nepal-india regional trade and transport project (ida...

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Nepal-India Regional Trade and Transport Project

(IDA Credit 5273-NP and IDA Grant H863-NP)

Implementation Review and Support Mission

September 9-14, 2014

Aide Memoire

INTRODUCTION

1. A World Bank (WB) team1 led by Diep Nguyen-van Houtte (Senior Transport Specialist,

Task Team Leader) held an implementation review and support mission for the Nepal-India

Regional Trade and Transport Project (NIRTTP, the Project). The overall mission objective was

to: (i) assess and review implementation progress of all components/activities, procurement and

disbursement; and (ii) discuss and agree on remedial actions to improve progress in order to meet

the overall development objectives and project implementation schedule.

2. The WB team greatly appreciates the cooperation and courtesies extended by the

Government of Nepal (GoN) during the mission. The team would like to thank staff and officials

of the Ministry of Commerce and Supplies (MoCS) and its agencies the Nepal Intermodal

Transport Development Board (NITDB), Trade and Export Promotion Center (TEPC), the

Ministry of Physical Infrastructure and Transport (MoPIT), the Ministry of Finance (MoF), the

Department of Customs (DoC), members of the National Trade and Transport Facilitation

Committee (NTTFC), and the Technical Committee for National Single Window and Trade

Portal. A list of persons met is included in Annex 1.

3. The mission held discussions regarding the implementation of the NIRTTP to review

progress of all project components and to update the project implementation plan. The mission

met the National Trade and Transport Facilitation Committee and the Technical Working Group

for developing National Single Window and Trade Portal.

4. This Aide Memoire (AM) summarizes the discussions that took place during the

Implementation Review and Support Mission. The AM was discussed at a wrap up meeting

chaired by the Acting Secretary of MoCS, Mr. Deepak Subedi on September 12, 2014. As

agreed, this AM will be classified as a public document in accordance with the World Bank’s

Access to Information Policy.

1The team comprised: Diep Nguyen-Van Houtte (Sr. Transport Specialist/Task Leader), Deepak Shrestha (Sr.

Transport Specialist), Ramesh Siva (Lead Information Officer), Charles Kunaka (Senior Trade Specialist), Leanne

Farrell (Environmental Specialist), Drona Raj Ghimire (Environmental Specialist), Mridula Singh (Senior Social

Specialist), Yogesh Bom Malla (Financial Management Specialist), Shambhu Uprety (Procurement Specialist) ,

Purushottam Ojha (Trade Facilitation Consultant) and Bibash Shrestha (Team Assistant).

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Key Project Data

Project Data Project Performance Ratings

Board Approval: June 28, 2013

Effectiveness Date: September 10, 2013

Original Closing Date: December 31, 2019

MTR Date: October 1, 2016 (planned)

Original Cr/Gr. Amt: US$99 million

Total Amount Disbursed

(As of August 31, 2014): US$8.18 million (8.3

%)

Summary Ratings: Last Now

Achievement of PDO:

Implementation Progress:

Project Management

Procurement:

Financial Management:

Safeguards:

M&E:

Counterpart Funding:

S

MS

MS

MS

MS

MS

S

S

MS

MU

MU

MU

MS

MS

S

MU

HS=Highly Satisfactory; S=Satisfactory; MS= Moderately Satisfactory; MU= Moderately

Unsatisfactory; U=Unsatisfactory; HU=Highly Unsatisfactory; NA=Not Applicable; NR=Not Rated

PROJECT DEVELOPMENT OBJECTIVE

5. The Project Development Objective (PDO) 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. The project components

are: (i) Modernize transport and transit arrangements between Nepal and India; (ii) Strengthen

Trade-Related Institutional Capacity in Nepal, including the development of Nepal National

Single Window (NNSW) and Nepal Trade Portal (NTP) and improvement of Trade-Related

Laboratories; and (iii) Improve Select Trade-Related Infrastructure, which entails expanding and

upgrading the Narayanghat-Mugling (N-M) road section, building a Container Freight Station in

Kathmandu, and upgrading the Inland Container Depots at Birgunj and Bhairahawa.

6. Progress towards meeting the Project Development Objectives (PDO) is rated as

“Moderately Satisfactory”. The on-average one year delay in implementation of key activities is

causing some concern about the timely achievement of the PDO.

CURRENT IMPLEMENTATION STATUS

7. The overall Implementation Progress is rated as “Moderately Unsatisfactory” based on

the reasons explained in the following paragraphs.

8. Implementation of the Governance and Peace Action Plan (GPAP). The Public

Information disclosure system has been established by both MoCS and Department of Roads

(DoR) including dissemination through local workshops, information campaign and participatory

community forums (see Annex 2, items 12-21 under in the Governance and Peace Action Plan

(GPAP) section). All safeguards documents had been disclosed in English before negotiations of

the Project in May 2013. The safeguards documents for the N-M road have been translated into

Nepali and disclosed on the DoR website. The Environmental and Social Management

Framework (ESMF) for the MoCS-managed components was disclosed in Nepali at the

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MOCS website. However, it was subsequently removed from the website due to a technical

error. MOCS has since reposted it. The Environmental Management Plans (EMPs) for the

works at Bhairahawa, Birgunj and Kathmandu Inland Clearance Depots (ICDs) have not

been disclosed in either English or Nepali. MoCS was expected to do this by mid-March 2014

but it still has not been completed. It has been agreed that this will soon be completed.

9. Component A1: Technical Assistance (TA) to Modernize Bilateral and Regional

Transit Regime. There has been little progress in this activity, with few ideas for capacity

development programs and the kind of support needed to strengthen Nepal’s capacity to

negotiate international trade treaties, deal with Non-Tariff Measures (NTMs), strengthen corridor

development, supply chain and logistics frameworks, monitor corridor and logistics performance

and promote exports. The PCO will work with MoCS to propose a detailed work program for

this component and submit for approval of the NTTFC.

10. Study on Transshipment. The Governments of India and Nepal agreed to implement a

functional transshipment modality for cargo passing through Indian ports. The modality of the

transshipment is to be prepared in mutual consultation of concerned authorities of the

Government of Nepal (GoN) and the Government of India (GoI). The NITDB has already

designated the dry ports in Nepal as ports of destination in the shipment of cargo. It was agreed

during the February 2014 supervision mission that the Transshipment Study to be commissioned

under Component A1 would have two aspects: (a) a review of provisions in Indian Customs law

and regulations covering transshipment of cargo to Nepal, including insurance and transportation

arrangements, and development of proposals for reform; and, (b) an assessment of operational

and commercial practices by the shipping industry that may encourage or discourage the

transshipment of cargo to Nepalese ICDs/dry ports. An international consultant has been

recruited to conduct the study, which is expected to be completed by November, 2014. The Bank

team requested to see the inception report and progress reports prepared by the consultant.

The PCO agreed to request the consultant for these reports and forward to the Bank as early

as possible.

11. Study Tours. A study tour organized for 14 participants (7 participants to Kolkata Port

and 7 participants to Mumbai Port in India) was conducted in connection with the above

Transshipment Study. As a No Objection Letter was requested from the Bank only at the last

moment after activities were already organized, the mission discussed that in future, the Bank

would need to agree to the Terms of References (ToRs), format, and members of the study tour

well in advance for any planning and expenditure related to the study tour. Nominations for

members joining the study tour should only be for officials whose responsibilities are

relevant to the learning objectives of the study tour.

12. Component A2: Electronic Data Interchange between Nepal and India. The key

activity in this component is to automate/computerize the Customs Transit Document (CTD),

including the harmonization of the Unique User Importer-Exporter ID code to be used by both

the Indian and Nepali systems. Government has allocated its own budget to DoC for developing

the code. DoC has already prepared directives for this purpose and has agreed to carry out a

stakeholder’s meeting and prepare a detailed work plan including any support needed. DoC

and MoCS representatives agreed to contact the International Finance Corporation (IFC)

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team and initiate the process for IFC assistance in this component. IFC had offered US$2

million in support for this component for both India and Nepal. However, IFC has now

confirmed that there is no formal agreement with India and therefore the scope/value of the

IFC component will be significantly reduced and support will only be provided to Nepal. IFC

will work with DoC and MoCS over the coming months to clarify the scope/monetary value of

support needed with detailed work plan and clear responsibilities/accountability especially for

the automation of the CTD and electronic data interchange between Nepal and India.

13. Component A3: Support to the Road Transport Regulatory Authority. The support

activities to the Department of Transport Management (DoTM) consists of consultant services

and works for managing axle load control and road safety from the transport management

perspective. As a first step, DoTM has established a separate sub-project office and hired a

national consultant as a Technical Advisor. In the review period, DoTM has initiated various

actions toward generating awareness on road safety including a workshop among DoTM staff,

preparation and distribution of road safety awareness materials including pamphlets, signs and

videos. Regarding the procurement for consulting services for the study on axle load control and

road safety, the evaluation process is near completion and contract award is targeted by end-

September 2014. The proposal of DoTM for developing a web-based Road Accident Information

Management System (RAIMS) and piloting in Kathmandu Valley and along the Kathmandu-

Birgunj Corridor together with the Traffic Police has been principally agreed by the Bank team.

DoTM agreed to carry out further detailed consultations with relevant stakeholders, especially to

ensure commitment for use of the proposed system by the Traffic Police. A clear role and

responsibility of the Traffic Police and DoTM, necessary training, and sustainability of funding

for regular operation and maintenance of such a system are also to be considered while preparing

the detailed work plan for developing and implementation of the system. DoTM agreed to

conduct such consultation workshop with the stakeholders and submit the final proposal and

work plan to initiate the implementation.

14. Component B1: National Single Window and Trade Information Portal (NSW/TIP).

During the mission, meetings were held with the Director General of Customs and the Project

Team in Customs, which is also the sub-PCO for the Project. The Project Team was formed by

DoC to specifically ensure coordination of all reform and modernization efforts within the DoC

including those associated with the NSW component of the Project. DoC briefed the mission

team of the activities they have undertaken with other stakeholder agencies to follow-up on the

priority actions outlined in the earlier work by the Bank’s NSW support consultants (KGH-

Arctiquator). The status of these recommendations and the actions agreed upon are attached as

Annex 4. The mission was pleased to note the progress on the recommendations and follow-up

activities of the earlier NSW technical assistance program.

