Nepal: Rural Connectivity Improvement Project
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
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Project Officer
Bhatt, Bhupendra Chandra
South Asia Department
Request for information -
Country/Economy
Nepal -
Modality
- Loan
- Technical Assistance
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Sector
- Agriculture, natural resources and rural development
Related Projects
| Project Name | Rural Connectivity Improvement Project | ||||||||
| Project Number | 48218-003 | ||||||||
| 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 |
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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 | All planned civil works packages (NCB-01, NCB-02, NCB-03, NCB-04, NCB-05, NCB-06, NCB-07, NCB-08, NCB-09, NCB-10, and NCB-11) have been awarded. Contract of NCB-04 was terminated due to poor performance of contractor which has been rebided in September 2020. Additional 2 packages for construction of 4 additional roads (packages 12 and 14) from the saving amount have also been identified and awarded on May 2021. Capacity Development Consultant, Poject Management Consultants recruited. Recruitment of 5 consulting firms for DPR preparation has been completed. Field work of feasibility study of 2,937.69 km has been completed. Field work of detail engineering survey of about 1,897.63 km has been completed. Field work of CPP of 1,013 km and draft report of 290 Km has been completed. Survey completed of 37 bridges and draft design of 7 bridges has also been completed. Total 209.99 km rural roads improved to all-weather standards (blacktop) with safety features. Total 1.948 million person days employment generated by road construction, in all project districts up to this reporting period. Contract awarded for livelihood related skill training and is going on. The consultant, Sheladia Associates, Inc., under the TA9457 was recruited and mobilized from January 2019 until June 2020. The consultant has submitted the final reports and contract is completed. Capacity Enhancement and Project Management Training to 200 Local Level Engineers was also conducted from the TA fund. Overall project progress is about 77.22%. |
| 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) | - Supervision consultant, Capacity Development Consultant, and Project Management Consultants recruited. - All packages (NCB-01 to NCB-11) have been awarded, and construction is ongoing. Contract of NCB-04 was terminated due to poor performance of contractor. The package was rebidded and also awarded.- Procurement of 2 additional contracts (NCB 12 and NCB 14) has been awarded on May 2021.- Contract awarded for livelihood related skill training.- Recruitment of 5 consulting firms for DPR preparation has been completed. Field work of feasibility study of 2,937.69 km has been completed. Field work of detail engineering survey of about 1,897.63 km has been completed. Field work of CPP of 1,013 km and draft report of 290 Km has been completed. Survey completed of 37 bridges and draft design of 7 bridges has also been completed.- 209.99 km rural roads improved to all-weather standards (blacktop) with safety features. - 1.948 million-person days employment generated by road construction, in all project districts up to this reporting period.- Knowledge enhancement started in different level. Environmental and Social Safeguard, and performance-based maintenance has been started in field and PIU level.- Conducted 19 events of technical training to DoLI staff, provincial and municipal staff. Out of 19-Construction Supervision Training two events, Pavement Design four events, Road Safety two events, two events of Workshop /training on safeguards and GESI to PIU staff and stakeholder, one event in each of Exposure Visit in India, Social Safeguards Training, Online training on Contract Management, Project Account online training, Online Procurement Training, Social Safeguards online clinic, Online training on GESI.- Out of 1,026 participants, 815 (79.43%) were male and 211 (20.57%) were female.- 3,606 people along project roads acquired knowledge on road safety for which 18 events of road safety awareness raising sessions were organized in 15 roads.- 3,606 people of 18 roads acquired knowledge on human trafficking and STI (including HIV/AIDS) prevention.- 297 events have been organized for orientation and planning during project design where total participants were 9,107. Out of which, male 6,175 (67.80%), female 2,932 (32.20%).- The consultant, Sheladia Associates, Inc., under the TA9457 was recruited and mobilized from January 2019 until June 2020. The consultant has submitted the final reports and contract is completed. - Capacity Enhancement and Project Management Training to 200 Local Level Engineers was also conducted from the TA fund. |
