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: 10 | ARCHIVED on 29-May-2024 | ISR60442 | 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 $35.00 M) Regional Road Connectivity Improvement:(Cost $183.80 M) Institutional Strengthening:(Cost $77.40 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 Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions This is an interim ISR being submitted to update the management of the proactive measures and critical milestone that Nepal: SRCTIP (P170409) has achieved and accordingly, request for consideration to upgrade the rating of Implementation Progress (IP). Further, this ISR is not based on a full-fledged implementation review. It mainly reflects the latest progress status of the major procurement activities for three works packages under Kamala-Bagmati (KB) road works (77km). Considering the successful bidding of these three packages, the IP rating is proposed to upgrade from Moderately Unsatisfactory (MU) to Moderately Satisfactory (MS). The other performance ratings and results frameworks remains intact as per the seventh Implementation review held in January 2024. The team plans to conduct a mid-term review (MTR) in July 2024, and file a full-fledged ISR based on the MTR findings. Key Achievement. The team is pleased to report that SRCTIP has completed critical actions in support to upgrade the IP rating from MU to MS. These are: (i) publication of the long-awaited bid notice for Kamala-Bagmati (KB) 77 km road section (about US$220 million) on March 24, 2024; 5/29/2024 Page 1 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) and (ii) proactive cancellation of the unutilized US$150 million Scale-up facility (SUF) fund through restructuring in April 2024. Furthermore, Bids for the three (3) works packages for KB road has been received by the project on May 10, 2024, and is currently under evaluation. Bid opening record shows that all three works packages received 10 to 11 bids each and are noted to be competitive. Considering the need for evaluation and necessary clearances from the Bank, the contract is expected to be awarded by end-June 2024. Following the award of contracts, advance payment is expected to be released in early first Quarter of FY 2025. Subsequently, the Project is expected to accelerate the implementation progress and meet the disbursement targets. With this noted progress in procurement of major works and completion of the proactive measure (i.e., cancellation of USD 150 million), the IP is proposed to be upgraded to MS and subsequently, the Project to be lifted from the "Problem" status. To date, SRCTIP has disbursed US$38.59 million (13.24%) of the total allocated IDA US$300 million. Restructuring and Additional Financing. Based on the request of the Government of Nepal (GoN) dated February 15, 2024, the Project has cancelled the US$150 million of non-concessional Credit (IDA-66740-NP) through the restructuring completed in April 2024. This allocation was committed to support upgradation of 77 km of Kamala-Bagmati (KB) Road section. However, due to payment of commitment charges resulting from delays in procurement activities as well as high-cost of this Credit, the GoN requested to discontinue this Credit. In addition, in the same letter, the GoN has requested IDA support of US$150 million for KB road works and another US$75 million for the remaining 53 km of Kamala-Dhalkebar- Pathlaiya road section. The Bagmati-Pathalaiya section is currently under preparation for piloting of the Hybrid Annuity Model (HAM) contracting approach. Based on this request, the Project is anticipated to require total US$225 million additional financing in the coming FY. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial High 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 Substantial Moderate Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes 1. Efficiency in Select Transport Infrastructure IN01429598 ►Average vehicle operating costs for trucks (NNM road) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 5/29/2024 Page 2 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) Value NPR 60.42/Km NPR 60.42/Km NPR 60.42/Km NPR 48.83/Km Date 16-Mar-2020 20-Dec-2022 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. IN01429607 ►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 20-Dec-2022 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. IN01429610 ►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 20-Dec-2022 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. IN01429613 ►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 20-Dec-2022 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 IN01429601 ►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 20-Dec-2022 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. 