The World Bank news update:
The Government of Nepal and the World Bank have entered into a financing agreement for a $100 million concessional loan from the International Development Association (IDA). This loan aims to enhance the connectivity, efficiency, resilience, and safety of Nepal’s provincial and local road networks and strengthen the government’s capacity to manage these networks.
The Provincial and Local Roads Improvement Program (PLRIP) – Phase 1 will focus on constructing and maintaining approximately 3,000 kilometers of all-weather, resilient, and safe roads and bridges at the provincial and local levels. This initiative is expected to benefit around one million people in the Sudurpashchim, Karnali, and Madhesh provinces. Additionally, the program will enhance the institutional, management, and technical capabilities of provincial and local governments to effectively plan, design, construct, and maintain road and bridge infrastructure, thereby improving service delivery.
Dr. Ram Prasad Ghimire, the Finance Secretary, signed the financing agreement on behalf of the Government of Nepal, while Mr. David Sislen, the World Bank Country Director for Maldives, Nepal, and Sri Lanka, signed on behalf of the World Bank. A separate project agreement was also signed by the Ministry of Urban Development, the participating provinces, and the World Bank.
“This program will enhance rural connectivity, improve access to services and markets, and unlock Nepal’s economic potential in an inclusive way while reducing travel time and costs for Nepalis,” said Mr. Shreekrishna Nepal, Joint Secretary of the Ministry of Finance.
The Government of Nepal acknowledges the significant transport connectivity challenges and the need for substantial investments to support provincial and local governments as they transition to decentralized governance. To address these challenges, the PLRIP aims to strengthen rural development and build the capacity of provincial and local governments to manage complex sector issues. The first phase of the three-phase program will focus on three of Nepal’s seven provinces and four local areas, with plans to expand in future phases.
“The program supports Nepal’s federalism agenda by empowering provincial and local governments and promoting inter-governmental coordination in the transport connectivity sector to enhance the lives of Nepalis through improved infrastructure and services,” stated David Sislen, World Bank Country Director for Maldives, Nepal, and Sri Lanka.
The program will introduce several best practices, including five-year performance-based maintenance along with construction contracts, routine maintenance through self-help groups, community-led complementary infrastructure, pilots on alternative means of connectivity and rural transport services, approach roads, and an online program monitoring and management system.
