Nepal : Far Western Region Urban Development Project

Water and other urban infrastructure and services / Other urban services - Urban sanitation - Urban solid waste management - Urban water supply

The TA has 2 components: (A) Preparation of the Regional Urban Development Project (RUDP) for ADB Board consideration in Q3 2017 and (B) Analytical work and preparation of the Integrated Urban and Economic Corridor Investment Program (supplementary scope).

Component A: The project preparatory technical assistance (PPTA) is required to undertake due diligence to (i) assess improvements required to urban services in select municipalities in the Far Western Region of Nepal (FWRN) (now referred to as Province 7), and (ii) identify strategic actions to guide the region's urban development and build capacity for operations and maintenance. Phase 1 includes: (i) development of a strategic regional and urban assessment, and Bhimdatta-Jhalari-Pipaladi-Attariya- Dhangadhi urban corridor development strategy; (ii) development of a strategic infrastructure investment plan; (iii) development of the project scope; (iv) rapid assessments for safeguards compliance; (v) socio-economic analysis; (vi) institutional and financial capacity assessments; (vii) designing the implementation arrangements; (viii) defining the scope of work for the loan consultants; and (ix) assisting the executing agency in recruiting the loan consultants. Phase 2 includes supporting the executing agency in preparing the loan documents. The PPTA has also been used to prepare second phase of investments in the municipalities of Biratnagar, Birgunj, Nepalgunj and Siddharthanagar, where ongoing ADB financed urban projects are near completion.

Component B will be used to prepare an investment program based on economic and urban cluster or corridor approach to promote economic growth and sustainable urban development in Nepal. Specific activities will include spatial planning, strategy development and analytical work, preparation of a multi-sector investment plan and policy framework and development of effective coordination, implementation and management arrangements.

Component A: The proposed project was designed to improve services for all segments of the population with direct benefits for about 300,000 people living in Attariya, Bhimdatta, Jhalari-Pipaladi and Dhangadhi. The project also indirectly benefitted the 600,000 people in the Kanchanpur and Kailali Districts. There is a dearth of detailed poverty data for the region, particularly at the city-level. A household socio-economic survey has been undertaken to fill the gap in city-level poverty data and other socioeconomic information, including the prevalence of slums/urban poor settlements. A business survey was also undertaken to understand private sector investment priorities. The project has a performance-based grant component for small community infrastructure and awareness campaigns. The municipalities worked closely with low-income communities to design and prioritize the grant component. Four additional municipalities (Birgunj, Biratnagar, Siddharthanagar, and Nepalgunj) are included in the ensuing project with high degree of readiness. Current loan consultants were used to prepare designs and safeguards documents for these non-FWR municipalities, and undertake consultations.

Component B: This is a multi-sector project and consultations with many different agencies at the center and local level were undertaken. In addition, consultations with private sector were conducted.

Component A: Seven individuals comprising 4 international consultants and 3 national consultants (providing 24.5 person-months of input) were engaged by ADB to undertake the TA activities in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).

Component B: Individual consultants (providing 21 international and 62 national person-months of input) will be engaged by ADB to undertake the supplementary TA activities in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).