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Priority River Basins Flood Risk Management Project

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Priority River Basins Flood Risk Management Project Report and Recommendation of the President to the Board of Directors Project Number: 52195-001 September 2020 Proposed Loan, Grant, and Technical Assistance Grant Nepal: Priority River Basins Flood Risk Management Project Distribution of this document is restricted until it has been approved by the Board of Directors. Following such approval, ADB will disclose the document to the public in accordance with ADB's Access to Information Policy. CURRENCY EQUIVALENTS (as of 11 August 2020) Currency unit – Nepalese rupee/s (NRe/NRs) NRe1.00 = $0.00834 $1.00 = NRs119.90000 ABBREVIATIONS ADB – Asian Development Bank CBDRM – community-based disaster risk management COVID-19 – coronavirus disease DHM – Department of Hydrology and Meteorology DWRI – Department of Water Resources and Irrigation EIRR – economic internal rate of return EMP – environmental management plan FFEWS – flood forecasting and early warning system GESI-AP – Gender Equality and Social Inclusion Action Plan ha – hectare IED – Independent Evaluation Department IEE – initial environmental examination MEWRI – Ministry of Energy, Water Resources and Irrigation O&M – operation and maintenance PAM – project administration manual PIC – project implementation consultant PMU – project management unit TA – technical assistance NOTES (i) The fiscal year (FY) of the Government of Nepal and its agencies ends on 15 July. “FY” before the calendar year denotes the year in which the fiscal year ends, e.g., FY2020 ends on 15 July 2020. (ii) In this report, “$” refers to United States dollars. Vice-President Shixin Chen, Operations 1 Director General Kenichi Yokoyama, South Asia Department (SARD) Director Mio Oka, Environment, Natural Resources and Agriculture Division (SAER), SARD Team leader Suzanne Marsh, Water Resources Specialist, SAER, SARD Team members Mikael Andersson; Financial Management Specialist, Portfolio, Results, and Quality Control Unit, SARD Angelique Dawn A. Badelles, Associate Safeguards Officer (Resettlement), Office of the Director General, SARD Arnaud Cauchois, Principal Water Resources Specialist, SAER, SARDa Katrina L. Magpatoc, Operations Assistant, SAER, SARD Rachel F. Mendinueto, Associate Project Analyst, SAER, SARD Soma Misra, Procurement Specialist, Procurement Division 1, Procurement, Portfolio, and Financial Management Department Roshan Ouseph, Senior Counsel, Office of the General Counsel Deepak Singh, Senior Environment Officer, Nepal Resident Mission (NRM), SARD Suman Subba, Senior Social Development Officer (Gender), NRM, SARD Peer reviewer Geoffrey Wilson, Senior Water Resources Specialist, Water Sector Group, Sustainable Development and Climate Change Department a Outposted to the India Resident Mission. 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. CONTENTS Page PROJECT AT A GLANCE MAP I. THE PROPOSAL 1 II. THE PROJECT 1 A. Rationale 1 B. Project Description 3 C. Value Added by ADB 4 D. Summary Cost Estimates and Financing Plan 4 E. Implementation Arrangements 6 III. ATTACHED TECHNICAL ASSISTANCE 7 IV. DUE DILIGENCE 7 A. Technical 7 B. Economic and Financial Viability 8 C. Sustainability 9 D. Governance 9 E. Poverty, Social, and Gender 10 F. Safeguards 10 G. Summary of Risk Assessment and Risk Management Plan 11 V. ASSURANCES 12 VI. RECOMMENDATION 12 APPENDIXES 1. Design and Monitoring Framework 13 2. List of Linked Documents 16 Project Classification Information Status: Complete PROJECT AT A GLANCE 1. Basic Data Project Number: 52195-001 Project Name Priority River Basins Flood Risk Management Department/Division SARD/SAER Project Country Nepal Executing Agency Ministry of Energy, Water Borrower Government of Nepal Resources and Irrigation Country Economic https://www.adb.org/Documents/LinkedDocs/ Indicators ?id=52195-001-CEI Portfolio at a Glance https://www.adb.org/Documents/LinkedDocs/ ?id=52195-001-PortAtaGlance 2. Sector Subsector(s) ADB Financing ($ million) Agriculture, natural Rural flood protection 40.00 resources and rural Rural water policy, institutional and capacity development 10.00 development Total 50.00 3. Operational Priorities Climate Change Information Addressing remaining poverty and reducing inequalities GHG reductions (tons per annum) 0 Accelerating progress in gender equality Climate Change impact on the High Tackling climate change, building climate and disaster resilience, and Project enhancing environmental sustainability Promoting rural development and food security ADB Financing Strengthening governance and institutional capacity Adaptation ($ million) 7.00 Mitigation ($ million) 0.00 Cofinancing Adaptation ($ million) 0.00 Mitigation ($ million) 0.00 Sustainable Development Goals Gender Equity and Mainstreaming SDG 1.5 Effective gender mainstreaming (EGM) SDG 2.4 SDG 5.5 Poverty Targeting SDG 13.a General Intervention on Poverty 4. Risk Categorization: Low . 