| Geographical Location | Central Region, Eastern Region, Western Region |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
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| Environmental Aspects | The implementing agencies had done environmental examinations and prepared environmental management plans (EMPs), for the subprojects during feasibility study. Accordingly environmental assessment and review framework (EARF) was prepared. The framework set out requirements for project screening and classification, subproject selection, information disclosure and consultation with the affected people, environmental assessment, EMP development and implementation, monitoring and reporting. IEE of the subprojects was prepared as per the Government's and ADB's Environment Safeguard Policy. Project implementation was done following the Environment Management Plan (EMP) of the Project. The environmental assessment has been conducted for all civil packages. The assessment managed and mitigated the environmental impacts in accordance to Safeguard Policy Statement (2009). IEEs showed planned subprojects had only small and localized adverse impact on the environment, which can be managed with mitigation measures proposed in the EMPs. PIUs have been updating IEEs based on final engineering design of the subprojects and complied with the EMPs during implementation. PCO monitored compliance to environmental safeguard requirement by PIUs in accordance with approved EMPs, and reported its implementation status to ADB through semiannual environmental safeguard monitoring report. |
| Involuntary Resettlement | A community participation framework (CPF) was prepared to outline the voluntary land donation system adopted for the project. The executing agency consulted with landowners and any non-titled affected people on site selection. The EA ensured that voluntary donation did not severely affect the living standards of the affected except few which were resolved appropriately during implementation. An adequate grievance mechanism is in place. |
| Indigenous Peoples | The project did not envisage any differential impact on the scheduled tribe population compared with non-scheduled tribes; all people have been equally benefited from the 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 | During project implementation concerned stakeholders were consulted as and when needed regarding the project progress, underlying issues and way forward. Opinion and suggestions of all stakeholders including 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 has been sought during implementation. The consultation was often found effective to finalize the subprojects' environment and safeguard related issues. |
| Business Opportunities | |
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| 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 | Bhatt, Bhupendra Chandra |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Nepal Resident Mission |
| Executing Agencies |
Department of Local Infrastructure Shreemahal, Pulchowk, Lalitpur, 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 | 30 Jun 2022 |
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 | 25 Jul 2022 | 79.82 | 0.00 | 81% |
| Counterpart | 35.72 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 25 Jul 2022 | 67.60 | 0.00 | 69% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
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 | 30 Sep 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 | 25 Jul 2022 | 957,838.45 |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | 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.
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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 $100 million loan to improve rural roads to promote more extensive agriculture and agribusiness development in five states of Nepal.
Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| (NCB-12) UPGRADING AND MAINTAINING OF 13.107 KM OF RURAL ROADS IN JHAPA AND MORANG DISTRICTS DOLI/RCIP/WORKS/NCB-12/2077/078 | Loan 3620 | 20 Jun 2021 | M/S RAUTAHA CONSTRUCTION PVT. LTD | TRIYUGAMUNICIPALITY 2 UDAYAPUR NEPAL | Department of Local Infrastructure | 2,720,732.24 | 2,142,904.22 |
