42161-013: Integrated Urban Development Project
Project Data Sheet (PDS): Details
Description
The project will provide the population in the municipalities of Dharan, Janakpur, Nepalgunj, and Siddharthanagar with better access to municipal infrastructure and services in a socially inclusive manner. In accordance with the priorities of each municipality, integrated urban environmental improvements, including drainage systems, solid waste management (SWM) facilities, and urban roads, will be implemented in Janakpur, Nepalgunj, and Siddharthanagar municipalities. A water supply development subproject will be implemented in Dharan municipality. The project will also undertake community development programs (CDPs), focusing primarily on poverty pockets in the municipalities and communities that may not benefit directly from major infrastructure improvement subprojects. Gender equality and social inclusion (GESI) will be mainstreamed in all subprojects in the municipalities, and the capacity to address GESI in the Ministry of Physical Planning and Works (MPPW) will be strengthened by establishing an appropriate institutional structure and mechanisms for GESI mainstreaming.
Project Rationale and Linkage to Country/Regional Strategy
The pace of urbanization in Nepal has increased markedly during 2001 2011 with an urban population growth rate of 3.4% per annum, compared with national population growth of 1.4% per annum. In 2011, 17% of the population was estimated to live in urban areas, up from 9.2% in 1991 and 13.9% in 2001. While global experience clearly demonstrates that urbanization is an important driver of economic development, the potential has not been adequately tapped in Nepal. In the absence of a stringent policy regulating and managing growth, uncontrolled and haphazard urban development has created numerous problems, including deficiencies in basic urban services; environmental degradation; encroachment on public land, forests, and river banks; and sprawling settlement development. Most municipalities in Nepal lack properly engineered and operated sanitary landfills, and have limited and intermittent water supply services, poorly maintained road infrastructure, and inadequate drainage systems that cause recurrent waterlogging problems, mainly in the Terai. The Local Self Governance Act mandates a wide range of functions and responsibilities to municipalities, but the lack of financial and qualified human resources and a low level of institutional capacity make providing infrastructure facilities commensurate with the growing demand for services a major challenge. Poor health, caused by the poor urban environment, saps economic growth by reducing labor productivity and educational attainment. Disease, associated economic burden, and premature death disproportionately affect the poor and vulnerable.
Impact
Improved urban environment in the municipalities of Dharan, Janakpur, Nepalgunj, and Siddharthanagar
Project Outcome
Description of Outcome
Population in project municipalities have inclusively better access to improved municipal infrastructure and services.
Progress Towards Outcome
There are 10 consulting service packages in total: project management and support consultant (PMSC) in the PCO; GESI consultant for the GESI Unit; design and supervision consultants (DSCs) for the four project municipalities of Dharan, Janakpur, Nepalgunj, and Siddharthanagar; and local nongovernment organization (NGO) services in the four project municipalities. Contracts have been awarded for all and are fully been mobilized. Contracts for drainage and road subprojects at Nepalgunj and Siddharthanagar were awarded in Dec 2014. TBER for Integrated Solid Waste Management (ISWM) projects at Siddharthanagar is approved by ADB; and that for ISWM Nepalgunj is under review. Contract for procurement of civil works package for Construction of Dharan Water Supply Subproject was awarded on 25 March 2015 . Similarly, design of the drainage and road project at Janakpur has been finalized and bidding documents are in stage of final review at ADB.
Implementation Progress
Description of Project Outputs
1. Reliable municipal infrastructure developed 2. Community development programs undertaken and GESI capacity strengthened. 3. Project management and administration supported.
Status of Operation/Construction or Implementation Progress
1. Contract for storm water drain and road improvement subprojects at Nepalgunj and Siddharthanagar were awarded in Dec 2014. Contractors have been mobilized in both subprojects and works is ongoing. TBER for ISWM Subproject at Siddharthanagar is recently approved by ADB where as TBER for ISWM Subproject at Nepalgunj is under review. Contract for procurement of civil works package for Construction of Dharan Water Supply Subproject was awarded on 25 March 2015. Detailed design and cost estimate has been finalized for Janakpur Drain and Road Improvement Subproject and Bidding documents for the same is in stage of approval at ADB. Regarding Janakpur ISWM Subproject, a site has been identified for construction of sanitary landfill site and process for procuring the land is ongoing. 2. Under the Community development components of the project different type of hardware (small scale infrastructure) and software (skill development training, awareness raising and capacity building trainings) are ongoing at the Project Municipalities (Dharan, Siddharthanagar and Nepalgunj) by mobilizing NGOs. Social Coordination/GESI Unit established in MoUD and it s departments (DWSS and DUDBC). GESI units have been established in 8 Division and Sub Division Offices of DWSS and 10 Division Offices of DUDBC.GESI operational guidelines finalized and approved. GESI project based Log Frame and GESI operational guideline based toolkits developed. GESI related brochure prepared.Orientation/training on the GESI project based Log Frame developed. GESIoperational guideline based toolkits developed. In Dec 2014, 1 event of Orientation Program on GESI Operational guideline was conducted to 16 Sub/Division Offices in Eastern Development Region of DWSS. Similarly, 1 event of Regional level orientation on GESI Operational Guideline was organized to head of Sub/ Division Offices of DWSS. 3. Project Coordination Office and Project Implementation Units have been established and is in full operation with all key staff positions fulfilled. PCO and PIUs are taking responsibility for overall management and administration of project related matters. Also the quarterly proress reports, audit reports and safeguard (environment and social) documents and reports are being submitted to ADB as per requirements. There has been delay in procurement process of Janakpur subprojects and especially the ISWM subproject due to issues in finalizing site for contruction of sanitary landfill site. At present some postitive development is being made also in this package.
