Rural infrastructure development in nepal a prospect and opportunity- a paper by bhim upadhyaya
"Making Globalization Work: Role of Consultants"
A Paper on
Rural Infrastructure Development in Nepal: Prospect and Opportunity for Consultancy Business
by Er.Bhim Upadhyaya
"Knowledge is Useable Information"
Contents of the Presentation
Introduction to Nepal's Present Socio-economic Development & Geographical Context
National Policy, Strategies and Plans for Local Infrastructure Development
Major Programs Under-implementation
Vision for Nepal's Infrastructure Development
Infrastructure Development Gaps vis-à-vis Engineering Consultancy Business Prospect & Opportunity
Where is Nepal
in the World?
GDP Growth Rate:
Human Dev Index: 136th/177
Index: 110th /125
We are 28 M+ People.
45,000 Villages with 22.5M Rural People (86%).
15M Youth Below 25 yrs Age(60%).
4.5 M (20%) Youth 15-25 Age,
>4.5 M People Unemployed.
Multi Language, Multi Ethnic, multi-cultural, Diverse ecological, Traditional and Religious Nation
River Systems of Nepal
Bay of Bengal
6,000 Rivers in Nepal
Topography and Geological Formation
Main Central Thrust
Main Frontal Thrust
Main Boundary Thrust
About one-third of the Hindu-Kush Himalaya in Nepal
About 80 % of the country within mountainous / hilly terrain
Immature mountain landscape, extreme monsoon rainfall and periodic large earthquake leading to high vulnerability of landslides
Infrastructure Status in Nepal (Approx.)
Cultivated Land- 26.5 Lakh ha.( 20% of Total Area)
Irrigable-17.6 Lakh ha.(66% of Cultiv'd)
Irrigated- 11.2 Lakh ha. (62% of Irrigable)
Year Round Irrigated-4.5 Lakh ha.( 40% of Irrigated, 25% of Irrigable)
2. Water& Sanitation
water-76%, Sanitation- 26% (Quality? Quantity?)
3. Railway- 59 km
4. Airport Paved 10 Nos
All Weather 11,000 km
( All type 28,000 km)
Paved Road- 4,000 km
Hydro- 556 MW(0.67% of Potential)
Diesel- 55 MW
Total- 618 MW
Fossil Fuel- 18 Lakh L/Day (11,550 B/D)
LP Gas - 225 MT/Day
8.Telephone Lines- 5.3 M
9. Internet Users- 0.2 M
Nepal Road Accessibility- Lowest in the Region
Current road length (km) per 1,000 sq km Land Area
Current road length (km) per 10,000 People
Strategic and Local Road Network of Nepal & Accessibility (2hrs; 4 hrs)
No Roads yet in 11 Districts
Total Road Network: 28,000 km.
Highways: 15 No
Feeder Roads: 51 No
National Society of Agri Engineers
Strategic and Local Road Network of Nepal & Accessibility (2hrs; 4 hrs)
National Rural Roads Network:
Operational Rural Roads:
SRN : 5400 Km(78% Access.)
LRN: 4500 Km (85% Access.)
TB: 4000 Nos.
Opportunity: Road, Rail, Tram, Cable Car
Kath- Hetauda Fast Track Road
Kath-valley Cable Car
Kath- Hetauda Tunnel
Tarai East-West Railway
Mid-Hill East-West Railway & Road
Rope, cable way
Policy Framework for Rural Infrastructure Development Sector in Nepal
Nepal Agricultural Perspective Plan (1997-2017)
National Transport Policy- 2001
Poverty reduction Strategy Paper 2001
A 20 Year Master Plan-2002
Priority Investment Plan-(2007-2016)
Local Self Government Act 1999
Local Infrastructure Development Policy-2004
Local Infrastructure Strategic Action Plan 2006
Nepal Roads Board Act 2002
National Development Plans (10 plans)
National 3 Year Interim Plan 2062-2065
7 Sectors of Rural (Local) Infrastructure in Nepal
To Remaining 62%
Opportunity in New Nepal
posts for all
BuildingProsperous New Nepal
To 24% Remaining
Rural telecom Connectivity
Challenging task is the evolution of the management structure for integrated development
To all remaning
Major Rural Infras. Dev. Programs-1
Decentralised Rural Infrastructure and Livelihood Project (ADB loan), USD 50 M (18 districts)
Rural Access Improvement & Decentralisation Project (WB Grant), USD 32M (30 districts)
Rural Reconstruction and Rehabilitation Sector Development Project (ADB/DFID/OFID), USD 106.8M (20 districts)
Rural Access Program (DFID Grant) GBP 17 Million (7 districts)
Rural Village Water Resourced Management Project (Finland Grant), Euro 11.4Million.
Rural Water Supply and Sanitation Project Western Nepal (Finland Grant), Euro 9.7Million.
Trail (Suspension) Bridge Construction and Maintenance Project (SDC Grant, 54 hill districts)
Major Rural Infras. Dev.Programs-2
DDC Block Grant, Rs 1 Bn/year, 42% for public works
VDCs Block Grant, Rs 8 Bn/year, 70% for public works
Municipalities Block Grant, Rs 400M /year, 70% in public works
Local level and Agricultural Road Project Rs 1 Bn/year
Remote and Special Area Development Program, Rs 100M/year.
