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Nepal India Regional Trade and Transport Project (NIRTTP)
(IDA Credit 5273-NP and IDA Grant H-863-NP)
Implementation Support Review, January 7-31, 2019
Aide Memoire
1. During January 7-31, 20191, a Bank Team2 led by Deepak Shrestha carried out an
Implementation Support Review of the Nepal-India Regional Trade and Transport Project (NIRTTP).
This Aide Memoire (AM) summarizes the findings on the status of project implementation, and
agreements reached during the review. The AM was discussed at the wrap-up meeting chaired by Mr.
Chandra Kumar Ghimire3, Secretary, Ministry of Industry, Commerce and Supplies (MoICS), and a
separate debriefing meeting with Mr. Shreekrishna Nepal, Joint Secretary, Ministry of Finance, on
January 11, 2019. The Bank team also met the new Secretary Mr. Kedar Bahadur Adhikari, MoICS on
January 30, 2019. As agreed during the review, this AM will be classified as a public document in
accordance with the World Bank’s Access to Information Policy.
OVERALL STATUS AND KEY PROJECT DATA
2. The likelihood of achievement of Project Development Objective and Implementation Progress
have both been downgraded to “Moderately Unsatisfactory” due to two critical issues: (i) start of works
for construction of Kathmandu Inland Container/Clearance Depot (ICD) at Chobhar with help of
security personnel despite of unresolved grievances of locals regarding the legacy land issues of earlier
Himal Cement Factory; and (ii) substantial delay in the procurement process for National Single
Window (NSW) leading to fourth and final bid validity extension up to February 24, 2019.
Program Data Program Performance Ratings Board approval: 28-Jun-2013
Consideration Last Rating Current
Rating Trend
Effectiveness date: 10-Sep-2013 Achievement of PDO MS MU ▼
Original closing date: 31-Dec-2019 Implementation Progress MS MU ▼
Component A1/A2-MoICS MS MS ◄►
Mid-term review date 13-Feb-2017 Component A3-DoTM S S ◄►
Component B1-TEPC HS HS ◄►
Original IDA amount US$ 99.0 m Component B1- DoC U U ◄►
IDA Grant US$30.0 m Component B2-MoALD MS MS ◄►
IDA Credit US$69.0 m Component B3-PCO MS MS ◄►
Component C1-DoR S S ◄►
Component C2-NITDB MS MU ▼
Component C3-NITDB MS MS ◄►
Project Management MS MU ▼
Amount disbursed:
(Jan 9, 2019)
USD 59.29 m
(48.52%)
Procurement MS MU ▼
Financial Management MS MS ◄►
Safeguards MS MU ▼
M&E MS MS ◄►
Counterpart Funding S S ◄► Overall Project Rating MS MU ▼
Notes: S- satisfactory; MS – moderately satisfactory; MU - moderately unsatisfactory; U – unsatisfactory;
▲ improving trends; ▼ deteriorating trends; ◄► static
1 Originally planned for January 7-11; Due to quick developments on the issues related to the Inland Clearance Depot at
Chobhar the review period was extended to January 31, 2019 for further consultations. 2 Deepak Shrestha (TTL, Senior Transport Specialist), Erik Nora (co-TTL, Sr. Operations Officer), Charles Kunaka (Lead
Trade Economist), Sri Kumar Tadimalla (Senior Transport Specialist), Josefo Tuyor(Senior Environmental Specialist);
Prakash Awasthi (Environmental Consultant), Jun Zeng (Senior Social Development Specialist), Hari Bhattarai (Social
Safeguards Consultant), Shambhu Uprety (Sr. Procurement Specialist), Ramesh Bista (Procurement consultant), Yogesh
Bom Malla (Sr. Financial Management Specialist), Pradip Shrestha (Financial consultant), Surendra Joshi
(Implementation Consultant), Kamal Pande (Consultant), Sunil Poudyal (Consultant) and Bibash Shrestha (Program
Assistant). 3 The Secretary Mr. Ghimire was transferred and replace by Mr. Kedar Bahadur Adhikari during the review period.
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KEY POINTS DISCUSSED AND AGREED ACTIONS
3. This section summarizes the key issues and actions in each project component. Detail description
of progress status for each component is provided in Annex 3.
4. Component A1: Technical Assistance (TA) to Modernize Bilateral and Regional Transit
Regime: The program of analytical and technical assistance activities implemented under the Project has
been used to support several new trade facilitation initiatives with India. One of the significant
developments has been the opening up to Nepali traffic of the transit corridor from the port of
Vishakhapatnam. Operations have been designed with the use of an electronic cargo tracking system
(ECTS), though still on a pilot basis. Program of analytical and technical assistance activities totaling
US$800,000 is under implementation. As requested earlier by the government, the remaining US$3.7
million will be reallocated to components that are short of funds.
5. Component A2: Electronic Data Interchange between Nepal and India. During the 18th
Customs Director General meeting in October 2017 the Governments of Nepal and India had agreed to
work on Customs Transit Document (CTD) automation. Taking cognizance of the fact that the ECTS pilot
is a bilateral initiative between India and Nepal, the team urged the government to draw up a plan for
drafting of Standard Operating Procedure for the system, its scaling up and extension to the Kolkata
corridor. The results framework indicator on the CTD, “Percentage of transit goods cleared through
electronic CTD”, may have to be dropped when there is a light restructuring of the project.
6. Component A3: Support to the Road Transport Regulatory Authority. Key agreed activities
include (i) Dissemination of this bus route survey information and guidelines to the province level transport
offices;( ii) launch the Road Accident Information Management System (RAIMS) officially for Kathmandu
valley and proceeding forward to implement in Kathmandu Birgunj corridor traffic police offices; (iii)
restart the process of Expression of Interest (EOI) for the operation and maintenance of existing Kathmandu
Vehicle Fitness Testing Centre (VFTC) facilities; (iv) plan to construct a smaller scale of weigh bridge
station in completed section of Narayanghat Mugling Road; (v) complete the study for the proposed VFTC
facilities in Province level; and (vi) start planning to implement the GPS based tracking system in the
public vehicles. Considering already executed and planned activities under the Project, the Department of
Transport Management (DoTM) will need additional budget of US$1-US$1.5 million to implement all
planned activities. It has been agreed that the unused and unallocated funds for Component A can be
allocated to DoTM for this purpose.
Component B1 – Nepal National Single Window and Trade Information Portal (NNSW/NTIP).
7. Nepal Trade Information Portal (NTIP). The Consultant Ms. Infinite Computer Solutions (India)
and Info Developers (Nepal) has prepared a System Design document to develop and enhance the core
World Bank NTIP. Accordingly, an updated NTIP core system is being hosted in the Nepal Government
cloud. TEPC has initiated process for hiring two individuals, one National and one International IT expert
to support their team to review and accept the system. Also, procurement for some additional hardware and
solar backup will restart after necessary budget approval for this fiscal year. The Project Coordination Unit
agreed to initiate necessary approval of budget and change in the annual program, if any.
8. National Single Window (NSW). There continues to be substantial delay in the implementation
of this sub-component. The bids received on March 21, 2018 are still under evaluation process. After the
last review in June 2018, the Government communicated interest in continuing with the implementation
of the NSW, and also requested to extend the Project closing date for one year mainly for this component.
