Component 1 – Rural Roads:

The Project will improve and upgrade approximately 560 kilometers (the total will be 870 km once DFID’s cofinancing is confirmed) of rural roads in 20 non- DRILP districts included in the District Transport Master Plans (DTMP). The civil works will be for continuous roads only (not partial sections) that connect rural population to market centers, towns, and the higher road network. Qualifying civil works include:
(i) reconstruction of damaged rural roads due to conflict
(ii) rehabilitation and preservation of rural roads which fell into disrepair during conflict, and
(iii) rural roads which were planned but could not be completed due to conflict. The road construction will include an estimated 1,100 meters bridges (a total of about 42 bridges). The roads will be built to DOLIDAR standards, adopting LEP approach to the extent possible. To the extent possible, building groups (BGs) will undertake most subproject works. Only in cases where the road works are more technical and complex (i.e. bridge construction, structures, drainage works and road pavement works) contractors be engaged in the consent of district coordination committee and village infrastructure coordination committee.

Maintenance: Based on the DOLIDAR's O&M guideline, each participating should prepare and adopt O&M plan. The Project will support DDCs to implement O&M plan as per the district’s O&M strategy. Each DDC will establish a district roads maintenance fund for maintaining district roads, main trails and bridges. To support the development of local resources for maintenance, financing for district roads maintenance will be provided under the Project on a matching and declining basis. Financing maintenance after Project completion will be the DDCs’ continuing responsibility. Project assistance also contributes to training for the organization, management, and physical aspects of maintenance. DDCs will form and operate user committees representing transport operators to manage road use, monitor road conditions and maintenance performance, and mobilize additional resources for maintenance. In addition, the Road Board Nepal is required to allocate 30% of its annual maintenance allotment to local bodies for local road maintenance, and DDCs can apply for and access the Road Board fund.

Component 2 – Supplementary Infrastructure:

This component will complement the rural road improvements by constructing and rehabilitating 485 community, demand-driven supplementary infrastructure such as social and market facilities, school infrastructure, micro-irrigation, link trails, trail bridges, and 390 rural water supply and sanitation (WSS). The investments will typically generate additional linkages and benefits in proximity to the rural road subprojects. Supplementary infrastructure will be implemented using LEP approach.

Maintenance: O&M of supplementary infrastructure varies with the capture of benefits. In a typical WSS subproject, O&M costs will be borne fully by the users committee with an O&M fund established with up-front community contribution and water tariff to meet regular O&M costs of the built WSS scheme. For more public or more technically complex supplementary infrastructure (for example, school infrastructure or trial bridges), VDCs will be responsible for maintenance, with technical and financial support from the DDC if required.

Component 3 – Community Empowerment:

In line with government policies toward inclusion, the Project will strengthen the capacities of communities, beneficiary participation, and social cohesion to integrate the poor and disadvantaged into the mainstream of development activities. This goal will be achieved through activities that
(i) raise awareness of the Project and opportunities (employment, training and access to subprojects) among all social groups;
(ii) organize and train BGs for construction, using and building on existing socially mobilized groups;
(iii) assist communities in identification of supplementary infrastructure and preparing proposals;
(iv) facilitate beneficiary participation in implementing and maintaining subprojects through pro-poor delivery mechanisms including public hearing and annual social auditing; and
(v) ensure capacity in maintenance of supplementary infrastructure.

The Project will target minorities and the disadvantaged for proportional representation in BGs, and promote female membership of at least 50% and women as BG leaders. Further, through this component the Project will ensure that members of building groups receive full wages within 30 days of completed works, they are all insured and both men and women receive equal wage for work of equal value.

In addition to rural infrastructure activities, the Project will support demand-driven skills training by the social development officer, social mobilizers/facilitators in District Implementation Support Team (DIST) who will identify the group-specific training needs first. The training will cover areas such as agriculture and livestock, forestry and soil conservation, micro-enterprise and skills development, and social (health and literacy) awareness and legal rights. The Project will seek to link communities to qualified government and non-government training entities, closely coordinate with ongoing social and community development initiatives, and facilitate the communities in linking with credit, extension and related service providers. These skills and services will enhance the ability of the rural population to promote their well being after the termination of employment associated with the rural infrastructure construction.

Component 4 – Institutional Capacity Development:

The assessment of capacity both at the central and DDC level, as well as experience from other rural infrastructure projects, has shown that institutional capacity needs strengthening. Therefore, in order to enhance existing technical and administrative capabilities at MLD, DOLIDAR and at districts, this component specifically targets building institutional capacities and will support following subcomponents.

Subcomponent A: Strengthening Implementation and O&M:
This subcomponent will support (i) implementation of the Institutional Strengthening Action Plan, which is a long-term road map (supported by the donors working in rural infrastructure) for building capacity in MLD, DOLIDAR, and DDCs; (ii) update and disseminate DRILP manuals and procedures in coordination with DRILP project;(iii) supply laboratory testing equipments to districts, and district staff will be trained on the use and application of lab testing for rural roads as quality control and O&M are keys to maximizing the life of rural infrastructure investments; and (iv)Workshops for the districts on strengthening O&M procedures and programs will be provided at the local level.

Subcomponent B: Enhancing Fiduciary Management and Social Safeguard Compliance:
This subcomponent will (i) update DRILP procedures manuals for procurement, resettlement and environment in both English and Nepali; (ii) develop and deliver a related training program through central and regional workshops; (iii) provide individual support in these areas to districts on a need basis; and (iv).provide financial management support to develop an accounting manual, in both English and Nepali, and to develop and deliver a related training program in conjunction with procurement matters to facilitate accounting procedures and internal controls across districts.

Subcomponent C: Donor Harmonization:
The Project will provide consulting services of nine person months to the Government to develop an integrated framework to harmonize donor aid and move rural development towards a program-based approach/SWAP, and interim measures to coordinate donor projects. This will be done within the project period.

Component 5 – Project Management Services: