The ADB Board of Directors approved the grant assistance from its concessional Asian Development Fund for the Nepal Transport Project Preparatory Facility on Tuesday. [break]According to a statement, the facility will ensure that important road and air transport projects are prepared in advance and implemented quickly and efficiently.
"Making remote communities accessible by road or air is crucial to the growth of trade and tourism, and critical for the delivery of essential social services that so many of these poor communities lack," the statement quoted Dong-Kyu Lee, senior transport specialist in ADB´s South Asia Department, as saying.
Nepal relies heavily on road and air links to transport people and goods. However, the road network in remote hilly and mountainous districts is in poor condition. Most of its 47 airports too need urgent upgrading to improve safety and capacity, especially as the volume of air traffic is expected to double by 2019 with the growth in tourism sector.
The statement says the new facility will help a range of transport projects -- earmarked for ADB assistance -- move forward quickly and efficiently. The facility will mainly fund feasibility studies, and other key preparatory measures to reduce the time between the concept stage and the start of physical works.
ADB plans to prepare at least two road transport projects and one air transport project under the facility, giving priority to roads that link to sub-regional transport corridor routes.
Under the facility, ADB will also provide capacity support to improve regulatory environment that clears the way for public-private-partnerships in the road and air transport sectors. This will also include identifying and preparing a small-scale public-private-partnership pilot project.
ADB´s assistance makes up 87 percent of the total project cost of $13.8 million. The government is chipping in the remaining $1.8 million in the project.
Ministry of Physical Planning and Works is the implementing agency for the road component, while Civil Aviation Authority of Nepal will execute the air transport component.
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