Nepal Early Warning Update

Asian Development Bank Business Opportunities: Volume 7, October 2008

Friday, October 17, 2008

This Bulletin is a periodic electronic update from the Bank Information Center to inform civil society about Asian Development Bank (ADB) projects in Bangladesh before they are approved by the Board of Directors of the ADB.  This Update covers project information, organized by sectors.  The information is compiled directly from ADB’s Business Opportunities.

For feedback on the Early Warning Update or to subscribe, please contact:
Bank Information Center
Phone: +1-202-737 7752;  Email: southasia@bicusa.org; Web: www.bicusa.org

For more information on specific projects, please contact the following at the ADB:
The Project Officer (contact details listed against each project). When emailing, also copy to: disclosure@adb.org. You may also contact the ADB Public Information and Disclosure Unit (See: http://www.adb.org/Disclosure/contact.asp).

About Business Opportunities (BOp)  

Business Opportunities (BOp) identifies potential projects that are under consideration for ADB financing.  The BOp listings do not guarantee that financing will be approved for particular projects.  However, BOp listings serve as important tools for monitoring and follow up of proposed projects.  These, along with your country’s Country Partnership Strategy (CPS), work as early warnings on the projects that your government and the Bank are considering for funding. Advocacy and campaigning experience around the world on Bank projects indicates that the earlier civil society gets involved on proposed projects, the greater the likelihood for impacting them.  Proposed projects are listed until the point of ADB Board approval; the remaining are dropped from the list.  BOp listings are prepared after CPS approval and during the early phases of Project Preparation. For better understanding of this process, the Bank’s Project Cycle is summarized below.

Project Cycle (ADB website for complete project cycle)

ADB’s Project Cycle

Project Identification/Preparation: ADB often provides grants called project/program preparatory technical assistance (PPTA) to help the government identify and prepare feasible projects. The summary is made available in the form of a project profile or project information document (PID).

During the early stage of the PPTA, an initial poverty and social assessment is conducted to identify people who may be beneficially or adversely affected. A technical assistance report is prepared as a recommendation for ADB to finance a technical assistance project.

If the project requires resettlement of people or might adversely impact the environment, or indigenous peoples, certain safeguard assessments are prepared during this stage. The results of these assessments are to be made available to affected people.  For more information on community rights under ADB safeguards and international best practices, see comparative matrices of MDB safeguard policies on BIC's website.

Project Examination: ADB examines project feasibility, first through a fact-finding mission and then through an appraisal mission. The fact-finding mission examines the project's technical, financial, economic, environmental, marketing, and management aspects and potential social impact. Detailed project risks and sensitivity analyses are carried out to assess viability of the proposed project and loan terms are discussed.

Following this, the Appraisal Mission conducts further field study, analyses and consultation, as required. The mission then prepares a loan proposal report and draws up a draft loan agreement for negotiation. After appraisal, the draft loan agreement and draft project proposal is submitted for review. Government is then called for negotiation with ADB. After negotiations with the government, the loan proposal is submitted to Board of Directors for Approval, through its Report and Recommendation of the President (RRP).

After Board approval, the document is sent to the borrowing country's Government for cabinet authorization following which the loan agreement is signed. The loan takes effect once certain conditions are met. The requirements and deadline for loan effectiveness are stipulated in the loan agreement.

ADB-assisted projects are implemented by the executing agency according to the agreed schedule and procedures as detailed out in the project administration memorandum. Implementation time generally ranges from two to five years but depends on the type and nature of the project. ADB's review missions assess the progress of project implementation by visiting it at least twice a year throughout the implementation period.

If a project has significant environmental or social issues, ADB will often require the borrower to submit regular monitoring reports, in addition to progress reports. Information on the project's implementation progress and status of development objectives and loan covenants is added to the project information document during this implementation phase.

For more information, refer to: Unpacking the ADB: A Guide to Understanding the Asian Development Bank

Commonly Used BOp Acronyms

TA:      Technical Assistance

AOTA:  Advisory and Operational Technical Assistance Loans

PPTA:  Project Preparatory Technical Assistance

RETA:  Regional Technical Assistance

EIA:     Environmental Impact Assessment

IEE:     Initial Environmental Examination

   N:     New Project

   R:     Revised (italic text indicates change from previous month)

ADB Environmental Categorization

Category “A” Projects: Projects having severe environmental impacts are categorized as “A”. An EIA is required.

Category “B” Projects: Projects having some adverse environmental impacts are categorized as “B”. An IEE is required in order to determine whether an EIA also needs to be done. If not, then the IEE is the final environment document.

