inception report cover -...

Government of Nepal

Inception Report

Rural Access Programme (RAP) Phase 3

Inception Phase Milestone 2

June 2013

Inception Report Inception Milestone 2

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Inception Report

CONTENTS Contents ............................................................................................................................................... i

Document Control .............................................................................................................................. iii

Acronyms and Abbreviations .............................................................................................................. iv

1. Introduction ................................................................................................................................. 1

2. Use of Implementation Funds during Inception Phase ................................................................ 2

3. Inception Phase Progress and Milestones .................................................................................. 4

3.1. PDO Inc-01. Central Engagement ....................................................................................... 4

3.2. PDO Inc-02. District Engagement ....................................................................................... 5

3.3. PDO Inc-03. DRCN maintenance / Upgrading / New Works ............................................... 6

3.4. PDO Inc-04. Post Monsoon Maintenance (Emergency) ...................................................... 8

3.5. PDO Inc-05. Road Bridge Programme Design .................................................................... 9

3.6. PDO Inc-06. Private Sector Support Plan .......................................................................... 10

3.7. PDO Inc-07. Trail Bridge Programme Design .................................................................... 11

3.8. PDO Inc-08. EI Programme Design................................................................................... 12

3.9. PDO Inc-09. Market System Analysis & IG design ............................................................ 12

3.10. PDO Inc-10. Airport programme consultation .................................................................... 13

3.11. PDO Inc-11. FMS and M&E System Design ..................................................................... 14

4. Demand driven Initiatives .......................................................................................................... 15

4.1. DOR Consultation ............................................................................................................. 15

4.2. Disaster Risk Reduction .................................................................................................... 16

5. Risk Management ..................................................................................................................... 18

6. Inception Phase Budgets .......................................................................................................... 18

7. Annex 1 - Inception Phase Workplan ........................................................................................ 21

8. Annex 2 : Team Structure ......................................................................................................... 26

9. Annex 3: Programme Appreciation ........................................................................................... 26

9.1. Introduction ........................................................................................................................ 26

9.2. New Focus of RAP3 .......................................................................................................... 26

9.3. New Geographic Area ....................................................................................................... 27

9.4. Impacts and outcomes ...................................................................................................... 28

9.5. Maintenance Focus ........................................................................................................... 28


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9.6. Income Generation Beyond RBG/RMGs ........................................................................... 28

9.7. Capacity and Institutional Development ............................................................................ 28

9.8. Contracting and Financing Mechanism ............................................................................. 29

9.9. Institutional and Planning Framework ............................................................................... 30

9.10. Programme Environment ................................................................................................... 30

9.11. Field Visits to RAP3 Districts ............................................................................................. 30

9.12. Political Situation ............................................................................................................... 32

9.13. Access too District Headquarters ...................................................................................... 33

9.14. Summary of RAP2 Lessons and Recommendations for RAP3 ......................................... 33


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DOCUMENT CONTROL

Document revisions and authorisation Details Signature and Date

Version 22 July 2013

Summary of revisions made Final Version incorporating DFID comments

Revisions prepared by Michael Green

Revisions checked by Kirsteen Merrilees

Version authorised by Michael Green

Notes:

• 28-6-13 Submission of first version to DFID


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ACRONYMS AND ABBREVIATIONS ADB Asian Development Bank

AFSP

ARMP

Agriculture and Food Security Project

Annual Road Maintenance Plan

CAAN

DDC

DDF

Civil Aviation Authority of Nepal

District Development Committee

District Development Fund

DFID Department for International Development (UK Aid)

DLI

DOLIDAR

Disbursement Linked Indicator

Department of Local Infrastructure Development and Agricultural Roads

DOR

DRILP

Department of Roads

Decentralised Rural Infrastructure and Livelihoods Project

DRCN

DRSP

District Road Core Network

District Roads Support Programme

DRR

DTMP

Disaster Risk Reduction

District Transport Master Plan

DTO

EI

ERDRR

FMIS

District Technical Office

Economic Infrastructure

Earthquake Recovery and Disaster Risk Reduction Project

Financial Management Information System

GON Government of Nepal

GIZ Gesellschaft fur InternationaleZusammanarbeit (used to be GTZ))

HIMALI

HQ

HVAP

IG

IMCW

KISAN

LRN

High Mountain Agribusiness and Livelihoods Improvement

Head Quarters

High Value Agricultural Project

Income Generating

International Management Consulting Worldwide

Knowledge Based Integrated Sustainable Agriculture and Nutrition Project

Local Road Network

M&E Monitoring and Evaluation

MOFALD Ministry of Federal Affairs and Local Development

NGO

NRRC

NRSAS

Non-Governmental Organisation

Nepal Risk Reduction Consortium

Nepal Road Sector Assessment Study

P4R

PDO

Programme for Results

Programme Development Objective


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RAP Rural Access Programme

RBG

RBN

Road Building Group

Roads Board of Nepal

RMG

RRRSDP

Road Maintenance Group

Rural Reconstruction and Rehabilitation Sector Development Project

RTI Rural Transport Infrastructure

SDC Swiss Agency for Development and Cooperation

SRN Strategic Road Network

SWAp Sector Wide Approach

TA Technical Assistance

TOR Terms of Reference

VDC Village Development Committee

WB World Bank


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1. INTRODUCTION The IMC Proposal stated that the Inception Report would include a summary of survey designs, initial findings from the surveys and feedback from the districts, recommendations on the LogFrame indicators, provisional targets and outline P4R payment mechanisms, including provisional anti-corruption measures.However the Inception Phase was planned to start in March and last 6 full months. This has now shrunk to 4.5 months, of which one month is for DFID review. With an effective duration of only 3.5 months we have therefore reverted to the RAP 3 TOR, which states that the Inception Report should include findings of initial field work and recommendations for the delivery of the rest of the inception phase and provided a Programme Appreciation in Annex 3.

There are five key milestones in the Inception Phase each one linked to a milestone/results payment as shown in Figure 1 below:

Inception Phase Milestones Dates

1. Mobilisation of Team 31st May (Done)

2. Inception Report 28th June (Done)

3. Baseline, milestone, outcome Report 14th August

4. Implementation Plan Report 29th August

5. Contract Agreement Signed 27th September

Figure 1: Inception Phase Milestones1

With the mobilisation of the team completed following an official request from DFID to proceed via email dated 13th May 2013, the Inception Report is the second of five milestones associated with the Inception Phase. The draft was submitted at the end of Juneas planned and, following comments from DFID received on July 15th, the final version is now submitted on 22nd July 2013 but has not been updated beyond the end of June. The Baseline, Milestones and Outcome Report is due on 14th August with the Implementation Plan at the end of August, followed by a month’s review by DFID leading to a Contract Amendment being signed before the end of September when existing RAP 2 contracts will expire.

The Inception Report is built around an Inception Plan using Microsoft Project as illustrated below in Figure 2:

Figure 2: Inception Phase Milestones in Microsoft Project

1 First submission dates shown in Microsoft Project may be +/- 5 days


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This plan is broken into 11 Project Deliverable Objectives or PDOs as follows:

PDO Inc-01. Central Engagement

PDO Inc-02. District Engagement

PDO Inc-03. DRCN Rehabilitation / Upgrading / New

PDO Inc-04. Post Monsoon Maintenance

PDO Inc-05. Road Bridge Programme Design

PDO Inc-06. Private Sector Support Plan

PDO Inc-07. Trail Bridge Programme Design

PDO Inc-08. EI Programme Design

PDO Inc-09. Market System Analysis & IG design

PDO Inc-10. Airport programme consultation

PDO Inc-11. FMS and M&E System Design

In addition there are two additional PDOs that have emerged during the Inception Phase, these being

a. DOR Consultation

b. Disaster Risk Reduction

2. USE OF IMPLEMENTATION FUNDS DURING INCEPTION PHASE During contract negotiations Implementation Phase funds have been brought forward into the Inception Phase to ensure that RAP is well prepared for the first working season in 2013/14.The table below summarises the anticipated drawdown of GBP 202,000 from the implementation fund during the Inception Phase.(See Figure 4 over page)

The expenditure of these funds is linked to a series of Disbursement Linked Indicators (DLI) for each PDO. The example for PDO Inc-01 Central Engagement is shown below in Figure 3 below for DLI Inc – 01.01/02/03.A detailed breakdown of the costs associated with each DLI is detailed in Section 6: Inception Phase Budgets

Figure 3: Disbursement Linked Indicators for Implementation Budget during Inception Phase


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Ref. Districts Implementation Works to start in first year

Activities to be funded through Implementation Fund during Inception Phase

Estimated Implementation Fund expenditure during Inception Phase

1. Centre Annual Support Plans and GON capacity building programme

Review and needs analysis Workshops

4,000

2. 8 Core Districts

Annual Support Plans and capacity building programme

Needs Analysis Workshops

16,000

3. All 14 Districts Improvement of approximately 200km District Road Core Network (DRCN) identified as high priority in DTMPs.

Surveys, detailed designs, possibly start procurement process.

40,000

4. 5 new Core Districts

Emergency post monsoon maintenance on DCRN

Physical works to re‐open roads after monsoon and in time for Dasain festival.

