Mid Term Review of Sector Wide Road Programme & Priority Investment Plan 1

Mid Term Review of Sector Wide Road Programme & Priority Investment Plan 1.
CONTENTS
1. INTRODUCTION & SUMMARY..............................................................................................................................1

1.1 BACKGROUND ..................................................................................................................................................................... 1
1.2 THE STUDY ......................................................................................................................................................................... 1
1.3 TERMS OF REFERENCE ........................................................................................................................................................ 2
1.3.1 Part I: Sector Wide Road Programme & Priority Investment Plan........................................................................ 2
1.3.2 Part II: Review of DoR Goals, Strategies & Policies.............................................................................................. 2
1.4 STRUCTURE OF THE REPORT ............................................................................................................................................... 3
2. STUDY OVERVIEW................................................................................................................................................5
2.1 OBJECTIVES & OUTPUT ....................................................................................................................................................... 5
2.2 GOALS, STRATEGIES & POLICIES ......................................................................................................................................... 6
2.3 PRIORITY INVESTMENT PLAN ................................................................................................................................................ 7
2.4 MAIN FINDINGS ................................................................................................................................................................... 7
2.4.1 Conclusions ........................................................................................................................................................... 8
2.4.2 Recommendations................................................................................................................................................. 9
3. EXISTING STRATEGIC ROAD NETWORK.........................................................................................................12
3.1 RESPONSIBILITIES & FUNCTIONS OF DOR ........................................................................................................................... 12
3.2 REVIEW OF DOR GOALS, STRATEGIES & POLICIES .............................................................................................................. 12
3.2.1 The 1995 Strategy ............................................................................................................................................... 12
3.2.2 The 2005 Strategy ............................................................................................................................................... 14
3.2.3 Conclusions ......................................................................................................................................................... 15
3.3 REVISED DOR GOAL, STRATEGIES & POLICIES ................................................................................................................... 15
3.4 EXISTING STRATEGIC ROAD NETWORK ............................................................................................................................... 16
3.5 CABINET-APPROVED SRN 2012 ........................................................................................................................................ 17
3.6 ROAD NETWORK CONDITION .............................................................................................................................................. 18
3.6.1 Current SDI Data (2012)...................................................................................................................................... 18
3.6.2 Current IRI Data (2012) ....................................................................................................................................... 20
3.7 TRAFFIC GROWTH ............................................................................................................................................................. 21
4. REVIEW OF BUDGETS & EXPENDITURE..........................................................................................................25
4.1 BACKGROUND ................................................................................................................................................................... 25
4.2 ANALYSIS OF BUDGETS & EXPENDITURE............................................................................................................................. 25
4.3 CURRENT BUDGET ANALYSIS ............................................................................................................................................. 26
4.4 COMPARISON WITH PIP FORECASTS .................................................................................................................................. 28
4.5 IMPLEMENTATION OF PIP2 PROPOSALS .............................................................................................................................. 29
5. MAINTENANCE OBLIGATIONS..........................................................................................................................32
5.1 INTRODUCTION .................................................................................................................................................................. 32
5.2 APPROACHES TO MAINTENANCE......................................................................................................................................... 32
5.2.1 Definitions of Maintenance .................................................................................................................................. 33
5.2.2 Annual Road Maintenance Plan .......................................................................................................................... 34
5.2.3 Funding for Maintenance..................................................................................................................................... 34
5.2.4 Specific Maintenance Issues ............................................................................................................................... 35
5.3 REVIEW MAINTENANCE STRATEGIES AND POLICIES ............................................................................................................. 36
5.4 UPDATE THRESHOLD & POLICY FOR UPGRADING FROM EARTH/GRAVEL TO BLACK TOP........................................................... 38
5.5 REVIEW MAINTENANCE INTERVENTION STRATEGIES & SURFACE OPTIONS .............................................................................. 39
5.6 REVIEW APPROACH TO PERIODIC MAINTENANCE & DEVELOP RANKING CRITERIA .................................................................... 40
6. DEVELOPMENT & UPGRADING OF SRN ..........................................................................................................42
6.1 STRATEGY FOR DEVELOPMENT .......................................................................................................................................... 42
6.2 DEVELOPMENTS SINCE PIP2 (2007)................................................................................................................................... 45
6.3 IMPLEMENTATION OF PIP2 PROPOSALS .............................................................................................................................. 45
6.4 COMPLETED & ON-GOING PROJECTS ................................................................................................................................. 46
6.4.1 World Bank .......................................................................................................................................................... 46
6.4.2 Asian Development Bank .................................................................................................................................... 47
SOILTEST/AVIYAAN/PRESTIGE JV Final Report – February 2015

6.4.3 Government of India ............................................................................................................................................ 48

6.4.4 Other Donors ....................................................................................................................................................... 48
6.4.5 Government of Nepal .......................................................................................................................................... 49
6.5 CRITERIA FOR UPGRADING & PRIORITISATION ..................................................................................................................... 52
6.5.1 Review of Extent of SRN ..................................................................................................................................... 52
6.5.2 Review of Feeder Road Construction Policy ....................................................................................................... 55
6.6 SCREENING & RANKING OF PROJECTS ............................................................................................................................... 56
6.7 NEW CONSTRUCTION ........................................................................................................................................................ 56
6.8 RESPONSIBILITIES FOR STRATEGIC & LOCAL ROADS ........................................................................................................... 56
7. ACCESSIBILITY (2013)........................................................................................................................................57
7.1 METHODOLOGY & APPROACH ............................................................................................................................................ 57
7.2 RESULTS OF PREVIOUS ANALYSIS (2007)........................................................................................................................... 58
7.3 CURRENT (2013) ANALYSIS ............................................................................................................................................... 60
7.3.1 Accessibility using Time-Band Criteria ................................................................................................................ 60
7.3.2 Assessment of Total & Average Walk Time ........................................................................................................ 64
7.4 CONCLUSIONS................................................................................................................................................................... 64
8. REVISED PIP FOR 2014-2021 .............................................................................................................................66
8.1 OVERALL STRATEGY.......................................................................................................................................................... 66
8.2 REVISED PIP (2014-2021) ................................................................................................................................................ 66
8.3 MAINTENANCE NEEDS ....................................................................................................................................................... 69
8.4 UPGRADING ...................................................................................................................................................................... 70
8.5 NETWORK EXPANSION/EXTENSION ..................................................................................................................................... 71
8.6 BRIDGES ON THE STRATEGIC NETWORK ............................................................................................................................. 74
8.7 PRIORITY INVESTMENT PLAN .............................................................................................................................................. 75
List of Annexes
ANNEX 1 : Current Status of PIP2 (2007) Recommendations
ANNEX 2 : Non-PIP (2007) Roads currently under construction
ANNEX 3 : Threshold Traffic Levels for Feeder Roads
ANNEX 4 : List of Roads with Classifications
ANNEX 5 : Details of Budget for SRN (2015/16-2021/22)
List of Tables
Table 3.1 : Composition of SRN by Surface Type (2005 & 2013/14) .....................................................................................17
Table 3.2 : Growth of operational SRN (km) 2005-2013.........................................................................................................17
Table 3.3 : SRN Pavement Condition - SDI (2012) – Sealed Roads only (km) ......................................................................20
Table 3.4 : SRN Pavement Condition - IRI (2012) – Sealed Roads only (km) .......................................................................21
Table 4.1 : DoR Budgets & Expenditure FY 2006/07 – 2012/13 (Rs ‘000s) ...........................................................................25
Table 4.2 : PIP2 Forecast & Actual Budgets/Expenditures (2007/08-2012/13) ......................................................................26
Table 4.3 : Analysis of DoR Budget & Expenditure (FY 2012/13) ..........................................................................................27
Table 4.4 : Major Donor Funded Projects (2006-2012) ..........................................................................................................28
Table 4.5 : Comparison of PIP2 Budgets and Actual Expenditure .........................................................................................29
Table 5.1 : Intervention Levels for Resurfacing & Rehabilitation ............................................................................................40
Table 5.2 : Modified Overlay Intervention Levels....................................................................................................................40
Table 7.1 : Improvement in Accessibility (Analysis from 2007 PIP)........................................................................................59
Table 7.2 : Population within Time-Bands of nearest road (millions)......................................................................................64
Table 8.1 : Road Lengths by Class (Proposed Classification)................................................................................................68
Table 8.2 : Regular Annual Maintenance (Rs million).............................................................................................................69
Table 8.3 : Summary of Periodic Maintenance – 2014-2021..................................................................................................70
Table 8.4 : Recommended Upgrading to Sealed Standards ..................................................................................................71
Table 8.5 : Summary of Draft DoR Budget for SRN (2015/16-2021/22) Rs million ................................................................77

List of Figures
Figure 2.1 : Proposed Re-Classification of the Strategic Road Network ..................................................................................1
Figure 3.1 : Strategic Road Network as defined in SSRN 2013/14 ..........................................................................................1
Figure 3.2 : Road Network Condition (2012) Sealed Roads Only ..........................................................................................21
Figure 3.3 : Traffic Count Data at selected Sites (1992-2012)...............................................................................................22
Figure 3.4 : Indicative Traffic Flow Diagram – AADT (2005) ..................................................................................................23
Figure 3.5 : Traffic Flow Bands on SRN (2013/14) vehicles per day (excl m/c) .......................................................................1
Figure 4.1 : DoR Budgets & Expenditure (2006-2012) ...........................................................................................................25
Figure 4.2 : DoR Forecast Budgets & Expenditure (2006-2012) ............................................................................................26
Figure 5.1 : 10-Year Maintenance Plan as developed in PIP2 (2007)....................................................................................33
Figure 5.2 : Comparison of Network Condition with Increased use of AC Overlays...............................................................36
Figure 6.1 : PIP2 Proposals for Extended SRN 2016 .............................................................................................................44
Figure 6.2 : Additional Links in the SRN (2012) NOT in the PIP2 Proposals..........................................................................45
Figure 6.3 : Proposed National Highway & Feeder Road Classification...................................................................................1
Figure 7.1 : Currently Operational Strategic Road Network (2013) ........................................................................................57
Figure 7.2 : Currently Operational SRN & LRN (2013) ...........................................................................................................58
Figure 7.3 : Population Density & Distribution (2011) ...............................................................................................................1
Figure 7.4 : Accessibility to 2013 Operational and Under Construction SRN (13,358 Km) ......................................................1
Figure 7.5 : Accessibility to 2013 Combined SRN & LRN.........................................................................................................1

1. Introduction & Summary

1.1 Background
The Department of Roads (DoR) is the main agency responsible for planning,
design, operation and maintenance of the Strategic Road Network (SRN)
throughout Nepal. This study, which is funded under a loan from the World
Bank/International Development Association (IDA), is designed to assist the DoR
and Government of Nepal (GoN) with a mid-term review of Sector Wide Road
Programme and Priority Investment Plan originally prepared in 2005-07.
1
In the period since the previous study was completed in 2007 , there has been a
considerable expansion of both the strategic and rural road networks. The length of
the SRN is already greater than was forecast for 2016 and very substantial (and
often unplanned) extensions have made to the rural road network – although much
of this additional network is not all-weather and is not operational all year.
Significant areas of the country are still without all-weather motorable road access.
The Government now wishes to review progress on the expansion and upgrading of
the SRN and to prepare plans, proposals and budget estimates for its further
development over the coming 6-7 years.
The previous study included an extensive and innovative assessment of

accessibility based on population distribution, terrain and the available road
networks. The present study has updated these calculations based on the latest
population data (from the 2011 census) and the current extent of the strategic and
local road networks.
1.2 The Study

The project is being undertaken by a joint-venture comprising three local consulting
firms – Soil Test, Aviyaan and Prestige – with an international Team Leader, who
additionally led the previous studies in both 2005-07 and 1995-97. The study was
conducted over an initial period of four months, involving a total of 10 man-months
of professional input – 8 domestic and 2 international. The contract was signed on
24th February 2014 and work commenced immediately.
The Inception Report was submitted 3 weeks after work commenced, in mid-March.
A presentation of the Inception Report, together with an analysis of initial findings
and a discussion of Key Issues, was held 2 months after the start, on 28th April.
Subsequently an Interim Progress Report, summarising the preliminary findings
was submitted at the end of May. An initial version of this Draft Final Report was
prepared at the end of the contract period (end-June). The findings and
recommendations were presented to the DoR at a seminar held in the DoR on 20th
June.
Coordination between the DoR and the Study Team was arranged through a series
of meetings with a Steering Group formed of senior DoR Engineers.
This Final Report incorporates responses to comments made at the presentation in

January 5, 2015 and includes an initial outline of the proposed PIP for the period to
2021.
1
Sector Wide Road Programme & Priority Investment Plan, DHV Consultants, May 2007

1.3 Terms of Reference

The Terms of Reference define the main objectives of the Study as: ‘to review of
the 2007 Sector Wide Road Programme and Priority Investment Plan (PIP) on the
basis of current conditions and to develop an investment plan and strategy for the
period to 2021/22’. Additionally, the Consultant is tasked with a review of the DoR’s
present Goals, strategies and Policies and to provide recommendations for future
strategies.
The specific objectives of these two main activities are set out – as Part I and Part II
– in the ToR, as defined below.
1.3.1 Part I: Sector Wide Road Programme & Priority Investment Plan
(a) to review, update and develop a futuristic national grid of road networks
including both the strategic and rural roads.
(b) to review and update an appropriate Priority Investment Plan (PIP) of strategic
and proposed strategic road network for the period from 2014/15 to 2021/22.
(c) to review and determine the optimal balance among construction of new
roads (national highways, feeder roads and bridges) and improvement,
rehabilitation and maintenance of the existing strategic road network.
(d) to review and update an appropriate level of expenditure on investments for

construction and maintenance given local resources and absorptive capacity
constraints (financial, technical and human resource related) and the probable
level of foreign assistance in the sub-sector during the period from 2014/15 to
2021/22.
(e) to review and update the optimum maintenance costs of the strategic road
networks required for the period from 2014/15 to 2021/22.
(f) to review and compare different budget scenarios from 2014/15 to 2021/22 for
the strategic road network and present the consequences of budget
constraints to the society (network net present value), road users (network
road users) and road agency (short term and long term agency investment
and maintenance expenditures).
(g) to review and update the optimal investment plan with allocation of resources
between geographic regions, surface types, road work types and functional
classification of roads.
(h) to review and update the accessibility model developed and used in PIP 2007
study tool with present population census data of year 2011 and the Strategic
Roads added after 2007.
(i) to review and estimate an optimum investment need based on present GoN
priorities, expected traffic volume and other economic activities in the area.
Present the result of the network evaluation on a map produced preferably
with a GIS system.
1.3.2 Part II: Review of DoR Goals, Strategies & Policies

(a) To review the present DoR Goals, Strategies and Policies and develop
appropriate DoR Goals, Strategies and Policies.

(b) To review and update the existing traffic threshold criteria /policies for
upgrading in general from earthen or gravel to bituminous surface.
(c) To review the present maintenance intervention strategy and develop policy
guideline for the use of particular SRN surfacing material (Surface dressing,
Asphalt mix, Otta seal, etc) based on traffic volume and economic condition.
(d) To review the present periodic maintenance approaches/ policies and develop
more transparent, suitable ranking criteria considering economic values or
any other appropriate analysis.
(e) To review the present policy on road construction policy (mentioned in the
standard for feeder road design).
1.4 Structure of the Report

Following this Introduction, the remainder of this Draft Final Report contains a
further seven Chapters. These are:
Chapter 2: Study Overview:
Objectives & Output

Goals, Strategies & Policies
Priority Investment Plan
Main Findings
Chapter 3: Existing Strategic Road Network:
Responsibilities and functions of the DoR

Review overall DoR Goals, Strategies & Policies
Revised DoR Goal
Existing Strategic Road Network
Cabinet Approved SRN Expansion (2012)
Road Network Condition
Traffic Growth
Chapter 4: Review of Budgets & Expenditure:
Analysis of Budgets & Expenditures

Current Budget Analysis: Government and Donor Funding
Comparison with PIP2 forecasts
Implementation of PIP proposals
Chapter 5: Maintenance Obligations:
Approaches to Maintenance
Definitions of Maintenance
Annual Road Maintenance Plan (ARMP)
Specific Maintenance Issues
Review of Maintenance Policies and Strategies
Upgrading Thresholds for Gravel & Sealed Surfaces

Chapter 6: Development & Upgrading of SRN:
Strategy for development & upgrading of network

Developments since PIP2 (2007)
Implementation of PIP2 Proposals
Completed & On-going Projects
Criteria for Upgrading and Prioritisation
Review Extent of future SRN
Review of Feeder Road Construction Policy
Screening and Ranking of Projects
Requirements for New Construction
Responsibilities for Strategic & Local Roads
Chapter 7: Accessibility (2013):
Methodology and approach

Results of previous analysis (2007)
Current Analysis (2013)
Accessibility measured by time bands (2 hour/4 hour)
Average and total walk-time to road network
Chapter 8: Revised PIP for 2014 to 2021:
Overall Strategy
Revised PIP 2014-21
Maintenance Needs
Upgrading
Network Expansion and Extension
Priority Investment Plan

2. Study Overview
2.1 Objectives & Output
The previous Sector Wide Road Programme and Priority Investment Plan (SWRP &
PIP, 2007) presented a detailed strategy for the development of the SRN over the
ten years to 2016, including recommendations for the two fold expansion of the
network. The study examined both the capital and recurrent financial implications of
the proposed plan and developed an optimum maintenance strategy for the existing
(& expanded) network. The 2007 Study is referred to here as PIP2: the original PIP
was completed in 1997.
The PIP2 study examined a full range of possible improvements and additions to
the SRN, including new roads into non-road served areas of the hills, the upgrading
or improvement of existing heavily trafficked roads, increased network density in
heavily populated areas, and the upgrading of roads in the Terai – including links to
India. The upgrading of strategic roads in the Kathmandu Valley was also
considered, together with an assessment of potential new access routes to
Kathmandu from the Terai.
The PIP2 developed a maintenance strategy and programme based on an analysis

of the condition of the existing and committed SRN using the HDM model. The
analysis has not been repeated as the use of HDM has not been adopted within the
Department. As an alternative, this Study has recommended that the Annual Road
Maintenance Programme (ARMP), which is used to identify regular and periodic
maintenance needs, is expanded to include rehabilitation and reconstruction, along
with the associated intervention criteria.
The 2007 Study conducted a detailed examination of the accessibility provided by

the overall road network and developed recommendations regarding the extent of
the strategic and local networks required to achieve the desired levels of
accessibility throughout the country. The analysis was undertaken using a GIS-
based approach that linked the development and expansion of the road networks to
the terrain and population distribution throughout the country. The situation has
changed significantly over the past 7-8 years, with the expansion of both the
Strategic and Local Road Networks: as a result overall levels of accessibility have
improved and the revised analysis has been used to identify unserved pockets and
to prioritise improvements and upgrading measures.
The present Study is tasked with producing a revised PIP for the period 2014-2021,
including budget estimates and a programme of work relating to the maintenance,
upgrading and expansion of the SRN. Critical issues that need to be addressed at
the outset relate to length and extent of the SRN and the division of responsibilities
between DoR and DoLIDAR – the central agency responsible for Local Roads that
are administered and maintained through the Districts.
The revised PIP contains budget estimates for the main activities (maintenance,
upgrading and new construction) developed from an assessment of need within the
overall strategy devised for the SRN, with due regard to likely funding limitations
and institutional capacity constraints. Funding for regular and periodic maintenance
– and potentially rehabilitation and upgrading – will come from the Roads Board.

2.2 Goals, Strategies & Policies

Part II of the ToR requests that the Goals, Strategies and Policies of the DoR be
reviewed and updated as appropriate. The Department’s existing Goals, Strategies
and Policies date from either 1995 or 2005 and were prepared under very different
conditions, when significant areas of the country were unserved by road and the
budgets available for the roads sector were much lower.
The emphasis has changed from one of providing basic access and connectivity to
the provision of improved and upgraded levels of service. The focus is now on
efficiency, reliability and safety as well as ensuring that the strategic network is
maintained to appropriate standards in the most cost-effective manner. This should
be reflected in the Overall Goal of the Department.
The content of the Strategies and Policies reflect the activities and responsibilities
of the DoR. Specifically they refer to the DoR’s role in regard to the development
and maintenance of the Strategic Road Network and to the realisation of certain key
physical targets. During this Study, the policy and strategy issues are discussed in
relation to the overall preparation of the updated PIP, including both the
development and maintenance of the SRN.
With regard to the previous Strategies and Policies, three main areas of concern
remain valid:
the definition of the role, responsibilities and function of the DoR and
specifically the separation of the strategic and local road networks;
improvements to maintenance practices – funding has been secured
through the RBN but the overall network management practice and
associated intervention criteria need review; and
basic objectives should be revised in the context of social, political and
economic change: the current requirements are more extensive than the
simple provision of basic access.
The first of these aspects is critical to the overall scale and shape of the proposed
plan. For the past 16 years, since the establishment of DoLIDAR, successive policy
statements have consistently stressed the ‘separation’ of the strategic and local
road networks and yet it is evident that both (a) a continuing significant proportion of
the total DoR budget and Divisional man-power resources are devoted to ‘local’
projects not on the SRN; and (b) the SRN has been substantially extended in recent
years through the inclusion of additional ‘non-strategic’ roads. These factors both
add to the overall work-load of the Department and seriously detract from the
primary activities of managing and maintain the main strategic routes within the
country in an efficient and cost-effective manner.
It is recognised that the maintenance activities of the DoR are fundamental to the
delivery of an effective road network to meet the needs of the country. This Study
has reviewed the present strategies and policies relating to maintenance, including
current practices for identifying and prioritising regular and periodic maintenance
activities through the ARMP. Amendments to the associated intervention levels
need to be discussed and agreed with the Department, together with suggestions to
extend the present system to include additionally rehabilitation and reconstruction.
Similarly, current policies and thresholds and for upgrading roads from earth to (all-
weather) gravel and from gravel to a sealed bitumen surface need to be reviewed
and revised in the light of current costs, demands and expectations.

The relevant Strategies and Policies are discussed in the following sections of this
report: the issues related to the role and function of the DoR – and the extent of the
SRN – are discussed in relation to the development SRN and the key issues
relating to maintenance are included in the Chapter on Maintenance Obligations.
2.3 Priority Investment Plan

The content of the Priority Investment Plan (2014-21) can only be finalised following
the acceptance and agreement of the strategy and policy for the development of the
SRN. This will dictate the size and extent of the network and the associated
maintenance, upgrading and new construction requirements and obligations.
Similarly the future maintenance regime and associated costs require agreement on
the strategy and approach: it is suggested that the existing approach to identifying
and prioritising the regular and periodic maintenance programme (using the ARMP)
is expanded to include rehabilitation and/or reconstruction by using indicators based
on traffic levels, pavement age, IRI, SDI and strategic function.
Consideration of both the maintenance and construction requirements – together

with estimates of budget availability – will permit the ‘balance’ of expenditure to be
determined and, if necessary, the impact of budget constraints to be applied.
It is anticipated that the budget forecasts and distributions of expenditure will follow
a similar pattern to the PIP2 allocations between maintenance, upgrading and new
construction, including consideration of strategically important new access routes to
Kathmandu from the Terai. This latter (Fast Track) proposal was included in the
PIP2 and is potentially the single most important investment on the transport sector
in Nepal.
2.4 Main Findings

This mid-term review of the 2007 PIP has concluded that the Strategic Road
Network (SRN) has been expanded significantly in excess of its planned growth and
that most of the additional roads are of low standard earth construction and that
many are of local – rather than strategic – significance. The network expansion has
been achieved by the re-designation of existing locally-built earth tracks as part of
the strategic network and by the inclusion of a number of longer-distance links in
areas of relatively low population density that were NOT prioritised during PIP2.
As a result the composition of the network has changed significantly: almost 70% of
the length was sealed in 2007 (3,805km) and, although this has now increased to
6,369 Km, this now represents less than 51% of the current SRN2. The result is that
there is now a substantial potential demand for the upgrading of the 6,125km of
mostly newly designated strategic roads – and a significant risk that funds and effort
devoted to these activities will detract from the primary task of maintaining the
essential core elements of the national network.
In addition to the 12,494km of currently operational SRN, a further 315km are under
construction and 2,093Km are planned, producing an overall total of 14,902km. This
growth should not be considered an achievement of the DoR: rather it is a potential
burden, with attendant liabilities for both maintenance and upgrading. Specifically, it
is noted that 4,389km of the currently ‘operational’ network is classified as ‘earthen’
– mostly constructed to non-engineered standards – and not necessarily open
throughout the year: these roads will require significant and costly upgrading in the
coming years.
2
Based on the latest published DoR Strategic Road Network Statistics (2013/14)

2.4.1 Conclusions
All the additional links recommended in the PIP2 are included in the expanded SRN
and most are in the current operational network. Almost all these roads previously
existed as local roads or tracks: only limited lengths of ‘new’ strategic road have
been constructed. However the ‘approved network’ also includes significant lengths
of additional local roads and tracks, plus further proposed new alignments.
The growth in the network since 2007 has exceeded the PIP proposals, primarily as
a result of the take-over of non-strategic local roads in the less densely populated
northern and mid-hill areas, plus new road alignments including links to the northern
border with China. These are roads that did not meet the 2007 criteria for inclusion
in the SRN, which were based on strategic function and density of population
served. Many of these additional roads are ‘non-engineered’ local roads that have
been constructed through local efforts – often by excavator: they pose a major
challenge to DoR due to potential demand for costly upgrading.
The PIP2 recommended – and this review supports – the construction of a new high
standard and high-speed link between Kathmandu and the Terai and specifically
the Indian Border at Birgunj. This is potentially the most important commercial and
economic link in the country and serves the vast majority of all imports and freight
movements: to bring the Indian Border to within 2 hours of Kathmandu, and thus
allow a daily return trip, would revolutionise business and commercial activity.
The construction of this ‘Fast Track’ connection is the single most significant
transport project in Nepal. It is therefore essential that resources are directed in the
most effective manner towards the construction of the ‘best’ alignment to serve the
future needs of the country. At present two effectively competing projects are being
pursued, together with a number of other more minor upgrades on alternative
routes. There are major issues to be considered: what is the primary objective? Will
there be a Second International Airport in the Terai? Are tunnel options viable and
desirable? How will the project be funded? Who will operate the project? These
fundamental questions need to be answered before any significant or irreversible
decisions are made.
As with the PIP2, the priority for DoR activity and expenditure is the maintenance of
the existing network. The emphasis should be on the provision of a well-maintained
road surface for the highly-trafficked core elements of the network and on asset
preservation, coupled with year-round access, for the remainder. Given the rapid
expansion of network, it is important that interventions are prioritised to ensure that
the most important elements are given adequately attention.
The DoR should focus on the strategic elements of the road system to ensure an
adequate and improving network to meet the fundamental economic needs of the
nation. The primary issues of accessibility and connectivity have to large extent
been resolved and the emphasis is now on improving the reliability, efficiency and
safety of the network.

2.4.2 Recommendations
It is recommended that the current operational and under-construction network be
reviewed against PIP2 proposals and criteria to test which links meet basic criteria
for inclusion in SRN. This review should also include the upgrading and expansion
programmes currently being proposed for funding by the ADB, GoI and GoN, to
ensure that the roads proposed meet the basic criteria for inclusion in the strategic
network. This exercise would almost certainly result in a reduced current SRN of
around 10 or 11,000km, with more modest proposals for expansion thereafter.
It is however recognised that an extended Strategic Road Network of 14,902km,

comprising 21 National Highways (5,568km) and 208 Feeder Roads (9,334km) has
been formally approved by the Cabinet in May 2012. If this network is adopted, then
it is essential to prioritise future works, as it will not be practical, realistic or
affordable, within the seven year planning period, to upgrade and maintain this
extended network to similar standards throughout.
A first step is to re-classify the network, through the introduction of new categories
of National Highway and Feeder Road, so that investment and expenditure may be
directed towards the more significant and important elements of the network.
Two classes of National Highway are proposed:
NH Class 1: The ‘core’ network of highways: East-West Highway, main links

to Kathmandu, Pokhara & major border crossings; amounting to around
1,760km; to be constructed or upgraded to Asian Highway Standards; and
NH Class 2: Secondary Highways: links into the Hills serving two or more
District HQs, the Mid-Hills Corridor, the Postal Road & access to minor border
crossings; around 3,797km; constructed to sealed 2-lane or intermediate lane
standards.
Similarly two classes of Feeder Road are proposed:
FR Class 1: Strategic Feeder Roads: all remaining 51 FRs in 1995 network,

access roads to District HQs & local border crossings, and all roads in PIP2
proposed SRN; approx 4,991km; constructed to single or intermediate lane
sealed standards, subject to Feasibility Study; and
FR Class 2: Secondary Feeder Roads: all other roads in the 2014 extended
SRN; approx 4,016km; any future construction or upgrading (or any significant
expenditure) to be subject to Feasibility Study.
The resultant network is illustrated in Figure 2.1 below, with Highways (Class 1 & 2)
shown in Red & Green respectively and Feeder Roads (Class 1 & 2) shown in
Black & Yellow. The list of the roads are provided in Annex 4.
National Highways Class 1 should be maintained to the highest standards. They will
generally have an asphaltic concrete surface as the higher traffic volumes will
generate greater benefits as a result of the investment. The Class 1 Highway
network should be progressively upgraded to Asian Highway Standards, with
particular emphasis on safety features, including safety barriers, signage, improved
road markings and overtaking lanes (where these can be safely provided).
Class 2 National Highways should be constructed and maintained to appropriate

standards for their function and location. Asphalt concrete surfacing may be justified

for high traffic sections, with DBST elsewhere: all sections should be sealed, with
progressive widening to 2-lane standards for the more heavily trafficked sections.
Class 1 Feeder Roads should be selected and identified based on a detailed

analysis of their strategic function: they will generally be constructed to sealed
standards, with justification for upgrading or widening based on feasibility studies
and threshold traffic volumes.
Class 2 Feeder Roads are mostly those ‘additional’ roads included in the 2013/14
SRN that were NOT identified or prioritised in the PIP2 SRN proposals. All should
be subject to a detailed feasibility study, prior to any further investment or
upgrading, including an evaluation of the strategic function within the ‘national’
network.

3. Existing Strategic Road Network

3.1 Responsibilities & Functions of DoR
The Department of Roads is responsible for the planning, design, construction and
maintenance of the Strategic Road Network throughout Nepal.
3.2 Review of DoR Goals, Strategies & Policies

3.2.1 The 1995 Strategy
The primary reference document is the Departmental Policy Document, “The DoR
Strategy”, dated July 1995. This outlines the DoR Strategy, comprising six
OBJECTIVES, nine POLICY OPTIONS and fifty-one KEY MEASURES. These all
lead towards the END GOAL of the DoR, which was established in 1991/92 during
the preparation of the 9th Plan, as “the reduction of total road transport costs”.
The Objectives, Policy Options and Key Measures were described in an Annex to
the 1995 Strategy Document. Much progress has been made over the past 18
years and it is appropriate to review the current status and determine whether they
are still relevant in today’s context or whether additional issues should be included.
The overall goal remains valid but could potentially be broadened to include social,
equity and environmental concerns.
The six Objectives - in two groups ‘policy’ and ‘operational’ - are:

(a) ‘policy’ level issues:
i. Policy Level Awareness;
ii. Network Planning; and
iii. Direction of Donors
(b) ‘operational’ level issues:
iv. Improved Maintenance Operations;
v. Needs-based Budgeting; and
vi. Plant Management.
The 9 Policy Options, designed to realise the above objectives, were defined as:
(i) Decentralise Network Administration

(ii) Establish a Network Planning/Monitoring capability in DoR
(iii) Establish a Self-Sustaining Fund for Road Maintenance
(iv) Improve Maintenance Operations in the Divisions
(v) Improve Periodic Maintenance of the Strategic Network
(vi) Improve Bridge Maintenance on the SRN
(vii) Improve Roadside Support Maintenance
(viii) Establish the Concept of National Standards
(ix) Improve DoR Plant Management and Utilisation
These nine Policy Options are described below, together with an assessment of the
current status and requirements for revision.

Emphasises that the DoR priority is the development and maintenance of the SRN
which (in 1995) comprised 5,430km of road, of which 2,694km (50%) was bitumen
surfaced. The remaining Urban, District & Village Roads (4,194km) were to be the
responsibility of the Municipalities, DDCs and VDCs respectively. Although this
approach has been officially adopted, in practice there is still considerable degree of
overlap – especially at the Divisional level and in regard to ‘local’ bridges.
This action has been largely implemented with the establishment of the HMIS and
the regular collection of data on traffic levels and road condition.
This action has been largely implemented with the establishment of the Roads
Board Nepal which is funded through a fuel tax levy, road tolls and share of new
vehicle registration taxes. The RBN allocates funds to the DoR Divisions,
Municipalities and DDCs for routine, recurrent and periodic maintenance activities –
although the level of funding is generally considered inadequate.
The establishment of the Strengthened Maintenance Divisions (SMDs) with an

emphasis on the Routine and Recurrent Maintenance activities has significantly
improved the performance of the Divisions and this – coupled with a more rigorous
application of periodic or cyclic overlays (see below) – has resulted in an overall
improvement to network condition and a reduced demand for premature
rehabilitation or reconstruction.
The adoption of a periodic or cyclical maintenance programme – as applied through

the ARMP process – and based on pavement age, visual surveys, traffic levels and
strategic importance has been effective in extending the pavement life and reducing
the requirements for early rehabilitation. It may however now be appropriate to
reconsider both the number of parameters used and the threshold criteria adopted.
A separate centralised Bridge Unit has been established in DoR and a detailed
inventory of SRN bridges undertaken. Separate budgets and donor-funded projects
have been set up to assist with the maintenance needs. [The issue of non-SRN
bridges handled by the Divisions needs to be resolved.]
The issues associated with slope-stability have been widely examined and (in
general) cost-effective solutions developed.

Limited progress was made (in the 1990s) in regard to the establishment of the
Staged Construction Standards for Low Cost Feeder Roads – which are now
subject to review. It is unclear whether National Standards have been developed
and approved for other classes of road.
This action was addressed through the Strengthened Equipment Division (SED)
initiative, which proposed to put the Heavy Equipment Divisions (HEDs) onto a
more commercial footing, whilst providing adequate, reliable and appropriate
equipment on a cost-effective basis to the Divisions and local contractors.
3.2.2 The 2005 Strategy
The DoR 20-Year Master Plan for the SRN published in 2005 updated the Vision,
Mission and Objectives of the Department. It expressed a “vision” of ‘Managing
Roads for National Integration and Socio-Economic Development’, with an overall
“goal” of contributing to achieving sustainable socio-economic development by
providing safe affordable public road infrastructure services through building of a
cost-effective, efficient and reliable road network system.
The Master Plan envisaged that the following would be achieved within 20 years (ie
by 2025):
Motorable access to all District Headquarters, mostly sealed;

A doubling of the length of the SRN – ie to 10,000km;
Ensuring at least 95 percent of SRN in good/fair condition;
Reducing walking distance to 4 hours maximum in Terai and Hills3;
Establish a Road Agency to manage central road network;
Establish a monitoring system for effective and efficient service delivery; and
Substantially reduce accident rate.
A mission statement for the Department was proposed: "to contribute towards the
betterment of living conditions of the people through effective, efficient, safe and
reliable road connectivity"
With an ultimate objective of contributing to the alleviation of poverty in Nepal, the

main objective of road development was defined as: “to develop, expand and
strengthen the road network in a sustainable way for enhancing the overall socio-
economic development and integration of the country through balanced regional
development by providing due consideration for remote areas and deprived
communities”.
In order to achieve this objective, the Plan identified the following priorities:
To maintain the road network effectively and efficiently (Asset Preservation);

To provide motorable access to all District HQs so as to strengthen social,
economic, administrative linkages;.
3
With an absolute maximum in the Mountains of 3 days

To improve existing access to District Headquarters for safe, reliable and

cost effective travel;
To develop roads to support Poverty Reduction Program and to improve
accessibility in Mid-hills and Terai:
To develop and expand the existing SRN to facilitate effective and efficient
movement of goods and services and to foster economic growth;
To develop cost effective measures by adopting innovations in pavement
and bridge design;
To develop roads to support other infrastructure development and to link
areas of significant social and economic importance; and,
To encourage private sector participation in the development, maintenance
and management of roads.
3.2.3 Conclusions
The Consultants are of the opinion that the Overall Goal and Objectives of the
Department (however defined) remain valid and that the majority of the Policy
Options have been satisfactorily adopted. It is however considered that the overall
goal (of minimising total transport costs) is overly specific and technical and would
be better adopted as a lower level objective.
Certain specific issues however remain outstanding where clarifications may be

necessary or additional topics may need to be addressed. These include:
(a) The separation of the Strategic and Local Road Networks and the clarification
of responsibilities and budgets for each. This remains a major issue despite a
number of initiatives to resolve the conflicts and duplications. A major concern
is the extent of the SRN and the consequent expansion of the maintenance and
upgrading liabilities.
(b) Improvements to Maintenance Practices. Considerable progress has been
achieved, including the establishment of an independently functioning Roads
Board with a dedicated and (relatively) secure source of funding. However
further improvements are required in the procedures and practices of defining
the annual maintenance programme and allocating the necessary finance.
(c) Changes in social, political and economic conditions, as well as attitudes and
perceptions, over the past 20 years. Much has changed in Nepal, including the
construction of many roads, which have drastically altered the levels of access
in rural and hill areas, plus significant growth in car and (particularly) motor-
cycle ownership which have improved levels of mobility. Concerns are now not
only about providing basic access but also reliable, safe and comfortable
service levels.
These three issues are discussed in greater detail elsewhere in this document.
3.3 Revised DoR Goal, Strategies & Policies

The previous sections illustrate the breadth and complexity of the previous efforts to
establish goals, strategies and policies for the Department. As noted above, many
of the specific actions and objectives have been achieved and the overall context
and conditions have changed significantly. It is necessary to develop a simplified
hierarchy of goals, strategies and policies that reflect today’s situation and levels of
development within the Department and country as a whole.

Exact terminologies vary but, for the purposes of this exercise, it is assumed that
the term ‘goal’ applies to the highest level target or ‘desired end result’: it may be
something that is not wholly achievable within the Department itself but something
that the Department can contribute towards. It is suggested that the Goal for the
Department could be:
“To construct and manage the SRN efficiently and effectively so as

to contribute towards the overall development of the country.”
Below the overall Goal, it is necessary to develop a series of lower order policies
and strategies in order to achieve desired objectives or outcomes. These can relate
to the overall function of the DoR as ‘manager’ of the strategic network or to the
specific approaches to be adopted and applied in regard to the maintenance and
upgrading of the network. These issues are presented for discussion elsewhere in
this document.
3.4 Existing Strategic Road Network

It is evident that the growth in the designated length of the Strategic Road Network
over the past 6-8 years has been substantially in excess of that planned in the
previous PIP or indeed in the DoR 20-Year Master Plan of 2005. This has been
achieved primarily by the re-designation of existing links in the District or Local
Road Network (LRN) as strategic roads. The ‘upgrading’ of such local roads to
Feeder Road status has advantages for the Districts – in that the maintenance
liability is removed from them and additional ‘central level’ finance is available – but
presents a considerable additional burden on the DoR in regard to maintenance
and the extent of potential upgrading works, as many of the roads are in poor
condition and have been constructed to inadequate (non-engineered) standards.
Additionally, a number of ‘national priority’ roads have been introduced, that were
not included in the proposals of the previous PIP and thus did not ‘pass’ the multi-
criteria screening analysis – or the accessibility analyses – that were undertaken.
Specifically, these additional ‘un-prioritised’ roads comprise sections of the
proposed North-South Corridors, including a number of minor links to the Chinese
border and sections following major rivers through the mid-hills, plus additional
roads mostly in the Mid-Hills that were not previously identified as being ‘strategic’.
As a result of these additions, the composition of SRN is considerably changed and

the resultant overall condition is worse now than it was in 2007. As indicated in
Table 3.1, the overall length of the ‘operational’ SRN has doubled between 2005
and 2011/12, from 5,500km to 11,600km, whilst the proportion of the network that
was sealed has dropped from 70% to less than 50% – due to the inclusion of a
large number of poor standard previously local roads.
In addition to the 12,494 km of operational SRN in the 2013/14 Statistics, there

were a further 78km of National Highway (mostly Postal Road & Mid-Hills Highway)
and 237km of Feeder Road ‘under construction’ (315km in total), plus an additional
2,093km of new road planned. These additions form part of the official ‘Cabinet-
approved’ network of 14,902km.

Table 3.1 : Composition of SRN by Surface Type (2005 & 2013/14)

2005 ‘de-facto’ Network 2013/14 SSRN
Surface Type
Length (km) Percentage Length (km) Percentage
Sealed 3,805 70% 6,369 51%
Gravel 985 18% 1,736 13%
Earth 638 12% 4,389 36%
Total 5,428 12,494
Source: SWRP/PIP 2007 and Strategic Road Network Statistics, DoR, 2013/2014
All of the PIP2 proposed additions are included in the extended network of
14,902km – together with many other links that were not selected based on the
accessibility and multi-criteria analyses conducted at the time.
The expansion of the Strategic Network to 14,800km should NOT be seen as an

ACHIEVEMENT of the DoR – but rather as a PROBLEM or a BURDEN that
potentially detracts from the primary function of the Department. The DoR itself has
done little to enlarge the network: this was achieved primarily by the re-designation
of existing roads and the inclusion of additional ‘potential’ roads.
3.5 Cabinet-Approved SRN 2012

The formal expansion of the SRN was approved by the Cabinet on 12-02-2069 (BS)
(26th May 2012). The approved network has a total length of 14,488km, comprising
21 National Highways totalling 5,257km and 208 Feeder Roads totalling 9,231km. A
total of 11,600km are in use (see above), with an additional 410km currently ‘under-
construction’ and a further 2,750km ‘planned’.
A comparison of the PIP2 proposals and the operational lengths of the currently
approved network, as detailed in the ‘Statistics of the Strategic Road Network’4
(SSRN 2013/14) published by HMIS, is given in Table 3.2.
Table 3.2 : Growth of operational SRN (km) 2005-2013

Designated Operational PIP Proposals SRN Statistics
Road Type
SRN (2005) SRN (2006) (2016) (2013/14)
National Highway 3,100 (15) 3,130 3,460 (17*)
Feeder Road 1,920 (51) 4,230 7,360 (196*)
Other (MH&PR) - - 1,674 (2)
Total 5,030 7,360 9,930 12,494**

Notes: * Excludes 2 designated NHs and 13 FRs under planning only
** An additional 315km u/c & 2,093km planned: Total = 14,902km
As noted above 4,889km of this extended network (36%) is of earth construction

only and may not be operational throughout the year. Many of the additional roads
included in the network are ‘non-engineered’ local roads that have been constructed
through local efforts – often by excavator – without effective drainage provision or
off-road supporting or retaining structures.
4
There are minor differences in road lengths between the Cabinet Approved document and the HMIS SSRN

This additional 4,889km of earth road will pose a major challenge to DoR due to the
potential demand for upgrading to all-weather standards, as is expected (by the
public and politicians alike) with the re-designation as a Feeder Road.
Furthermore the approved SRN includes an additional 2,093km of ‘planned’ new

roads which will require a substantial commitment of both technical and financial
resources if any significant progress is to be made.
Figure 3.1 illustrates the extent of the newly expanded and approved SRN of
14,902km as published in the SSRN 2013/14. The growth of network since 2007 in
excess of PIP proposals is mainly due to the take-over of elements of the local road
network and the extension of network to the north and in the Mid-Hills.
3.6 Road Network Condition

Regular annual surveys have been conducted of traffic volumes and the pavement
condition of the Strategic Road Network. The pavement surveys involve an
assessment of both the Surface Distress Index (SDI) and surface roughness,
measured by the International Roughness Index (IRI): the surveys included over
5,800km of sealed roads. Manual classified traffic counts are undertaken at 161
sites throughout the country for 72 hours at each site. These surveys are all
conducted by Consultants under contract to DoR, HMIS Unit.
3.6.1 Current SDI Data (2012)
The Surface Distress Index (SDI) is used as the primary indicator of road condition
to assess the requirements and priorities for maintenance interventions. In 2012, a
total of 5,830km were surveyed – 3,130km of National Highways, 2,630km of
Feeder Road and 70km of Urban Road. The total length was slightly less than in
2011 due to works being carried out on substantial lengths of road, particularly
within Kathmandu.
The SDI measure includes an assessment of all types of distress: cracks, potholes,
rutting, edge break, ravelling, scabbing, bleeding, shoving, and base and sub base
exposure. Incidences of distress are divided in minor and major defects that include
cracking, disintegration, deformation, texture failures, pavement edge faults and
patching. A 20% sample of road length was taken – involving the survey of 100m in
each 500 meters of road length. Pavement condition is evaluated on a score from 0
to 5: with 0 indicating a pavement section without any defects and 5 indicating
maximum possible deterioration.
The results are grouped into three bands – Good (SDI = 0.0 – 1.7), Fair (>1.7 – 3.0)
and Poor (>3.0 – 5.0). The results are summarised in Table 3.3, which illustrates
that around two-thirds of National Highways are in good condition and only 5% are
in poor condition. For Feeder Roads, around 45% are classified as being in good
condition and a further 37% in fair condition. The SDI values are dominated by
major defects, particularly cracking and ravelling.

