Rural Connectivity Improvement Project - Additional Financing (ADB-48218-011)

  • Nepal
Geographic location where the impacts of the investment may be experienced.
Specific Location
Bagmati Province, Gandaki, Karnali, Koshi, Lumbini Province
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 13, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Government of Nepal
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
  • Agriculture and Forestry
  • Infrastructure
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Loan Amount (USD)
$ 101.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Investment Amount (USD)
Not Disclosed
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Jun 26, 2023

Disclosed by Bank Jun 16, 2023

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the ADB, the overall project is estimated to cost $255.72 million, including additional financing of $120.00 million, of which ADB is providing a concessional loan of $100.00 million from ADB's ordinary capital resources. The government will finance $20.00 million of the proposed additional financing project. The attached TA is estimated to cost $1.00 million, which will be financed on a grant basis by ADB's Technical Assistance Special Fund.

The impact and outcome of the overall project will remain unchanged from those of the ongoing project. The proposed additional financing will scale up the current output 1 by an additional 324 km of rural roads and output 2 by increasing capacity support to fulfill the roles and responsibilities in a federal system.

The additional financing will increase the project's scope by upgrading an additional 324 km of rural roads across five provinces. The implementation arrangements will evolve from the ongoing project to better align and support federalism. The overall project scope is aligned with the government's priorities under the Fifteenth Plan (fiscal year 2020-FY2024), ADB's country partnership strategy for Nepal, 2020-2024 and ADB's Strategy 2030.

The roads will improve connection of rural and agricultural areas with administrative and socio-economic centers. The roads will be improved to all-weather standards, with safety features, and will be maintained for 3 years under performance-based maintenance contracts. The additional financing will also integrate climate adaptation and disaster resilience measures into the technical designs of the infrastructure. Compared to the ongoing project, the additional financing will also include upgrading bridges that are essential for all-weather connectivity and include more intermediate lanes necessary for higher volume areas and steeper slopes.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The ADB categorized the project as follows:

Environment B
Involuntary Resettlement B
Indigenous Peoples C
Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

ADB Team Leaders:

Ms. Mio Oka - Director, Environment, Natural Resources and Agriculture Division (SAER)
Phone: +63-2 8632 6834

Mr. Andrew Brubaker - Principal Rural Development Specialist
Phone: +63-2 8632 1636

Executing Agency - Ministry of Urban Development:

Mr. Ramesh Prasad Singh - Secretary
Phone: +977 1 4211673
Address: Singhadurbar, Kathmandu

Department of Local Infrastructure Project Coordination Unit:

Mr. Madhav Prashad Bhattarai - Project Coordinator
Phone: +977 1-5555001
Address: Lalitpur, Nepal


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