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 375 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 Proposed
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan: Rural Connectivity Improvement Project - Additional Financing
Concessional ordinary capital resources lending US$ 100.00 million
TA: Implementation Support for Rural Connectivity Improvement Project - Additional Financing
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Sector / Subsector

Agriculture, natural resources and rural development / Rural market infrastructure

Gender Equity and Mainstreaming 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 375 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 375 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 2020FY2024),_ADB's country partnership strategy for Nepal, 20202024 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/administrative centers in Nepal improved a

Outcome

Transport efficiency on project roads increased

Outputs

Rural road conditions between the selected rural communities, productive agricultural areas, and socioeconomic centers improved

Geographical Location Bagmati Province, Gandaki, Karnali, 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
Responsible ADB Officer Brubaker, Andrew David
Responsible ADB Department South Asia Department
Responsible ADB Division Environment, Natural Resources & Agriculture Division, SARD
Executing Agencies
Department of Local Infrastructure
Timetable
Concept Clearance 19 May 2022
Fact Finding 29 Aug 2022 to 12 Sep 2022
MRM 02 Dec 2022
Approval -
Last Review Mission -
Last PDS Update 20 May 2022

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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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Tenders

No tenders for this project were found.


Contracts Awarded

No contracts awarded for this project were found


Procurement Plan

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