The Bank has provided the fourth and final no objection for extension of the bid validity period up to
February 24, 2019. Department of Customs (DoC) team together with assistance from the Procurement
Specialist in the PCU (MoICS) has completed the technical evaluation but still need to finalize the
evaluation and award before February 24, 2019. The Government has committed to closely monitor the
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timelines for award of contract within the bid validity period to avoid the situation of possible cancellation
of this component. In case of award of NSW contract, the DoC team need to (i) seek services of the Project
Monitoring and Quality Advisory (PMQA) services consultant; and (ii) reconstitute the National Single
Window Working Group for monitoring and coordination.
9. Component B2 – Improvement of Trade-Related Laboratories. Construction of the new
Sanitary and Phyto-Sanitary (SPS) Laboratory at Harihar Bhawan is in progress. As an effect of federalism
and organizational changes, the team noted that now Plant Quarantine and Pesticide Management Office
(PQPMO), responsible for the SPS laboratory management, is responsible for this particular component.
The team noted that the earlier agreed activity to develop web-based national pest surveillance database has
been dropped. Instead, some specific lab equipment, study for the organization in the changed scenario of
federalism, and some trainings have been agreed to be included. Under the same component, Department
of Customs has procured a gas-liquid chromatography & mass spectrometry analyzer, and is in the process
of procuring an X-ray radiography examination equipment to support the Customs Lab in Kathmandu
10. Component B3 – PCO and NTTFC Strengthening. The PCO has been continuing to coordinate
and support the multiple trade related agencies under the Project. Technical advisors, procurement
specialist, and environmental specialist services has been continued to be engaged to support the MoICS,
NTTFC, MoALD, DoTM, NITDB and other project implementation. It has been noted that the PCO is also
supporting to conduct various studies in the trade related activities to support the discussions and decision
process in the Ministry.
11. Component C1 – Narayanghat-Mugling (N-M) Road Improvement Works. The improvement
works on the 33km of N-M Road has been substantially completed however, the followings are agreed to
complete the remaining residual works as; (i) implement the remaining traffic safety measures considering
increasing traffic volume and vehicle speed; (ii)appoint design consultant, investigate and finalize the
designs for slope works, and complete implementation of measures before monsoon 2019; (iii) finalize the
details of construction method including traffic management and safety in the Jalbire bridge; and (iv) assess
and finalize the approach and safety related issues in all the four bridges being built in parallel to existing
bridges by end of February 2019.
12. Kathmandu-Naubise-Mugling (KNM) Road preparation. Feasibility, detailed design, and
environmental and social safeguards studies have been completed. Government’s request for funding for
existing road improvement and one bypass namely, Sisne khola – Dharke (12 km) received. Considering
the project preparation point of view the following were considered as next actions: (i) Design review and
finalization of scope of works in the improvement and new bypass, (ii) preparing the bid documents with
due considerations of the traffic management, construction safety, operation and maintenance. As such,
lessons learned from implementation of N-M road should be incorporated in the planning and
implementation. (iii) retrofitting of ESIA report for these road sections as per new Environmental Social
Framework (ESF) requirement, and (iv) preparation of Project Procurement Strategy for Development
(PPSD) as per the New Procurement Framework.
13. Component C2. Development of Inland Container/Clearance Depot in Kathmandu at
Chobhar. Following the complaint letter received from Chobhar Conservation Committee on 29th August,
2018, the Bank requested the Ministry to review the issues raised in the grievances and advise the Bank
about its action plan to resolve it. Despite regular follow up, various consultation meetings with the NITDB
and the Ministry, the Bank team has not received any action plan. In the meantime, the foundation stone
laying ceremony by the Prime Minister was held on January 17, 2019 when about 55 agitating locals has
been reported to be detained and released later by the police. The media report suggests the works has
started in the presence of security personnel. The Bank team, during follow up meetings with the Ministry,
highlighted that the grievances of locals need to be resolved as per applicable safeguard policies. On this
the Ministry agreed (i) to form a high level committee and continue this throughout the project period; (ii)
include in the TOR that the grievances to be dealt as per the safeguards requirements for the Project; (iii)
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to communicate their latest plan of action for addressing this grievance, including the formation and TOR
of high level committee; and (iv) develop formal mechanism for fortnightly meetings between the Ministry
and the Bank Team to jointly review the progress on this regard.
14. Component C3. Improvement of Bhairahawa and Birgunj ICDs: Bhairahawa ICD pavement
works completed in April 2016. Birgunj ICD shed completed more than 95% . Physically, the shed and
concrete flooring is complete with minor works remain are floor top finish, electrification, and fire hydrant.
The team noted that the Consultant shall issue completion certificate when substantially complete.
Liquidated damages is already applied due to substantial delay. The activity of shifting and improvement
of existing railway tracks at Birgunj ICD shall be cancelled.
15. Results Monitoring and Evaluation (M&E). The M&E rating is maintained as Moderately
Satisfactory. First cycle of data collection in December 2018 is complete and reported on transit time
between Birgunj and Kolkata. Available data suggest a significant improvement in transit and border
clearance time (Annex 5). The NITDB has a vehicle entry and exist system in place that can be used to
measure the dwell time of trucks inside the ICP. Based on the latest data, the dwell time is an average of
26 hours though the new Birgunj-Raxaul Integrated Check Post (ICP). The time from Raxaul to entry into
the Nepal ICP, including queuing time, was estimated at 0.4 days based on December 2018/January 2019
data, down from 3.5 days when the facility first opened in April 2018. The transit time from Kolkata to
Birgunj was assessed at 3.3 days by rail and 4.2 days by road. Due to delay in the procurement of CMEDMS
the Team urged NITDB to start with data that it already has access to, including new data streams such as
from the Birgunj ICP tracking system and the ECTS pilot. It was agreed that the full build of the CMEDMS
as originally conceived may be realized only in the medium term.
FIDUCIARY COMPLIANCE
16. Procurement Management. The team assessed the implementation status of the procurement
plan. No progress has been made yet on the procurement process of the major procurement activity for
development and implementation of NNSW System. The second stage bids received on 21st March 2018
are still under final evaluation process under DOC causing fourth time bid validity extension for up to 24th
February 2019. Considering the Government’s commitment to establish and implement “NSW System”,
on an exceptional basis, the Bank has agreed the fourth and final extension. In case of Chobhar ICD works
contracts, the team would like to draw the Project’s attention to resolve the grievances/ issues as soon as
possible as continuation of such issues may risk the contract completion within the project period. Because
of the substantial delay in the procurement process of NSW and unresolved grievances/ issues of Chobhar
ICD, procurement performance rating is downgraded to “Moderately Unsatisfactory”.
17. Financial Management and Disbursement. Financial Management remains “Moderately
Satisfactory” while counterpart funding is Satisfactory. In this fiscal year, the Project has incurred total
expenditures of NPR 265.55 million (13.51% of the total approved budget of NPR 1,965.80 million) in the
six months. MoICS PCO has incurred expenditures of NPR 85.11 million (5.71% of approved budget) and
DoR has incurred expenditures of NPR 180.44 million (38.07% of approved budget). The required
disbursement from the Bank for ICD in Kathmandu has not been made due to non-compliance of Section
IV B 1(b) of Financing Agreement with respect to provision of the ESMF. NITDB has deposited liquidated
damage of NPR 15.05 million recovered from ZIEC - Pappu JV to government revenue. The Project has
maintained books of accounts, ledgers, and payment vouchers as required. There are no pending agreed
actions except submission of the audit report of FY 2017/18 which is now overdue.
