The World Bank Report No: ISR11481 Implementation Status & Results Nepal Road Sector Development Project (P095977) Public Disclosure Copy Operation Name: Road Sector Development Project (P095977) Project Stage: Implementation Seq.No: 11 Status: ARCHIVED Archive Date: 07-Dec-2013 Country: Nepal Approval FY: 2008 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 06-Dec-2007 Original Closing Date 30-Jun-2012 Planned Mid Term Review Date Last Archived ISR Date 01-Jun-2013 Effectiveness Date 21-Feb-2008 Revised Closing Date 30-Jun-2015 Actual Mid Term Review Date 30-Aug-2010 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is for the residents of beneficiary districts to have all season road access thereby reducing travel time and improving access to economic centers and social services. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Road Development 93.42 Institutional strengthening & policy reform 19.28 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Public Disclosure Copy Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Implementation Status Overview The Project Development Objective (PDO) rating continues to be moderately satisfactory. It was reported earlier that an impact study was conducted in 2011. The study verified two outcome indicators (linked to all weather access and travel time reduction) for roads under original project scopes. The study results show that the outcome indicators have surpassed targets. A new impact study, which will fully assess the PDO indicators, is now being planned. RSDP has completed the corresponding baseline study. The plan is to conclude the study by September, 2014. A recent road condition survey (November, 2012) results show that the proportion of black-topped Strategic Road Network (SRN) roads that are in poor condition (a project outcome indicator) was 11.27% (against an end-project target of 15%). Comparable figure from December, 2011 was 11.31%. This means that the network condition remains stable. Intermediate results indicators under the Road Development Component is likely to be achieved. However, severe delays have been observed in Page 1 of 10 The World Bank Report No: ISR11481 the implementation of the upgrading and periodic maintenance of roads contracts in a number of cases. RSDP is monitoring their progress closely and the Bank Team has been in close contact with the project. Bank team members are visiting roadwork sites and helping the government to identify issues that are critical in the contract implementation. A recent meeting (October 27, 2013) between the Government and the Bank has identified a total of 12 severely poor performing upgrading contracts. The Government has agreed to monitor their progress closely. Actions on the part of the Government have also been identified. It has been agreed that RSDP will cancel those poor-performing contracts that do not show Public Disclosure Copy adequate progress by January 2014. All intermediate results indicators under the Institutional Development Component are likely to be achieved barring one: the use of road asset management tools for the prioritization of road maintenance and upgrading works. It was reported earlier that the Government had approved the road safety action plan and its implementation is being started. Locations Country First Administrative Division Location Planned Actual Nepal Not Entered Naubise Nepal Not Entered Kalikot Nepal Mid Western Region Kalikot Nepal Not Entered Kalaiya Nepal Not Entered Kakani Nepal Mid Western Region Jajarkot Nepal Not Entered Ithari Nepal Not Entered Dharan Bazar Nepal Mid Western Region Dailekh Nepal Far Western Region Dadeldhura Nepal Not Entered Chandra Garhi Nepal Not Entered Butwal Nepal Not Entered Birganj Public Disclosure Copy Nepal Not Entered Bangahi Nepal Far Western Region Bajura Nepal Far Western Region Bajhang Nepal Far Western Region Baitadi Nepal Not Entered Amlekhganj Nepal Mid Western Region Surkhet Page 2 of 10 The World Bank Report No: ISR11481 Results Project Development Objective Indicators Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target Reduce percentage of blacktop SRN in poor Text Value 18% 11.27% 15% condition to 15% Date 25-Jun-2007 31-Aug-2013 30-Jun-2015 Comments The most recent road This target was revised from condition survey (November, 10% to 15% during the AF. 2012) results show that the proportion of black-topped Strategic Road Network (SRN) roads that are in poor condition was 11.27% (against an end-project target of 15%). The comparable figure from November, 2012 was 11.31%. This means that the condition of the network remains stable. Employment generated Number Value 250000.00 Date 31-Aug-2013 30-Jun-2015 Comments This has not been assessed person days yet. It will be assessed before the project closes. Employment generated- Male Number Value Sub Type Date 31-Aug-2013 Breakdown Comments This has not been assessed yet. It will be assessed before the project closes. Employment generated- Female Number Value Sub Type Date 31-Aug-2013 Public Disclosure Copy Breakdown Comments This has not been assessed yet. It will be assessed