Asian Development Bank

The Project will rehabilitate and restore damage caused by the 2008 monsoon floods in the eastern region and far western region. It will enable people to resume their normal lives by restoring access to livelihoods and basic infrastructure. The Project supports increased disaster preparedness and mitigation of damage from future recurrent floods by enhancing the Government's disaster management capacity, and improving the disaster recovery system in cooperation with the Government of India.

The project has three main components: (i) a medium-sized hydropower plant of 140 megawatts (MW) with significant water storage facilities and associated transmission lines to evacuate the generated power; (ii) rural electrification and community development in the project area, and (iii) a reform and restructuring plan for the national utility, the Nepal Electricity Authority (NEA). The project site is in the Seti River in the Tanahu district, about 150 kilometers (km) west of Kathmandu.

The Study will provide consulting services for each of two major engineering design specifications: (i) civil works on geological risk ssessments, and (ii) facilities on technical and hydrological risk assessments. It is essential for hydropower development to clarify the project's uncertain factors and to incorporate preventive actions and risk mitigation measures in the project design, prior to financing decisions and implementation. To minimize project risks, the Study will focus on geological and hydrological assessments through rock tests and hydraulic model simulation to establish engineering design parameters.

The facility will assist the government's effort to ensure that critically important road and air transport projects are implemented efficiently by systematically advancing the preparatory activities. The facility will identify and prepare high-priority projects for potential funding by the government and or by the Asian Development Bank (ADB) or other development partners in the country. This preparation will include feasibility studies, safeguard due diligence, detail engineering design, bidding documents, and procurement assistance for advance contracting (if appropriate). This will contribute significantly to (i) improving the implementation performance of the ensuing projects by reducing the period between project concept and loan approval and the commencement of improvement works, (ii) helping to achieve the intended outcomes efficiently, and (iii) realizing the projects- impacts and benefits in a timely manner. The facility will also provide capacity development support to help establish an enabling environment, supporting the government's goal of developing transport infrastructure under public-private partnership (PPP). The facility will prepare transport projects that will contribute to improving connectivity and accessibility throughout the country. The facility is also relevant to ADB's sector strategy in support of the government's goal of achieving regionally balanced economic growth and reduced social inequalities.

The project will provide the population in the municipalities of Dharan, Janakpur, Nepalgunj, and Siddharthanagar with better access to municipal infrastructure and services in a socially inclusive manner. In accordance with the priorities of each municipality, integrated urban environmental improvements, including drainage systems, solid waste management (SWM) facilities, and urban roads, will be implemented in Janakpur, Nepalgunj, and Siddharthanagar municipalities. A water supply development subproject will be implemented in Dharan municipality. The project will also undertake community development programs (CDPs), focusing primarily on poverty pockets in the municipalities and communities that may not benefit directly from major infrastructure improvement subprojects. Gender equality and social inclusion (GESI) will be mainstreamed in all subprojects in the municipalities, and the capacity to address GESI in the Ministry of Physical Planning and Works (MPPW) will be strengthened by establishing an appropriate institutional structure and mechanisms for GESI mainstreaming.