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Nepal: Rural Reconstruction and Rehabilitation Sector Development Program

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Completion Report Project Number: 40554 Grant Numbers: 0093/0094 August 2014 Nepal: Rural Reconstruction and Rehabilitation Sector Development Program This document is being disclosed to the public in accordance with ADB’s Public Communications Policy 2011. CURRENCY EQUIVALENTS Currency Unit – Nepalese rupee(s) (NRe/NRs) At Appraisal At Program and Project Completion (11 October 2007) (30 June 2013) NRs1.00 = $0.0158 $0.0105 $1.00 = NRs63.20 NRs95.24 ABBREVIATIONS ADB Asian Development Bank DDC district development committee DFID Department for International Development of the United Kingdom DOLIDAR Department of Local Infrastructure Development and Agricultural Roads MFALD Ministry of Federal Affairs and Local Development MOF Ministry of Finance OFID OPEC Fund for International Development PCU project coordination unit SDC Swiss Agency for Development and Cooperation VDC village development committee NOTES (i) The fiscal year (FY) of the Government of Nepal ends on 15 July. FY before a calendar year denotes the year in which the fiscal year ends, e.g., FY2009 ends on 15 July 2009. (ii) In this report, “$” refers to US dollars. Vice-President W. Zhang, Operations 1 Director General H. Kim, South Asia Department (SARD) Country Director K. Yokoyama, SARD Team leader G. Gewali, Senior Project Officer, SARD Team members R. Bhattarai, Operations Assistant, SARD J. Sharma, Gender Consultant, SARD D. Singh, Senior Environment Officer, SARD B. Sitoula, Project Analyst, SARD L. Subedi, Senior Social Development Officer (Safeguards), 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. CONTENTS Page BASIC DATA i I. PROGRAM AND PROJECT DESCRIPTION 1 II. EVALUATION OF DESIGN AND IMPLEMENTATION 1 A. Relevance of Design and Formulation 1 B. Program and Project Outputs 3 C. Program and Project Costs 5 D. Disbursements 6 E. Program and Project Schedules 6 F. Implementation Arrangements 6 G. Conditions and Covenants 7 H. Consultant Recruitment and Procurement 7 I. Performance of Consultants, Contractors, and Suppliers 8 J. Performance of the Recipient and the Executing Agency 8 K. Performance of the Asian Development Bank 9 III. EVALUATION OF PERFORMANCE 9 A. Relevance 9 B. Effectiveness in Achieving Outcome 10 C. Efficiency in Achieving Outcome and Outputs 11 D. Preliminary Assessment of Sustainability 11 E. Institutional Development 12 F. Impact 12 IV. OVERALL ASSESSMENT AND RECOMMENDATIONS 14 A. Overall Assessment 14 B. Lessons 14 C. Recommendations 14 APPENDIXES 1. Program Design and Monitoring Framework 16 2. Policy Matrix 32 3. Project Design and Monitoring Framework 37 4. Program Cost Breakdown by Sources 44 5. Project Cost Breakdown by Sources 45 6. Project Cost Breakdown by Components 46 7. Sourcewise Annual Project Disbursements 47 8. Project Implementation Schedule 48 9. Major Project Covenants and Compliance Status 52 10. Summary of National Competitive Bidding Contracts for Rural Roads 61 11. Summary of National Competitive Bidding Contracts for Motorable Bridges 66 12. Summary of Project Procurement 67 13. Initial Impacts of Rural Roads in Road Influence Area 68 14. Economic Analysis 69 SUPPLEMENTARY APPENDIXES A. Environmental Safeguards Compliance 82 B. Gender Equality and Social Inclusion Action Plan Results 85 C. Social Safeguards Compliance 95 BASIC DATA A. Grant Identification 1. Country Nepal 2. Grant Numbers 0093-NEP, 0094-NEP 3. Program and Project Title Rural Reconstruction and Rehabilitation Sector Development Program 4. Recipient Government of Nepal 5. Executing Agency Ministry of Finance (Program) Ministry of Federal Affairs and Local Development (Project) 6. Amount of ADB Grant $50 million Program; and $50 million (Project) 7. Amount of DFID Grant $20.0 million 8. Amount of OFID Loan $10.0 million 9. Amount of SDC Grant $1.5 million 10. Program and Project Completion Report PCR:NEP 1458 Number B. Grant Data 1. Appraisal – Date Started 2 October 2007 – Date Completed 11 October 2007 2. Loan Negotiations – Date Started 7 November 2007 – Date Completed 8 November 2007 3. Date of Board Approval 12 December 2007 4. Date of Grant Agreement 14 January 2008 5. Date of Grant Effectiveness – In Grant Agreement 13 April 2008 – Actual 1 February 2008 – Number of Extensions 0 6. Closing Date Program Grant – In Grant Agreement 31 December 2011 – Actual 26 January 2012 – Number of Extensions 0 Project Grant – In Loan Agreement 30 June 2012 – Actual 23 June 2014 – Number of Extensions 1 ii 7. Disbursements a. Dates (i) Program