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Nepal, Urban Transport Planning and Management

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Nepal, Urban Transport Planning and Management Technical Assistance Report Project Number: 44238 Capacity Development Technical Assistance (CDTA) December 2011 Nepal: Urban Transport Planning and Management The views expressed herein are those of the consultant and do not necessarily represent those of ADB’s members, Board of Directors, Management, or staff, and may be preliminary in nature. CURRENCY EQUIVALENTS (as of 18 November 2011) Currency Unit – Nepalese rupee/s (NRe/NRs) NRe1.00 = $0.012389 $1.00 = NRs80.72 ABBREVIATIONS ADB – Asian Development Bank BSC – Biratnagar Submetropolitan City CDIA – City Development Initiatives in Asia DOR – Department of Roads DOTM – Department of Traffic Management DUDBC – Department of Urban Development and Building Construction MPPW – Ministry of Physical Planning and Works REC – regional economic center TA – technical assistance TECHNICAL ASSISTANCE CLASSIFICATION Type – Capacity development technical assistance (CDTA) Targeting classification – General intervention Sector (subsector) – Transport, and information and communication technology (urban transport) Themes (subthemes) – Capacity development (institutional development), economic growth (widening access to markets and economic opportunities), and environmental sustainability (urban environmental improvement) Location impact – Urban (high), rural (low), national (medium), regional (low) NOTE In this report, "$" refers to US dollars. Vice-President X. Zhao, Operations 1 Director General S. H. Rahman, South Asia Department (SARD) Director S. Widowati, Transport and Communications Division, SARD Team leader C. Chen, Transport Specialist, SARD Team members H. Iwasaki, Principal Portfolio Management Specialist, SARD N. Saito, Senior Urban Development Specialist, SARD A. D. Shrestha, Project Officer (Transport), SARD W. Tawisook, Transport Specialist, SARD K. Yangzom, Environment Specialist, SARD In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. I. INTRODUCTION 1. The Government of Nepal has requested capacity development technical assistance (TA) from the Asian Development Bank (ADB) to strengthen its capacity for planning and managing urban transport.1 The TA is included in ADB’s country operations business plan 2011–2013.2 A fact-finding mission was fielded from 15 to 19 August 2011 to formulate the TA together with the government and other stakeholders. The mission reached agreement with the government on the impact, outcome, outputs, implementation arrangements, cost, financing arrangements, and terms of reference for the consulting services. A design and monitoring framework is in Appendix 1. II. ISSUES 2. The end of Nepal’s decade-long conflict has brought opportunities for sustainable economic development. The restoration of peace is benefiting the economy as a whole and in particular the services sectors. The services sectors have recorded an average annual growth rate of 5.5% since 2006, which is about 1.5% higher than that of overall gross domestic product during the same period.3 This growth is being driven by the health, social, communication, education, and tourism-related sectors. Such a growth pattern highlights the fast expansion of urban areas where most of these services are provided. 3. Like most countries, cities in Nepal are the prime centers for economic growth, offering a more secure and convenient life than rural areas. In 2010, only about 19% of Nepali lived in urban areas, far behind the world average of 50.5%. However, the urban population is increasing by over 4.7% annually, which is much faster than the world average of 1.85%.4 Nepal still has significant potential for further migration of the rural population to urban areas, and the fast pace of urbanization presents big and immediate challenges for city managers. The cities need to be prepared, both in institutional capacity and physical infrastructure, to accommodate the demands for quality urban life with accessible basic services such as transport, water supply and sanitation, and waste management. 4. In Nepal, Kathmandu Valley has led the trend toward urbanization for decades, with relatively little investment being made in other urban areas. With a population of about 2 million, further development of Kathmandu Valley is now facing constraints from its physical limitations.5 Outside Kathmandu Valley, the pressing development issues in major urban areas are the lack of capacity for urban planning, and the shortage of resources for providing basic services, including public transport. In addition, in cities and towns outside Kathmandu Valley, urbanization is expected to increase at a faster pace than before. Proactive transport planning and management is therefore becoming necessary and urgent to accommodate the growing demand for urban transport. 