before the project closes. Employment Generated- Dalit Number Value Sub Type Date 31-Aug-2013 Breakdown Comments This has not been assessed yet. It will be assessed before the project closes. Page 3 of 10 The World Bank Report No: ISR11481 Employment Generated- Janajatis Number Value Sub Type Date 31-Aug-2013 Breakdown Comments This has not been assessed Public Disclosure Copy yet. It will be assessed before the project closes. Direct project beneficiaries Number Value 200000.00 800000.00 Date 25-Jun-2007 31-Aug-2013 30-Jun-2015 Comments Project beneficiaries within 4 This has not been assessed hours walking distance. yet. It will be assessed before the project closes. Female beneficiaries Percentage Value 50.00 50.00 Sub Type Supplemental Percent decrease in journey times in the Percentage Value 35.00 35.00 project area Date 25-Jun-2007 31-Aug-2013 30-Jun-2015 Comments Average 4h travel 45 percent decrease in Average 2.6 hours journey times to key economic centers (major market) in the project area. 44 percent decrease in journey times to key social services in the project area Decrease in journey times in the project area to Text Value 4 hours 2.6hours key economic centers Sub Type Supplemental Decrease in journey times in the project ares to Text Value 4 hours 3 hours key social centers Sub Type Supplemental Public Disclosure Copy Percent increase in population in project Percentage Value 8.00 12.05 14.00 districts to have all season road access within Date 25-Jun-2007 30-Jun-2011 30-Jun-2015 20 minutes walking distance Comments GIS shows 4.05% increase 6% increase Intermediate Results Indicators Page 4 of 10 The World Bank Report No: ISR11481 Indicator Name Core Unit of Measure Baseline Current End Target Improve staff capacity within DoR Text Value HR policy updated and 3 year Training being undertaken as HR policy updated and 3 year training plan finalized per the business plan. training plan finalized. Public Disclosure Copy Domestic and international training provided for DoR staff as per policy and plan Date 22-Feb-2010 31-Aug-2013 30-Jun-2015 Comments Third party technical audit Text Value In FY 2012/13 Technical audit Third party technical audit for 2 contracts under carried out for 20 percent of upgrading works and 9 the project works each year contracts under periodic maintenance were conducted by NVC. Discussions held with stakeholders. NVC is further monitoring issued raised in NCRs. 23 additional Technical auditors were trained (March 24 - April 12, 2013) In FY 2013/14. Also, two workshops were conducted by NVC, one at Biratanagar and one at Dang where about 115 technicians participated. Date 31-Aug-2013 30-Jun-2015 Comments Improved quality assurance Text Value The Central Road Lab has Quality monitoring plan been carrying out internal prepared each year and quality audits and calibration quality audit carried out by Public Disclosure Copy of the lab equipment. Central Road Lab Date 31-Aug-2013 30-Jun-2015 Comments The Central Road Lab has carried out internal quality audits. Road assessment management tools used for Text Value Report on road data Road assessment prioritization of road maintenance and management is being management tools used for upgrading works endorsed from the Ministry. prioritization of road TOR for the development of a maintenance and upgrading policy for data management works Page 5 of 10 The World Bank Report No: ISR11481 being finalized. TOR for development of data management system and road inventory being finalized. Public Disclosure Copy Date 31-Aug-2013 30-Jun-2015 Comments DoR IT based MIS operational Text Value WAN installed in DoR Offices WAN installed in 9 offices of IT based MIS operational in in Kathmandu DOR in the Kathmandu Valley all DoR divisions and implemented for two years. FMIS upgraded into Web based and being used. CMS upgraded into Web- based System and is being piloted. DOR has launched BMS. Performance-based high band width is procured. Date 30-Sep-2010 31-Aug-2013 30-Jun-2015 Comments Capacity building in Geo-technical, Text Value a) Assessments of on-going Capacity building in Geo- Environmental and Social aspects and create improvement carried out as technical, Environmental and awareness on HIV/AIDS recommended; b) Site Social aspects and create specific EMAP and RAP awareness on HIV/AIDS and monitoring being done planned activities carried out periodicallyfrom GESU and MoPIT. Independent external consultant used for monitoring environmental and social aspect. Consultants were used to conduct HIV / AIDs awareness program. Independent compliance Monitoring reports shared with the Bank. Public Disclosure Copy Date 31-Aug-2013 30-Jun-2015 Comments Periodic maintenance of targeted highways Number Value 1057.00 1000.00 and feeder roads backlog executed Date 01-Feb-2008 31-Aug-2011 30-Jun-2015 Comments 1200 km of SRN backlog 1000 km of backlog maintenance maintained Page 6 of 10 The World Bank Report No: ISR11481 Road Safety Action Plan & physical works Text Value No action Plan Road Safety Action Plan Road Safety action plan developed and approved. implemented and physical works carried out Public Disclosure Copy Date 01-Feb-2008 31-Aug-2013 30-Jun-2015 Comments Road Safety Action Plan has been approved by GON. Launching of the plan is being planned by GON. 2550 km of highways received periodic Number Value 0.00 1323.00 2550.00 maintenance Date 01-Feb-2008 31-Aug-2013 30-Jun-2015 Comments 1,323 km have been completed to June, 2013. All 632 km of SRN for Periodic Maintenance in FY 2011/12 works has been procured & under progress. For total 522 km (total 22 contracts), 18 Third Year PM contracts for FY 2012/13 have been awarded; 4 contracts went for re-bid and are in procurement process. For FY 2013/14 about 550 km road length identified under PM (IRAMP). All identified length will be addressed using available budget. 