40,000

5. All 14 Districts Bridge maintenance and / or new construction

Surveys, site selection and outline designs (through GON Local Bridge Support Unit)

10,000

6. Centre and All 14 Districts

Private Sector Support Plan to improve works implementation

Needs Analysis Workshop 5,000

7. 8 Core Districts

Trail bridge construction Consult with Trail Bridge SWAp programme to identify priority trail bridges.

2,000

8. 8 Core Districts

Economic infrastructure: market improvements, retrofitting or reconstruction of key DDC offices, schools and health centres in / near District HQ

Surveys, outline designs, possibly start procurement process.

8,000

9. 8 Core Districts

Other economic infrastructure and income generation activities

Market System Analysis 43,000

10. Humla (& Mugu)

CAA Nepal has recently announced plans to improve airports in the region but Humla is not included and may need support for Mugu works

Liaison with Civil Aviation Authority Nepal to determine if support required

2,000

11. Centre and All 14 Districts

FMS and M&E systems design and development

Design and development of FMS and M&E systems

32,000

Total anticipated Implementation Fund Expenditure during Inception Phase 202,000

Figure 4: Implementation Fund Expenditure during inception Phase


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3. INCEPTION PHASE PROGRESS AND MILESTONES For each PDO a short introduction is presented, followed by what progress has been made to the end of June and what milestones have to be achieved during the inception Phase. The Inception Phase strategy is built around a series of workshops/meetings of which the district ones were completed by the end of June. The need for workshops and their timing is shown in the attached project plans for each PDO. The full Inception Phase Workplan shown in Annex 1.

3.1. PDO INC-01. CENTRAL ENGAGEMENT

As part of its strategic approach RAP3 provides institutional support to both central GON institutions as well as the districts participating in the programme. The support for Central GON institutions is based on the Nepal Road Sector Assessment Study (NRSAS) finalised in December 2012 conducted by the World Bank, ADB, SDC and DFID. DFID provided funding through RAP2-RTI Maintenance Pilot in 2011 for 10 out of the 15 LRN studies undertaken. Hence it played a major role in identifying issues facing the LRN sector and proposing Action Plans for solving them in terms of a timeframe and responsibilities, starting with road classification and inventory, road maintenance, planning and prioritisation and outsourcing

Workplan The NRSAS Action Plans for LRN related issues will be used to guide engagement with central GON institutions in 2012/13 and 2013/14 to determine the scope of central support for the first year of RAP 3. Unlike other LRN programmes RAP3 links institutional capacity building to Annual Support Plans for both central and district institutions. LRN issues covered in the LRN NRSAS relate to classification and inventory, financing and planning, road surfacing, road maintenance, bridge management, construction technology, outsourcing, the construction industry, road safety, safeguards, M&E, governance and legislative and policy framework.

Progress As agreed with DOLIDAR RAP3 will focus on building capacity in the areas of governance, monitoring and evaluation, road safety, road construction industry, road sector financing and road maintenance and work in close collaboration with the Local Bridge Support Unit and DOLIDAR Bridge Unit on bridge management. These will include liaison with a number of GON central agencies dealing with the LRN sector ranging from MOFALD and DOLIDAR to RBN and NRRC for DRR.

Milestones Payment Milestones for this PDO follow the outline for design and plan for a series of workshops/meetings with central stakeholders by 8th July to be followed by a draft Support Framework by 20th August. The last milestone is linked to the Approved Support Framework and


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Year 1 Annual Support Plan by 23 September.

3.2. PDO INC-02. DISTRICT ENGAGEMENT

The District Engagement Workshops were introduced into the RTI Pilot, based on experience developed in Vietnam on rural maintenance projects, and proved to be a winning strategy for establishing an Annual Support Strategy for the needs of each individual Pilot district. Tri partite Agreements between the districts, the programme and the DOLIDAR formalise these arrangements and the Support Plans are reviewed and renewed annually. RAP3 will have 14 districts in total, of which six will be former RTI Maintenance Pilot districts and eight will be “core” districts in which income generation and economic infrastructure components will be active.

Workplan

Progress Preparation for Engagement Workshops began some time before the e mail from DFID was issued to commence services for RAP3. The RAP3 central team and RAP3 delivery partners spent two days designing the engagement workshops to examine LRN, Income Generation and Economic Infrastructure issues facing eight districts. These included Humla, Jumla, Mugu, Kalikot, Bhajura, Doti, Achham and Dailekh. Four teams were despatched to the districts during the period 2nd June to 20th June during which time all workshops were completed. Results were analysed during the last week of June.

Milestones There are four DLIs associated with this PDO of which two have been achieved before the end of June including the design and planning of the workshops, the holding of the workshops in eight districts and preparation of workshop reports. By 15th July the Draft Support Frameworks will be prepared defining the scope of support that is to be provided by RAP during the Programme, together with the first year Annual Support Plan at the end of September 2013.

PDO Inc‐01 Central Annual Support PlanDLI.Inc‐01.01 Action plan review, workshop plan Jul 13 Review report, workshop planDLI.Inc‐01.02 Workshop held, report and draft ASP Aug 13 Workshop ProceedingsDLI.Inc‐01.03 Annual Support Plan approved Sep 13 Signed ASP


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3.3. PDO INC-03. DRCN MAINTENANCE / UPGRADING / NEW WORKS

Draft Final DTMPs for the coming 5-year period have recently been completed for all 14 RAP3 Districts using streamlined procedures adopted by GoN under RTI. These identify a minimum District Road Core Network (DRCN) linking all VDCs and prioritise their maintenance and improvement (upgrading) and new construction works to all-weather engineering standardsas defined in the 2013 LRN Standards adopted by MOFALD and DOLIDAR in January 2013 as part of the move towards a sector wide approach and harmonised technical procedures and standards for all donor funded and GON projectsin Nepal.

All network interventions in RAP3 will therefore be prioritisedas follows; emergency, routine, recurrent / specific and periodic maintenance, followed by improvements and new construction. The Districts’ prediction of total annual budget determines how far down the priority lists work can be afforded. Although this represents a significant departure from the traditional proliferation of new, poorly engineered roads to one of caring for existing infrastructure, the principles have been tested by RTI Pilot Project with encouraging results.

By adopting and promoting the approved new, simplified DTMP philosophy, new road construction can be expected to be a relatively small component of RAP3. This arises due to the huge amount of identified ‘improvement works’ (including ‘rehabilitation’ and ‘upgrading’) necessary to bring the existing DRCNs to appropriate all-weather standard which must generally be completed before moving onto new road construction to link unconnected VDCs (estimated at approx. GBP 110 million total based on DTMPs). On this basis only those Districts where there is insignificant existing DRCN and therefore no network to maintain or improve (Humla, Kalikot, Mugu and Bajura) are clear candidates for an early programme of new road construction. For these four Districts, 20km of new road has been identified as an equitable provision within the existing RAP3 budget expected to be dispersed over 14 Districts.

For each District the DTMP forms an important guiding framework for the development of Annual Road Maintenance Plans (ARMP). The total assured budget will determine the extent of work inclusion which is then allocated under the various project fund sources. There is generally insufficient budget to complete even the maintenance needs alone. Therefore maintenance (or ‘conservation’) is where a significant part of the RAP3 budget is expected to be utilised.

PDO Inc‐02 District Annual Support Plans (8 districts)DLI.Inc‐02.01 Workshop Design and Plan May 13 Workshop planDLI.Inc‐02.02 Workshops held & reports prepared Jun 13 Workshop proceedingsDLI.Inc‐02.03 Draft Support Framework & Yr1 ASPs Jul 13 Draft ASPsDLI.Inc‐02.04 ASPs approved, agreements signed Sep 13 Signed ASPs


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Workplan

Progress The Consultant has reviewed all 14 draft DTMPs to identify a likely programme scope for RAP3 funding. On the principle of completing all forms of maintenance before moving to upgrading / new construction, only 4 Districts having little or no existing DRCN are identified for early new-construction potential (Humla, Mugu, Kalikot and Bajura). At the other extreme, the more developed Districts (generally the previous RTI Pilots) have extensive networks with a substantial maintenance demand which may exceed likely fund sources. The remaining three (Jumla, Achham, and Doti) have relatively small networks for which a surplus of maintenance budget may justify an early upgrading / improvement works programme. Key progress so far:

• Identify shortlist of approx. 20km new roads for each of Humla, Mugu, Kalikot and Bajura from draft DTMPs (uncertainties over choice of roads remains),

• Moblise directly-procured survey team to perform desk / walk-over-surveys for these 4 Districts (uncertainties due to access and physical performance during monsoon),

• Commence procurement of consultants to complete designs for Stage-1 construction (track opening) – 4 Districts (exploring means of expediting to the extent allowed by Regulations)

• Possible programme for upgrading projects depends on finalisation of DTMPs, confirmation of priority ranking by the DDC and determination of total DDC DRCN budget including RAP3. Output of this exercise is too uncertain to permit procurement of improvement works design consultants at this stage. However model bidding documents will be developed in preparedness.

• Programme for conservation / maintenance does not require detailed survey (just condition surveys) and thus most of the 1st year programme is likely to fall in this category.

Milestones


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3.4. PDO INC-04. POST MONSOON MAINTENANCE (EMERGENCY)

As the GoN financial year closes on 15th July 2013 there is special provision to set aside a small fund to carry over into the following year for emergency maintenance requirements arising during and immediately following the monsoon (June – September) and before annual GoN budget is released. However this is seldom sufficient and early indications are that the 2013 monsoon may be more severe than usual. Accordingly RAP3 proposes to support this important activity of reopening roads closed by landslides and other urgent repairs through an additional DDF fund allocation. These works are typically small and localised and can be carried out using quick procurement methods involving either User Committees or direct procurement of small works Contractors by straightforward quotation methods.

