Nepal : Regional Urban Development Project
The project will improve the resilience and delivery of urban services and facilities in eight municipalities in the southern Terai region of Nepal bordering India, including four municipalities from the less-developed Province 7 in far western Nepal. The project will support municipal infrastructure investments, urban planning, and institutional strengthening.
The eight cities have high population growth rates, are severely lacking investment, and are experiencing a high level of environmental degradation.
Project Details
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Project Officer
Giri, Naresh
South Asia Department
Request for information -
Country/Economy
Nepal -
Modality
-
Sector
- Water and other urban infrastructure and services
Related Projects
| Project Name | Regional Urban Development Project | ||||||||
| Project Number | 47252-002 | ||||||||
| Country / Economy | Nepal |
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| Project Status | Active | ||||||||
| Project Type / Modality of Assistance | Loan Technical Assistance |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth Regional integration |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Private sector development |
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| Sector / Subsector | Water and other urban infrastructure and services / Other urban services - Urban flood protection - Urban policy, institutional and capacity development - Urban sanitation - Urban solid waste management - Urban water supply |
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| Gender | Effective gender mainstreaming | ||||||||
| Description | The project will improve the resilience and delivery of urban services and facilities in eight municipalities in the southern Terai region of Nepal bordering India, including four municipalities from the less-developed Province 7 in far western Nepal. The project will support municipal infrastructure investments, urban planning, and institutional strengthening. The eight cities have high population growth rates, are severely lacking investment, and are experiencing a high level of environmental degradation. |
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| Project Rationale and Linkage to Country/Regional Strategy | The project is aligned with Nepal's Fourteenth Plan and with the National Urban Policy 2007, which aim for a balanced national urban system by developing centers of growth that provide an alternative to the Kathmandu Valley. The project is also aligned with Nepal's National Urban Development Strategy (2017), which also aims for regionally balanced development, as well as more planned and sustainable urbanization. The project is in line with ADB's country partnership strategy, 20132017 for Nepal, which supports the government's development objective of sustainable, broad-based, and inclusive economic growth through the development of urban infrastructure and better access to basic services. | ||||||||
| Impact | Sustainable, inclusive, and resilient urban areas developed; and balanced and prosperous sub-national urban system achieved (National Urban Development Strategy) |
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| Project Outcome | |
|---|---|
| Description of Outcome | Quality, sustainability, and disaster resilience of urban services, and competitiveness in eight municipalities of the Terai region improved |
| Progress Toward Outcome | Contract Agreement was done for ISWM of Suklaphanta. and Godavari. Financial evaluation of bid was underway for Dhandhadi ISWM. Bheemdatta ISWM is dropped from the construction list in recent MTR. |
| Implementation Progress | |
| Description of Project Outputs | Urban infrastructure in eight municipalities constructed or rehabilitated with climate-resilient and sustainable designs Municipality capacity strengthened Project preparation capacity improved |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Contract have been awarded to construct 202.23 KM of urban road and 151.80 Km of footpaths. Works of about 174.58 KM of urban roads and 68.56 KM footpaths has been completed.Contract have been awarded to construct 20.082 KM of sewer and works of about 18.28 KM has been completed. 250.11 KM of storm water drains constructed.2,970 households connected to sewerage system in Biratnagar.For ISWM Packages:i) Dhangadhi: FBER are under review.ii) Suklaphanta: Contract Awarded.iii) Godavari: : Contract Awarded.iv) Bheemdutt: In MTR , it was dropped from the project list.Up to 4th year (077/78) period expenses in socio-economic and GESI related activities under PBSEDP total expenses is Rs. 152,784,238.58 or 41.01%. Implemented some activities from remaining amount in 5th year also. PCO has fixed grant ceiling (Total Rs. 105,000,000.0) based on performance evaluation of 4th yr period.Biratnagar has prepared O & M plan. Consultants of both P7 and non P7 municipalities are preparing and updating O&M plan for other 7municipalities.5 days TOT has been recently organized for 41 municipal staffs (53.6% women) of P7 project municipalities.LTUDP Reports of all P7 municipalities finalized. Only Bheemdatt municipality endorsed it; bylaws will be prepared by IDC.Organizational structure finalized but yet to approve in Dhanghadi and Bheemdutt Municipalities. Social Development Section approved and established in both municipalities.GIS house numbering system report finalized. House numbering plates and street naming process in progress.Computerized property tax systems installed in Godawari and Biratnagar.The physical progress of construction of municipal official building of Godawari and Suklaphanta is 97.67% and 95.51% respectively.Urban Sector Project Bank Guidelines prepared but yet to endorse and implement.Consulting firm recruitment for East Urban Corridor and West Urban Corridor was recently done and consultants are just mobilized. Both consultants has submitted Inception Reports for their respective corridor. |
