Participants attributed slow work performance of ADB-funded projects to disappointment in spending, delay in project implementation, irresponsible contractors and similar old problems like land acquisition and forest clearance, among others.These reasons have been attributed for delay in ADB-funded projects in energy, transport, airport expansion, and drinking water supply sectors, among others.
ADB's energy sector investment portfolio stands at US$445.1 million which is 22.9 percent of ADB's investment portfolio in Nepal.
Speaking at the Tripatrite Portfolio Review Meeting, Director General of South Asia Department of ADB Hun Kim said energy is important for Nepal. He suggested to the government to improve implementation of energy projects to attract more funds in the sector.
Delay in procurement affected the Khimiti-Barhabishe 220/400 KV transmission line projects. Similarly, delay in issuance of general construction license and transmission survey license, seeking approval for forest clearance and land use delayed Tanahu Hydropower Project, according to a report prepared by ADB.
ADB is the lead donor of Tanahu Hydropower Project. The project has already seen long delay due to controversy in consultant selection process.
Likewise, the story behind delay of South Asia Sub-regional Economic Cooperation (SASEC) Power System Expansion Project is also the same. Budget spending in energy projects have remained very low despite allocation of huge amount of resources in the sector.
A total of Rs 33 billion was earmarked for energy sector in the last fiscal year. Spending, however, stood at below one-third.
Though Kim frequently raised serious concern on low work progress, Finance Secretary Suman Prasad Sharma, who chaired the program, tried to come clean saying that funding was not the problem and his ministry was always ready to provide additional funds if need be. "Fund is not the problem. Problem lies with the preparatory works including land acquisitio"," added Sharma.
At the program, Kim repeatedly expressed dissatisfaction over delay in project implementation. He said projects failing to meet deadline and spending target should be terminated.
Senior officials of Nepal Electricity Authority (NEA) were not present in the meeting.
Likewise, projects on transportation also faced similar woes. Kathmandu Sustainable Urban Transport Project, a project of $30.42 million, aims to reform the transportation system in Kathmandu by reducing the use of private vehicle in future and providing more convenient, comfortable, reliable and safe public transportation system. But the project is getting delayed due to delay in signing contracts, implementation of pilot routes for public transport component, and frequent transfer of the project staffs.
Dipak Shrestha, project director of Kathmandu Sustainable Urban Transport Project, said they have already asked the contractor and consultant to improve their work performance.
ADB has funded five projects in transportation sector and all of them have new project directors.
ADB's Country Director Kenichi Yokoyama said they have requested the government to not change project directors frequently.
Baburam Paudel, project director of Air Transport Capacity Enhancement, said 94 percent of project cost has remained unspent even though 35 percent of project time has already elapsed" "The contractors have not furnished satisfactory clarification on why their work performance is low," said Poudel.
Likewise, Melamchi Water Supply Project is suffering from delay in decision-making and weak project management capacity. The project, which started in 2000, has missed several deadlines. The project has also seen some disruption in tunnel works due to the earthquake and landslides triggered by the quake. The project to upgrade Gautam Buddha Airport into a regional international airport is facing problem due to delay in arrangement of in dedicated power supply at the construction site.
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ADB concerned over slow pace of development projects
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