Table 3.3 : SRN Pavement Condition - SDI (2012) – Sealed Roads only (km)
Pavement Condition (SDI)
Total Length
Road Class Good Fair Poor
(km)
0.0 – 1.7 >1.7 – 3.0 >3.0 – 5.0
National Highways 2,126 834 171 3,131
68% 27% 5% 100%
Feeder Roads 1,188 969 471 2,628
45% 37% 18% 100%
Urban Roads 26 28 15 70
38% 40% 22% 100%
All Roads 3,340 1,831 657 5,829
57% 31% 11% 100%
These results indicate a progressive improvement in SDI over previous years, as a

result of the inclusion of a number of newly built (or upgraded) sections and the
programme of periodic maintenance that has been implemented since 2008.
The measurement of SDI is dominated by cracking and ravelling, defects that are
important to road engineers, as they are indicative of the early stages of pavement
failure. These aspects may not be apparent to road users, as a road may be heavily
cracked but have a good ride quality. Conversely a road may have been recently
resealed, with consequent low levels of SDI, but have high roughness.
3.6.2 Current IRI Data (2012)
Roughness is a better measure of service quality to road users and a better

indicator of the underlying condition of the pavement. The proportion of the network
in poor and bad condition is much higher when judged by roughness (IRI) rather
than the Surface Distress Index (SDI). It is therefore recommended that both SDI
and IRI values should be considered in future when assessing the overall condition
of any road section.
Roughness is recorded on the International Roughness Index (IRI), which is a

measure of the vertical deviation of the road surface in metres per km. Four classes
of condition are identified and used in Nepal: Good – IRI <4; Fair – IRI = 4-6; Poor –
IRI > 6-8; and Bad – IRI > 8.
In 2012, a total length of 4,820km of sealed road were surveyed (see Table 3.4) of
which half was deemed to be in Good or Fair condition, with 17% in Bad condition
with an IRI in excess of 8m/km. The condition of the network as measured by both
the SDI and IRI of individual sections are illustrated geographically on the DoR
website.

Table 3.4 : SRN Pavement Condition - IRI (2012) – Sealed Roads only (km)
Pavement Condition (IRI)
Total Length
Good Fair Poor Bad
(km)
<4 4-6 >6-8 >8
National Highways 144.1 1535.1 958.7 297.2 2935.2
5% 52% 33% 10% 100%
Feeder Roads 4.0 673.5 706.3 502.9 1886.8
0% 36% 37% 27% 100%
All Sealed Roads 148.2 2208.7 1664.9 800.2 4821.9
3% 46% 35% 17% 100%
A comparison of the overall condition of the SRN (sealed sections only) measured
by SDI and IRI respectively is illustrated in Figure 3.2 below. It can be seen that the
‘surface’ (measured by SDI) is recorded as being in better condition than the overall
pavement and ride quality (measured by IRI).
Figure 3.2 : Road Network Condition (2012) Sealed Roads Only
3.7 Traffic Growth

Regular traffic counts have been maintained in Nepal since the late-1980s when a
series of automatic traffic counters were set up at a number of key sites on the SRN
in the Central, Eastern & Western Regions. The intent was to monitor traffic growth
and composition on the main highways. The programme has since been expanded
to include a large number of sites throughout the SRN, with manual counts
undertaken annually.
The PIP2 contained an analysis of 10 selected key sites throughout the country, for
which a regular and reliable series of data were available. The sites were selected
to be representative of different classes of road – Terai & Hill, East-West Highway,
links to Kathmandu, Highway & Feeder Road – so as to identify a range of traffic
volumes and varying growth rates. The data have been updated and the individual
counts are presented graphically in Figure 3.3: apart from the Mid & Far Western
Regions, the counts show average growth rates of between 5% & 9% per annum.

1000
1200
1400
1000
1500
2000
2500
3000
0
0
200
400
600
800
500
1000
2000
3000
4000
5000
6000
7000
8000
9000
0
10000
1992 1992
1993 1993 1992
1994 1994 1993
1995 1995 1994
1996 1996 1995
1997 1997 1996
1997
1998 1998
1998
9.4%
1999 1999
1999
10.0%
2000 2000 7.4%
2000
2001 2001 2001
2002 2002 2002
2003 2003 2003
Walling
2004 2004
Thankot
Panchkal
2004
2005 2005 2005
2006 2006 2006
2007 2007 2007
2008 2008 2008
2009 2009 2009
SOILTEST/AVIYAAN/PRESTIGE JV
2010 2010 2010
2011 2011 2011
2012 2012 2012
1000
2000
3000
4000
5000
6000
7000
1000
1500
2000
2500
3000
3500
4000
0
500
1000
1500
2000
2500
3000
3500
4000
4500
0
500
1000
1200
1400
1600
0
200
400
600
800
1992 1992 1992
1992 1993 1993
1993 1993
1994 1994 1994
1994 1995 1995
1995 1995
1996 1996 1996
1996 1997 1997
1997
6.5%
1997 1998 1998
1998
9.4%
1998 1999 1999
5.2%
1999 1999
2000 2000 2000
13.2%
2000 2001 2001
2001 2001
2002 2002 2002
2002 2003 2003
2003
Charali
2003 2004 2004

2004
Bharatpur
Bard'ghat
2004 2005 2005
Ataria (N)
2005 2005
2006 2006 2006
2006 2007 2007
2007 2007
2008 2008 2008
2008 2009 2009
2009 2009
2010 2010 2010
2010 2011 2011
2011 2011
2012 2012 2012
2012
1000
1500
2000
2500
3000
3500
4000
4500
5000
0
500
Mid Term Review of Sector Wide Road Programme & Priority Investment Plan
1000
1500
2000
2500
3000
3500
0
500
1000
1500
2000
2500
3000
3500
4000
0
500
1992
1992 1992 1993
1993 1993 1994
1994 1994 1995
1995 1995 1996
1996 1996 1997
1997 1997 1998
6.9%
6.4%
1998 1998 1999

1999 1999 2000
2000 2000 2001
17.6%
2001 2001 2002
2002 2002 2003
Babai
2003
Figure 3.3 : Traffic Count Data at selected Sites (1992-2012)

2003 2004
Pathl'ya N
2004 2004 2005

Itahari (N)
2005 2005 2006

2006 2006 2007
2007 2007 2008
2008 2008 2009
2009 2009 2010
2010 2010 2011
2011 2011 2012
2012 2012
Final Report – February 2015

22.
4. Review of Budgets & Expenditure

4.1 Background
A review and analysis of DoR budgets and expenditures – for both recurrent and
capital expenditures – has been undertaken for period since the completion of the
PIP2 in 2007. The objective is to compare the actual performance of the DoR
against the planned budget forecasts from the PIP2. The process also identifies the
proportion of “off-budget” expenditure on items that were not part of the original
strategy. One serious concern is the large number of such projects that are included
in the overall programme – but with only a nominal budget allocated annually.
4.2 Analysis of Budgets & Expenditure

A review and analysis of both budgets and expenditures for the period since the
completion of the PIP2 reveals that both have increased substantially over the past
7 or 8 years, see Table 4.1 and Figure 4.1. Since FY 2006/07, the annual budgets
have increased from around Rs 5.4 billion to over Rs 31 billion in the last FY, whilst
expenditure has increased from Rs 4 billion to over Rs23 billion.
Table 4.1 : DoR Budgets & Expenditure FY 2006/07 – 2012/13 (Rs ‘000s)
FY Budget Expenditure
Govt Foreign Total Govt Foreign Total
2006/07 2,856,446 2,540,282 5,396,878 2,223,484 1,808,599 4,032,083
2007/08 3,580,101 3,257,604 6,695,768 3,585,641 1,478,922 5,064,563
2008/09 5,869,807 5,563,383 12,284,222 5,388,208 3,439,056 8,827,264
2009/10 10,730,981 7,138,257 17,764,909 10,327,970 6,385,197 16,713,167
2010/11 13,858,055 6,396,326 20,254,381 13,009,663 5,560,367 18,698,030
2011/12 15,508,481 8,036,853 23,545,334 11,672,306 7,146,736 19,166,785
2012/13 31,050,150 23,308,429
Source: DoR Planning & Monitoring Unit
The proportion of foreign aid budget has declined progressively from around 50% in
2006/07 and 2007/08 to current levels of 30%, see Figure 4.1.
Figure 4.1 : DoR Budgets & Expenditure (2006-2012)

Regular maintenance activities (funded by the Roads Board) accounted for 16% of
the overall budget, with donor funded projects (WB, ADB, JICA, India and China)
accounting for a further 32%. Half of the total budget comprised ‘other’ GoN-funded
projects and programmes including a series of ‘Central Level’ Programmes, Urban
Road projects (dominated by expenditure in Kathmandu) and 32 small-scale road
projects, with an average annual budget of less than Rs 50 million (US$ 500,000).
Table 4.3 : Analysis of DoR Budget & Expenditure (FY 2012/13)
Budget Expenditure Percent

Budget Items Budget
Rs (thousand) Spent
Regular Maintenance (Roads
5,043,813 16% 2,986,607 13% 59%
Board)
Donor Funded Projects 9,889,331 32% 7,091,244 30% 72%
Central Level Programmes 10,629,882 34% 8,580,054 37% 81%
32 Sundry Road Projects 1,398,153 5% 1,127,227 5% 81%
Kathmandu Roads (& other
3,518,844 11% 3,152,272 14% 90%
urban)
Sundry Items (FS, Safety, etc) 570,127 2% 371,026 2% 65%
TOTAL 31,050,150 100% 23,308,429 100% 75%
The ‘Central Level’ programmes involve a mix of projects including some strategic
links – eg: Mid-Hills Highway (20%) and Postal Roads (15%) – but also many which
are NOT strategic: for example ‘Local Road & Bridge Construction’ (26%), ‘Roads
Connecting Two Districts’ (21%), and ‘Roads addressing Regional Imbalance’
(10%). These ‘non-strategic’ budgets cover a large number of small-scale projects:
each of the Divisional Offices may have upwards of 150-200 contracts running on
small local projects, each with an annual budget allocation of between Rs 5-10 lacs
(US$ 5-10,000). It is doubtful whether anything significant can be achieved with this
level of funding, whilst effective supervision and administration of the numerous
contracts (many in remote areas) is impractical with the resources available.
Eleven percent of the total DoR budget for 2012/13 (Rs 3.5 billion) was allocated to
Urban Roads – mostly (70%) for the Road Widening Project in Kathmandu. The
responsibility for urban roads should rest with the appropriate Municipality.
It is estimated that the ‘non-strategic’ elements may represent around 30%-35% of

the total budget – and over 50% of the Government contribution to the budget. A
review of the specific non-PIP elements of the current year’s Budget (2013/14) is
given below.
Donor Funding
Donor funded projects represent around a third of the total DoR budget. An analysis
of expenditures on the 12 major projects active over the period from 2006/07 to
2011/12 (see Table 4.4) reveals that a total of Rs 31.5 billion was spent, including a
government contribution overall of around 25%. The major donors active in the
roads sector are ADB (just over Rs 9 billion over the 6 years), WB (Rs 5.5 billion),
India (Rs 3.9 billion) and JICA (Rs 3.6 billion).

These projects involve mostly the upgrading of the existing network or, in limited
cases, new construction – ie the bulk of the capital expenditure on the improvement
of the SRN. Excluding other non-Donor improvement projects, it would thus appear
that the DoR is spending on average a little over Rs 6 billion per year on upgrading
and new construction – representing around a third of total expenditure.
Table 4.4 : Major Donor Funded Projects (2006-2012)

Expenditure ( Rs thousands )
(2006/07 - 2011/12)
Name of The Project
Donor
GON Foreign Total
Percent
Postal Roads (India – from 2011) 1,974,419 758,621 2,733,040 28%
RMDP (WB) – closed 2006/07 75,567 402,634 478,201 84%
STFP/STEP (ADB) 862,360 2,258,722 3,121,082 72%
RNDP (ADB) 712,427 2,536,081 3,248,508 78%
RSDP (WB) 791,641 4,956,304 5,747,945 86%
RCSP (ADB) 1,368,359 4,283,764 5,652,123 76%
Road Improvement Project (India) 1,297,573 3,178,098 4,475,671 71%
Banepa-Sindhuli-Bardibas (JICA) 277,888 2,241,190 2,519,078 89%
Syafrubesi-Rasuwagadhi (China) 403,004 912,623 1,315,627 69%
Kathmandu-Bhaktapur (JICA) 376,934 1,351,800 1,728,734 78%
Trade Route Devel Project (WB) 33,832 161,877 195,709 83%
Flood Damage Rehabilitation 117,392 263,724 381,116 69%
Total 8,291,396 23,305,438 31,596,834 74%
4.4 Comparison with PIP Forecasts

As indicated above, it is evident that the total DoR budget allocations are broadly
similar to the planned level – although the distribution of expenditure is significantly
different. The PIP2 budget assumed 28% of the total budget would be spent on
maintenance – 10% on regular maintenance (routine & recurrent) & 18% on
periodic – 32% on upgrading of earth & gravel roads to sealed bitumen, and 24%
on new construction, including the then committed projects of WB, ADB & JICA. It
was proposed that construction of a new link between Kathmandu and the Terai
would account for around 16% of the overall budget over the 10 years, mostly in the
latter (post 2011) years.
In contrast, an analysis of the 2012/13 DoR expenditure shows only 13% spent on
maintenance, 30% on donor funded projects (mostly upgrading), 42% on various
central-level programmes and minor road improvements and 14% on urban roads.
A comparison with the PIP2 forecast budget for 2007-2011 is given in Table 4.5.
The main differences are:
the significantly lower proportion of the total funds allocated to maintenance;

the large number of projects, with small allocations, included under the
‘central-level’ and sundry roads programmes; and
the inclusion of Urban Roads (and the Kathmandu Road widening).

Additionally, it should be noted that the earlier PIP2 budget allowed for the inclusion
of significant expenditures on major projects – specifically the improvement of
access to Kathmandu either via the Fast Track or a tunnel approach from the west.
Table 4.5 : Comparison of PIP2 Budgets and Actual Expenditure

PIP2 Budget 2007-2011 Expenditure (FY 2012/13)
Total Budget Expenditure
Category Category
Rs bn percent Rs bn percent
Maintenance 15,572 29% Regular Maintenance 2,987 13%
Upgrading 17,809 33% Donor Funded Projects 7,091 30%
New Construction 14,039 26% Central Level Programmes 8,580 37%
32 Sundry Road Projects 1,127 5%
Kathmandu access 3,000 6%
Urban Roads (incl KTM) 3,152 14%
Other 3,340 6% Sundry Items 371 2%
TOTAL 53,759 100% TOTAL 23,308 100%
4.5 Implementation of PIP2 Proposals

A detailed examination of the list of priority schemes proposed in the PIP2 has
shown that – with very few exceptions – all the projects listed in Table 10.5 of the
PIP Final Report are either completed, in progress or under procurement. The
priority programme included seven components – see Annex 1:
(i) Committed Schemes
A total of 16 committed schemes funded by ADB, WB, DFID, JICA, China & India
were included with a total length and cost of 2,400km and Rs 21.5 billion (incl
1,500km of Terai Roads funded by India at Rs 9 billion). These are mostly complete
or substantially complete, with the exception of the Indian-funded Terai Roads
component on which progress is slow.
(ii) Upgrading Schemes
These were the highest priority among the non-committed schemes – 14 upgrading
schemes totalling over 700km – providing sealed road access to 9 District HQs.
Nine of these are now complete, with work on-going on the remaining five: seven of
the projects were taken up by the Indian Funded Road Improvement Project (RIP).
(iii) New Construction (Feeder Roads Standard)
Five new sections of Feeder Road were proposed (total 366km) to be constructed
initially to earth track standards, with upgrading subject to feasibility study. With one
exception that is still at the planning stage, the remaining four tracks have been
opened and sections are being upgraded to bitumen standard.
(iv) New Construction (Earth Track)
A further 385km (four schemes accessing remote District HQs) were recommended
for construction as earth tracks, mainly through local efforts. Two of these are now
open (Chame & Gamgadhi) and the remaining two (Dunai & Simikot) are under
construction.

(v) Upgrading of Local Roads to SRN Standards
PIP2 recommended the upgrading of a number of Local Roads to SRN standards

and prioritised 11 such roads (636km), based on their strategic significance. Most
were in the Mid-Hills and formed part of the proposed Mid-Hills Corridor. Work is
currently on-going on 9 of these roads, which all form part of the (now extended)
SRN.
(vi) New Construction to access Kathmandu
The previous PIP – in common with the earlier PIP in 1997 – recommended that a
detailed feasibility study be undertaken of a potential new route linking Kathmandu
and the Terai, together with possible improvements to the existing route. It was
noted, in both reports, that the very substantial time and distance savings, coupled
with substantial commercial traffic volumes, would likely justify the significant
investment requirements and raise the possibility of commercial viability and the
involvement of private sector finance.
The Government has pursued the ‘Fast Track’ option – a new road following the
Bagmati River alignment and connecting to the East West Highway at Nijgardh,
close to the site of the proposed Second International Airport. The Nepal Army (NA)
has been engaged for ‘track-opening’ and the Government is seeking to attract the
private sector to invest in the construction and operation of a four-lane road: to date,
negotiations with two Indian Consortia have failed to reach agreement.
A second, alternative, ‘tunnel’ alignment linking more directly to Hetauda is being

promoted by a privately funded Nepali-based consortium. The route is shorter but
potentially more costly and challenging as involves significant tunnel construction, in
total around 7km in length.
In parallel with these initiatives, the Japanese are investigating improvements to the
main approach to Kathmandu from the west (Prithvi Highway) involving a tunnel to
avoid the steep and unstable 15km section between the Valley Rim (Nagdhunga)
and Naubise. The route options were earlier evaluated by ADB.
Both this option and the Fast Track were proposed for ‘further investigation’ in PIP2,
together with the upgrading of alternative, more direct routes linking to Hetauda.
The critical issue now is to decide which of the options should be pursued as they
all – to an extent – compete for the same traffic. The worst option could be to
pursue all three, with the result that none are viable and substantial sums of money
are wasted on projects that may never be satisfactorily completed.
(vii) Other Strategic Road Improvements
The PIP2 additionally recommended the upgrading of the Kathmandu Ring Road,
improvements to Narayanghat-Mugling, construction of a by-pass to Hetauda, and
the development of an alternative route to the Koshi Barrage in eastern Nepal. With
the exception of the Hetauda by-pass, the remaining three projects are in-hand:
work has started (funded by China) on the Ring Road Upgrade and the other two
projects are under procurement through the WB and ADB.

Implementation of non-PIP Schemes
A review of the current year budget (2013/14) reveals a total of 38 ‘budget heads’
for roads NOT included in the PIP2, totalling over Rs 11 billion5 (US$ 110 million) –
or around a third of the total budget. These are listed in Annex 2.
Many of the projects (budget heads) are relatively small but those with an annual
budget in excess of Rs 100 million (US$ 1 million) include:
Kanti Lokpath (Rs 120m);
Sandikharka-Dhorpatan (Rs 160m);
Regional Level Local Roads (to redress regional imbalance) (Rs 830m);
Gaighat-Hetauda (Rs 150m);
Bridges on Local Network (Rs 1,700m);
RIP I & RIP II – not incl in PIP2 (Rs 970m);
Urban Roads (incl Kathmandu Road Widening) (Rs 2,700m);
Kathmandu Sustainable Transport Project (Rs 670m);
Flood Rehabilitation (Rs 300m);
Tourism roads (Rs 360m);
Trade Route Development Project (Rs 940m);
North-South Routes (to Chinese Border) (Rs 570m); and
Potential Strategic Roads (Rs 1,000m)
This analysis confirms the ‘deviation’ of the budget from the primary objectives of
maintaining and strengthening the Strategic Road Network – as originally defined in
the PIP2. Of particular concern are the substantial on-going expenditures on Urban
Roads (Rs 3.3 billion) and general items relating to the Local Road Network (at
least Rs 2.5 billion). Additionally, significant funds are allocated to specific local
roads (some of which are listed above) and to extensions and improvements to the
SRN that were not prioritised under PIP: this latter group of projects include the
additional links to the Chinese Border and the expansion of roads connecting to the
Indian Border (under the Trade Route Development Project).
5
It is not possible to quote a figure exactly as some projects (eg RIP I & RIP II) contain some elements that are included in
PIP2 and some not

5. Maintenance Obligations
5.1 Introduction
It is generally recognised that the primary function of the DoR is the maintenance of
Strategic Road Network. The review of DoR Policy & Strategy (Part II of the ToR)
highlighted the importance of maintenance and the need for improvements to
current practice, including a review of the intervention criteria and overall approach
to ‘managing’ the network.
The DoR is in the process of reviewing and developing a new and comprehensive
Maintenance Policy for the Strategic Road Network. The Consultants have been
provided with a copy of an internal draft of the proposals and have examined this in
the context of the five specific tasks set out in Part II of the ToR:
(i) Review & revise existing DoR goals, strategies, etc;

(ii) Update threshold & policy for upgrading from earth/gravel to BlackTop;
(iii) Review maintenance intervention strategies & surface options based on traffic
and economics;
(iv) Review approach to periodic maintenance & develop suitable ranking criteria;
and
(v) Review feeder road (staged) construction policy.
These activities – which focus primarily on the maintenance and upgrading policies
and strategies of DoR – require close cooperation and liaison between DoR and the
Consultant. A Working Group comprising key members of staff of the DoR was
formed to participate in these discussions.
Items (i) to (iv) above are discussed in greater detail in Section 5.3 to 5.6 below: the
review of Feeder Road construction policy (item (v)) is included in Chapter 6 as it
refers to capital construction works.
5.2 Approaches to Maintenance

The previous PIP2 Study evaluated the maintenance options and developed a 10-
year maintenance strategy and programme based on an analysis using the HDM-4
model. HDM evaluates ALL interventions – including regular annual maintenance
(calculated on a per km basis), periodic maintenance (including reseals, overlays
and rehabilitation), as well as upgrading from gravel to seal. The HDM model does
not specifically consider earth roads: strategies for upgrading and maintenance
have to be evaluated separately. The maintenance categories defined in HDM differ
marginally from the definitions adopted within the DoR.
The DoR considers Routine, Recurrent, Special and Emergency Maintenance as

‘regular’ activities for which budgets are allocated on a per km basis, with different
rates adopted in the Hills and Terai and also potentially by class of road. Periodic or
Cyclical Maintenance requirements, which generally involve a re-seal (SBST or
slurry seal), are determined through the ARMP process: they are generally based
on the age of the pavement with adjustments for condition (as measured by SDI),
traffic volume and the strategic nature of the link. Major rehabilitation and
reconstruction (including overlays) or any upgrading works are treated separately
for budget and prioritisation purposes. Most commonly these works are undertaken
through external donor-funded projects. [Minor rehabilitation of short sections may
however be included through regular DoR budgets.]

