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"Making Globalization Work: Role of Consultants" A Paper onRural Infrastructure Development in Nepal: Prospect and Opportunity for Consultancy Business by Er. Bhim Upadhyaya"Knowledge is Useable Information"

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Contents of the PresentationIntroduction to Nepal's Present Socio-economic Development & Geographical Context National Policy, Strategies and Plans for Local Infrastructure Development Roads StatisticsMajor Programs Under-implementationInstitutional ArrangementsVision for Nepal's Infrastructure DevelopmentInfrastructure Development Gaps vis--vis Engineering Consultancy Business Prospect & OpportunityConclusions

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Nepal in the World Map

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Size Area-wise: 47th LargestSize Population-wise: 42nd LargestGDP Growth Rate:2nd Poorest Human Dev Index: 136th/177Global CompetitiveIndex: 110th /125

NepalWhere is Nepal in the World?Area147,000 SqkmPopulation28MPop Growth2.17%Agri. GDP38%Arable Land16.07%Irrigated Land11,700 SqkmBelow Poverty31%Road Network17,000 KmLowest Land70mHighest Land8848m

We are 28 M+ People.45,000 Villages with 22.5M Rural People (86%).15M Youth Below 25 yrs Age(60%).4.5 M (20%) Youth 15-25 Age, >4.5 M People Unemployed.Multi Language, Multi Ethnic, multi-cultural, Diverse ecological, Traditional and Religious Nation

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Ganga RiverIndiaChinaRiver Systems of NepalBagmati

Bay of Bengal6,000 Rivers in Nepal

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Topography and Geological FormationMain Central ThrustMain Boundary ThrustMain Frontal Thrust

Mahabharat RangeMidlands70m8848mAbout one-third of the Hindu-Kush Himalaya in NepalAbout 80 % of the country within mountainous / hilly terrainImmature mountain landscape, extreme monsoon rainfall and periodic large earthquake leading to high vulnerability of landslides Siwalik

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Infrastructure Status in Nepal (Approx.)1. IrrigationCultivated Land- 26.5 Lakh ha.( 20% of Total Area)Irrigable-17.6 Lakh ha.(66% of Cultiv'd)Irrigated- 11.2 Lakh ha. (62% of Irrigable)Year Round Irrigated-4.5 Lakh ha.( 40% of Irrigated, 25% of Irrigable)2. Water & Sanitationwater-76%, Sanitation- 26% (Quality? Quantity?) 3. Railway-59 km4. Airport Paved 10 Nos5. RoadsAll Weather 11,000 km ( All type 28,000 km)Paved Road- 4,000 km6. ElectricityHydro- 556 MW(0.67% of Potential)Diesel- 55 MWCoverage- 40%(quality?!) Total- 618 MW7. Fuel/EnergyFossil Fuel- 18 Lakh L/Day (11,550 B/D)LP Gas -225 MT/Day8.Telephone Lines- 5.3 M9. Internet Users-0.2 M

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Nepal Road Accessibility- Lowest in the Region

Current road length (km) per 1,000 sq km Land AreaCurrent road length (km) per 10,000 People

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Strategic and Local Road Network of Nepal & Accessibility (2hrs; 4 hrs)Highways: 15 NoFeeder Roads: 51 No

Total Road Network: 28,000 km.

Crowded RoadsNo Roads yet in 11 Districts

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National Society of Agri Engineers10

National Rural Roads Network: 22,000 KmOperational Rural Roads:10,000 KmTB: 4000 Nos.SRN : 5400 Km(78% Access.)LRN: 4500 Km (85% Access.)Strategic and Local Road Network of Nepal & Accessibility (2hrs; 4 hrs)

10National Society of Agri Engineers10

Opportunity: Nepal's 20 yrs ROAD VISION

Opportunity: Road, Rail, Tram, Cable Car

Proposed Railroad

Tarai East-West RailwayMid-Hill East-West Railway & RoadChina LinksKath-Birganj Railway

Kath- Hetauda Fast Track RoadKath- Hetauda Tunnel

Rope, cable wayCableways

Kath-valley Cable Car

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Policy Framework for Rural Infrastructure Development Sector in NepalNepal Agricultural Perspective Plan (1997-2017)National Transport Policy- 2001Poverty reduction Strategy Paper 2001A 20 Year Master Plan-2002Priority Investment Plan-(2007-2016)Local Self Government Act 1999 Local Infrastructure Development Policy-2004Local Infrastructure Strategic Action Plan 2006 Nepal Roads Board Act 2002National Development Plans (10 plans)National 3 Year Interim Plan 2062-2065

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7 Sectors of Rural (Local) Infrastructure in Nepal

Opportunity in New NepalIrrigationRoadsWater SupplyHousingRural ElectrificationRural telecom ConnectivityRemaining 75%Irrigable Land

All Villages40,000/3915VDCsHouses for all Poor Drinking WaterTo 24% RemainingHabitationsTeleConnectivity To all remaningvillages

Challenging task is the evolution of the management structure for integrated development Electricity connections To Remaining 62%householdsSocial InfrasSchools, Health posts for all villages

BuildingProsperous New Nepal

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Status of Rural Roads in Nepal (as of 2004)Type of Rural RoadLength kmEarthen16,875Gravel3,882Blacktop357Total22,105

12,176 km in Operation9,929 km not in Operation

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Major Rural Infras. Dev. Programs-1 Decentralised Rural Infrastructure and Livelihood Project (ADB loan), USD 50 M (18 districts) Rural Access Improvement & Decentralisation Project (WB Grant), USD 32M (30 districts) Rural Reconstruction and Rehabilitation Sector Development Project (ADB/DFID/OFID), USD 106.8M (20 districts) Rural Access Program (DFID Grant) GBP 17 Million (7 districts) Rural Village Water Resourced Management Project (Finland Grant), Euro 11.4Million. Rural Water Supply and Sanitation Project Western Nepal (Finland Grant), Euro 9.7Million. Trail (Suspension) Bridge Construction and Maintenance Project (SDC Grant, 54 hill districts)

Major Rural Infras. Dev.Programs-2DDC Block Grant, Rs 1 Bn/year, 42% for public worksVDCs Block Grant, Rs 8 Bn/year, 70% for public worksMunicipalities Block Grant, Rs 400M /year, 70% in public worksLocal level and Agricultural Road Project Rs 1 Bn/yearRemote and Special Area Development Program, Rs 100M/year. District Road Support Program (SDC Grant, 6 districts)Rural Community Infrastructure Dev. Works (WFP Food Grant, 22 districts) Rural Road Maintenance Fund

Institutional Setup for Rural Infrastructure Development in Nepal

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Government Organizational Tiers for Rural Road Development

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Present Unitary Nepal

Kathmandu Centric

CPN Maoists 13 States (?) with Political, Economic Powers & Modern Capital TownsFuture: States-Centric New Federal Republican Nepal

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TECHNOLOGYPOORLOWHIGH

USA JAPANFRANCEGERMANYUKETC.,SOME DESERT COUNTRIESNEPALINDIACHINABRAZILINDONESIAMEXICOMALAYSIA ETC.,NO COUNTRYBIO - DIVERSITYRICH

Opportunity: BIODIVERSITY

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Nuclear - 0Hydro ~ 556 MW(0.67% potential)Coal Thermal 0 Renewable Energy 25%