status of development of asian highways - unescap.org · pra public road act prm prithvi rajmarga...

STATUS PAPER

ON

Development of Asian Highway Routes

NEPAL, 2013

Fifth Meeting of the Working Group on the Asian Highway

and

Asian Highway Investment Forum

Bangkok, Thailand, 7 to 9 October 2013

Dinker Sharma

Joint Secretary

Ministry of Infrastructure and Transport

Government of Nepal

October, 2011

Contents Page

Acronyms

1.0 Introduction 1

1.1 The Transport Sector 1

1.2 Strategic Road Networks 1

2.0 Asian Highways 3

2.1 Asian Highway Corridors 3

2.2 Status of Asian Highway 4

2.3 Asian Highway Section in Nepal 4

2.4 Condition of Asian Highway 4

3.0 Development of Asian Highway 5

3.1 Upgrading of Asian Highway 5

4.0 Ongoing Investments – Project Templates 6

5.0 Future Investments Prospects – Project Templates 11

Acronyms

ADB Asian Development Bank

AH Asian Highway

DoR Department of Roads

DoTM Department of Transport Management

DoLIDAR Department of Local Infrastructure and Agricultural Roads

E-W Highway East- West Highway

GoN Government of Nepal

JICA Japan International Cooperation Agency

LRN Local Road Network

LSGA Local Self-Governance Act

MoLD Ministry of Local Development

MoPIT Ministry of Physical Infrastructure and Transport

MRM Mahendra Rajmarga

NGO Non –Governmental Organization

NRB Nepal Road Board

PRA Public Road Act

PRM Prithvi Rajmarga

RBA Road Board Act

TA Technical Assistance

TPO Traffic Police Office

TRP Tribhuvan Rajpath

SBST Single Bituminous Surface Treatment

SRN Strategic Road Network

SSRN Statistics of Strategic Road Network

WB World Bank

Status of Development of Asian Highways

Dinker Sharma - Nepal

Page 1

1.0 Introduction 1.1 The Transport Sector "Managing Roads for National Integration and Socio-Economic Development" is the vision

for development of roads in Nepal. The transport sector in Nepal is dominated by the road transport

which accounts for almost all domestic passenger and freight movements. Air services contribute

to passenger movements to key commercial and tourist destinations and are responsible to

transport passengers and goods into remote areas of Nepal. Waterways and ropeways transport

are practically nonexistent in Nepal.

The first motor able road connecting Kathmandu (capital of Nepal) to the Terai was built in 1956

with the assistance received from the Government of India. The decade of 1960 to 1970 saw

considerable expansion of road network with significant assistance and contributions from

different bilateral donors like India, China, UK, USA and the then USSR etc.

Road network in Nepal is divided into Central Road System and Local Road System as per the

National Transport Policy of the country. The Strategic Road Network (SRN) as per Department

of Roads (DoR) classification is a part of the Central Road System which also includes the Asian

Highway. This System is administered by the DoR and the implementing agency is the Ministry

of Physical Infrastructure and Transport (MoPIT). The mission statement for the Department of

Roads is "To contribute Towards the Betterment of Living Conditions of the People

through Effective, Efficient, Safe and Reliable Strategic Road Connectivity". Local Road

System includes urban roads and local roads that are administered by the Local Bodies,

Department of Local Infrastructure Development and Agriculture Roads (DoLIDAR) and the

Ministry of Local Development (MOLD).

1.2 Strategic Road Networks

The Strategic Road Network (SRN) is a backbone of the National Road Network System. It

consists of 21 National Highways and 208 Feeder Roads. The SRN occupies about 33 percent of

the National Road Network System and plays a very important role in movement of goods and

services in the country.

The function of Strategic Road Network is to provide linkages and connectivity throughout the

country. It enables economic growth and development to take place and ensures social harmony

together with regional and cultural integration of the country.

In addition to the extension of strategic network, a considerable expansion of the local rural road

network has occurred over the past 10 years, the construction of such being undertaken by a

large number of local initiatives and agencies – often involving significant local participation.



Page 2

2,16

6

2,51

7

3,57

0

3,83

5

3,93

3

4,25

4

4,74

0

4,86

1 7,53

5 9,39

9

10,8

35

11,6

35

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,00019

70

1975

1980

1985

1990

1994

1998

2002

2004

2006

/07

2009

/10'

2011

/12'

Total SRN

Highways

Feeder R

Poly. (Total SRN)

Poly. (Highways)

Poly. (Feeder R)

Development of Strategic Road Network (SRN)

It is to be noted that these lengths exclude some sections of the designated SRN that are currently

under-construction and which are not open to traffic: additionally many of the ‘earth’ roads, and

some of the gravel roads, are seasonal and are impassable to light traffic for much of the year.