Items 5, 6 & 7 – Periodic, Rehabilitation and Overlay – are the main concern, where
options are available and choices have to be made: for example, whether to apply a
(cheaper) reseal which will resolve immediate issues with cracking, etc or whether
to apply a (more expensive) asphalt concrete overlay that will resolve the immediate
problems as well as providing additional strength, an improved running surface and
increasing pavement life. These activities represent the ‘cross-over’ between
recurrent and capital works and need to be carefully evaluated.
Item 8 (Upgrading) is clearly capital works – and is generally separately assessed –

although the HDM model can be used to identify the economically optimal timing for
upgrading from earth or gravel to bitumen seal or for widening from a single lane to
two lane carriageway.
5.2.2 Annual Road Maintenance Plan

The DoR ARMP process identifies priorities and defines budgets based on lengths
of road, by Division, for the following maintenance categories: Routine, Recurrent,
Periodic and Special. Some limited additional amounts are also included for specific
elements of Rehabilitation, Reconstruction and Upgrading, together with allowances
for Emergency Works, Bio-engineering Works, Road Safety and Routine Bridge
Maintenance.
The process is based on a spreadsheet that is accessed on-line, with the required
data collected centrally by HMIS. The primary data used are: section length, terrain
type, traffic volume, pavement age, Surface Distress Index (SDI) and strategic
function of the link. IRI data are also collected annually but are NOT an input to
ARMP. It is considered that the ARMP model does not differentiate adequately
between the traffic groupings and does not reflect the additional deterioration that is
evident on the higher trafficked roads – and specifically the increased truck loads
that are now experienced.
The results of the analysis are not fully ‘trusted’ by the Divisions, indicating that
model may not be realistically assessing the options. It is also widely acknowledged
that it is possible to ‘manipulate’ the results through use of ‘age’ factor, to raise the
ranking of a particular project.
The procedures currently adopted by the DoR follow the guidelines and output from
the ARMP spreadsheet to determine priorities and maintenance interventions and
budgets up to – and including – periodic maintenance. The ARMP process does
NOT consider the potentially more significant demands for rehabilitation or overlays.
It is evident that the existing ARMP process is in need of review and revision, in
recognition of changes in the road network and traffic loadings. The present model
structure provides an indication of ‘where’ and ‘when’ an intervention is required: it
does not indicate “what” should be done in terms of remedial action. It is
recommended that the possibilities and potential of expanding the scope of the
ARMP be investigated so as to identify sections of road network for rehabilitation
and/or overlay.
5.2.3 Funding for Maintenance
Funding for all regular maintenance – up to and including periodic reseals – is

available through Roads Board Nepal (RBN). RBN receives funds from a fuel levy
(Rs2 per litre for diesel & Rs4 for petrol) plus 5% of new vehicle registration tax and

some limited road tolls. The tolls produce a relatively small amount of money with
disproportionately high costs and accompanying adverse publicity.
The annual revenue raised by Government is currently around Rs5bn, of which

Rs4bn (80%) is passed to RBN. The funds are allocated by RBN to the DoR,
Districts and Municipalities. The DoR received Rs3.6bn in FY 2012/13. The overall
arrangements are satisfactory, with a relatively secure source of funding although
the need for periodic increases could be avoided if the levy were established as a
percentage of fuel costs (as opposed to a flat rate).
5.2.4 Specific Maintenance Issues

‘Routine-Recurrent’ Issues
The introduction of individually contracted ‘lengthmen’ as part of the SMD process

was widely acknowledged as a major advance in improving the quality of routine
maintenance of the SRN. However, after almost 20 years, questions are now being
asked as to whether the continued use of lengthmen is appropriate or cost effective.
The annual expenditure on ‘Routine’ maintenance (at Rs 63,000/km) is considered
high in relation to that incurred on ‘Recurrent’ maintenance (Rs76,000/km).
‘Otta Seal’ Issues
A number of problems associated with early surface failures have been reported on
roads treated with Otta Seal. Upwards of 1000km of roads, mostly in hilly areas in
the MW & FW Regions, have been constructed with Otta Seaal (generally as an
‘upgrade’ from gravel) over the past 7-8 years. A number of failures were apparent
within 2-3 years of construction, compared with an expected life of 5-8 years.
Otta Seals were introduced from 2006 onwards as a potential means of providing a
bitumen surface over an existing gravel pavement at a relatively low cost. The
approach required only a single layer of seal, mixed with locally sourced material,
rather than a base layer of graded material and (imported) chips used for DBST.
The bitumen content is higher with the Otta Seal but this additional cost is offset (in
the hills) by the savings from the transport costs of a reduced volume of material
imported from the Terai.
DoR’s experience with Otta seal is mixed and appears to be dependent primarily on
the condition of the base and sub-base layers. If the seal is applied over a coarse
and poorly graded and compacted gravel base, it is highly probable that the seal will
fail, especially if subjected to heavy vehicle loads. The same would happen with
SBST or DBST. If however the seal is laid over a well laid and compacted base and
sub-base it should perform satisfactorily: in short, it is not a cheap way to
compromise on the quality of the base and sub-base but may offer benefits if the
transport cost of chips/aggregate required for SBST/DBST are high.
Alternative Maintenance Strategies
The ToR requests a review of maintenance intervention strategies, together with the
development of associated policy guidelines on the criteria to be adopted regarding
alternative surfacing options. It is assumed that this refers primarily to the periodic
(or cyclical) maintenance activities and not to rehabilitation, reconstruction, overlay
or upgrading.

One potential option would be the greater use of Asphaltic Concrete (AC) overlays
in place of the regular SBST/DBST resealing. This option was examined in some
detail using the HDM model in the previous SWRP/PIP2.
The conclusion was that the increased use of AC overlays, even on lower trafficked
roads, was shown to be cost-effective, as it reduced the extent of subsequent
expenditure on (more expensive) rehabilitation. Additionally, the AC overlays
improved the overall network condition at a similar cost. Reseals (although cheap)
do not reduce roughness or add strength to the pavement.
The following diagrams (Figure 5.2), taken from the PIP2 Final Report, illustrate the
overall condition of the road network, throughout a 10-year cycle, comparing DoR
practice, of using AC overlays only on roads with daily traffic in excess of 3000 vpd,
with an alternative strategy of allowing the HDM model to determine the most
effective intervention, in terms of total costs – ie the cost of the intervention, plus
associated maintenance costs and total vehicle operating costs. An additional
bonus is that the network is in better (and stronger) condition at the end of the 10
years.
Figure 5.2 : Comparison of Network Condition with Increased use of AC Overlays

100% 100%
90% 90%
80% 80%
Percent in Condition Range
Percent in Condition Range
70% 70%
60% 60%
50% 50%
40% 40%
30% 30%
20% 20%
10% 10%
0% 0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Year Year
Good Fair Poor Bad Good Fair Poor Bad
Source: SWRP/PIP2 (2007)
5.3 Review Maintenance Strategies and Policies

The primary reference document is the Departmental Policy Document, “The DoR
Strategy”, dated July 1995. This outlined the DoR Strategy and comprised 6
OBJECTIVES, 9 POLICY OPTIONS and 51 KEY MEASURES. These all led toward
the End Goal of the DoR, established in 1991/92 during the preparation of the 9th
Plan, of “the reduction of total road transport costs”.
The Objectives, Policy Options and Key Measures were described in an Annex to
the 1995 Strategy Document. Much progress has been made over the past 18
years and it is appropriate now to review the current status and determine whether
they are still relevant in today’s context or whether additional issues should be
included. The overall goal should also be reviewed and potentially broadened to
include social, equity and environmental concerns.
Three of the 6 Objectives relate to ‘policy’ level issues (1. Policy Level Awareness;
2. Network Planning; and 3. Direction of Donors) and three relate to ‘operational’
level issues (4. Improved Maintenance Operations; 5. Needs-based Budgeting; and
6. Plant Management).
The 9 Policy Options, designed to realise the above objectives, are defined as:


These are each described in greater detail below, together with an assessment of
the current status and requirements for revision.
Emphasises that the DoR priority is the development and maintenance of the SRN
which (then) comprised 5,430km of road, of which 2,694km (50%) were bitumen
surfaced. The remaining Urban, District & Village Roads (4,194km) were to be the
responsibility of the Municipalities, DDCs and VDCs respectively. Whilst this has
been adopted in theory, in practice there is still considerable degree of overlap –
especially at the Divisional level and in regard to ‘local’ bridges.
This action has been largely implemented with the establishment of the HMIS and
the regular collection of data on traffic levels and road condition.
This action has been largely implemented with the establishment of the Roads
Board Nepal which is funded through a fuel tax levy, road tolls and share of vehicle
registration taxes. The RBN allocates funds to the DoR Divisions, Municipalities and
DDCs for routine and recurrent maintenance activities – although the level of
funding is generally considered inadequate.
The establishment of the Strengthened Maintenance Divisions (SMDs) with an

emphasis on the Routine and Recurrent Maintenance activities has significantly
improved the performance of the Divisions and this – coupled with a more rigorous
application of periodic or cyclic overlays (see below) – has resulted in an overall
improvement to network condition and a reduced demand for premature
rehabilitation or reconstruction.

This adoption of a periodic or cyclical maintenance programme – as applied through

the ARMP process – and based on pavement age, visual surveys, traffic levels and
strategic importance has been effective in extending the pavement life and reducing
the requirements for early rehabilitation. It may however now be appropriate to
reconsider both the number of parameters used and the threshold criteria adopted.
A separate centralised Bridge Unit has been established in DoR and a detailed
inventory of SRN bridges undertaken. Separate budgets and donor-funded projects
have been set up to assist with the maintenance needs. [The issue of non-SRN
bridges handled by the Divisions needs to be resolved.]
The issues associated with slope-stability have been widely examined and (in
general) cost-effective solutions developed.
Limited progress was made (in the 1990s) in regard to the establishment of the
Staged Construction Standards for Low Cost Feeder Roads: a review of the Feeder
Road Construction Policy is included in Chapter 6. It is unclear whether National
Standards have been developed and approved for other classes of road.
This action was addressed through the Strengthened Equipment Division (SED)
initiative, which proposed to put the Heavy Equipment Divisions (HEDs) onto a
more commercial footing, whilst providing adequate, reliable and appropriate
equipment on a cost-effective basis to the Divisions and local contractors.
5.4 Update threshold & policy for upgrading from earth/gravel to

Black Top
The “Classification and Design Standards for Feeder Roads” (February 1994)
proposed a methodology for determining the threshold traffic volume for upgrading
from earth to gravel and gravel to bitumen. This was further elaborated in a
Discussion Paper “Threshold Traffic Levels for Feeder Road Upgrading” (May
1995).
These documents presented a methodology, using the HDM model, for calculation
of the ‘total transport costs’ – ie construction and maintenance costs plus vehicle
operation costs – for typical Hill and Terai roads with increasing traffic volumes. The
construction and maintenance costs and vehicle operating costs were calculated at
1995 levels. The resultant threshold traffic levels for upgrading from earth to gravel
were determined as 35 and 60 vpd for Hill and Terai roads respectively: for
upgrading from gravel to bitumen, the threshold levels were established as 92 and
100 vpd respectively.
The threshold traffic volumes have been re-calculated for earth, gravel and bitumen
roads based on current construction, maintenance and vehicle operating costs. The

analysis has assessed the benefits of upgrading from a fair-weather earth road to
an all-weather gravel surface (including all drainage structures) and, subsequently,
from all-weather gravel to a sealed bitumen surface. This allows the costs and
benefits to be separately attributed to each improvement stage and the associated
traffic volumes required to generate the necessary benefits have been calculated.
The benefits of upgrading to an all-weather gravel surface accrue from the road
being open for 12 months each year and the reduced vehicle operating costs (and
higher speeds) possible on the improved surface. The benefits from subsequent
upgrading to bitumen seal result from further reductions in vehicle operating costs,
together with savings in the annual recurrent maintenance costs of the gravel road.
Revised thresholds have been calculated (see Annex 3) as 40 vpd (excl m/cycles)
for upgrading from earth to all-weather gravel and as 90-100 vpd (excl m/cycles) for
gravel to bitumen. Similar thresholds apply in both the hills and Terai. It may
however be desirable to seal hill roads at a lower traffic level due to the effects of
gravel loss on steep gradients and the difficulties associated with re-gravelling at
regular intervals.
As with the earlier analysis, it should be emphasised that these thresholds are not
absolute values but are indicative of the traffic levels required to identify a trigger
point at which a detailed feasibility study should be initiated.
5.5 Review maintenance intervention strategies & surface

options
The present intervention strategy in regard to periodic maintenance is determined
primarily through the ARMP process, which considers the age of the pavement, the
SDI, the traffic flow group and the strategic nature of each link. Data on IRI are
collected but are not currently used in the analysis.
There is NO formal process to identify the needs for rehabilitation or reconstruction,

nor to determine what form of treatment or improvement should be applied. Each
Division can make an application, supported by evidence of failure (eg
photographs), for funding for the rehabilitation or reconstruction of specific sections
of the SRN but this generally applies only to relatively short sections that have
failed, rather than the comprehensive reconstruction of the whole length of a
section.
The following Tables (taken from the HDM analysis conducted in PIP2, 2007)
present the assumptions adopted in the HDM analysis to ‘trigger’ resurfacing or
rehabilitation: Table 5.1 represents an interpretation of the current DoR approach,
with AC overlays only applied when traffic levels exceed 3000 vpd, and Table 5.2
presents the alternative approach that was tested of applying AC Overlays at lower
traffic levels and lower IRI (see Section 5.2.4 above).

Table 5.1 : Intervention Levels for Resurfacing & Rehabilitation

AADT Range (incl motorcycles)
IRI Range < 1,000 1,000 – 3,000 > 3,000
<8 Seal Seal Overlay
8 – 10 Seal Rehab Rehab
> 10 Rehab Rehab Rehab
Table 5.2 : Modified Overlay Intervention Levels
AADT Range (incl motorcycles)
IRI Range < 1,000 1,000 – 3,000 > 3,000
<5 Seal Seal Overlay
5–6 Seal Overlay Overlay
6–8 Overlay Overlay Overlay
8 – 10 Overlay Rehab Rehab
> 10 Rehab Rehab Rehab
The Consultants recommend the development of the current ARMP process to

expand the range of possibilities considered, including – for example – the adoption
of criteria and thresholds to identify the need for rehabilitation and/or reconstruction
or overlay through the use of both IRI and SDI indicators, together with traffic levels,
strategic indicators and age of the pavement.
The Consultants consider that the current approach adopted by DoR adequately
identifies the needs for routine, recurrent and periodic maintenance but does not
adequately address – in a structured manner – the needs for overlays, rehabilitation
or reconstruction. These interventions are presently assessed on an ad-hoc basis,
generally in conjunction with the design and development of programme of external
donor financing. There is a need to introduce a more rigorous impartial approach,
based on the available data and forecasts of future conditions.
It is recommended that a simplified model be developed and incorporated into the

ARMP to identify the future overlay, rehabilitation and reconstruction needs, based
on the data that are currently available. This may then be used as a forecasting and
budgeting tool to assess the overall maintenance requirements on an annual and
recurring basis, including an indicative budget for inclusion in the revised PIP to
2022.
5.6 Review approach to periodic maintenance & develop ranking

criteria
As indicated above, the Consultants believe that the current approach to identifying
the needs for periodic maintenance, based on the ARMP, is generally appropriate,
although it is recommended that the process be extended to include rehabilitation
and reconstruction – as well as identifying the need for upgrading.
It is recommended (in line with the new policy document) that the approach using
the ARMP is extended to include ‘Rehabilitation and Overlay’ options, based on a
range of additional intervention criteria and thresholds. The ARMP model should be
extended to identify and prioritise additional activities, including rehabilitation and
AC overlays. This will require establishing intervention criteria based on IRI, SDI
and traffic level – along the lines set down in the new policy document – together
with recommended remedial actions.

It is noted that the new DoR Maintenance Policy document introduces more specific
recognition of traffic volume and refines the definition of types of maintenance. The
Annexes of the new Policy Document also specify a detailed series of intervention
criteria, together with recommended actions: these values need to be reviewed and
subsequently incorporated into an extended version of the ARMP.

6. Development & Upgrading of SRN

6.1 Strategy for Development
The previous PIP adopted a two-stage process for the development and expansion
of the SRN. The first stage involved establishing the extent of the future network by
identifying all potential links that could be included in an extended SRN, together
with an evaluation – using a multi-criteria screening approach – of the viability and
status of each link. The second phase examined the overall network and assessed
the demands and priorities for the improvement or upgrading of individual links.
There is no magic number regarding the desired length of the SRN: the inclusion of
any particular link should be based primarily on its function or position within the
network. The PIP2 took the existing designated and ‘de-facto’ strategic networks (of
around 5,000km and 7,500km respectively) and examined extensions to bring the
total length to around 10,000km by 2016. This scale of growth was considered
appropriate given the nature of the existing network, the traffic demands, the
distribution of population and economic activity, and the capacity of the institutions
to manage, construct and maintain the infrastructure.
The SRN as originally defined (in 1995) comprised 15 National Highways and 51
Feeder Roads – each with a clear function. National Highways were the primary
links between the regions and to the main cities and border crossings: specifically,
the National Highway network comprised the East-West Highway (the main unifying
link from east to west in the Terai), links to the main centres and regional head-
quarters in the hills, and connections to the main border crossings with India and
China.
Similarly, a clear definition of Feeder Roads was established. The links to all District
Headquarters were classified as Feeder Roads, together with major links between
NHs (carrying over 100vpd) and links to major sites of industry, commerce, tourism
or power generation. All other roads were classified as either District, Village or
Urban Roads and were to be the responsibility of the respective District or Village
Development Committee or Municipality.
The primary function of the SRN in 1995 was to provide connectivity to all District
HQs and to enable balanced regional growth to take place in an efficient and cost
effective manner. Large areas of the country were without motorable road access
and a programme of staged construction of new Feeder Roads was proposed in the
initial PIP1 of 1997. Few local roads existed – apart from in the Terai and urban
areas – and traffic volumes away from the main centres were low and dominated by
truck and bus movements.
The DoR Strategy document of 1995 recommended the decentralisation of the road
network administration, with the responsibility for local roads devolved to the
Districts and Municipalities. Subsequently a separate department (DoLIDAR) was
established in the Ministry for Local Development for the coordination of local roads
at the District and Village level. A series of District Transport Master Plans (DTMPs)
were prepared in each District to coordinate the development of the local road
networks at the District level.
Subsequently the PIP2, in 2005-07, refined the concept of the SRN and developed
a strategy and proposals for its progressive expansion from an initial designated

network of around 5,000km in 2005, to a ‘de-facto’ network of 7,400km in 20076 and

to networks of around 8,700km by 2011 and almost 10,000km by 2016. [The ToR
for PIP2 tentatively suggested that the SRN be expanded to 7,500km by 2016: this
was considered (at the time) to be the limit of a realistic expansion over 10 years –
given the network size and the capacity and capability of the DoR to manage and
maintain the network.]
Expansion of the SRN was undertaken (in PIP2) by examining a potential ‘long list’
of future links that satisfied the basic criteria to be part of the strategic network. This
was defined as those roads which served traffic of a “national, regional or inter-
district” nature. Roads that only served local movements were excluded. It was
stressed that the test of the ‘strategic nature’ of a road was independent of any
other tests of feasibility or economic viability.
The following criteria were adopted to define eligibility for inclusion in the SRN:
Links to District Headquarters – not necessarily the first or only link;

Links to major Border Crossings – with potential for cross-border trade;
Links between existing strategic roads – improved connectivity;
Inter-District links, especially between DHQs – improved or alternate links;
Links or access to rural airfields – to stimulate domestic aviation; or
Links to industrial, commercial or tourist sites – including mineral extraction.
A total of 170 potential new schemes, totalling almost 8,800km were identified,
comprising 18 committed schemes, 89 existing local or District Roads, and 63
potential new alignments. All possible sources for new links were investigated and
widespread consultation held within the Department. These schemes were then
subjected to a multi-criteria analysis designed to test the strategic nature and
significance of the link, including:
strategic connectivity (network effects) – including Mid-Hills Corridor;

population density served – more people = more benefits;
improvements to accessibility – reduce population > 2/4 hours from road;
connections to District HQs – either a first or subsequent link;
links to border crossings – including potential as transit route;
potential tourism or pilgrimage functions;
areas of economic activity (mineral extraction, hydro-power, airfield, etc);
estimated traffic volume – including diverted traffic;
terrain difficulty & altitude (length of grades, maximum altitude); and
human poverty index of areas traversed – pro-poor bias.
The highest ranked 100 schemes, with a total length of 5,000km, were then taken
forward as candidate roads for inclusion in the extended SRN, resulting in a 2011
network of 8,700km of road, including all the then current commitments, and a 2016
‘extended’ network of 9,900km.
The key elements of expanded SRN as proposed by PIP2 in 2007 were:
Completion of all-weather links to ALL District HQs;