18. Disbursement. Total disbursement as of January 31, 2019 is US$ 59.29 million including initial
deposit of US$8.00 million, which is 48.52% of the total allocation. DOR ad MoICS are yet to document
US$1.97 million and US$ 1.80 million, respectively for amounts paid from the Designated Account.
Estimated disbursement for the remaining period of this fiscal year is US$ 6.5million. Delayed
implementation of Chobhar ICD and National Single Window have adversely impacted the disbursement.
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SAFEGUARDS MANAGEMENT
19. Environmental and Social Safeguards. The environmental and social safeguards performance is
rated “Moderately Unsatisfactory” mainly due to pending resolution of complaints coming from some local
stakeholders on Chobhar ICD. There is also lack of progress on the actions agreed to be implemented from
the last review and the follow up review in October 2018, and January 2019 for the Narayanghat Mugling
(NM)Road. More specifically, the following works and environmental, social and health & safety measures
remain outstanding for the NM Road: slope stabilization and protection works in seven active slips; road
safety improvements and corrections; cleanup and restoration of work areas; improvements of wildlife
water holes, plantation of live fences along wildlife passes, and reinstatement of community structures;
Meanwhile ESHS staffing for DOR, NITDB and both ICB & NCB Contractors for the Chobhar ICD also
remains outstanding. Annex 4 provides detailed assessment of the safeguard performance of the Project and
E & S action plan.
NEXT STEPS AND REVIEW. The next implementation support review is tentatively planned for June
2019. The Bank team will carry out interim reviews in February/March to reassess progress of the NSW
and issues on ICD at Chobhar. Summary of Key Agreed Actions are listed below. Detail lists prioritized
actions agreed during the review is presented in Annex 2.
20. Summary of Key Agreed Actions
S. No. Actions Responsibility Timeline
1 Complete evaluation and award contract for Nepal National
Single window (NSW)
DOC/MoICS by February 24,
2019
2 Formation and functioning of High level Committee to resolve
grievances in Chobhar ICD
NITDB/
MoICS
February 10,
2019
3. Complete design and implementation of remaining slope
protection and stabilization measures in Narayanghat Mugling
road
DOR/ MoPIT May 31, 2019
4 Submit the outstanding audit report of FY 2017/18 DOR and PCU,
MoICS
Asap
Annexes
Annex 1. List of Persons Met
Annex 2. List of Priority Actions
Annex 3. Details on Progress of Project Components
Annex 4. Environmental and Social Safeguards Assessment
Annex 5. Project Results Framework
Annex 6: Updated Project Estimated Costs
6
Annex 1
List of Persons Met
Ministry of Commerce (MoICS)
1. Mr. Kedar Bahadur Adhikari, Secretary
2. Mr. Chandra Kumar Ghimire, Secretary
3. Mr. Rabi Shanker Sainju, Joint Secretary and
NIRTTP Project Director
4. Mr. Yogendra Prasad Pandeya, Under
Secretary/Project Coordinator
5. Mr. Buddhi Prasad Upadhaya, Under Secretary
6. Mr. Murari Prasad Gautam Upadhya, International
Trade Development Adviser
7. Mr. Himal Thapa, Trade Facilitation Adviser
8. Mr. Janardan Prasad Badal, Finance Manager
9. Mr. Rikesh Chitrakar, Environmental Safeguard
Specialist
10. Mr. Shankar Yadav, Procurement Consultant
National Planning Commission
11. Er. Sushil Bhatta, Member
Ministry of Finance (MoF)
12. Mr. Shreekrishna Nepal, Joint Secretary, IECCD
13. Mr. Harish Chandra Dhakal, Under Secretary
14. Mr. Khim Bahadur Kunwar, Under Secretary
Department of Customs (DoC)
15. Mr. Toyam Roya, DG
16. Ms. Manmaya Bhattarai Pangeni, Deputy Director
General
17. Mohan Khajum Chongbang, Director, IT
18. Mr. Basanta Das, Computer Officer
Trade & Export Promotion Center (TEPC)
19. Mr. Sarad Rana, Executive Director
20. Mr. Surendra Gongal, Director
Nepal Intermodal Transport Development Board
(NITDB)
21. Mr. Rabi Shanker Sainju, Executive Director
22. Mr. Chandra Kumar Subedi, Technical Advisor
23. Mr. Hare Krishna Mishra, Engineer
24. Mr. Pramod Acharya, Engineer
25. Mr. Humanath Khanal, Sr. Infrastructure Engineer
26. Mr. Ramesh Koirala, Account officer
27. Mr. Kamal Prasad Joshi, Engineer
28. Mr. Ram Chandra Paudel, Engineer
Department of Roads
29. Mr. Rabindra Nath Shrestha, Director General
30. Mr. Keshab Kumar Sharma, Deputy Director
General
31. Mr. Rohit Bisural, Sr. Divisional Engineer
32. Mr. Shiva Raj Adhikari, Unit Chief, GESU
33. Mr. Prem Prakash Khatri, SDE
34. Ms. Meera Joshi Environmental Specialist,
GESU
35. Ms. Rama Shrestha, Social Specialist, GESU
36. Mr. Manoj Aryal, Environment Inspector
37. Mr. Trilok Nath Ghimire, Engineer
Department of Transport Management
38. Mr. Lawanya Kumar Dhakal, Director
General
39. Mr. Prem KumarSingh, Director,
40. Mr. Padma Bahadur Shahi, Technical Adviser
41. Mr. Ram Chandra Poudel, Under Secretary
42. Mr. Shailendra Chaudhari, Engineer
43. Ms. Sitan Shrestha, Engineer
44. Ms. Nisha Thakur, Engineer
Department of Agriculture
45. Mr. Dilli Ram Sharma, Program Director,
Plant Quarantine and Pesticides Management
Center
46. Mr. Ram Krishna Subedi, Senior Plant
Protection Officer, Plant Quarantine and
Pesticides Management Center
Japan International Cooperation Agency
47. Mr. Sourab Rana
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Annex 2
Agreed Action during current review
Agreed Action Responsible
Agency
Current Agreed
Timelines
Overall Project Implementation and Management
1. i. Form High level committee and issue TOR to
address/ resolve grievances in Chobhar ICD
NITDB/
MoICS
10 February, 2019
2. i. Identify suitable site and get clearance from DOR
to construct a small scale weigh bridge along N-M
road
ii. Prepare engineering design, cost estimate, and bid
documents for weighbridge installation
iii. Launch Road Accident Information Management
System (RAIMS) for Kathmandu valley
iv. Complete the study and report on VFTC
establishment
v. Prepare implementation plan for use of GPS
tracking to monitor and control public vehicles
DoTM/ MoPIT 15 February 2019
15 March 2019
28 February 2019
31 March 2019
15 February 2019
3. i. Design and execute the slope protection and
stabilization measures at remaining seven active
slips,
ii. finalize the revised design for the Jalbire bridge
right bank ,
iii. finalize the traffic management and safety plan for
operation of 4 bridges under construction,
iv. complete the remaining traffic safety measures for
N-M road
DOR/ MoPIT end May 2019
15 February 2019
28 February 2019
15 March 2019
4. i. Appoint the IT (National and International)
experts to support review and quality assurance
for development of Trade portal
TEPC/ MoICS 15 March 2019
5. i. Award contract for Nepal National Single window
(NNSW),
ii. start process to acquire services of Quality
assurance and Advisory Services for
implementation of NNSW,
iii. reconstitute the National Single Window working
group for monitoring and coordination
DOC/MoICS 24 February 2019
15 February 2019
15 February 2019
Finance
1. Submit the pending audit report of FY 2017/18 (due
since January 14, 2019)
DOR, PCU/
MoICS
Asap
8
Environmental and Social
1. Hire of an Environmental Health and Safety Specialist
and a Social Specialist to monitor the ESMP
implementation of the NM Road and the NM Bridges
DOR 15 February 2019
2. Wildlife watering holes – construct drain to divert
surface runoff away from the watering holes at
Dhyangre Khola
DOR 28 February 2019
3. Wildlife passes – implement enhancement and/or
corrective measures to optimize the use of wildlife
passes including: (i) complementing the wire fence
with live fence using plant species abundant in the area
to avoid deer from crossing over the fence and straying
into the NM road; (ii) clearing of earth piles at the
Northern entrance of Aaptari 01 to ease animal
movement; (iii) decreasing swampiness & water
logging at the Ramnagar site; and, (iv) maintaining
greenery/vegetation inside and outside underpasses to
provide natural appearance
DOR 28 February 2019
4. Work and agree with Division of Forest Office,
Barandhabar Community Forest User Groups, CBOs
and Truck Associations to stop the throwing of trashes
around wildlife pass at the Ramnagar area
DOR 28 February 2019
5. Complete the slope protection and stabilization
measures at the seven active slips before the monsoon
season
DOR 30 April 2019
6. Improve road safety by (i) enforcing prohibition of
using headphones while driving; (ii) painting bridge
railings with retro reflecting paints to improve
visibility at night; (iii) improving road signages to
make them visible at night and to place them in right
places and distances enough to warn the motorists.