Page 3

2.0 Asian Highways 2.1 Asian Highway Corridors

Asian Highway Routes in Nepal

AH 2

AH 42

KakarbhittaGadda Chawki

Brahmadev Mandi

Mahendra Nagar

SN Description Distance in Nepal km

Asian Highway

SASEC Corridor

SAARC Corridor

1 Birgunj – Kathmandu – Kodari

297 AH 42 Corridor No 1

Corridor No 2

2 Kakarvitta – Brahmadevmandi

1,027 AH 2 Corridor No 5

Corridor No 4



Page 4

2.2 Status of Asian Highway

Nepal is connected by two Asian Highways. The Asian Highways are a part of the Strategic

Road Networks. They are Asian Highway 2 (AH 2) and Asian Highway 42 (AH 42). The total

length of these two sectors within the country is 1324 km. AH 2 originates from Dhaka in

Bangladesh and ends in New Delhi in India. It can be further linked with other Asian Highway

Network. Similarly, AH 42 originates from Barhi in India and ends in Lhasa in China. It is

further linked to India by AH 1 and China by AH 5.

2.3 Asian Highway Section in Nepal

Asian Highway 2 (AH 2)

AH 2 connects the eastern portion of Nepal at Kakarvitta and passes through Itahari, Dhalkebar,

Pathlaiya, Hetauda, Nayanghat, Butwal, Kohalpur, Attaria and Mahendranagar. There is a

missing link between Mahendranagar and Brahmadevmandi (Nepal). Access through Tanakpur

and Banbasa need to be provided to complete AH 2 and further link with India. The Government

of India has taken initiatives to support Nepal to complete the missing link between Mahendra

Nagar to Brahmadevmandi. The detailed design works for this section of the road is complete

and the land compensation has also been distributed.

The other side of Brahmadevmandi and across the border is Tanakpur in India. The route through

Tanakpur and Banbasa need to be defined as Asian Highway Network so that AH 2 connection is

complete.

AH 2 covers a length of 1027 km within Nepal. The portion of AH 2 in Nepal is known as

Mahendra Raj Marga. The section of the road from Kakarvitta to Mahendra Nagar is 6-7m wide

and the condition is generally good.

Asian Highway 42 (AH 42) This section in Nepal starts from Birgunj, a south border town connecting India at Raxaul, passes

through Pathlaiya, Hetauda, Narayanghat, Mugling, Naubise, Kathmandu, Bhaktapur, Dhulikhel,

Panchkhal, Lamosangu, Barabise to Kodari (a north border connecting to China). This road is

further linked to AH1 at Barhi (India) in south and connects AH5 in China. The total length of

this section of road is 297 km. AH42 traces along the major four Highways known as Tribhuvan

Rajpath’, ‘Mahendra Rajmarg’ (which is also a part of AH2), ‘Prithivi Rajmarg’, and ‘Arniko

Rajmarg’ in Nepal. The pavement width of AH 42 is generally 6-7m and the road condition is

good.

2.4 Condition of Asian Highway Based on condition rating 95% of Asian Highway section in Nepal falls under good/fair

category. Only 5 % of network is in poor condition. About 70% % of Asian Highway section has



Page 5

recorded traffic level more than 1000 vehicles per day (vpd), where as 35 % of section has traffic

level between 465 to 1000 vdp and 3 % has traffic level less than 465 vpd.

Currently the Asian Highway section is being maintained under normal annual contracting

system and some portion of the highway is being rehabilitated with asphalt concrete.

3.0 Development of Asian Highway

The principal aim of Government of Nepal in the Transport Sector is to achieve a better balanced

and coordinated system for different modes of transport that exists at present. To this end, the

Government is examining the possibility of multi-modal (rail/road) containerized traffic between

Kathmandu, the Terai and ports in Indian, involving the construction of Inland Container Depots

and improvement of the road.

To meet the larger demand of road maintenance the Government has also promulgated the Roads

Board Act with a view to levy toll charges on the road user for effective maintenance of some

sections of AH 2 and AH 42.

Possible areas of future Network development are:

i) Upgrading sections of the East-West Highway and the Prithvi Highway to suit the

introduction of containerized freight transport.

ii) The construction of a shorter, more direct route between Kathmandu and the central Terai.

iii) A bridge rehabilitation and new construction programme.

3.1 Upgrading of Asian Highway

The Asian Highway AH 2 and AH 42 are in general 6 to 7 m wide. The width varies at different

sections. Some sections exceed the average width mentioned above. There are however, some

critical sections that need to be addressed but in general the traffic movement is unrestricted

within the country.