| Geographical Location | Bhimdatta N.P., Biratnagar, Birgunj, Dhangadhi, Godawari, Nepalgunj, Royal Shuklaphanta, Siddharthanagar |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | B |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | An environmental assessment review framework and four initial environmental examinations (IEEs) with environmental management plans were prepared in accordance with ADB's Safeguard Policy Statement (2009) and government laws. IEEs will be updated based on the detailed design. The documents were disclosed on ADB's website and relevant information disclosed to project communities. The IEEs concluded that no significant adverse impacts are anticipated. Any impacts will be mitigated through measures outlined in the environmental management plans. The drainage, road, and SWM works will reduce water and air pollution. The PCO will submit environment reports to ADB semiannually. Consultation and public participation will continue throughout implementation, and any environmental grievances will be handled in accordance with the grievance redress mechanism established for the project. |
| Involuntary Resettlement | The land acquisition and involuntary resettlement impact assessment confirms that impacts are not significant. The land acquisition process for a total of 30 hectares required for landfill sites has begun, and 65% is government land. A total of 27 households (172 people) are expected to be affected, of which 15 households (92 persons) will be significantly affected because they lose 10% or more of their productive assets. The land acquisition will affect three indigenous households. A combined resettlement and indigenous peoples plan (CRIPP) and three due diligence reports were prepared in accordance with ADB's Safeguard Policy Statement to mitigate negative impacts. The resettlement impacts, mitigation measures, policy provisions, and SWM subproject details and related impacts were discussed with potentially affected persons. Meaningful consultations shall continue throughout implementation. |
| Indigenous Peoples | Indigenous peoples live in the project area. No confirmed negative impacts were identified, except for the acquisition of land belonging to three indigenous households for the landfill site in Dhangadhi. Indigenous peoples living in the project area are likely to experience positive impacts thanks to better roads, drainage, SWM, and sanitation. The performance-based socioeconomic development program (PBSEDP) will include an awareness program for indigenous peoples and their participation will be ensured during subproject design and implementation. A combined resettlement and indigenous peoples planning framework was prepared in accordance with ADB's Safeguard Policy Statement (2009) and applicable laws. If required, the framework will guide the preparation of resettlement and indigenous peoples plans during the detailed design. The PIUs were trained on the framework. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Project design was participatory, and included household survey to inform design, and several consultations with a broad range of stakeholders. |
| During Project Implementation | The proposed project includes municipal level committee with broad interests represented. Intensive community consultations will also be carried over to the project implementation stages and user awareness will be included as an important activity. |
| Business Opportunities | |
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| Consulting Services | Consulting services will be carried out using ADB's Consulting Guidelines (2013, as amended from time to time). Advance contracting and retroactive financing (where required) will be used. Seven consultancy packages have been published. |
| Procurement | All procurement under the project shall be carried out using ADB's Procurement Guidelines (2015, as amended from time to time). Advance contracting and retroactive financing up to 20% of the loan amount (where required). Four ICB packages have been published. |
| Responsible ADB Officer | Giri, Naresh |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Nepal Resident Mission (NRM) |
| Executing Agencies |
Ministry of Urban Development |
| Timetable | |
|---|---|
| Concept Clearance | 16 Dec 2014 |
| Fact Finding | 30 Jan 2017 to 10 Feb 2017 |
| MRM | 19 May 2017 |
| Approval | 22 Sep 2017 |
| Last Review Mission | - |
| Last PDS Update | 20 Dec 2022 |
Loan 3566-NEP
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 22 Sep 2017 | 27 Nov 2017 | 08 Dec 2017 | 30 Jun 2023 | 30 Jun 2025 | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 206.10 | Cumulative Contract Awards | |||
| ADB | 150.00 | 31 Oct 2023 | 107.89 | 0.00 | 78% |
| Counterpart | 56.10 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 31 Oct 2023 | 112.40 | 0.00 | 81% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | Satisfactory | Satisfactory |
TA 9384-NEP
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 22 Sep 2017 | 17 Oct 2017 | 17 Oct 2017 | 30 Jun 2020 | 15 Jun 2022 | 19 Aug 2022 |
| Financing Plan/TA Utilization | Cumulative Disbursements | |||||||
|---|---|---|---|---|---|---|---|---|
| ADB | Cofinancing | Counterpart | Total | Date | Amount | |||
| Gov | Beneficiaries | Project Sponsor | Others | |||||
| 1,000,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,000,000.00 | 31 Oct 2023 | 837,270.97 |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | Satisfactory | Satisfactory |
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.