700 km of target roads received upgrading Number Value 0.00 449.00 705.00 works Date 01-Feb-2008 31-Aug-2013 30-Jun-2015 Comments 449 km upgraded So far upgraded (414km-Otta-seal, 5km-DBST surface, 30km- Public Disclosure Copy gravel surface; 299km-original project scopes plus 150km- under AF). Roads in good and fair condition as a share of Percentage Value 82.00 88.70 85.00 total classified roads Date 06-Nov-2007 31-Aug-2013 30-Jun-2015 Comments 11.31 % of black-top road in Based on total classified poor condition (report network calculated by SDI December 2011) (IRI not available) Size of total classified roads Number Value 9399.00 10835.00 Page 7 of 10 The World Bank Report No: ISR11481 Sub Type Supplemental Share of rural population with access to an all- Percentage Value 7.60 12.60 14.00 Public Disclosure Copy season road Date 06-Nov-2007 06-Sep-2010 30-Jun-2015 Comments In the districts covered under Not formally calculated yet. Target will be 14% of the project Will be completed when all population will have access to roads are completed ASR within 20 mins or 2kms in the districts covered under the project Number of rural people with access to an all- Number Value 71500.00 119000.00 131000.00 season road Sub Type Supplemental Roads rehabilitated, Non-rural Kilometers Value 343.00 705.00 Date 08-Feb-2013 30-Jun-2015 Comments Strategic Road Network only. Roads Board Act Amendment and more Text Value Act amendment drawn up and RBN act has been tabled in RBN act tabled to the trainining and logistics provided submitted to Ministry of the Parliament and under Parliament. Justice discussion in the 100 percent of studies and Parliamentary sub-committee training completed RBN has prepared five year business plan (2012-2017), and submitted to the Board. Board has appointed a sub- committee to review the business plan and yet to be approved. Date 25-Sep-2007 31-Aug-2013 06-Jun-2012 Comments Government decision to benchmark RBN staff Text Value RBN staff salaries salaries to market rates Sub Type benchmarked to market rates Public Disclosure Copy Supplemental Human Resource Development Plan Text Value No HRD Plan for RBN HRD prepared and Sub Type implemented Supplemental Data on Financial Performance (as of 09-Jul-2013) Page 8 of 10 The World Bank Report No: ISR11481 Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P095977 IDA-48320 Effective 23-Nov-2010 04-Mar-2011 11-Apr-2011 30-Jun-2015 30-Jun-2015 Public Disclosure Copy P095977 IDA-50020 Effective 02-Jun-2011 08-Jul-2011 08-Jul-2011 30-Jun-2015 30-Jun-2015 P095977 IDA-H3390 Effective 06-Dec-2007 31-Jan-2008 21-Feb-2008 30-Jun-2012 31-Dec-2013 P095977 IDA-H6290 Effective 02-Jun-2011 08-Jul-2011 08-Jul-2011 30-Jun-2015 30-Jun-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P095977 IDA-48320 Effective XDR 26.60 26.60 0.00 23.64 2.96 89.00 P095977 IDA-50020 Effective XDR 17.50 17.50 0.00 0.00 17.50 0.00 P095977 IDA-H3390 Effective XDR 27.80 27.80 0.00 27.80 0.00 100.00 P095977 IDA-H6290 Effective XDR 4.20 4.20 0.00 0.00 4.20 0.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation • A recent review (August-September, 2013) has concluded that although the project is still in a problem status, the downward slides have been arrested. Good progress has been made in the social and environmental safeguards and project management areas; • The progress of 28 upgrading and periodic maintenance contracts (14 upgrading and another 14 periodic maintenance contracts) has been poor. Of them 6 and 12 periodic maintenance and upgrading contracts respectively have been identified as severely slow performing; Page 9 of 10 The World Bank Report No: ISR11481 • The project management has been proactive in expediting the progress of the poor performing contacts. However, the progress has been hampered due to the rain and extended monsoon period. • Recently a meeting between the Ministry of Physical Infrastructure and Transport and the World Bank has identified a set of actions to improve the performance of the severely slow performing upgrading contacts. The meeting has agreed that if any contract that fails to make significant progress by January, 2014 will be considered for immediate Public Disclosure Copy termination. Restructuring History Level two Approved on 27-Jun-2012 Related Projects P119735-NP: Road Sector Development Project-AF Public Disclosure Copy Page 10 of 10