5/29/2024 Page 3 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) IN01429606 ►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 20-Dec-2022 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 IN01429596 ►Border crossing time at Birgunj ICP (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.10 1.20 0.90 1.00 Date 07-Feb-2020 20-Dec-2022 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: IN01429608 ►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 20-Dec-2022 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 IN01429597 ►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 Date 16-Mar-2020 20-Dec-2022 18-Jan-2024 15-Jul-2027 5/29/2024 Page 4 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) 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. Note: The Comments: earlier figure (32%) was reported as per the DOR survey 2022. Overall Comments PDO The reporting of the RF is based on the implementation review of January 2024 with no further change in this interim ISR. Intermediate Results Indicators by Components 1. Trade Facilitation IN01429602 ►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 20-Dec-2022 18-Jan-2024 15-Jul-2027 Lab refurbishment/ equipment supported for DoLS lab at Bhadrapur, Krishnanagar and Bhairahawa; and Comments: PQPMC Lab at Biratnagar and Birgunj. IN01429605 ►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 20-Dec-2022 18-Jan-2024 15-Jul-2027 The current achieved data reported here is internationally accredited parameters of DFTQC, central lab Comments: (Source: DFTQC). IN01429609 ►Sanitary and Phyto-Sanitary training programs conducted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 3.00 6.00 Date 13-Apr-2020 20-Dec-2022 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 IN01429600 ►Roads improved to 2-lane standard (NNM road) (Kilometers, Custom) 5/29/2024 Page 5 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 0.00 0.00 0.00 95.00 Date 13-Apr-2020 20-Dec-2022 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. IN01429604 ►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 20-Dec-2022 20-Dec-2022 15-Jul-2027 The draft Design report submitted; ESIA Consultants are onboard and working. The current achieved data reported here is the latest available data for this parameter, that is, the baseline Comments: value IN01429611 ►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 20-Dec-2022 18-Jan-2024 15-Jul-2027 This will be measured and reported at the end of the project upon completion of works. Comments: IN01429614 ►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 20-Dec-2022 18-Jan-2024 15-Jul-2027 This indicator will be assessed upon completion of works using community score card at the end of the Project. Accordingly, the information and update of this indicator will be provided at the end of the Project Comments: period. IN01429616 ►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 0.00 0.00 20.00 Date 13-Apr-2020 20-Dec-2022 18-Jan-2024 15-Jul-2027 5/29/2024 Page 6 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) 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. IN01429618 ►Increase in the percentage of road users satisfied with improvement made to the road infrastructure (KDP road) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 41.89 20.00 Date 13-Apr-2020 20-Dec-2022 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 Comments: infrastructure (NNM road) is now updated 41.89 percent. This survey will be conducted once more, at the end of the project, to calculate the endline percentage level of satisfaction 3. Institutional Strengthening IN01429599 ►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 20-Dec-2022 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). IN01429603 ►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 20-Dec-2022 18-Jan-2024 15-Jul-2027 The RS-PMC to SCDP is onboard and mobilized. The indicator will be updated starting FY25. The current Comments: achieved data reported here is the latest available data for this parameter, that is, the baseline value. IN01429612 ►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 20-Dec-2022 18-Jan-2024 15-Jul-2027 One individual Road Assest Management consultant is onboard. Revised ToR under preperation for Road Comments: Assest Management System Consultant (RAMS) IN01429615 5/29/2024 Page 7 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) ►Vulnerability mapping embedded in the Road Asset Management System (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 13-Apr-2020 20-Dec-2022 18-Jan-2024 15-Jul-2027 Final report on Vulnerability Assessment is submitted from the consultant. The mapping works are under Comments: preparation. IN01429617 ►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 20-Dec-2022 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: IN01429619 ►Training programs conducted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 6.00 24.00 Date 13-Apr-2020 20-Dec-2022 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. IN01429620 ►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 20-Dec-2022 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: IN01429621 ►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 5/29/2024 Page 8 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) Date 13-Apr-2020 20-Dec-2022 18-Jan-2024 15-Jul-2027 The training service provider is recently on board and is currently in field conducting initial consultations as Comments: part of the training needs assessment. IN01429622 ►Periodic Maintenance of roads within the Core Road Network (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0 Lane/Km 570 Lane/Km 1063 Lane/Km 3,400 Lane/Km Date 13-Apr-2020 20-Dec-2022 18-Jan-2024 15-Jul-2027 Total 31 works packages for 1,602 lane km awarded/mobilised and 1,063 lane km completed. Comments: IN01429623 ►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 0.00 70.00 80.00 Date 13-Apr-2020 20-Dec-2022 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 38.18 252.94 13% P170409 IDA-66740 Effective USD 150.00 1.64 148.36 0.41 0.00 100% 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 5/29/2024 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 ,Level 2 Approved on 12-Apr-2024 Related Project(s) There are no related projects. 5/29/2024 Page 10 of 10