Nepal: Urban Resilience and Livability Improvement Project
The project will support to improve municipal infrastructures and governance of the selected project municipalities, thereby contributing to achieve inclusive economic growth and improved livability . This will be achieved through the following three outputs: (i) municipal infrastructure for resilience developed (Output 1); (ii) Tourism assets revitalized and managed (Output 2); and (iii) capacity of municipalities, provinces and Department of Urban Development and Building Construction strengthened (output 3). The project will support eight municipalities (Pokhara, Janakpur, and a cluster of six municipalities includes Devdaha, Lumbini Sanskirtik, Ramgram, Sainamaina. Siddharthanagar, and Tilottama).
South Asia Department
Request for information
- Water and other urban infrastructure and services
|Project Name||Urban Resilience and Livability Improvement Project|
|Country / Economy||Nepal
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
|Sector / Subsector||
Transport / Urban roads and traffic management
Water and other urban infrastructure and services / Other urban services - Renovation and protection of cultural heritage - Urban flood protection - Urban policy, institutional and capacity development
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The project will support to improve municipal infrastructures and governance of the selected project municipalities, thereby contributing to achieve inclusive economic growth and improved livability . This will be achieved through the following three outputs: (i) municipal infrastructure for resilience developed (Output 1); (ii) Tourism assets revitalized and managed (Output 2); and (iii) capacity of municipalities, provinces and Department of Urban Development and Building Construction strengthened (output 3). The project will support eight municipalities (Pokhara, Janakpur, and a cluster of six municipalities includes Devdaha, Lumbini Sanskirtik, Ramgram, Sainamaina. Siddharthanagar, and Tilottama).|
|Project Rationale and Linkage to Country/Regional Strategy||
1. Economic growth. In recent years Nepal has made significant improvements in economic growth, quality of life, and poverty reduction at the national level. During FY20172019 gross domestic product (GDP) growth has risen on average 7.3% annually and in the past decade incidence of poverty fell from 25% to 18.7%. Despite these gains, the coronavirus disease (COVID-19) global pandemic has posed a setback, shrinking national GDP growth to an estimated 2.3% in FY21. Despite ongoing uncertainties related to the pandemic, modest growth of 4.1% is expected for FY22 as the country's vaccination rollout expands, industrial output increases, and tourist arrivals gradually increase. The vision for Nepal's recovery from the pandemic hinges on a Green, Resilient, and Inclusive Development strategy. In September 2021, the Government of Nepal (the government) and development partners endorsed the "Kathmandu Declaration", which pledges to develop a strategic action plan that aims to support Nepal"s recovery from the COVID-19 pandemic while addressing the interlinked challenges of climate change and rising inequality.
2. Urbanization and urban poverty. Urbanization and well-planned cities are central to Nepal's socioeconomic transformation and economic growth objectives. During 20102015, Nepal was ranked among the 10 least urbanized countries in the world, yet one of the fastest urbanizing with an annual urban growth rate of 3.2%. In 2011, 17.1% of Nepal's population resided in 58 designated urban areas, which increased to 66.1% in 2021. This sudden increase reflects the designation of 159 additional municipalities after the statutory reconstitution of municipal governments in 2016, though many of them are still more rural in terms of density and economic structure. The designation is expected to guide municipal growth and improve service delivery. While poverty across the country fell (para. 1), 12.3% of urban dwellers are still multidimensionally poor in 2021 with high disparities remaining between gender and social groups as well as between regions, and quality of life especially for urban poor is eroding due to unplanned development and poor service delivery.
3. Haphazard development impedes growth. While the contribution of cities to the national economy is significant, the inefficient nature of Nepal's urbanization poses several problems including deficiencies in basic urban services, environmental degradation, encroachment of settlements on hazard prone lands and heritage areas, and sprawling settlements. Nepal's fast-growing cities and towns lack integrated urban planning and capital development plans. Municipalities have not secured and service land in advance to guide development. As a result, unserviced 'ribbon development_ along inadequate road networks is occurring at a rapid pace. Ribbon development locks cities into an urban structure whereby it is costly to provide services, is an inefficient use of land and difficult to retrofit. Recently-established municipalities also face an infrastructure backlog and significant annual financing gap of $1.62.1 billion. The government recognized the need for improved urban and regional planning and capital investment as a national priority, with initial steps taken through adoption of the National Urban Development Strategy in 2017. Ministry of Urban Development has supported municipalities to develop Integrated Urban Development Plans and structure plans for strategically important urban economic corridors in the Terai region (including capital investment plans).
4. Climate and disaster risk impact on urban livability. Haphazard development is not only expensive and inefficient for service delivery, but also drives disaster risk and puts hard-to-manage pressure on existing infrastructure systems and environmental and cultural heritage assets. Nepal is highly vulnerable to the impacts of natural hazards and climate, ranking 12 of 180 countries analyzed for 201
Inclusive growth and living standards improved (Fifteenth Five-Year Plan, FY2020 to FY2024)
Livability and sustainability of urban service delivery by project municipalities improved.
Municipal infrastructure for resilience developed.
Tourism assets revitalized, and management improved.
Capacity of municipalities, provincial government, and DUDBC strengthened.
|Geographical Location||Devdaha, Janakpur Dham, Lumbini Sanskritik, Pokhara, Ramgram, Sainamaina, Siddharthanagar, Tillotama|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Responsible ADB Officer||Sharma, Laxmi|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Urban Development and Water Division, SARD|
Department of Urban Development and Building Construction
Ministry of Urban Development
|Concept Clearance||27 May 2022|
|Fact Finding||15 Mar 2023 to 31 Mar 2023|
|MRM||26 May 2023|
|Last Review Mission||-|
|Last PDS Update||27 May 2022|
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|Title||Document Type||Document Date|
|Urban Resilience and Livability Improvement Project: Initial Poverty and Social Analysis||Initial Poverty and Social Analysis||May 2022|
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