5. Safeguard Categorization Environment: B Involuntary Resettlement: C Indigenous Peoples: B . 6. Financing Modality and Sources Amount ($ million) ADB 50.00 Sovereign Project grant: Asian Development Fund 10.00 Sovereign Project (Concessional Loan): Ordinary capital resources 40.00 Cofinancing 0.00 None 0.00 Counterpart 13.00 Government 13.00 Total 63.00 Note: An attached technical assistance will be financed on a grant basis by the Technical Assistance Special Fund (TASF-6) in the amount of $500,000; Water Financing Partnership Facility-NET TF in the amount of $750,000. Currency of ADB Financing: US Dollar, Nepalese Rupee Source: Asian Development Bank This document must only be generated in eOps. 25032020123619031705 Generated Date: 04-Sep-2020 18:14:51 PM NEPAL PRIORITY RIVER BASINS FLOOD RISK MANAGEMENT PROJECT SimikotSimikot DarchulaDarchula Kimri ChainpurChainpur BaitadiBaitadi Kolti GamgadhiGamgadhi Patan DadeldhuraDadeldhura MMartadiartadi Silgarhi JumlaJumla Bhatkanda DipayalDipayal MangalsenMangalsen ManmaManma DDunaiunai Banbasa BBheemdattheemdatt GGodawariodawari DDailekhailekh JomsomJomsom JajarkotJajarkot Babiyachour ChameChame DhangadhiDhangadhi MusikotMusikot BBirendranagarirendranagar BeniBeni SalyanSalyan Sittalpat PPokharaokhara DDhunchehunche LiwangLiwang BaglungBaglung BesisaharBesisahar GulariyaGulariya Kohalpur KKusmausma Tulsipur PPyuthanyuthan GGorkhaorkha BidurBidur TamghasTamghas SyangjaSyangja ChautaraChautara SandhikharkaSandhikharka DamauliDamauli NepalganjNepalganj GGhorahihorahi Waling Mugling Kakani Barhabise Lamahi DhadingbesiDhadingbesi Kathmandu CCharikotharikot MOHANA KHUTIYA TansenTansen Thankot BBhaktapurhaktapur Jiri BButwalutwal BBharatpurharatpur Dakshinkali Meghauli LLalitpuralitpur SalleriSalleri TaulihawaTaulihawa KKhandbarihandbari TTaplejungaplejung WEST RAPTI Bhairahawa PParasiarasi Baruwa Bhimphedi BhojpurBhojpur HHetaudaetauda RamecchapRamecchap Krishnanagar DDikteliktel Lohathar Bhimeshwar OkhaldhungaOkhaldhunga PhidimPhidim Lumbini SindhulimadiSindhulimadi Basantpur TerhanthumTerhanthum Pathlaiya DhankutaDhankuta IlamIlam BirgunjBirgunj Dhalkebar N EAST RAPTI KKalaiyaalaiya MMalangawaalangawa GGaighataighat DharanDharan Kakarbhitta GGauraur JJanakpuranakpur Maikhola Lahan Itahari SirahaSiraha ChandragadhiChandragadhi 0 20 40 60 80 100 RajbirajRajbiraj BBiratnagariratnagar JaleswarJaleswar Rangeli Kilometers LAKHANDEI Priority Basin BAKRAHA MAWA RATUWA River National Capital Provincial Capital District Headquarters Town/Market Center National Highway 194311 19NEP ABV 19NEP 194311 Feeder/District Road This map was produced by the cartography unit of the Asian Development Bank. District Boundary The boundaries, colors, denominations, and any other information shown on this Provincial Boundary map do not imply, on the part of the Asian Development Bank, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries, Boundaries areInternational not necessarily Boundary authoritative. colors, denominations, or information. I. THE PROPOSAL 1. I submit for your approval the following report and recommendation on a proposed loan and a proposed grant to Nepal for the Priority River Basins Flood Risk Management Project. The report also describes proposed technical assistance (TA) for the Implementation Support for the Priority River Basin Flood Risk Management Project, and if the Board approves the proposed loan and grant, I, acting under the authority delegated to me by the Board, approve the TA.1 2. The project will improve the resilience of communities to flooding in six river basins (para. 9) in the Terai region (Map).2 It is in line with Nepal’s National Water Plan, 2002–2027 to reduce social and economic losses from water-induced disasters through blending structural and nonstructural measures.3 The project will protect agricultural land and households in priority areas from a 1-in-50-year return period flood by constructing flood embankments, spurs, and outlet structures. The local response to flooding will be strengthened through the installation of flood forecasting and early warning systems (FFEWS) and community-based disaster risk management (CBDRM). II. THE PROJECT A. Rationale 3. Strategic context. Nepal’s comparatively low level of development in South Asia and complex geography render the country vulnerable to climate change impacts and prone to natural hazards.4 During the monsoon season (June–September), Nepal
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