| (NCB-14) UPGRADING AND MAINTAINING OF 10.255 KM OF RURAL ROADS IN RUKUM (EAST) DISTRICT DOLI/RCIP/WORKS/NCB-14/2077/078 | Loan 3620 | 20 Jun 2021 | M/S LAMA CONSTRUCTION PVT. LTD. | KATHMANDU MTRO, MAHARAJGUNJ KATHMANDU NEPAL | Department of Local Infrastructure | 2,875,717.21 | 2,264,973.54 |
| (NCB-04) UPGRADING AND MAINTAINING OF 24.24 KM OF RURAL ROADS IN ROLPA DISTRICT OF NEPAL | Loan 3620 | 21 Sep 2020 | M/S SHISH CAB JV | JAWALAKHEL LALITPUR NEPAL | Department of Local Infrastructure | 5,486,558.44 | 4,410,581.02 |
| CONTRACT AGREEMENT WITH M/S ITECO NEPAL AND INCLUS IVE CONSULTANTS PVT. LTD. FOR PREPARATION OF DPR I N PROVINCE NO. 5 | Loan 3620 | 30 Jan 2020 | M/S ITECO NEPAL AND INCLUSIVE CONSULTANTS PVT | MIN BHAWAN KATHMANDU NEPAL | Department of Local Infrastructure | 339,009.90 | 288,158.42 |
| CONTRACT AGREEMENT WITH M/S CIVIL INFORMATICS AND SOLUTIONSFOR PREPARATION OF DPR IN KARNALI PROVINC E | Loan 3620 | 30 Jan 2020 | M/S CIVIL INFORMATICS AND SOLUTIONS | CHAKUPATH MARG 22, PATAN DHOKA LALITPUR NEPAL | Department of Local Infrastructure | 339,009.90 | 288,158.42 |
| AGREEMENT WITH M/S CIVIL INFORMATICS & SOLITIONS P . LTD. WITH NEPALCONSULT P. LTD. , AND WEKREATE IN TERNATIONAL P. LTD. FOR PREPARATION OF DPR | Loan 3620 | 30 Jan 2020 | M/S M/S CIVIL INFORMATICS & SOLUTION PVT. LTD | CHAKUPATH MARG 22 PATAN DHOKA LALITPUR NEPAL | Department of Local Infrastructure | 396,039.60 | 336,633.66 |
| CONTRACT AGREEMENT WITH M/S CIVIL INFORMATICS & SO LITIONS PVT. LTD. FOR PREPARATION OF DPR IN PROVIN CENO. 1 | Loan 3620 | 30 Jan 2020 | M/S CIVIL INFORMATICS & SOLITIONS PVT. LTD. | CHAKUPATH MARG22 LALITPUR NEPAL | Department of Local Infrastructure | 445,544.55 | 378,712.87 |
| CONTRACT AGREEMENT WITH M/S ABHIYAAN CONSULTING PV T. LTD. JV WITH SOIL TEST PVT. LTD., AND CARD CONS ULT PVT. LTD. FOR PREPARATION OF DPR IN | Loan 3620 | 30 Jan 2020 | M/S ABHIYAAN CONSULTING PVT. LTD. | EKATA MARG, BANESHWOR KATHMANDU NEPAL | Department of Local Infrastructure | 465,990.10 | 396,091.58 |
| CONTRACT AGREEMENT WITH MR. KESHAB PRASAD SILWAL FOR PROVIDING SOCIAL SAFEGUARDS SERVICES TO THE PROJECT | Loan 3620 | 30 Nov 2019 | M/S TRAINING CENTER NEPAL PVT. LTD. | SITAPAILA KATHMANDU NEPAL | Department of Local Infrastructure | 565,394.85 | 480,962.88 |
| PROJECT MANAGEMENT COST | Loan 3620 | 25 Nov 2019 | VARIOUS | NEPAL NEPAL | Department of Local Infrastructure | 135,604.91 | 135,604.91 |
| UPGRADING AND MAINTENANCE OF RURAL ROAD IN MORANG DISTRICT DOLIDAR/RCIP/WORKS/NCB-06/2075/76 | Loan 3620 | 08 Aug 2019 | M/S CICO/KCCPL JV, MAIJUBAHAL, KATHMANDU | MAIJUBAHAL KATHMANDU NEPAL | Department of Local Infrastructure | 5,513,702.15 | 4,868,964.96 |
| (NCB-08) UPGRADING AND MAINTAINING OF 36.65 KM OF RURAL ROADS IN SINDHULI, KATHMANDU AND BHAKTAPUR DISTRICTS. DOLIDAR/RCIP/WORKS/NCB-08/2074/075 | Loan 3620 | 14 Dec 2018 | M/S ECI-KANKAI JV | SIPHAL 07, KATHMANDU NEPAL | Dept of Local Infra Devt & Agri Roads | 6,812,769.09 | 5,601,845.62 |
| (NCB-05) UPGRADING AND MAINTAINING OF 22.78KM OF RURAL ROADS IN ILLAM DISTRICT DOLIDAR/RCIP/WORKS/NCB-05/2074/075 | Loan 3620 | 14 Dec 2018 | M/S KALIKA-GAJURMUKHI JV | KATHMANDU NEPAL NEPAL | Dept of Local Infra Devt & Agri Roads | 5,182,513.99 | 4,261,357.30 |
| UPGRADING AND PBM OF PHISLING-TOLANG-BASPUR-ORALAN G-MYATAR-TARSE-UPPERDANG GADI-SHAKTIKO BAZAR RD CONTRAC NO. DOLIDAR/RCIP/WORKS/NCB/2074/075 | Loan 3620 | 13 Dec 2018 | M/S SHANXI-ASHISH JV | 10/578 BHARATPUR-10 CHITWAN CHINA,PEOPLE'SREP.OF | Dept of Local Infra Devt & Agri Roads | 6,908,439.27 | 5,624,150.25 |
| Capacity Development | Technical Assistance 9457 | 13 Nov 2018 | SHELADIA ASSOCIATES, INC.(UNITED STATES) in association with GEOCE CONSULTANTS (P) LTD.(NEPAL) | 15825 SHADY GROVE ROAD, SUITE 100 ROCKVILLE MD 20850, UNITED STATES [email protected] | Dept of Local Infra Devt & Agri Roads | 918,507.00 | — |
| (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 | 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 | 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 | 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 | 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 | 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 | 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 | 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 | 8,922,872.00 | 7,136,939.00 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Rural Connectivity Improvement Project: Procurement Plan | Procurement Plans | Dec 2021 |