1 The TA first appeared in the business opportunities section of ADB’s website on 11 August 2011. 2 ADB. 2010. Nepal: Country Operations Business Plan 2011–2013. Manila. The TA title has been changed from “Green Transport Initiative” in the country operations business plan (COBP) to “Urban Transport Planning and Management” following discussions with the government. The TA type and amount remain the same as in the COBP. 3 Ministry of Finance. 2011. Economy Survey. Kathmandu. 4 Central Intelligence Agency. 2011. The World Factbook. Washington, DC. 5 ADB. 2010. Report and Recommendation of the President to the Board of Directors: Proposed Loan, Grant, and Administration of Grant to Nepal for the Kathmandu Sustainable Urban Transport Project. Manila. 2 5. In Nepal, basic urban services are jointly managed by three tiers of government: the central government, district development committees, and municipalities. The municipalities are responsible for leading urban planning and development management, but most of them are seriously handicapped by the shortage of capacity in planning, management, and revenue generation. No dedicated unit or section for urban transport has been established in the municipalities. 6. The Government of Nepal adopted the National Urban Policy in 2007. This gives priority to (i) achieving a balanced national urban structure by directing infrastructure development and investment in regional economic centers (RECs), (ii) improving the quality of urban life by building a clean, safe, and well-developed urban environment, and (iii) establishing effective urban management by empowering capable local institutions.6 Five RECs were identified in the National Urban Policy, including Biratnagar (Eastern Region), Birgunj (Central Region), Butwal (Western Development Region), Nepalgunj (Mid-Western Development Region), and Dhangadi (Far-Western Development Region). Among the five RECs, Biratnagar is the largest. It is also the second largest city in Nepal with a population of 166,674 in 2001. The estimated population in 2011 is over 200,000. 7. Biratnagar is located on the southeastern border with India, a traditional hub for agriculture, industry, and trade. The city is a gateway to India and other neighboring countries, which makes it a major center for international and domestic trips. The Government of India is assisting Biratnagar in building an integrated check-post to manage cross-border activities, and in connecting the city with the railway network of India. Construction of roads linking Nepal to the People’s Republic of China is also underway. In addition, Biratnagar is close to Bangladesh and Bhutan. As a result of its improved connectivity to neighboring countries and its strategic role as an economic hub, the urbanization of Biratnagar will proceed at a fast pace. 8. To cope with this fast-paced urbanization, the urban transport system of Biratnagar needs to be systematically planned and effectively managed to ensure its affordability, accessibility, safety, and environmental sustainability. The urban road network of Biratnagar includes about 155 km of paved roads, 160 km of gravel, and 140 km of unpaved roads. Traffic congestion is now becoming serious at the major junctions, but no traffic signals have yet been installed. The city has four small bus parks for intercity transport services. One of these is being upgraded to a main terminal with a loan from the Town Development Fund of the Ministry of Physical Planning and Public Works (MPPW). The intracity transport services are mainly provided by cycle rickshaws, which, together with pedestrians, share street space with motorized traffic, thus giving rise to issues of mobility and safety. 9. The municipality of Biratnagar Submetropolitan City (BSC) is responsible for urban development, including urban transport planning and management. However, its strategies for urban transport and land use are not integrated, thus hampering the BSC’s efforts to manage effectively the city’s travel demands. The main issues regarding Biratnagar’s urban transport are (i) the absence of a comprehensive urban transport and land use strategy that covers travel demand management, improvement of the urban road network, traffic management, parking management, public transport services, and non-motorized traffic, to support the city’s development goals, (ii) the lack of urban transport management capacity, including road asset management, traffic monitoring and management, parking management, environment monitoring, and stakeholder coordination, both
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