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: 8 | ARCHIVED on 24-Jul-2023 | ISR57254 | 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: 08-Jan-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 implementation support review conducted from June 26–July 07, 2023. SRCTIP has made notable progress following the award of major works contracts under the Transport component in June 2022. However, considering the Project has reached almost halfway of implementation period, the pace of progress is still slow with dismal disbursement ratio hence, retaining the Project to “problem status”. To accelerate progress, the review team requested the Project to urgently expedite implementation of the awarded works contracts under Nagdhunga-Naubise-Mugling (NNM) road, start procurement of works for Kamala-Bagmati road section, and expedite design of the required infrastructures in Birgunj and Biratnagar Integrated Check Posts. In view of substantial delays in the procurement activities, slow implementation and low disbursement, the current rating for the Project Implementation Progress remains Moderately Unsatisfactory. In addition, the Project Management rating is changed to Moderately 7/24/2023 Page 1 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) Satisfactory, considering the current workloads of the DCID project management which is constraining dedicated focus to the SRCTIP management and affecting overall implementation progress, while supporting various donor funded projects. On the other hand, considering a good progress noted on the agreed actions from the previous review including resolving of the counterpart funding issues, the performance of the Safeguards and Financial Management have been upgraded to Moderately Satisfactory. The Project Development Objective is retained as Moderately Satisfactory. The following critical activities were highlighted to the respective Ministries to accelerate the implementation progress: Ministry of Physical Infrastructure and Transport (MoPIT) for Transport component: (i) Dedicated Unit at DCID, DoR: Review the current workload of the Development Coordination Implementation Division (DCID) and consider assigning a dedicated management team or unit to support implementation of the World Bank supported transport sector projects in view of large transport portfolio (close to US$ 850 million) in terms of commitments and strategic importance (ii) NNM road works: expedite implementation progress including implementation of Resettlement Action Plan, removal of utilities and trees (iii) Periodic Maintenance works: ensure allocation of adequate budget in relevant budget heads for fiscal year 2023/24 through Roads Board Nepal (iv) Transaction Advisory Services: expedite appointment of consultant to prepare piloting HybridAnnuity Model (HAM) in Bagmati-Pathlaiya section (53 km) (v) Kamala-Dhalkebar-Pathlaiya road works: expedite approval of the final design, cost estimate, Environmental Impact Assessment (EIA) to start procurement of works for theKamala- Bagmati (77 km) section. Ministry of Industry, Commerce and Supplies (MoICS) for Trade component: (i) Gantry Crane Installation at Birgunj Railway Inland Container Depot: expedite decision on the final design and cost estimate to move forward with procurement activities (ii) Trade facilitation infrastructure at Birgunj and Biratnagar Integrated Check Posts: expedite the design process for timely completion to start procurement of works related to infrastructure improvement (iii) Refurbishment of Laboratories for Food: expedite hiring of consultants for design and cost estimate to start procurement of works. Project Restructuring. The Project competed the first restructuring in May 2023 based on a formal request received from the Ministry of Finance on April 17, 2023. The restructuring mainly (i) reduced the scope of road upgradation in KDP road section from 130 km to approx. 77 km and preparation of piloting HAM contracting for Bagmati-Pathalaiya section (approx. 53 km), which are within KDP road; and (ii) change in the withdrawal table of the Financing Agreement to accommodate decrease of the Government counterpart funding from 30 percent to 15 percent. After the restructuring, the IDA fund remains as it is whereas the total Project costs came down to US$ 533.5 million. 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 7/24/2023 Page 2 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) 1. Efficiency in Select Transport Infrastructure IN01323000 ►Average vehicle operating costs for trucks (NNM road) (Text, Custom) 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 20-Dec-2022 07-Jul-2023 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. IN01323028 ►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 07-Jul-2023 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. IN01323030 ►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 07-Jul-2023 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. IN01323031 ►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 07-Jul-2023 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 IN01323026 ►Annual fatalities (NNM road) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 7/24/2023 Page 3 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) 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 07-Jul-2023 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. IN01323029 ►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 07-Jul-2023 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 IN01322998 ►Border crossing time at Birgunj ICP (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.10 1.20 0.80 1.00 Date 07-Feb-2020 20-Dec-2022 07-Jul-2023 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: IN01323027 ►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 07-Jul-2023 