Emergency maintenance is ranked as the highest priority of all maintenance and works interventions in the DTMP planning tool. The need is generally determined as the quickest intervention needed to restore access on an operational road that has otherwise become blocked typically by landslides during the monsoon. An analysis of more durable solutions comes later often as ‘Specific / Spot – Improvement’ maintenance interventions such as small-scale retaining structures or localised improvements to drainage. It has been included as a separate activity here as it is one of the few physical interventions that RAP3 can undertake using Inception Phase Implementation Budget during and immediately following the monsoon. Generally, emergency maintenance demands are a relatively small proportion (typically around 10%) of a road’s annual maintenance needs.

Workplan

Progress Initial expectation had been to fund just the 5 new Districts (not previously supported by RAP2 or RTI) in 1st Year Emergency Maintenance. However, the postponed start of RAP3 has left inadequate time in which to mobilise resident RAP3 teams and to prepare the necessary legal

PDO Inc‐03 DRCN Improvement / New DesignsNew Track Opening

DLI.Inc‐03.01 Mobilise walkover survey team Jun 13 Mobilisation reportDLI.Inc‐03.02 Issue RFP for Stage 1 Design Jul 13 Copy of RFP issue lettersDLI.Inc‐03.03 Design Consultants appointed Aug 13 Copies of Contract LettersDLI.Inc‐03.04 Designs completed Nov 13

Rehabilitation / ImprovementsDLI.Inc‐03.05 Indicative prioritised list of sub‐projects Jul 13 Copy of List

DLI.Inc‐03.06Review budgets and confirm Y1 sub‐projects

Sep 13 Y1 list

DLI.Inc‐03.07Issue procurement notice (EOI) for design services

Sep 13 Copy of notice


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agreements. As the RTI Pilot Districts are already set-up and accustomed to support funding made through GoN systems they are the most reliable means of assuring effective early implementation of an emergency maintenance programme.

The existing Consultant Teams in each of the 7 existing RTI districts have assessed the likely monsoon emergency needs based on past demand and through consultation with the DTOs. The majority have indicated a shortfall in available budgets which will be made up in part through additional transfers to the DDF.

Milestones

3.5. PDO INC-05. ROAD BRIDGE PROGRAMME DESIGN

One of the key aspects of achieving all-weather accessibility to connect all District VDCs is the adequacy of bridges. The DTMPs prepared by each District covering the future 5-year plan indicate very broadly the likely requirement of bridges for each road of the DRCN in terms of an approximate estimate of total required bridge length. An average cost per linear metre has been factored into the overall cost of a road’s improvement / construction cost. This then determines priority on the basis of least cost to bring a route to maintainable all-weather access, per total population served.

In the Districts where new road construction is identified due to deficient network (Humla, Mugu, Bajura and Kalikot) the requirement for bridges will be highlighted during the new construction walk-over surveys and designs. This will prompt a further plan of detailed investigation and design as may be required.

A number of existing roads have accessibility issues due to causeways and other low-capacity structures which become overloaded during wet periods. A number of these required structures have already been identified and are documented by the DoLIDAR Bridges Support Unit. These are at various stages of technical feasibility study. It is anticipated that bridges in the Small and Medium categories will be suitable candidates for early consideration under the RAP3 programme There are also absent bridges on some of the key DoR SRN roads in Bajura and its neighbouring districts which although not forming part of the scope of RAP3 are still very relevant to the District’s accessibility needs.

Workplan

PDO Inc‐04 Post Monsoon Maintenance

DLI.Inc‐04.01 Works plans and DDF fund transfers Sep 13Copies of works plans and transfer letters

DLI.Inc‐04.02 Works Completed Nov 13 Works Completion Reports


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Progress The Consultant has established communication with the Bridge Support Unit of DoLIDAR in Kathmandu and conducted meetings to ascertain the scope of available information. Accordingly the unit has supplied the Consultant with a detailed list of bridges already identified as being required nationally. This will be further reviewed to extract a list of potential bridge sites covering the DRCN’s in the 14 RAP3 districts. In this way it is expected that a list of bridges having at least some stage of existing feasibility study will enable a more rapid entry into an early bridge construction programme.

Although it had been originally anticipated that some progress with field identification of bridges could have been made during the Inception Period this has proved out-of-the-question due to the onset of severe monsoon conditions. This has not only prevented safe access to the site areas but has also obscured any meaningful visual inspection of the ground characteristics in the likely location of the structural foundations.

Milestones

3.6. PDO INC-06. PRIVATE SECTOR SUPPORT PLAN

As part of efforts to build capacity in the LRN sector the role of the private sector has to date not been a core focus. Instead efforts to build capacity have been concentrated around the role of government and dealing with public sector issues. However, experience from the RTI Pilot demonstrates that capacity building efforts are much more effective if targeted at User Committees and Contractors, either separately or jointly by including both DTO staff and the private sector organisations.

Workplan

Progress Initial meetings to explore how RAP3 can build capacity among User Committees, Contractors and the Consulting sectors have taken place in the last week of June with a view to preparing an outline proposal for a workshop in early August, possibly linked to the IG component of the programme.

Milestones Payment Milestones for a private sector Support Plan include a Workshop Outline Design and Plan by mid-July, a workshop by mid-August and an Annual Support Plan for the Private Sector by mid-September.

PDO Inc‐05 Road Bridge Programme Design

DLI.Inc‐05.01Consultation with GON Bridge support unit

Jul 13 Meeting Notes

DLI.Inc‐05.02 Prioritised list potential sub‐projects Jul 13 Copy of ListDLI.Inc‐05.03 Bridges for Y1 programme identified Sep 13 Yr 1 bridge support plan


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3.7. PDO INC-07. TRAIL BRIDGE PROGRAMME DESIGN

The trail bridge programme, to be implemented by RAP-Helvetas is part of the economic infrastructure component and complementary to both the roads and economic development components. The design of the programme will provide the overall programming framework and the plan for the first year, which will all be made bythe Swiss-supported GoN Trail Bridge SWAp. The plan for the first year will consist of bridges and access trails that are marked as high priority in the Nepal Trail Bridge Directory of 2009, which is the base for the Trails and Bridge SWAp, but which are also linked to the corridors where the rest of RAP is working. The SWAp longlist includes bridges of over 32m which are not all prioritised on basis of scope for economic development. Due to the short time available and the monsoon conditions, it is not possible to visit the field and do detailed screening during the inception period. For the second year and onwards, plans are expected to also include trails and bridges that are identified as bottlenecks to economic development in the RAP-related economic development plans, with a higher proportion of smaller bridges and longer trails2.

Workplan By mid-July the project will have finalised the principles of cooperation, the implementation modalities and the selection criteria, and by mid-August the detailed implementation plan for year 1.

Progress During the first two weeks of the inception period, RAP pertnersHelvetas have agreed on the general outline of the implementation modality and integration with SWAp. Consultation with the Trail Bridge Support Unit has started.

Milestones Payment Milestones will the report on consultations with TBSUs and the Year 1 workplan.

The GoN led Trail Bridge SWAp mentioned here is the same as the Swiss led Trail Bridge SWAp. Prioritization for year 1 is done only by them, while prioritization for year two will be done jointly2

PDO Inc‐06 Private Sector Support PlanDLI.Inc‐06.01 Workshop Outline Design and Plan Jul 13 Workshop planDLI.Inc‐06.02 Workshop held, report and draft ASP Aug 13 Draft ASPDLI.Inc‐06.03 Annual Support Plans approved Sep 13 Signed ASP

PDO Inc‐07 Trail Bridge Programme Design

DLI.Inc‐07.01 Consultation and review SWAp bridge list Jul 13 Review notes

DLI.Inc‐07.02 Prepare RAP3 trail bridge plan Aug 13 Y1 trail bridge plan


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3.8. PDO INC-08. EI PROGRAMME DESIGN

Economic infrastructure will include energy and processing(Winrock), irrigation, storage, market infrastructure, and processing plants (Helvetas and Practical Action each in four districts), bridges and trails (Helvetas, see PDO-Inc-07), and ropeways and tuins (Practical Action). Most economic infrastructure will address bottlenecks in the value chain as identified through the market systems analysis, but this will mostly apply to schemes for Year 2 onwards, because the short inception period and the monsoon weather prevent timely and extensive market system analysis at field level and consultation with potential beneficiaries. Therefore most Year 1 EI will be identified through review of existing district and project plans, and consultation with district actors and economic development projects that are already active in the area (e.g. Knowledge-based Integrated Sustainable Agriculture and Nutrition Project (KISAN/USAID), Agriculture and Food Security Project (AFSP/World Bank), High Mountain Agribusiness and Livelihoods Improvement (HIMALI/ADB), High Value Agriculture Project (HVAP/IFAD). Coordination will be sought with similar infrastructure projects in the area like the DFID-supported Community Support Programme (CARE) and DRILP (Dolidar/ADB). Survey and design work in the more accessible districts will be done from September onwards. The plan will be of necessity tentative and flexible.

