The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) SOUTH ASIA | Nepal | Transport Global Practice | IBRD/IDA | Investment Project Financing | FY 2020 | Seq No: 9 | ARCHIVED on 31-Jan-2024 | ISR59756 | Implementing Agencies: Ministry of Industry, Commerce and Supplies, Ministry of Physical Infrastructure and Transport, Nepal Key Dates Key Project Dates Bank Approval Date: 10-Jun-2020 Effectiveness Date: 24-Jul-2020 Planned Mid Term Review Date: 15-Jul-2024 Actual Mid-Term Review Date: Original Closing Date: 15-Jul-2027 Revised Closing Date: 15-Jul-2027 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To improve the efficiency and safety of select transport infrastructure, improve the efficiency of cross-border trade, and strengthen capacity for Strategic Road Network management in Nepal. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Trade Facilitation:(Cost $42.00 M) Regional Road Connectivity Improvement:(Cost $659.00 M) Institutional Strengthening:(Cost $100.10 M) Contingency Emergency Response Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions This ISR captures the implementation status of the Strategic Road Connectivity and Trade Improvement Project (SRCTIP) based on findings of the seventh implementation support review conducted from January 8 – 18, 2024. The Project has made some progress in one of the road improvement works (Nagdhunga-Naubise-Mugling: NNM roads) since the award of three contracts in June 2022. However, implementation activities for the other major road works (Kamala-Dhalkebar-Pathlaiya: KDP roads) and trade related infrastructure works, are yet to commence even after three and half years of implementation. In particular, the long-awaited bidding process for Kamala-Bagmati (KB) road section (about US$220 million), and additional infrastructures works for Birgung and Biratnagar Integrated Check Posts (about US$ 25 million), have been delayed. The review team stressed the urgency to expedite implementation of the ongoing contracts and complete the delayed procurement process to start implementation. 1/31/2024 Page 1 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) Given the overall slow progress resulting in low disbursement of only 7 percent, the Project continues to remain in a “problem” status and the rating for Implementing Progress is retained as Moderately Unsatisfactory (MU). In addition, the review has downgraded the Procurement performance to MU due to substantial delays in starting bidding process for both Transport and Trade component activities. The rating for Project Management is kept as Moderately Satisfactory (MS), however, the review reminded the Secretary to consider assigning a dedicated team of DCID, DoR to ensure effective management of Project activities. The Project Development Objective is retained as MS and will be reviewed during the mid-term review planned in July 2024. The following critical activities were highlighted to the respective Ministries to accelerate the implementation progress: MoICS for Trade Component: (i) Nepal Intramodal Transport Development board (NITDB): this institution needs to be re-confirmed as implementing unit to avoid any risk of dropping of the project component: (ii) additional works at Birgunj and Biratnagar Integrated Check Posts (ICPs): expedite the finalization of bid documents and start bidding process; (iii) refurbishment of Laboratories for Food: finalize the refurbishment scope and cost estimate to go for procurement of works contracts. MoPIT for Transport Component: (i) Kamala-Bagmati (KB) road works (77 km): start the bidding process for the three works packages; (ii) KB Bridge construction: finalize the bid documents and start bidding under design and build (D&B) contracts; (iii) start preparation: establish Project office for implementation Resettlement Action Plan (RAP), shifting of utility poles and cutting of affected road side trees: (iv) NNM road work progress: expedite the work progress for three contracts with focus to start the pavement works; (v) accelerate implementation of the Safe Corridor Demonstration (SCD) activities in NNM: engineering, enforcement, and post-crash support activities (vi) Periodic road maintenance works: conduct close monitoring of ongoing contracts and take timely contractual actions for non-performing contracts. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Substantial Substantial Substantial Environment and Social High High High Stakeholders Substantial Substantial Substantial Other Substantial Moderate Moderate Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes 1. Efficiency in Select Transport Infrastructure IN01396274 ►Average vehicle operating costs for trucks (NNM road) (Text, Custom) 1/31/2024 Page 2 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) Baseline Actual (Previous) Actual (Current) End Target Value NPR 60.42/Km NPR 60.42/Km NPR 60.42/Km NPR 48.83/Km Date 16-Mar-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 The final assessment is due on completion of works. The current achieved data reported here is the latest Comments: available data for this parameter, that is, the baseline value. IN01396307 ►Average vehicle operating cost for trucks (KDP road) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value NPR 39.31/Km NPR 39.31/Km NPR 39.31/Km NPR 30.36/Km Date 16-Mar-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 The final assessment is due on completion of works. The current achieved data reported here is the latest Comments: available data for this parameter, that is, the baseline value. IN01396309 ►Average travel time for trucks (NNM road) (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.35 4.35 4.35 3.15 Date 27-Mar-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 The final assessment is due on completion of works. The current achieved data reported here is the latest Comments: available data for this parameter, that is, the baseline value. IN01396310 ►Average travel time for trucks (KDP road) (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 5.00 5.00 3.00 Date 27-Mar-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 The final assessment is due on completion of works. The current achieved data reported here is the latest Comments: available data for this parameter, that is, the baseline value. 