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 | IBRD/IDA | Investment Project Financing (IPF) | FY 2020 | Seq No: 12 | Archived on 14-Mar-2025 | ISR03156 Implementing Agencies: Ministry of Industry, Commerce and Supplies, Ministry of Physical Infrastructure and Transport 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 10-Jun-2020) 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 Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Trade Facilitation:(Cost 35,000,000.00) Regional Road Connectivity Improvement:(Cost 183,800,000.00) Institutional Strengthening:(Cost 77,400,000.00) Contingency Emergency Response:(Cost 0.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial 4. KEY ISSUES & STATUS Mar 14, 2025 Page 1 of 13 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) 4.1 Implementation Status and Key Decisions This ISR summarizes the key findings from the ninth implementation review of Nepal: Strategic Road Connectivity and Trade Improvement Project (SRCTIP: P170409), conducted from February 12 to 24, 2025. Key progress: The Project has made notable progress in implementing some of the key activities, particularly in major works contracts under the Road component. This includes the Nagdhunga-Naubise-Mugling (NNM 95 km, US$91.8 million IDA) road section with the following physical progress: (i) Nagdhunga-Naubise (ICB-1, 12.26 km: 65%); (ii) Naubise-Malekhu (ICB-2, 43.54 km: 29%); and (iii) Malekhu-Mugling (ICB-3, 38.861 km: 21%). For Kamala-Bagmati (KB 77 km, US$138 million IDA) road section, all three contracts have been awarded, with contractors mobilized on-site and commencement of works since January 2025. For Kamala and Bagmati bridges (estimated US$40 million IDA) works, the bidding process is anticipated to commence shortly following the clearance of the bidding document by the Bank team. For Bagmati-Pathalaiya (BP, 53 km) road section, the government has opted for the item rate contract approach and requested an Additional Financing (AF) support to the Bank for upgradation of the entire Kamala-Dhalkebar-Pathlaiya (KDP 130 km) stretch to four lanes, as considered in the original Project scope. In the Trade component, two bid notices out of the four major infrastructure work packages for Biratnagar and Birgunj (estimated US$20 million) border infrastructure have been published, and the remaining two is expected to be out by end-March 2025. Under the Institutional Strengthening component, the major activity involving periodic maintenance of the Core Road Network is progressing well. At the start of the fifth year, 34 contracts have been awarded (1,912 lane-km) with completion of 1,514 lane-km out of the revised 2,400 lane-km works targeted under the Project. Based on the overall progress of major activities under the road components and implementation of some critical actions under the trade-related infrastructure, the ratings for implementation progress and the likelihood of achieving the Development Objective (PDO) are retained as Moderately Satisfactory. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 011 - 10 Sep Proposed Rating 10 Jun 2020 2024 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 Mar 14, 2025 Page 2 of 13 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) Fiduciary Substantial Substantial Substantial Environment and Social High High High Stakeholders Substantial Substantial Substantial Overall Substantial Substantial Substantial Mar 14, 2025 Page 3 of 13 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes 1. Efficiency in Select Transport Infrastructure Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Average vehicle operating NPR 60.42/Km Mar/2020 NPR 60.42/Km 05-Aug-2024 NPR 60.42/Km 17-Feb-2025 NPR 48.83/Km Jul/2027 costs for trucks (NNM road) Comments on The final assessment is due up on completion of works. The current achieved data reported (Text) achieving targets here is the latest available data for this parameter, that is, the baseline value. Average vehicle operating NPR 39.31/Km Mar/2020 NPR 39.31/Km 05-Aug-2024 NPR 39.31/Km 17-Feb-2025 NPR 30.36/Km Jul/2027 cost for trucks (KDP road) Comments on The final assessment is due up on completion of works. The current achieved data reported (Text) achieving targets here is the latest available data for this parameter, that is, the baseline value. 4.35 Mar/2020 4.35 05-Aug-2024 4.35 17-Feb-2025 3.15 Jul/2027 Average travel time for Comments on The final assessment is due up on completion of works. The current achieved data reported trucks (NNM road) (Hours) achieving targets here is the latest available data for this parameter, that is, the baseline value. 5.00 Mar/2020 5.00 05-Aug-2024 5.00 17-Feb-2025 3.00 Jul/2027 Average travel time for Comments on The final assessment is due on completion of works. The current achieved data reported trucks (KDP road) (Hours) achieving targets here is the latest available data for this parameter, that is, the baseline value. 