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Road Network Development :  Nepal :Go to Project Summary

Road Network Development :  Nepal

Timetable  |  Financing Plan and Loan Utilization  |  Project Outcome  |  Implementation Progress  |  Status of Covenants

Loan Name Road Network Development
Country Nepal
Loan Number 1876
Project Number 29472- 01
Source of Funding/Amount[Approved]
Asian Development Fund US$46.00  million
Sector/Subsector Transport and ICT / Road Transport
Description The principal objective of the Project is to assist the Government to improve transport efficiency and thereby enable the country to stimulate economic growth and job creation, leading to reductions in poverty. The Project will maintain about 140 km of the EWH, improve approximately 165 km of roads to all-weather paved surface, construct a district headquarters access road of about 96 km using environment-friendly, labor-based construction methods, develop and implement performance-based maintenance on about 200-300 km of the network, and improve about 10 km of cross-border access road. The Project will induce more efficient movement of goods and passengers, provide better access to income and employment opportunities and to education and health centers; improve public sector implementation and maintenance capacity in the road sector; support development of private sector capabilities to carry out road improvement and maintenance by contract; improve road safety and axle-load control; and provide community access and complementary facilities through a participatory approach leading to poverty reduction.
Project Outcome
Outcome Progress Toward Outcome
Increased efficiency in freight/passenger movement, improved access for the poor to social services and markets and increased employment opportunities. The project outcomes are likely to be achieved.
Implementation Progress
Outputs Status of Implementation Progress (Outputs, Activities and Issues)
1. Improvement of the East-West highway

A. Improvement of 140 km of the East-West highway
B. Biratnagar-Bardanga; Urlabari-Bardanga (BBUB)

2. Improvement of feeder roads and important district roads in the hill and terai regions

A. Damak-Gauringaj
B. Dolalghat-Chautara Road
C. Pouwa-Phidim
D. Hile-Basantapur
E. Basantapur-Mudhe
F. Piluwa Khola Bridge

3. Construction of feeder roads to connect district headquarters (Mudhe-Khandbhari)

4. Performance based maintenance

5. Road Safety and Axle Load Control.

6. Poverty Intervention
1. Improvement of the East-West highway

A. Improvement of 140 km of the East-West highway:

The physical progress so far includes 92 km pavement maintenance (90 km overlay and 2 km reconstruction). Cumulative progress is 78% against target of 100%

B. Biratnagar-Bardanga; Urlabari-Bardanga (BBUB)

Substantially completed.

2. Improvement of feeder roads and important district roads in the hill and terai regions

A. Damak-Gauringaj: Contract completed.
B. Dolalghat-Chautara Road: Contract completed.
C. Pouwa-Phidim: Contract completed.
D. Hile-Basantapur: Two contracts completed works. Other two have completed 81% and 55% against the target of 100%.
E. Basantapur-Mudhe: 41% works completed against the revised target of 71%.
F. Piluwa Khola Bridge: The construction works have started and expected to be completed by March 2009.
3. Construction of feeder roads to connect district headquarters (Mudhe-Khandbhari)

In 2008, there has been slow progress in road construction. There is funding shortfall which needs to be resolved soon by DOR.

4. Performance based maintenance

Contract 1: Only 34km work complete out of a target of 56km
Contract 2: Complete. 52 km
Contract 3: Complete. 50 km
Contract 4: Complete. 46.75km
Hetauda-Narayani Bridge: 51.88% completed against a target of 57.41%

5. Road Safety and Axle Load Control.

The Government has approved the heavy vehicle management policy. Installation and calibration of weighing equipments and trainings to relevant DOR staff would be completed by 31 December 2008.

6. Poverty Intervention

A social development specialist and two NGOs were mobilized for poverty activities for Mudhe-Khandbari road. About 600 poor families were organized into saving and credit groups, and about 300 persons were provided with skills training. 10 small scale infrastructures were planned, which will be constructed by 31 December 2008. Under TA 4760-NEP, five NGOs were mobilized for BBUB, DC and PP roads to carry out skills training and income generation activities. TA has been completed
Geographical Location Eastern, Central, Mid-Western and Far-Western Dev. Regions.
Safeguard Categories Safeguard Categories explained (Launches new browser window)
  Environment B
  Resettlement C
Responsible ADB Officer Amulya Shrestha
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Concept Clearance 08 Mar 1999
Fact-finding 19 Mar 2001 to 06 Apr 2001
Appraisal 27 Jun 2001 to 10 Jul 2001
Board Approval 13 Dec 2001
Loan No. Approval Signing Effectivity Original Revised Actual
1876-NEP 13 Dec 01 10 Dec 02 11 Mar 03 31 Dec 07 30 Jun 09 11 Jan 10

Financing Plan Top Loan Utilization
  TOTAL ( Amount in US$ million)
Project Cost 46.00
ADB 46.00
Counterpart 0.00
Cofinancing 0.00
Date ADB OTHERS Net Percentage
Cumulative Contract Awards
31 Aug 2015 44.020 98%
Cumulative Disbursements
31 Aug 2015 45.062 100%
Top Status of Covenants
Category Sector Social Financial Economic Others Safe
Rating Satisfactory
2008 Asian Development Bank

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