15. DoC further briefed the mission on the current status of proposed ADB-financed

ASYCUDA World implementation. The Request for Proposal (RFP) for the implementation was

released to UNCTAD on September 1, 2014. UNCTAD has up to 45 days to respond. DoC

remains confident that they will have a signed contract with UNCTAD by early November 2014

and expect that UNCTAD will be able to mobilize and have their consultants working on the

ground by early January 2015 at the latest.

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16. The mission noted that during the previous mission in February 2014 and subsequent

follow-up discussions with DoC, UNCTAD and ADB, it was assured that UNCTAD would be

on-the ground and working on the implementation of ASYCUDA World by September 2014.

The new schedule as described by DoC already reflects a slippage of four months assuming

contract negotiations and signing are carried out expeditiously and UNCTAD is able to mobilize

their consultant team by January 2015. The mission also noted that per the Management Letter

of April 15, 2014 from the Bank transmitting the revised Aide Memoire from the February 2014

Mission, it would be critical to have a fully operational ASYCUDA World implementation on or

about September 2015 to ensure enough time remaining in the project to complete the NSW

implementation and of the potential for cancellation of this component should this milestone be

missed. The current slippage of four months and the potential for further slippages during the

actual ASYCUDA World implementation is of significant concern to the mission. The mission

recommended that DoC spare no effort to speed up the contracting process with UNCTAD and

that DoC encourage UNCTAD to mobilize and start work as quickly as possible.

17. Selection of ICT Advisor (Procurement). The selection process is underway and the

Evaluation Report has been submitted to the Bank for review. The Bank’s comments on the

Evaluation Report have been sent to the PCO. The mission urges the PCO to review the Bank’s

comments, update the Evaluation Report and resubmit to the Bank as quickly as possible. The

mission also discussed that should this procurement slip too much then it would no longer be

necessary as the Quality Assurance/Supervision Consultant (para 18) will take on this role.

18. Selection of Quality Assurance/Supervision Consultants for NSW and TIP. The

Expressions of Interest for this assignment were received on August 19, 2014. The evaluation

committee expects to complete the short-listing process and submit the Short-List and RFP to

the Bank for No Objection by September 24, 2014.

19. Trade Information Portal (TIP). The mission met with TEPC and DoC on the TIP.

Little progress has been made on procuring the TIP implementation consultants as this is

dependent on the selection of the ICT Adviser (Procurement) or QA/Supervision Consultant,

since their expertise will be needed to develop the bid documents. The mission encouraged

TEPC and DoC to immediately begin the procurement process by issuing the Request for

Expressions of Interest (REOI) immediately in parallel with the remaining steps in the selection

process of the ICT Adviser (Procurement) or QA/Supervision Consultant. TEPC and DoC

agreed that a REOI would be published by September 22, 2014 for this assignment.

20. The mission informed TEPC and DoC of the recent release of the World Bank’s Trade

Information Portal Software Toolkit and its possible applicability for Nepal’s TIP. A

demonstration of the capabilities of the toolkit will be arranged for TEPC and DoC in the near

future.

21. Component B2 – Improvement of Trade-Related Laboratories. The project will

support the development and piloting of two trade-related laboratories which encompass Sanitary

and Phyto-sanitary (SPS), and Customs certification functions, one in Kathmandu Valley and

one at a border post. Following the survey of Nepal’s existing Customs and SPS laboratories by

Kathmandu School of Management (KUSOM) with DFID support, the mission agreed that next

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steps would be for the Government to prioritize the exports that should be promoted through

consultation with public and private-sector stakeholders, and then for the Bank to send an

international expert on laboratory certification to review assessments done to date and to

propose an action plan for moving forward including helping DoC, MoCS, and Ministry of

Agricultural Development (MoAD) to draft ToRs for a consultant to begin the design of the pilot

laboratories.

22. Component B3 – PCO and NTTFC Strengthening. Additional staff for the PCO hired

since the last supervision mission include a Trade Facilitation and Logistics Technical Adviser

(September 2014) and a Project Manager (September 2014). The Bank reviewed the

procurement of these two (post-review) positions, and sent comments to the PCO about

procurement practices that need to be reviewed and corrected if necessary in future recruitments.

The Bank team reminded the PCO that on-call Environmental and Social specialists remain to be

recruited especially when the work on the Kathmandu ICD is ready to commence.

23. Now that the PCO is fully staffed, the mission reminded the PCO that each consultant

should draft a one-year work plan for his/her post laying out planned activities with clear

timelines, outputs and performance measures, and this work plan should be approved by the

Project Director and NTTFC. The Project Director and NTTFC should review performance at

least every six months and take correction courses of action as required. The mission also

reminded the PCO and NTTFC that a discussion should be held to clarify the roles and

responsibilities of the Project Director, Project Coordinator, Project Manager, Trade

Facilitation and Logistics Adviser among other PCO staff.

24. Given the complexity of this large multi-sector project and the delays experienced so far,

the mission reiterated to MoCS and the NTTFC that a full-time Project Director should be

appointed/hired to manage this project, rather than only part-time as the current practice..

The mission raised concern about the lack of a full-time Project Director for a multi-sectoral

project which is adversely impacting the implementation progress. The mission urges the

Government to give high priority to deputing a full time qualified Project Director with project

management experience as early as possible.

25. NTMs Adviser. The PCO issued an REOI to hire a national NTM Tracking Analyst but

did not receive interest from any qualified applicants. The mission recommended that an

International Adviser would be more appropriate for this post, and that this Adviser would

work with a World Bank expert on NTMs to implement a capacity development program for

Government officials and private sector stakeholders on how to identify, classify NTMs, store

and share the information, and seek ways to address them. The World Bank expert is expected

to arrive after the hiring of the International Adviser.

26. Component C1 – Narayanghat-Mugling Road Improvement Works and Studies for

Birgunj – Kathmandu Corridor. It is noted that the previous Project Coordinator has been

replaced since May 30, 2014. Substantial delay is noted in the award of contracts for the

Narayanghat-Mugling road improvement works (single package with three slices) though the

bids were received on April 4, 2014. The Bank did not provide No Objection to the Bid

Evaluation Report provided by DoR in July 2014 noting anomalies such as accepting bids from

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bidders who did not provide a total bid price at the time of bid opening. A complaint from one of

the bidders during the bid evaluation process also revealed suspected leakage of confidential

information relating to the bidding process. The Bank team acknowledged receipt of DoR’s

request to cancel the present procurement process and to re-bid the works packages. For the

purpose of re-bidding, DoR agreed to expedite the process for reviewing/revising the cost

estimates, contract packaging, bid documents, and initiating the re-bidding process

expeditiously so that the contracts will be awarded by February, 2015.

27. DoR informed that the Project Manager’s Office (PMO) has updated the Resettlement

Action Plan (RAP) with support from the Project Management Consultant team and initiated its

implementation. The PMO has also initiated the necessary process to obtain forest clearances for

necessary tree cuttings.

28. Corridor Studies. Expressions of Interest for conducting feasibility and detailed designs

for the Mugling-Naubise-Kathmandu (Thankot) road improvement works, road safety audit of

the Birgunj- -Kathmandu Corridor, and the supervision of the N-M road improvement works has

been received and presently in evaluation process. The draft ToR has been prepared and is

presently under discussion. DoR agreed to complete the shortlisting, and prepare and submit

the draft Request for Proposal to the Bank by September 16, 2014.

29. The draft ToR for the Birgunj-Kathmandu Corridor Sustainability Study has been

developed and discussed. DoR agreed to prepare the REOI and initiate the procurement

process immediately.

30. Since the Birgunj-Pathlaiya section is a key section along the Birgunj-Kathmandu

Corridor which handles all traffic to the East and West of Nepal that enters from Raxaul, it was

agreed to initiate the process for conducting detailed designs and required environmental and

social studies for improving this section. Considering an opportunity to utilize performance-

based contracting which allocates design, implementation, and maintenance responsibility to

the bidders, DoR agreed to further explore this mode of contracting/implementation. The

Bank team agreed to send an international expert to initiate discussion and planning for such

performance-based contracts. DoR will also plan to procure the consultant to draft the

independent detailed Environmental Impact Assessment (EIA) and RAP for this road section

about six months after the procurement of the Birgunj-Kathmandu Corridor Sustainability

Study.

31. The mission also agreed that detailed designs for the 18 bridges along N-M road

(currently financed by the Bank’s Road Sector Development Project – RSDP) would be

expedited to the extent possible for completion before June 2015 and financing options

considered as these bridges affect the performance of the Birgunj-Kathmandu Corridor which

will eventually impact the Project Development Objective.

32. Operational Costs for DoR. The Project informed that no operational funds have been

provided for this component by the Government. As agreed during the design stage, Government

should provide operational costs to DoR for this component. Operational costs are needed mainly

for supervision and monitoring by the Project Office and Coordination Office.

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33. Component C2. Development of Inland Container/Clearance Depot (ICD) in

Kathmandu. There has not been much change in the status of this component since the previous

mission. GoN has been trying to acquire the land at the Chovar site (former Himal Cement

factory) for the construction of the ICD in Kathmandu. However, even though the Government

owns the land title at the Chovar site and the budget speech of 14/15 clearly allocated the land to

the development of the ICD, its acquisition will require a liquidation process which can take a

long time. In the meantime GoN was also exploring another option, which is for the Government

to transfer land to NITDB while starting the liquidation process. The Bank strongly urged MoCS

and the PCO team to work with MoF to take all necessary measures to acquire the land with

free/clear title, including setting up a Committee with relevant stakeholders to specific address

this issue, proactively solve problems and monitor progress on a bi-weekly basis. The mission

reminded the NTTFC, MoCS and the PCO that if land for the proposed ICD is not acquired by

September 2015, the Bank will be forced to cancel this important and transformational

component as there would be insufficient time left to design and build the ICD. To expedite

activities as much as possible, the Bank agreed to NITDB’s proposal to hire a consultant

immediately after the GoN makes the land procurement decision, to initiate a topographical

survey of the proposed area at Chovar and other possible sites to map the available land area

and topography and to prepare a conceptual master plan. This preliminary survey and study is

expected to help in scoping the detailed design services.

34. Component C3. Improvement of Bhairahawa and Birgunj ICDs. The contract for

rehabilitation works of the pavement at Bhairahawa ICD has been signed and the contractor is on

site. The contractor has conducted the joint verification survey, established the site office and

laboratory, and the design is currently being reviewed by the Supervision Consultant. However,

physical works are yet to start mainly due to the monsoon season and some issues related to the

availability of construction materials, especially due to Government’s environmental regulatory

provisions on quarrying of sand and aggregate construction materials. It was agreed to finalize

the design review, update the work schedule based on required resources, check the laboratory

requirements, and expedite activities for the Bhairahawa pavement works. Now that the monsoon

season has concluded, NITDB agreed to conduct a kick-off/launch meeting with the contractor

and Supervision Consultant, including a field visit to Bhairahawa with the Bank team before

end-September, 2014.