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
None currently available.
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.
ADB to Help Improve Urban Services Delivery, Infrastructure in Nepal
ADB's Board of Directors has approved a $150 million loan to help improve the delivery of urban services and infrastructure in the southern parts of Nepal, including in the far west.
Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| Dhangadhi Sub-Metropolitan City - Construction, Completion and Operation & Management of Integrated Solid Waste and Fecal Sludge Management Subproject | Loan 3566 | 03 Jan 2023 | Sichuan Province Geological Engineering Complex Co. Ltd. | China | Ministry of Urban Development | 7,303,720.71 | 5,271,856.97 |
| Suklaphanta Municipality - Construction, Completion and Operation & Management of Integrated Solid Waste and Fecal Sludge Management Subproject | Loan 3566 | 19 Dec 2022 | Raman Construction Pvt. Ltd. | Dhanghadi-02, Kailali | Ministry of Urban Development | 2,292,855.74 | 1,622,491.97 |
| ISWM Godavari - Construction, Completion and Operation & Management of Integrated Solid Waste and Fecal Sludge Management Subproject in Godavari Municipality | Loan 3566 | 23 Aug 2022 | M/S Sichuan Province Geological Engineering Complex Co. Ltd. | People's Republic of China | Ministry of Urban Development | 4,055,083.61 | 2,887,126.14 |
| Prefeasibility, Feasibility and Detail Project Report Preparation of Eastern Urban Corridor Development Project | Loan 3566 | 12 Apr 2022 | SMEC International Pty Ltd (Australia) in association with B.N. Consultancy Pvt. Ltd. (Nepal) and ITECO Nepal Pvt. Ltd. (Nepal) | Kathmandu, Nepal | Ministry of Urban Development | 1,775,295.87 | 1,766,499.78 |
| Pre-feasibility, Feasibility and Detail Project Report Preparation for Western Urban Corridor Development Project | Loan 3566 | 18 Mar 2022 | Dohwa Engineering Co Ltd. (Republic of Korea) in association with ERMC (P.) Ltd. (Environment and Resource Management Consultant) Nepal, SILT Consultants Pvt. Ltd. (Nepal) and Digicon Engineering Consult Pvt. Ltd. (Nepal) | Kathmandu, Nepal | Ministry of Urban Development | 2,435,707.40 | 2,435,707.40 |
| SUKLAPHANTA MUNICIPALITY - ROAD & DRAINAGE CONSTRU CTION | Loan 3566 | 25 Sep 2020 | RAMAN-KS JV | DHANGHADI NEPAL NEPAL | Ministry of Urban Development | 2,374,478.84 | 1,687,892.63 |
| GODAWARI MUNICIPALITY - CONSTRUCTION AND REHABILAT ION OF ROAD, DRAINAGE, FOOTHPATH AND ROAD FURNITU RE | Loan 3566 | 30 Jul 2020 | KALIKA CONSTRUCTION PVT LTD | BHARATPUR CHITWAN NEPAL | Ministry of Urban Development | 4,546,492.89 | 3,220,210.88 |
| DHANGHADI SUB-METROPOLITANCITY - CONSTRUCTION AND REHABILATION OF ROAD, DRAINAGE, FOOTHPATH AND ROA D FURNITURE | Loan 3566 | 30 Jul 2020 | KALIKA CONSTRUCTION PVT LTD | BHARATPUR CHITWAN NEPAL | Ministry of Urban Development | 6,422,887.39 | 4,549,232.20 |
| BHEEMDATTA MUNICIPALITY- CONSTRUCTION AND REHABILA TION OF ROAD, DRAINAGE, FOOTHPATH AND ROAD FURNIT URE | Loan 3566 | 30 Jul 2020 | ZIEC - LAMA JV | KATHMANDU NEPAL | Ministry of Urban Development | 8,283,317.59 | 5,866,946.25 |
