The World Bank Implementation Status & Results Report Nepal Urban Governance and Infrastructure Project (P163418) Nepal Urban Governance and Infrastructure Project (P163418) SOUTH ASIA | Nepal | Urban, Resilience and Land Global Practice | IBRD/IDA | Investment Project Financing | FY 2021 | Seq No: 6 | ARCHIVED on 18-Apr-2023 | ISR55507 | Implementing Agencies: Ministry of Finance, Ministry of Urban Development Key Dates Key Project Dates Bank Approval Date: 28-Sep-2020 Effectiveness Date: 01-Dec-2020 Planned Mid Term Review Date: 15-Jan-2024 Actual Mid-Term Review Date: Original Closing Date: 15-Jul-2025 Revised Closing Date: 15-Jul-2025 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to strengthen the institutional and fiscal capacities of participating municipalities for strategic municipal infrastructure and service delivery. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Urban Development Grants (UDG) for strategic municipal infrastructure and service delivery:(Cost $115.00 M) Institutional strengthening of the participating municipalities:(Cost $7.00 M) Support to municipalities for COVID-19 Recovery:(Cost $20.00 M) Contingent Emergency Response Project management and coordination:(Cost $8.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The participating municipalities have met the Grant Access Conditions for the Urban Development Grant for FY23/24. Civil works have started in Tilottama municipality, and are expected to begin in Pokhara, Birtamod, Urlabari and Damak municipalities between June and August, 2023. Overall, more than 1,500 small scale infrastructure works have been completed and have absorbed around US$10 million. A total of 955,482 employment days have been created for more than 27,000 beneficiaries, of which 49.6 percent are women. 4/18/2023 Page 1 of 8 The World Bank Implementation Status & Results Report Nepal Urban Governance and Infrastructure Project (P163418) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial High Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and High Substantial Substantial Sustainability Fiduciary High High High Environment and Social Substantial Substantial Substantial Stakeholders Moderate Moderate Moderate Other -- -- -- Overall High Substantial Substantial Results PDO Indicators by Objectives / Outcomes Strengthened Institutional and Fiscal Capacity of participating Municipalities IN01269344 ►Participating Municipalities receive annual Urban Development Grant (UDG) allocations in a timely manner after verification of Grant Access Conditions (GACs) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 28-Sep-2020 21-Sep-2022 31-Mar-2023 15-Jul-2025 Annual allocations to be provided in the GoN Budget for FY22-23. GAC verification completed in March Comments: 2022.. IN01269345 ►Average annual UDG utilization rate of participating municipalities for financing strategic municipal infrastructure projects (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8.00 11.23 80.00 4/18/2023 Page 2 of 8 The World Bank Implementation Status & Results Report Nepal Urban Governance and Infrastructure Project (P163418) Date 28-Sep-2020 26-Sep-2022 31-Mar-2023 15-Jul-2025 Utilization rate refers to the ratio of UDG executed for the identified subprojects (both expenses for DSC and works contracts) As of March 2023, utilization of UDG was limited to expenses related to the procurement and mobilization Comments: payments for the Design and Supervision Consultants and the procurement process for the works in the municipalities of Pokhara, Damak, Urlabari, Tilotama and Birtamod. The absorption is expected to further pick up in FY22-23 given the signed contracts for works and DSCs. IN01269412 ►Number of strategic municipal infrastructure subprojects planned and executed reflecting citizen and service delivery needs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 20.00 Date 28-Sep-2020 26-Sep-2022 31-Mar-2023 15-Jul-2025 No sub project completed yet. However, 2 projects are under implementation (Tilotama and Pokhara) and another 7 sub projects already designed and ready for implementation and all of them have been Comments: designed in line with citizen and service delivery needs. Additional 10 sub projects to be confirmed in coming 12 months. IN01269414 ►Person-days of temporary work provided under Labor Intensive Public Works (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 985,200.00 1,000,005.00 1,000,000.00 Date 28-Sep-2020 26-Sep-2022 31-Mar-2023 15-Jul-2025 Additional 20,000 beenficiaries from the completed sub projects for the period October 2022 to March Comments: 2023. Improved Strategic Infrastructure and Service Delivery IN01269411 ►People provided with improved urban living conditions (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 72,000.00 92,000.00 1,585,000.00 Date 28-Sep-2020 26-Sep-2022 31-Mar-2023 15-Jul-2025 The value reflects to total number of beneficiaries across 1,500 LIPW sub projects - assuming that the Comments: whole household benefits from the cash payment - so a total of about 92,000. IN01269413 People provided with improved urban living conditions - Female (RMS requirement) (Number, Corporate Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 38,000.00 48,000.00 806,000.00 Intermediate Results Indicators by Components 4/18/2023 Page 3 of 8 The World Bank Implementation Status & Results Report Nepal Urban Governance and Infrastructure Project (P163418) Urban Development Grants (UDGs) for Strategic Municipal Infrastructure and Service Delivery IN01269415 ►Number of municipalities compliant with GACs to access UDGs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 17.00 17.00 17.00 Date 28-Sep-2020 26-Sep-2022 31-Mar-2023 15-Jul-2025 GAC Assessment not yet completed - expected to be received on April 15 2023. Comments: IN01269419 ►Number of strategic and climate resilient infrastructure sub-projects identified and designed in line with project design (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 5.00 20.00 Date 28-Sep-2020 26-Sep-2022 31-Mar-2023 15-Jul-2025 Total number of sub projects remain 5, since