DOR 28 February, 2019
7. Complete implementation of remaining
EMP/measures, including site decommissioning,
cleanup & restoration works of all work areas, leveling
off and compacting and/or disposal of spoils materials
lying on the roadsides, closure of camps, etc.
DOR Before issue of
Completion
8. Reinstatement of community infrastructures/structures DOR Before issue of
Completion
9. Conduct walk over survey to assess and record in detail
outstanding issues along NM Road and ensure that
pending issues and defects are rectified
DOR Before issue of
Completion
10. Submit a full report detailing the process of consulting
the aggrieved parties, addressing and resolving the
grievances at the Chobhar ICD
NITDB 15 February 2019
11. Hire a full time Environmental Specialist, a full Social
Development Specialist and a full time Social
Mobilizer to supervise and monitor the implementation
of ESMP at the Chobhar ICD and SPS Laboratory
NITDB 28 February 2019
12. ICB Contractor to get on board qualified Social Officer
and an Environmental Health & Safety Officer
NITDB & ICB
Contractor
15 February 2019
13. NCB Contractor to get on board a qualified
Environmental Health & Safety Officer
NITDB & NCB
Contractor
15 February 2019
9
14. Submit EMAPs and all 12 environment-related plans
for ICB and NCB contracts to the Bank
NITDB
15 February 2019
15. improve working conditions, health & safety and
housekeeping at the SPS Laboratory construction site
PQPMC &
Contractor
15 February 2019
16. Amend the TORs for amending/retrofitting the ESIA,
RAP and VCDP for the KNM Road by identifying
gaps, additional studies and documentation and
expertise to make the documents compliant with the
Bank’s new ESF
World Bank &
DOR
15 February 2019
17. Amend and extend the contract of the ESIA, RAP and
VCDP consultants according to the amended TORs
DOR 20 February 2019
10
Annex: 3
Details on Progress of Project Components
1. Component A1: Technical Assistance (TA) to Modernize Bilateral and Regional Transit
Regime: The program of analytical and technical assistance activities implemented under the Project has
been used to support several new trade facilitation initiatives with India. One of the significant
developments has been the opening up to Nepali traffic of the transit corridor from the port of
Vishakhapatnam. Operations have been designed with the use of an electronic cargo tracking system
(ECTS), though still on a pilot basis. With ECTS there are limited steps to clear and remove cargo from
the port of Vishakhapatnam which is then shipped by rail to Raxaul/Birgunj. The shipping lines do not
impose demurrage charges on containers on the corridor. There is therefore potential for significant savings
for Nepal from not having to pay charges for delays in returning containers to the port. However, while the
new route has some distinct advantages, there is need for detailed cost comparisons as Vishakhapatnam is
further away from Birgunj than Kolkata and therefore has higher direct transport costs. The other
development is the planned extension at five different points of Indian railway lines into Nepal. The
extension will open up new railway routes for Nepal traffic. However, as the Railway Services Agreement
mentions only one route (between Kolkata and Birgunj), there is still a need for it to be amended to in order
to recognize the new routes. Program of analytical and technical assistance activities totaling US$800,000
is under implementation. As requested earlier by the government, the remaining US$3.7 million will be
reallocated to components that are short of funds.
2. Component A2: Electronic Data Interchange between Nepal and India. During the 18th
Customs Director General meeting in October 2017 the Governments of Nepal and India had agreed to
work on Customs Transit Document (CTD) automation. However, the initiative had since been paused
while the pilot on ECTS was being implemented. ECTS embeds similar functionality to CTD automation.
The emerging ECTS pilot results suggest that it can be a viable and more efficient system for transit
shipments across India, consistent with examples from other parts of the world where ECTS-type systems
have been successfully used for similar purposes. Taking cognizance of the fact that the ECTS pilot is a
bilateral initiative between India and Nepal, the team urged the government to draw up a plan for drafting
of Standard Operating Procedure for the system, its scaling up and extension to the Kolkata corridor. The
results framework indicator on the CTD, “Percentage of transit goods cleared through electronic CTD”,
may have to be dropped when there is a light restructuring of the project.
3. Component A3: Support to the Road Transport Regulatory Authority. . This component has
achieved significant progress in key activities and considered satisfactory. Key achievements include: (i)
study on Road Transport Safety and Axle Load control completed and various nine guidelines developed
to manage the transport safety and axle load control of public vehicles. These guidelines will be useful to
the province level transport offices as well. (ii) The bus route and vehicle standard surveys for all major
highways and feeder roads have been completed. The bus route survey information and guidelines now
need to be disseminated to the provincial level transport offices. DoTM agreed to conduct necessary
workshops and trainings to the provincial offices on the various nine guidelines including on the bus route
licensing. (ii) DoTM has regularly conducted the axle load survey in specific main trade routes using the
mobile axle load weighbridge units. The first analyses and report of this axle load survey report is prepared
and disseminated; (iv) Road Accident Information Management System (RAIMS) software development
and procurement of hardware/tablets has been completed. System installation, training, and deployment of
tablets to 37 police offices in Kathmandu Valley has been also completed and the system has been under
trial implementation since November 2018. Soon, the DoTM is planning to launch the system officially for
Kathmandu Valley and proceeding forward to implement in the Kathmandu-Birgunj corridor traffic police
offices. (v) The procurement of services from the old contractor for maintenance and operational service
for Kathmandu Vehicle Fitness Testing Centre (VFTC) has been cancelled. DoTM agreed to restart the
11
procurement process for the operation and maintenance of existing facilities. However, it is noted that the
DoTM is using the VFTC facility to conduct regular inspection of vehicles. (vi) Though the DoTM has
proposed to construct a fixed axle load weighbridge station in leased land at Gajuri this was not feasible
due to inadequate availability of land. Instead, a smaller weighbridge facility will be built along a completed
section of Narayanghat-Mugling road. It is agreed that a proper facility shall be included in the design of
the proposed project for improvement of Kathmandu-Naubise-Mugling road. (vi) The hiring process for an
international consultant for the study on establishing VFTC facilities at the provincial levels is completed
and the consultant is expected to join on 27 January, 2019. (vii) Regarding the LED TV screens that
distributed to the various Transport Management Office and Traffic Police to display road safety education
materials the DoTM was reminded to monitor and keep records. (viii) Considering the increase in speeding
and corresponding increase in road accidents, the DoTM is now using Global Positioning System (GPS)
technology to monitor and control public vehicles (routes and speed). DoTM has agreed to coordinate with
the DOR and Traffic police offices to fix the limit of speed for each segment of major highway and
implement the limitation. Considering already executed and planned activities under the Project, the
Department of Transport Management (DoTM) will need additional budget of US$1-US$1.5 million to
implement all planned activities. It has been agreed that the unused and unallocated funds for Component
A can be allocated to DoTM for this purpose.