35. The Supervision Consultant for Bhairahawa ICD pavement works and Birgunj Shed

Extension works has been appointed, and has started mobilization activities and the design of the

Birgunj Shed Extension works. The Bank team advised the NITDB Project Team to expedite the

preparation of design and bid documents for the Birgunj Shed Extension works so that the

contract could be signed by January, 2015. Regarding the railway track improvement works

within Birgunj ICD, the NITDB is recommended to expedite the design activities in close

coordination with Indian Railways. NITDB plans to visit the relevant Indian Railways offices to

coordinate for necessary design and implementation of proposed railway track improvement

works and to look for options to procure services for the design and implementation works.

Thus, for Component C3, the next steps are:

Conduct a kick-off/launch meeting with the contractor and Supervision Consultant,

including a field visit to Bhairahawa with the Bank team before end-September, 2014

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Initiate works on the Bhairahawa ICD pavement by end September, 2014

Complete the design of Birgunj Shed Extension works by early October, 2014

Procure the contract for Birgunj Shed Extension works by January 2015

Coordinate with Indian Railways and finalize the process for procuring services for the

design and implementation of railway track improvement works at Birgunj

36. Corridor Monitoring System. The mission discussed with NITDB the development of

the Corridor Monitoring and Evaluation Data Management System (CMEDMS). The Bank

fielded a mission to Nepal in June 2014 during which there were discussions on the technical

aspects of the system. NITDB then proposed a two-step process starting with a quick (4-6 week)

initiating consultancy to essentially: a) document what data are available in the various

counterparts especially in India; b) What data are needed and not available; c) willingness of

entities (especially in India) to share the data; and d) what Memorandum of Understandings

(MOUs), Protocols or Agreements need to be negotiated and signed and with whom to provide

data. The second phase would be the design and building of the system. The first step was

conceived as a way to lay the ground for a sustainable system, not one based on ad-hoc

arrangements. While this approach was much more involved than had originally been envisaged,

the mission agreed to it as it helps improve the design and the cost in terms of resources and time

was minimal. NITDB had since published a REOI for the first stage work. EOIs have been

received and evaluated and the RFP has been issued on September 15, 2014. It is expected that

procurement for the second stage works will commence in January 2015.

37. Results Monitoring and Evaluation (M&E). A Satisfactory rating of Monitoring and

Evaluation (M&E) is maintained as the PCO has been able to submit consolidated progress

reports to date. The overall monitoring and evaluation for the Project is managed by the PCO.

Each implementing agency or sub-PCO will monitor its own work plan and indicators and report

to the PCO for consolidation. The newly-recruited PCO Project Manager will work with sub-

Project Coordinators to develop detailed work plans and monitoring plans. A template has been

developed and is included in Annex 7. NITDB is directly responsible for two of the three PDO

indicators. The first results indicators were determined using an elaborate survey conducted by

KUSOM. However, the surveys have been financed under a contract between KUSOM and

DfID. The mission urged NITDB to consider engaging a relevant agency or KUSOM as soon as

possible to discuss how NITDB plans to continue gathering the data. This was critical as data is

expected to be gathered semi-annually and included in the monitoring reports. Based on the

available data the PDO indicators are shown below.

PDO Indicator Process Baseline Year 1

Target

Year 1

Actual

Time associated with meeting

regulatory requirements for import,

export and transit activities (days)2

Import 14 14 14

Export 14 14 14

Border Crossing time at Raxaul- Import 2.3 2.3

2 From Doing Business Trading Across Borders (2014)

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Birgunj border post.3 Export

Total time between cargo

offloading at Kolkata to arrive in

Birgunj by road and rail

Road 10 10

Rail 22 22

Total time Birgunj to Kathmandu

for trucks (days) 4

Road

38. Procurement. PCO/MoCS: Procurement Performance Rating for the Project has been

downgraded to “Moderately Unsatisfactory”. The Bank team reviewed the implementation

status of the procurement plan. Though the procurement process is moving, there has been delays

due to the overly complex decision-making process which could be simplified. To normalize the

procurement process with those adopted in all public entities, it is recommended that the Bid

Evaluation Committee (BEC) evaluates the bids/proposals and forwards its report with

recommendation to the Project Director. Then the Project Director makes the procurement

decision as per the prevailing rules and regulations of the country. The Project Coordination

Committee’s role is mainly to provide overall coordination and guidance to the Project. Day-to-

day procurement activities should be taken by the Procurement Specialist/Consultant, Bid

Evaluation Committee and Project Director with necessary advice from relevant sub-PCO

technical units and experts. For evaluating bids and proposals, the Bid Evaluation Committee

should comprise the Procurement Specialist/Consultant and relevant technical experts

(consultants, experts from other GoN agencies, etc.). Going forward, the PCO is required to

obtain technical clearance from the Bank in the procurement of consultants/experts to ensure

quality procurement including adequacy of the experts' qualifications and experience for the

assignment, even if the procurement activity falls under the post-review category in the approved

procurement plan.

39. Based on the Bank's observations on the PCO's current capacity to manage procurement,

the PCO has to make improvements in the points mentioned above to be retained on the current

risk rating of "SUBSTANTIAL". The Bank procurement team is currently reassessing the

Project’s procurement capacity and risk rating.

40. It is also recommended that the PCO organize a joint procurement and FM orientation

program as soon as possible for all project officials involved in procurement and FM processing,

reviewing and decision making to enhance their capacity and facilitate project implementation.

The PCO had planned to conduct -the orientation/training workshop on September 26 2014 and

the World Bank team will provide resource persons for the program.

41. DoR: The bidding of works contracts of Narayanghat - Mugling Road has suffered

delays as discussed above in paragraph 26. DoR has expressed its commitment to avoid such

practices in the future by making necessary corrective arrangements including awareness raising

programs among the bidding community.

3 KUSOM survey data for September – October 2013

4 KUSOM survey data for September – October 2013

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42. Financial Management. MoCS PCO- The budget of NPR 238.06 million is approved

for FY2014/15. The annual work program is approved and expenditures of about NPR 1.39

million were incurred until September 11, 2014 in FY2014/15. The review team noted that the

Government counterpart fund is sufficient and previous agreed actions have been complied with.

Expenditures of NPR 38.37 million were incurred out of an approved budget of NPR 76.78

million in FY2013/14.

43. There are no overdue IPRs. The first trimester IPR of FY2014/15 is due on December 31,

2014 and the audited project account of FY2013/14 is due on January 15, 2015. The project has

submitted the unaudited project account of FY2013/14.

44. DoR PCO: The budget of NPR 1,192.67 million is approved for FY2014/15 and so far

there is no expenditure as the annual work program is not yet approved. The review team noted

that previous agreed actions have been complied with. However, Government counterpart funds

have not been provided to DoR for Component C1. Expenditures of NPR 22.23 million were

incurred out of approved budget of NPR 304.25 million in FY2013/14. The expenditures related

to the IDA part (GoN Reimbursable) have been reimbursed to the Government Treasury.

45. The third trimester IPR of FY2013/14 is now overdue. The first trimester IPR of

FY2014/15 is due on December 31, 2014; the unaudited project account of FY2013/14 is due on

October 15, 2014; and the audited project account of FY2013/14 is due on January 15, 2015.

46. Based on information provided on the budget for FY2014/15, the review team noted that

the counterpart funding of GoN is “Moderately Unsatisfactory”. Based on the completion of the

agreed actions and the progress made on financial management, the performance rating for

financial management is “Moderately Satisfactory”. Agreed Actions include:

i. Submission of the third trimester IPR of FY2013/14 (by DoR PCO) by September 12,

2014

ii. Conduct FM/Procurement training of Sub PCOs (by MoCS PCO) by October 31, 2014

47. Environmental Safeguards: MoCS/PCO: For the ICD and laboratory subprojects,

given their current status it was agreed with MoCS that a full-time environmental specialist is not

yet needed; therefore, the NITDB’s Technical Adviser is currently taking responsibility for

ensuring EMP/ESMF compliance at the Bhairahawa ICD (the only subproject getting to the

construction phase), and appropriate incorporation of safeguard measures into Birgunj ICD

designs and construction plans. The environmental safeguards actions linked to the works at the

ICDs include:

Following up on and ensuring disclosure of all safeguards docs, including summaries in

Nepali (both locally and on the MoCS website), and forwarding links/records to the WB;

Reviewing the final designs and bid docs for Birgunj ICD to make sure they reflect all the

EMP requirements and commitments;

Developing and publicizing site-specific grievance mechanisms / ways for local

communities to get in touch with MoCS/NITDB about construction impacts, etc., for any

ICD works, and ensuring grievances get documented and addressed;

Making sure contractors know the EMP requirements;

12

Managing the Supervision Consultant – e.g. reviewing their monitoring reports, making

sure they are doing their job and commenting on environmental compliance aspects,

following up on any non-compliance issues and recommendations;

Making occasional site visits during construction to visually inspect environmental

management aspects and have discussions with contractors and supervision consultants

about any challenges or issues of non-compliance (recommend at least once per quarter);

Preparing progress summaries on ESMF implementation for WB missions;

Making sure that, as the next ICD and laboratory projects go forward, environmental

screening is carried out and full assessments (or audits, in the case of existing laboratory

facilities) are done if required;

48. As described in paragraph 8, the ESMF for the MoCS- managed components has been

disclosed in Nepali, however by technical error it was removed and recently it has been

uploaded again; and the EMPs for the works at Bhairahawa, and Birgunj ICDs have not been

disclosed in either English or Nepali. MoCS was expected to do this by mid-March 2014 but

still has not. It has been agreed that this will be completed urgently.

49. DoR Staffing: Pre-construction EMP-related activities for the N-M road are meanwhile

currently being handled by the Environmental Safeguards Expert consultant in DoR’s Geo-

Environment and Social Unit (GESU) hired under the World Bank Road Sector Development

Project (RSDP), as well as the Project in Charge for N-M road who is personally managing all

government liaison tasks related to forest clearances and utility/public infrastructure shifting.

The project plans to retain this Expert (through GESU) full-time once the RSDP project closes

(expected in June 2015). The mission cautiously agreed to this staffing arrangement, but

recommended that staffing needs be reviewed prior to contractor mobilization, when the

workload will increase substantially -- especially since the RSDP workload will likely also

remain high for a period of overlap, and two new major consultant contracts with environmental

components (for Kathmandu-Naubise-Mugling road upgrading, and Strategic ESA /

Sustainability Study) will also be getting underway. If needed, DoR should bring on an

additional environmental consultant on an intermittent basis to backstop the Environmental

Safeguards Expert.

50. N-M road EMP implementation: DoR is currently working to secure forest clearances

for tree cutting and necessary permissions for shifting of utilities and public infrastructure,

including conducting consultations with relevant stakeholders and user groups to coordinate cuts

in services during the shifting and to finalize the new alignments / locations for affected

infrastructure. The mission emphasized the need to document all such consultation events. DoR

further agreed to start defining the afforestation program and hold discussions with Department

of Forests and other relevant partners / stakeholders, so that the plan can start being implemented

by the time tree felling begins. DoR will further review the EMP and compile a comprehensive

pre-construction stage work plan and schedule by October 15, 2014 to ensure all pre-

construction activities are on track.

51. Strategic ESA / Sustainability Study: For the Birgunj-Kathmandu Corridor Strategic

Environmental and Social Assessment (ESA) / Sustainability Study, a field visit and

consultations with key stakeholders was carried out by a joint World Bank - DoR team including

13

environmental and social specialists in May 2014. The World Bank developed initial draft ToRs

for the study, which were shared and discussed with DoR during the mission. As a next step,

DoR will provide comments on the draft ToR to the World Bank by September 30, 2014. DoR

will also propose specific measures or activities to advance capacity on biodiversity

management in the roads sector in their revisions to the ToR.

52. Summary of key agreed actions by DOR relating to environmental safeguards include:

To immediately share with the Bank the records from consultations with water user

groups and water supply division on shifting of water supply lines;

To ensure ongoing documentation of all consultation events related to utility shifting and

any other pre-construction activities;

To internally discuss and agree to approach for afforestation program, and define detailed

program and budget with input from Department of Forests, other potential partners and

stakeholders, by April 2015 (in advance of tree felling);

To develop a work plan for all pre-construction EMP activities and share with the Bank

by October 15, 2014;

To review staffing adequacy on environmental management prior to contractor

mobilization on N-M road, and to hire additional consultant on intermittent basis to

backstop Environmental Safeguards Expert if required;

To re-issue contract for Environmental Safeguards Expert under NIRTTP project funds

by July 1, 2015, when the existing contract through RSDP expires;

To provide comments on draft ToR for Strategic ESA / Sustainability Study by

September 30, 2014; and,

To propose specific measures or activities to advance capacity on biodiversity

management in the roads sector in their revisions to the Strategic ESA / Sustainability

Study ToR.

53. Social Safeguards. The focus of the mission was to review the progress made towards

implementation of the Resettlement Action Plan (RAP) on N-M road including documentation of

consultations and grievance management and quarterly progress reports. Additionally, the

comprehensive draft ToR for feasibility and detailed preparation of K-N-M road and the

proposed Strategic Environmental and Social Assessment for Birgunj-Kathmandu Corridor were

discussed. Social safeguards is rated Satisfactory for the following reasons:

a. Implementation of RAP – DoR has made substantial progress to resettle the affected

households. During the course of verification and design modification, the number of

affected households affected by the bridge and road works has reduced from 74 to 45. A

representative Village Development Consultative Committee and the Compensation

Determination Committee were set up to finalize the compensation and rehabilitation

package for affected households. All 45 affected households have received the first

installments including 5 households affected by bridge works (see Annex 5 for details).

Remaining activities to ensure resettlement and rehabilitation will be completed before

the mobilization of contractors.

14

b. Documentation – Discussions with the project staff indicate that consultations are held

regularly for which minutes are prepared. However, grievances are mostly verbal and

field staff address them. The progress report consolidates data which needs to be

supported with brief write-ups on the process of implementation. It was agreed that a log

book will be maintained to document each complaint received including the nature of the

complaint and actions taken to resolve it. DoR will submit a comprehensive report on

consultations and grievance management to be included in the progress report which will

be submitted by October 31, 2014.

c. Corridor Studies – Detailed discussions were held on the ToR for the preparation of

Kathmandu-Naubise-Mugling road to explain the level of social assessment required at

different stages of project preparation. It was agreed that the feasibility will include a

rapid assessment of impact area, consultation, resettlement and rehabilitation framework,

institutional assessment, broad mitigation measures, monitoring indicators and cost

implication. These will be detailed out during the design phase and a Resettlement Action

Plan (RAP) will be prepared. For the strategic study, a detailed social assessment is not

required. It was advised that the Consultant should use the various studies carried out for

the entire Kathmandu-Birgunj Corridor which include feasibility and detailed RAPs, and

others to establish the scale of impact. It was agreed that the ToR will be accordingly

revised.

d. Staff – Currently the project is dependent on the Social Specialist hired for the Bank-

supported RSDP project to coordinate and monitor the implementation progress.

However, there will be a vacancy with RSDP coming to closure by June 2015. Although

positions for Social and Environment Specialists have been created in the Geo-

Environment and Social Unit (GESU), these have yet to be adequately staffed.

Recognizing the increase in responsibility including reviewing project documents for new

sections, preparing progress reports, etc., it was agreed that the project will mobilize a

Social Specialist (consultant) on July 1, 2015.

e. Citizen’s Feedback: It is encouraging to note that DoR has created a web-based

grievance management system for the sector as a whole. The Governance Peace and

Action plan agreed upon during negotiations includes provisions for setting up a citizen’s

feedback mechanism. The current arrangement on grievance mechanism might dissuade

citizens to give feedback. It is suggested that DoR could perhaps explore the possibility

of creating an additional tab on the department’s website to facilitate engagement with

citizens.

15

NEXT STEPS

54. The PCO and implementation agencies agreed to expedite the implementation of

activities listed in the Project Implementation Plan (Annex 2). The following key next steps were

agreed:

Component A1

a. The PCO needs to work with MoCS and the NTTFC to propose a work program for this

component.

b. The Bank team requested to see the inception report and progress reports prepared by the

Transshipment Study consultant.

Component A2

c. DoC to work with MoCS, CBEC, and GoI to expedite the computerization of the

Customs Transit Document, and to engage with IFC on their offered support. The World

Bank Group Board will be notified by the mid-term review of the new reduced amount of

support from the IFC.

Component A3

d. DoTM to complete the procurement of the consulting services for the axle load study and

transport safety study.

e. DoTM to complete consultations and develop the work plan for the development and

piloting of the Road Accident Information Management System (RAIMS) in Kathmandu

Valley and along the Kathmandu-Birgunj Corridor.

Component B1

f. PCO/DoC/TEPC to complete the procurement for the QA and Supervision Consultant for

SW/TIP.

g. PCO/DoC/TEPC to initiate the procurement of the Consultant to build the Trade

Information Portal.

Component B2

h. DoC and Ministry of Agricultural Development to lead the consultation process with

MoCS, trade-related agencies and private sector stakeholders to prioritize products for

export promotion. The Bank will send an international expert on laboratory certification

to review assessments done to date and to propose an action plan for moving forward.

Component B3

i. PCO to ensure that hired consultants draft a one-year work plan for his/her post laying

out planned activities with clear timelines, outputs and performance measures.

j. PCO and NTTFC should hold a discussion to clarify the roles and responsibilities of the

Project Director, Project Coordinator, Project Manager, Trade Facilitation and Logistics

Adviser among other PCO staff.

k. MoCS to consider appointing/hiring a full-time Project Director to manage this project.

16

Component C1

l. DoR to accelerate the re-bidding process for N-M road improvement works.

m. DoR to complete shortlisting and issue RFP for the consulting services including CSC for

N-M road, feasibility and detailed designs for the Mugling-Naubise-Kathmandu road

improvement and road safety audit of the Birgunj-Kathmandu Corridor.

n. DoR to finalize the TOR and initiate the procurement of the consulting services to

conduct the Environmental Sustainability Study for the Birgunj-Kathmandu Corridor.

o. DoR to plan and explore the use of performance-based contracts for improving and

maintaining Birgunj- Pathlaiya road.

p. DoR to accelerate the detailed designs for works on the 18 bridges along N-M road.

Component C2

q. MoCS/PCO to proactively follow-up with MoF and other relevant stakeholders on land

acquisition for Kathmandu ICD as a matter of urgency.

r. NITDB to hire a consultant to conduct a survey and prepare a topographical map and

conceptual design for the Kathmandu ICD.

Component C3

s. NITDB to complete the design of Birgunj Shed Extension works by end September 2014

and procure the contractor for the works by January 2015.

t. NITDB to complete procurement of consulting services to develop the CMEDMS

system.

Procurement

u. PCO to organize a joint procurement and FM orientation program as soon as possible (by

end-September, 2014) and notify the Bank of the date.

Financial Management

v. DoR to send the third trimester IPR of FY2013/14 (due August 31, 2014) by September

12, 2014; submit the first trimester IPR of FY2014/15 by December 31, 2014; the

unaudited project account of FY2013/14 by October 15, 2014; and the audited project

account of FY2013/14 by January 15, 2015.

Safeguards

w. MoCS to disclose the ESMF for the MoCS-managed components in Nepali; and the

EMPs for the works at Bhairahawa, Birgunj and Kathmandu ICDs in English and Nepali

immediately.

x. DoR will review the EMP and compile a comprehensive pre-construction stage work plan

and schedule by October 15, 2014 to ensure all pre-construction activities are on track.

y. DoR will provide comments on the draft ToR for the Corridor Sustainability Study to the

World Bank by September 30, 2014, including proposing specific measures or activities

to advance capacity on biodiversity management in the roads sector, and incorporating

comments discussed on the social safeguards front.

z. DoR to complete remaining activities related to ensure resettlement and rehabilitation

along N-M road before the mobilization of contractors.

17

55. Next Mission : The next implementation support and review mission is planned for

February/March, 2015 although interim missions for sub-projects may be arranged before the

next main mission.

