WB provides Rs 5.94 billion additional loan for road sector development

The World Bank has agreed to provide $55 million (approximately Rs 5.94 billion) additional loan assistance to the government for the implementation of Road Sector Development Project (RSDP), which has been under implementation since 2008.
Joint Secretary and chief of International Economic Cooperation Coordination Division under Finance Ministry Baikuntha Aryal and country manager of World Bank Nepal Takuya Kamata signed the Financing Agreement today in the Finance Ministry on behalf of the Government of Nepal and the World Bank respectively.
The project has three components; the Road and Bridge Development, the Institutional Strengthening and Project Implementation Support and the Resilience Enhancement.
During the project period, 21 different activities will be carried out. The final outcomes of the project include all-season road access, reduced travel time and improved access to economic centre and social services in 31 beneficiary districts, according to a press release issued by the Finance Ministry.
It is stated that the project will upgrade about 700-km of existing dry-season roads and carry out periodic maintenance of about 2,550-km selected strategic roads. The construction of 33 bridges on selected roads of the Strategic Roads Network and the replacement of three earthquake-affected bridges with permanent structures are also the major activities of the project.
The project also consists of technical audit of the civil works and the maintenance of 355 bridges affected by the devastating earthquake last year. The Ministry of Physical Infrastructure and Transport will be the executing agency and the Department of Roads will be responsible for implementation of the project.
The government has expressed its sincere appreciation to the World Bank for this assistance and for continued support in the socio-economic development of Nepal.

WB okays $55m loan for roads, bridges

The World Bank today approved credit worth $55 million (Rs5.91 billion) for Nepal to scale up its Road Sector Development Programme (RSDP) and address post-earthquake reconstruction needs, including the strengthening of the country’s strategic road and bridge network to withstand future seismic and climate vulnerabilities.
The additional financing will top up the World Bank’s support to the Road Sector Development Project which has been ongoing since 2008, it said, "When it began, the project intended to provide residents in 10 beneficiary districts, including the poorest, in the Mid-Western and Far Western regions of Nepal, with all-season road connectivity, reduced travel time and improvements in access to economic centres and social services."
With the additional financing, 25 more districts stand to benefit from the maintenance of earthquake-affected bridges. The original 10 districts will also continue to benefit from road upgrading, slope stabilization and bridge works, the bank said in a press release.
“The RSDP has been the cornerstone of our support to Nepal’s strategic roads network for nearly a decade,” said World Bank country manager for Nepal Takuya Kamata. “While the primary focus has been to develop connectivity in the poorest and remotest regions of the country, the 2015 earthquakes highlighted the need to improve the resilience of key roads and bridges to future natural shocks,” he added.
The RSDP currently serves a population of 2 million in 10 districts in the Mid-Western and Far Western regions of Nepal. The project will serve another 10.2 million Nepalis following the maintenance of earthquake affected bridges in the 25 additional districts.
The bridges that will undergo maintenance in these districts provide connectivity along the Birgunj-Narayanghat-Mugling-Kathmandu corridor which carries the vast majority of freight into and out of Kathmandu and Pokhara. This corridor is among Nepal’s most vital infrastructure assets for supporting economic growth and development.
“Nepal’s hills and mountains are susceptible to extreme precipitation, earthquake and landslides that can result in severed connectivity, loss of life and damage to property,” said task team leader for the project Farhad Ahmed. “Robust construction, better maintenance and improvements in the capacity to respond will help Nepal adapt to unforeseen events.”