Component B1 – Nepal National Single Window and Trade Information Portal (NNSW/NTIP).
4. Nepal Trade Information Portal (NTIP). Infinite Computer Solutions (India) and Info
Developers (Nepal) have been engaged since October 6, 2017 to develop and implement a range of new
features and enhancements to the core World Bank NTIP software toolkit. Several of the enhancements
will require real time data exchange with the Department of Customs (DoC) and this is expected to be
facilitated by an already signed Memorandum of Understanding between Trade Export Promotion Centre
(TEPC) and DoC. The Consultant’s System Design document has been already approved and accordingly
have further submitted User’s Acceptance Test and Operational Acceptance Test reports. The updated NTIP
core system is already hosted in the Nepal Government cloud which is being tested. TEPC has initiated
process for hiring two individuals, one National and one International IT expert to support their team to
review and accept the system. Also, procurement for some additional hardware and solar backup will restart
after necessary budget approval for this fiscal year. The Project Coordination Unit agreed to initiate
necessary approval of budget and change in the annual program, if any.
5. National Single Window (NSW). There continues to be substantial delay in the implementation
of this sub-component. The bids received on March 21, 2018 are still under evaluation process. After the
last review in June 2018, the Government communicated interest in continuing with the implementation
of the NSW, and also requested to extend the Project closing date for one year mainly for this component.
The Bank has provided the fourth and final no objection for extension of the bid validity period up to
February 24, 2019. Department of Customs team together with assistance from the Procurement Specialist
in the PCU (MoICS) has completed the technical evaluation but still need to finalize the evaluation and
award before February 24, 2019. The Government has committed to closely monitor the timelines for award
of contract within the bid validity period to avoid the situation of possible cancellation of this component.
6. In case of award of NSW contract for implementation, the team highlighted the need to (i) seek
services of the Project Monitoring and Quality Advisory (PMQA) services consultant; and (ii) reconstitute
the National Single Window Working Group for monitoring and coordination.
7. Component B2 – Improvement of Trade-Related Laboratories. Construction of the new
Sanitary and Phyto-Sanitary (SPS) Laboratory at Harihar Bhawan has started and about 15% physical
progress has been achieved. Physically the foundation pile works and concrete raft works has been
completed. As an effect of federalism and organizational changes, the team noted that now Plant Quarantine
and Pesticide Management Office (PQPMO), responsible for the Sanitary and Phyto-Sanitary (SPS)
laboratory management is responsible for this particular component.
12
8. The earlier agreed activity to develop web-based national pest surveillance database has been
dropped. Instead, some specific lab equipment, study for the organization in the changed scenario of
federalism, and some trainings have been agreed to be included. Under the same component, Department
of Customs has procured a gas-liquid chromatography & mass spectrometry analyzer, and is in the process
of procuring an X-ray radiography examination equipment to support the Customs Lab in Kathmandu.
9. Component B3 – PCO and NTTFC Strengthening. The PCO has been continuing to coordinate
and support the multiple trade related agencies under the Project. Technical advisors, procurement
specialist, and environmental specialist services has been continued to be engaged to support the MoICS,
NTTFC, MoALD, DoTM, NITDB and other project implementation. It has been noted that the PCO is also
supporting to conduct various studies in the trade related activities to support the discussions and decision
process in the Ministry.
10. Component C1 – Narayanghat-Mugling (N-M) Road Improvement Works. The expansion
and improvement works on the 33km of N-M Road has been achieved including the traffic safety measures.
DoR also conducted a month long road safety awareness program in this section focusing on drivers, local
road side residents, women’s group, and the school children. However, considering increasing traffic
volume and vehicle speed in this road, the team recommends to conduct close monitoring and continue to
check and implement the remaining traffic safety measures at earliest.
11. Completed specialized works for slope stabilization measures consisting of rock netting with iron
nails, drainages, and bio engineering were found to be highly effective and showed no further failures at
those locations. The road closures due to slope failures during last monsoon 2018 has significantly reduced
from the year 2017. However, there are still few untreated slope failures are causing short road closures.
Two major road subsidence at km 17 and 26 mainly due to failure of the old earth anchored structures (built
in year 2004-2005) is causing available of single lane road and threats for road closure, if not attended
before monsoon 2019. These road slopes need immediate geotechnical investigation and design of suitable
measures. DOR has started selection process for the appointment of design consultant and agreed to
complete adequate measures before monsoon 2019.
12. Two bridge works contracts namely, contract NCB 4 and NCB 5 progress is reported 52% and
28%, respectively. Jalbire bridge (NCB 5) works progress is very slow against 70% of time elapse.
Regarding the technical issue in end span abutment at right bank and staging works at central span the DOR
agreed to engage the Bridge Expert and finalize the details of construction method including traffic
management and safety. It was also agreed by the DOR will finalize the use of these new bridges being
built parallel to the existing bridges. The alignment, level differences and whether the two parallel bridges
will be used for one-way traffic or not to be finalized based on the assessment of from Bridge expert and
Traffic safety engineer, by end of February 2019. With regards to the remaining 14 bridges the Bank has
already advised that these 14 bridges can be funded under the Bank-financed BIMP II Project.
13. Kathmandu-Naubise-Mugling (KNM) Road preparation. Feasibility, detailed design, and
environmental and social safeguards studies have been completed. Though the consultant informed most
of the comments and suggestions have been incorporated in the final report it is recommended that the
design of bridges and others need to be vetted by DOR team for finalization of design and scope. An
independent ESIA for the proposed two bypass and improvement of existing road is also prepared and
reported to be submitted to the Ministry of Forest and Environment for necessary approval.
14. Government’s request for funding for existing road improvement and one bypass namely, Sisne
khola – Dharke (12 km) received. Considering the project preparation point of view the following were
considered as next actions: (i) Design review and finalization of scope of works in the improvement and
new bypass, (ii) preparing the bid documents with due considerations of the traffic management,
construction safety, operation and maintenance. As such, lessons learned from implementation of N-M road
should be incorporated in the planning and implementation. (iii) retrofitting of ESIA report for these road
13
sections as per new Environmental Social Framework (ESF) requirement, and (iv) preparation of Project
Procurement Strategy for Development (PPSD) as per the New Procurement Framework.
