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Final Report on Program Formulation Study for Agriculture and Rural Development in Sindhuli Road Corridor in Nepal

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Final Report on Program Formulation Study for Agriculture and Rural Development in Sindhuli Road Corridor in Nepal No. FINAL REPORT ON PROGRAM FORMULATION STUDY FOR AGRICULTURE AND RURAL DEVELOPMENT IN SINDHULI ROAD CORRIDOR IN NEPAL AUGUST 2009 JAPAN INTERNATIONAL COOPERATION AGENCY M&Y CONSULTANTS CO. LTD. KRI INTERNATIONAL CORP. SAD JR 09-012 Location Map Final Report on Program Formulation Study for Agriculture and Rural Development in Sindhuli Road Corridor SUMMARY1 CHAP. 1 INTRODUCTION 1.1 Background After a long period of political chaos and civil unrest in Nepal, peace talks commenced in 2006 between the Seven Party Alliance (SPA) and the Maoist party. In 2007, the interim constitution, incorporating the concepts of “Abolishing the Kingdom” and “Introduction of the Federal Republic” was officially proclaimed and an Interim Congress was established in 2008 after a new constitution was formed. Since 1996 throughout these changing circumstances Japan has been providing assistance to Nepal in the construction of the Sindhuli Road with funding from Japan’s Grant Aid program, overcoming various difficulties encountered during the conflict. The Sindhuli Road Corridor (SRC) area is one of the poorest regions in Nepal and was badly affected by the conflict. Accordingly, it is anticipated that economic development of the region would contribute to the correction of disparities among regions and serve as a determent to the conflict. This would inevitably lead to increased production of high value agricultural products and resulting market expansion. In this circumstance, JICA decided to a formulate cooperation program for the SRC area to improve the lives of the area’ residents. A temporary access road was completed last year, and feeder roads to the Sindhuli Road are currently being constructed, with more planned for expansion. The Road construction will be completed within the next few years. 1.2 Objectives of the Study In February 2009 JICA prepared a position paper to assist agricultural and rural development in Nepal that focused on the following aspects: (1) Strengthening food security (2) Increasing farmers’ agricultural income (3) Strengthening technical extension activities and farmers’ organizations In the Study, (2) and (3) above would be the focus in the SRC area to materialize impacts by the road constructed under Japan’s grant aid program, since it is not profitable to produce food grains in hill and mountain areas and major food grain production areas are located in the Tarai plain. The objectives of this study are therefore to identify the constraints on agricultural development, other than the production of cereal crops, including fruits, HVC, livestock and so on; to assess the potential of agriculture and related industries in the SRC; and to formulate tangible cooperation programs for agricultural development in the area. 1 Section number of this Summary is not in sequence as it follows section number in the main text. S - 1 1.3 Strategy of the Study 1.3.1 Organization of the Study JICA has entrusted the Study on two institutions, one is the NARMA Consultancy Pvt. Ltd., in Nepal (hereinafter called the NARMA) and the M&Y Consultants Co. Ltd., in association with the KRI International Corp. in Japan (hereinafter called the Study Team). The NARMA started the works in the beginning of February 2009 to conduct collection of data and information, defining the objective districts for the Study as well as field surveys on farmers’ households, marketing and so on. One the other hand, the Study Team started the works in the early March 2009 by preparing the Inception Report in Japan. At the same time, the Study Team contacted the NARMA for coordination to finalize the questionnaire of the household (HH) survey and market and other surveys. Accordingly, it was indispensable that the Study Team coordinates with the NARMA to carry out the Study. As a matter of fact, the Inception Report prepared by the NARMA provided adequate data and information through the available literature collected, which helped the Study Team understand the present conditions in agriculture, feeder road construction policies, agriculture policies, practices and agriculture production of the country and the objective area. 1.3.2 Basic Strategy for Conducting the Study The following aspects are taken into consideration as basic strategies in carrying out the study: (1) Formulation of tangible programs that are feasible to implement (2) Maximization of synergy effects among institution/policy, production/processing, marketing and social and economic infrastructure (3) Formulating ownership and leadership among stakeholders 1.3.3 Selection of Study Districts The study districts are selected among districts in