Nepal: Subregional Transport Enhancement Project

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Lessons

Early inclusion of all relevant agencies and clear delineation of implementation responsibilities support the timely and successful completion of projects with multiple components.

The implementation arrangements for projects with multiple components need to include agencies that are in the best position and well equipped to undertake project responsibilities. For example, the inclusion of the Department of Customs as implementing agency for this project’s trade facilitation component and the clear delineation of responsibility for road safety to the Department of Roads, at project start, could have minimized late approval and contractual processes that led to significant startup and implementation delays. Delegation of authority for transport management, including vehicle overloading, to the Department of Transport Management could also have been done earlier.

Project Cycle Stage:

Preparation

Careful consideration of all the factors that could affect the implementation of each component enables the formulation of realistic timetables.

The implementation period provided for all the original project rehabilitation components was uniformly set at two years. However, it was unrealistic to expect that the construction works for all the road sections would take the same amount of time. Particularly, it would normally take longer to complete road sections in hilly and mountainous areas than in flat areas because of (i) longer and harsher wet and cold seasons that effectively limit the number of workdays in the mountains, and (ii) the more time required for sourcing and transporting construction materials to the mountains. The availability of support infrastructure that could impact the completion of a project component or activity should also be considered. For instance, as there was no bridge that spanned a major river in two road sections of this project, construction works in these sections were substantially delayed and went beyond the extended contract completion date approved by the Asian Development Bank (ADB). Careful consideration of all the factors that could affect the implementation of each component will support the formulation of realistic timetables in future similar projects.

Project Cycle Stage:

Preparation

Selecting the most qualified contractors helps ensure high-quality works and efficient delivery of outputs.

Only 2 of the 16 contract packages under this project were completed before the original contract completion date while 9 were completed after the approved extended contract completion date. This highlights the importance of selecting contractor based on adequate financial, logistical, and technical capacity, and prior experience in similar works. While fostering the efficient delivery of outputs, selection of the most qualified contractors will also ensure high−quality works.

Project Cycle Stage:

Implementation

Appropriate contract packages are essential to the procurement of highly qualified contractors.

The packages under this project were not large enough to attract reputable international bidders and most national contractors subcontracted works to unqualified subcontractors. Future projects should consider large enough contract packages to draw interest from qualified international and national contractors. Implementing agencies must also manage and enforce contracts stringently to minimize delays and ensure the quality of works.

Project Cycle Stage:

Implementation

Acquiring a fixed width of land within the declared right of way or corridor of impact can reduce the risk of implementation delays due to land acquisition.

Of the 6 road improvement subprojects, 3 acquired small strips of land, averaging two meters on either side, to accommodate the designed road width; 1 required relocation only for waiting areas; while the available width of the other 2 subprojects was adequate. Notwithstanding its relatively moderate need for land acquisition, the project had to undertake intensive consultations and revise its resettlement plan to comply with ADB safeguard requirements. While the process did not substantially impact the project timetable, there is scope for reducing the risk of implementation delays due to land acquisition in future similar projects. One measure that may be considered is to acquire a fixed-width corridor within the declared right of way or defined corridor of impact, which would also improve the availability of land for future projects.

Project Cycle Stage:

Preparation

Implementation

Background

During project appraisal in 2010, poor transport connectivity was identified as a major development constraint for Nepal. Road transport, the predominant mode that accounted for more than 90% of passenger and freight transport, was supported by a strategic road network that provided links to major economic centers and neighboring countries. However, because of the lack of a north–south link and/or feeder roads, large swathes of remote northern areas with relatively high poverty rates had remained unserved.

To help address the situation, the Asian Development Bank (ADB) approved in October 2010 a $24.5 million loan and a grant of equal amount for the Subregional Transport Enhancement Project. The project was designed to promote the economic development of Nepal’s border areas and remote northeastern hills by expanding national and subregional transport systems to increase domestic and regional trade. Its intended outcome was enhanced connectivity of Nepal’s remote areas and expanded capacity of major international trade corridors to promote inclusive development. The project had three planned key outputs: (i) road improvement, (ii) trade facilitation, and (iii) capacity development of two key agencies—the Department of Roads (DOR) and Road Board of Nepal (RBN).

At completion, about 216 kilometers (km) of road were improved, compared to a target of 193 km. ADB’s earlier support for upgrading the country’s customs system to a web-based, real-time processing tool was continued: a study on customs business processes was undertaken, and an e-customs master plan was formulated and subsequently strengthened with the preparation of a clear-cut implementation schedule and a corresponding business process analysis. Automation training programs for the Department of Customs (DOC) were conducted. Following government signing of a contract with the United Nations Conference on Trade and Development to implement the ASYCUDAWorld system, the project provided the DOC with all the necessary equipment to operate the system. The system was piloted in January 2016 and rolled out across the country in December 2017.

The initial plan to install weigh bridges to strengthen DOR’s capacity in overloading control did not materialize due to the lack of an enabling policy. Nevertheless, the institutional capacities of key sector agencies were substantially enhanced through project management, road asset management, and road technology trainings. Technical handbooks and guidance documents were prepared, and study tours were sponsored.

Successful delivery of its planned outputs enabled the project to achieve its intended outcome, in some cases, surpassing targets. By project completion, the volume of cross-border traffic had increased by 31.6%. Average travel time for all vehicles decreased by 44%. All improved roads became feasible for vehicular movement throughout the year. Time spent to access economic and social services declined by 31.4%.

Women benefitted significantly from the incorporation of some gender elements: time spent to access drinking water decreased by 45%; time spent to reach secondary schools, hospitals, and the nearest employment center declined by 25%, 32%, and 31%, respectively. Similarly, local residents could access HIV testing and treatment by 26% less time.

With improved access to services, women became more aware and assertive of their rights, facilitating some shifts in gender relations and gender roles. Improved connectivity and mobility in the project areas overall contributed to a nearly 25% increase in per capita income from 2010 to 2016.

Nepal's Ministry of Physical Infrastructure and Transport was the executing agency. Project implementation was split between the DOR for road rehabilitation, and the DOC for trade facilitation.

Project Information

Project Name:

Subregional Transport Enhancement Project

Report Date:

July, 2018

Main Sector:

Transport

Country:

Nepal

Project Number:

44143-013

Report Type: