1) Postal Highway Project
The upgrading of the traditional earthen track postal road that links 20 Terai districts parallel to the East–West Highway near to the Indian border was conceptualized in the government’s 20 year Master Plan 2002. The Government of Nepal signed a Memorandum of Understanding (MoU) with the Government of India on 27 June 2006 to prepare the detailed project reports (DPRs). Another MoU was signed between the two governments on 15 January 2010 for cooperation in the
“Strengthening of Road Infrastructure in the Terai area of Nepal”. The total length of the project is 1,792 km. The east–west road will be 1,042 km long. The total length of projected North South feeder roads is 817 km. Until now 45.6 km of road has been blacktopped and 25 km graveled. More than 150 bridges have been identified for construction of which 45 have been constructed, 58 are under construction and the rest are at the design stage.
The upgrading works are planned in two phases. In the first phase, two postal roads and seventeen feeder roads will be upgraded with a total of 607 km of roads to be completed. However, among the six contract packages awarded to Indian contractors for this work only package 1 (Lamki-Tikapur & Sati Bhajani–Dhangadi) has gone ahead while the other five packages (2, 3, 4, 5 and 6) have been terminated due to non-performance by contractors. Tender notices for upgrading twelve roads under the first phase have been published but the budget modality for the Indian grants is not clear. Similarly, roads and bridges that lie in Chitwan National Park have faced uncertainties due to non-approval by the park authority. The DPR preparation of the second phase roads has not yet started. Low funds for compensating affected home owners in urban areas and the lack of adequate manpower (engineers and sub-engineers) are major hurdles. The government has set aside NPR 3.19 billion for 2015/16. This project is targeted to complete within the period of five years starting from the current fiscal year.
2) SASEC Road Connectivity Project
This ADB-funded project aims to improve connectivity within Nepal and between Nepal and its neighbours. The main investment is an alternative route in Sunsari and Saptari districts. This will create year-round passable conditions along the East-West Highway (EWH), especially across the Koshi River. The repair of three
feeder roads in the hill areas (Ramechhap, Bhojpur and Khotang) and one in the Terai (Jhapa) will improve connectivity between villages along this road system and provide better access to basic services. The project will improve the transport system in the eastern part of Nepal by upgrading 187 km of the Strategic Roads Network (SRN).
The project has five national competitive bidding (NCB) and two international competitive bidding (ICB) packages. The work progress for the five NCB packages is very slow (physical progress varied from 3.5-9.45% after more than 12 months) and the performance of all five contractors has been unsatisfactory. There is a risk that the contractors may not be able to complete the work within the contract closing dates.
The five NCB contractors were not able to fully mobilize their equipment and key professionals. Poor contractor performance, weak planning, and problems in land acquisition and utilities shifting have been the major factors causing the delays. The government may consider terminating these contracts if there are no major improvements in the five NCBs. The loan closes in June 2019.
3) Midhills Highway Project (Pushpa Lal Highway)
The Government of Nepal started the Mid-hill Highway project (the Pushpa Lal Highway) in FY 2008/09 with the aim of connecting different hilly districts from the eastern border at Chiyo Bhanjyang, Panchthar district to the western border of Nepal at Jhulaghat, Baitadi district, running through different townships, settlement and places of importance. The total length of this project is 1,809 km. The aim is to upgrade the road to all weather bitumen and complete the all the necessary bridges by FY 2017/18. The project will prioritize traffic safety, environmental protection and bio-engineering works.
The western part of the project from Patibhanjyang in Nuwakot district to Jhulaghat in Baitadi started in FY 2011/12. The total length of this part is 1,120 km out of which 220 km of new track has been opened. The total estimated cost of this western part is NPR 14 billion. Overall physical progress is around 36%. Detail survey, design and the preparation of DPRs for 311 km of road has been completed.
The eastern part of the project runs from Chiyo Bhanjyang to Patibhanjyang. It was started in FY 2008/09. The total length is 689 km of which 417 km of new track has been opened. The total cost of this eastern part of the project is about NPR 19 billion. Physical progress is around 36% and 16 bridges have been completed.
The project is facing the challenges of adverse weather conditions, the remoteness of the site, negotiating rights of way, a lack of coordination and support from agencies such as forest offices, a scarcity of construction materials, and weak contractors and consultants.
Conclusions
In the transport sector, there is a need of strong enforcement of contractual provision that the original contractors work without delegating to inexperienced Joint Venture partners. The stringent monitoring of the performance of supervision consultants is also lacking. Sufficient resources must also be planned for the maintenance of road infrastructure post-completion. The frequent transfer of key project staff has been an issue in the sector. The qualification and project related
experience should be regarded during the selection of project directors and finance staff who are committed to demonstrate results.