Announcement of International Development Association (IDA) Assists Second Highway Project in Nepal on July 11, 1977

eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 78/1 JULY 11, 1977 INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA) ASSISTS SECOND HIGHWAY PROJECT IN NEPAL The International Development Association (IDA), the World Bank affiliate, today announced a credit of $17 million for the Second Highway Project in Nepal. The main purpose of the project is to assist the Govern- ment expand and maintain the road network so economic development can take place. The feeder roads generally will follow existing tracks. Grass and trees will be planted along the main roads as part of slope stabilization measures. Nepal is a mountainous landlocked country with an estimated per capita income of $110 per year. It is one of the least developed countries in the world. Historically transportation has been by porters and pack animals. It has one of the smallest road networks of any country in the world. Since 1951, when Nepal emerged from a century of isolation, dev- • elopment efforts have emphasized infrastructure, particularly roads, in order to integrate the many village economies. Road construction outside of the Kathmandu Valley began in 1953 and the road network now consists of 4,200 kilometers, of which about 1,600 kilometers are paved. The First Highway project in 1970 included the construction of road and porter suspension bridges and a four-year road maintenance pro- gram. The present project is part of the Government's Five-Year Plan (1976-80). The Second Highway Project was developed as an extension to the First Highway Project. The main objective of the Seco~d Project is to contribute to the maintenance and improvement of Nepal's transportation system in order to facilitate economic development. The roads will stimu- late agricultural production and reduce user costs. The maintenance will help preserve the existing highways. The Project provides for construction of a feeder road connec- ting the Dang Valley to the East-West Highway in the Far-Western Region of the country. It will upgrade the mountainous section of the main road between Kathmandu and the Indian border, support the Government 1 s Five- Year Road Maintenance Program, train mechanics and provide consultant services. The credit will be on standard IDA terms of 50 years including ten years of grace. The credit is interest-free except for a charge of • 3/4 of 1% for administrative expenses . NOTE: Money figures are expressed in US dollar equivalents. FC>RM NO. 1121 (o-76) T E CHN I CA L b ATA PROJECT: COUNTRY: TOTAL °COST: Second Highway Project Nepal $20 mi 11 ion • FINANCING: IDA Credit: $17 million on standard terms OTHER FINANCING: Government of Nepal IMPLEMENTING ORGANIZATION: Department of Roads, Mi 11 is try of. Pub 1 i c Works and Tran_:5port Babar Mahal Kathmandu, Nepal. PROJECT DESCRIPTION: The Project provides for construction of a feeder road connecting the • Dang Valley to the East-West Highway in the Far-Western Region of the country, upgrading of a mountainous section of the main road between Kathmandu and the Indian border, support for the Government's Five-Year Road Maintenance Program, consultants' services, and training of mechanics. PROCU.REMENT: Road construction, maintenance equipment, spare parts, workshop machinery and tools by international competitive bid. Feeder road construction will be divided into about ten contracts, ranging between $100,000 - $300,000. Prequalified contrac- tors can bid on one contract or any combination. Contracts for the Thankot-Naubise road upgrading will be divided and awarded in a similar manner. Prequalification. is open to local and foreign contractors. All procurement in accordance with Asso- ciation's "Guidelines". CONSULTANTS: Consultants' services for: preparation of feasibility studies and detailed engineering and construction supervision for feeder roads; preparation of a feasibility study, and possibly further feasibility studies and detailed engineering, for the East-West Highway in the Far-Western Region (180 km); and preparation of pavement and slope stability investigations for possible improvement of mountanous section of the Kathmandu-Indian border road. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: Weighted average 28% 1982. - 0 - •