Grant Initial Disbursement Final Disbursement Time Interval 15 Feb 2008 4 Mar 2008 0 month Effective Date Original Closing Date Time Interval 1 Feb 2008 31 Dec 2011 47 months (ii) Project Grant Initial Disbursement Final Disbursement Time Interval 18 Sep 2008 13 Nov 2013 61.87 months Effective Date Original Closing Date Time Interval 1 Feb 2008 30 Jun 2012 53 months b. Amount ($ million) (i) Program Grant Tranche Number Amount Disbursed Single Tranche 50.00 iii (ii) Project Grant Last Net Original Revised Amount Amount Amount Undisbursed CAT Category Allocation Allocation Cancelled Available Disbursed Balance 1600 Miscellaneous grant, administration, and support (ADB) 5.63 5.63 3101 Central consulting services (ADB) 2.70 1.60 0.37 1.23 1.23 3102 International consultants (DFID) 0.28 0.20 (0.78) 0.98 0.43 0.55 3103 Domestic consultants (DFID) 0.82 0.59 0.28 0.31 0.23 0.08 3201 Civil work rural roads 18.43 13.38 (1.57) 14.95 13.94 1.01 3202 Civil work supplementary infrastructure 8.76 12.78 (0.24) 13.02 12.80 0.22 3203 Rural roads by communities (DFID) 9.58 6.89 3.06 3.83 3.16 0.67 3204 Rural roads by contractors (DFID) 9.32 6.69 (9.97) 16.66 15.97 0.69 3301 Survey, design, and preparatory works 1.72 2.60 1.57 1.03 0.83 0.20 3601 Land acquisition and resettlement 3.49 5.30 2.78 2.52 2.36 0.16 3602 Vehicles and motorcycles 1.10 0.94 0.01 0.93 0.91 0.02 3603 Equipment 0.76 0.76 (0.32) 1.08 1.06 0.02 3801 Training, studies, and workshops 1.05 1.05 (0.09) 1.14 0.98 0.16 3901 Incremental operating expenses 4.14 3.99 (0.77) 4.76 4.50 0.26 3902 Rural road operation and maintenance 0.48 0.73 (0.09) 0.82 0.67 0.15 4801 District technical services 5.84 5.36 0.99 4.37 4.28 0.09 4901 Unallocated 1.53 1.51 1.36 0.15 0.15 Total 70.00 70.00 2.22 67.78 63.35 4.43 ADB = Asian Development Bank, CAT = Category, DFID = Department for International Development of the United Kingdom. iv 8. Local Costs (Financed) Program Grant - Amount ($ million) 50 - Percent of Local Costs 0 - Percent of Total Cost 60.6 Project Grant - Amount ($ million) 43.56 - Percent of Local Costs 44.88 - Percent of Total Cost 44.88 C. Program and Project Data 1. Program and Project Cost ($ million) Cost Appraisal Estimate Actual (i) Program Grant Local Currency Cost 82.80 82.80 (ii) Project Grant Foreign Exchange Cost Local Currency Cost 78.40 97.05 2. Financing Plan ($ million) Source Appraisal Estimate Actual Program Grant ADB Financed 50.00 50.00 Government of Nepal 32.80 32.80 Total 82.80 82.80 Project Grant ADB Financed 50.00 43.56 OFID Financed 10.00 9.06 DFID Financed 0.00 19.79 SDC Financed 0.00 3.00 Government of Nepal 15.70 18.24 Beneficiary Financed 2.70 3.40 Total 78.40 97.05 ADB = Asian Development Bank, DFID = Department for International Development of the United Kingdom, OFID = OPEC Fund for International Development, SDC = Swiss Agency for Development and Cooperation. 3. Cost Breakdown by Project Component ($ million) Component Appraisal Actual Estimate A. Base Costs Program Grant Enhance poverty reduction and inclusive development 35.50 35.50 Improve inclusive governance and decentralization 11.50 11.50 Support rural infrastructure development 35.80 38.80 Total 82.80 82.80 Project Grant Rural Roads 45.00 63.41 v Supplementary infrastructure 18.00 21.34 Community empowerment 3.20 2.48 Institutional capacity development 0.30 0.50 Project management and services 7.80 9.02 Sub total A 74.30 96.7 5 B. Contingencies 3.80 0.00 C. Interest during Construction 0.30 0.30 Total (A+B+C) 78.40 97.05 4. Project Schedule Item Appraisal Estimate Actual Dates of Contracts with Consultants SKAT Consulting and JV Jul 2008 24 Nov 2008 East Consulting-Sitara-PARD JV Jul 2008 5 Feb 2009 GOEC-Inclusive Consultant JV Jul 2008 8 Feb 2009 CEMACA Consultant Jul 2008 10 Feb 2009 BDA Nepal Jul 2008 12 Feb 2009 GIDA Nepal Jul 2008 16 Feb 2009 CEMACA Consultant Jul 2008 20 Feb 2009 HERD Consultants Jul 2008 22 Feb 2009 East Consulting-BN-Sitara-PARD JV Jul 2008 22 Feb 2009 BDA Nepal Jul 2008 24 Feb 2009 HERD Consultants Jul 2008 25 Feb 2009 GOEC Nepal Jul 2008 27 Feb 2009 RECON Nepal Jul 2008 4 Mar 2009 GIDA Nepal Jul 2008 2 Mar 2009 Masina Engineering Management Consultants Jul 2008 12 May 2009 Everest Eng-Inclusive Consultants JV Jul 2008 28 May 2009 Completion of Engineering Designs Dec 2008 26 Jul 2010 Civil Works Contract Date of Award Sep 2008 22 Sep 2009 Completion of Work Jul 2008 31 Dec 2012 Equipment and Supplies Dates First Procurement Jul 2008 30 Sep 2008 Last Procurement Jul 2009 30 Sep 2011 Other Milestones Extension of Grant Closing Date 31 Dec 2012 Partial Cancellation ($4.0 million) 23 Oct 2013 5.
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