Safeguard Categories
Environment: B
Involuntary Resettlement: B
Indigenous Peoples: C
Summary of Environmental and Social Aspects
Environmental Aspect
The project is classified as environmental category B. Four initial environmental examinations including environmental management plans were prepared in accordance with ADB s Safeguard Policy Statement (2009) and government laws, and disclosed. Subprojects are not located in or near sensitive or protected areas, and the initial environmental examinations conclude that no significant adverse impacts are anticipated from proposed locations, designs, and construction activities. The environmental management plans provide adequate mitigation measures to ensure impacts are limited and of short duration. The net environmental benefits will be positive and large, including reduced (i) urban flooding from improved drainage systems, (ii) environmental pollution from improved SWM, and (iii) health and hygiene status as well as the overall environmental sanitation situation of the selected povery clusters of the project municipalities will be improved through various software and hardware activities under small scale community infrastructure. Implementation arrangements in the PCO build on experience gained through ADB urban projects, and consultant support will enable the PIUs to manage environmental impacts. The PCO has been providing environment safeguard related reports/ documents to ADB as required. The project had alredy submitted Semi annual environmental safeguard monitorting report covering the period of June-Dec 2014. This has been disclosed in ADB's web site.
Involuntary Resettlement
The project is classified as category B for involuntary resettlement and category C for indigenous peoples. Three draft resettlement plans were prepared in consultation with affected persons in accordance with the ADB s Safeguard Policy Statement and disclosed. Also the updated resettlement plan of the subproject have been / are being finalised based on the final design of the subprojects. The project requires minor land acquisition for construction of sanitary landfills and temporary impacts on vendors during construction, with no significant resettlement impacts anticipated. Special assistance measures will be made available to vulnerable groups. The resettlement plans will be implemented by the PIUs and monitored by the PCO, and adequate consultant inputs have been made available to support implementation and build capacity to managing resettlement impacts and social risks. The project has been reporting compliance to social safeguard related issues by the PIUs in the quarterly as well as semi anuual social safeguard monitoring report to the ADB. The semi annual safeguard monitoring report covering the period of June-Dec 2014 has already been submitted.
Indigenous Peoples
The project is classified as category B for involuntary resettlement and category C for indigenous peoples. Considering the urban locations of these subprojects, no impacts to indigenous peoples are expected.
Stakeholder Communication, Participation and Consultation
During Project Design
Urban services are limited outside Kathmandu Valley. Physical limitations restrict further development in the valley, and there is an urgent need to improve the environment in potential urban centers to promote social and economic development in other regions of Nepal. The government, represented by the Department of Urban Development and Building Construction (DUDBC), developed the criteria for selecting strategically important towns. Dharan, Janakpur, Nepalgunj, and Siddharthanagar were chosen for the project on the basis of (i) economic growth potential, (ii) demand for urban services, and (iii) urban management capacity. The project directly addresses and conforms to the development policy of Nepal, as expressed in the NUP and Three-Year Plan Approach Paper, by improving the environment of urban centers that work as catalysts for economic development, which will help contribute to the employment-centric, equitable, and inclusive economic growth emphasized by the approach paper. Urban infrastructure and facilities have tended not to fully recognize social differentials in the needs of women, the poor, and excluded groups. People living in municipal poverty pockets experience discrimination based on gender, caste, and ethnicity, and multiple exclusions constrain their progress and access to services. Their participation in community activities is limited due to lack of access to information and resources, although progress has been made through support for their empowerment and mobilization from various NGOs and development partners. To be effective, urban development must integrate GESI.
During Project Implementation
The project is in line with the Nepal country partnership strategy of the Asian Development Bank (ADB), which rests on four pillars: broad-based and inclusive economic growth, inclusive social development, governance and capacity building, and climate change adaptation and environmental sustainability. Reflecting lessons from similar projects, the project (i) focuses on a small number of physically integrated components, to simplify project administration and optimize inter-sector linkages; (ii) is confined to larger municipalities with relatively higher technical and financial capacity to implement the project and create discernable development impacts; (iii) fully involves stakeholders, including communities, in project identification and design from an early stage; (iv) provides capacity development support before project implementation; and (v) addresses enforcement of appropriate regulations as an essential element of managing urban infrastructure effectively. Therefore as envisioned by the Project, the project coordination office and project implementation units are doing consultation with the concerned stakeholders as and when needed and also been disseminating the relevant project related information to the public. Also due consideration has been given for the meaningful participation of the concerned project stakeholders in reaching project related decisions.
Status of Covenants
| Category | Rating |
|---|---|
| Loan 2851 | |
| Sector | Satisfactory |
| Social | Satisfactory |
| Financial | Satisfactory |
| Economic | – |
| Others | Satisfactory |
| Safeguards | Satisfactory |
| Project Financial Statements | – |
| Grant 0284 | |
| Sector | Satisfactory |
| Social | Satisfactory |
| Financial | Satisfactory |
| Economic | – |
| Others | Satisfactory |
| Safeguards | Satisfactory |
| Project Financial Statements | – |
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.
View the latest procurement notices for Goods, Works and Related Services, or Consulting Services.