| CONSTRUCTION OF MUNICIPAL OFFICE BUILDING FOR GODA WARI AND SUKLAPHANTA MUNICIPALITIES | Loan 3566 | 07 Feb 2020 | SHARMA AND COMPANY | SITAPAILA KATHMANDU NEPAL | Ministry of Urban Development | 2,026,911.67 | 1,411,527.28 |
| CONTRACT FOR CONSTRUCTION SUPERVISION COSULTANT FOR BIRGUNJ PIU (RUDP/CSC/BRJ-01) | Loan 3566 | 10 Jan 2019 | BUILDING DES.AUTH/B.N.CON/PLUSH ENG &ARCH P.L | KATHMANDU NEPAL | Ministry of Urban Development | 572,923.35 | 558,493.22 |
| CONTRACT FOR CSC FOR NEPLALGUNJ PIU (RUDP/CSC/NEG/2) | Loan 3566 | 04 Mar 2019 | BDA NEPAL P.LTD.JV GIDAN P. LTD. | KATHMANDU NEPAL | Ministry of Urban Development | 469,291.24 | 469,291.24 |
| INSTITUTIONAL DEVELOPMENT CONSULTANT FOR PROJECT MUNICIPALITIES OF PROVIENCE 7 | Loan 3566 | 16 Oct 2019 | PLUSH JV WITH UDAY, FULLBRIGHT & B.N.CONSULT | KAMALADI KATHMANDU NEPAL | Ministry of Urban Development | 1,745,561.84 | 1,745,561.84 |
| Capacity Development | Technical Assistance 9384 | 05 Oct 2018 | Otak, Inc.(UNITED STATES) in association with TOTAL MANAGEMENT SERVICES PVT. LTD.(NEPAL) | 808 SW Third Avenue, Suite 300 Portland, Oregon (OR) 97204 United States | Ministry of Urban Development | 823,484.00 | — |
| CONTRACT FOR CONSTRUCTIONBIRGUNJ DRAINAGE, ROAD, F OOTPATH, ROAD FURNITURE, BY-PASS ROAD, BUS BAYS | Loan 3566 | 21 Jun 2018 | M/S ZTSJ-KALIKA JV | BEIJING CHINA,PEOPLE'SREP.OF | Ministry of Urban Development | 21,563,842.00 | 15,134,278.00 |
| CONSTRUCTION OF NEPALGUNJ DRAINAGE, ROAD FOOTPATH AND ROAD FURNITURE SUBPROJECT (RUDP/ICB/NEG/3) | Loan 3566 | 19 Mar 2018 | KALIKA CONSTRUCTION PVT. LTD. AND ZHONG TIE | KALIKA BALUWATAR KATHMANDU NEPAL NEPAL | Ministry of Urban Development | 15,685,410.00 | 11,160,796.00 |
| CONSTRUCTION SUPERVISION CONSULTANTS SERVICES FOR SIDDHARTHANAGAR MUNICIPALITY | Loan 3566 | 14 Mar 2018 | BDA NEPAL (P.) LTD. W/ GARIMA INTERNATIONAL | KATHMANDU, NEPAL NEPAL | Ministry of Urban Development | 463,348.00 | 463,348.00 |
| Design and Supervision Consulting Services for Biratnagar (RUDP-DSC/BRT/02) | Loan 3566 | 13 Dec 2017 | Building Design Authority JV BN Consultancy | Nepal NEPAL | Ministry of Urban Development | 1,080,936.00 | 1,080,936.00 |
| PROJECT MANAGEMENT CONSULTANCY SERVICES | Loan 3566 | 27 Dec 2017 | ENVI'T & RESOURCE MNGT CONSULTANT (P) LTD. | NEW BANESHWOR, KATHMANDU, NEPAL NEPAL | Ministry of Urban Development | 1,712,864.00 | 1,712,864.00 |
| Design and Supervision Consultancy Service - Province 7 (RUDP/DSC/MoUD/S-01) | Loan 3566 | 13 Dec 2017 | Building Design Authority (Pvt) Ltd. JV ITECO | Kamaladi, Kathmandu Nepal NEPAL NEPAL | Ministry of Urban Development | 2,750,827.00 | 2,750,827.00 |
| Construction and Completion of Sewerage, Drainage, Road, Footpath and Road Furniture (RUDP/ICB/BRT/02) | Loan 3566 | 13 Dec 2017 | Zhongheng Construction Group Int. Engr. | Bharatpur 10, Chitwan NEPAL | Ministry of Urban Development | 25,314,527.00 | 18,186,993.00 |
| Construction of Siddharthanagar Drainage, Roads Footpath and Road Furniture (RUDP/ICB/SN/4) | Loan 3566 | 13 Dec 2017 | China Guangzhou-Sharma & Co. Pvt. Ltd. JV | Sitapaila, Kathmandu, Nepal NEPAL | Ministry of Urban Development | 20,993,539.00 | 15,085,410.00 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Regional Urban Development Project: Procurement Plan | Procurement Plans | Aug 2020 |