Page 6

4.0 Ongoing Investments – Project Templates

Asian Highway 2 (AH 2)

Project Template: No. 1 - Asian Highway 2 (AH 2)

Project Title: East West Highway – Chatara – East West Highway ( Alternate AH 2 connection)

2. Short Description: Koshi Bridge at Chatara is located on the upstream of

Koshi River Barrage. It starts from Nadaya on East

West Highway (EWH) – AH 2. It will serve as an

alternate to Koshi Barrage route. This bridge is being

financed by ADB.

The alignment starting from Nadaya and passing

through Chatara Bridge (CB) via EWH- CB – EWH to

connect AH 2 again at Fatepur is also being taken up

under ADB support.

This route after construction will serve as an alternate

to AH 2 in case of any damage to AH 2.

3. Physical Location:

AH 2

Kakarbhitta

Gadda Chawki

Brahmadev Mandi

Mahendra Nagar

Location of Chatara Bridge andEast West Highway-Chatara BridgeEast West Highway Alignment

4. Proposed Financing Modality: Bridge Project: Resources Allocation: ADB Grant No: 0150-NEP – US$ 7.0 million and GoN contribution of US$ 8 million Project Name: Emergency Flood Damage Rehabilitation Project (EFDRP) Highway Project: Resources Allocation: ADB Loan No: 3012-NEP – US$ 24.9 m (77.4%), GoN contribution 22.6%. “SASEC Road Connectivity Project”

5. Type of Project Proposal: Not Applicable

6. Project Feasibility Indicators: Bridge Project: Under Construction Highway Project: EIRR = 12%, NPV (NRs in m @ 12% discount) = 2.5

7. Project Technical Specification: Bridge length is 270 m, 10.5 meters width, pile foundation, 4 spans with 3 piers, steel truss bridge. Road Length is 61 km of Asian Highway Standard class III, Bridges 19 numbers.

8. Expected Timeframe for Project Implementation: Bridge Project: 30 months, expected to be completed in April 2014. Highway Project: 36 months

9. Contracting Agency: Bridge Project: Department of Roads (Client) Vs CTCE/ Kalika Joint Venture (Contractor) Highway Project: Tendering works in near future

10. Comments: Construction of Chatara Bridge Project started from ADB grant support as “Emergency Flood Rehabilitation Project”. The Bridge works started in November, 2011. The Road Project is to be carried out under ADB Loan support as “SASEC Road Connectivity Project”. Bidding documents for the Road Project are underway.



Page 7

Project Template: No 2 - Asian Highway 2 (AH 2)

Project Title: Mahendra Nagar Brahmadev Mandi Connection on AH 2

2. Short Description: This link is located on the Far West of Nepal at the border with India. This link is yet to be realized. In absence of this the Asian Highway AH 2 is not complete. There is no link with India through the Asian Highway and further west.


AH 2

Kakarbhitta

Gadda Chawki

Brahmadev Mandi

Mahendra Nagar

AH 2 link to be connected with India

4. Proposed Financing Modality: Government of India has committed to support this project as per “Tanapur Treaty”. Estimated Project cost: NRs 357,790,000/- (US$ 4,472,375) as of 2008. No revision has been made since then.

5. Type of Project Proposal: Not Applicable.

6. Project Feasibility Indicators: Not available

7. Project Technical Specification: Length of Road = 13.85 km 7 m width, Asian Highway Standard class III.

8. Expected Timeframe for Project Implementation: Not Available

9. Contracting Agency: Rites consulting Engineers of India had been appointed as consultant to this project.

10. Comments: In fact, a missing link on the AH 2 exists. Connection beyond Mahendra Nagar via Brahmadev Mandi through Tanakpur (India) and Banbasa does not exist. The Government of India has taken inititiative to support and construct this portion of the alignment. The detailed design works is complete and land compensation has been distributed. No progress has been made for a long time (almost a decade).



Page 8


Project Title: Rehabilitation of Belbari Chauharwa Section of AH 2. (40 km stretch)

2. Short Description: This portion lies on the Eastern side of Nepal. The section of rehabilitation starts from the western side of Koshi River Barrage. This rehabilitation of 40 km portion is a left out section of the original 140 km of Belbari Chauharwa Section. The works will strengthen the life of pavement and is expected to reduce vehicle operation costs.