2. Safety in Select Transport Infrastructure IN01396275 ►Annual fatalities (NNM road) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 73.48 fatalities/billion 73.48 fatalities/billion 73.48 fatalities/billion 51.4 fatalities/billion Value vehicle-Km vehicle-Km vehicle-Km vehicle-Km Date 16-Mar-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 The final assessment is due on completion of works. The current achieved data reported here is the latest Comments: available data for this parameter, that is, the baseline value. 1/31/2024 Page 3 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) IN01396308 ►Annual fatalities (KDP road) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 46.6 fatalities/billion 46.6 fatalities/billion 46.6 fatalities/billion 32.6 fatalities/billion Value vehicle-Km vehicle-Km vehicle-Km vehicle-Km Date 16-Mar-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 The final assessment is due on completion of works. The current achieved data reported here is the latest Comments: available data for this parameter, that is, the baseline value. 3. Efficiency in Cross-Border Trade IN01396272 ►Border crossing time at Birgunj ICP (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.10 0.80 0.90 1.00 Date 07-Feb-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 The border crossing time is calculated based on average time difference between gate entry and exit time at Birgunj ICP for import consignments except petroleum of data from May 1-31, 2023 based on 20,238 vehicles. The next assessments are due at the mid-term and on project completion. Comments: IN01396306 ►Time taken for Sanitary and Phyto-sanitary certification clearance for select agri-exports (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 30.00 30.00 30.00 15.00 Date 16-Mar-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 The baseline and the end-target value has been validated and confirmed based on the survey carried out on January 12- March 15, 2021. Comments: Frequency to measure the indicator is at the start, mid-term and end of the Project. 4. Capacity Strenthening of Road Network Management IN01396273 ►The percentage of roads within the Core Road Network that are in "good" condition (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 32.00 16.00 60.00 1/31/2024 Page 4 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) Date 16-Mar-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 Total works for 1,602 lane km awarded for periodic maintenance work of which, 1,063 lane km is completed. Actual “good” condition is based on DoR reports on SDI survey results of Jan 2024. Comments: Note: The earlier figure (32%) was reported as per the DOR survey 2022. Intermediate Results Indicators by Components 1. Trade Facilitation IN01396311 ►Sanitary and Phyto-Sanitary labs improved (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 5.00 8.00 Date 13-Apr-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 Lab refurbshment/ equipment supported for DoLS lab at Bhadrapur, Krishnanagar and Bhairahawa; and Comments: PQPMC Lab at Biratnagar and Birgunj. IN01396314 ►Number of parameters for which central labs are internationally accredited (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 101.00 105.00 286.00 176.00 Date 13-Apr-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 The current achieved data reported here is internationally accredited parameters of DFTQC, central lab Comments: (Source: DFTQC). IN01396317 ►Sanitary and Phyto-Sanitary training programs conducted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 6.00 Date 13-Apr-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 Phytosanitary Capacity Assessment (PCA) completed; follow to the assessment, trainings on Risk Comments: Management is conducted for DFTQC, DoLS and PQPMC for building risk profile. 2. Regional Road Connectivity Improvement IN01396312 ►Roads improved to 2-lane standard (NNM road) (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 95.00 1/31/2024 Page 5 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) Date 13-Apr-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 All three contracts awarded and contractors have started works. The indicator will be assessed after Comments: completion of works. IN01396315 ►Roads improved to 4-lane standard (KDP road) (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 77.00 Date 13-Apr-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 The Final Design Report and Draft ESIA report submitted. The indicator will be assessed after completion Comments: of works. IN01396318 ►Percentage of wards along the road where people, including females reported separately, are on average satisfied with safety measures taken into consideration during road design & construction (NNM) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 60.00 Date 13-Apr-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 This will be measured and reported at the end of the project upon completion of works. Comments: IN01396320 ►Percentage of wards along the road where people, including females reported separately, are on average satisfied with safety measures taken into consideration during road design & construction (KDP) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 60.00 Date 13-Apr-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 This will be measured and reported at the end of the project upon completion of works. Comments: IN01396322 ►Increase in the percentage of road users satisfied with