Ramgram, Mechinagar, Dhankuta and others are not yet Comments: completed. IN01269422 ►Total length of safety assessed municipal roads rehabilitated under the project, in compliance with climate/disaster-resilient design standards (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 28-Sep-2020 26-Sep-2022 31-Mar-2023 15-Jul-2025 While civil works has started in Tilottama, the works is ongoing and is expected to be completed in Comments: September 24. LIPW small scale works not counted under this indicator. IN01269425 ►Amount of UDGs accessed by municipalities for strategic municipal infrastructure project (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 13,750,000.00 13,750,000.00 115,000,000.00 Date 28-Sep-2020 26-Sep-2022 31-Mar-2023 15-Jul-2025 UDG funds have already been allocated in the GoN budget FY22-23 to all 17 municipalities, including five municipali an advanced stage or completed, as well for 12 municipalities, allocating funds for the Design and Supervision Consu remains the same for this ISR, since the budget for FY23-24 has not yet been finalized for Government of Nepal as p Comments: However, out of the amount of US$ 13million in the budget for FY22-23, municipalities have only disbursed about 1.3 delays in procurement and preparation of outputs from the DSCs. It is expected that for FY23-24, the amount for UDG will be around US$25 million. 4/18/2023 Page 4 of 8 The World Bank Implementation Status & Results Report Nepal Urban Governance and Infrastructure Project (P163418) Institutional Strengthening of the Participating Municipalities IN01269416 ►Institutional strengthening plans developed, implemented and reported on, in line with the methodology (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 28-Sep-2020 26-Sep-2022 31-Mar-2023 15-Jul-2025 UDST not yet on board - after cancellation of bidding process. With the agreed plan, it is expected that alternative firm will be mobilized by August 2023 and the the first Comments: municipal institutional development plans will be ready by November 2023. IN01269420 ►Number of people participated in stakeholder consultations for subproject design and implementation (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,000.00 3,770.00 4,000.00 Date 28-Sep-2020 26-Sep-2022 31-Mar-2023 15-Jul-2025 Based on information in DPRs and ESIAs. Comments: IN01269423 ►Number of Women’s Empowerment Plans developed and funded in participating municipalities (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 28-Sep-2020 26-Sep-2022 31-Mar-2023 15-Jul-2025 The cancellation of UDST procurement process will further delay this activity. It is now postponed to sometime in 2024. A detailed timeline will be agreed with the UDST when on board. The Bank will support Comments: the PCO in drafting a concept note for the Women Empowerment Plan (WEP) by April 2023. IN01269426 ►Number of municipalities with strengthened financial management and procurement systems (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 5.00 17.00 Date 28-Sep-2020 26-Sep-2022 31-Mar-2023 15-Jul-2025 The support provided to municipalities has already resulted in improvements across all 29 municipalities (17 municipalities under UDG and 12 under LIPW). Improvements have already been observed in relation to timely reporting, creation of internal audit committees, internal control established, etc. -- as highlighted Comments: in the FM section of this ISR. Based on the information available, a total of at leats 5 municipalities have seen improvements in FM since project inception. Further updates on the improvements on FM and procurement systems will be discussed at the Mid Term Review. 4/18/2023 Page 5 of 8 The World Bank Implementation Status & Results Report Nepal Urban Governance and Infrastructure Project (P163418) Project Management and Coordination IN01269417 ►Dedicated team in MoUD established and fully functional for project implementation and management (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 28-Sep-2020 26-Sep-2022 31-Mar-2023 15-Jul-2025 The PCO team has been established and is fully operational. The Project Management Support Team Comments: (consultant) has been recruited. IN01269421 ►Dedicated implementation teams in municipalities established and fully functional for project implementation and management (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 28-Sep-2020 26-Sep-2022 31-Mar-2023 15-Jul-2025 Dedicated implementation support team in place in all municipalities since April 2021 and continues to be Comments: operational, also after local elections in May 2022 and national elections in November 2022. IN01269424 ►Proportion of participating municipalities with grievance redressal and active anti-harassment cells (%) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 23.50 100.00 Date 28-Sep-2020 26-Sep-2022 31-Mar-2023 15-Jul-2025 Grievance Redressal Mechanisms (GRM) have been set up for the sub-projects in Birtamod, Urlabari, Damak and Tilottama municipalities.The baseline confirms that almost all municipalities have a type of Comments: GRM in place. Contingent Emergency Response IN01269418 ►Contingent Emergency Response Operations Manual developed and adopted (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 01-Aug-2020 26-Sep-2022 31-Mar-2023 31-Dec-2026 This Operations Manual describes the procedures to activate the funds under Component 3. The Manual Comments: was approved by the Bank in November 2020. Performance-Based Conditions 4/18/2023 Page 6 of 8 The World Bank Implementation Status & Results Report Nepal Urban Governance and Infrastructure Project (P163418) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P163418 IDA-67780 Effective USD 150.00 150.00 0.00 10.07 130.99 7.1% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P163418 IDA-67780 Effective 28-Sep-2020 18-Nov-2020 01-Dec-2020 15-Jul-2025 15-Jul-2025 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) 4/18/2023 Page 7 of 8 The World Bank Implementation Status & Results Report Nepal Urban Governance and Infrastructure Project (P163418) There are no related projects. 4/18/2023 Page 8 of 8