The World Bank Report No: ISR14557 Implementation Status & Results Nepal Road Sector Development Project (P095977) Public Disclosure Copy Operation Name: Road Sector Development Project (P095977) Project Stage: Implementation Seq.No: 12 Status: ARCHIVED Archive Date: 18-May-2014 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 07-Dec-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 Satisfactory Overall Risk Rating Moderate 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 had dealt with two outcome indicators (linked to all weather access and travel time reduction) of roads developed under original project scopes. The study results showed that the outcome indicators had surpassed targets. New impact studies are now being planned, which is expected to be completed by December, 2014. These studies will determine the achievement of one of the three outcomes: the indicator linked to the reduction of travel time savings. A Geographic Information Systems (GIS) based accessibility study to assess another outcome indicator (percentage increase in population to all season road access) is also expected to be completed by 2014.The third outcome indicator is related to Strategic Road Network (SRN) conditions. A road condition survey (November, 2012) results show that the proportion of black-topped Strategic Road Network (SRN) roads that are in poor condition Page 1 of 11 The World Bank Report No: ISR14557 (a project outcome indicator) was 11.27% (against an end-project target of 15%). Another condition survey results are expected before the project closure. Intermediate results indicators under the Road Development component are most likely to be achieved. However, severe delays have been observed in the implementation of 18 road contracts (four upgrading and 14 periodic maintenance contracts). The Project has initiated actions against four poorly performing upgrading contractors. In one case RSDP is in Public Disclosure Copy the process of forfeiting the performance guarantee of one contractor. The management of periodic maintenance contracts requires proactive actions including improved coordination amongst different Department of Roads offices. Bank team members, along with the project officials, have been visiting roadwork sites and helping the government to identify issues that are critical in the contract implementation. The Government has agreed in the review wrap-up meeting that if the performance of non-performing contracts is not improved substantially then actions will be taken against the faltering contractors, including their cancellation. All intermediate results indicators under the Institutional Development and Policy Reform component are likely to be achieved barring one: the use of road asset management tools for the prioritization of road maintenance and upgrading works. However, actions are being taken to prepare a complete road inventory, albeit the progress has been slow. Such an inventory is a prerequisite for the road asset management. The Roads Board Nepal (RBN) has been re-initiating the process of the amendment of the RBN Act. The draft amended Act was stalled in the last Parliament. Actions are now being undertaken to implement road safety action plan activities. Department of International Development (DFID, UK) has agreed to fund the installation of crash barriers on RSDP roads along with other activities linked to the operationalization of the Road Safety Action Plan. 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 Public Disclosure Copy Nepal Far Western Region Dadeldhura Nepal Not Entered Chandra Garhi Nepal Not Entered Butwal Nepal Not Entered Birganj Nepal Not Entered Bangahi Nepal Far Western Region Bajura Page 2 of 11 The World Bank Report No: ISR14557 Country First Administrative Division Location Planned Actual Nepal Far Western Region Bajhang Public Disclosure Copy Nepal Far Western Region Baitadi Nepal Not Entered Amlekhganj Nepal Mid Western Region Surkhet Results Project Development Objective Indicators 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-Mar-2014 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%). Employment generated Number Value 250000.00 Date 31-Mar-2014 30-Jun-2015 Comments This is being worked out. The person days figures would be available by June 2014 Employment generated- Male 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- Female 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- Dalit Number Value Page 3 of 11 The World Bank Report No: ISR14557 Sub Type Date 31-Mar-2014 Breakdown Comments This has not been assessed yet. It will be assessed before Public Disclosure Copy the project closes. Employment Generated- Janajatis Number Value Sub Type Date 31-Mar-2014 Breakdown Comments This is being worked out. The figures would be available by June 2014 Direct project beneficiaries Number Value 200000.00 800000.00 Date 25-Jun-2007 31-Mar-2014 30-Jun-2015 Comments Project beneficiaries within 4 A study is being conducted. hours walking distance. The figures would be available by December 2014 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. (Source: Socio-Economic Impact Study, October-2011). A further impact study is now Public Disclosure Copy being planned, which is expected to be completed by end-2014. Decrease in journey times in the project area to Text Value 4 hours A study is being planned. The 2.6hours key economic centers Sub Type information should be available before the project Supplemental end. Page 4 of 11 The World Bank Report No: ISR14557 Decrease in journey times in the project ares to Text Value 4 hours A study is being planned. The 3 hours key social centers Sub Type information should be available before the project Supplemental end. 