Workplan

Progress Data and possible interventions have been discussed at district level during engagement workshops. District annual plans and strategic 5-year plans have been collected. And a start has been made with consulting of economic development projects already active in the area (KISAN, GAFSP, HIMALI, HVAP)

Milestones The two payment milestones will be Year 1 workplan and the report for the mobilisation of design teams in the field.

3.9. PDO INC-09. MARKET SYSTEM ANALYSIS & IG DESIGN

Income generation interventions will cover a wide range of on-farm and off-farm opportunities, e.g. fruits and vegetables in the lower districts and around bazaars, low-weight-high-value non-timber forest products in the mountainous Karnali districts, employable skills training (mechanics, masons) for landless along the roads, and enterprise development related to services for the agriculture sector. Helvetas, Practical Action and Winrock will provide support to groups of producers, processors, traders, transporters, and service providers like nurseries, agrovets and fruit tree

PDO Inc‐08 EI Programme DesignDLI.Inc‐08.01 EI Yr 1 work plan Aug 13 Y1 EI planDLI.Inc‐08.02 Mobilise EI survey & design team Sep 13 Mobilisation Report


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grafters. Most interventions will address bottlenecks in the value chain as identified through the market systems analysis. However, the short inception period and the monsoon weather prevent timely and extensive participatory market system analysis at field level and consultation with potential beneficiaries. Other limitations result from the presence of many other economic development actors in the area and an important activity in the inception period will be consultations with other stakeholders. They also provide an opportunity for synchronisation and cooperation. Most Year 1 IG interventions will be identified through review of existing district and project plans, and consultation with district actors and economic development projects that are already active in the area (e.g. KISAN, GAFSP, HIMALI, HVAP). The plan will be of necessity tentative and flexible.

Workplan RAP3and its delivery partners will jointly undertake identification activities and consultations with other actors. This will result in clarity about the role RAP3 will play in economic development for the various districts, to be discussed in a stakeholders workshop by end July. This will enable to finalise the year 1 plan by mid-August and the start of detailed and participatory planning in accessible areas in September.

Progress Consultations with other actors has started mid-June. Roles among partners have been agreed and the possibilities for participatory MSA during the monsoon assessed.

Milestones The IG stakeholder workshop report, the IG workplan and the field mobilisation report will be payment milestones.

3.10. PDO INC-10. AIRPORT PROGRAMME CONSULTATION

During implementation of the engagement workshops access to the core districts of Humla, Mugu, Kalikot, Bajura and Jumla by road and air proved to be as difficult as expected, in particular to those districts without road access or very poor road access. While Humla has a black top runway both

PDO Inc‐09 IG Programme DesignDLI.Inc‐09.01 Inventory of potential IG opportunities Aug 13 IG Design ReportDLI.Inc‐09.02 IG Yr 1 work plan Aug 13 Y1 IG Work Plan

DLI.Inc‐09.03IG District Planning Workshops held, implementation mechanisms agreed

Sep 13IG Implementation Procedures


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Kolti Airport in Bajura and Talcha Airport in Mugu have gravel surfaced runways that could be upgraded.

Workplan

Progress We are aware of a programme to upgrade airports among the core districts and propose to hold discussions with CAAN to see what options might be available to RAP3 improving accessibility by air to these districts and improving land travel from the airports to the surrounding areas of the districts concerned.

Milestones Payment milestones associated with this PDO include an Initial Consultation Report outlining possible scope for collaboration on upgrading of selected airports by mid-July and, if suitable options are found, an Airport Review Report by mid September.

3.11. PDO INC-11. FMS AND M&E SYSTEM DESIGN

Under this PDO, appropriate, robust and secure financial management (FM) and monitoring and evaluation (M&E) systems will be developed to track the programme progress and provide the requisite information for informed decision making at all levels.

The RAP3 TOR mandates application of results based payment (P4R) mechanisms to all aspects of programme delivery. As per this approach we will use a combination of Programme Development Objectives (PDOs) and Disbursement Linked Indicators (DLIs) to provide the triggers and means of measurement for making predefined lump sum payments. In addition Interim Results Indicators willbe used to track progress towards achievement of a DLI. The proposed mechanism while linking payments to achievement of specific outputs will also link these outputs to specific results, as defined in the Log Frame.

To support holistic management of the programme, a web based Integrated Decision Support System (IDSS) combining Financial Management and Monitoring and Evaluation modules will be established during the first year. This integration of the FMS and M&E will provide complete transparency on programme activities and their respective costs, enabling effective management and Value for Money analysis for all aspects of the programme, as well as supporting the development of localised COST and other transparency initiatives in Nepal.

PDO Inc‐10 Airport Programme ConsultationDLI.Inc‐10.01 Consultations with CAAN Jul 13 Meeting notes

DLI.Inc‐10.02 Agree RAP3 involvement in airports Sep 13Review Report and written agreement


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Workplan

Progress The Financial Management and MIS advisor was mobilised on 19th June, while the M&E Advisor was mobilised on 21st June 2013. Along with the Component Team Leader, they have commenced work on the review of GON, DFID and IMC requirements for the design of FMIS and M&E systems. Initial consultative meetings with DFID and programme stakeholders are ongoing and the broad framework for these systems is being worked out. Based upon this broad framework, reporting formats, systems and procedures would be developed for the FMIS and M&E systems, which after piloting and testing will be incorporated in the RAP3 manual.

Milestones Payment Milestones

4. DEMAND DRIVEN INITIATIVES So far we have DOR Humla SRN and DRR. Moreare likely to arise from the workshops.

4.1. DOR CONSULTATION

Arising from the Workshop in Humla is a proposal that before District roads are constructed, the district should be connected to the rest of Nepal by road. One opportunity is to build a district road north from Mugu to connect with another that links to proposed route to Simikot in Humla. An alternative might be to work with DOR to link Kalikot via the Karnali River Valley to Humla via Bajura.

PDO Inc‐11 Financial and M&E System DesignDLI.Inc‐11.01 Mobilise, review, Develop Key concepts Jul 13 Systems Concepts ReportDLI.Inc‐11.02 FMIS operational Sep 13 FMIS proceduresDLI.Inc‐11.03 M&E baseline formats and plan Sep 13 M&E procedures


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Workplan

Progress Informal discussions with DOLIDAR’s Director General were generally in favour of exploring further these options and informal discussions were held with DOR regarding their plans for construction of the new link. A team of RAP surveyors is currently conducting walk over surveys of potential new roads in Humla, Bajura, Kalikot and Mugu. They will also walk the alignment of the proposed DOR road running north from Kalikot along the Karnali

Milestones There is no approved budget or defined milestones for the development of DOR initiatives during the inception phase.

4.2. DISASTER RISK REDUCTION

DFID has committed to “embedding resilience” in all its programmes by 2015, with Nepal one of six priority countries. Work towards embedding resilience was started under RAP2 through

• Labour based environmentally friendly and participatory (LEP) approach, a low carbon approach which also uses bio-engineering to improve resilience to landslide risks

• adaptation to climate change through improved design standards on RAP2 roads and a review of national road standards, in particular for drainage design, erosion and sedimentation control

• modified retaining structure designs to improve drainage and flexibility for flooding and earthquake risks

• modified bridge designs to adapt to earthquake and glacial lake outburst risks – single span, increased freeboard, more flexible end bearings and lateral restraints

• introduction of resilient crop varieties and crop diversity to support resilient incomes

• reduced vulnerability and improved community resilience and coping strategies for risk events through improved incomes, social networks and empowerment

• reconstruction and retrofitting of public buildings to earthquake resilient standards plus capacity building for resilient structures and disaster risk reduction throughthe Earthquake Recovery and Disaster Risk Reduction (ERDRR) component.

This resilience work is to be expanded and further developed under RAP3. Resilience is already a core feature of RAP3, enshrined in the overall programme objective (impact) and has been captured to some extent in our technical proposal.


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Workplan

.

Progress On 19th June 2013 during a meeting with DFID Nepal, the scope of potential resilience and disaster risk reduction (DRR) interventions appropriate under RAP3 implementation were discussed. The general agreement was that RAP3 should demonstrate that resilience issues are addressed in all of its components, and 6 types of DRR intervention were agreed.

a. DRR in DOLIDAR – ensuring all infrastructure policy documents, technical standards and guidelines embed resilience to disasters and climate change risks

b. Resilient LRN and landslide management – construction of roads and structures to resilient standards and further development ofearly warning systems for road closures to protect lives

c. Resilient EI and Disaster Preparedness Infrastructure – embedding resilience in infrastructure planning and construction, including site selection for all economic infrastructure. Provision of resilient infrastructure to support District and Village Disaster Risk Management Plans (e.g. water tank, emergency supply store, community shelter and relief administration building).

d. Resilient IG and Disaster Preparedness Plans – adapting to climate change and embedding resilience in all aspects of IG programme, with support for DDC and VDC planning processes to integrate development planning, disaster risk management planning and local (climate change) adaptation planning.

e. DRR capacity building – technical training, demonstration projects and on the job training / support for resilient infrastructure and resilient communities.

f. Disaster affected Infrastructure Recovery Programme – a flexible and demand driven initiative to support RAP3 districts to respond quickly and effectively to risk events as they arise. This might include reconstruction or repair to damaged infrastructure, provision or facilitation for procurement and delivery of emergency response supplies, technical assistance and support for disaster risk management plan implementation.

There is a clear need to fully address resilience and disaster risk reduction (DRR) in the development of the RAP3 implementation plans. As such, the RAP3 team structure has been revised to ensure responsibility for embedding resilience and managing DRR interventions is clearly allocated to named individuals. (See Annex 2 for the revised team structure).

All resilience and DRR interventions will build on and be consistent with GoN and DFID climate/disaster proofing approaches/strategies for the sectors relevant to RAP and thework of the National Risk Reduction Consortium (NRRC).


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Milestones There is no approved budget or defined milestones for the development of DRR initiatives during the inception phase.

5. RISK MANAGEMENT A detailed risk matrix will be developed and included in the Baseline, Milestone and Output Report due for submission in mid-August. This will be developed in accordance with ISO 31000 Risk Management Systems guidance and will summarise the findings of our risk assessment and risk evaluation process and define the risk treatment and risk transfer arrangements for each identified risk. The matrix will initially be developed based on the experiences of RAP2 and our delivery partners in delivering similar initiatives, It will evolve over time as we learn more about the location of specific risks in new RAP3 districts andrespond to the findings from our risk event monitoring and changes in the operating environment that might occur.

Below is a record of the logistical risks experienced in conducting eight Engagement Workshops in the new RAP3 districts, which will inform the first version of the risk matrix. The engagement strategy was implemented by four teams of RAP consultants during the period of 2 June to 20th June 2013as follows:

Team 1: Humla and Doti Team 2: Mugu and Jumla Team 3: Kalikot and Dailekh Team 4: Bajura and Achham

Team 1 was delayed for five days by bad weather in Nepalgunj trying to get a flight to Humla. Eventually the team split in two to make sure they were able to keep to the workshop schedule. They were able to maintain contact by telephone with both the districts and Kathmandu.

Team 2 was unable to get a flight to Mugu from Nepalgunj due to more bad weather associated with the start of the very heavy flooding in the west of the country and neighbouring Uttarakhand in India. After three days they decided to make their way by road to Jumla via a very bad section in Kalikot where a shuttle system is in operation because the road is so bad. They then had to walk part of the way to Mugu where they were unable toget a flight out. One of the team’s fathers was admitted to Intensive Careand the team was flown out by helicopter to reach Kathmandu the day before the father died.

Team 3 went by road to Kalikot where the car was stuck for 24 hours. DDC Kalikot sent a vehicle to the other side of the blockage to get the team to the workshop. In Dailekh the team experienced some of the heaviest flooding in 50 years with many of the SRN cut by earth slips. The RAP3 Coordinator was unable to get from Dailekh to Surkhet for three days.

Team 4 was the last to set off and was hit by the full force of the rains which washed the SRN connection to the DDC HQ requiring a 30 kilometre trek in and then out of Martadi. It is reported that hygienic conditions in the town are very poor and the place infested with flies.

Lessons learned during the Engagement exercise have given the team first-hand experience of what to expect when travelling during the early monsoon and these are to be built into the RAP Health and Safety and Risk Management Strategy.

6. INCEPTION PHASE BUDGETS


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The spending of Implementation Funds brought forward into the Inception Phase is linked to the Disbursement Linked Indicators (DLIs) for each PDO. Each DLI has a value attached to it and is linked to a result such as a workshop, a report, a plan or an approval. This will allow RAP to invoice DFID against the DLI’s achieved in each month of the Inception Phase. If this proves to be successful we will apply it to the annual Implementation Plans in the Implementation Phase of the programme.Since this will depend on having a good FM/ME system in place the development of these systems are priorities in the Inception Phase and we plan to have them in place and tested by the end of September 2013.


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Approved Budget

Approved Budget

% payment

Target Date

May‐13 Jun‐13 Jul‐13 Aug‐13 Sep‐13 Balance Evidence for Payment

RAP3 Inception Phase ‐ TA Milestones £161,628 £161,628 100% 16163 48488 0 64651 32326 £0Milestone 1 Mobilisation of Core Team £16,163 £16,163 10% May 13 16163 0 0 0 0 Mobilisation ReportMilestone 2 Inception Report £48,488 £48,488 30% Jun 13 0 48488 0 0 0 Inception ReportMilestone 3 Baseline, milestone, outcome Report £64,651 £64,651 40% Aug 13 0 0 0 64651 0 BMO ReportMilestone 4 Implementation Plan Report £16,163 £16,163 10% Sep 13 0 0 0 0 16163 Imp. Plan ReportMilestone 5 Contract Amendment Signed £16,163 £16,163 10% Sep 13 0 0 0 0 16163 Signed Contract Amendment

RAP3 Inception Phase ‐ Implementation Budget Approved Budget

Approved Budget

% payment

Target Date

May‐13 Jun‐13 Jul‐13 Aug‐13 Sep‐13 Balance Evidence for Payment

PDO Inc‐01 Central Annual Support Plan £4,000 £4,000 100% 0 0 800 3000 200 £0DLI.Inc‐01.01 Action plan review, workshop plan £800 £800 20% Jul 13 0 0 800 0 0 Review report, workshop planDLI.Inc‐01.02 Workshop held, report and draft ASP £3,000 £3,000 75% Aug 13 0 0 0 3000 0 Workshop ProceedingsDLI.Inc‐01.03 Annual Support Plan approved £200 £200 5% Sep 13 0 0 0 0 200 Signed ASP

PDO Inc‐02 District Annual Support Plans (8 districts) £16,000 £16,000 100% 1600 9600 4000 0 800 £0DLI.Inc‐02.01 Workshop Design and Plan £1,600 £1,600 10% May 13 1600 0 0 0 0 Workshop planDLI.Inc‐02.02 Workshops held & reports prepared £9,600 £9,600 60% Jun 13 0 9600 0 0 0 Workshop proceedingsDLI.Inc‐02.03 Draft Support Framework & Yr1 ASPs £4,000 £4,000 25% Jul 13 0 0 4000 0 0 Draft ASPsDLI.Inc‐02.04 ASPs approved, agreements signed £800 £800 5% Sep 13 0 0 0 0 800 Signed ASPs

PDO Inc‐03 DRCN Improvement / New Designs £40,000 £40,000 100% 0 4000 20000 8000 8000 £0New Track Opening

DLI.Inc‐03.01 Mobilise walkover survey team £4,000 £4,000 10% Jun 13 0 4000 0 0 0 Mobilisation reportDLI.Inc‐03.02 Issue RFP for Stage 1 Design £18,000 £18,000 45% Jul 13 0 0 18000 0 0 Copy of RFP issue lettersDLI.Inc‐03.03 Design Consultants appointed £8,000 £8,000 20% Aug 13 0 0 0 8000 0 Copies of Contract LettersDLI.Inc‐03.04 Designs completed £0 £0 0% Nov 13 0 0 0 0 0

Rehabilitation / ImprovementsDLI.Inc‐03.05 Indicative prioritised list of sub‐projects £2,000 £2,000 5% Jul 13 0 0 2000 0 0 Copy of List

DLI.Inc‐03.06Review budgets and confirm Y1 sub‐projects

£2,000 £2,000 5% Sep 13 0 0 0 0 2000 Y1 list

DLI.Inc‐03.07Issue procurement notice (EOI) for design services

£6,000 £6,000 15% Sep 13 0 0 0 0 6000 Copy of notice

PDO Inc‐04 Post Monsoon Maintenance £40,000 £40,000 100% 0 0 0 0 40000 £0

DLI.Inc‐04.01 Works plans and DDF fund transfers £40,000 £40,000 100% Sep 13 0 0 0 0 40000Copies of works plans and transfer letters

DLI.Inc‐04.02 Works Completed £0 £0 0% Nov 13 0 0 0 0 0 Works Completion Reports

PDO Inc‐05 Road Bridge Programme Design £10,000 £10,000 100% 0 0 3000 0 7000 £0

DLI.Inc‐05.01Consultation with GON Bridge support unit

£1,000 £1,000 10% Jul 13 0 0 1000 0 0 Meeting Notes

DLI.Inc‐05.02 Prioritised list potential sub‐projects £2,000 £2,000 20% Jul 13 0 0 2000 0 0 Copy of ListDLI.Inc‐05.03 Bridges for Y1 programme identified £7,000 £7,000 70% Sep 13 0 0 0 0 7000 Yr 1 bridge support plan

PDO Inc‐06 Private Sector Support Plan £5,000 £5,000 100% 0 0 1000 3750 250 £0DLI.Inc‐06.01 Workshop Outline Design and Plan £1,000 £1,000 20% Jul 13 0 0 1000 0 0 Workshop planDLI.Inc‐06.02 Workshop held, report and draft ASP £3,750 £3,750 75% Aug 13 0 0 0 3750 0 Draft ASPDLI.Inc‐06.03 Annual Support Plans approved £250 £250 5% Sep 13 0 0 0 0 250 Signed ASP

PDO Inc‐07 Trail Bridge Programme Design £2,000 £2,000 100% 0 0 400 1600 0 £0

DLI.Inc‐07.01 Consultation and review SWAp bridge list £400 £400 20% Jul 13 0 0 400 0 0 Review notes

DLI.Inc‐07.02 Prepare RAP3 trail bridge plan £1,600 £1,600 80% Aug 13 0 0 0 1600 0 Y1 trail bridge plan