Category “C” Projects: Projects havening no environmental impacts are categorized as “C”. No IEE or EIA is required but environmental considerations are still reviewed.

Category “F1” Projects: Projects involving a financial intermediary or equity investment are classified as “F1”. The financial intermediary will apply an environmental management system if environmental impacts are expected.

Current Business Opportunities for Nepal

Agriculture and Natural Resources

AOTA: NEP 40545-01

Project Name

Strengthening Capacity for Managing Climate Change and the Environment

Executing Agency

Ministry of Environment, Science and Technology

Tel. No.	:	977-1-4211661
Address	:	Singha Durbar, Kathmandu
		Nepal

TA Amount (US$ '000)

500.00

Sector/Subsector

Agriculture & Natural Resources /Environment & Biodiversity

Date of First Listing

28 August 2008

Project Impact

The impact of the TA will be reduced environmental risk through improved environmental protection and better management of climate change risks.

Project Outcome

The expected outcome of the TA is strengthened country capacity for environment and climate change management. The TA will assist Ministry of Environment, Science, and Technology (MOEST) and other line agencies responsible for enviornmental management, in building new and strengthening existing capacities and skills and to mainstram environmental and climate change considerations into sectoral policies and the national development agenda in general.

Project Outputs

(a) Establishment of an effective legal, policy, and institutional framework for integrating environment and climate change into the national development agenda; and (b) Development and implementation of a public education, information and awareness program on environment and climate change that will be sustained after TA completion.

Consulting Services

All consultants will be recruited on an individual basis, in accordance with the Guidelines on the Use of Consultants (2007, as amended from time to time). Consulting services for the TA will total 42 person-months (pm) [3 person-months of international and 39 person-months of domestic consultants]. The expertise required are as follows: International - Legal/Policy/Institutional Specialist (3 pm) Domestic: Project Facilitator/Change Management Specialist (18 pm) Training Specialist (9 pm) Policy Specialist (9 pm) Financial Management Specialist (3 pm)

Project Processing Stage

Fact-Finding Mission Completed

:

3 August 2008

Recruitment of Consultants

Recruitment of consultants is expected to take place tentatively in Sep/Oct 2008.

Project Officer

Cynthia (Cindy) Malvicini (632-5927)

Agriculture, Natural Resources and Social Services Div, SARD

cmalvicini@adb.org

Law, Economic Management and Public Policy

AOTA: NEP 41126-01

Project Name

Strengthening Capacity for Macroeconomic Analysis

Executing Agency

Nepal Rastra BankCentral Bureau of Statistics

TA Amount (US$ '000)

675.00

Sector/Subsector

Law, Economic Management & Public Policy /Economic Management

Date of First Listing

28 August 2008

Project Impact

The TA will strengthen the government's capacity for macroeconomic and policy analysis, and policy formulation.

Project Outcome

The TA will enhance both institutional and human resource capacity of key government agencies in developing and using macroeconomic models and improve the national statistical system.

Project Outputs

The outputs of the TA will be: (i) an updated and expanded Nepal Macroeconomic Model reflecting the revised macroeconomic data standards in the recent years and structural changes in the economy, (ii) improved quality and coverage of statistical outputs, and (iii) strengthened capacity of key institutions such as NRB, National Planning Commission (NPC), Ministry of Finance (MOF), and CBS, among others, for macroeconomic data collection, compilation, and analysis and forecasting.

Consulting Services

Individual Consultants will be recruited under the TA. Component A: Developing a System of Quarterly National Accounts National Accounts Expert (International, 2 person-months) National Accounts Expert (National, 5 person-months) Agriculture Statistician (National, 4 person-months) Component B: Macroeconomic Modeling Macroeconomic Modeling Specialist (International, 6 person-months) Macroeconomic Modeling Specialist (National, 6 person-months) Econometrician (National, 6 person-months) Information Technology Specialist (Nationial, 2 person-months)

Project Processing Stage

Fact-Finding Mission Completed

:

25 July 2008

Recruitment of Consultants

Recruitment of Consultants expected to take place in October 2008.

Project Officer

Raju Tuladhar (632-5515)

Nepal Resident Mission

rajutuladhar@adb.org

AOTA: NEP 39476-01

Project Name

Strengthening Capacity for Managing for Development Results

Executing Agency

To be determined.

TA Amount (US$ '000)

750.00

Sector/Subsector

Law, Economic Management & Public Policy /Public Finance & Expenditure Management

Date of First Listing

7 May 2008

Project Impact

Effectiveness of development programs enhanced with better achievement of results.