Upgrading of unsealed roads in Terai (including the Postal Road) and main
links into the hills prioritised on the basis of traffic demand;
6
This ‘de-facto’ network included roads that had been constructed and were being maintained by DoR as if they
were part of the SRN

16 committed schemes funded by international donors involving upgrading or

new construction of 2,400km of road: these are either complete or
substantially complete, with the exception of the 1500km Indian-funded
Terai Roads project;
14 upgrading schemes totalling over 700km which were the highest priority
among the non-committed schemes, providing sealed road access to nine
District HQs: 9 are now complete, with work on-going on the remainder;
5 new sections of earth standard Feeder Road (total 366km) with upgrading
subject to feasibility study: four are open, with sections being upgraded;
4 new Earth Tracks accessing remote District HQs (385km): two are open
and two are under construction;
upgrading of 11 Local Roads to SRN standards (636km), based on strategic
significance: work on-going on 9, including sections of Mid-Hills Corridor;
detailed feasibility study of a new route linking Kathmandu and the Terai: the
GoN has pursued the Fast Track option with the Nepal Army responsible for
preliminary ‘track opening’; the alternative ‘Hetauda Tunnel’ option is being
promoted by a private company7; both schemes are currently seeking the
necessary finance; and
other strategic improvements, including upgrading the Kathmandu Ring Road
and Kathmandu-Bhaktapur, and consideration of an alternative route to the
Koshi Barrage: these schemes are either complete or in hand.
Overall it is evident that the PIP2 proposals have been (or are being) implemented,
together with a significant number of ‘off-plan’ projects. The analysis of the current
year’s budget (see Chapter 4) suggests that up to a third of the total budget may be
spent on projects not included in the PIP2. These non-PIP2 projects include Urban
Roads (including the Kathmandu Road Widening Project), numerous projects under
various headings on the Local Road Network (including bridges), and a number of
non-prioritised improvements and extension to the SRN.
6.4 Completed & On-Going Projects

A number of major donor funded projects have been implemented across the SRN
over the past seven years: these have mostly taken schemes proposed in the PIP2.
The donors have included the World Bank, the Asian Development Bank, JICA and
the Governments of India and China.
6.4.1 World Bank

The World Bank funded projects include:
Road Maintenance Development Project (RMDP) (closed in 2006/07);

Road Sector Development Project (RSDP) US$43m + US$75m (AF):
• Upgrading of 6 Feeder Roads in Mid & Far-West (700km) linking to 7
District HQs: Satbanj-Jhulaghat; Satbanj-Darchula; Khodpe-Bhajang;
Sitalpati-Musikot; Chhinchu-Jajarkot; Surkhet-Jumla (mostly complete);
• 4 annual tranches of Periodic Maintenance (resealing) totalling 2,088km
of National Highway & Feeder Road (complete)
Bridges Improvement & Maintenance Programme (BIMP) US$60m
Nepal-India Regional Trade & Transport Project (NIRTTP) (on-going):
• Upgrading Narayanghat-Mugling to Asian Highway Standards;
• Feasibility of upgrading & safety improvements to Mugling-Naubise
7
Nepal Purwardhar Bikash Company Limited (NPBCL)

The World Bank has continued its previous involvements in the Roads Sector, with
the upgrading of Hill Feeder Roads accessing District HQs in the Mid & Far West,
and support for the annual periodic maintenance programme. It has also provided
support for bridges on the SRN. In future the WB would appear to be reducing their
involvement in periodic maintenance activities and the upgrading of Feeder Roads,
whilst focussing their attention on the strategic access requirements of Kathmandu.
6.4.2 Asian Development Bank

The Asian Development Bank funded projects include:
Road Network Development Project (RNDP) (closed 2007);

Sub-Regional Transport Facilitation Project (STFP) US$20m (closed 2010):
• Construct new access road to Birgunj ICD (11km); improve link from
EWH to Bhairawa Border from gravel to 2 lane BT (29km); construct ICD
at Kakarbitta (complete);
Road Connectivity Sector I Project (RSCP I) US$53m (2006-14):
• Upgrading 3 Feeder Roads (240km): Galchi-Syabrubesi; Tamakoshi-
Khurkot; Phidim-Taplejung (complete);
• Reconstruct and upgrade to 2-lane sealed standards of 25km of National
Highway, Dhalkebar-Janakpur (nearing completion);
• SunKosi Bridge at Khurkot (under construction)
Sub-Regional Transport Enhancement Project (STEP) US$40m (2010-16):
• Upgrading 3 Feeder Roads (140km): Harkapur-Okhuldhunga-Salleri &
Chainpur-Khandbari;
• Rehabilitation of 48km of EWH, 4-laning EWH-Indian Border (Nepalgunj),
Feeder Rd rehabilitation Bhairawa-Taulihawa (23km)
Transport Project Preparatory Facility (TPPF) US$12m (2010-20):
• Feasibility Study & detailed engineering design for 900km of high priority
road sections in two phases – mostly upgrading from earth/gravel to BT
surface and most (but not all) part of the PIP2 proposed SRN8
• Phase 1 includes detailed design of a 61km diversion of the EWH to
avoid the Koshi Barrage; upgrading of 4 Hill Feeder Roads in the East
(140km) & 2 Terai Feeder Roads (46km)9
Emergency Flood Damage Rehab Project (EFDRP) US$26m (2009-14):
• Re-gravelling of 38km of Feeder Road in Far West; Bridge Protection
Works; Landslide Stabilisation
• Construction of Koshi Bridge at Chatara (on EWH Diversion) (on-going)
SASEC10 Road Connectivity Project (SRCP) US$75m (ADB) (2014-19)
• Upgrading/New Construction of 61km of 2-lane (Asian Highway) diversion
of EWH to connect to Koshi Bridge at Chatara (as an alternate route to
the Koshi Barrage)
• Upgrading to 6.5m BT of 100km of earth track forming part of proposed
Mid-Hills Highway in East (Leguwa-Bhojpur & Diktel-Halesi);
8
NB: Includes Feasibility Study of Thankot Kulekani Tunnel (part of Hetauda Tunnel route) and Malekhu Lohtar Tunnel
9
Except for 1 Hill & 1 Terai Feeder Road, these projects are taken forward in the SRCP project – see below
10
SASEC = South Asia Sub Regional Economic Coordination

• Upgrading of 13km Feeder Road to Indian Border to dual lane sealed

standards (Birtamod-Chandragadhi-Mechipul) & 13km to single lane BT
(access to Ramechhap)
It is evident that the ADB have continued a strong presence in the Roads Sector,
with an on-going series of road improvement projects focussing specifically on
connectivity issues (including north-south routes and cross-border issues). The
recent TPPF has set out a long-term continuing involvement for ADB, with a
substantial programme of construction or upgrading of many of the ‘new’ Feeder
Roads recently inducted into the expanded (Cabinet Approved) SRN of 14,800km.
6.4.3 Government of India

The Government of India (GoI) have funded, through the EXIM Bank (India), two
phases of the Road Improvement Project (RIP 1 & RIP 2), as well as an on-going
involvement with the improvement of the Postal Roads and other Terai Roads.
Road Improvement Project Phase 1 (RIP 1) US$50m (complete);

• Upgrading 13 Feeder Roads (530km) in all Regions; mostly to BT
standards; Sanfe-Martadi; Sanfe-Mangalsen; Surkhet-Dailekh;Tulsipur-
Salyan; Bhaluwang-Pyuthan; Chakchake-Liwang; Ameliya-Tulsipur;
Chandranigahpur-Gaur; Hilepani-Diktel; Basantapur-Myanglung;
Maldhunga-Beni; & Rajbiraj-Rupani
Road Improvement Project Phase 2 (RIP 2) US$140m (contracts awarded);
• Upgrade to BT of 6 Feeder roads (290km); Shahid Marg; Lumbini Circuit
Rd; Sanfe-Martadi; Bardhaghat-Triveni; Chahare-Bidur; Janakpur Circuit
Rd;
• Widen & Upgrade 5 existing BT Feeder Roads (240km): Lamosangu-
Tamakoshi; Balaju-Trishuli; Balkhu-Dakshinkali; Bhaktapur-Nagarkot;
Bharatpur-Meghauli;
Postal Roads and other Terai Roads (Phase 1) US$124m (committed):
• Upgrade 17 Feeder Roads to 7.5m formation with 3.75m DBST in 11
Terai Districts (490km);
• Upgrade 2 sections of Postal Road to 7.5m formation with 3.75m DBST in
Kailali & Parsa (114km);
Postal Roads and other Terai Roads (Phase 2) proposed:
• Upgrade 14 Feeder Roads (320km) to 5.5m DBST in 11 Terai Districts;
• Upgrade 13 sections of Postal Road (571km) to 7.0m DBST in 18 Terai
Districts;
• An additional 52 bridges have been requested by GoN
The GoI have traditionally been a major contributor to the development of the road
network in Nepal – initially with the construction of access roads to Kathmandu and
Pokhara and significant sections of the East West Highway. Subsequently they
have been involved with the development of the road network in the Terai and more
recently, through the EXIM Bank, with a programme of upgrading of substantial
lengths of Feeder Roads in the Hills: this latter programme is likely to continue
through much of the proposed plan period to 2021.
6.4.4 Other Donors

The Japan International Cooperation Agency (JICA) has continued its involvement
in the Roads Sector with on-going construction of the Dhulikhel-Sindhuli-Bardibas

Road which, when complete, will provide an alternative route from Kathmandu to
the Eastern Terai, as well as a key element in the Mid-Hills Corridor. It is expected
that the link will be completed within the next couple of years: progress is generally
determined by the availability of grant funding from Japan.
During the past seven years, JICA have also funded the widening and improvement
of the Kathmandu-Bhaktapur Road (as recommended in PIP2): it is anticipated that
JICA will continue this involvement (from Bhaktapur to Dhulikhel) in the coming
years.
The Government of China (GoC) is funding the construction of a 16km link between
the existing SRN at Syabrubesi to Rasuwagadi on the Chinese Border. It is
proposed that a major border crossing will be established at this site: access routes
from the Chinese side are already developed and space is available (on both sides
of the border) to construct the necessary customs and immigration facilities.
The Chinese Government have commenced work on the initial phases of the
widening of the Kathmandu Ring Road (originally built by the Chinese in the early
1980s) in three phases over the coming years. The road will be widened to dual 2-
lanes, with service roads (or frontage roads) on each side. Improvements will also
be required at all key junctions.
The UK Department for International Development (DFID) have focussed in recent

years on support to the local road network through various phases of the on-going
Rural Access Programme (RAP). Earlier phases have involved limited work on the
SRN, including the construction of two bridges in Eastern Nepal and upgrading of
the Feeder Road to Terhathum. Sections of initial access roads constructed under
RAP have subsequently been incorporated into the SRN and also form sections of
the Mid-Hills Highway.
6.4.5 Government of Nepal

In addition to Government contributions to the above externally funded Donor
Projects, the GoN is funding directly the following projects through the Asset
Management, Contract Management and Quality Control Project (ACQMP): Annual
Budget (2013/14) US$18m (Rs 1.81 billion).
Three North-South Corridors (see also below)

• Karnali: Kalikot-Jumla-Humla & Hilsa-Simikot
• Kali Gandaki: (sections south of Kusma)
• Koshi: Basantapur-Kimathanka (China Border)
Other North-South Roads:
• Tamakoshi-Lamabagar-China Border
• Jiri-Saleri-Tingri (Tibet)
• Taplejung-Olangchungola (Border)
• Mulghat-Majhitar-Dobhan
• Nykache-Lagna-Tibet Border (Mugu)
• Nalyng Bhanyjang-ChheKampa-Chumchet-Sirdibas
• Bagoda-India Border (Banke)
• Nijhgardh-Patawra-Bankul-Gaur
• Sarlahi-Rautahat
• Limilapcha-Simikot (Humla)

• Seti Lokmarg (Doti & Kanchanpur)

• Chainpur-Taklakot (Bajhang)
Trade Route Development Project US$9.4m (2013/14 only):
• Improvement and Widening to six-lanes of three major access routes to
Indian Border: Rani-Biratnagar-Itahari-Dharan (30km); Birgunj-Pathlaiya
(27km) & Belhiya-Bhairawa-Butwal (24km);
Many of the individual projects were not identified in the PIP2 Study but form part of
the extended SRN as identified in 2013. Construction or upgrading of these routes
should be based on the overall network priorities established.
Other GoN national level initiatives include:
Mid-Hills Highway: The GoN has established a programme to develop a second

East-West connection through the Mid-Hills, to link from the Indian Border (Sikkim)
at Chiyobhanjyang (Panchthar) in the east to the Indian Border (Uttarakhand) at
Jhulalghat (Baitadi) in the west. The route has a total length of around 1,700km and
comprises a mix of paved National Highways, existing gravel or earth roads (mostly
parts of the SRN) and sections of new construction. The concept was endorsed in
PIP2, although the exact alignment selected differs in the Mid-West.
The Mid-Hills Highway should not be considered (or constructed) throughout as a

major traffic artery – rather it is a strategic alternative link between the hill regions,
providing additional connectivity within the relatively densely populated hill areas.
Some sections exist as major traffic corridors – for example Kathmandu-Pokhara
and Kathmandu-Dhulikhel – but other sections will serve primarily local traffic and
can be constructed to significantly lower standards. Track opening is virtually
complete for the whole route and sections are proposed for upgrading to sealed
surface under various donor programmes described above.
The strategic significance of an alternative east-west link became evident during the
10-year insurgency, when the closure of a single link could cut-off large sections of
the country.
North-South Corridors: The Government has a programme for the development of

three north-south corridors (see ACQMP above) linking the Indian border to China
and broadly following the alignment of three major rivers: Karnali, Kali Gandaki &
Koshi. Sections of these routes either exist or were proposed for inclusion in the
PIP2 SRN.
Specifically the previous PIP proposed that the development of cross-border traffic
and trade with China should be focussed initially on two locations only (Kodari and
Rasuwaghadi), with smaller secondary (local) crossings only at other locations: thus
it may not be appropriate (at least in the short-term) to develop major approach
routes to the border along the Karnali or Koshi corridors. Access along the upper
reaches of the Kali Gandaki (and to the border) through Mustang has already been
achieved – opening the traditional trade route between India and Tibet to motorised
traffic. It is however not necessarily practical or desirable to follow the lower
reaches of the river and neither is the route suitable for heavy traffic.
Any sections of these routes which form part of the SRN should be upgraded in
accordance with overall priorities established.

Fast Track: The GoN is pursuing the construction of a Fast Track to link Kathmandu
with the Terai and the Indian Border. Construction of such a link, which could
potentially reduce the travel time to the border from at least 8 hours to 2 hours, has
been under consideration for at least 20 years. Many options have been suggested
and examined, including upgrading of local roads, direct (tunnel) routes to Hetauda
and longer routes following the Bagmati Valley south to join the East-West Highway
east of Pathlaiya. The two previous PIPs (1997 and 2007) both recommended that
alternatives for a high standard route be investigated: the link was shown to be both
economically and financially viable, given the forecast traffic volumes and the high
percentages of commercial traffic.
Following preliminary studies – and concerns over the viability and safety of tunnel
options – the Government decided to proceed with the option following the Bagmati
Valley and connecting with the East-West Highway at Nijhgardh, close to the site of
the proposed Second International Airport11 and 23km east of Pathlaiya. In 2008 the
Nepal Army was tasked with opening a 76km long track on this alignment: limited
sections of this track have been opened and some land acquisition undertaken.
Three Indian business consortia were invited to bid for the design, construction and
operation of a multi-lane expressway on the alignment but all subsequently (2013)
withdrew.
The Government is presently exploring alternative funding and operation modalities.
As described elsewhere, alternative (tunnel) alignments linking Kathmandu directly

with Hetauda are being investigated and proposed by a Nepali private sector
consortium. Additionally GoN budgets are also being used to improve and upgrade
existing local roads connecting Kathmandu with Hetauda.
A separate initiative to by-pass the critical section of the existing approach route to
Kathmandu (Naubise-Nagdhunga) with the construction of a short tunnel on a new
alignment linking Dharke on the Prithvi Highway directly to the Kathmandu Valley is
being studied for potential Japanese funding following an earlier ADB feasibility
study.
Roads Joining Two Districts: A separate budget head has been established for the
construction of local roads that link adjoining districts across district borders. These
roads are generally NOT part of the SRN and the logic for the DoR involvement is
based on the fact that these links would not be prioritised or selected through the
DTMP process which focusses on the internal District road network.
These roads could qualify for inclusion in the SRN if they formed part of an inter-
District network linking either the District HQ or between other elements of the SRN.
If not part of the SRN, these roads should not be the responsibility of the DoR.
Regional Level Roads: A similar budget exists for the construction of local roads
within a District designed to redress a ‘regional imbalance’ in the provision of roads.
It is unlikely that any such roads would be strategic in nature and thus not part of
the SRN. They should not be funded by DoR.
Tourist Roads: A separate budget within DoR exists for the construction of roads to
places of tourist interest or pilgrimage. Such roads should generally from part of the
local road network, unless the destination is of national significance.
11
The future of the Fast Track is closely related to the proposed Second International Airport: the feasibility of the airport
requires the construction of the Fast Track to provide a 1 hour link to Kathmandu

6.5 Criteria for Upgrading & Prioritisation

In addition to the expansion of the SRN to 14,902km, it is clear that a significant
volume of upgrading has taken place since 2007 and that a substantial programme
of further work is on-going and in the planning stage. Whilst much of this has been
in accordance with the PIP2, it is also evident that the network expansion and some
of the proposed improvements and upgrading go significantly beyond what was
planned in 2007.
It is therefore appropriate to review the current plans and proposals and to update
the recommendations and prioritisations presented in PIP2 in the light of current
circumstances. The main upgrading and improvement projects completed since
2007 or presently in-hand are all broadly in line with the PIP2 proposals.
Additionally, the DoR has identified a preliminary programme of further upgrading or

improvement for inclusion in subsequent ADB, GoI and GoN projects. Many of
these projects were not included in the PIP2 recommendations and all should be
the subject of detailed feasibility and design studies.
6.5.1 Review of Extent of SRN

The PIP2 identified and proposed extensions to the SRN to create a total network,
by 2016, of almost 10,000km. All the elements in this network met the six basic
criteria for inclusion in the SRN – links to District HQs; links to major border
crossings; links between existing strategic roads; inter-District links; access to rural
airfields; or links to major commercial or industrial activities – and were selected
and prioritised on the basis of a multi-criteria evaluation.
The GoN has subsequently decided to expand the SRN beyond this level through
the inclusion of additional links. This increase in the overall network does NOT
however invalidate the previous evaluation or assessment of the strategic nature (or
otherwise) of individual links. It is therefore proposed to accommodate the overall
increase in length by the re-classification of network and the introduction of new
categories of National Highway and Feeder Road.
Two classes of National Highway are proposed:
NH Class 1: The ‘core’ network of highways, comprising the East-West

Highway, main links into the Hills to Kathmandu and Pokhara (incl Fast
Track) and access routes to the 8 main border crossings; approximately
1,760Km (1665Km Existing + 95 Km Planned) in length and constructed to
Asian Highway Standards;
NH Class 2: Secondary Highways, comprising the links into the Hills serving
two or more District HQs, the Mid-Hills Corridor, the Postal Road and access
to minor border crossings; approximate length 3,797km; to be constructed to
sealed 2-lane or intermediate lane standards.
Similarly two classes of Feeder Road are proposed:
FR Class 1: Strategic Feeder Roads, comprising all remaining 51 FRs in

initial 1995 network, access roads to remaining District HQs and local border
crossings, and all roads included in PIP2 proposed SRN; approximately
4,991km in length and to be upgraded to single-lane sealed standards,
subject to detailed feasibility study;

FR Class 2: Secondary Feeder Roads; all other roads identified in the 2014
extended SRN; approximate length 4,016km; construction and upgrading to
be subject to detailed feasibility study.
The resultant network is illustrated in Figure 6.3.
Class 1 National Highways should be maintained to the highest standards to ensure

efficient operation throughout the year: generally asphaltic concrete surfacing would
be appropriate as the savings in vehicle operating costs from the higher traffic
volumes will justify the higher initial capital costs. The Class 1 network should be
progressively upgraded to Asian Highway Standards, with particular emphasis on
the provision of safety features, including safety barriers, signage, improved road
markings and overtaking lanes (where these can be safely provided).
Class 2 Highways should be similarly built and maintained to standards appropriate

for their function – traffic volume, strategic role and geographic location. High traffic
sections should be provided with an asphaltic concrete surface, whilst DBST (or
similar) will be generally appropriate elsewhere. Progressive widening to 2-lane
standards may be appropriate for the more heavily trafficked sections. All Highways
shall have a sealed surface.
Class 1 Feeder Roads will be generally constructed to sealed standards, with the
justification for upgrading based on threshold traffic levels and feasibility study.
These roads have been identified and selected based on a detailed analysis of their
strategic function.
Class 2 Feeder Roads comprise mostly those ‘additional’ roads included in the
2013/14 SRN that were NOT identified or prioritised in the PIP2 SRN proposals.
These roads should therefore all be subject to detailed feasibility study, prior to any
further investment or upgrading. This analysis should include an evaluation of the
strategic importance of the road and its potential function within the ‘national’
network.
These additional roads fall broadly into two categories: (a) potentially strategic – but
remote – sections of the network that were previously excluded due to a lack of
demand (now or within the plan period); and (b) roads considered to be primarily of
a local nature and without any true (national) strategic function.
It is suggested that the inclusion of these additional roads (around 5,000km) in the
designated SRN should be reviewed (to determine their strategic function) and that
the initiation of any improvement (or maintenance) work should be dependent on
the outcome of the review.
All other roads which do not have a national strategic function should remain part of
the Local Road Network, under the responsibility and jurisdiction of the relevant
DDC.