improvement made to the road infrastructure (NNM road) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 42.41 42.41 0.00 20.00 Date 28-Feb-2023 07-Jul-2023 18-Jan-2024 15-Jul-2027 Final report on baseline survey for the NNM road was submitted in February 2023. The survey calculated a baseline percentage level of satisfaction of 42.41 percent. This survey will be conducted once more, at Comments: the end of the project, to calculate the endline percentage level of satisfaction IN01396324 ►Increase in the percentage of road users satisfied with improvement made to the road infrastructure (KDP road) (Percentage, Custom) 1/31/2024 Page 6 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) Baseline Actual (Previous) Actual (Current) End Target Value 41.89 41.89 0.00 20.00 Date 30-Jun-2023 07-Jul-2023 18-Jan-2024 15-Jul-2027 Final report on baseline survey for the KDP road was submitted by DoR on June 2023. Accordingly, the baseline value to assess percentage of road users satisfied with improvement made to the road infrastructure (NNM road) is now updated 41.89 percent. This survey will be conducted once Comments: more, at the end of the project, to calculate the endline percentage level of satisfaction 3. Institutional Strengthening IN01396313 ►Expert support to National Road Safety Council (NRSC) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 13-Apr-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 Project is supporting NRSC with (i) Road Safety Expert; (ii) Road Safety engineer and (iii) Project Comments: management consultant (RS-PMC). IN01396316 ►Safe Corridor Demonstration Program (SCDP) implemented (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 172.00 Date 13-Apr-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 The RS-PMC to SCDP is onboard and mobilized. The indicator will be updated starting FY25. The current achieved data reported here is the latest available data for this parameter, that is, the baseline Comments: value. IN01396319 ►Road Asset Management System developed and functional (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 13-Apr-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 One individual Road Assest Management consultant is onboard. Revised ToR under preperation for Road Assest Management System Consultant (RAMS) Comments: IN01396321 ►Vulnerability mapping embedded in the Road Asset Management System (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 1/31/2024 Page 7 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) Value No No No Yes Date 13-Apr-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 Final report on Vulnerability Assessment is submitted from the consultant. The mapping works are under Comments: preparation. IN01396323 ►Training infrastructure built or upgraded for DOR (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 13-Apr-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 Design and ESMF completed for training centre at Gajuri, however the activity is dropped from the project scope Comments: IN01396325 ►Training programs conducted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 6.00 6.00 24.00 Date 13-Apr-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 (i) Training to designated 10 GoN officials conducted in road safety audit at IIT-Roorkee; (ii) Road Safety Management to 12 officials through International Road Federation (IRF); (iii) training and accreditation for six DoR officials from International Road Assessment Programme (iRAP); (iv) trianing cum exposure visit Comments: on HAM Model to Karnataka; v) Training/Exposure visit to US; vi) RAMS and PMBC training on June 28- 29, 2023 for MoPIT, DoR, DoLI officials. IN01396326 ►Number of women trained for skilled employment opportunities in transport and allied sectors (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 500.00 Date 13-Apr-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 The training service provider is recently on board and is currently in field conducting initial consultations as part of the training needs assessment. Comments: IN01396327 ►Number of trained women facilitated for employment or livelihood through placement-counselling and support (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 13-Apr-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 Comments: The training service provider is recently on board and is currently in field conducting initial consultations as part of the training needs assessment. 1/31/2024 Page 8 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) IN01396328 ►Periodic Maintenance of roads within the Core Road Network (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0 Lane/Km 960 Lane/Km 1063 Lane/Km 3,400 Lane/Km Date 13-Apr-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 Total 31 works packages for 1,602 lane km awarded/mobilised and 1,063 lane km completed. Comments: IN01396329 ►Percentage of grievances received that are processed within the stipulated service standards (NNM & KDP roads) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 83.00 70.00 80.00 Date 13-Apr-2020 07-Jul-2023 18-Jan-2024 15-Jul-2027 In total, 287 grievances have been registered as of December 31, 2023, out of which 203 have been Comments: resolved, while 84 are being processed. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P170409 IDA-66730 Effective USD 300.00 300.00 0.00 31.57 261.02 11% P170409 IDA-66740 Effective USD 150.00 150.00 0.00 0.41 160.29 0.3% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P170409 IDA-66730 Effective 10-Jun-2020 17-Jul-2020 24-Jul-2020 15-Jul-2027 15-Jul-2027 P170409 IDA-66740 Effective 10-Jun-2020 17-Jul-2020 24-Jul-2020 15-Jul-2027 15-Jul-2027 Cumulative Disbursements 1/31/2024 Page 9 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) Restructuring History Level 2 Approved on 12-May-2023 Related Project(s) There are no related projects. 1/31/2024 Page 10 of 10