List of Annexes

1. List of persons met

2. Updated Project Implementation Plan (PIP)

3. Results Framework and Monitoring matrix

4. Follow up on key actions for NSW/TIP

5. Progress of RAP/Social Safeguards Implementation Plan

6. Environmental Safeguards Action Plan

7. Proposed template for sub-project reporting/monitoring

18

ANNEX 1: LIST OF PEOPLE MET

National Planning Commission

1. Mr. Swarnim Wagle, Member, National Planning Commission

Ministry of Finance (MoF)

2. Mr. Surya Prasad Acharya, Director General, Department of Customs

3. Mr. Ramesh Sharma Paudyal, IT Director, Customs Reform and Modernization Section,

Department of Customs

Ministry of Commerce and Supplies (MoCS)

4. Mr. Deepak Subedi, Acting Secretary, MoCS

5. Ms. Chandra Kala Paudel, Joint Secretary, MoCS

6. Mr. Jib Raj Koirala, Joint Secretary, MoCS

7. Mr. Toya Nath Gyawali, Joint Secretary, MoCS

8. Mr. Mahesh Timsina, Under-Secretary/Project Coordinator, PCO

9. Mr. Navaraj Dhakal, Under-Secretary, MoCS

10. Mr. Keshab Prasad Prasai, Under-Secretary/Accounts Officer, PCO

11. Mr. Chandra Kishor Mishra, Procurement Specialist, PCO

12. Mr. Moti Bahadur Shrees, Section Officer, PCO

13. Mr. Ishwari Prasad Ghimire, Executive Director, Nepal Trade & Export Promotion Centre

14. Mr. Surendra Nath Gongal, Deputy Director, Nepal Trade & Export Promotion Centre

15. Mr. Hemendra Shahi, Acting Executive Director, NITDB

16. Mr. Sunil Poudyal, Technical Advisor, NITDB

17. Mr. Rabindra Pokharel, Engineer NITDB

18. Mr. Murari Prasad Gautam, Project Manager, PCO

19. Mr. Himal Thapa, Trade Facilitation and Logistics Adviser, PCO

Ministry of Physical Infrastructure and Transport (MoPIT)

20. Mr. Devendra Karki, Director General, DoR

21. Mr. Sanjaya Kumar Shrestha, Deputy Director General, DoR

22. Mr. Keshab Sharma, Deputy Director General, DoR

23. Mr. Ajay Kumar Mull, Sr. Divisional Engineer, DoR

24. Mr. Rupak Rajbhandari, Sr. Divisional Engineer, DoR

25. Mr. Shiva Prasad Nepal, Unit Chief, Geo-Environment & Social Unit, DoR

26. Mr. Shyam bahadur Khand, Project Manager, N-M Road, DOR

27. Ms. Meera Shrestha, Environmental specialist, GESU, DOR

28. Ms. Rama Shrestha, Social specialist, GESU, DOR

29. Mr. Kashi Raj Dahal, Director General, DoTM

30. Mr. Sharad Adhikary, Director, DoTM

31. Mr. Padam Bahadur Shahi, Technical Adviser, DoTM

Ministry of Agricultural Development

32. Dr. Pradhyumna Raj Pandey, Sr. Agriculture Economist, MoAD

33. Mr. Arun GC, Agri-Extension Officer, MoAD

Federation of Nepalese Chambers of Commerce and Industry (FNCCI)

34. Mr. Rajan Sharma, Executive Member/Co-Chairperson

19

ANNEX 2:

Nepal India Regional Trade and Transport Project – Project Implementation Plan (PIP)

Updated September 11, 2014

# Responsible Agency

Activity Date Due/Comments Project Status

General Conditions

1. MoCS through Ministry of Law and Justice

Legal Opinion for the Project Immediately Done

2. MoCS Letter from PD to WB informing of achievement of Legal Covenants 3-7 in order to declare the Project effective

Immediately Done

Legal Covenants 3. PCO (MOCS) Project Operations Manual detailing the roles and responsibilities of the

PCO and of each implementing agency July 15, 2013 Done

4. PCO (MOCS) Mandate the NTTFC with terms of reference to be responsible for providing overall leadership and policy guidance on key policies and implementation decisions regarding the Project.

July 15, 2013 Done

5. PCO (MOCS) Assign a dedicated Project Coordinator, and maintain such Project Coordinators for a period of at least two years

July 15, 2013 Done

6. DoC Formalize (i) the terms of reference for the Technical Committee for the National Single Window and Trade Portal; (ii) the terms of reference for the Project Coordinator for the National Single Window; and (iii) the terms of reference for the Project Coordinator for the National Trade Portal, all to be implemented under Part B1 of the Project.

July 15, 2013 Done

7. PCO (MOCS) (i) Furnish to the Bank an annual work program and budget for FY2013/14 which includes this Project in the Red Book, and (ii) assign two separate budget codes for the Project, one for the PCO and the other for the DoR.

August 15. 2013 Done

Disbursement Procedures

8. PCO (MOCS) and DoR

Authorized Signatures: A letter should be furnished to the World Bank providing the name(s) and specimen signature(s) of the official(s) authorized to sign Applications (Disbursement Guidelines, subsection 3.1)

Upon effectiveness Done


Create Designated Accounts (DA), two segregated Accounts Upon effectiveness Done


Created account in Client Connection/ activate secure ID tokens Upon effectiveness Done

20


Provide completed and signed applications for withdrawal, together with supporting documents (Year 1 disbursements expected to be at least USD2,359,594 but hoping for USD12.5 million)

Upon effectiveness Done

Governance and Peace Action Plan 12. PCO (MOCS) and

DoR Information Disclosure : A proactive public disclosure system will be established (as discussed in Information disclosure section)

Immediately when needed

Done


Information Disclosure: Information will be disseminated through local workshops, group discussions, information campaigns, and participatory community forums.

Periodically Done


Information Disclosure: Consultations and participatory planning with project-affected people, CSOs, and other stakeholders during implementation.

Periodically Ongoing


Information Disclosure: Establishment of Local Consultative Forum (LCF) at VDC to ensure ongoing dissemination of project information to affected households, and structure, regulate and strengthen communication between roadside communities.

Immediately Ongoing


Complaint Handling: Develop grievance-redress mechanisms so citizens and CSOs can lodge complaints about technical, fiduciary and environmental/social impacts. DoR is in the process of developing this system for all of its projects and the entire Department.

Immediately Ongoing


Complaint Handling: Establish Local Consultative Forum (LCF) at VDC to involve affected communities and local government structures in social impact management, grievance resolution and monitoring.

Immediately Ongoing


Monitoring and Citizen Feedback: Proactive disclosure of information and social accountability mechanisms to solicit stakeholder and user feedback will be implemented.

Immediately Ongoing

19. DoR Monitoring and Citizen Feedback: Use third-party monitoring for the Narayanghat-Mugling road

By Year 2 To be done during implementation

20. PCO (MOCS) and DoC

Monitoring and Citizen Feedback: Seek feedback from Nepal Business Forum on progress on National Single Window and Trade Portal.

Periodically Business community represented in NTTFC


Procurement: Use e-bidding for receiving bids from contractors, which has shown to significantly increase in competition and has proved to be an effective measure to reducing collusion and coercion among bidders.

All bids Begun from National Competitive Bidding of pavement restoration of Bhairahawa ICD

21

Procurement 22. PCO (MOCS) Send General Procurement Notice (GPN) for entire Project to WB for No

Objection Aug 2, 2013 Done


Publish GPN on MoCS/DoR websites, UN/DG Market and local newspaper August 7, 2013 Done

24. PCO (MOCS) Send updated PP to WB for No Objection August 15, 2013 Done

25. PCO (MOCS) Procurement Training – Find the next session and organize to attend August 26, 2013 Done

Component A1–TA to Modernize Bilateral Transit Regime 26. PCO (MOCS) Selection of Trade Facilitation and Logistics Adviser

- Draft TORs - REOI (to WB for N.O. if prior review) then publish on website/local

paper - Selection and contract award (to WB for N.O. if prior review)

TORs to be submitted to WB by September 5, 2013

Done National Consultant hired August 2014

27. PCO (MOCS) Selection of NTM Tracking Analyst - Draft TORs - REOI then publish on website/local paper - Selection and contract award

TORs to be submitted to WB by September 30, 2013 –Budget will be

revisited

Reissue REOI for International

Consultant/Adviser

28. PCO (MOCS) Study on Transshipment - Draft TORs - REOI (to WB for N.O. if prior review) then publish on website/local


TORs to be submitted to WB by September 15,

2013

Contract signed and the expert visited both Kolkata and

Mumbai Ports. Draft report expected November 2014

Component A2–Electronic Data Interchange between Nepal and India 29. DoC Manage activities to ensure achievement of Electronic Data Interchange and

automation of the Customs Transit Document (CTD) between Nepal and India (through IFC financing and management)

To be determined DoC/MoCS to interact with IFC asap to develop work plan

and start implementation

Component A3 – Capacity Development for DoTM Transport Management 30. DoTM thru PCO Selection of Technical Adviser



TORs to be submitted to WB by August 14, 2013

Done

31. DoTM thru PCO Selection of Project Assistant - Draft TORs

TORs to be submitted to WB by August 14, 2013

Done

22

- REOI then publish on website/local paper - Selection and contract award

32. DoTM thru PCO Study for road safety and axle load control - Draft TORs (completed) - REOI (to WB for N.O. if prior review) then publish on website/local


Draft RFP sent to WB by November 1, 2013 (after

Technical Advisor is in place)

Evaluation of proposals to be completed by

September 19, 2014

33. DoTM thru PCO Study for road safety from transport management perspective - Draft TORs (completed) - REOI (to WB for N.O. if prior review) then publish on website/local


Draft RFP sent to WB by November 1, 2013 (after

Technical Advisor is in place)

Cancelled – combined with study

in Activity #32

Component B1 – Single Window and Trade Portal 34. DoC thru PCO Selection of IT Procurement Adviser



Individual consultancies changed to firm contract for all specialists as Trade Portal/Single Window as well as DoC ICT capacity strengthening Program Management and Quality Assurance Support (international firm w/ local firm World Bank to propose draft terms of reference by August 21, 2014

Re-evaluation to be completed and contract signed by end-September, 2014

35. DoC thru PCO Selection of Project Assistant (Local) - Draft TORs - REOI then publish on website/local paper - Selection and contract award

Done

36. TEPC thru PCO Selection of Quality Assurance Advisory Firm for Supervision - Draft TORs - REOI (to WB for N.O. if prior review) then publish on website/local


EoI evaluation to be completed by September 19, 2014

37. TEPC thru PCO Selection of Project Assistant (Local) - Draft TORs - REOI then publish on website/local paper - Selection and contract award

To be decided

38. DoC thru PCO Selection of Various IT Resources, Equipment, etc… - Draft TORs - REOI (to WB for N.O. if prior review) then publish on website/local


To be initiated after consultation with Selected QA firm/ ICT Adviser

39. DoC and TEPC Selection of Firm to Design and Build Trade Portal REOI to be published REOI to be published

23

thru PCO - Draft Bid Docs - REOI to WB for N.O. then publish on website/local paper - Shortlist and RFP to WB for N.O. - RFP to shortlisted firms - Selection to WB for N.O. - Contract award

September 1, 2013 after WB N.O. Bidding documents to be

submitted on September 15

September 17, 2014

40. DoC and TEPC thru PCO

Selection of Firm to Design and Build Single Window - Draft Bid Docs - REOI to WB for N.O. then publish on website/local paper - Shortlist and RFP to WB for N.O. - RFP to shortlisted firms - Selection to WB for N.O. - Contract award

REOI to be published February 2014 after WB

N.O.