6.5.2 Review of Feeder Road Construction Policy

The present road construction policy relating to Feeder Roads is contained in the
DoR “Classification and Design Standards for Feeder Roads”, Second Revision,
February 1994. This document argues that Feeder Road construction should be
undertaken in an economical and technically acceptable manner, bearing in mind
the acute budget constraints of the time and the need to construct road access to
the almost 20 District Headquarters that were not connected by road. The
document proposed a five stage process:
I. Detailed Design and Project Formulation

II. Fair weather Earth Track
III. Fair weather Gravel Track
IV. All weather Gravel Track
V. All weather Bitumen Road
The document stressed the fact that construction should not commence until Stage
I was complete: ie the detailed design should be finalised and adequate resources
committed for construction and maintenance. Subsequent upgrading would be
based on various traffic thresholds based on a simplified HDM analysis. [This latter
exercise has been updated under this project – see section 5.4.]
The situation today is different. Almost all the District HQs are connected by road
and the current policy requires that this access should be by all-weather sealed
road. In addition a substantial length of low-standard local District and Village level
roads have been constructed throughout the country providing a basic level of
access to a large proportion of the 9,000+ VDCs across the country. The upgrading
of these local earth roads is the responsibility of the respective District and Village
Development Committees (DDCs & VDCs).
The Feeder Road network is itself substantially larger than it was 20 years ago.
Then there were 51 designated Feeder Roads, with a total length of 1900km. Each
had a specific purpose or objective: eg to connect to a District HQ, major border
crossings, industrial or hydro-power sites, tourist sites or else links between
National Highways with traffic volumes in excess of 100 vpd. Today there are a total
of 198 operational Feeder Roads with a total length of 6,600km, with a further 9
under planning.
Most of the ‘additional’ length of Feeder Road results from the re-designation of
existing ‘local’ roads or tracks that have been initially constructed though local
efforts of either the DDC/VDC, local communities or the Nepal Army. Many of these
roads follow non-engineered alignments and were constructed by excavator,
without due consideration for drainage, water management or slope stability. This
situation poses a very different series of issues to that of the staged construction
proposed in 1994.
The challenge for the DoR today is the upgrading – on a prioritised basis – of this
additional length of Feeder Road and to bring the whole of the extended SRN up to
a ‘maintainable’ standard. The threshold analysis (see 4.3.6 above) remains valid
so as to ensure that the available resources are used in the most effective and
economical manner.
Expectations from the SRN have also changed substantially over the past 20 years.
No longer are large sections of the country satisfied with intermittent access on a

poorly maintained earth road. There is a desire for all-weather access by motor-
bike, jeep and minibus, in relative comfort via a sealed road. Issues of social equity
require that District Centres and other major centres have reliable access for health,
security and educational purposes. Truck operators expect to be able to operate
large vehicles on the main road network so as to satisfy the increasing demands for
food and imported goods at an acceptable price.
The DoR needs to take stock of the extent and condition of the current SRN that it
is entrusted to maintain. New construction should take a relatively small share of
the overall budget availability and similarly upgrading (although necessary for a
large portion of the FR network) should be carefully assessed in terms of demand.
6.6 Screening & Ranking of Projects

Based on the revised Highway & Feeder Road classifications, a prioritised listing of
improvement and upgrading proposals should be developed based on the multi-
criteria screening procedures developed during PIP2. This should be extended to
include the potential upgrading of Class 1 National Highways to Asian Highway
Standards: all potential improvements or upgrading should subsequently be subject
to detailed feasibility study to determine the viability.
6.7 New Construction

Only limited sections of new construction are anticipated: alignments have been
determined for access to all District HQs and most potential options for other new
routes have been investigated or are included in the expanded SRN.
The major exception to this will be the inclusion of the Fast Track access between
Kathmandu and the Terai. A decision on the preferred solution and the associated
funding mechanism is required as a matter of priority.
6.8 Responsibilities for Strategic & Local Roads

A final definitive decision on the demarcation of responsibilities for the Strategic and
Local Road Networks is urgently required and should be implemented effectively.
This will involve a clear definition of the SRN and the devolution of responsibility
and budgets for ALL non-strategic roads and bridges to the appropriate local
administration, either District or Municipality.

Table 7.1 : Improvement in Accessibility (Analysis from 2007 PIP)
Approx Population & Percentage Served

Network Hill Terai
Length (km) Total
within 4 hrs Within 2hrs
2006 Designated SRN 5.68 11.07 16.74
5,030
50% 76% 65%
2007 Operational SRN 6.52 13.70 20.22
7,360
58% 94% 78%
Extended SRN 7.94 14.21 22.15
10,000
70% 97% 86%
Extended SRN plus LRN 9.09 14.51 23.61
15,000
81% 99% 91%
Source: PIP2 (2007); DHV Consultants
This PIP2 analysis also illustrated that a further expansion of the overall road
network to almost 15,000km would increase the accessibility to 91% - virtually all
the Terai population would be within 2 hours walk of a road and over 80% of the Hill
population would be within 4 hours.
The above analysis was based on the standard measures of accessibility defined
(in Government policy) as being within 2 hours of an all-weather road in the Terai
and within 4 hours in hill and mountain areas. The PIP2 additionally used an
alternative indicator of accessibility based on an assessment of the overall walk-
time to reach an all-weather road (measured person-hrs) – or the average walk-time
(measured in hours) – of any given network. These criteria provide a more reliable
indicator of the overall ‘efficiency’ of the network, as they take into account the
numbers of people effected by the road and acknowledge that very real and
significant benefits are available by reducing the access time to a road from, say, 2
hours to 20 minutes.
In the 2007 analysis, it was estimated that 40% of the overall population lived within
1 hour of the designated SRN (5,030km) and that this was forecast to increase to
60% with the extended SRN of 10,000km. Similarly the percentage living more than
8 hours from the SRN would reduce from 13% to 4%. Nationally, the overall walk-
time to access the SRN was forecast to reduce by an average of 2 hours, from 3
hours 22 minutes to 1 hour 18 minutes.
It should be noted that the above analysis and computations only became possible
through the development of the accessibility model in the 2007 PIP. These
calculations have now been revised based on the 2011 population census data and
the current (2013) network data.

7.3 Current (2013) Analysis

7.3.1 Accessibility using Time-Band Criteria
The revised accessibility analysis is based on the population data available from the
2011 census. This indicates a total population of 26.25 million – with 15.49 million in
the Terai and 10.76 million in the Hills: As noted above, this total is only marginally
higher than the 2006 population used in the previous analysis, due to an over-
estimate of the earlier figure. The current population distribution is shown in Figure
7.3 which illustrates the concentrations of population around the main urban centres
and higher densities throughout the Terai. Substantial areas of moderate density
can be seen in the Mid-Hill areas, with minimal population in much of the higher
mountain regions.
The accessibility afforded by the 2013 operational and under construction SRN of
12,809 Km is illustrated in Figure 7.4. Over 90% of the population are within the 2/4
hour accessibility criteria, with 77% of the Hill population within 4 hours and 97% of
the Terai within 2 hours. Overall two-thirds of the population (17.2 million) are within
1 hour of the SRN and less than 9% are more than 4 hours away.
This conclusion is broadly compatible with the findings from the PIP2 Study in 2007
for the 10,000km and 15,000km networks.
The additional inclusion of the existing Local Road Network (32,000km) raises the
total population served to 99% (based on the 2hr/4hr criteria) – with less than
250,000 people in the remote northern mountain areas more than 4 hours from a
road. Overall 99% of the Terai population and 77% of the Hill population is within an
hour of a road.

7.3.2 Assessment of Total & Average Walk Time

An alternative measure of the level of accessibility provided by any network is given
by calculating the total ‘access time’ to the nearest road for all inhabited areas. This
is expressed in thousands of person-hours, representing the product of the number
of people and their time (in hours) to reach the road. Thus 10 people 1 hour from a
road would have the same impact as 1 person 10 hours from the road: this measure
thus compensates for the relative density of the areas served by any road..
The populations in progressive time-bands from the nearest road are given in Table
7.2 for the current operational SRN and for the SRN plus LRN, together with the
2007 SRN (7,500km) for comparison. This indicates that the population within 1
hour of the SRN increases from 53 percent in 2007 to 66 percent in the 2013
Operational Network and, as a consequence, the proportion over 4 hours reduces
from 20 percent to 9 percent.
Table 7.2 : Population within Time-Bands of nearest road (millions)
Time Population and Percentage in given Time Bands

Band 2013 Operational SRN
Hours 2007 SRN (7,500km) 2013 SRN + LRN
(12,809km)
<1 13.78 53% 17.98 69% 23.80 91%
<2 3.89 15% 3.52 14% 1.68 6%
<3 - - 1.67 6% 0.40 2%
<4 3.03 12% 1.09 4% 0.13 0%
over 4hrs 5.10 20% 1.89 7% 0.24 1%
Total 25.80 100% 26.25 100% 26.25 100%
The inclusion of the LRN increases the percentage within 1 hour of a road to 91% of
the population, with only 1% more than 4 hours from a road.
It is probably unrealistic – and undesirable – to attempt to achieve a 100 percent

coverage of 4 hour accessibility in the hills. There will always be some remote areas
unserved by road as it would be totally uneconomic and environmentally disastrous
to construct roads into these areas for the minimal populations involved.
It can be shown that the average walk-time to access the road network in 2007 was
almost 2 hours and that this reduces to 1 hour 20 minutes for the Strategic Network
in 2013 and to 40 minutes if the local road network is also included.
7.4 Conclusions
It is evident that the expansion of the Strategic Road Network to its current
(operational & under construction) length of 12,809 km has achieved the primary
goal of improving the overall levels of accessibility throughout the country, as set
out in the previous PIP. The role of the SRN is to provide connectivity throughout
the country and to enable improved levels of accessibility to be achieved locally
through the development and expansion of the local road networks.
Further expansion of the SRN – with the exception of links to the currently un-
served District HQs – will not improve overall levels of accessibility significantly. Any

further Improvements to accessibility will depend on the expansion – and more

critically the upgrading – of the Local Road Network to provide all-weather access in
the hill areas. Analysis of the existing accessibility data on a District basis would
allow such interventions to be prioritised effectively.

8. Revised PIP for 2014-2021

8.1 Overall Strategy
The 2007 PIP2 proposed a 10-year investment strategy for the Strategic Road
Network for period to 2016. This comprised three main elements:
Firstly, a definition of likely Maintenance requirements;

Secondly, the Upgrading of existing and potential SRN elements (incl some local
roads); and
Thirdly, the Construction of new (strategic) links – for both rural access and
network strengthening
Aside from the maintenance obligations, the PIP2 proposed a significant expansion
of the SRN to around 10,000km, primarily through the incorporation of key elements
of the local road network. The upgrading of existing earth or gravel roads to all-
weather sealed standards was also proposed in both the Terai and hills, in order to
provide an improved level of accessibility and to promote economic activity and
growth.
New strategic routes were also proposed, including a high-capacity high-speed link
between Kathmandu and the Terai, improved links to and between Hill Districts, and
the completion of the previously proposed access routes to non-road-connected
District Headquarters.
Most of what was proposed in the PIP2 has been implemented.
8.2 Revised PIP (2014-2021)

Preparation of the Priority Investment Plan (2014-21) requires the adoption of an
overall strategy and policy for the development of the SRN. This will determine the
extent of the future network and thus the associated maintenance, upgrading and
new construction requirements and obligations.
Furthermore, it is necessary to determine the maintenance regime and strategy so

that the associated costs may be assessed. It is proposed that the existing method
of identifying and prioritising the regular and periodic maintenance programme
(using the ARMP) is expanded to include rehabilitation and/or reconstruction by
using indicators based on traffic levels, pavement age, IRI, SDI and strategic
function.
Consideration of the maintenance, upgrading and new construction requirements –

together with estimates of funding availability – allows a ‘balanced’ budget to be
determined.
It is anticipated that the budget forecasts and distributions of expenditure will follow
a similar pattern to the PIP2 allocations between maintenance, upgrading and new
construction, including consideration of strategically important new access routes to
Kathmandu from the Terai. This latter (Fast Track) proposal was included in the
PIP2 and is potentially the single most important investment on the transport sector
in Nepal.

This review of the 2007 PIP has concluded that the Strategic Road Network (SRN)
has been expanded significantly in excess of its planned growth and that most of
the additional roads are of low standard earth construction and that many are of
local – rather than strategic – significance. The expansion of the SRN has been
achieved by the re-designation of existing local roads and earth tracks and by the
inclusion of additional links in areas of relatively low population density that were
not previously prioritised.
As a result there is now a substantial potential demand for the upgrading of the
newly designated strategic roads and the risk that funds will be diverted from the
primary task of maintaining the essential core elements of the national network. A
critical function of this PIP is thus to prioritise the maintenance and construction of
those key elements of the Strategic Network and to ensure that funding is available
for these activities – ahead of other upgrading activities on less important roads.
Extent of Network
The current (2013/14) Strategic Road Network comprises approximately 14,902km
of roads, including planned and under-construction sections. Approximately 43% of
the total length (6,369km) is black-topped, 12% (1,735km) has a gravel surface and
29% (4,389km) is simple earth construction, mostly with no provision of drainage
structures. The remaining 16% is either planned (2,093km) or under construction
(315km).
Under the present classification, approximately 5,570km (37%) are designated as

National Highways (including the Mid-Hills Highway and Postal Road) and the
remaining 9,330km (63%) as Feeder Roads. Of the National Highways, 60% is
blacktopped and the remaining 40% is accounted for mostly by the incomplete
sections of the Mid-Hills Highway and the Postal Road. Only 33% of the Feeder
Roads are blacktopped, 13% are gravel and 33% are earth: the remaining 22% are
under-construction or planned.
The lengths of road in each category under the proposed revised classification are
presented in Table 8.1. In total there are 5,540km of National Highway, 9,010km of
Feeder Road (divided between Class 1 and Class 2) and 350km of DoR roads
within the Kathmandu Valley and environs. With the exception of planned new
roads, all the Class 1 National Highways are blacktopped, together with 50% of the
Class 2 National Highways. Similarly, half of the Class 1 Feeder Roads are
blacktopped, together with almost 60% of the roads in the Kathmandu Valley area.
Of the designated Class 2 Feeder Roads, only 8% is blacktopped with the majority
either earth or gravel: around a third of the designated network of Class 2 Feeder
Roads are ‘planned’.

Table 8.1 : Road Lengths by Class (Proposed Classification)
Road Black Under

Classification Top Gravel Earth Constr’n Planned Total
1,649 16 95 1,760
Class 1 94% 1% 0% 0% 5% 100%
National 1,840 529 1,143 78 197 3,787

Highway Class 2 49% 14% 30% 2% 5% 100%
2,330 641 1,583 162 275 4,991

Class 1 47% 13% 32% 3% 6% 100%
Feeder 349 522 1,632 75 1,437 4,016

Road Class 2 9% 13% 41% 2% 36% 100%
Kathmandu Valley 200 27 32 89 349

Roads 57% 8% 9% 0% 26% 100%
6,369 1,735 4,389 315 2,093 14,902

Total Length (km) 43% 12% 29% 2% 14% 100%
Source: PIP Review Consultants Estimates
This table indicates the scale and extent of the potential requirement for upgrading
and new construction – IF the whole of proposed network is to be brought up to
desirable standards. Approximately 1,700km of Class 2 National Highway will need
to be upgraded to sealed standards, together with about 2,220km of Class 1 Feeder
Road. Additionally, depending on the standards of construction sought, a further
3,700km of Class 2 Feeder Road will require improvement: most is currently either
simple earth construction or else in the planning stage.
Priorities for Improvement
The above table presents an opportunity for developing improvement priorities. It is
suggested that an initial priority be given to the sealing of the 1,700km of gravel and
earth sections of the Class 2 National Highway, followed by the 2,220km of
unsealed Class 1 Feeder Road. Specific priorities should be subject to individual
feasibility studies. These works should be undertaken before consideration is given
to the upgrading (or construction) of the Class 2 Feeder Roads.
A similar priority should be accorded to the upgrading of the more heavily trafficked
sections of the Class 1 National Highways to full 2-lane Asian Highway standards,
with a 7m carriageway, paved shoulders, improved visibility, added safety features
and provision for a third overtaking lane, where feasible, and on lengthy gradients.
A practical and realistic target could be the partial completion of these initial high
priority improvement projects within the 2014-2021 PIP period. Detailed
programming and project selection should depend on the results of feasibility
studies of individual projects but budget allowances can be estimated by allocating
the work across the seven year plan period.

8.3 Maintenance Needs

Regular Annual Maintenance
The first “call” on the budget in any year should be for the continuing and on-going
maintenance obligations, referred to here as Regular Annual Maintenance and
including Routine, Recurrent, Specific and Other Maintenance. The costs of each
are estimated on a per km basis across the whole network.
Routine: including grass cutting, drain clearing, debris removal, signs and
markings, etc;
Recurrent: minor repairs carried out on a cyclical basis, including pot-hole
repairs, patching, edge-break repair, shoulders, etc;
Specific: more substantial works as dictated by road condition – eg gravelling
shoulders, building or repairing retaining walls, etc; and
Other: traffic safety, bio-engineering, emergency maintenance, drainage
rehabilitation, equipment repair and servicing,
The total annual costs of these regular maintenance liabilities over the 7 Year plan
period are summarised in Table 8.2, based on an assumed increase in the length of
the bitumen sealed network from the current 6,400km to 10,800km by 2021/22. This
assumes that all National Highways and Class 1 Feeder Roads are sealed by the
end of the plan period.
Table 8.2 : Regular Annual Maintenance (Rs million)

Rate
Type of
Rs 000 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 Total
Maintenance
/km
Length Maintained (km) 6,369 7,107 7,844 8,582 9,319 10,057 10,794
3,748
Routine 62.4 397 443 489 535 582 628 674
(28%)
4,583
Recurrent 76.3 486 542 599 655 711 767 824
(34%)
4,637
Specific 77.2 492 549 606 662 719 776 833
(35%)
408
Other 6.8 43 48 53 58 63 68 73
(3%)
13,378
Total 1,418 1,583 1,747 1,911 2,075 2,240 2,404
(100%)
Source: Consultants Estimates based on Rates provided by DoR
The annual Regular Maintenance liability increases from Rs 1.4 billion in 2015/16 to
Rs 2.4 billon by 2021/22 (at constant 2014 prices). Funding for these Regular
Annual Maintenance expenditures should unequivocally be available through the
Road Fund, itself funded through a fuel levy, tolls, and vehicle registration and
licence fees.
The growth in the paved network from 6,400km to10,800km by the end of the plan
period implies an average annual increase of 740km per year, comprising 600km of
upgrading and 140km of new construction.
Periodic Maintenance
Periodic maintenance involves the resealing, overlay or rehabilitation of existing
roads on a cyclical or demand responsive basis. The PIP2 assessed the periodic

maintenance requirements of the SRN using HDM-4 to optimise the maintenance

interventions by minimising the overall costs to both the department and road users.
It has not been possible to utilise the HDM model during this review and the
expenditures on periodic maintenance have been estimated by applying agreed
average rates for reseals, overlays and rehabilitation at appropriate intervals,
ranging from 5 to 8 years depending on the class of road, surface type and traffic
level.
The results are summarised in Table 8.3 for the 6,400km of currently sealed road in
the SRN. The analysis is based on agreed rates for reseals (SBST), AC overlays
and rehabilitation: it assumes that AC overlays are applied to 2,500km of National
Highway and SBST reseals to the remaining 1,200km of National Highway and
2,700km of currently sealed Feeder Road. Reseals are assumed at a 4 year interval
and overlays at 6 years. Rehabilitation is assumed after 12 years.
Table 8.3 : Summary of Periodic Maintenance – 2014-2021
Type of Intervention Cost Frequency Annual Cost

Length (km)
Maintenance (Rs mill per km) No of Rs million
Intervention AC Seal NH FR Years NH FR
Reseal n/a 2.38 1,200 2,700 4 714 1,607
Overlay 3.50 n/a 2,500 6 1,458 n/a
Rehabilitation 5.00 3.00 3,700 2,700 12 1,542 675
Total/year 3,714 2,282
The approach and parameters used reflect current DoR practice: the analysis in the
previous PIP demonstrated that lower overall costs (to DoR and road users) – and
an improved network condition – could be achieved through the greater use of
asphalt concrete overlays, on roads with lower traffic levels. It is recommended that
this approach be adopted in the future13.
8.4 Upgrading
Upgrading to Sealed Standards
The above prioritisation has indicated that the upgrading to sealed standards of
approximately 3,500km of presently gravel or earth Highways and Feeder Roads
(Class 1) should be considered in the plan period to 2021. To complete this by 2021
would be an ambitious target, representing around 500km of newly sealed road per
year – or three times the length planned over the ten-year period of PIP2.
The unsealed sections of the National Highway (Class 2) network comprise around
950km of the Mid-Hill Highway in the Eastern and Mid & Far Western Regions, plus
a further 520km of the Postal Road. Priority should be given to the sections of the
Mid-Hills Highway in more densely populated Districts and in the Eastern Region
where inter-District connections are required in the Hills. The sections of the Postal
Road are subject to prioritisation and upgrading under Indian funding.
Upgrading of the unsealed Class 1 Feeder Roads will represent a continuation of

the current programmes of improvement of key routes into the Hills and connecting
with District Headquarters. The target should be the provision of all-weather sealed
13
This change will not however influence the overall budget allocations

road access to all District Headquarters by 2021, with priorities established on the
basis of individual feasibility traffic demand.
The estimated costs of the upgrading programme are presented in Table 8.4, based
on the upgrading to AC surface for the 1,665km of National Highways and to DBST
for the 2,220km of Feeder Road. It is assumed that this work would be completed
over the seven year period to 2021/22.
Table 8.4 : Recommended Upgrading to Sealed Standards

Cost Rs Average
Length Total Cost
million per Cost / year
(km) (Rs billion)
km (Rs bn)
15.00
National Highways 1,665 for AC 25.0 3.6
11.00
Feeder Roads 2,220 for DBST 24.4 3.5
Total 3,885 49.4 7.1
Upgrading to Asian Highway Standards

In addition to the above upgrading to sealed standards, it is recommended that key,
heavily trafficked strategic sections of the Class 1 National Highway network should
be progressively upgraded to full Asian Highway Standards. Initially, the main route
linking Kathmandu with the Indian Border at Birgunj (via Mugling, Narayanghat and
Hetauda) should be widened to provide a consistent 2-lane 7m carriageway, with
paved shoulders and improved safety features.
It is noted that the approach routes to the main border crossings with India have
recently been improved to 4 or 6 lane standards under various ADB Sub-Regional
Development Projects. Subsequent priorities for upgrading to Asian Highway
Standards would likely include the Arniko Highway (Kathmandu to Chinese Border)
and the busier sections of the East West Highway.
8.5 Network Expansion/Extension

As noted elsewhere, there is no fundamental justification for an overall increase in
the length of the Strategic Network. All key destinations within the country are or will
be connected to the SRN in the near future, when current commitments are
completed, and the network density is considered appropriate. Local accessibility
will be enabled by the existing and future District level road networks.
However, around 740km of additions (classified as ‘under construction’ or ‘planned’)

to the network of National Highways and Class 1 Feeder Roads are included in the
currently designated SRN. It is assumed that these additions will be completed
during the plan period, representing around 100km of new road per year.
Network Additions and Strengthening
The analysis above is concerned with the existing sealed network of 6,400km and
the potential upgrading to sealed standards of a further 3,500km of National
Highway and Class 1 Feeder Road. This will create a network of around 10,800km
of mostly sealed roads by 2021.
In addition there are around 5,000km of unsealed roads comprising the remainder
of the presently designated SRN. It is to be expected that these roads will be

progressively upgraded to sealed standards during subsequent plan periods – ie

after 2022.
The 10,800km network of National Highways and Class 1 Feeder roads will form –
and should remain – the primary concern of the DoR and should comprise the
“core” of all future DoR activity and spending. However there are a limited number
of additions to the network that require consideration. These include:
Kathmandu-Terai-Indian Border Fast Track

Kathmandu Outer Ring Road
Koshi River Crossing Diversion to EWH
Remote Area Access
North-South Trade & Transit Routes
Network Strengthening in Central Region
Kathmandu-Terai Fast Track
Improved connections between Kathmandu and the Terai – and the Indian Border –
have been a key component of both the previous PIPs, in 1997 and 2007. The
project is potentially the most significant transport investment in Nepal, reducing the
transit time for buses and trucks between Kathmandu and the Border to around 2
hours from the current levels of 6-8 hours or more, depending on conditions.
There have been many studies and a number of initiatives in recent years, involving
a series of different route and funding options. The most significant of these has
been the GoN proposal to utilise the Nepal Army to open a 76km long track – on an
alignment through the Bagmati River Valley developed in a 2008 design study –
linking the outskirts of Kathmandu, with the East West Highway at Nijgardh (23km
east of Pathlaiya). Following track-opening, the intention was to let a design and
build contract to a private sector developer.
Progress has however been mixed: the track is only partially constructed; it proved
impossible to follow the designed alignment; land acquisition is incomplete; and,
most importantly, no agreements have been reached with potential investors. The
project is under review and it is recommended that more detailed engineering and
financial analyses be conducted before further decisions are made regarding either
the alignment or the construction and funding modalities.
The project is too important for Nepal to fail and it is thus imperative that a viable
alignment is selected and an effective means of implementation (and funding) is
adopted. The road should be constructed to appropriate standards – as a four-lane
divided highway with controlled access – as it will form the primary access to
Kathmandu for the foreseeable future.
The possibility also exists to develop a second International Airport for Kathmandu
at Nijgardh in conjunction with the Fast Track and, combined, the two projects offer
the potential of developing a major urban agglomeration in the Terai which could
stimulate and rejuvenate the national economy and reduce the current pressures on
the Kathmandu Valley.

