Nepal : South Asia Subregional Economic Cooperation Highway Enhancement Project (Kakarbhitta-Laukahi)
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 Officer
Chong, Sin Wai
Sectors Group
Request for information -
Country/Economy
Nepal -
Sector
- Transport
| 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 |
|
||||||||
| 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 | |
| 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) | |
| 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. The project categorization will be revisited based on the outcome of these studies. |
| 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 | 19 May 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 | 16 Sep 2023 | 0.00 | 0.00 | 0% |
| Counterpart | 62.47 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 16 Sep 2023 | 0.00 | 0.00 | 0% |
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 | 16 Sep 2023 | 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 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.
| Title | Document Type | Document Date |
|---|---|---|
| South Asia Subregional Economic Cooperation Highway Enhancement Project (Kakarbhitta-Laukahi): Updated Environmental Impact Assessment | Environmental Impact Assessments | Jan 2023 |
| South Asia Subregional Economic Cooperation Highway Enhancement Project (Kakarbhitta-Laukahi): Updated Environmental Impact Assessment | Environmental Impact Assessments | Oct 2022 |
| South Asia Subregional Economic Cooperation Highway Enhancement Project (Kakarbhitta-Laukahi): Updated Resettlement Plan | Resettlement Plans | Jun 2022 |
| South Asia Subregional Economic Cooperation Highway Enhancement Project (Kakarbhitta-Laukahi): Draft Resettlement Plan | Resettlement Plans | Jun 2022 |
| SASEC Highway Enhancement Project (Kakarbhitta-Laukahi): Environmental Impact Assessment | Environmental Impact Assessments | Jun 2022 |
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.
ADB Approves $300 Million Loan to Improve Road Connectivity and Trade in Nepal
ADB has approved a $300 million loan to improve transport connectivity of the Kakarbhitta–Laukahi road in Nepal to international trade routes, particularly to India and Bangladesh.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Institutional Strengthening of Project Implementation, Climate Change, and Disaster Risk Resilience in the Road Sector | Firm - Consulting | Active | ||
| 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
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| South Asia Subregional Economic Cooperation Highway Enhancement Project (Kakarbhitta-Laukahi): Procurement Plan | Procurement Plans | Mar 2022 |