ADB approves grant for Nepal road upgrading projects

Singapore, Aug 11 (UNI) The Asian Development Bank (ADB) today approved a 55.2 million dollar grant from its concessional Asian Development Fund (ADF), to help expand and rehabilitate the feeder road system in Nepal to improve access to market, jobs, and health and education centers in rural areas.

Poor road connectivity is a major development constraint for the country, and inadequate feeder roads, or access roads, worsen the isolation of remote rural areas, mostly in northern hilly regions, noted the Manila-based ADB.

''Rehabilitating and expanding feeder roads will help promote inclusive social and economic development. Improved access of remote people to social facilities and jobs in major towns will foster a social and economic development process that can lead to a steady decline in poverty,'' ADB Portfolio Management Specialist Nianshan Zhang said.

The project will construct and upgrade 10 feeder roads and one bridge, to a total of about 490 km, serving poor, isolated people mainly in hilly areas.

This covers the construction of new roads to three district headquarters that are currently not connected to the national highway, and the upgrading of existing district roads to all-weather condition in 17 of the country's 75 districts, affecting about 1.4 million people.

The prospective roads are included in the Government's 10-Year Road Sector Midterm Program.

In addition, a 300,000 dollar technical assistance grant accompanies the project to help the Department of Roads carry out road feasibility studies, and to local construction and consulting services industries in road construction and contract management.

The project is the first new investment to be approved by ADB for Nepal since December 2004, and the country's first to be financed under ADF grant financing.

The total cost of the project is estimated at 80 million dollars, with the OPEC Fund for International Development providing a 10 million dollar loan to finance civil works. The Government will shoulder the balance of 14.8 million dollars, said the ADB.

UNI XC RA DS1618