15. Component C2. Development of Inland Container/Clearance Depot in Kathmandu at
Chobhar. Two works contracts for ICD infrastructure and office buildings were awarded in July 2018.
Though mobilized, both contract works were hindered by the local community since August 2018.
Following the cancellation of first foundation laying ceremony on 15th August, 2018 the Bank received a
complaint letter form Chobhar Conservation Committee on 29th August, 2018. The complain mainly states
that the Government needs to (i) fulfill the 5 points agreement between the Himal Cement and Environment
Struggle Committee dated 31 August, 2000, (ii) resolve land issues of then Himal Cement Factory, which
is now transferred to the NITDB through a Cabinet decision, and (iii) pay 414 workers from the Himal
Cement Factory for their salary as per court order and decision of the Ministry of Commerce, Industry and
Supply. In addition, they demand to withdraw the dry port project at Chobhar and suggest implementing
previous agreement to develop this area as a tourist destination.
16. The Bank requested the Ministry to review the issues raised in the grievances and advise the Bank
about its action plan to resolve it. Despite regular follow up, various consultation meetings with the NITDB
and the Ministry, the Bank team has not received any action plan. In the meantime, the foundation stone
laying ceremony by the Prime Minister was held on January 17, 2019 when about 55 agitating locals has
been reported to be detained and released later by the police. The media report suggests the works has
started in the presence of security personnel. The Bank team, during follow up meetings with the Ministry,
highlighted that the grievances of locals need to be resolved as per applicable safeguard policies. On this
the Ministry agreed (i) to form a high level committee and continue this throughout the project period; (ii)
include in the TOR that the grievances to be dealt as per the safeguards requirements for the Project; (iii)
to communicate their latest plan of action for addressing this grievance, including the formation and TOR
of high level committee; and (iv) develop formal mechanism for fortnightly meetings between the Ministry
and the Bank Team to jointly review the progress on this regard.
17. Component C3. Improvement of Bhairahawa and Birgunj ICDs: Bhairahawa ICD pavement
works completed in April 2016. Birgunj ICD shed completed more than 95% . Physically, the shed and
concrete flooring is complete with minor works remain are floor top finish, electrification, and fire hydrant.
The team noted that the Consultant shall issue completion certificate when substantially complete.
Liquidated damages is already applied due to substantial delay. The activity of shifting and improvement
of existing railway tracks at Birgunj ICD shall be cancelled.
14
Annex 4
Environmental and Social Safeguards Findings
The review notes the little or lack of progress in implementing the agreed actions from the last
implementation support review (June 19-24, 2018) and the follow on dedicated review on EHS on October
2018 and the interim safeguards review on December 4-5, 2018.
NM Road and Bridges: The previous review and follow on missions identified a number of environmental,
social and health & safety issues that need to be addressed before the issuance of works completion
certificates to the contractors. Despite the follow ups, there was very little progress to address the issues.
There was no action taken to complete the remaining slope stabilization and protection works in some
sections of the road (e.g., km 17 and km 26) in time for the next monsoon season. The cleanup and site
restoration of all work areas, including the workers’ camps and spoils disposal areas, have not been
completed to date. In some sections of the road, spoils are still lying on the road sides, which need to be
levelled off and compacted or hauled to the disposal areas. There was very little progress made to improve
road safety such as improving road signages and making them more visible and driver-friendly, correcting
faulty designs, fencing of some sections and improving some intersections. There was no progress made on
improving wildlife watering holes, wildlife passes and installation of live fences to avoid wildlife from
straying into the road and collide with vehicles.
There was also little progress on the reinstatement of community structures (public toilets and passenger
sheds) along the NM Road. A total of 20 public structures (6 toilets (large size-3; small size-3) and 14
passenger shelters) were either be rehabilitated or built along the NM road. The status of the remaining
works are as follows:
The Passenger Shed at 2+500 chainage - in progress- near to completion
The Passenger Shed at 6+500- Passenger Shed- in progress- near to completion
The Passenger Shed at 9+000- Passenger Shed- in progress- near to completion
The Passenger Shed at 12+100- Passenger Shed- in Progress- near to completion
Public toilet (Large size) proposed at 6+000- Ramnagar- is not started yet
Public toilet (small size) proposed at 10+400- Jugedi- is not started yet
Public toilet (Large size) proposed at 19+950- Seti Dobhan- is not stared yet
Public toilet (Large size) proposed at 35+400-Mugling- - in Progress-near to completion
Project informed that the contractor agreed to start the remaining works by 10 January 2019 and all works
will be completed by 31 March 2019 before DLP (end of May 2019).
Though project already relocated 44 out of 45 households identified living under threat of landslide along
the NM road alignment providing them compensation and resettlement and rehabilitation assistance as per
agreed RAP, one household (20+000- Seti Dobhan) is still remaining to be relocated due to absence
(currently in abroad) of its owner. Since the project has done some landslide protection works at the site,
the Review Team advice project to assess the risks associated with safety of the household and revise the
RAP accordingly. Similarly, the team advice to accomplish the remaining livelihood enhancement trainings
for vulnerable households among 45 households identified living under threat of landslide.
Khani Khola, Dasdhunga, Jalbire and Mauri Bridges are being constructed along the NM road. Among
them, RAPs were prepared for Mauri and Dasdhunga bridges and Due Diligence Reports (DDRs) were
prepared for Khani Khola and Jalbire bridges during design and preparation of DPR. Currently Only Mauri
Bridge has issues of relocation of houses and all the houses have been relocated paying compensation and
providing R& R assistance as per RAP. The Dasdhunga Bridge site has been shifted to downstream
(originally it was proposed in upstream) within road ROW (25 meters) where relocation of houses is not
15
required. However, about 150- 200 square foot lands along with compound wall and entry gate owned by
Presidency Resort Private Limited will be affected by bridge approach road. It is suggested that project
should establish communication and provide details of the project impacts with the land and asset owner
and search for an amicable solution as per project ESMF. In Jalbire Bridge site, it was observed and also is
reported by project team and contractor's representative that access to temple will be blocked and some
existing structures like statue, basil plant etc. will be affected by the new bridge construction. The Review
Team suggests to relocate the affected temple structures (statue, basil plant etc.) with due consultation and
agreement with temple management committee and priest and provision of stair/ramp to provide universal
access to the devotees. It is also suggested to have provision for access (universal) from east side of the
temple to facilitate devotee to enter into the temple during festive season without disturbing traffic. The
ESHS supervision of the works on 4 NM bridges remains outstanding even when the works have already
advanced and bridge works are almost complete.
There was no progress on preparation of Action Plan for utilization of lands (OPEN SPACE) available
during NM road construction. It was observed that local people have started to occupy the vacant lands
(open space) available as a result of relocation of settlements at risks of landslide and road widening and
upgrading and tipping sites (land available due to piling of tipping materials). In Kali Khola site, the
relocated houses due to landslide risks again occupied the open space at the same landslide risk zone. They
have erected temporary tents to continue their business. The Review team suggested to prepare a plan and
start implementation immediately to utilize the available open space. The project can utilize the open space
in various ways-- as vehicles sickbay, road side plantation, materials storage for emergency use and so on.
