48218-003: Rural Connectivity Improvement Project | Asian Development Bank

Nepal: Rural Connectivity Improvement Project

Sovereign (Public) Project | 48218-003 Status: Proposed

The proposed project will construct about 388 kilometers of rural roads to all-weather standard covering 16 priority rural development districts throughout the country. The project will also focus on improving institutional arrangements, business processes, and associated capacity building, particularly on road asset management and road safety. The proposed project will also play a catalytic role for the sustainable development of rural areas.

Project Details

Project Officer
Tai, Lee Ming South Asia Department Request for information
Country
  • Nepal
Sector
  • Agriculture, natural resources and rural development
 
Project Name Rural Connectivity Improvement Project
Project Number 48218-003
Country Nepal
Project Status Proposed
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan: Rural Connectivity Improvement Project
concessional ordinary capital resources lending / Asian Development Fund US$ 100.00 million
TA: Implementation Support for Rural Connectivity Improvement Project
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Agriculture, natural resources and rural development - Rural market infrastructure

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The proposed project will construct about 388 kilometers of rural roads to all-weather standard covering 16 priority rural development districts throughout the country. The project will also focus on improving institutional arrangements, business processes, and associated capacity building, particularly on road asset management and road safety. The proposed project will also play a catalytic role for the sustainable development of rural areas.
Project Rationale and Linkage to Country/Regional Strategy

In Nepal, the agriculture sector contributes 65-70% of employment and 35% of gross domestic product. Poverty however remains widespread in rural areas. The Government of Nepal signed the Agricultural Development Strategy (ADS) in 2015 recognizing that the agriculture sector was performing below its potential in providing food and fiber, materials for processing and manufacturing, and employment and income. The government recognized that dramatic changes in strategy were needed if the sector was to perform to its potential and raise the sectors long term annual growth rate from 3% to the government's goal of 5%. The ADS underscores access as one of the major constraints to the development of commercial agriculture value chains. Transport in many high-potential production areas is limited to basic tracks or undeveloped roads, resulting in high transport costs and losses of quality and quantity. Only 17% of the rural population in Nepal has access to all-weather roads, compared with 60% in India and 37% in Bangladesh.

The proposed project will focus on improving rural roads to all-weather standards, serving the agriculture sector and the rural population to access to market, business opportunities and benefits especially along agricultural value chains which will be a key to poverty reduction in rural areas.

Impact Connectivity between rural communities and productive agricultural areas and socioeconomic centers in Nepal improved.
Outcome Transport efficiency on project roads increased.
Outputs Road conditions between the selected rural communities, productive agricultural areas, and socioeconomic centers improved.
Geographical Location
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The environmental assessment will be conducted. The assessment seeks to manage and mitigate the environmental impacts in accordance to Safeguard Policy Statement (2009).
Involuntary Resettlement A community participation framework (CPF) will be prepared to outline the voluntary land donation system adopted for the project. The executing agency will ensure (i) full consultation with landowners and any non-titled affected people on site selection; (ii) that voluntary donation does not severely affect the living standards of the affected persons, and is linked directly to benefits under the poverty alleviation schemes of the government; (iii) that any voluntary donation is confirmed through verbal and written record and verified by an independent party or legal authority; and (iv) that an adequate grievance mechanism is in place.
Indigenous Peoples The proposed project does not envisage any differential impact on the scheduled tribe population compared with non-scheduled tribes; all people will benefit equally from the project. Within the CPF, a mitigation measures matrix will detail the actions that will address categories of impacts that may be caused by the proposed project.
Stakeholder Communication, Participation, and Consultation
During Project Design Potential beneficiaries are rural community residents, including farmers, women, and poor households; commercial service providers, transport providers, government workers such as health workers, teachers, and agriculture extension workers. Their opinion and suggestions related to the proposed project will be ascertained during community consultation.
During Project Implementation
Business Opportunities
Consulting Services Consultants will be recruited, as firms or individuals, to support the project implementation, capacity development, and preparing detailed project report for future pipeline, in accordance with ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).
Procurement Procurement of civil works and equipment will be carried out in accordance with ADB Procurement Guidelines (2015, as amended from time to time).
Responsible ADB Officer Tai, Lee Ming
Responsible ADB Department South Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SARD
Executing Agencies
Dept of Local Infra Devt & Agri Roads
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Nepal
Ministry of Federal Affairs and Local Development
Singha Durbar
Nepal
Timetable
Concept Clearance 24 Jul 2014
Fact Finding 06 Jul 2017 to 16 Jul 2017
MRM 11 Oct 2017
Approval -
Last Review Mission -
Last PDS Update 01 Aug 2017

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.

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Evaluation Documents See also: Independent Evaluation

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Related Publications

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