which the Sindhuli Road (SR) directly passes through as well as neighboring districts. The SR passes through the Kavre, Sindhuli and Mahottari Districts, and its neighboring districts are (clockwise from north) Sindhupalchok, Dolakha, Ramechhap, Okhaldhunga, Udayapur, Dhanusa, Sarlahi, Makwanpur, Lalitpur and Bhaktapur. Out of those neighboring districts, the Ramechhap and Dolakha districts were selected for the Study by the preliminary study by NARMA as Ramechhap is divided by the Sun Koshi River with the Sindhuli District and the SR passes along the Sun Koshi River in the Sindhuli District. Further, bridge construction crossing the Sun Koshi River connecting the Sindhuli and Ramechhap districts will be completed before the Section III of the SR will be completed, while Dolakha Districts is located to the north of Ramechhap and connected to the strategic road linked to the bridge connected to the SR. Accordingly, the Ramechhap and Dolakha Districts were selected as study districts. Other neighboring districts are not connected to any strategic road linked to the SR. Accordingly, the five districts, Kavre, Sindhuli, Mahottari, Ramechhap and Dolakha were selected for the Study. This was confirmed by the JICA Head office and the Kathmandu office. 1.4 Methodology The Study has been implemented for the 6-month period from March to August 2009 as shown in the following Figure. This Final Report locates in the end of the Study period. S - 2 Year 2009 Month Feb. Mar. Apr. May Jun. Jul. Aug. Reports Ic/R Ｐ/R Df/R F/R [1st Work in Japan] [2nd Work in Japan] [3rd Work in Japan] -Collection, Compilation and Analysis of the Available Data and Information -Preparation of P/R Works in Japan -Consideration of Surveying Technique and -Preparation of Study Implementation -Explanation of Df/R and Discussion Preparation of Study Implementation Plan Plan on the 2nd Stage Study -Preparation of F/R -Preparation of Ic/R and Review [1st Work in Nepal] Kick off Kick Explanation and Discussion on Ic/R Exchange of View with other Donors Collection and Analysis of Data and Information Review and Analysis of Survey Result by NARMA Defining of Objective Areas as Sindhuli Road Corridor Identification of Development Potential and Disincentive Elements Work Items andFlow Development of Cooperation Program Works in Nepal [2nd Work in Nepal] and Livestock Operation Livestock and Supplementary Survey of Farmers' Economy, Agriculture and Livestock Operation and Marketing Information; Survey on Marketing and Agriculture and on Marketing Survey Information; Workshop Collection, Compilation andAnalysis of the Dataand Selection of Districts for Implementation of Cooperation Program Proposal of Concrete Cooperation Projects Program Formulation Preparation of Df/R Field Surveys on Farmers' Sample Surveys on Farmer's Economy, Agriculture and Livestock Operation household and marketing by Ic/R P/R Df/R F/R and Marketing (1st Stage) NARMA Consultancy Remarks: Ic/R; Inception Report, P/R; Progress Report, Df/R; Draft Final Report, F/R; Final Report 1.4.2 Activities Conducted by the Study Team in the 1st Stage Study (1) Meeting with Relevant Government Agencies The Study Team explained the Study to the relevant government offices including the Ministry of Agriculture and Cooperatives (MOAC), the Ministry of Local Development (MLD), the National Planning Commission (NPC), and the respective District Development Committees (DDCs) and selected Village Development Committees (VDCs) by submitting the Inception Report as soon as mobilizing in Nepal on 22nd March 2009. The initial meetings in Kathmandu were held with all concerned ministries and agencies individually and objectives and expected outcomes of the Study were shared by all stakeholders and commitment of full cooperation of the agencies throughout the Study was obtained. (2) Field Trips and Meetings with Stakeholders After the meeting with the government agencies, the Study Team together with JICA officers and a NARMA representative carried out the 1st field trip throughout the Sindhuli Road, namely Kavrepalanchok, Sindhuli and Mahottari Districts and had meetings with officers of DDC and VDC, District Agriculture Development Office (DADO), District Livestock Service Office (DLSO), Cooperatives, farmers and Non-government Organization (NGO) during the period from 24th to 28th March to confirm actual field and farmers situations. The Study Team also visited the ATEIP project area in Dhading district together with JICA officers to know the actual field conditions just after the completion of the Project on 30th March. The Study Team and a NARMA staff carried out the 2nd field trip on Dolakha and Ramechhap Districts from 5th to 8th April and had meetings with stakeholders. The observation of the field trips was reported in the Annex 1.1. The Study Team visited the Agro Expo 2009 on 12th April and inspected all stalls of the exhibition to know the
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