To be initiated after consultation with

Selected QA firm/ ICT Adviser and after

operationalization of ASYCUDA World

Component B2 – Trade-Related Laboratories 41. DoC thru PCO Selection of Technical Adviser



Assess mid-year To be determined

42. PCO (MOCS) with DFTQC and DoC

Initial survey Detailed study and Work plan on moving forward with trade-related laboratories including change management workshops/sessions



DFID to contract Kusom for initial survey work

WB expert to arrive in November, 2014 to

help develop work plan for moving

forward

Component B3 – PCO and NTTFC Strengthening 43. PCO (MOCS) PCO Office Lease - Rental Immediately Done

44. PCO (MOCS) PCO Furniture Purchase Immediately Done

45. PCO (MOCS) PCO Equipment Purchase Immediately Done

46. PCO (MOCS) PCO Vehicles Purchase Immediately Done

47. PCO (MOCS) Selection of Technical Adviser/Project Manager - Draft TORs - REOI (to WB for N.O. if prior review) then publish on website/local


TORs to be sent to WB by August 31, 2013

Selected and joined

PCO on Sep. 03, 2014

24

48. PCO (MOCS) Selection of Full-time Procurement Specialist - Draft TORs - REOI (to WB for N.O. if prior review) then publish on website/local



Done

49. PCO (MOCS) Selection of Part-time/Intermittent Procurement Specialist - Draft TORs - REOI (to WB for N.O. if prior review) then publish on website/local



Selection done, and will be contracted as and when necessary on intermittent basis

50. PCO (MOCS) Selection of Finance Assistant - Draft TORs - REOI (to WB for N.O. if prior review) then publish on website/local



Done

51. PCO (MOCS) Selection of Environmental Safeguards Specialist - Draft TORs - REOI (to WB for N.O. if prior review) then publish on website/local



To be done after finalizing land for Kathmandu ICD

52. PCO (MOCS) Selection of Social Safeguards Specialist - Draft TORs - REOI (to WB for N.O. if prior review) then publish on website/local



To be done after finalizing land for Kathmandu ICD

53. PCO (MOCS) Selection of Various Secretarial/Support posts - Draft TORs - REOI then publish on website/local paper - Selection and contract award


Some support staff have been selected

54. PCO (MOCS) Selection of Monitoring and Evaluation (M&E) Specialist - Draft TORs - REOI (to WB for N.O. if prior review) then publish on website/local


TBD

To be done as and when necessary on

intermittent basis

55. PCO (MOCS) Selection of NTTFC Secretariat Post 1 (Trade Facilitation Adviser) - Draft TORs - REOI (to WB for N.O. if prior review) then publish on website/local

Assess the need at a later date. TORs by December

2013

To be determined if needed

25


56. PCO (MOCS) Selection of NTTFC Secretariat Post 2 (Marketing and Administrative/Mgt skills)

- Draft TORs - REOI then publish on website/local paper - Selection and contract award

Assess the need at a later date. TORs by December

2013

To be done as and when

necessary

Component C1 – NM Road and Future Project Preparation 57. DoR Update PP to WB for No Objection August 6, 2013 PP to be updated and

sent to WB by September 19, 2014

58. DoR N-M Road and site office refurbishment - Bidding docs to WB for N.O. - Bid Invitation - Public Opening of Bids - Bid Evaluation Report and Award Recommendation to WB for N.O. - Contract signing

August 6, 2013 September 6, 2013 October 21, 2013 December 5, 2013 February 9, 2013

Re-bidding will be initiated asap with

goal of having contracts signed by

February 2015

59. DoR Procurement of 3 pickup trucks to WB for N.O. – follow PP August 6, 2013 Done

60. DoR Mugling Office Refurbishment – follow PP Part of N-M road works contract in #58

61. DoR Birgunj-Kathmandu Sustainability Study including biodiversity and road safety aspects

REOI to be issued by end-September

62. DoR Consulting services for feasibility and detail design of improvement works in Mugling – Naubise – Kathmandu road section, road safety audit for Kathmandu-Birgunj Corridor, and supervision of Narayanghat- Mugling road works

DoR agreed to complete the

shortlisting, and prepare and submit the draft RFP to the

Bank by end-September, 2014

63. DoR Design studies for 18 bridges along N-M road In process through consultants financed

by RSDP, to be completed by June

2015

64. DoR Bridge rehabilitation pilot (for one or two of 18 bridges along N-M road) to be decided based on activity 63

26

Component C2 – CFS/ICD in Kathmandu 65. NITDB/MoCS Selection of Technical Adviser Done

66. NITDB/MoCS Selection of Supervision Consultant for Bhairahawa and Birgunj Works Done

67. NITDB/MoCS Land allocation for CFS/ICD in Kathmandu TBD Overdue. Not yet finalized

68. NITDB/MoCS Selection of Design and Supervision Consultant for Kathmandu CFS/ICD To be done when land is allocated

69. NITDB/MoCS Design studies for CFS/ICD in Kathmandu (follow PP) Soon after site allocation Budget allocated for topographical survey

in fiscal year 2014/15. PD working to find the proposed

land

70. NITDB/MoCS Environmental and social safeguards studies for CFS/ICD in Kathmandu - Study completed - Public disclosure - Public consultation

August 31, 2013

To be done after land is allocated

71. NITDB/MoCS Construction of CFS/ICD in Kathmandu(follow PP) - Bidding docs to WB for N.O. - Bid Invitation - Public Opening of Bids - Bid Evaluation Report and Award Recommendation to WB for N.O. - Contract signing

To be done after land is allocated and

designs completed

Component C3 – Birgunj and Bhairahawa ICD Improvement 72. NITDB/MoCS Bhairahawa ICD Pavement Rehabilitation

- Bidding docs to WB for N.O. - Bid Invitation - Public Opening of Bids - Bid Evaluation Report and Award Recommendation to WB for N.O. - Contract signing

August 14, 2013 September 6, 2013 October 21, 2013 November 29, 2013 January 10, 2013

Contract under

execution Conduct a kick-

off/launch meeting with the contractor

and Supervision Consultant, including

a field visit to Bhairahawa with the

Bank team before end-September, 2014 Initiate works on the

27

Bhairahawa ICD pavement by end September, 2014

73. NITDB/MoCS Birgunj ICD Shed Extension - Finalize bidding docs - Bidding docs to WB for N.O. - Bid Invitation - Public Opening of Bids - Bid Evaluation Report and Award Recommendation to WB for N.O. - Contract signing

Engineering Design and Bidding documents to be submitted to Bank after the employment of Supervision Consultant

Conceptual designs completed and

detailed designs to be completed by end-

September, 2014. Works contractor to

be recruited by January, 2015

74. NITDB/MoCS Corridor Monitoring System specifications software and skills - Draft TORs/specifications - REOI (to WB for N.O. if prior review) then publish on website/local


Three separate procurement contracts – 1) procurement of goods – NCB (September 30), 2) survey work (August 31),

3) Managed service, competitive selection

(August 31).

NOL to ToR of "Data capture Frame work

for Kolkata-Kathmandu corridor

monitoring" obtained and EoIs' evaluation

completed.

75. NITDB/MoCS/PCO Semi-annual data collection and reporting of Project Development indicators

NITDB to discuss corridor data

collection with Prof. Biswo Paudel

PCO Project Manager

to commence in September 2014

28

Annex 3: 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

Cumulative Target Values

Data Source/ Responsibi

lity for

Indicator Name Core Unit of

Measure

Baselin

e 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 14 14 14 12 9 8 7 Annual DoC PCO/MoC

S

Border Crossing time

at Raxaul-Birgunj

border post.

No Days 2.3 2.3 2.3 2.3 1.5

1.5 1.5 Semi-

annual

Customized

Corridor

Monitoring

System and

survey data

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

Rail:

17.6

Road: 8.0

Rail: 17.6

Semi-

annual

Customized

Corridor

Monitoring

System and

survey data

NITDB

29

Intermediate Results Indicators

Cumulative Target Values

Data Source/ Responsibili

ty 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

40

50 100 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 40 Semi-annual

Website

statistics

MoCS

(through

TEPC)

Agencies Integrated into

Single Window No Number 0 0 0 2 3 4 5 Semi-annual

Project

Implementation

Progress and

Supervision

reports

DoC

Labs Developed or

Improved and Operational No Number 0 0 0 1 1 1 1 Semi-annual

Project

Implementation

Progress and

Bank Site

Supervision

reports

MoCS

Component 3: Improve Trade-Related Infrastructure

Km of Road Improved Yes Km 0 0 0 33 33 33 33 Semi-annual

Supervision

Consultant and

Bank Site

Supervision

reports

DoR

ICDs/CFSs Built or

Improved No Number 0 0 1 2 2 3 3 Semi-annual

Supervision

Consultant and

Bank Site

Supervision

reports

NITDB

30

Annex 4: Recommendations from NSW-TIP Consultants (KGH Arctiquator) Recommendations from NSW-TIP Consultants (KGH Arctiquator)

Sub-committee Decision Rec# Decision Activity

TC2-3 Operational Model (Business

Model) – Recommended to

establish a government owned

special purpose vehicle to

operate the NNSW

The identification of a task team to establish the framework

and terms of reference for the government owned special

purpose vehicle.