PDO Inc‐08 EI Programme Design £8,000 £8,000 100% 0 0 0 1600 6400 £0DLI.Inc‐08.01 EI Yr 1 work plan £1,600 £1,600 20% Aug 13 0 0 0 1600 0 Y1 EI planDLI.Inc‐08.02 Mobilise EI survey & design team £6,400 £6,400 80% Sep 13 0 0 0 0 6400 Mobilisation Report

PDO Inc‐09 IG Programme Design £43,000 £43,000 100% 0 0 0 17200 25800 £0DLI.Inc‐09.01 Inventory of potential IG opportunities £12,900 £12,900 30% Aug 13 0 0 0 12900 0 IG Design ReportDLI.Inc‐09.02 IG Yr 1 work plan £4,300 £4,300 10% Aug 13 0 0 0 4300 0 Y1 IG Work Plan

DLI.Inc‐09.03IG District Planning Workshops held, implementation mechanisms agreed

£25,800 £25,800 60% Sep 13 0 0 0 0 25800IG Implementation Procedures

PDO Inc‐10 Airport Programme Consultation £2,000 £2,000 100% 0 0 600 0 1400 £0DLI.Inc‐10.01 Consultations with CAAN £600 £600 30% Jul 13 0 0 600 0 0 Meeting notes

DLI.Inc‐10.02 Agree RAP3 involvement in airports £1,400 £1,400 70% Sep 13 0 0 0 0 1400Review Report and written agreement

PDO Inc‐11 Financial and M&E System Design £32,000 £32,000 100% 0 0 3200 0 28800 £0DLI.Inc‐11.01 Mobilise, review, Develop Key concepts £3,200 £3,200 10% Jul 13 0 0 3200 0 0 Systems Concepts ReportDLI.Inc‐11.02 FMIS operational £19,200 £19,200 60% Sep 13 0 0 0 0 19200 FMIS proceduresDLI.Inc‐11.03 M&E baseline formats and plan £9,600 £9,600 30% Sep 13 0 0 0 0 9600 M&E procedures

Demand Driven Initiatives £0 £0na DOR Consultations ‐ Humla SRN Sep 13na DRR / Resilience Implementation Plan Sep 13

TOTAL TA Payments 161,628 161,628 16,163 48,488 ‐ 64,651 32,326 £0TOTAL Implementation Payments 202,000 202,000 1,600 13,600 33,000 35,150 118,650 £0Total Payments Due 363,628 17,763 62,088 33,000 99,801 150,976 Cumulative 17,763 79,851 112,851 212,652 363,628


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7. ANNEX 1 - INCEPTION PHASE WORKPLAN


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8. ANNEX 2 : TEAM STRUCTURE

9. ANNEX 3: PROGRAMME APPRECIATION

9.1. INTRODUCTION

DFID’s Rural Access Programme (RAP) has been implemented since 2001. Its success can be linked to:

an effective and thorough design phase;

the ability of the programme management to be flexible and adapt to changes in the socio-political environment; and

the development and application of innovative working practices and collaborative partnership arrangements.

RAP is one of the few programmes that managed to continue operations at field level throughout theconflict period, providing incomes, peace dividends and support for the poor and excluded. Over time, RAP has evolved, through several stages, to reflect changing circumstances, and GON (Government of Nepal) and DFID objectives and approaches. RAP3takes the programme to the next phase of this evolution.

9.2. NEW FOCUS OF RAP3

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RAP3 replicates the approaches and methods applied on the previous RAP phases, though with a number of significant differences, and applied in different geographical areas.

9.3. NEW GEOGRAPHIC AREA

The previous phases of RAP concentrated on two district clusters, one in the East and one in the West.These clusters were selected to provide road access to districts that, at that time, had no roads. Thisfilled a critical gap in district accessibility in the middle hills – most other middle hill districts were alreadyconnected. Now, accessibility in all of these districts is much improved and, in the East in particular, hascontributed significantly to economic growth in these clusters.

Having achieved DFID’s poverty reduction objectives in the old RAP districts, it is appropriate to find anew district cluster to support. The area selected includes the poorest and least accessible districts inNepal, covering parts of the Karnali, Seti and Bheri Zones in the Far and Mid-West Regions. The area canbe divided into three bands, roughly approximating to their distance from the Terai and the main Strategic Road Network.

1. Dailekh, Achham and Doti1: good access to district headquarters and reasonable seasonal roadaccess within the district; some parts are at high altitude and affected by snow; high poverty incidence but have generally adequate food availability; and have benefited from previous RAP phases.

2. Bajura, Kalikot and Jumla: difficult road access to district headquarters and limited access withinthe districts; high altitude, affected by monsoon in summer and snow in winter; high povertyincidence; food insecurity in some places and poor quality food in others.

3. Humla and Mugu: no or difficult road access to district headquarters and air access often limitedby weather conditions; high altitude with some parts north west of a range of high peaks and intheir rain shadow (closer links to China, drier climate and different construction season from therest of Nepal); extremely high poverty incidence; food insecurity; and isolated communities.

The first band reflects the characteristics of typical middle hill RAP districts. The approaches andtechnical methodologies applied on RAP will need to be adapted to reflect the more difficultgeographical and working conditions in the two higher bands of RAP3 districts.

In addition to the eight coreRAP3 districts listed in the TOR, the programme will continue to support

the seven RTI Pilot (Rural Transport Infrastructure) districts. These are:

Dadeldhura – Far Western Nepal, middle hills, adjacent to Doti

Dailekh - Mid-Western Nepal, middle hills, already included as core RAP3 district

Jhapa – Eastern Nepal, Terai

Morang – Eastern Nepal, Terai

Parbat – Western Nepal, middle hills

Sankhuwasabha – Eastern Nepal, mountainous

Sindhupulchowk – Central Nepal, middle hills / mountainous

The pilot districts provide an important mechanism for introducing and further developing advances andinnovations, not only for road maintenance and LRN (local road network) policy and harmonisation, butalso for some of the innovations in the wider RAP3 components. The pilot districts are generally moreadvanced and, building on the relationships developed during the pilot implementation, would be morelikely to trust us to introduce innovations for testing and demonstration purposes than the core RAP3 districts.


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9.4. IMPACTS AND OUTCOMES

The overall objectives (impacts and outcomes) of RAP3 are similar to those of the previous RAP phases,but with more emphasis on:

sustainable access (maintenance);

short term income generation (beyond RBG/ RMGs2 employed on works);

capacity and institutional development; and

contracting and output based financing.

9.5. MAINTENANCE FOCUS

In recent years GON has increasingly changed its LRN priorities to focus on maintenance rather thanexpansion. This response has been strengthened by MoFALD3’s SWAp4 Programme assessment of LRNstatus, which indicates that 55% of the LRN is no longer motorable due to a lack of maintenance,threatening the sustainability of LRN investment, its impact on poverty and undermining the whole socialand economic rationale of LRN investment funding.DFID played a significant role in supporting the move towards maintenance through its RTI SectorMaintenance Pilot, a component of RAP2. The RTI pilot has worked closely with the MoFALD SWApProgramme and its pilot districts to develop maintenance planning and implementation guidelines andto introduce the concept of LRN Asset Management as a step towards technical harmonisation andlonger term SWAp goals.

RAP3 will build on the work of the RTI Pilot to raise the profile of maintenance and make it an integralpart of LRN Asset Management - focusing on maintenance and management of the whole network,rather than a ‘tagged on’ component only applied on completed project roads as it has been on mostprevious rural infrastructure projects.

9.6. INCOME GENERATION BEYOND RBG/RMGS

RAP developed successful approaches and implementation mechanisms to deliver a range of incomegeneration support to its Road Building Groups based on worker savings over several years ofemployment in construction of RAP roads. RAP3 will build on this experience, but will have widerincome generation support than has previously been the case.The numbers and dynamics of the road maintenance or building groups (RMG / RBG) will be different tothose under previous phases of RAP. This means that the poverty reduction objectives and related outcome targets for RAP3 cannot be achieved through these groups’ wage savings alone, and that theincome generation support initiatives need to be extended to the wider community living along theexisting road network.The successful approaches and implementation mechanisms developed under RAP will continue tosupport income generation support to RMG/RBGs, with expansion to economic cooperatives, farmerassociations, tourism development initiatives in the rural transport impact area (RTIA), and migrant workers from the area. RAP3 will also build on recent advances and access to ICT (Information andCommunications Technology) and finance in rural areas of Nepal, to develop and introduce theseinnovations in the RAP3 districts. Where appropriate, these will be implemented through existingprogrammes, extending their reach to RAP3 beneficiaries and providing improved value for money.

9.7. CAPACITY AND INSTITUTIONAL DEVELOPMENT

The capacity and institutional development focus builds specifically on the RTI Pilot component of RAP2,and will focus specifically in supporting GON to achieve its SWAp objectives. The SWAp


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objectives andLRN Action Plan adopted by DoLIDAR to develop the next generation of LRN projects are reflected clearly in the RAP3 TOR. These include:

Pursuit of a common set of LRN policies and adoption of a single, GON led approach and SWApprocedures.

Outsourcing to the private sector to tackle capacity and governance issues.

Using area based clusters of districts for TA support funded by donors.

Provide capacity to GON staff, concentrating on management.

Adopting a harmonised Asset Management Approach for LRN and using M&E to demonstrate

LRN impact.

Adopting joint funding mechanisms for LRN maintenance works.

