June 2014) Social Monitoring Reports Jul 2014
Integrated Urban Development Project: Environmental Monitoring Report (July-December 2013) Environmental Monitoring Reports Feb 2014
Integrated Urban Development Project: Semi-Annual Social Safeguard Monitoring Report July-December 2013 Social Monitoring Reports Dec 2013
Integrated Urban Development Project: Resettlement Framework (as of Board approval) Resettlement Frameworks Oct 2011
Integrated Urban Development Project: Draft Resettlement Plans for Janakpur Resettlement Plans Oct 2011
Integrated Urban Development Project: Environmental Assessment and Review Framework (as of Board approval) Environmental Assessment and Review Framework Oct 2011
Integrated Urban Development Project: Draft Initial Environmental Examinations for Dharan Environmental Assessment and Measures Oct 2011
Integrated Urban Development Project: Nepalganj Municipality (Draft) Resettlement Plans Sep 2011
Integrated Urban Development Project Environmental Assessment and Review Framework Sep 2011
Integrated Urban Development Project: Siddharthanagar Municipality (Draft) Resettlement Plans Sep 2011
Integrated Urban Development Project - Siddharthanagar Municipality (Draft) Environmental Assessment and Measures Sep 2011
Integrated Urban Development Project - Nepalganj Municipality (Draft) Environmental Assessment and Measures Sep 2011
Integrated Urban Development Project Resettlement Frameworks Sep 2011
Integrated Urban Development Project: Janakpur Municipality (Draft) Resettlement Plans Sep 2011
Integrated Urban Development Project - Janakpur Municipality (Draft) Environmental Assessment and Measures Aug 2011
Integrated Urban Development Project - Dharan Municipality (Draft) Environmental Assessment and Measures Aug 2011

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) 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.

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