The project agreed to prepare and submit a plan by 31 January 2019.
Chobhar ICD: The Environmental Certificate/Permit for the Chobhar ICD had been obtained from the
Ministry of Forest and Environment on January 4, 2019 and the relocation of 18 remaining earthquake
victim households that temporarily occupied the Chobhar ICD site had been either completed or in final
stage except for 1 household that is still in the process of shifting from the site. Works at the Chobhar ICD
was stoppage since August 2018 because of the complaints from the Chobhar Conservation Committee
regarding obligations of Himal Cement that used the land currently used for the Chobhar ICD. The
Committee halted the works until the three grievances are fulfilled by the Government/NITDB, including
(i) fulfilling the 5 points agreed between the Himal cement and Environment struggle committee dated 31st
August 2000; (ii) settlement of land issues acquired for Himal cement, which is now transferred to the
NITDB through Cabinet decision; and (iii) salary compensation of 414 workers from the Himal cement as
per court’s order and decision of the Ministry of Commerce, Industry and Supply. There is little progress
on the resolution of the complaints and inadequate documentation on the process of resolving the
complaints.
A preliminary initial assessment of Chobhar ICD construction contracts showed a substantial risk for
Gender Based Violence (GBV). The Bank team conducted a detail discussion on the GBV risk and why
retrofitting is required with the project team including the consultants and contractors on 4th December
2018. Retrofitting of contracts is required to include necessary mitigation measures to minimize the risks
related GBV.
Sanitary and Phytosanitary Laboratory. Construction of the laboratory is ongoing but there is a need to
improve health and safety and working conditions at the construction site. The details of what needs to be
done had been communicated to the NITDB, PQPMC, CSC and the contractor in December 2018 and
during this review.
ESHS staffing of DOR, NITDB and contractors for Chobhar ICD remains outstanding. In the previous
mission, it was agreed that DOR will hire an EHS Specialist to monitor the implementation of the EMP for
the 4 bridges. Likewise, it was also agreed that NITDB will hire a full Environmental Specialist, a Social
Specialist and a Social Mobilizer to supervise and support the works at the Chobhar ICD and secondarily
at the SPS laboratory. The ICB contractor also was supposed to hire a Social Officer and an Environmental
16
Health & Safety Officer while the NCB contractor will hire an Environmental Health & Safety Officer. All
these staffing commitments have not been delivered to date. Meanwhile the EMAPs and related
environmental and social plans have yet to be finalized and submitted to the Bank before the resumption of
works at the Chobhar ICD.
Safeguards preparation of the KNM Road: The revised ESIA, RAP and VCDP for the proposed KNM
Road were submitted to and reviewed by the Bank and comments were discussed in detail with the DOR
and consultants during the mission. As agreed, the documents need to be retrofitted and finalized following
the new Environmental and Social Framework (ESF) of the Bank that replaces the existing Safeguard
Policies effective October 1, 2018. The terms of reference and timelines to retrofit the documents to the
new ESF have been agreed with DOR.
17
Annex 5: Updated Results Framework and Monitoring
South Asia: Nepal-India Regional Trade and Transport Project Project Development Objective
The proposed Project Development Objective is to decrease transport time and logistics costs for bilateral trade between Nepal and India and transit trade along the Kathmandu-Kolkata Corridor
for the benefit of traders by reducing key infrastructure bottlenecks in Nepal and by supporting the adoption of modern approaches to border management.
.
Project Development Objective Indicators Square brackets show the target values and red are the current values.
Cumulative Values [Targets] Actuals
Remarks Responsibility
for
Indicator Name Core Unit of
Measure Baseline YR1 YR2 YR3 YR4 YR5
YR6-
End Target Frequency
Methodology Data
Collection
Time associated with
meeting regulatory
requirements for import,
export and transit
activities(days)
No Days [ Original: 14]
Revised: 4.84 [4.8]4.8 [4.8]4.8 [4.1]4.5 [3.1]4.5 [2.75] 4.05 [2.4] Annual
Indicator based on Doing
Business data for meeting
document and regulatory
requirements for import. DB
methodology was changed in
2016 so baseline was
recalculated.
PCO/MoICS
Border Crossing time at
Raxaul-Birgunj border
post.
No Days [2.3] [2.3] [2.3] [2.3] [1.5]2.8
[1.5]1.16 [1.5] Semi-
annual.
Indicator will be updated after
survey in early 2018. NITDB
Total time between cargo
offloading at Kolkata to
arrive in Birgunj by road
and rail, and Birgunj to
Kathmandu for trucks
No Days Road: [10]
Rail: [22]
Road:
[10]
Rail:
[22]
Road:
[10]
Rail:
[22]
Road:
[9.0]
Rail:
[20]
Road:
[9.0]
Rail:
[20]
Road:
[8.0]4.27
Rail:
[17.6]3.38
Road: [8.0]
Rail: [17.6]
Semi-
annual
Indicators to be updated after
receipt of report for survey in
September 2018. Value for road
is from Kolkata to Birgunj and is
for the end of the year.
NITDB
4 Baseline was revised to utilize data collected by Doing Business – which is a more sustainable approach to data collection. The target values were then revised accordingly,
consistent with the Doing Business estimates for time to meet documentary requirements and to fulfill procedures at the border. 5 Data from Doing Business report 2019 6 Based on survey of 24 trucks at Birgunj conducted by PCO in December 2018/January 2019. Customs only time for registration of declaration to release of goods is 0.5
days based on data from DoC ASYCUDA World System (58,600 records). 7 New ICP started operating in April 2018. Initially waiting in a queue on the India side was 3.5 days but is now less than half a day. 8 Based on data from CONCOR for 26 rakes in December 2018.
18
Intermediate Results Indicators
Cumulative Values [Targets] Actuals
Data Source/ Responsibility
for
Indicator Name Core Unit of
Measure Baseline YR1 YR2 YR3 YR4 YR5
YR6 - End
Target Frequency Methodology Data Collection
Component 1: Modernize transport and transit arrangements between Nepal and India
Percentage of transit
goods cleared through
electronic CTD
No % 0 0 0 [20]0
[40]0
[50]0 [100] Semi-annual Nepal Customs and
Indian Customs DoC
Component 2: Strengthen Trade-Related Institutional Capacity in Nepal
Growth in Hit Rate for
Trade Portal No % 0 0 0 Base Year [20]30 [30]30 [40] Semi-annual Website statistics
MoICSS
(through TEPC)
Agencies Integrated into
Single Window No Number 0 0 0 [2]0 [3]0 [4]0 [5] Semi-annual
Project Implementation
Progress and Supervision
reports
DoC
Labs Developed or
Improved and Operational No Number 0 0 0 [1]0 [1]0 [1]0 [1] Semi-annual
Project Implementation
Progress and Bank Site
Supervision reports
MoICS
Component 3: Improve Trade-Related Infrastructure
Km of Road Improved Yes Km 0 0 0 [33]0 [33]109 [33]3310 [33] Semi-annual
Supervision Consultant and
Bank Site Supervision
reports
DoR
ICDs/CFSs Built or
Improved No Number 0 0 [1] [2]111 [2]1 [3]2 [3] Semi-annual
Supervision Consultant and
Bank Site Supervision
reports
NITDB
9 Status as at December 21, 2017 10 Status as at January 7, 2019 – road was 100% complete except few additional slope works remain. 11 Works at Bhairahawa were completed in 2016 and shed at Birgunj is substantially completed and in use as of December 2019.