Kathmandu Outer Ring Road
Proposals for a 72km long Outer Ring Road around the foothills of the Kathmandu
Valley are included in the current SRN. This was originally promoted as a ‘land
pooling’ scheme with land donated for the road as part of urban development
proposals for the area. Construction should be closely coordinated with urban
development activities and It is suggested that the project should be promoted
jointly with the Kathmandu Valley Development Authority.
Koshi River Crossing Diversion to EWH
A new crossing of the Koshi River is under construction at Chatara that will provide
an alternative link to eastern Nepal, potentially replacing the existing EWH route
which crosses the Koshi Barrage. New approach roads from the east and west will
be required to connect to the EWH and these should be constructed to full Asian
Highway Standards.
Remote Area Access
Schemes are in hand to connect all District Headquarters to the SRN, however
these links need to be upgraded to provide all-weather access and some additional
inter-District links are required to ensure adequate connectivity and security of
access.
North-South Trade & Transit Routes
There is significant potential for trade and transit traffic between India and China, in
which Nepal is well placed to participate. Previous studies have investigated
possible routes and have recommended that investment be concentrated initially at
the existing crossing at Kodari (on the Arniko Highway) and at Rasuwagadhi (north
of Kathmandu) where customs and immigration facilities on the Chinese side have
recently been completed and road access is available. Trade volumes across other
more remote crossings on the Chinese border are mostly insignificant (and of a
local nature only).
It is recommended therefore that investment in north-south transit routes be

focussed on upgrading access routes to the main existing crossings at Kodari and
Rasuwagadhi, so as to accommodate increased volumes of containerised traffic.
Routes linking to the major crossings to India at Birgunj and Bhairawa should be
similarly upgraded.
Network Strengthening in Central Region
Economic activity and growth are strongly focussed on the Central Region – and
specifically the Greater Kathmandu Valley Area. As a result traffic volumes are
greatest in this area and further investments to improve, upgrade and strengthen
the road network may be required. Reference has been made above to the Fast
Track and to the Kathmandu Outer Ring Road, and additional investment will be
required to upgrade the Arniko Highway to Banepa and Dhulikhel, to provide a high
capacity spine road serving the expanding communities to the east of Kathmandu.
Similarly, despite the proposed construction of the Fast Track, improvements will be
required to the main approach to Kathmandu from the Prithvi Highway: this could
take the form of a new link (or tunnel option) to replace or supplement the existing
route from Naubise to Thankot.

New Construction
Only limited amounts of new construction, as indicated above, are proposed in the
forthcoming PIP period. Over the past decade considerable lengths of new road
have been built (or planned) both at the District level and as extensions of the SRN
to District HQs. The emphasis is now on the consolidation and upgrading of these
roads to provide reliable and sustainable access.
8.6 Bridges on the Strategic Network

The DoR Bridge Unit is responsible for the construction and maintenance of bridges
on the SRN: a separate budget is provided on an annual basis to cover both
recurrent and development (capital) expenditure. The Bridge Unit maintain their
own inventory of bridges and this forms an adequate basis to establish annual
maintenance requirements, together with a refurbishment or replacement
programme as required.
The Recent (2012) Bridge Inventory Study and Condition Survey identified 1709
bridges in SRN. Around 96 bridges in need of urgent repair works, 172 bridges
needs investigation for rehabilitation and about 443 needs minor repair works.
These works should be programmed and prioritised and an on-going inspection
regime established.
As noted in the Survey, the bridges on the ‘Russian’ section of the East-West
Highway between Pathlaiya and Dhalkebar which are of substandard width (5.5m
between kerbs) and do not allow commercial vehicles to pass – except at a crawl.
Due to the length of some of these bridges, this creates severe difficulties and
dangers to traffic, to pedestrians and to slow-moving vehicles. Given the ever
increasing traffic volumes – and thus conflicts between opposing vehicles – the
situation will deteriorate rapidly and a solution will be required.
For the lower volume hill roads, bridges are generally constructed in conjunction
with upgrading and improvement projects in accordance with the overall design
requirements to achieve an all-weather connection. It is suggested that a set of
guidelines be developed to assist with the selection of the appropriate form of
crossing (ford, culvert, causeway, floodway, submersible bridge, RCC bridge, steel
truss bridge, etc) in conjunction with the forecast dry-weather and flood conditions
and anticipated traffic volumes. It is observed that in some cases bridges on low-
volume roads have been over-designed and permanent structures provided where
simpler causeways might have been appropriate.
The proposed midhill highway requires substantial numbers of bridges and msot of
them are already in construction pahse. Similarly, the proposed (Government of
India funded) programme of improvements to Terai roads will require the provision
of a substantial number of bridges (or causeways) across major rivers and water-
courses.
It is estimated that the SRN bridge program will require roughly NRs 40 Billion
worth of capital investment to meet all needs identified. The World Bank’s proposed
intervention under the Bridge Improvement and Maintenance Program Support
(BIMPS) is a USD 60m loan/grant from IDA to support the SRN bridge program
which relates solely to bridges on the Strategic Roads Network. The GON would
not be able to fund all SRN bridge program needs over the next five years even
with the Bank’s proposed support. DOR has therefore recognized the importance of
using the Bridge Management System (BMS ) to prioritize expenditures . The first

priority for the program is to preserve existing assets. In particular those bridges
that need urgent maintenance to remain functional . The next priority is the
completion of bridges that have been started but remain incomplete . Of the new
bridges DOR has a number of priorities including the completion of routes i n
remote areas that lack all weather access and in strengthening the bridges on the
high volume routes.
The allocation for the bridge works for the year 2015/16 is about NRs 4.88 billion
which includes NRs 2.08 billion for new bridges, NRs 0.9 billion for bridge
maintenance and repair, NRs 0.13 billion for design/supervision and NRs 1.77
billion for bridges under the LRN. The DoR invovlment in the LRN bridges will
gradually reduce and the DoLIDAR will take over the new construction and
maintenance works.
8.7 Priority Investment Plan

The PIP (2014-21) has been developed to assist in the planning and management
of the Strategic Road Network. The currently designated National Highways and
Feeder Roads have been sub-divided into two classes to assist in the prioritisation
of both maintenance and upgrading.
The current network contains approximately 14,902km of road, including 5,550km

of National Highway and 9,350km of Feeder Road: overall 43% of the network is
sealed – 60% of the Highways and 33% of Feeder Roads. Just over 2,000km of the
total network length (14%) is still in the planning stage.
The proposed re-classification designates a core 1,760 km of National Highways as

being of strategic national significance and sub-divides the Feeder Roads into two
groups. The Class 1 Feeder Roads are basically those that were included in the
Extended Network proposed in the 2007 PIP: additionally approximately 350km of
road with the environs of Kathmandu Valley are separately identified.
The PIP comprises three elements:
Maintenance – Regular, Periodic & Rehabilitation;

Upgrading – from earth/gravel to seal or to higher standards;
New Construction – new links to Kathmandu
The first priority or obligation is for the maintenance of the existing (sealed)
network of approximately 6,400km. Regular maintenance activities include routine
annual expenditures (calculated on a per km basis) and periodic maintenance
involves reseals or overlays at fixed pre-determined intervals. It is suggested that a
revised approach be adopted with increased emphasis on the use of AC overlays
which not only improve the running surface but provide additional strength and
longevity: AC overlays can be justified even on lower trafficked roads.
Exceptionally, sections of road that have failed may also require a more extensive
rehabilitation – basically a reconstruction to return the section to an ‘as-built’
condition.
Regular maintenance is required on all gravel roads, involving annual (or bi-annual)
grading and the replacement of lost material. In general it is considered that gravel
surfacing is unsuitable in the Hills, due to the rate of loss of gravel on gradients and
the haulage cost of replacement material: upgrading to a bitumen seal is preferable.

Limited ‘holding’ maintenance should also be applied to earth sections of the SRN:
due to the rapid expansion of the length of designated SRN, it is recommended that
no expenditure be incurred on Class 2 Feeder Roads, unless specifically justified by
individual study.
A programme of upgrading from earth/gravel to sealed standards is proposed, with

priorities established though feasibility studies. A preliminary objective should be
the sealing of links to all District Headquarters, followed by National Highways
(Class 2) and Class 1 Feeder Roads – a total of 3,500km. This target would entail
the upgrading of at least 500km of road annually – well in excess of previous
programmes.
It is not proposed that any upgrading be undertaken on the remaining 2,500km of

existing earth and gravel Class 2 Feeder Roads.
It is estimated that the annual budget requirement for the above maintenance and
upgrading activities is of the order of Rs 14.4 billion per year: Rs 1.9 billion for
Regular Annual Maintenance, Rs 6.3 billion for Periodic Maintenance, and Rs 5.1
billion for Upgrading to sealed standards of around 600km of road per year.
In parallel, key heavily trafficked sections of the Class 1 National Highway network
should be upgraded to full Asian Highway standards, with enhanced safety features
and capacity improvements (improved overtaking sight distances and a third lane
where feasible). Initially the main access route to Kathmandu (Birgunj-Hetauda-
Narayanghat-Mugling-Kathmandu) should be improved, followed by the Arniko
Highway to the Chinese border and subsequently the link to the Rasuwagadhi
border crossing from Galchhi on the Prithvi Highway.
Limited new construction is envisaged over the plan period due to the substantial
increases in network length that have occurred in recent years – and the extent of
local road building that has taken place. Over 2,000km of Class 2 Feeder Road are
shown as being ‘Under Planning’ and work on these roads should generally be
deferred, pending completion of the higher priority maintenance and upgrading
programmes.
However, priority should be given to the construction of the Fast Track link between
Kathmandu and the Terai (and Indian Border) as this major project would produce
not only significant economic and transport benefits in its own right but also has the
potential of transforming the relationship between Kathmandu and the Terai and
stimulating major growth in the national economy. Coupled with the development of
a Second International Airport at Nijgardh, the Fast Track could allow development
of a major new urban centre in the Terai and simultaneously relieve the pressures
for urbanisation in the Kathmandu Valley, allowing Kathmandu to revert to being the
national, cultural, political and historic capital.
Overall the PIP envisages a period of consolidation (rather than expansion) and
progressive upgrading to appropriate standards. The budget requirement is
calculated with this vision and presented in table below. A total of NRs 176.4 billion
( 25.2 billion/year) is required for next 7 years (till 2021/22) to cover the SRN
related works.

Table 8.5 : Summary of Draft DoR Budget for SRN (2015/16-2021/22) Rs million
2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 Total

1,418 1,583 1,747 1,911 2,075 2,240 2,404 13,378
6,376 6,376 6,376 6,376 6,376 6,376 6,376 44,632
Improvement & Works
Upgrade 5,200 5,200 5,200 6,300 6,300 7,800 9,700 45,700
New Construction 5,400 6,300 6,300 6,300 6,300 6,300 6,300 43,200
Bridge Works
3,110 3,421 3,763 4,139 4,553 5,009 5,510 29,505
Total by Year 21,504 22,880 23,386 25,027 25,605 27,724 30,289 176,415

Mid Term Review of Sector Wide Road Programme & Priority Investment Plan Annex 1 - i.
Annexes

Mid Term Review of Sector Wide Road Programme & Priority Investment Plan Annex 1 - ii.
ANNEX 1: Current Status of PIP2 (2007) Recommendations
Based on Table 10.5 of SWRP/PIP Final Report, April 2007, updated to mid-2014.
Length Donor Status

Scheme
(km) Agency (2013/14)
A. COMMITTED SCHEMES
Basantapur-Mude-Chainpur-Khandbari 96 ADB Part Complete
Galchhi-Devighat-Syabrubesi 79 ADB BT Complete
Khurkot-Manthali-Tamakosi 64 ADB BT Complete
Phidim-Taplejung 87 ADB BT Complete
Pokhariya-Parawanipur (Birgunj ICD) 10 ADB BT Complete
Bhumahi-Parasi-Bhairahawa ICD 30 ADB BT Complete
Baitadi-Satbanjh-Gokuleshwar 74 WB/IDA BT Complete
Khodpe-Jhota-Chainpur 110 WB/IDA BT Complete
Bangesimal-Rakam-Tila River (km135) 135 WB/IDA BT Complete
Sun Koshi-Okhaldhunga 42 ADB On-going
Under
Hile-Leguwaghat-Bhojpur 92 ADB
procurement
Nepalthok-Khurkot 32 Japan On-going
Kathmandu-Bhaktapur 10 Japan Complete
Syabrubesi-Rasuwagadhi 26 China On-going
1400km of Terai Roads 1,500 India On-going
Sabha-Bramadev (Tanakpur Link) 13 India On-going
Total 2,400
B. UPGRADING SCHEMES - EXISTING DoR ROADS (to Sealed Standards)
H03 Barabise - Kodari 8 BT Complete

F13 Bhalubang – Chakchake – Rolpa (Liwang) 108 India BT Complete
H11 Ameliya – Tulsipur 30 India BT Complete
F30 Panchkhal – Melamchi 23 BT Complete
F47 Chhinchu – Devisthal – Jajarkot 107 WB/IDA On-going
H18 Maldhunga-Beni 13 India BT Complete
H11 Tulsipur – Shitalpati – Salyan 54 India BT Complete
F14 Chakchake - Pyuthan 25 India BT Complete
H11 Shitalpati – Musikot 86 WB/IDA On-going
F133 Tulsipur – Purandhara – Botechaur 86 On-going
F48 Lower Dhungeshwar - Dailekh 28 WB/IDA BT Complete
H20 Sanphebagar-Martadi 57 India Part Complete
H25 Mangalsen-Belkhet/Rakam 51 Mid Hills
H25 Safebagar-Mangalsen 38 India BT Complete
Total 714
C. NEW CONSTRUCTION (to FR Standards - sealing subject to FS)

Mid Term Review of Sector Wide Road Programme & Priority Investment Plan Annex 1 - iii.
Length Donor Status

Scheme
(km) Agency (2013/14)
Karnali Rajmarg (km135 to Jumla) 118 IDA/WB On-going

Martadi-Kolti 51 Planned
Hilepani-Diktel 67 India/ADB Part Complete
Track Open
Beni-Jomsom 80
(NA)
Okhaldhunga-Salleri 50 ADB On-going
Total 366
D. NEW CONSTRUCTION (as Earth Track mostly through local efforts)
Under
Jajarkot-Dunai 144
Construction
Under
Simikot-Hilsa 88
Construction
Besisahar-Chame 65 Track Open
Nagma-Gamgadhi 88 Track Open
Total 385
E. UPGRADING OF LOCAL ROADS TO SRN STANDARDS
Baglung-Burtiwang 90 On-going
Kaligandaki-Kushma 67 On-going
Sandhikharka-Tamghas 31 On-going
Sandhikharka-Pyuthan 49
Tamghas-Warmitaksar 19 Part Complete
Pharping-Kulekhani-Bhimphedi 24 On-going
Bhedetar-Ranke 115 On-going
Okhaldhunga-Khurkot 43 On-going
Phidim-Myaglung 75 On-going
Widening
Bhojpur-Diktel 55
complete
Daijee-Jogbuda-Budar 68 No progress
Total 636
F. NEW CONSTRUCTION TO ACCESS KATHMANDU
Kathmandu-Terai Fast Track ** 65 Track Opening

Budget
Sitapaila-Bhimdhunga-Dharke ** 33
approved
G. OTHER STRATEGIC ROAD IMPROVEMENTS
Kathmandu Ring Road Upgrade 28 China Started

Bhaktapur-Banepa-Dhulikhel 20 Japan Planning
Under
Narayanghat-Mugling Improvement 36 WB/IDA
Procurement
Hetauda By-Pass 15 Planning
Under
Koshi Barrage Replacement ** 50 ADB
Procurement

ANNEX 2: Non-PIP (2007) Roads currently under construction
Listing of Roads included in current (2013/14) budget that were not included or
prioritised in 2007 Sector Wide Road Programme & Priority Investment Plan.
Budget Allocation
Scheme (FY 2013/14)
Rupees million
1 Sagarmatha Highway (H09): Gaighat-Diktel 90.00
2 Mahakali Highway (H14): Darchula-Tinka 2.51
3 Kanti Lokpath (F120): Hetaauda-Tikabhairaabh 120.57
4 Roads linking two Districts 90.00
5 Ganesh Man Singh Marga (F180):Thankot-Chitlang 40.00
6 Gangate-Labdhu-Samudratar-Galphu Bhanjyang (F082, F181) 45.00
7 Sanljhandi-Sandhikharka-Dhorpatan (F196) 160.00
8 Byas Marga (Damauli Bazar) (F128): Buddha Singh Marga 44.00
9 RegionalLevel Roads 830.00
10 Damak-Chisapani (F158) 12.50
11 (Dharan-Chatara-)Gaighat-Hetauda (F057) 150.00
12 Tallo Dhungeswor-Satkhamban-Dullu Pipalbot 20.00
13 Devesthal-Kanaidanda-Chaurjhari (F193) 20.00
14 Gumi-Patihalna Chaur (F183) 15.00
15 Tanakpur Link Road (Sabha-Brambhadev 15.00
RIP1 – Sankhu-Melamchu; Tokha-Gurje Bhanjyang-Chhahaare;
16
Chandranigahapur-Gaur; 3 roads linking Raajbiraj
RIP2 – Lamosangu-Tamakoshi; Lumbini Buddhist Circuit Road;
970.00
Bardeghat-Paldanda-Tribeni; Balaju-Ranipauwa-Kakani-Trishuli;
17
Chhahare-Bidur; Baalkhu-Daakchhinkali; Bhaktapur-Nagarkot;
Bharatpur-Meghauli; Janakpur Circular Road
18 Mirdi-Kyakni-Bhimad (F186) 15.00
19 Putalikhet-Karkineta-Kushma (F185) 24.20
20 Km11-Chhepetar-Bhaluswara-Warpac (F184) 77.63
21 Fikkal-Shriantu Danda (F156) 30.00
22 Koshi Corridor (Khandbari-Kimatharka) 200.00
23 Benighat-Arughat-Larke Bhanjyang (F196) 46.00
24 Bridges on Local Road Network (LRN) 1,700.00
25 Kathmandu Valley Roads Construction & Improvement 400.00
26 Other Urban Roads 500.00
27 Kathmandu Valley Road Widening Project 1,800.00
28 Seti Highway: Tikapur-Lode-Chainpur-Taklakot (F195) 100.00
29 Chepang Marga (Thori-Bhandara-Lothar-Malekhu) (F161) 60.00
30 Rehabilitation of FloodDamaged Roads & Bridges 298.37
31 Kathmandu Sustainable Urban Transport Project 667.82
32 Tourism Roads 360.00
Trade Development Project: Rani-Biratnagar-Itahari-Dharan;
33 940.00
Birgunj-Pathlaiya; Belahiya-Butwal

Budget Allocation
Scheme (FY 2013/14)
Rupees million
Sub-Regional Connectivity Project: Birtamod-Mechi Bridge,
34
Manthali-Ramechhap
35 Other North-South Roads (9 roads) 270.00
36 Patan-Pancheswar (F175) 30.00
37 Khutiya-Dipayal (F204) 30.00
38 Potential Strategic Roads 1,000.00
TOTAL Rs 11 billion

