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 Name | Rural Connectivity Improvement Project | ||||||||
| Project Number | 48218-003 | ||||||||
| Country | 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 |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Private sector development |
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| Sector / Subsector | Agriculture, natural resources and rural development / Rural market infrastructure |
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| 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. |
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| Impact | Connectivity between rural communities, productive agricultural areas and socioeconomic centers in Nepal improved | ||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Transport efficiency on project roads increased |
| Progress Toward Outcome | Batch 1 - contracts awarded; Batch 2 - contracts awarded; Batch 3 - for opening of financial bids. |
| Implementation Progress | |
| Description of Project Outputs | Rural road conditions between the selected rural communities, productive agricultural areas, and socioeconomic centers improved Capacity of rural infrastructure agency and road users in project areas enhanced |
| Status of Implementation Progress (Outputs, Activities, and Issues) | - Tendering of Batch 1 (NCB-01, NCB-02, NCB-03 and NCB-04) concluded; - Tendering of Batch 2 (NCB-07, NCB-10 and NCB-11) concluded; - TBER of Batch 3 (NCB-05, NCB-06, NCB-08, and NCB-09) approved, for opening of financial bids; - Hiring of Construction Supervision Consultant (CSC) concluded; - Hiring of Project Management Consultants (PMC) ongoing; - Hiring of Capacity Development Consultant ongoing; and - Hiring of Detailed Project Report (DPR) consultants to be advertised. |
| Geographical Location | Central Region, Eastern Region, Western Region |
| 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 * * Nepal |
| Timetable | |
|---|---|
| Concept Clearance | 24 Jul 2014 |
| Fact Finding | 06 Jul 2017 to 16 Jul 2017 |
| MRM | 11 Oct 2017 |
| Approval | 11 Dec 2017 |
| Last Review Mission | - |
| Last PDS Update | 21 Sep 2018 |
Loan 3620-NEP
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 11 Dec 2017 | 12 Feb 2018 | 12 Mar 2018 | 31 Jul 2023 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 135.72 | Cumulative Contract Awards | |||
| ADB | 100.00 | 11 Dec 2017 | 42.80 | 0.00 | 43% |
| Counterpart | 35.72 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 11 Dec 2017 | 10.52 | 0.00 | 11% |
TA 9457-NEP
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 11 Dec 2017 | 03 Jan 2018 | 03 Jan 2018 | 30 Sep 2019 | - | - |
| 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 | 11 Dec 2017 | 0.00 |
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 |
|---|---|---|
| Rural Connectivity Improvement Project: Procurement Plan | Procurement Plans | Jun 2018 |
| Rural Connectivity Improvement Project: Project Data Sheet (Nepali Translation) | Translated PDS | Mar 2018 |
| Loan Agreement (Ordinary Operations [Concessional]) for Loan 3620-NEP: Rural Connectivity Improvement Project | Agreements | Feb 2018 |
| Rural Connectivity Improvement Project: Project Administration Manual (As of Board Approval) | Project/Program Administration Manual | Nov 2017 |
| Rural Connectivity Improvement Project: Report and Recommendation of the President | Reports and Recommendations of the President | Nov 2017 |
| Rural Connectivity Improvement Project: Gender Equality and Social Inclusion Action Plan | Gender Action Plans | Nov 2017 |
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 |
|---|---|---|
| Rural Connectivity Improvement Project: Community Participation Framework | Safeguards Due Diligence Reports | Sep 2017 |
| Rural Connectivity Improvement Project: Initial Environmental Examination | Initial Environmental Examination | Jul 2017 |
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.
Requests for information may also be directed to the InfoUnit.
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ADB $100 Million to Boost Agriculture in Nepal Through All-Weather Rural Roads
ADB's Board of Directors has approved a $100 million loan to improve rural roads to promote more extensive agriculture and agribusiness development in five states of Nepal.
Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Contractor Address | Executing Agency | Contract Description | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|---|---|
| (NCB-07) UPGRADING AND MAINTAINING OF 43.10 KM OF RURAL ROADS IN DOLAKHA, SINDHUPALCHOK AND SINDHUPALCHOK AND KAVREPALANCHOK DISTRICTS | Loan 3620 | 18 Jun 2018 | M/S AIPL - NANC JV | KULESHWOR, KATHMANDU NEPAL | Dept of Local Infra Devt & Agri Roads | CONSTRUCTION | 9,903,082.00 | 7,781,494.00 |
| (NCB-11) UPGRADING AND MAINTAINING OF 30.05 KM OF RURAL ROADS IN RUKUM DISTRICT | Loan 3620 | 18 Jun 2018 | M/S PH - SMNS JV | KOTESHWOR, KATHMANDU NEPAL | Dept of Local Infra Devt & Agri Roads | CONSTRUCTION | 8,295,916.00 | 6,518,639.00 |
| (NCB-10) UPGRADING AND MAINTAINING OF 24.24 KM OF RURAL ROADS IN PARBAT DISTRICT | Loan 3620 | 18 Jun 2018 | M/S TUNDI CONSTRUCTION (P) LTD | SANEPA, LALITPUR NEPAL | Dept of Local Infra Devt & Agri Roads | CONSTRUCTION | 5,699,612.00 | 4,478,555.00 |
| CSC-01: CONSTRUCTION SUPERVISION CONSULTANT | Loan 3620 | 17 Apr 2018 | YOOSHIN ENGINEERING CORPORATION | 8, YEOKSAM-RO 4, GIL GANGNAM-GU, SEOUL KOREA, REPUBLIC OF | Dept of Local Infra Devt & Agri Roads | CONSULTANCY | 5,539,562.00 | 4,602,784.00 |
| (NCB-03) UPGRADING AND MAINTAINING OF 40.48KM OF RURAL ROADS IN SUNSARI AND DHANKUTA DISTRICT | Loan 3620 | 17 Apr 2018 | M/S JJECCL-PAPPU JV | BIRATNAGAR NEPAL | Dept of Local Infra Devt & Agri Roads | CONSTRUCTION | 8,440,486.00 | 6,565,972.00 |
| (NCB-01) UPGRADING AND MAINTAINING OF 43.52KM OF RURAL ROADS IN JAPHA DISTRICT | Loan 3620 | 17 Apr 2018 | M/S ZCGIEC - ASHISH - PRERA JV | NAYABATO, LALITPUR NEPAL | Dept of Local Infra Devt & Agri Roads | CONSTRUCTION | 6,492,248.00 | 5,050,411.00 |
| (NCB-04) UPGRADING AND MAINTAINING OF 19.69KM OF RURAL ROADS IN ROLPA DISTRICT | Loan 3620 | 17 Apr 2018 | M/S JJECL-PAPPU-KOSHI & NEUPANE JV | TINKUNE, KATHMANDU NEPAL NEPAL | Dept of Local Infra Devt & Agri Roads | CONSTRUCTION | 4,226,723.00 | 3,288,027.00 |
| UPGRADING AND MAINTAINING OF 39.31KM OF RURAL ROADS IN PANCHTHAR DISTRICT | Loan 3620 | 31 Mar 2018 | M/S SWACHCHHANDA - KANKAI JV | SIFAL, KATHMANDU NEPAL | Dept of Local Infra Devt & Agri Roads | CONSTRUCTION | 8,922,872.00 | 7,136,939.00 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Rural Connectivity Improvement Project: Procurement Plan | Procurement Plans | Jun 2018 |