19
Annex 6. Updated Project Estimated Costs
Nepal-India Regional Trade and Transport Project (NIRTTP)
Project Estimated Costs: Original vs. June 2018 Review Re-estimation
Component
Original
Estimated Cost
(US$)
Revised
Estimated Cost
(US$) January
2019
Difference Comment
TOTAL PROJECT 99,000,000 (now: 91,872,000)
96,530,141
now due to exchange rate fluctuation
total amount available is $91.83M,
only
CREDIT 69,000,000
(now: 64,049,000)
71,090,141 credit amount deficit about $7 M,
GRANT 30,000,000 (now: 27, 829,000)
25,590,000
Grant amount surplus $2.24M.
contract for National single window is
yet to happen.
Component A: Modernize transport
and transit arrangements between
Nepal and India
7,000,000
3,300,000
3,700,000
1. Introducing a modern and
effective transit regime including technical assistance in enhancing the
capacity to negotiate trade and transit
treaties.
4,500,000
800,000
3,700,000
Estimated costs are for
studies/activities agreed with the WB during Feb 2017 MTR. New amount
for this sub-component is US$0.8
million.
3. Providing capacity support to the road transport regulatory authority in
Nepal within the Department of
Transport Management to strengthen and modernize the regulation of
international trucking services.
1,500,000
2,500,000
(1,000,000)
Budget increased to US$2.5m to fund
additional road safety activities and
higher than estimated costs for axle load station
i. consulting services for study on axle
load and road transport safety
280,000
(280,000)
ii. Axle load plate
40,000
(40,000)
iii. Bus route survey studies
100,000
(100,000)
iv consulting services for RAIMS
35,000
(35,000)
v. Computer/ servers/ tablets for
RAIMS
300,000
(300,000)
vi. Various trainings / awareness
programs
100,000
(100,000)
vii. Axle load control station within Narayanghat Mugling road section
795,000 (795,000)
viii. Technical advisors
150,000
(150,000)
ix. VFTC study and improvement works
100,000
(100,000)
x. study and pilot implementation on
GPS
600,000
(600,000)
Unallocated 1,000,000
-
1,000,000
This Unallocated amount may be
reallocated to DOTM
Component B: Strengthen Trade-
Related Institutional Capacity in
Nepal
23,000,000
22,290,000 710,000
1. Trade Portal and Single Window
System Development
17,350,000
16,640,000
710,000
a. Nepal Trade Information Portal
1,250,000
540,000
710,000
i. development consultant for the trade portal enhancement
350,000
ii. Furniture
10,000
iii computer
80,000
20
iv. Other services /training
100,000
b. Nepal Single Window System 14,400,000
14,400,000 - This sub-component remains the same
i. consulting service for Quality advisory and management consultant
2,227,500
ii. Development and implementation
12,000,000
iii individual consultants for support
172,500
c. ICT Capability Enhancement for
Nepal Department of Customs 1,700,000
1,700,000 -
Proposed to shift US$450k from DoC
sub-component B1c to B3 for PCO to finance capacity development
(including US$300k of training for
DoC) and inter-agency coordination activities.
2. Improvement of Trade-related
Laboratories
3,000,000
3,000,000 - This sub-component remains the same
i. cost for the design and supervision
consultants
50,000
(50,000)
ii. cost for the building for regional
laboratory
1,610,000
(1,610,000)
iii. lab equipment for the DOC lab
210,000
(210,000)
iv. other studies
40,000
(40,000)
v. lab equipment for the regional lab
500,000
(500,000)
vi.trainings and other services
590,000
(590,000)
3. Institutional strengthening for
Interagency Coordination including
financing of Project Coordination Office (PCO)
2,650,000
2,650,000 -
Proposed to shift US$450k from DoC
sub-component B1c to B3 for PCO to
finance capacity development and inter-agency coordination activities.
Component C: Improve Select
Trade-Related Infrastructure
69,000,000
71,090,141
(2,090,141)
1. Expand and upgrade the
Narayanghat-Mugling road section,
conduct studies and implement road
safety measures for improvement of
entire Birgunj-Kathmandu Corridor
48,000,000
48,000,000 -
US$ 727,700 is kept in Contingencies due to possible need of additional
slope works
a. Works for Narayanghat-Mugling
Road
37,368,000
36,100,000
1,268,000
b. Supervision Consultant 1,000,000
3,730,000
(2,730,000)
Higher amount for Supervision
Consultant due to expanded scope
included feasibility and design studies for KNM road and road safety which
was budgeted under Future Project
Preparation sub-component (g)
c. Social and Environmental Expert 32,000
190,000
(158,000)
Higher amount due to increased
complexity and scope for environmental and social safeguards
d. Supervision Vehicles (3 pickups) 200,000
162,300
37,700
e. Refurbishment of regional office building at Narayanghat
100,000
-
100,000
The works budgeted here were
incorporated into one of the N-M
roads contracts
f. Training 100,000
-
100,000
The budget of 100,000 has been
incorporated into subcomponent B3 which is grant
g. Future Project Preparation and
Implementation including road safety audit and selected road safety works
along Birgunj-Kathmandu Corridor
7,000,000
7,817,700
(817,700)
i. Studies (SESA, ESIA for KNM)
660,000
(660,000)
ii. Geotechnical expert for NM
20,000
(20,000)
21
iii. Bridge supervision for 4 brdiges
100,000
(100,000)
iv. Works for 4 bridges along
Narayanghat-Mugling Road
3,660,000
(3,660,000)
v. Consulting services for slope
stabilization works
160,000
(160,000)
vi. Slope stabilization works contract
D1 and D2 completed
1,500,000
(1,500,000)
vii. Slope stabilization works contract D3 after monsoon 2018
1,717,700
(1,717,700)
-
h. Contingency 2,200,000 0
(2,000,000) To be used for the additional slope stabilization works
2. Build a CFS or ICD in
Kathmandu 15,500,000
19,837,841
(4,337,841)
Need reallocation of US$4.4 million
for Kathmandu ICD
a. Kathmandu ICD Design
Consultant 200,000
138,341
61,659
b. Kathmandu ICD Supervision
Consultant
379,500
(379,500)
c. ICB Works Contract for
Construction of Kathmandu ICD 15,300,000
16,675,000
(1,375,000)
d. NCB Works Contract for Construction of Kathmandu ICD
2,645,000
(2,645,000)
3. Improve the infrastructure at
Birgunj and Bhairahawa ICDs 5,500,000
3,252,300
2,247,700
This savings to be reallocated to Kathmandu ICD/CFS development
a. Extension of Storage Shed at
Birgunj ICD 1,600,000
1,695,000
(95,000)
b. Railway Tracks Modification at
Birgunj ICD 1,100,000
-
1,100,000 activity to be cancelled
c. Pavement works at Bhairahawa ICD
1,600,000
1,020,000
580,000
d. Design/Supervision Consultant
for Bhairahawa and Birgunj Shed 200,000
237,300
(37,300)
e. Railway Tracks
Design/Supervision Engineer 200,000
-
200,000 activity will be cancelled
f. Monitoring System for NITDB 300,000
300,000 -
g. Contingency 500,000
-
500,000
To be allocated to Kathmandu
ICD/CFS
