Nepal Road Flood Rehabilitation Project

 Road flood rehabilitation project Report No: ; Type: Report/Evaluation Memorandum ; Country: Nepal; Region: South Asia; Sector: Highways; Major Sector: Transportation; ProjectID: P010309 The Implementation Completion Report (ICR) on the Nepal Road Flood Rehabilitation project (Credit 1922-NEP, approved in FY88), prepared by the South Asia Regional Office with the Borrower’s contribution, was reviewed by the Operations Evaluation Department (OED). The credit, for US$15.5 million equivalent, was approved in June 1988, and closed three years behind schedule in June 1995. US$3.6 million was canceled. Cofinancing was provided by the United Nations Development Programme (UNDP) in the amount of US$0.77 million. The UNDP did not submit comments on the ICR. The project’s objectives were: (i) to deliver immediate assistance to rehabilitate, rebuild or replace priority elements of flood damaged roads and ancillary structures; (ii) to accelerate the start of top priority works designed to protect investments in road infrastructure that survived the 1987 floods; and (iii) to develop and implement a post-monsoon damage monitoring system. The first two objectives became part of the Bank’s Credit Agreement and the third objective part of an UNDP project. The UNDP also provided technical assistance and on-the-job training in flood damage mitigation and rehabilitation. The Bank project consisted of: (i) replacement of four damaged bridges in the Kathmandu Valley; (ii) riverbank protection works, landslide stabilization measures and road pavement reconstruction on a 25 km section of the Arniko Highway; (iii) landslide and gully stabilization, watercourse and other rehabilitation works on a highway section between Thankot and Naubise; and (iv) riverbank protection, river training and other structures in Terai rivers at widely separated locations on the East-West Highway. The project delivered assistance for rehabilitation of flood damaged roads, but implementation was delayed for three years due to difficulties in the procurement and approval process. The work program was revised in 1990 to focus on road maintenance activities that could be completed before the credit’s scheduled closing date. This effort was partially successful in that, in quantitative terms, most of the physical project’s targets were met and work was of generally satisfactory quality: the four bridges were replaced; reconstruction was carried out on the Arniko highway; and rehabilitation work was implemented along the Thankot-Naubise highway and the East-West Highway. However, even after a three-year extension of the closing date, less than 80 percent of the credit was utilized. The UNDP technical assistance and engineering study component was implemented, but the action plan emanating from this work was not accepted by the Government. No economic evaluation was undertaken, either at appraisal or at completion. The project had a positive institutional impact in that it helped develop local consultant and project management skills. However, the project did not improve the implementing agency’s institutional shortcomings in developing sustainable maintenance programs, in procuring goods and services, and in planning preventive investments for flood damage. OED rates the project’s outcome as marginally unsatisfactory (vs. satisfactory in the ICR), because of lack of timeliness and completeness. It was essential for such an emergency project to deliver assistance immediately, as stated in the objectives, and not with a three-year delay. Institutional development impact is rated as moderate (vs. substantial in the ICR), and sustainability as uncertain (as in the ICR). Bank performance is rated as satisfactory (as in the ICR) because it appraised the project quickly, showed flexibility in procurement and restructuring of the project after delays, and supervised the project conscientiously. There were two important lessons of experience from this project regarding emergency reconstruction works after floods. First, good planning of both roads and land uses is the most effective means of minimizing the impact of natural disasters since effective land-use regulations will minimize damage more surely than any system for post-monsoon damage monitoring. Second, if such regulations are not or cannot be implemented, institutional and managerial improvements in the implementing agencies are necessary to achieve timely and effective responses to flood-related road rehabilitation needs. The ICR is satisfactory. Although it provides a consistent account of the problems and accomplishments of the project, it does not provide an economic evaluation of the (revised) project at completion. There had been no economic evaluation at appraisal because the project was responding to an emergency. No audit is planned.