9.8. CONTRACTING AND FINANCING MECHANISM

The original design and start of RAP Phase 1 included fund flows through the elected DistrictDevelopment Committees (DDCs) established under the Local Self Governance Act (LSGA) and technicalsupport for procurement and management to contractors. This later changed to direct funding andimplementation to overcome weakened government and its ability to operate during the insurgency andsubsequent conflict. Direct funding has clear advantages in terms of full control over implementationtransparency and accountability in financial management. However, it can be a barrier to effectivepartnerships and cooperation with central GON and DDCs, and does not support the long term SWApobjectives.

The RAP2 supplementary infrastructure component is implemented fully through the DDC, with limitedtechnical support and the RAP technical assistance team playing only a monitoring role. There have beenmany difficulties with this component in terms of delays in works progress and payments to usercommittees for works done.

The more recent RTI Pilot has developed a compromise that satisfies the desire to operate through GONsystems. This uses technical support from the TA team and additional checks at key stages ofprocurement and payment processes, enabling implementation targets to be met whilst providingtransparency and accountability in implementation. The Earthquake Resilience and Disaster RiskReduction (ERDRR) component of RAP2 has also successfully applied this same mechanism in thereconstruction of schools.

Since August 2012, the RTI Pilot has also been testing a Programme for Results (P4R) approach tomaintenance works implementation linked to District Transport Master Plans (DTMPs) and Annual RoadMaintenance Plans (ARMPs) and associated results based support for central and district GON partnersto make progress towards SWAp objectives.

The key to RAP3 is to find the most effective balance between:

the initiatives that can be implemented through GON systems from the outset, e.g. maintenanceworks;

those that will start as direct funding but may be able to transfer to GON systems once atangible, transparent and verifiable system has been developed and accountabilitydemonstrated;

andthose that will not be transferred to GON systems in the lifetime of the RAP3 programme (e.g.income generation support).


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9.9. INSTITUTIONAL AND PLANNING FRAMEWORK

RAP3 will be implemented under the authority and supervision of the Ministry of Federal Affairs andLocal Development (MoFALD), the Department of Local Infrastructure Development and AgriculturalRoads (DoLIDAR) and the participating District Development Committees (DDCs). Under MoFALD, there are two distinct routes for the planning of development interventions and for local road network interventions. In terms of RAP3, the components fall into these two routes as follows:

Development Planning Route –Economic infrastructure, income generation support

LRN Planning Route –Road maintenance, upgrading / rehabilitation and new construction

The seven development planning sub sectors include: i) Local transportation, ii) Irrigation and river control, iii) Micro hydropowerand alternative energy, iv) watersupply, sewerage and sanitation, v) Housing, building and urban development, vi) Solid wastemanagement and vii) Social infrastructure. Source: Local Infrastructure Development Policy 2061.

In addition to the main planning routes, the District Technical Office (DTO) submits the DTMP and ARMPto the DDC for review and approval by the Local Development Officer (LDO). ARMPs are also submittedto the Road Board Nepal (RBN) and DoLIDAR and trigger central maintenance funding.

9.10. PROGRAMME ENVIRONMENT

Nepal is a high risk environment. It suffers from:

frequent occurrences of natural disasters including floods, fires, landslips and earthquakes, withinadequate and uncoordinated preparation and response mechanisms;

poor governance at central and local levels, a lack of transparency and accountability in decisionmaking, and high levels of corruption; and

political unrest, with frequent forced road and market closures and demonstrations (mostlypeaceful though with occasional violence and damage to property).

We have been working and have had a continued presence in Nepal for over 20 years, and havedeveloped working methods and approaches that have allowed us to continue field operationsthroughout the conflict period. We have therefore demonstrated that we are flexible and adaptive. Ourapproach and methodology recognises and includes measures to mitigate and manage these risks in linewith the DFID/GIZ Risk Management Office (RMO) Risk Management Policy pack (2012) and the BasicOperating Guidelines (BOG) adopted by a range of donor partners.

9.11. FIELD VISITS TO RAP3 DISTRICTS

During the proposal preparation period and Inception Phase Engagement Workshops, we visited the new RAP3 districts to get a betteridea of the operating environment and challenges we will be likely to face during RAP3 implementation. The main findings from our field trip havebeen key to adapting and developing our approach and methodology for the new RAP3 districts.

A summary of the key issues identified during the field visits is presented below.

Logistics Issues Most DDCs and DTOs have agreed to provide office space for our teams, but in the more

remotedistricts no space is available and it is difficult to find rooms to rent nearby. Those that areavailable are of a poor standard and unsafe. It may be necessary to construct a purpose builtoffice and accommodation; these logistical risks need to be accounted for in financialcontingencies.


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Transportation costs increase significantly in the districts with poor or no road access – Bajura,Mugu, and Humla.

We may need to import food and other essential commodities for our staff, partners andworkers in Bajura, Mugu and Humla.

Social Issues There is extreme gender discrimination and poor treatment of women in all RAP3

districts,though women’s participation is increasing with support from various programmes andorganisations.

Where there is food insecurity and women have minimal rights over household finances, theyrefer labour wages to be paid at least partially in food rather than cash.

In the middle hill districts, caste discrimination can be a problem and there are reports of violentdiscriminatory attacks.

Seasonal out-migration is high in all RAP3 districts, primarily to India and the Terai. Jumla hasin-migration from Mugu district. The improved economic opportunities brought about byimproved access to DHQs (District Headquarters) have helped reduce the out-migration in somedistricts. These same districts also have in-migration from other VDCs (Village DevelopmentCommittees) in the district leading to urbanisation of DHQs. The more remote districts havesignificant permanent out-migration to the Terai and Siwalik districts.

Economic Issues All RAP3 districts are food deficient, with only one-third of the population or less having all

year round food security.

All districts have similar livelihoods resources and similar crops and products. The economicvalue of these reduces significantly the further north, and hence the more remote and lessfertile, the district is. 23% of land in Dailekh is agriculturally productive, 11% in Kalikot, 16% inJumla, 7% in Bajura, and less than 1% in Humla.

Implementation Issues

Generally there is sufficient labour for the LEP approach, though for some larger construction /upgrading works it may be necessary to import labour from other parts of the district.

The construction season is generally seven months, taking into account the festival and monsoonseasons, though this reduces to four months in some of the highest and most northern areas.

Kalikot and Humla have reported difficulties in road construction due to sections going throughhard rock, very steep slopes and cliff faces. The RAP2 experience in Dailekh reinforces theseconcerns along with further difficulties of working at high altitude and in remote areas.

Climate change impacts are evident in changing precipitation patterns, with general reduction inprecipitation leading to water shortages – though with occasional incidents contrary to thegeneral trend, for example last year’s massive snowfall in Jumla.


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Landslides and floods are the main natural disasters causing problems in the districts, thoughearthquakes have been felt recently in some places.

There are lots of other programmes and organisations working in the districts that we willcoordinate and work in partnership with to deliver more effective support for improvedlivelihoods.

There are also many local NGOs active in the districts, though concerns have been raisedbecause of their political affiliations – they are seen as the tools of politicians rather thanindependent service and support providers.

Political Issues All the main national parties are present in all the districts and generally exert the most

influenceover district decision making. There is general support for the coming of RAP3 to the districts,and requests for certain road corridors in particular.

In the districts that have no or limited road access, there is an element of protest against theLEP approach. They have had LEP projects for 10 years or more, but they still have no access.This is because some sections are too difficult for purely labour based approaches and they canonly be opened with the use of equipment and / or explosives. A compromise solution needs tobe found if the RAP3 support to these districts is to be sustainable.

9.12. POLITICAL SITUATION

Politics in Nepal invades every aspect of life through frequent bandhs (forced closures of offices, marketsand roads) and occasional local protests, all of which impede good development work. National levelpolitics has a significant impact in terms of hindering the development planning and budgeting processand with bandhs and protests in the Kathmandu Valley and on the national highways. Far moresignificant for programme implementation, though, is District level politics, which do vary considerablybetween districts. In some districts, the representatives of the political parties choose to work togetherfor the good of the people in their districts (rare, but it does happen). In others, the politicians put theirpower struggles over and above all else resulting in the blocking of many development interventions,especially those that rely on GON systems.

Our meetings with political party representatives in the above districts and the feedback from ourdiscussions are summarised below:

Currently things are reasonably stable with effective but fragile relationships between districtofficials and political parties. However, if the national elections and re-introduction of districtlevel elections are not held soon, it is feared that some extremist elements of the establishedparties may cause problems. The longer the delay in resolving the national political crisis andholding elections, the more likely district level politics will turn aggressive with more frequentbandhs and protests being called, and potentially more violence and hostage taking.

Even if the elections take place, there are concerns that those who gain power through theelection process will attempt to humiliate the officials that did not openly support them, leadingto further conflict and lack of cooperation.

Development programmes are under pressure to make donations or award contracts toparticular parties or factions. It is also likely that there will be significant civil unrest andincreased political threats and violence during the election process, which will inevitably disruptimplementation of all programmes. The DFID / GTZ SEDC and BOG guidelines provide somemeans of handling this, but there is a risk of our staff being put in difficult situations – some ofour staff already have experience of this and one (working for GTZ at


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the time) was beaten andheld hostage for a few days. In our experience of working in such an environment it is importantthat staff are all aware that if they feel threatened, we will support them in any action ordecision they make at that time.

