Nepal : Rural Connectivity Improvement Project - Additional Financing

Sovereign Project | 48218-011

The overall project is estimated to cost $255.72 million, including additional financing of $120.00 million, of which ADB is providing a concessional loan of $100.00 million from ADB's ordinary capital resources. The government will finance $20.00 million of the proposed additional financing project. The attached TA is estimated to cost $1.00 million, which will be financed on a grant basis by ADB's Technical Assistance Special Fund.

The impact and outcome of the overall project will remain unchanged from those of the ongoing project. The proposed additional financing will scale up the current output 1 by an additional 324 km of rural roads and output 2 by increasing capacity support to fulfill the roles and responsibilities in a federal system.

Project Name Rural Connectivity Improvement Project - Additional Financing
Project Number 48218-011
Country / Economy Nepal
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 4320-NEP: Rural Connectivity Improvement Project - Additional Financing
Concessional ordinary capital resources lending US$ 100.00 million
TA 10113-NEP: Implementation Support and Institutional Strengthening for the Rural Connectivity Improvement Project - Additional Financing
Technical Assistance Special Fund US$ 1.00 million
Operational Priorities OP1: Addressing remaining poverty and reducing inequalities
OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP5: Promoting rural development and food security
OP6: Strengthening governance and institutional capacity
Sector / Subsector

Agriculture, natural resources and rural development / Rural market infrastructure

Gender Effective gender mainstreaming
Description

The overall project is estimated to cost $255.72 million, including additional financing of $120.00 million, of which ADB is providing a concessional loan of $100.00 million from ADB's ordinary capital resources. The government will finance $20.00 million of the proposed additional financing project. The attached TA is estimated to cost $1.00 million, which will be financed on a grant basis by ADB's Technical Assistance Special Fund.

The impact and outcome of the overall project will remain unchanged from those of the ongoing project. The proposed additional financing will scale up the current output 1 by an additional 324 km of rural roads and output 2 by increasing capacity support to fulfill the roles and responsibilities in a federal system.

Project Rationale and Linkage to Country/Regional Strategy

The additional financing will increase the project's scope by upgrading an additional 324 km of rural roads across five provinces. The implementation arrangements will evolve from the ongoing project to better align and support federalism. The overall project scope is aligned with the government's priorities under the Fifteenth Plan (fiscal year 2020-FY2024), ADB's country partnership strategy for Nepal, 2020-2024 and ADB's Strategy 2030.

The roads will improve connection of rural and agricultural areas with administrative and socio-economic centers. The roads will be improved to all-weather standards, with safety features, and will be maintained for 3 years under performance-based maintenance contracts. The additional financing will also integrate climate adaptation and disaster resilience measures into the technical designs of the infrastructure. Compared to the ongoing project, the additional financing will also include upgrading bridges that are essential for all-weather connectivity and include more intermediate lanes necessary for higher volume areas and steeper slopes.

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 re-awarded 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 and draft design of 7 bridges has also been completed.

- Contract awarded for livelihood related skill training.

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 agencies and road users in project areas enhanced.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Bagmati Province, Gandaki, Karnali, Koshi, Lumbini Province
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Procurement of consulting services shall follow the ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).
Procurement

Procurement of goods, and works shall follow the ADB Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time).

Responsible ADB Officer Tiwari, Hemant
Responsible ADB Department Sectors Group
Responsible ADB Division Agriculture, Food, Nature, and Rural Development Sector Office (SG-AFNR)
Executing Agencies
Ministry of Urban Development
Timetable
Concept Clearance 19 May 2022
Fact Finding 29 Aug 2022 to 12 Sep 2022
MRM 09 Dec 2022
Approval 13 Jun 2023
Last Review Mission -
Last PDS Update 16 Jun 2023

Loan 4320-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Jun 2023 31 Oct 2023 09 Jan 2024 30 Sep 2028 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 120.00 Cumulative Contract Awards
ADB 100.00 26 Mar 2024 11.89 0.00 12%
Counterpart 20.00 Cumulative Disbursements
Cofinancing 0.00 26 Mar 2024 0.00 0.00 0%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Unsatisfactory - Unsatisfactory - Unsatisfactory

TA 10113-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Jun 2023 09 Aug 2023 09 Aug 2023 30 Nov 2026 - -
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 26 Mar 2024 7,415.35

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.

Tenders


Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Upgradation, construction and performance-based maintenance works of Rampur-Prapcha-Sreechaur-Fijifalate (Nibhare)-Khijikali (Kundali)-Rawadolu-Bhasniga Road (ch 0+000 to 12+000) in Okhaldhunga District (RCIP-AF/Koshi/Works/OCB-05/2079/80) Loan 4320 06 Mar 2024 Rautaha-Hari-Hari JV | Triyuga Municipality - 02, Udaypur, Nepal Ministry of Urban Development 2,502,653.24 2,176,923.68
Upgrade, const. and maintenance of Radhakrishna Mandir-Buddha Dev Mandal-Siddhartha Pra Bi-Ganeshpur-Bankuluwa-Chinimill-Ramdhuni Naya Road (Ch 0+000 to 12+073) incl. const. of Kuruwa Khola Bridge in Sunsari District (RCIP-AF/Koshi/Works/OCB-02/2079/20) Loan 4320 06 Mar 2024 Ashish-Aashirbad JV | Triyuga-07 Udaypur, Nepal Ministry of Urban Development 4,392,873.12 3,821,124.47
Upgradation, construction and performance-based maintenance works of Phidim-Falot Road (ch 0+000 to 11+000) in Panchthar District (RCIP-AF/Koshi/Works/OCB-03/2079/80) Loan 4320 06 Mar 2024 Rautaha-Apex JV | Maitidevi, Kathmandu Ministry of Urban Development 2,054,796.00 1,787,356.72
Contract agreement with M/S VBEPL-ACPL JV for upgradation, construction and Performance-Based Maintenance works of Abuwa-Birdi-Serabazar-Pauwatar Road (ch 0+000 to 15+551) in Gorkha District of Gandaki Province. Loan 4320 31 Mar 2024 M/S VBEPL-ACPL JV | Kalimati-13, Kathmandu Ministry of Urban Development 2,293,419.53 2,007,223.29
Contract agreement with M/S Tundi-Bidari JV for upgradation, construction and Performance-Based Maintenance works of Adalat Chautari-Tityang-Saalbot-Daha-Bhakunde-Rayadanda-Damek-Bareng Road (ch 0+000 to 15+000) in Baglung District of Gandaki Province. Loan 4320 31 Mar 2024 M/S Tundi-Bidari JV | Kathmandu Ministry of Urban Development 2,394,630.47 2,095,804.10

Procurement Plan

Title Document Type Document Date
Rural Connectivity Improvement Project - Additional Financing: Procurement Plan Procurement Plans Sep 2022