AH 2

Kakarbhitta

Gadda Chawki

Brahmadev Mandi

Mahendra Nagar

Rehabilitation of Belbari Chauharwa Road Section 40 km – financed by ADB

4. Proposed Financing Modality: ADB Grant under Sub Regional Transportation Enhancement Project – Grant No: 0225-NEP (SF) ADB contribution – 65.7% GoN contribution – 34.3%


6. Project Feasibility Indicators: Construction works are in progress

7. Project Technical Specification Rehabilitation to the same standard as the existing AH 2. Carriage way width = 7 m of Asphalt Concrete and shoulder width 1.75 m on either side in Double Bituminous Surface Treatment (DBST).

8. Expected Timeframe for Project Implementation: The Project works is expected to be completed by October 2013.

9. Contracting Agency: Contract No 1: Sichuan – Danfe – Sunauli – Khimti Joint Venture Contract No 2: CTCE/ Kalika/ Raman Joint Venture

10. Comments: Belbari Chauharwa section of AH 2 which is 140 km in length was previously rehabilitated under the Asian Development Bank’s “Road Network Development Project (RNDP)”. Due to heavy rainfall in 2008, 40 km of this section was washed out because of heavy flooding in the Koshi River. This section was thus a left out portion from the RNDP and is now being taken up under STEP funding.



Page 9

Asian Highway 42 (AH 42):


1. Project Title: Narayanghat Mugling Section of Road

2. Short Description: This portion is one of the busiest sections of road along the AH 42 highway. Traffic coming across the east and west of the country merge at this section. A need has been felt to widen this portion because of high traffic and congestions. The bridges along this section are of intermittent stand and need improvement or replacement. The World Bank has come up in supporting the Highway (excluding the Bridges) under “Nepal India Regional Trade and Transport Project”.


AH 42

Kakarbhitta

Gadda Chawki

Brahmadev MandiNarayanghat MuglingRoad Section Improvement – 36 km

4. Proposed Financing Modality: Resources available: US$ 101 million from the World Bank (WB) as Loan. Project No: P144335. The GoN is to invest additional 10% for compensation and other expenses.

5. Type of Project Proposal: Not Applicable.

6. Project Feasibility Indicators: EIRR: 19.2% NPV: NRs 1232 million at discount rate of 12%.

7. Project Technical Specification: Road Length: 36 km Pavement Width: 7 m (2 lanes) Shoulder: 2 m each on either side in plain area and 1 m each on either side in hill area. Asphalt Concrete proposed.

8. Expected Timeframe for Project Implementation: Three years

9. Contracting Agency: Not Available

10. Comments: This Project will ease traffic congestion and smoothen its flow. It will save long hours of waiting along this section and likely to contribute to the economy of the country in terms of vehicle operation saving and reduced travel time. There are 18 bridges along this route which are of intermittent width. Along with the road these bridges also need to be upgraded. Upgrading of the bridges can be taken up as a future investment prospect. Bridge Projects could also be proposed on PPP modality.



Page 10


1. Project Title: Larcha – Tatopani (Kodari) Section Improvement – 7 km on AH 42

2. Short Description: This 7 km section of the road starts on the north from Tatopani (China border) to Larcha. The road is being constructed with the support of Government of China. It also intends to improve the Customs facilities (dry port) at Larcha. This Project is basically intended to facilitate the customs proceeding at the border.


AH 42

Kakarbhitta

Gadda Chawki

Brahmadev MandiBarabise –Kodari–12 km Section Improvement

4. Proposed Financing Modality: The resources and funding are being allocated by the Government of China.


6. Project Feasibility Indicators: Not Available

7. Project Technical Specification: The road is being widened to 12 m in width.

8. Expected Timeframe for Project Implementation: Not Available

9. Contracting Agency: Not Available

10. Comments: All works are carried out by the Government of China by the Chinese team.



Page 11

5.0 Future Investments Prospects


1. Project Title: Pathlaiya – Nijgadh – Kathmandu (Fast Track Project)

2. Short Description: The Government proposed a first expressway to a four lane standard of 76 km along Nijgadh-Kathmandu Section on a PPP modality. The Concessionaire responsible for getting the Contract also was to build an additional two lane road about 18 km from Pathlaiya to Nijgadh along the AH 2. This route is also likely to serve as a transit route between the two neighboring countries China and India.