Project Outcome

Institutional and technical capacity of NPC and line ministries developed to implement MfDR approaches.

Project Outputs

The TA will (i) develop sector specific results frameworks and business plans; (ii) support MfDR capacity development including linkage between planning and budgeting processes; (iii) strengthen monitoring and evaluation system; and (iv) build on the achievements of TA4765 and RETA 6306 in the process of institutionalizing MfDR . The TA will be implemented over two years (2009 -2010).

Consulting Services

Consulting services yet to be determined.

Project Processing Stage

Fact-Finding Mission Completed

:

18 June 2008

Recruitment of Consultants

Requirements of consulting services to be completed during fact-finding mission.

Project Officer

Surya P. Shrestha (632-5515)

Nepal Resident Mission

sshrestha@adb.org

Transport and Communications

AOTA: NEP 40011-04

Project Name

Small Scale Capacity Development Technical Assistance for Enhancing Project Readiness for North-South Fast Track Road Connectivity (PPP)

Executing Agency

Ministry of Physical Planning and Works

Contact	:	Mr. K. R. Pandey, Joint Secretary
Fax. No.	:	00977-1-4211720
Tel. No.	:	00977-1-4228199
Address	:	Kathmandu, Nepal

TA Amount (US$ '000)

225.00

Sector/Subsector

Transport & Communications /Roads & Highways

Date of First Listing

3 September 2008

Project Impact

The overall impact and outcome is incresed private sector investment and enhanced capabilities in infrastructure construction and maintenance. The PPP project will bring substantial economic growth benefits which the country very much needs at present.

Project Outcome

The country's capacity will be enhanced in (i) promoting PPP projects in road sector and (ii) tunnel construction, operations and maintenance. These will be achieved through assistance in preparation of BOT bidding documents including draft contracts, and recommending bidding process.

Project Outputs

Preparation of bidding process and recommending bidding process.

Consulting Services

Individual international consultants will be engaged for BOT expert (3 months), Highway/Structure Engineer (1 month), Financial Expert (1 month) and a national individual consultant for Highway/Geotechnical Engineer (2 months).

Project Processing Stage

Approved by the Bank

:

26 September 2008

Recruitment of Consultants

Recruitment of consultants expected to start from October 2008.

Project Officer

Nianshan Zhang (632-6029)

Office of the Vice-President (Operations 1)

zhangnianshan@adb.org

AOTA: NEP 40011-03

Project Name

Supporting a Public Private Partnership (PPP) for the North-South Fast Track Road Connectivity

Executing Agency

Ministry of Physical Planning and Works

Contact	:	Mr. K. R. Pandey
Fax. No.	:	00977-1-4211720
Tel. No.	:	00977-1-4228199
Address	:	Kathmandu, Nepal

TA Amount (US$ '000)

750.00

Sector/Subsector

Transport & Communications /Roads & Highways

Date of First Listing

28 July 2008

Project Impact

The overall impact and outcome is increased private sector investment and enhanced capabilities in infrastructure construction and maintenance. The PPP project will bring substantial economic growth benefits which the country very much needs at present.

Project Outcome

The country's capacity will be enhanced in (i) promoting PPP projects in road sector and (ii) tunnel construction, operations and maintenance. These will be achieved through assistance in preparation and negotiations of BOT contracts and strengthened legislative framework in order to promote PPP projects in the road sector and extensive training activities.

Project Outputs

This CDTA will provide assistance in bid evaluation, contract negotiations and capacity building. The capacity building will focus on (i) strengthening legal framework with an aim to attract private sector investment in the road sector; and (ii) technical knowledge transfer on tunnel construction, operations and maintenance.

Consulting Services

A firm of 13 person-months of international consultants will be recruited. Individual international consultants (2 person-months) and individual national consultants (10 person-months) will be engaged for highway engineer, institutional/capacity building, environmental, social and land acquisitions.

Project Processing Stage

Fact-Finding Mission Completed

:

6 August 2008

Recruitment of Consultants

Advance recruitment of Consultants expected to start in October 2008.

Project Officer

Nianshan Zhang (632-6029)

Office of the Vice-President (Operations 1)

zhangnianshan@adb.org

The Bank Information Center (BIC) partners with civil society in developing and transition countries to influence the World Bank and other international financial institutions (IFIs) to promote social and economic justice and ecological sustainability. BIC is an independent, non-profit, non-governmental organization that advocates for the protection of rights, participation, transparency, and public accountability in the governance and operations of the World Bank, regional development banks, and IMF. For more information about BIC, see www.bicusa.org.