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
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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.
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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.
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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
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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
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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.
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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.
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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.
3. Physical Location:
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).
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Project Template: No 3 - Asian Highway 2 (AH 2)
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.
3. Physical Location:
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%
5. Type of Project Proposal: Not Applicable
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.
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Asian Highway 42 (AH 42):
Project Template: No 1 - 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”.
3. Physical Location:
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.
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Project Template: No 2 - Asian Highway 42 (AH 42)
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.
3. Physical Location:
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.
5. Type of Project Proposal: Not Applicable
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.
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5.0 Future Investments Prospects
Project Template: No 1 - Asian Highway 42 (AH 42)
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.
3. Physical Location:
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.
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Project Template: No 2 - Asian Highway 42 (AH 42)
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.
3. Physical Location:
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.
5. Type of Project Proposal: Not Applicable
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.
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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.
3. Physical Location:
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.