AH 42

Kakarbhitta

Gadda Chawki

Brahmadev Mandi

Kathmandu Terai Fast Track Road

4. Proposed Financing Modality: Estimated cost - Nijgadh to Kathmandu: US$ 818.66

million and Pathlaiya to Nijgadh: US$ 24.86 million

5. Type of Project Proposal: PPP basis on Built - Operate – Transfer (BOT) modality.

6. Project Feasibility Indicators: Feasibility Study conducted by ADB. Study shows high returns from the Project. Economic and Financial Analyses: Based on the preliminary costs the Economic Rate of Return (EIRR) of the four lane option is 30.92 percent. The financing plan for the project is not yet decided but, assuming that the project would be fully funded by an international loan (approximating a BOT operation), then the Financial Rate of Return (FIRR), using the suggested tolls is 14.6 percent pre-tax, about 13.6 percent after normal business taxes, and 12.9 percent if income tax is levied.

7. Project Technical Specification: Four lane road of length 76 km from Nijgadh to Kathmandu. There are seven major bridges with overall

lengths over 250m, main span lengths of up to 136 m,

and heights ranging from 50 to 100m. Tunnel of length 1.35 km. To meet Asian Highway Standard - I Highway Additional two lane of standard same as AH 2 along Pathlaiya Nijgadh section which is along the AH2 highway.

8. Expected Timeframe for Project Implementation: Concession period of 30 years including construction period of 5 years proposed.

9. Contracting Agency: Request for Proposal has been solicited. Latest information as of 20 September, 2013 – No RFP has been received.

10. Comments: This section of road if implemented will act an as alternate to AH 42 and shorten the road length from 240 km to 120 km. It is likely to act as a backbone for development activities as it will drastically shorten the distance from Birganj (India Border) to Kodari (China Border). RFP had been solicited two times but there was no response from any Companies, although during short listing a number of Companies showed interest and were short listed. The Government is now looking for support from the Donor for implementation of this project.



Page 12


1. Project Title: Alternate to Thankot Naubise Section – Sitapaila Dharke Road (AH 42)

2. Short Description: The Section between Thankot to Naubise is very congested due to heavy traffic flowing on both sides. A need has been felt to have an alternate connecting AH 42 from Sitapaila and meeting at Dharke on AH 42. One way traffic in each direction is likely to ease traffic congestion and reduce long hours of waiting for traffic clearance thus reducing costs in vehicle operation.


AH 42

Kakarbhitta

Gadda Chawki

Brahmadev Mandi

Kathmandu Terai Fast Track Road

Improvement ofThankot NaubiseSection – 2 lane

4. Proposed Financing Modality: Feasibility Study is in progress from support from Kuwaiti fund Grant TA No: 303. A Grant allocation of 2 million Kuwait Dinar (KD) that is approximately US$ 875,000, has been allocated towards this study.


6. Project Feasibility Indicators: Previous Study by JICA in 2002 indicated that the project is feasible. Following are indicators: EIRR: 18.1 NPV: 19.1 million US$ at discount rate of 12% B/C ratio: 1.5

7. Project Technical Specification JICA study proposed 2 lanes (7 m width) and a tunnel length of 0.7 km. A bridge of 50 m is also proposed at Dharke. Total Lenth of road 21.4 km. The present study is to propose two lane standards as per existing AH 42.

8. Expected Timeframe for Project Implementation: Not Available.

9. Contracting Agency: Not Available.

10. Comments: This Project is very important from the perspective that it will ease the traffic congestion existing at the moment along the Naubise Thankot section of AH 42. Long hours of waiting will be avoided resulting more efficiency and savings in economy. This could be a possible PPP project.



Page 13

Project Template: 3 - Asian Highway 2 (AH 2)

Project Title: Widening of Bridges along Dhalkebar Pathalaiya Section of AH 2.

2. Short Description: Dhalkebar Pathlaiya Section of AH 2 lies on the mid region of the County. This section is about 110 km in length. A number of bridges (67 numbers) along this section is of single lane and has almost completed its life cycle (more than 50 years old) and is in need for replacement. The length of bridges range from 11.3m to 363.50m (total length = 4116). These bridges need to be updated to AH 2 standard.


AH 2

Kakarbhitta

Gadda Chawki

Brahmadev Mandi

Mahendra Nagar

Widening of Bridgesalong Pathlaiya DhalkebarSection on AH 2

4. Proposed Financing Modality: This Project require budgetary resources and the Government is interested to seek support from the Donor for implementation

5. Type of Project Proposal: Can also be taken up in a suitable PPP modality.

6. Project Feasibility Indicators: Feasibility need to be conducted.

7. Project Technical Specification Bridges of 2 lane standard necessary.

8. Expected Timeframe for Project Implementation: Not Applicable

9. Contracting Agency: Not Applicable

10. Comments: The proposed Project could be suitable on a Public Private Partnership basis by raising toll along the section. However, detailed feasibility need to be carried out. The cost of bridges of total length 4116m could be approximately US$ 500 million.

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