Nepal : South Asia Subregional Economic Cooperation Highway Enhancement Project (Kakarbhitta-Laukahi)

Sovereign Project | 52097-003

The project road is a two-lane carriageway and carries about 14,000 vehicles per day. Traffic is forecast to reach 48,800 vehicles per day by 2041. The road will be median-divided and provides service lanes, footpath, and cycle lane in urban areas. Through the project, the road will be upgraded to a two-lane dual carriageway to accommodate the increasing traffic demand, with improved geometry, pavement, drainage, road safety, and climate- and disaster-resilient features. Grade separation or traffic signal will be adopted at junctions to improve safety for vulnerable road users including women and children who are more likely to walk, cycle or use public transport. River training and bank protection works will minimize the risk of erosion. The project design incorporates lessons from previous projects, including readiness, procurement, asset management and sustainability.

Project Details

Project Name South Asia Subregional Economic Cooperation Highway Enhancement Project (Kakarbhitta-Laukahi)
Project Number 52097-003
Country / Economy Nepal
Project Status Active
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 4316-NEP: SASEC Highway Enhancement Project (Laukahi"Kakarbhitta)
Concessional ordinary capital resources lending US$ 300.00 million
TA 10107-NEP: Institutional Strengthening of Project Implementation, Climate Change, and Disaster Risk Resilience in the Road Sector
Technical Assistance Special Fund US$ 750,000.00
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
OP7: Fostering regional cooperation and integration
Sector / Subsector

Transport / Road transport (non-urban)

Gender Effective gender mainstreaming
Description

The project road is a two-lane carriageway and carries about 14,000 vehicles per day. Traffic is forecast to reach 48,800 vehicles per day by 2041. The road will be median-divided and provides service lanes, footpath, and cycle lane in urban areas. Through the project, the road will be upgraded to a two-lane dual carriageway to accommodate the increasing traffic demand, with improved geometry, pavement, drainage, road safety, and climate- and disaster-resilient features. Grade separation or traffic signal will be adopted at junctions to improve safety for vulnerable road users including women and children who are more likely to walk, cycle or use public transport. River training and bank protection works will minimize the risk of erosion. The project design incorporates lessons from previous projects, including readiness, procurement, asset management and sustainability.

The project will be aligned with the following impact: balanced and diversified international trade route promoted and economic interconnectivity improved. The project will have the following outcome: connectivity, capacity, efficiency, and safety of the road transport system along the EWH improved.

Project Rationale and Linkage to Country/Regional Strategy

The project road forms part of SASEC Corridor 4 linking Kathmandu via Kakarbhitta to Chattogram and Mongla ports in Bangladesh. The project will also (i) boost border trade and logistics by reducing transport costs; and (ii) improve standards of living of rural communities, including for women and disadvantaged groups, by developing better infrastructure assets with safety and climate- and disaster risk-resilient features. This intervention is part of a series of SASEC road projects along the EWH funded by the Asian Development Bank (ADB).

The project is consistent with the following operational priorities of ADB's Strategy 2030: (i) addressing remaining poverty and reducing inequalities; (ii) accelerating progress in gender equality; (iii) tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability; (iv) promoting rural development; (v) strengthening governance and institutional capacity; and (vi) fostering regional cooperation and integration. The project is also consistent with the SASEC operational plan 2016-2025 update and the objectives set out in ADB's country partnership strategy for Nepal, 2020-2024 to improve infrastructure for private sector-led growth by (i) strengthening road and trade facilitation for domestic, regional, and international connectivity; (ii) reducing the costs of production and trade for businesses; and (iii) attracting private investment.

Impact

Balanced and diversified international trade route promoted and economic interconnectivity improved

Project Outcome
Description of Outcome

Connectivity, capacity, efficiency, and safety of the road transport system along the East-West Highway improved

Progress Toward Outcome 5 civil work packages have been awarded as of 28 November 2023.
Implementation Progress
Description of Project Outputs

National highway network upgraded and maintained

Capacity on procurement, gender equality and social inclusion, and climate resilience for roads strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)

1. All five civil works contracts were awarded.

2. Under preparation.

Geographical Location Laukahi
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects

The project is an existing road and a brownfield site.

Considering that the road has significant wildlife movement and intermittent patches of forest areas, detailed biodiversity studies have been conducted.

Involuntary Resettlement Initial assessment indicates that 597 households (3,015 persons) will be affected by the project. Aside from this, 609 private structures (residential, commercial, sheds, cattle shed and others) will be affected. Also, 269 public structures like resting places, temples, toilets, tube-wells, police beats, and statue sites will also affected along the alignment.
Indigenous Peoples There are no indigenous people in the project area.
Stakeholder Communication, Participation, and Consultation
During Project Design Consultations were held with affected persons and other concerned stakeholders during the preparation of the poverty and social analysis and resettlement plan.
During Project Implementation Consultation, as required, will be carried out during project implementation.
Business Opportunities
Consulting Services All consultants and nongovernment organizations will be recruited according to ADB's Procurement Regulations (2017, as amended from time to time). All firms will be recruited using ADB's quality- and-cost-based selection (QCBS) under full technical proposal (FTP) and a standard quality-cost ratio of 90:10.
Procurement All procurement of goods and works will be undertaken in accordance with ADB's Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time). Open competitive bidding (OCB) procedures will be used for all civil works contracts.
Responsible ADB Officer Chong, Sin Wai
Responsible ADB Department Sectors Group
Responsible ADB Division Transport Sector Office (SG-TRA)
Executing Agencies
Ministry of Physical Infrastructure and Transport
Timetable
Concept Clearance 30 May 2022
Fact Finding 13 Jun 2022 to 23 Jun 2022
MRM 20 Oct 2022
Approval 17 May 2023
Last Review Mission -
Last PDS Update 28 Nov 2023

Loan 4316-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 May 2023 07 Jul 2023 25 Aug 2023 31 Dec 2029 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 362.47 Cumulative Contract Awards
ADB 300.00 23 Apr 2024 229.14 0.00 76%
Counterpart 62.47 Cumulative Disbursements
Cofinancing 0.00 23 Apr 2024 18.41 0.00 6%

TA 10107-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 May 2023 13 Jun 2023 13 Jun 2023 31 Dec 2025 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
750,000.00 0.00 0.00 0.00 0.00 0.00 750,000.00 23 Apr 2024 88,444.00

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 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

Tender Title Type Status Posting Date Deadline
SHEP/ICS/PCMS/01 Individual - Consulting Active
SASEC Highway Enhancement Project (Contract Management Specialist-International) Individual - Consulting Closed
Institutional Strengthening of Project Implementation, Climate Change, and Disaster Risk Resilience in the Road Sector Firm - Consulting Closed
SASEC Highway Enhancement Project (Social Safeguard (Gender Equality and Social Inclusion) Specialist (National)) Individual - Consulting Closed
SASEC Highway Enhancement Project (Environment Safeguard Specialist) Individual - Consulting Closed
SASEC Highway Enhancement Project (Social Safeguard Specialist) Individual - Consulting Closed
52097-NEP: SASEC Highway Enhancement Project for Kakarbhitta - Laukahi Section of East-West Highway [SHEP/OCB/KL Lots 1-5] Invitation for Bids Closed
CONSTRUCTION SUPERVISION CONSULTANT FOR KAKARBHITTA LAUKAHI ROAD, SASEC HIGHWAY ENHANCEMENT PROJECT Firm - Consulting Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Capacity Development Technical Assistance Technical Assistance 10107 22 Feb 2024 CDM International Inc. (U.S.A.) in association with ITECO Nepal (P) Ltd. (NEPAL) | 75 State Street, Suite 701, Boston, MA 02109 United States Ministry of Physical Infrastructure and Transport 654,982.00
Kakarbhitta - Laukahi Section of East-West Highway (H01) [Lot 3] Loan 4316 27 Nov 2023 COVEC-CREGC-TUNDI JV [China Overseas Engineering Group Company Limited, China Railway No. 2 Engineering Group Co., Ltd. Tundi Construction Pvt. Ltd. Joint Venture] | Sanepa Height, Lalitpur, Nepal Ministry of Physical Infrastructure and Transport 30,556,685.29 25,696,244.80
Kakarbhitta - Laukahi Section of East-West Highway (H01) [Lot 5] Loan 4316 27 Nov 2023 COVEC-CREGC-TUNDI JV [China Overseas Engineering Group Company Limited, China Railway No. 2 Engineering Group Co., Ltd. Tundi Construction Pvt. Ltd. Joint Venture] | Sanepa Height, Lalitpur, Nepal Ministry of Physical Infrastructure and Transport 42,401,820.58 36,068,985.64
Kakarbhitta - Laukahi Section of East-West Highway (H01) [Lot 4] Loan 4316 27 Nov 2023 COVEC-CREGC-TUNDI JV [China Overseas Engineering Group Company Limited, China Railway No. 2 Engineering Group Co., Ltd. Tundi Construction Pvt. Ltd. Joint Venture] | Sanepa Height, Lalitpur, Nepal Ministry of Physical Infrastructure and Transport 44,846,589.01 38,148,643.52
Kakarbhitta - Laukahi Section of East-West Highway (H01) [Lot 2] Loan 4316 27 Nov 2023 CRFG-TUNDI JOINT VENTURE [China Railway First Group Co., Ltd. - Tundi Construction Pvt. Ltd. Joint Venture] | Sanepa Height, Lalitpur, Nepal Ministry of Physical Infrastructure and Transport 68,547,646.02 57,644,246.29
Kakarbhitta - Laukahi Section of East-West Highway (H01) Loan 4316 27 Nov 2023 EVRASCON/ KALIKA JOINT VENTURE [Euro-Asian Construction Corporation "EVRASCON" Open Joint Stock Company - Kalika Construction Pvt. Ltd. Joint Venture] | Baluwatar, Kathmandu, Nepal Ministry of Physical Infrastructure and Transport 75,533,205.66 64,682,418.99

Procurement Plan