District Road Support Program (SDC Grant, 6 districts)
Rural Community Infrastructure Dev. Works (WFP Food Grant, 22 districts)
Rural Road Maintenance Fund
Institutional Setup for Rural Infrastructure Development in Nepal
Government Organizational Tiers for Rural Road Development
Present Unitary Nepal
New Federal Republican Nepal
CPN Maoist’s 13 States (?) with Political, Economic Powers & Modern Capital Towns
BIO - DIVERSITY
> 25% <5%
Nepal's Power Sources:
Diesel 55 MW
Nuclear - 0
Hydro ~556 MW(0.67% potential)
Renewable Energy <1 MW
Coal Thermal 0
Total ~ 612 MW
Balanced Development of Hydropower Projects
Large Hydel Projects
Seti west 750 MW
Budhi Gandaki 600
Kali Gandaki 600
Dudh Koshi 300
Andhi Khola 180
U Tamakoshi 309
20 Other Big Projects
Total (30 Projects) 12,766MW
Total Hydropower Potential 83,000 MW
Opportunity: Energy Vehicles – Jatropha(Sajiwan) Bio-Fuel Train, Car & Bus
Engineering Education Opportunity for Quality Human Resource in New Nepal
Nepal needs large number
of Talented Youth With higher education
Higher Educational System
TWO HUMAN RESOURCE CADRE
(1.5 Lakh SLC; 10,000 Univ. Graduates; 3000 Engineers produced/yr, 7 M students)
Skilled Youth with specific
Knowledge special Skills
with Higher Education
Requirement for Knowledge &
Industry & Services
DONORS, Intern'l Firms, INGOs in Rural Infras. Sector
Asian Development Bank,
2. International Consulting Firms
Finland Consulting Group,
4. Domestic Consultants
2nd Largest Pedestrian Susp. Bridge 1452m
More than 12000 such TB Required
Seasonal Pontoon Bridge
Vast Scope of Infrastructure Business Agenda-1
East-West Railway Transport thru' Terai (1000 km).
Mid Hill East-West Highway (1000 km).
Midhill East-West Railway Transport (1000 km).
Kodari-Kathmandu-Pokhara-Lumbini Railroad Transport (500 km).
7 No of North-South Highways linking Indian border cities to Chinese cities (800 km).
Electric Tram in the Kathmandu Valley Ring Road (30 km).
Cable Car service along the foothill in the Kathmandu Valley and sorrounding hill tourist spots uphill the valley mountain viz Shivpuri, Nagarkot, Daman, Palung, Kakani, Phulchoki (130 km).
7 Cable Car services linking religious centres, tourism centres to the cities and towns or market centres along the east west or other highways (175 km).
5 Special Economic Zones. ………. cont'd
Vast Scope of Infrastructure Business Agenda-2
New Towns in Proposed New Provincial Headquarters (13 Nos).
New towns for the Proposed New District Headquarters (75 Nos).
Expressway to link Proposed International Airport at Nijgadh to Kathmandu (75 km).
14 Industrial Development Estates Focussed to nearby Indian & Chinese Markets.
Development of 4 Multi-purpose Water Resource Mega Projects (With Tunnel Technology damming rivers flowing in the Mid hill (viz. Kali Gandaki, Arun, Budi Gandaki, Seti) for Terai's fertile land, develop hydropower, water navigation, transport and recreation.
All Season Paved Rural Roads in all districts (6000 km).
Other Rural Infrastructures: micro hydel, micro-irrigation, renewable electricity projects.
10,000 MW of Hydroelectricity.
Imagine how much works would be generated and how many engineers and consultants would require? Enormous!
Nepal's all political parties are now committed to take Nepal to fast development path. It needs huge financial resources & expertise.
Foreign donor community is interested in providing grant/loan aid.
Even if we manage to mobilize resources, Nepal need relevant large quantity & quality of experts.
Multinational companies/private sectors do have equally good opportunity to direct-invest in Nepal. With this prospective investment boom, domestic as well as international engineering consultancy firms will certainly have a great opportunity & scope for doing a great deal of business in: railroad, highways, hydro & renewable energy, cable car, industrial engineering & so on. ….cont'd
It is therefore equally important to lobby with their respective governments to assist in Nepal's priority areas by the participant international consulting firms in this seminar. International consulting firms can also discuss with their respective government agency to prepare a package for expertise assistance required in different technological disciplines.
Entire world has now become ever more interdependent. Nations are assisting nations financially or technologically. Every one participating in the seminar representing different countries has got a great role in supporting Nepal's rapid rural infrastructures development. Helping Nepal by helping your government you will all help yourselves. Official Development Assistance policy must/can/should be supportive and benefiting to investors, consultants and the recipient countries. This politics should be one of the focus movement for international consultancy businessmen interested in Nepal.
A great potential, prospect of consultancy business opportunity is awaiting in development-virgin land of Nepal.
How about You Coming Forward?