2. Safety in Select Transport Infrastructure Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 73.48 Mar/2020 73.48 05-Aug-2024 73.48 17-Feb-2025 51.4 Jul/2027 Annual fatalities (NNM road) fatalities/billion fatalities/billion fatalities/billion fatalities/billion (Text) vehicle-Km vehicle-Km vehicle-Km vehicle-Km Mar 14, 2025 Page 4 of 13 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) Comments on The final assessment is due up on completion of works. The current achieved data reported achieving targets here is the latest available data for this parameter, that is, the baseline value. 46.6 Mar/2020 46.6 05-Aug-2024 46.6 17-Feb-2025 32.6 Jul/2027 fatalities/billion fatalities/billion fatalities/billion fatalities/billion Annual fatalities (KDP road) vehicle-Km vehicle-Km vehicle-Km vehicle-Km (Text) Comments on The final assessment is due upon completion of works. The current achieved data reported achieving targets here is the latest available data for this parameter, that is, the baseline value. 3. Efficiency in Cross-Border Trade Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 1.10 Feb/2020 0.90 05-Aug-2024 2 17-Feb-2025 1.00 Jul/2027 Comments on The border crossing time is calculated based on average time difference between gate entry achieving targets and exit time at Birgunj ICP for import consignments except petroleum of data from January 1 to 31, 2025 based on 12,016 vehicles. Border crossing time at **Note: The current time has increased than previous. This is due to error in the calculation Birgunj ICP (Days) of base line data. The baseline only considered time taken for custom clearance missing to include time taken to exit the gate. Hence, to correct this, the current calculation includes entire timeframe from custom clearance to loading/ unloading and exit from the gate. Team will try to get custom clearance data from ASSYCUDA and correct the base line data in the upcoming ISR. 30.00 Mar/2020 1.59 05-Aug-2024 1.59 17-Feb-2025 15.00 Jul/2027 Time taken for Sanitary and Comments on The baseline and the end-target value has been validated and confirmed based on the survey Phyto-sanitary certification achieving targets carried out on January 12- March 15, 2021. clearance for select agri- exports (Days) The current achievement is updated based on difference between LPCO request and approval date of 54,024 data from NNSW of DFTQC, DOLS and PQPMC. Mar 14, 2025 Page 5 of 13 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) Frequency to measure the indicator is at the start, mid-term and end of the Project. 4. Capacity Strenthening of Road Network Management Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 5.00 Mar/2020 91.00 05-Aug-2024 91.00 17-Feb-2025 60.00 Jul/2027 Comments on MoPIT revised CRN length from 3,340 km to 5,815 km. achieving targets The percentage of roads It is agreed that the target and base line will follow the DoR’s policy to keep 95% of CRN in within the Core Road Good to Fair condition. Accordingly, base line is calculated and revised from 5% in Good Network that are in "good" condition to 62% and target revised to 95% Good to Fair condition. The condition survey at condition (Percentage) the end of 3rd and 4th year showed 86% and 91%, respectively. New SDI survey is underway and the data on roads in Good and Fair condition is expected by end of March 2025. **Note: The revised baseline and end targets will be reflected in the system after next restructuring. 6.2 Intermediate Results Indicators by Components Trade Facilitation Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Apr/2020 11.00 05-Aug-2024 11.00 17-Feb-2025 8.00 Jul/2027 Sanitary and Phyto-Sanitary Comments on Lab refurbshment supported for DoLS lab at Bhadrapur, Krishnanagar and Bhairahawa; Lab labs improved (Number) achieving targets equipment for DFTQC lab at Kathmandu, Pokhara, Birtanagar, Krishna Nanagr, Mahendra nagar, Nepalgunj, and Lab equipment for PQPMC Lab at Biratnagar and Birgunj. 101.00 Apr/2020 286.00 05-Aug-2024 286.00 17-Feb-2025 176.00 Jul/2027 Mar 14, 2025 Page 6 of 13 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) Number of parameters for Comments on The current achieved data reported here is internationally accredited parameters of DFTQC, which central labs are achieving targets central lab. internationally accredited (Source: DFTQC). (Number) 0.00 Apr/2020 5.00 05-Aug-2024 5.00 17-Feb-2025 6.00 Jul/2027 Sanitary and Phyto-Sanitary Comments on Phytosanitary Capacity Assessment (PCA) completed; follow to the assessment, trainings on training programs conducted achieving targets Risk Management is conducted for DFTQC, DoLS and PQPMC for building risk profile. (Number) Additionally, DFTQC conducted training on laboratory accreditation and microbiology and instrumental analysis. Regional Road Connectivity Improvement Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0 Apr/2020 0 05-Aug-2024 0 17-Feb-2025 5,000,000 Jul/2027 People benefiting from Comments on The results will be assessed at the end of the Project. improved access to achieving targets sustainable transport The methodology has been revised for calculating the number of beneficiaries which is infrastructure and services reflected in in the AF. However, the AF takes additional scope of works hence, the end (Number of people) CRI targets will be updated only after the approval of the AF. The new number will be 1,635,725 people. People benefiting from 0 Apr/2020 0 05-Aug-2024 0 17-Feb-2025 327,145 Jan/2029 improved access to Comments on The results will be assessed at the end of the Project. sustainable transport achieving targets infrastructure and **Note: The methodology for calculating the number of youth is carried out during the services – Youth preparation of the AF. (Number of people) CRI 0 Apr/2020 0 05-Aug-2024 0 17-Feb-2025 834,219 Jan/2029 Mar 14, 2025 Page 7 of 13 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) People benefiting from Comments on The results will be assessed at the end of the Project. improved access to achieving targets sustainable transport **Note: The methodology for calculating the number of female beneficiary is carried out infrastructure and during the preparation of the AF. services – Female (Number of people) CRI 0 Apr/2020 0 05-Aug-2024 0 17-Feb-2025 5,000,000 Jul/2027 Comments on The results will be assessed at the end of the Project. People with enhanced achieving targets resilience to climate risks The methodology has been revised for calculating the number of beneficiaries which is (Number of people) CRI reflected in in the AF. However, the AF takes additional scope of works hence, the end targets will be updated only after the approval of the AF. The new number will be 1,635,725 people. 0 Apr/2020 0 05-Aug-2024 0 17-Feb-2025 327,145 Jan/2029 People with enhanced Comments on The results will be assessed at the end of the Project. resilience to climate achieving targets risks – Youth (Number **Note: The methodology for calculating the number of youth is carried out during the of people) CRI preparation of the AF. 0 Apr/2020 0 05-Aug-2024 0 17-Feb-2025 834,219 Jan/2029 People with enhanced Comments on The results will be assessed at the end of the Project. resilience to climate achieving targets risks – Female (Number **Note: The methodology for calculating the number of youth is carried out during the of people) CRI preparation of the AF. Roads improved to 2-lane 0.00 Apr/2020 0.00 18-Jan-2024 0.00 17-Feb-2025 95.00 Jul/2027 standard (NNM road) Comments on All three contracts awarded and contractors have started works. The indicator will be (Kilometers) achieving targets assessed after completion of works. 0.00 Apr/2020 0.00 20-Dec-2022 0.00 17-Feb-2025 77.00 Jul/2027 Mar 14, 2025 Page 8 of 13 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) Roads improved to 4-lane Comments on Contracts for 77 km is awarded and has started works rom January 2025. standard (KDP road) achieving targets (Kilometers) The indicator will be assessed after completion of works Percentage of wards along 0.00 Apr/2020 0.00 18-Jan-2024 0.00 17-Feb-2025 60.00 Jul/2027 the road where people, Comments on This will be measured and reported at the end of the project upon completion of works. including females reported achieving targets separately, are on average satisfied with safety measures taken into consideration during road design & construction (NNM) (Percentage) Percentage of wards along 0.00 Apr/2020 0.00 18-Jan-2024 0.00 17-Feb-2025 60.00 Jul/2027 the road where people, Comments on This indicator will be assessed upon completion of works using community score card at the including females reported achieving targets end of the Project. Accordingly, the information and update of this indicator will be provided separately, are on average at the end of the Project period. satisfied with safety measures taken into consideration during road design & construction (KDP) (Percentage) Increase in the percentage of 42.41 Apr/2020 0.00 18-Jan-2024 0.00 17-Feb-2025 20.00 Jul/2027 road users satisfied with Comments on The survey calculated a baseline percentage level of satisfaction of 42.41 percent. This improvement made to the achieving targets survey will be conducted once more, at the end of the project, to calculate the endline road infrastructure (NNM percentage level of satisfaction. road) (Percentage) Increase in the percentage of 0.00 Apr/2020 41.89 18-Jan-2024 41.89 17-Feb-2025 20.00 Jul/2027 road users satisfied with Comments on The baseline value to assess percentage of road users satisfied with improvement made to improvement made to the achieving targets the road infrastructure (NNM road) is updated to 41.89 percent. This survey will be road infrastructure (KDP conducted once more, at the end of the project, to calculate the endline percentage level of road) (Percentage) satisfaction. Mar 14, 2025 Page 9 of 13 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) Institutional Strengthening Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Expert support to National No Apr/2020 Yes 05-Aug-2024 Yes 17-Feb-2025 Yes Jul/2027 Road Safety Council (NRSC) Comments on Project is supporting NRSC with (i) Road Safety Expert; (ii) Road Safety engineer and (iii) (Yes/No) achieving targets Project management consultant (RS-PMC). 