Completed. Automation & Simplification of

Trade and Transport (Single Window) Sub-

Committee headed by the DG, Customs has

been created for the purpose. The committe

comprises of DoC, Ministry of Commerce and

Supplies, Ministry of Agriculture, Nepal Rastra

Bank, Department of Transport Management,

Trade and Export Promotion Center, Nepal

Intermodal Transport Development Committee,

FNCCI and Nepal Freight Forwarders

Association

TC3-1 UN Recommendation 33 on

Single Window implementation

models discusses three types of

SW models - which one is best

for Nepal

Options to be discussed:

1. Single Authority, one authority performs all tasks on behalf

of other departments

2. Integrated model, all SW processes are integrated and

performed inside the central NNSW

3. Interfaced Model, processing is distributed and performed

by responsible departments

4. Mixed - for some departments, the integrated model is

feasible and for others, the interfaced model is preferred

Option 4 is strongly recommended

Sub-committee proposes to implement mixed

model as per the recommendation taking into

consideration that various govt. agencies like

IRD, OCR etc. already have their own systems,

but various other agencies have different IT

capabilities.In case of DoC, E-

Customs(ASYCUDA World) will interface

with NNSW.

31

TC3-9 Implementation of Tariff

Management - Integrated and

online Tariff, including non-

tariff measures for other, non-

Customs related procedures.

Where and how should this be

implemented in relation to e-

Customs Master Plan

- Coordination with e-Customs Master Plan

-Options to be discussed:

1. Implement a master tariff within the Customs domain as

part of ASYCUDA, administered by DoC and synchronized

with online tariff for NNSW and NNTIP

2. Implement a new integrated tariff as part of the NNSW

domain, administered by DoC and synchronized with/re-used

by Customs backend and NNTIP

3. Implement a new integrated tariff as part of Customs,

synchronized with NNSW and NNTIP

Option 2 is recommended as ICT infrastructure should be

consolidated for e-Customs, NNSW and NNTIP, and to

ensure the multi-agency perspective to tariff

administration.

Option 1 is recommended by the sub-

committee. Since tariff is primary component of

customs clearance process, it is advisable that

master tariff is implemented as part of

ASYCUDA, administered by DoC and

synchronized with online tariff for NNSW and

NNTIP. This will maintain the integrity of the

master Tariff database and avoid redundancies.

TC3-11 A Ceretificate Authority (CA) is

essential for the implementation

of digital signatures. How

should this be implemented in

the perspective of NNSW

- Establishment of CA within NNSW (DoC)

- Implementation of administrative procedures and

organization to manage digital signatures

- Technical implementation

- Options to be discussed:

1. Follow-up and address Government of Nepal to prioritize

this area in the e-Government programme

2. Implement a CA in the scope of CA until a national CA is

set up

Option 2 is recommended in order to quickly support an

operational NNSW

Option 1 is recommended by the sub-committee

as implementing a CA is not practically feasible

for any other agency.

TC3-12 Electronic payments will

facilitate efficient NNSW

processes and necessary steps to

implement this in Nepal should

be taken by the banking

community.

1. Ensure the banking community sets up an e-Payment

Gateway to address and facilitate electronic payments

2. Facilitate Internet banking payments

Option 1 is recommended

As recommended in option 1, ensure the

banking community sets up an e-Payment

Gateway to address and facilitate electronic

payments.

32

TC3-14 Deployment of NNSW, NNTIP

and other services on shared or

separate ICT infrastructure

Options to be discussed:

1. Deploy, operate and maintain NNSW and NNTIP ICT-

services on separate ICT-infrastructure

2. Use share ICT-infrastructure for NNSW, NNTIP and related

services in a national datacentre

Option 2 is recommended

Use share ICT-infrastructure for NNSW,

NNTIP and related services in a national

datacentre as recommened. In the case of e-

Customs, since it is being implemented in an

interfaced model, it will be in a separate

infrastructure

Streamlining of SAD processing

at the Customs Check Posts

Internal Customs business process reengineering Internal Customs business process

reengineering will be carried out during

ASYCUDA World Implementation

Centralized and harmonized

Customs Tariff Code system for

the implementation of NNSW

Initiate work item in NTTFP Committee to harmonize and

centralise distribute the Tariff Code system for customs

clearance and permit/license processing activities

Initiate work item in NTTFP Committee to

harmonize and centralise distribute the Tariff

Code system for customs clearance and

permit/license processing activities

Data harmonization for NNSW Initiate work item in NTTFP Committee to identify

documents/information to be process by NNSW and from DH

working group for on-going maintenance of NNSW Data Set

Initiate work item in NTTFP Committee to

identify documents/information to be process by

NNSW and from DH working group for on-

going maintenance of NNSW Data Set

TC4A–

GT-3

Non-Tariff measures resolution

– will non-tariff measures be

mapped to Goods Nomenclature

codes?

Mapping of non-tariff measures to HS codes is essential for

the operation of NNSW

Mapping of non-tariff measures to HS codes is

essential for the operation of NNSW

TC5-1 Agree on one single overall

NNSWTP Implementation Plan

This decision trigger all other activities Request for the agreed Implementation Plan

from NTTFC/MOCS

TC5-2 Implement a Communication

Strategy and Plan

Communication with stakeholders, NNSWTP implementation

will commence

- Regular consultations (Focal Point meeting)

should be carried on

- Regular meeting of Automation and

Simplification of Trade and Transport (Single

Window) Sub-committee

- Recommend to develop the terms of reference

for communication strategic plan as soon as

possible by the sub-committee

33

TC5-3 Appoint a Communication Focal

Point

Cooperation with stakeholders for the management, planning,

delivery of communication content and messages, orientation

package, tailored communication packages

- Project Management Office (to be formed)

from DoC will be the Communication Focal

Point.

- Focal points are being collected from the

Stakeholders

TC5-17 Implement a 24 months

NNSWTP Capacity Building

programme to run in parallel

with the technical

implementation

Structured capacity building can commence addressing human

capacities, routines, processes and organisation.

To be carried out according to the

recommendation during implementation. QA

advisory firm to recommend the Capacity

Building Programme

TC5-18 Develop and conduct a one day

information programme to all

staff in involved agencies on the

Nepal National Single Window

and National Trade Portal based

on the orientation Package

presented in this report

One day NNSWTP information activities addressing all

stakeholders.


recommendation. Planned for 2nd trimester

TC5-19 Tender and recruit an

international training

expert/company to support the

development of train-the-trainers

(T-T-T) programme to build a

sustainable pool of trainers,

together with the pool of trainers

develop basic training

curricula’s for trade facilitation

and prioritized technical areas,

and to deliver a first round of

training on these areas for key

people

International expert recruited. Basic initial training delivered.

Train the Trainer concept introduced

To be carried out as per the Capacity Building

Plan to be developed by the QA firm

34

TC5-20 Tender and recruit an

international expert for support

in developing standard

operational procedures, routines

and guidelines for NTP and

NSW (use the supervision

facility provided by the World

Bank by requesting competence

and capacity for this work in the

ToR for supervision)

International expert recruited. Routines, guidelines and SOPs

identified and developed together with stakeholders.

- To be carried out according to the

recommendation after the QA Supervision Firm

is recruited

- QA Supervision Firm recruitment is in process

TC5-21 Develop an official

communication package for the

NNSWTP. The package should

be developed in both English

and Nepalese anguages and

should include e.g.; official

folder, presentation material,

common website information,

statements and quotes from

highest possible level within

Government showing support

for the introduction of the

NNSWTP

Official Communication package in English and Nepalese

incl. website, brochures, etc.

To be carried out in regular basis. Other major

work and recommendations to be made by the

QA supervision firm

TC5-22 Develop a specific information

programme for the private sector

starting with a NNSWTP

Awareness raising information

seminar. The seminar should

address the important issues for

the Private Sector in relation to

trade facilitation and

implementation of the

NNSWTP. Proposed agenda

items are included in the report.

The seminars should be

conducted in Nepali and English

during evenings, so also SMEs

can attend


recommendation. Planned for 3rd trimester

35

Roles and Responsibilities of Participating Agencies for NNSW

SN Stakeholder Roles

1 Department of Customs • Registration of Customs Agent

• Export/Import (E/I) clearance

• Receives permit/license/recommendation from other agencies to release goods.

2 Ministry of Commerce and Supplies

Department of Commerce and

Supply Management (DOCSM)

• Register Business firm.

• Issue Recommendation/Approve letter to commercial bank to change(customs posts, Quantity etc.)

in LC

• Issue Recommendation to approve exceed limit of amount for transaction

• Issue Recommendation to Calcutta for releasing every consignment in import

• Issue Recommendation to Customs office to release prohibited/Partially prohibited goods

• Receives Recommendation from other government agencies for further recommendation to

customs

Nepal Transit and Warehousing

Company Ltd

• Receive information from customs office and endorsed delivery order only in TIA

3 Ministry of Agricultural Development

Department of Food Technology and

Quality Control

• Issue Import permit for Food products

• Release certificate during import clearance

• Quarantine quality Certificate for export

• Receives quarantine request letter from customs during import

• Receives quarantine request application form for goods import/export permit from

exporter/Importer

Department of Plant Resources • Export permit

• Import Permit

• Recommendation letter for export


exporter/Importer.

Central Plant Quarantine Office • Issue Import permit

• Issue phytosanitary certificate for export

• Receive application from Exporter/Importers

36

Plant Quarantine Check post • Release certificate during import


Central Animal Quarantine Office • Issue certificate for export/Import

• Issue animal health certificate and phytosanitary certificate


exporter/Importer

Animal Quarantine Check Posts • Issue Quarantine release certificate


4 Nepal Rastra Bank • Endorsed BN no.1 (export) and BN no.4 (import) is received from customs posts

• Endorsed BN no.3 is received from Commercial bank

5 Department of Transport

Management

• Issue recommendation letter for Vehicles

6 Trade and Export Promotion Center • Issue GSP Form A

• Recommendation to export/import goods for exhibition

7 Federation of Nepalese Chambers of

Commerce and Industry

• Specific District level Chambers Issue Certificate of Origin (CO).