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 A 2011 study that used GIS 6% increase shows 4.05% increase. A new study is now being planned. This study is expected to be completed by end-2014. Intermediate Results Indicators 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. Domestic and international training provided for DoR staff as per policy and plan Date 22-Feb-2010 31-Mar-2014 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. Public Disclosure Copy 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 Page 5 of 11 The World Bank Report No: ISR14557 participated.Listing of projects for technical audit (2013/14) completed, TOR for selection of shortlisted Individual Public Disclosure Copy Consultant finalized and RFP has been issued. Audit works will be completed by mid of July, 2014. Date 31-Mar-2014 30-Jun-2015 Comments Improved quality assurance Text Value Quality monitoring plan prepared each year and quality audit carried out by Central Road Lab Date 31-Mar-2014 30-Jun-2015 Comments The Central Road Lab has been carrying out internal quality audits and calibration of the lab equipment. 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 Road inventory related maintenance and upgrading consultancy is being works procured. Date 31-Mar-2014 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. Public Disclosure Copy CMS upgraded into Web- based System. DOR has launched BMS. Performance- based high band width is procured. Date 30-Sep-2010 31-Aug-2013 30-Jun-2015 Comments Page 6 of 11 The World Bank Report No: ISR14557 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 Public Disclosure Copy 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. 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-Mar-2014 30-Jun-2015 Comments 1200 km of SRN backlog 1000 km of backlog maintenance maintained 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 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 in May, 2014. 2550 km of highways received periodic Number Value 0.00 1252.00 2550.00 maintenance Public Disclosure Copy Date 01-Feb-2008 31-Aug-2013 30-Jun-2015 Comments Total length completed: 1,252 km (as of March, 2014). FYPM (FY 2010/11): • Total procured length 663 km (26 contracts) • Total Completed length: 645km SYPM (FY 2011/12): • Total procured length 647 km (27 contracts) Page 7 of 11 The World Bank Report No: ISR14557 • Total Completed length: 152km TYPM (FY 2012/13): • Total procured Public Disclosure Copy length 522 km (22 contracts) • Total Completed length: nil FY 2013/14 (fully financed by GON): Total lengthidentified: approximately 550km (using IRAMP) 700 km of target roads received upgrading Number Value 0.00 449.00 705.00 works Date 01-Feb-2008 31-Mar-2014 30-Jun-2015 Comments 449 km upgraded So far upgraded (414km-Otta-seal, 5km-DBST surface, 30km- 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 11.27 % of black-top road in Based on total classified poor condition (report network calculated by SDI November 2012) (IRI not available) Size of total classified roads Number Value 9399.00 10835.00 Sub Type Supplemental Share of rural population with access to an all- Percentage Value 7.60 12.60 14.00 season road Date 06-Nov-2007 31-Mar-2011 30-Jun-2015 Comments In the districts covered under Not formally calculated yet. A Target will be 14% of the project study is being planned. population will have access to Public Disclosure Copy Results might be available by ASR within 20 mins or 2kms end-2014. 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 Page 8 of 11 The World Bank Report No: ISR14557 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 had been tabled in RBN act tabled to the Public Disclosure Copy trainining and logistics provided submitted to Ministry of the earlier Parliament and Parliament. Justice was under discussion in the 100 percent of studies and Parliamentary sub-committee. training completed RBN/MoPIT is initiating to reactivate the process again in the new parliament. 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 Supplemental Human Resource Development Plan Text Value No HRD Plan for RBN RBN has prepared five year HRD prepared and Sub Type business plan (2012-2017), implemented and submitted to the Board. Supplemental Board has appointed a sub- committee to review the business plan and yet to be approved. Public Disclosure Copy Data on Financial Performance (as of 02-May-2014) 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 P095977 IDA-50020 Effective 02-Jun-2011 08-Jul-2011 08-Jul-2011 30-Jun-2015 30-Jun-2015 P095977 IDA-H3390 Closed 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 Page 9 of 11 The World Bank Report No: ISR14557 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 26.31 0.29 99.00 P095977 IDA-50020 Effective XDR 17.50 17.50 0.00 0.00 17.50 0.00 Public Disclosure Copy P095977 IDA-H3390 Closed XDR 27.80 27.80 0.00 27.80 0.00 100.00 P095977 IDA-H6290 Effective XDR 4.20 4.20 0.00 3.90 0.30 93.00 Disbursement Graph Key Decisions Regarding Implementation • A recent review (end-March, 2014) has concluded that the project has made substantial progress since the August-September, 2013 review. The project management has been more proactive in tackling issues linked to both the project components: Road Development and Institutional Strengthening and Policy Reform. The project performance has Public Disclosure Copy been found to be far improved than the August-September, 2013 review. There has been good progress in the social and environmental safeguards, procurement areas; • The progress of 18 upgrading and periodic maintenance contracts (4 upgrading and another 14 periodic maintenance contracts) has been found to be poor. The Project has initiated actions against the poorly performing upgrading contracts. Similar actions are also being contemplated for the periodic maintenance contracts; • Although there has been significant improvement in the performance of the Institutional Strengthening and Policy Reform Component, activities linked to the road inventory development need to make quick progress given that it is in the main building block for an effective road asset management system. • The audit report (Financial Year 2012/13) is now overdue, which requires urgent submission. Restructuring History Level two Approved on 27-Jun-2012 Related Projects Page 10 of 11 The World Bank Report No: ISR14557 P119735-NP: Road Sector Development Project-AF, P149606-ROAD SAFETY SUPPORT TO ROAD SECTOR DEVELOPMENT PROJECT Public Disclosure Copy Public Disclosure Copy Page 11 of 11