0.00 Apr/2020 0.00 05-Aug-2024 0.00 17-Feb-2025 172.00 Jul/2027 Safe Corridor Demonstration Comments on As per 1st restructuring the road length for upgradation and SCDP is reduced to 172 km Program (SCDP) achieving targets (95+77 km). implemented (Kilometers) The RS-PMC has identified the requirements for the NNM and KDP roads. DCID is currently working on the procurement packaging for the identified measures for the NNM road. No Apr/2020 No 05-Aug-2024 No 17-Feb-2025 Yes Jul/2027 Road Asset Management System developed and Comments on One individual Road Assest Management consultant is onboard. The EOI for a service functional (Yes/No) achieving targets provider to develop and implement the Road Asset Management System (RAMS) has been evaluated, and the issuance of the RFP is in progress. Vulnerability mapping No Apr/2020 No 05-Aug-2024 No 17-Feb-2025 Yes Jul/2027 embedded in the Road Asset Comments on Final report on Vulnerability Assessment is prepared however, waiting the service provider Management System achieving targets RAMS to be engaged. (Yes/No) 0.00 Apr/2020 0.00 05-Aug-2024 0.00 17-Feb-2025 1.00 Jul/2027 Comments on Training centre at Gajuri has been dropped from the project scope due to question of Training infrastructure built achieving targets sustainability. or upgraded for DOR (Number) DoR proposed to develop the Mechanical Training Centre at Lalitpur as their primary central training centre. A master plan to develop the overall complex in process. 0.00 Apr/2020 16.00 05-Aug-2024 19.00 17-Feb-2025 24.00 Jul/2027 Mar 14, 2025 Page 10 of 13 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) Comments on Training to designated 10 GoN officials conducted in road safety audit at IIT-Roorkee; (ii) achieving targets Road Safety Management to 12 officials through International Road Federation (IRF); (iii) training and accreditation for six DoR officials from International Road Assessment Training programs conducted Programme (iRAP); (iv) trianing cum exposure visit on HAM Model to Karnataka; v) (Number) Training/Exposure visit to US; vi) RAMS and PMBC training on June 28-29, 2023 for MoPIT, DoR, DoLI officials; (vii) Six tranings on periodic maintenace for DoR and contractors; (viii) Three training on Road Safety from PMC-Road Safety; ix) 4 trainings on OHS to Engineers and contractors working on periodic maintenace conducted by Bank team Number of women trained 0.00 Apr/2020 153.00 05-Aug-2024 250.00 17-Feb-2025 500.00 Jul/2027 for skilled employment Comments on 250 women along NNM road are trained in electric wiring and plumbing. opportunities in transport achieving targets and allied sectors (Number) Number of trained women 0.00 Apr/2020 0.00 05-Aug-2024 0.00 17-Feb-2025 50.00 Jul/2027 facilitated for employment or Comments on Up to now 158 participants passed the National Skill Testing Board, CTEVT and another 78 is livelihood through achieving targets expected pass by the end of February 2025. Among the passed candidates 25 are targetted placement-counselling and to be employed by June 30, 2025. support (Number) 0 Lane/Km Apr/2020 1457 Lane/Km 05-Aug-2024 1,514 Lane/Km 17-Feb-2025 3,400 Lane/Km Jul/2027 Periodic Maintenance of Comments on Up to 5th year, total 34 works packages for 1,912 lane km awarded and 1,513 lane km roads within the Core Road achieving targets completed. Network (Text) As per the MTR review the end target has been revised from 3,400 to 2,400 lane km which is based on annual program of the DoR. Percentage of grievances 0.00 Apr/2020 62.00 18-Jan-2024 82.00 17-Feb-2025 80.00 Jul/2027 received that are processed Comments on As of January 2025, the NNM Road project has recorded a total of 398 grievances, with 327 within the stipulated service achieving targets of them resolved. Between late November 2024 and late January 2025, 11 new grievances standards (NNM & KDP were reported. roads) (Percentage) Mar 14, 2025 Page 11 of 13 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed IDA-66740 Closed 150.00 15.12 148.36 0.41 0.00 100.00 % IDA-66730 Effective 300.00 288.93 0.00 60.86 228.56 21.03% 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing IDA-66730 Effective 10-Jun-2020 17-Jul-2020 24-Jul-2020 15-Jul-2027 15-Jul-2027 Mar 14, 2025 Page 12 of 13 The World Bank Implementation Status & Results Report Nepal Strategic Road Connectivity and Trade Improvement Project (P170409) IDA-66740 Closed 10-Jun-2020 17-Jul-2020 24-Jul-2020 15-Jul-2027 20-Jul-2024 8. KEY DATES Key Events Planned Actual Approval 10-Jun-2020 10-Jun-2020 Effectiveness 24-Jul-2020 24-Jul-2020 Mid-Term Review No. 01 15-Jul-2024 09-Aug-2024 Operation Closing/Cancellation 15-Jul-2027 9. RESTRUCTURING HISTORY Restructuring Level 2 Approved on 11-Apr-2024 Restructuring Level 2 Approved on 09-May-2023 10. ASSOCIATED OPERATION(S) There are no associated operations Mar 14, 2025 Page 13 of 13