Each Party in the district prioritises the roads and other interventions in its stronghold areas,affecting planning and decision making processes. The locally registered NGOs are generally alltied to political parties. Transparent and evidence based decision making processes can go someway to overcoming this, as has been demonstrated by the RTI Pilot.

Ethnic tensions are not so prevalent in the hilly and mountainous districts, but castediscrimination is a problem in most of the districts.Despite all this, the political representatives have all expressed their support for the programme andthat, subject to direct orders from their party head-quarters, they will try not to hinder the developmentprocess as long as they can see the direct benefit to the people in the district. This is similar to the RAPsituation during the conflict period when the programme managed to continue operations, albeit at aslower pace than originally planned. Although there were some difficult incidents, opposing factions didsupport the programme and helped resolve many of the difficulties encountered.

The All Party Mechanism (APM), officially dissolved by MoFALD, but still operating in practice as there isno alternative mechanism to replace it, provides the only form of local community representation indistrict level decision making. There are many disadvantages to the APM, especially the ad hoc natureand lack of transparency and accountability in decision making, but it is essential that it is included in alllocal level consultations and decision making processes. Our experience on RAP2 and the RTI Pilotdemonstrates that effective engagement of the APM in evidence based decision making, and throughneutral, transparent and accountable programme delivery, can gain their trust to support programmeimplementation and overcome some of the difficulties caused by political conflict.

Our Risk Management Strategy will incorporate these political risks and the likelihood of significantdisruption to the programme associated with the planned election process and its outcomes.9 Safe and Effective Development in Conflict; Basic Operating Guidelines

9.13. ACCESS TOO DISTRICT HEADQUARTERS

There are two distinct SRN corridors in the project area,oneconnecting Bajura, Achham and Doti to the Terai, the other connecting Mugu, Jumla, and Kalikot.Dailekh is connected via its own spur with Surkhet. Humla DHQ has no road access at all.The road to Doti and the boundary with Achham is all weather and in good condition. The road toAchham is seasonal but in good / fair condition. The road to Bajura is seasonal and in very poorcondition, making air travel a shorter duration and more reliable transport option but not during the monsoon.The road to Kalikot is all weather and in good condition, but from there the roads to Jumla and Mugu arein very poor condition. DOR are currently upgrading the Kalikot – Jumla road, but it is a three-dayjourney by vehicle between these districts due to the blockages caused by the construction works.

9.14. SUMMARY OF RAP2 LESSONS AND RECOMMENDATIONS FOR RAP3

Programme Design

1 RAP2 has been able to achieve remarkable results and positive impacts in its programme areas. Poverty related misery is rampant in remote areas of Nepal and, therefore, remoteness should be a major criterion for area selectionand poverty alleviation a core theme of any programme/project geared to the development of a conflict affected country.

2 Development programmes can address the consequences of conflict on poor communities by adopting of a


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semi-humanitarian approach, i.e. targeted, quickly delivered and tangible outputs outside the government structures. RAP shows that project approaches with direct funding can be adapted not only to fragile contexts but also to situations of armed conflict in a flexible and innovative way.

3 Mainstreaming of social inclusion, including gender, contributes to peace building and RAP has had success in this. It also deserves credit for the growing involvement of representative organisations of excluded groups in national debates.

4 One of the lessons learned from RAP2 is that a feasible future road maintenance plan with clearly identified responsibilities, capacities and resources should be a precondition for investments in constructing or improving rural roads infrastructure.

5 Selection of roads for implementation is one area where unrealistic expectations may be raised and where questions of transparency and corruption may arise and present a bad image..

6 As poverty is one of the major reasons behind conflict in society, income generating activities on a significant scale should be a major focus of any programme. Support to IG should be backed by a strong team of IG professionals to provide technical backstopping services to the local people. Attempts should be made to tap IG professionals at local level. On-farm income generating activities should be the major focus but non-farm IG activities should focus on addressing poor and disadvantaged households.

7 Linkages with related line agencies and other organizations working with similar issues in the community must be built strongly into any programme to tap the expertise and resources available in the environment.

8 Minimisation of possible detrimental impacts in fragile ecologies existing in hills and mountains of Nepal should be central to the approach to road construction. The “transport plus” labour-based and environment friendly approach of road construction of RAP is very suitable for the fragile environmental conditions of Nepal. This can help to avoid negative consequences which can arise from target-driven building of bulldozed roads in rural hills of Nepal.

9 A pertinent issue is related to the effect on the sense of ownership of RAP2 activities at the DDC level after entrusting the implementation funds to the TA team to speed up delivery of the RAP I schedule.

10 Lessons from the RAP2 indicate that quick results and impacts should be the initial strategy in a conflict-afflicted situation. The project management model must to take account of the availability and effectiveness of government authorities at the local level. This often means setting up a special project management unit.

11 There should always be a carefully planned exit strategy involving handover to government or other local authorities or institutions. This exit strategy should be formulated during project design and updated throughout the implementation as local conditions change

Programme Implementation

Technical Area / Component

Risks / Challenges

Mitigation Measures Success factors

Road Maintenance, upgrading, new construction – to employ poor and dis-advantaged groups and ensure improved ,sustainable and climate resilient access to markets and services

Labour availability and low outputs of RBGs

Labour-availability surveys to assess local labour resource; agreement with LRUC to use special building groups (SBG) to replace non-performing RBGs and at difficult locations; use of hand and pneumatic drills for rock breaking; low-tech tractor-based mechanisation

Drill resource centrally managed in RAP2 to assure effectiveness and reduce risk from critical works.

Motivate LRUC to deal with non-performing groups

RBG men at work under influence of alcohol – predominant in RAP2.1 districts

RBGs made aware of Code of Works ethics at orientation training; set in place guidelines for RBG/LRUC to monitor and deal with defaulters; programme support to local initiatives to curb drink abuse

LRUC and local community groups are willing to monitor alcohol abuse

Impact of Co-opt partner organisations logistics Joined-up logistics with


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remoteness on logistics, supplies and staffing

and field support units; procurement strategy to account for constraints

partner organisation working in RAP2.1 districts

Capacity limitations of SC and NGOs

Engage local field staff or train fresh graduates from local technical centers – for supervision and social mobilisation function; include needs-based training in CIDP

RAP to redress low morale of SC and NGO field staff by providing field training workshops

Non-adherence to Work Safety procedures

Awareness raising programme for RBG and SC / NGO field staff; LRUC monitoring for safety and quality; a reward scheme for high performing RBGs and naming habitual defaulters at Public Audits

Prominent display of ‘safety at work’ signs at critical work locations.

RAP, SC and NGO staff to ‘walk the talk’ and check for compliance to safety wear.

Work measure and Payments

A 2-monthly technical workshop in each district to check and verify work-measure against physical outputs, quality of work and completeness of site records

RAP experience shows a marked improvement in motivation of SC staff

Accidents and fatalities – negative impact on RBG morale and stoppage

of works

RAP-managed occupational insurance to ensure prompt payment and support to bereaved family; RAP/LRUC process to motivate RBG return to work

Prompt action to deal with the emergency and immediate support to families, through an established insurance scheme

Threats and intimidation against RAP staff by local gangsters

Inform RMO and Police and seek LRCC/LRUC’s support to deal with the intimidator

Khotang- public shaming of an intimidator by LRUC a success

Delays due to tractor supply and quarry cartels - weak contractual climate

Solicit LRUC support in resolving bottlenecks but ensure large programme float and contingency

Community / LRUC pressure to break the cartels

Wage payment distribution by the elected LRUC money carriers

Use of mobiles and IT applications to track movements of carriers and community lookouts.

Update measures on RMO advisory briefs.

Support to strengthen community policing and strategic lookouts. RBG’s collect payments rather than LRUC to reduce temptation

SBG cartels and its impact on RBG work culture

Award competitive labour-supply contracts on a piece-work basis instead and monitor compliance to RAP operational guidelines

No motivation to resort to corrupt practices since a LS contract.

Provision of Economic infrastructure works – to complement the income generation programme, to enhance livelihood potential and access to markets

Selection of sub-projects hijacked by local politicos and elites if left for DDC’s to decide – leads to poor project selection

RAP to manage the selection process validating DDPs selection through a technical and social impact feasibility study to ensure local ownership of sub-projects

Mass public consultations to demonstrate a fair and transparent selection process

Assure a strong buy-in from users groups normally through voluntary contributions.

Assure there is no conflict with other users


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with little buy-in from end-users

of natural resource

Weak DDC capacity– often leads to delayed or under- payments and quality compromise

RAP to manage the implementation and supervision of sub-projects, in partnership with DDC, and switch to P4R mechanism

Include mass Public Audit – quality and financial – in UG agreements

Income generation support – to enhance and sustain the impact of investment through increased levels of economic activity

Resistance of RBG/RMGs to invest in income generation schemes – more prevalent in RAP2.1 districts

Demonstration and facilitation of RBG interaction with lead farmers – peer-peer learning

RAP to underwrite some of the investment risks to motivate undecided investors

Identify lead farmers and change leaders early in the programme and co-opt them in motivational initiatives

Limited NGO capacity to implement the SED programme

Structured training and OJT programme to raise NGO staff competencies.

Partner organisations and district based DAOs used to access specialists in agriculture, livestock, tourism development etc.

Partner with other programmes using local NGOs to develop district-wide capacity

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