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 IN01322999 ►The percentage of roads within the Core Road Network that are in "good" condition (Percentage, Custom) 7/24/2023 Page 4 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 5.00 32.00 32.00 60.00 Date 16-Mar-2020 20-Dec-2022 07-Jul-2023 15-Jul-2027 Total works for 1,475 lane km awarded for periodic mintenance work of which, 960 lane km is completed. Comments: Actual &ldq uo;good” condition is based on DoR reports on SDI survey results of Jan 2022. Intermediate Results Indicators by Components 1. Trade Facilitation IN01323032 ►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 07-Jul-2023 15-Jul-2027 Lab refurbshment/ equipment supported for DoLS lab at Bhadrapur, Krishna nagar and Bhairahawa; and Comments: PQPMC Lab at Biratnagar and Birgunj. IN01323035 ►Number of parameters for which central labs are internationally accredited (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 101.00 105.00 105.00 176.00 Date 13-Apr-2020 20-Dec-2022 07-Jul-2023 15-Jul-2027 The current achieved data reported here is internationally accredited parameters of DFTQC, central lab Comments: (Source: DFTQC). IN01323038 ►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 07-Jul-2023 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 IN01323033 ►Roads improved to 2-lane standard (NNM road) (Kilometers, Custom) 7/24/2023 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 07-Jul-2023 15-Jul-2027 All three contracts awarded and contractors have started works. The indicator will be assessed after Comments: completion of works. IN01323036 ►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 07-Jul-2023 15-Jul-2027 The Final Design Report and Draft ESIA report submitted. The indicator will be assessed after completion Comments: of works. IN01323039 ►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 07-Jul-2023 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. IN01323041 ►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 07-Jul-2023 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. IN01323043 ►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 42.41 20.00 Date 28-Feb-2023 20-Dec-2022 07-Jul-2023 15-Jul-2027 7/24/2023 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. Accordingly, the baseline value to assess percentage of road users satisfied with improvement made to the road infrastructure (NNM road) is now updated to 42.41 percent. This survey will be conducted once Comments: more, at the end of the project, to calculate the endline percentage level of satisfaction. IN01323045 ►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 41.89 0.00 41.89 20.00 Date 30-Jun-2023 20-Dec-2022 07-Jul-2023 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 IN01323034 ►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 07-Jul-2023 15-Jul-2027 Project is supporting NRSC with (i) Road Safety Expert; (ii) Road Safety engineer and (iii) Project Comments: management consultant (RS-PMC). IN01323037 ►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 07-Jul-2023 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. IN01323040 ►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 07-Jul-2023 15-Jul-2027 7/24/2023 Page 7 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) One individual Road Assest Management consultant is onboard. Proposals under evaluation for Road Assest Management System Consultant (RAMS-PMC). Comments: IN01323042 ►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 07-Jul-2023 15-Jul-2027 The consultant selected for vulnerability mapping under QII has submitted final draft report. Following, the data will be integrated into RAMS. Comments: Next assessments are due at the mid-term and on project completion. The current achieved data reported here is the latest available data for this parameter, that is, the baseline value. IN01323044 ►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 07-Jul-2023 15-Jul-2027 Design and ESMF completed for training centre at Gajuri, however it is halted. Discussion to develop the complex at Patan for both Mechanical and Civil is under discussion. Comments: IN01323046 ►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 07-Jul-2023 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. IN01323047 ►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 07-Jul-2023 15-Jul-2027 The training service provider is currently under procurement process and will be onboard by August 15, 2023. The indicator value will be updated once the activity gets started. Comments: 7/24/2023 Page 8 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) IN01323048 ►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 20-Dec-2022 07-Jul-2023 15-Jul-2027 The Training and Employment Service Provider (TESP) is currently under procurement process. The Comments: indicator value will be updated once the initial activity (trainings to the women) is completed. IN01323049 ►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 960 Lane/Km 3,400 Lane/Km Date 13-Apr-2020 20-Dec-2022 07-Jul-2023 15-Jul-2027 Total 24 works packages for 1,475 lane km awarded/mobilised and 960 lane km completed. Comments: IN01323050 ►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 83.00 80.00 Date 13-Apr-2020 20-Dec-2022 07-Jul-2023 15-Jul-2027 200 (which includes 75 historical grievances) out of 241 grievances are resolved. Comments: 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 22.77 270.54 7.8% 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 7/24/2023 Page 9 of 10 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) P170409 IDA-66740 Effective 10-Jun-2020 17-Jul-2020 24-Jul-2020 15-Jul-2027 15-Jul-2027 Cumulative Disbursements Restructuring History Level 2 Approved on 12-May-2023 Related Project(s) There are no related projects. 7/24/2023 Page 10 of 10