• FNCCI and DOIND committee approve goods for issuing CO

• Receives requests as application form from exporter to approve goods for CO

8 Nepal Freight Forwarder's

Association

• Prepare License, Permit, Certificate of Origin (LPCO) for Export

37

Annex 5: NIRTTP Updated Social Safeguards Status for N-M Road Project, August, 2014 S.N. Activities Taken Actions

Status Date Target Date Remarks

1 Budget allocation Completed April 2014

2. Preparation of social safeguard documents (IEE, RAP, SAP, &VCDP) Completed and Updated RAP

June 2014

3 Appointing Social Mobilizers (SM)/ SDRS of Consultant Completed Completed

4 Orientation to Project Staff and VDC Completed May 2014

5 Distribution of RAP and VCDP in Local Language in all concerned VDCs and PAF

Distributed to VDCs &PAF

August 2014

6 Conduct Consultation meeting with Project Affected Persons (PAPs) On going July 2014

7 Verification of PAFs Completed June 2014

8 Preparation Status report of PAF Completed August 2014

9 Formation of local consultative Forums in all 4 VDCs Completed 12 May, 2014

10 Formation of Grievance Redress Committee (GRC) Completed 14 May,2014

11 Orientation of LCF members Ongoing May, 2014

12 Ministry/Department officially authorizes to the PM for Initiate preliminary action for acquisition of houses, business establishment and other structures

Completed April 2014

13 Formation of Compensation Determination Committee Completed April 2014

14 Meeting of the CDC Completed April 2014

15 Finalization of Compensation Value Completed

16 PIC to Deposit money with CDO NA Distribution by PIC office

17 Issue Notice of Compensation Completed 27 June, 2014

18 Assistant to PAFs in preparing Papers for Compensation Claim Completed 27 June, 2014

19 Disbursement of First installment to PAFs Completed for 45 structures

11 July, 2014 Disbursement of First installment to PAF for 1 structure is remaining

20 Update the status (Data base) of Resettlement of PAF & vulnerable group

Completed August 2014

21 PAFs starts dismantling the structures X X October, 2014

22 Disbursement of Second installment of Compensation X X November, 2014

23 Conducts Training Need Assessment (TNA) X X September, 2014

24 Finalizes of Training X X September, 2014

25 Project identifies master trainers/ Training organization X X October, 2014

26 Implementation of livelihood training formation of women SHGs X X October, 2014

27 Disbursement of R&R and business displacement allowances X X December, 2014

28 Evaluation of Implementation of Livelihood training X X December, 2014

38

29 Monitoring on social safeguard compliance by GESU team and Supervision Consultants

Continuous May, 2014

30 Evaluation of Resettlement Action Plan (RAP) (Midterm will be in December 2014 and end term will be after an year)

X X December, 2014

Note: CDO = Chief District Officer, CDC = Compensation Determination Committee, CFC = Compensation Fixation Committee MoPIT = Ministry of Physical Infrastructure and Transport, MoH = Ministry of Home, MoF = Ministry of Finance, PM = Project Manager, SC = Supervision, Consultant, SDRS= Social Development & Resettlement Specialist, LCF = Local Consultative Forum, SM= Social Mobilizer, GRC = Grievance Redress Committee, IND.C = Individual Consultant, SHG= Self Helping Group

39

Annex 6 - Environmental Safeguards Action Plan

1. MoCS PCO Staffing. The PCO is committed to hire an Environmental Specialist to oversee the application of the ESMF to

the ICDs and trade-related laboratory subprojects; however, the mission agreed that full-time support is not yet needed, given that at

present only the Bhairahawa ICD is under construction (and the supervision consultant includes an environmental specialist to conduct

on-site monitoring and supervision of EMP compliance), while the Birgunj ICD is still in design stage and the Kathmandu ICD and

the two planned laboratories are yet to get underway. Therefore, in the immediate term, the PCO’s Technical Advisor will manage the

review of supervision monitoring reports for Bhairahawa ICD and resolving any non-compliance issues. Nonetheless, to ensure

appropriate capacity is on board to ensure full ESMF compliance as activities requiring environmental review unfold for the various

ICD and laboratory subprojects, the mission requested that the PCO initiate the process to hire an intermittent environmental specialist

(retainer basis) in the short term. This individual could then be scaled up to full-time as and when the workload demands it.

Upcoming PCO tasks related to ESMF compliance include reviewing Bigunj ICD designs to ensure that recommendations from the

environmental screening and assessment and requirements of the EMP and ESMF are incorporated; reviewing all bidding documents

to ensure appropriate inclusion of all EMP and ESMF items; periodic on-site monitoring at construction sites; and review and follow-

up on environmental findings in supervision consultant monitoring reports.

Action: PCO to draft TORs for intermittent (retainer basis) environmental specialist by October 30, 2014 and share with the

World Bank for comments and No Objection

2. N-M road Pre-construction EMP activities. DoR updated the mission on progress related to key pre-construction EMP

activities for N-M road, including tree cutting and shifting of utilities and public infrastructure. The mission also reviewed and

verified the cost provisions for all Environmental Management Plan (EMP) requirements, either in the contractor BOQ line-items,

BOQ provisional sums, or through the DoR’s budget allocation for the N-M road. Specific issues are described below:

The project has submitted all necessary documentation to the Department of Forest (DoF) for forest clearances. The Project-In-

Charge is regularly liaising with DoF to ensure smooth and efficient processing of the clearance request, and has verbal assurances

of the clearance by November. Actual tree-cutting will be done by the contractor during the pre-construction period. However, in

the meantime, DoR needs to develop the afforestation program (which, as per the EIA, should also support wildlife and

biodiversity enhancement objectives). It was agreed that DoR will review the EMP requirements, discuss internally and agree to

an approach with DoF and other potential partners / stakeholders as applicable so that the plan is fully developed in advance of

construction.

For electric poles, the Electricity Authority Office has indicated the need for a joint site verification with DoR to determine

specifically where the 303 affected poles will be relocated to. This process is expected to be completed by end of September. The

actual moving of poles will either be carried out by the contractor or by NEA (with charge-back).

40

Other affected public and community infrastructure such as water supply and irrigation lines, hand pumps, walls, etc. will be

shifted and rehabilitated by the contractor during the pre-construction period. Nonetheless, DoR must first carry out consultations

with relevant stakeholders and user groups regarding coordinating cuts in services during the shifting, as well as to make any

needed final adjustments to the new alignments / locations for affected infrastructure. The mission emphasized the need to

document all consultation events and to share such documentation with the Bank.

To ensure that all relevant pre-construction EMP activities are on track, DoR will carefully review the EMP and compile a work

plan for pre-construction phase including specific tasks and schedule.

Actions:

DoR to immediately share with the Bank the records from consultations with water user groups and water supply division on

shifting of water supply lines.

DoR to ensure ongoing documentation of all consultation events related to utility shifting and any other pre-construction

activities.

DoR to internally discuss and agree to approach for afforestation program, and define detailed program and budget with input

from DoF, other potential partners and stakeholders, by April 2015 (in advance of tree felling).

DoR to develop a work plan for all pre-construction EMP activities and share with the Bank by October 15, 2014.

3. Environmental staffing at DoR. Staffing issues for environmental management aspects of N-M road were reviewed during

the mission. Currently, the Environmental Safeguards Expert consultant to DoR’s Geo-Environment and Social Unit (GESU) hired

under the World Bank Road Sector Development Project (RSDP) is providing intermittent support to NIRTTP for N-M road pre-

construction activities in addition to her work on RSDP. Furthermore, DoR’s Project in Charge for NM road is personally managing

all government liaison tasks related to forest clearances and utility / public infrastructure shifting. DoR explained that the Expert will

continue to support both projects until RSDP project closes (expected in June 2015). At that point, DoR is committed to re-issue the

Expert consultant contract as full-time under NIRTTP.

4. The mission expressed concern that environmental staffing may be stretched thin, especially once contractors begin to

mobilize for NM road construction, as the workload under RSDP is heavy and will continue as such until that project closes and

pending works (like bioengineering, reinstatement of disposal and quarry areas, etc.) are finished. In addition, additional

environmental specialist time will be required of DoR to interface with the consultants and review draft deliverables for the feasibility,

design and detailed ESIA studies for Kathmandu-Naubise-Mugling road, as well as the Strategic ESA / Sustainability Study, and

review/input into contract documents. GESU has commendably received recent approval to hire two additional permanent staff (one

social and one environmental), but these positions will likely take many months to fill in light of GoN administrative requirements and

lengthy procedures; these permanent staff will furthermore be responsible for supporting projects across the sector and will not likely

41

be available to substantively support NIRTTP on safeguards matters. The mission therefore cautiously agreed to DoR’s environmental

staffing arrangement for NM road, but recommended that the arrangement be reviewed prior to contractor mobilization. If needed, the

project should bring on an additional environmental consultant on an intermittent basis to backstop the Environmental Safeguards

Expert, in particular during the overlap months before RSDP-related tasks come to a close and while contractors are mobilizing and

initiating construction activities along NM road.

Actions:

DoR to review staffing adequacy on environmental management prior to contractor mobilization on NM road, and to hire

additional consultant on intermittent basis to backstop Environmental Safeguards Expert if required.

DoR to re-issue contract for Environmental Safeguards Expert under NIRTTP project funds by July 1, 2015, when the

existing contract through RSDP expires.

5. Strategic ESA / Sustainability Study. For the Birgunj-Kathmandu Corridor Strategic Environmental and Social Assessment /

Sustainability Study, a field visit and consultations with key stakeholders was carried out by a joint World Bank - DoR team including

environmental and social specialists in May 2014 to scope the study (a trip report is presented in Annex X). As agreed during that

visit, the World Bank developed initial draft ToRs for the study, which were shared and discussed with DoR during the mission. As a

next step, DoR will provide comments on the draft ToR to the World Bank by September 30, 2014. Following Bank review and

further discussions if required, DoR will share the ToR with other concerned government agencies (in particular, DoF and Ministry of

Environment) for any further observations or comments, before submitting them formally for No Objection to the Bank and initiation

of the procurement process.

Action: DoR to provide comments on draft ToR for Strategic ESA / Sustainability Study by September 30, 2014.

6. Capacity strengthening on biodiversity management in roads sector. The mission discussed DoR’s previous request for

support to develop capacity on biodiversity management for the roads sector. It was agreed that the ToR for the Strategic ESA /

Sustainability Study should include activities to begin to address DoR’s identified needs – for example, to include developing

guidance resources and manuals for good practice biodiversity management in road design and construction. DoR will propose

specific such activities in the ToR.

Action: DoR to propose specific measures or activities to advance capacity on biodiversity management in the roads sector in

their revisions to the Strategic ESA / Sustainability Study ToR.

42

Annex 7 – Sub-Project Monitoring Template

Draft format for Activities, Tasks, Timelines, Deliverables, Partners, Resources, etc.

Component A:

Sub Component 1.1:

Objective:

Responsible Staff:

Activity TASKS Jan-14

Feb-14

Mar-14

Apr-14

May-14

Jun-14

Jul-14

Aug-14

Sep-14

Oct-14

Nov-14

Dec-14

Milestones/ deliverables

Completed in Project Year 1 or 2 or 3 or 4

Partners & Stakeholders

Complementary/ leveraged activities

Resources/working modalities

nepal-india regional trade and transport project (ida...

Documents