ANNEX 3 - THRESHOLD TRAFFIC LEVELS FOR FEEDER ROADS
I. Introduction
The “Classification and Design Standards for Feeder Roads” (February 1994)
proposed a methodology for determining the threshold traffic volume for upgrading
from earth to gravel and gravel to bitumen. This was further elaborated in a
Discussion Paper “Threshold Traffic Levels for Feeder Road Upgrading” (May 1995).
These documents presented a methodology, using the HDM model, for calculation of
the ‘total transport costs’ – i e construction and maintenance costs plus vehicle
operation costs – for typical Hill and Terai roads with increasing traffic volumes. The
construction and maintenance costs and vehicle operating costs were calculated at
1995 levels. The resultant threshold traffic levels for upgrading from earth to gravel
were determined as 35 and 60 vpd respectively for Hill and Terai roads. The resultant
threshold traffic levels for upgrading from gravel to bitumen for Hill and Terai roads
were established as 92 and 100 vpd respectively. It was emphasised that these
figures were not absolute values but were indicative trigger points at which a detailed
feasibility study should be initiated.
The threshold traffic volumes have been re-calculated based on current upgrading
and maintenance costs, and users’ costs (vehicle operating costs and values of
travel time). The analysis has assessed the benefits of upgrading from a fair-weather
earth road to an all-weather gravel surface (including all drainage structures) and,
subsequently, from all-weather gravel to a sealed bitumen surface.
The benefits of upgrading to an all-weather gravel surface are obtained from the
reduced users’ costs (lower vehicle operating costs and lower travel time due to
higher speeds) on the improved surface assuming that the road being open for 12
14
months each year . The benefits from the bitumen seal are obtained from further
reductions in users’ costs and savings in the annual recurrent maintenance costs of
the gravel road.
II. Traffic
The following traffic compositions are used for the calculation of threshold traffic: the
impact on motor-cycles is excluded from the calculation as the potential benefits per
vehicle are small and the effects of upgrading cannot be accurately predicted.
Table 2: Traffic Composition
Medium Medium
Car Utilities Tractor
Truck Bus
5% 15% 40% 30% 10%
14
For the unimproved earth surface it is assumed that the road would be closed to vehicular traffic for 90 days during the
monsoon

The following traffic growth rates are estimated for the calculation of threshold traffic:
Table 3 : Estimated Normal Traffic Growth Rate (%)

Growth Rate (%)
Period
Utilities/Bus/Car Truck/ Tractors
2014-20 8.5 6.8
2021-34 6.8 5.4
Source: Consultants’ estimates, 2014
10% of normal traffic is assumed to be generated after each stage of the upgrading
from earth to gravel, and from gravel to paved.
VIII. Maintenance Policy
The maintenance policies considered for calculating the threshold traffic are based
on planned activities. The activities are given in Table 4 and Table 5.
Table 4 : Routine/Recurrent Maintenance

Earthen Road Gravel Road Paved Road
a) Grading once a year
a) Patching of 0.5% of
a) Routine b) Spot re-gravelling of 5%
the surface area
maintenance of surface area per year
b) Routine maintenance
c) Routine maintenance
Table 5 : Periodic Maintenance

Gravel Road Paved Road
a) Re-gravelling in Hill roads at a fixed a) Resurfacing (SBST) in Hill roads at a
interval of 5 years. fixed interval of 5 years
b) Re-gravelling in Terai roads at a fixed b) Resurfacing (SBST) in Terai roads at

interval of 6 years. a fixed interval of 6 years
IV. Costs
All costs are estimated in economic prices. Economic prices reflect the resource cost
or value of an item to the society. The economic prices are obtained by using
Domestic Price Numeraire. Any duty, tax or subsidy included in the financial price is
excluded and the shadow exchange rate factor (SERF) and shadow wage rate
(SWR) are used to estimate economic costs. Table 6 shows economic costs.
Table 6 : Economic Costs

Cost Items Hill Road Terai
Routine Maintenance (Earthen) 44,904 38,841
Routine Maintenance (Gravel) 44,904 38,841
Routine Maintenance (Paved) 38,168 31,432
Recurrent Maintenance (Earth) 14,968 14,968
Recurrent Maintenance (Gravel) 22,452 22,452
Recurrent Maintenance (Paved) 71,098 56,878
Periodic Maintenance (Gravel) 898,080 898,080
Periodic Maintenance (Paved) 748,400 733,432
Upgrading Earth to Gravel (NRs./Km) 6,788,736 7,725,733
Upgrading Gravel to Paved 4,531,562 4,708,932

V. Users’ Costs
V.1 Vehicle Operating Costs (VOC)

Vehicle Operating Costs (VOCs) of vehicles are calculated using Road Economic
Decision Model (the HDM-4 module calibrated to Nepali condition). The RED model
is the appropriate computer model for calculating VOCs in low traffic volume roads.
In order to predict the vehicle operating costs, the model requires three sets of data:
1. Unit prices of each VOC component
2. Characteristics of vehicles
3. Characteristics of the road
Unit Prices of VOC Components
In predicting VOCs the model first predicts the consumption of the following vehicle
operating cost components as a function of operating conditions and then multiplies
these consumptions by the unit prices of each resource.
1. Vehicles
2. Fuel
3. Tires
4. Maintenance Labour
5. Crew Costs
6. Depreciation
The prices of vehicles and tires and fuel are obtained from dealers and Nepal Oil
Corporation in Kathmandu. The prices are subject to customs and excise duties and
value added tax. All these duties and taxes are excluded from the financial prices to
estimate economic prices. The costs of crew members such as drivers, helpers and
maintenance labour are obtained from drivers and workshops.

Mid Term Review of Sector Wide Road Programme & Priority Investment Plan Annex 3 - iv.
Vehicle Characteristics
The characteristics of the representative vehicles are considered as shown in Table

7.
Table 7 : Vehicle Characteristics
Fuel No. of Operating Weight No. of % of Private
Vehicle Type ESA
Type Wheels (tonnes) Passengers Trips
Med Truck D 6 14.50 4.00 - 0
Bus D 6 10.00 0.80 45.0 0
Car P 4 0.80 0.00 2.5 50
Utility D 4 1.50 0.01 1.5 20
Tractor D 6 4.00 0.20 - 0
Source: Vehicle Specifications
Road Characteristics
The characteristics of representative roads considered for the calculation of threshold

traffic volumes are obtained from the average of roads in the Hill districts and Terai
districts. The characteristics considered are given in Table 8.
Table 8 : Characteristics of Representative Roads

Characteristics Hill Road Terai Road
Link Length (km) 50 50
Average Curvature (Deg/Km) 500 50
Average Rise and Fall (m/Km) 60 2
Rainfall (m/year) 0.21 0.21
Formation Width (Earthen and Gravel) (m) 4.5 6.0
Carriage Way Width (Paved) (m) 3.5 3.5
Total Shoulder Width (Paved Surface) (m) 1.0 2.5
Effective Lane (m) 1.0 1.0
Surface Characteristic (Earthen) (IRI m/Km) 12.0 12.0
Surface Characteristic (Gravel) (IRI m/Km) 8.0 8.0
Surface Characteristic (Paved) (IRI m/Km) 4.0 4.0
Financial prices and costs of various input data required by the RED model for
predicting VOCs are converted to economic prices by excluding duties and taxes.
Table 9 shows economic VOCs calculated by the RED model for roads.

Mid Term Review of Sector Wide Road Programme & Priority Investment Plan Annex 3 - v.
Table 9 : VOC in the Roads (NRs./Km)

Vehicle Hill Roads Terai Roads
Types Earthen Gravel Paved Earthen Gravel Paved
Car 27.84 23.26 19 25.33 20.2 15.56
Truck 99.46 92.37 82.97 66.16 53.69 39.85
Utilities 37.16 31.16 25.4 32.18 25.56 19.55
Bus 83.53 75.23 66.2 60.17 47.84 35.9
Tractor 51.7 47.83 42.75 43.2 38.47 32.47
Source: RED Model, 2014
V.2 Travel Time Costs (Value)
The values placed by travelers on travel time savings are best established using
revealed or stated preference surveys. In the absence of survey results, there are
two approaches to valuing time savings:
use of an empirical relationship between VOT and GDP per capita using
regression between pairs of values from stated and revealed preference
studies; or
use of appropriate income levels.
The latter approach is used. The value of time for work or business trips is assumed
to be related to average regional incomes. Non-work trips are given no value. The
value of pedestrian/passenger travel time is higher for the passengers with higher
incomes.
The values of travel time of respective passenger vehicles are calculated by dividing
their value of time by speeds. The speeds are derived by using Road Economic
Decision (RED) Model (HDM-415 module calibrated to Nepali condition). This model
is considered the most suitable for vehicle speeds on the roads of Nepal. Table 10
shows the obtained values.
Table 10 : Value of Time of Passenger Vehicles (NRs./Km)
Vehicle Hill Roads Terai Roads

Types Earthen Gravel Paved Earthen Gravel Paved
Car 12.55 10.16 8.67 11.10 8.20 6.13
Bus 37.41 32.62 28.18 32.03 24.01 18.20
Utilities 18.01 14.76 12.62 15.34 11.52 8.80
Source: RED Model, 2014
VI. Threshold Traffic Level
Economic Evaluation of upgrading of earthen road to gravel standard and gravel to

paved standard in both the Hill and Terai have been carried out. For the evaluation
cost streams of 20 years at different traffic levels in earthen and gravel roads are
compared and Economic Internal Rate of Returns (EIRRs) have been calculated.
Similarly, cost streams of gravel and paved roads at different traffic levels are
compared to obtain EIRRs. The cost streams include upgrading costs, maintenance
costs, VOCs and values of travel time.
15
Highway Design and Maintenance Standards Model, the World Bank

Mid Term Review of Sector Wide Road Programme & Priority Investment Plan Annex 3 - vi.
The net costs are the benefit of upgrading of roads since VOCs and travel time of
vehicles are reduced due to improved road surfaces and maintenance costs of road
are increased requiring maintaining higher standard road.
Threshold traffic level is the level of traffic when the EIRR is equal to 12%. Below the
threshold level the EIRR becomes lower and upgrading of the road is not
economically feasible since present value (PV) of cost (upgrading costs,
maintenance costs, VOCs and values of travel time) discounted at 12% become
more than PV of existing cost (maintenance costs, VOCs and values of travel time).
Above the threshold level the net PV always become positive and provide benefits to
economy. Table 10 shows the threshold traffic levels for upgrading earth to gravel
road and from gravel to paved road in Hill and Terai.
Table 11 : Threshold Traffic for Upgrading of Roads
Threshold Traffic (VPD)

Activity
Hill Terai
Upgrading Earth to Gravel 42 37
Upgrading Gravel to Paved 102 84
VII. Conclusion
The threshold traffic levels for Hill and Terai do not necessarily justify the
implementation of the upgrading activities immediately. They are indicative only and
are intended:
(i) to provide a trigger point for initiating detailed feasibility study on the specific
road;
(ii) to make the case against the premature or delayed upgrading and to ensure
the economic use of scarce resources; and
(iii) to assist in the preparation of rolling plans for upgrading works.

ANNEX 4 : List of Roads with Classifications

Table 4.1: NH 1 Class Roads
Road From To Length

SN Road Name Status 2014
Ref No Chainage Chainage (km)
1 H01 Mahendra Rajmarg (MRM) 0.00 1027.67 1027.67

2 H02 Tribhuvan Rajpath (TRP) 0.00 28.04 28.04
4 H03 Araniko Rajmarg (ARM) 2.74 112.83 110.09
5 H04 Prithvi Rajmarg (PRM) 0.00 173.43 173.43
6 H05 Narayanghat-Mugling Rajmarg (NMRM) 0.00 36.16 36.16
7 H06 Dhulikhel-Sindhuli-Bhittamod Rajmarg(DSRM) 0.00 48.87 48.87
8 H08 Koshi Rajmarg (KRM) 0.00 29.65 29.65
9 H10 Siddhartha Rajmarg (SRM) 0.00 24.10 24.10
10 H12 Ratna Rajmarg (RRM) 0.00 22.33 22.33
11 H16 Kathmandu Ringroad 0.00 28.00 28.00
12 H19 Shabha( MRM) Bramhadev 0.00 13.30 13.30 Planned
13 H20 Kathmandu Terai Fast Track 0.00 81.80 81.80 Planned
14 F021 Kathmandu - Trisuli - Dhunche - Rasuwagadhi 59.33 143.96 84.63
15 F068 Pokhariya - Jitpur 0.00 10.20 10.20
16 F069 Galchhi - Debighat 0.00 20.00 20.00
Total 1759.93
Existing : 1664.83
Under construction : 0.00
Planned : 95.10

Table 4.2: NH 2 Class Roads
Road From To Length


2 H06 Dhulikhel-Sindhuli-Bhittamod Rajmarg(DSRM) 48.87 208.87 160.00
3 H07 Mechi Rajmarg (MERM) 0.00 268.06 268.06
4 H08 Koshi Rajmarg (KRM) 29.65 111.46 81.81
5 H10 Siddhartha Rajmarg (SRM) 24.10 181.22 157.12
6 H11 Rapti Rajmarg (RPRM) 0.00 168.68 168.68
7 H12 Ratna Rajmarg (RRM) 22.33 113.08 90.75
8 H13 Karnali Rajmarg (KARM) 0.00 202.00 202.00
9 H14 Mahakali Rajmarg (MKRM) 0.00 360.15 360.15
10 H14 Mahakali Rajmarg (MKRM) 360.15 375.15 15.00 Under construction
11 H14 Mahakali Rajmarg (MKRM) 375.15 455.15 80.00 Planned
12 H15 Seti Rajmarg (SERM) 0.00 65.96 65.96
13 H17 Ratuwa River-Rangeli (Postal) 0.00 32.00 32.00
14 H17 Ratuwa River-Rangeli (Postal) 32.00 42.00 10.00 Under construction
15 H17 Ratuwa River-Rangeli (Postal) 42.00 48.00 6.00 Planned

Road From To Length


48 H18 Puspalal Lokmarg (Midhill) 0.00 1032.00 1032.00
49 H21 Kathmandu Outer Ringroad 0.00 61.00 61.00 Planned
50 H21 Kathmandu Outer Ringroad 61.00 72.00 11.00

Mid Term Review of Sector Wide Road Programme & Priority Investment Plan Annex 4 - iv.
Road From To Length

51 F052 Mirchaiya - Katari - Okhaldhunga - Salleri 0.00 112.00 112.00

52 F130 Bhumahi - Parasi - Bhairahawa 0.00 29.15 29.15
53 F133 Maldhunga - Beni 0.00 13.00 13.00
54 F143 Ranjha (H12) - Nepalganj Airport 0.00 2.00 2.00
55 F153 Bastipur - Makri- Pashupatinagar (Hetauda Bypass) 0.00 15.00 15.00 Planned
56 F178 Bijulebhanjyang - Lamidanda 0.00 10.46 10.46
Total 3786.84
Existing : 3512.34
Planned : 196.50

Mid Term Review of Sector Wide Road Programme & Priority Investment Plan Annex 4 - v.
Table 4.3 : FR 1 Class Roads
Road From To Length

1 H07 Mechi Rajmarg (MERM) 268.06 311.06 43.00

2 H07 Mechi Rajmarg (MERM) 311.06 391.06 80.00 Planned
3 H09 Sagarmatha Rajmarg (SARM) 0.00 157.97 157.97
4 H13 Karnali Rajmarg (KARM) 202.00 233.00 31.00
5 F001 Birtamod - Chandragadhi 0.00 12.53 12.53
6 F002 Damak - Gaurigunj 0.00 21.96 21.96
7 F003 Bhardaha - Rajbiraj 0.00 17.75 17.75
8 F004 Rupani - Kunauli 0.00 23.10 23.10
9 F005 Chauharwa - Madar 0.00 26.66 26.66
10 F006 Nawalpur - Malangwa - Sonbarsa 0.00 29.19 29.19
11 F007 Chandranigahapur - Gaur - Bairganiya 0.00 45.44 45.44
12 F008 Bardaghat - Surajpur - Harpur 0.00 23.05 23.05
13 F009 Sunwal - Parasi - Mahespur 0.00 20.95 20.95
14 F010 Jitpur - Khunuwa 0.00 33.39 33.39
15 F011 Taulihawa - Gorusinghe - Sandhikharka 0.00 83.13 83.13
16 F012 Chanauta - Krishnanagar 0.00 20.06 20.06
17 F013 Bhaluwang - Liwang 0.00 130.84 130.84
18 F014 Pyuthan - Chakchake - Ghorahi 0.00 75.00 75.00
19 F015 Lamahi - Tulsipur 0.00 46.62 46.62
20 F016 Bhuregaun - Gulariya - Murtihawa 0.00 35.31 35.31
21 F017 Junga - Rajapur - Bhimapur (IB) 0.00 34.12 34.12
22 F018 Birgunj - Kalaiya 0.00 11.66 11.66
23 F019 Bhaise - Bhimphedi 0.00 12.00 12.00
24 F020 Palung - Kulekhani 0.00 20.57 20.57
25 F021 Kathmandu - Trisuli - Dhunche - Rasuwagadhi 4.38 59.33 54.95

Mid Term Review of Sector Wide Road Programme & Priority Investment Plan Annex 4 - vi.
Road From To Length

26 F022 Balkhu - Dakchhinkali - Kulekhani 0.00 35.59 35.59

27 F023 Satdobato - Tikabhairab 0.00 11.57 11.57
28 F024 Satdobato - Phulchoki 0.00 23.24 23.24
29 F025 Lainchaur - Maharajgunj - Budhanilkantha 0.00 9.39 9.39
30 F026 Chabahil - Sankhu - Jhule - Chautara 0.00 70.45 70.45
31 F027 Jorpati - Sundarijal 0.00 7.13 7.13
32 F028 Bhaktapur - Nagarkot 0.00 23.00 23.00
33 F029 Banepa - Khopasi 0.00 9.54 9.54
34 F030 Panchkhal - Melamchi - Helambu 0.00 63.00 63.00
35 F031 Dolalghat - Chautara 0.00 25.11 25.11
36 F032 Lamosangu - Ramechhap 0.00 124.92 124.92
37 F033 Tamkoshi - Jiri 0.00 38.00 38.00
38 F034 Malekhu - Dhading 0.00 17.50 17.50
39 F035 Anbukhaireni - Gorkha 0.00 24.69 24.69
40 F036 Dumre - Besisahar - Chame 0.00 108.43 108.43
41 F037 Bharatpur Bypass Road 0.00 4.49 4.49
42 F038 Fikkal - Pasupatinagar 0.00 10.75 10.75
43 F039 Biratnagar - Rangeli 0.00 23.88 23.88
44 F040 Hile - Basantapur - Tehrathum 0.00 48.18 48.18
45 F041 Pokhara - Sarangkot 0.00 4.80 4.80
46 F042 Pokhara - Baglung - Beni - Jomsom - Ghoktang 0.00 292.00 292.00
47 F043 Bartung - Tamghas - Wamitaksar 0.00 80.20 80.20
48 F043 Bartung - Tamghas - Wamitaksar 80.20 98.80 18.60 Planned
49 F044 Bhairahawa - Lumbini - Kakrahawa 0.00 30.78 30.78
50 F045 Lumbini - Taulihawa 0.00 24.55 24.55
51 F046 Nepalgunj - Gulariya 0.00 35.22 35.22

Mid Term Review of Sector Wide Road Programme & Priority Investment Plan Annex 4 - vii.
Road From To Length

52 F047 Chhinchu - Jajarkot - Dunai 0.00 143.00 143.00

53 F047 Chhinchu - Jajarkot - Dunai 143.00 260.00 117.00 Under construction
54 F048 Birendranagar - Dailekh 0.00 67.01 67.01
55 F049 Khodpe - Chainpur 0.00 108.68 108.68
56 F050 Satbanj - Jhulaghat 0.00 42.05 42.05
57 F051 Silgadhi - Sanfebagar 0.00 67.00 67.00
58 F052 Mirchaiya - Katari - Okhaldhunga - Salleri 112.00 169.90 57.90
59 F053 Basantapur - Chainpur - Khandbari - Kimathangka 0.00 94.30 94.30
60 F054 Duhabi - Inaruwa 0.00 14.00 14.00
61 F055 Lahan - Bhagwanpur -Thadi 0.00 18.00 18.00
62 F056 Jhumka - Chatara - Barahachhetra 0.00 26.00 26.00
63 F057 Dharan - Chatara - Gaighat-Katari-Sindhuli-Hetauda 0.00 346.50 346.50
64 F058 Bhedetar - Rajarani - Rabi - Ranke (MERM) 0.00 116.00 116.00
65 F059 Birtamod - Sanischare - Budhabare 0.00 12.86 12.86
66 F061 Rangeli - Kanepokhari - Dandagaun - Budhabare 0.00 54.00 54.00
67 F062 Ghinaghat (MRM) - Biratchok 0.00 23.00 23.00
68 F063 Inaruwa - Kaptanganj 0.00 24.00 24.00
69 F064 Phattepur - Kanchanpur - Rajbiraj - Gobindapur 0.00 54.00 54.00
70 F065 Kathauna - Pato 0.00 16.50 16.50
71 F066 Kalyanpur - Subharpatti 0.00 18.00 18.00
72 F067 Dhangarhi- Vidyanagar - Bariyarpatti 0.00 17.00 17.00
73 F070 Khurkot - Manthali 0.00 11.00 11.00
74 F071 Panchkhal - Palanchok Bhagawati 0.00 11.00 11.00
75 F072 Gwarko - Panauti - DSRM 0.00 21.18 21.18
76 F073 Bakhundol (ARM) - Bogatigaun (Ktm University Road) 0.00 2.00 2.00
77 F114 Bardibas - Jaleswor 0.00 42.00 42.00

Mid Term Review of Sector Wide Road Programme & Priority Investment Plan Annex 4 - viii.
Road From To Length

78 F120 Hetauda - Tikabhairab (Kanti Rajpath) 0.00 82.40 82.40

79 F121 Pharping - Kulekhani 0.00 12.00 12.00
80 F122 Bhimphedi - Kulekhani 0.00 15.00 15.00
81 F124 Tandi (MRM) - Sauraha 0.00 7.00 7.00
82 F125 Bharatpur - Meghauli Airport - Dhruwa 0.00 25.00 25.00
83 F127 Dumre (PRM) - Bandipur 0.00 8.00 8.00
84 F131 Malunga (SRM) - Mirmi - Gupteswor(Kaligandaki-Kushma) 0.00 19.00 19.00
85 F131 Malunga (SRM) - Mirmi - Gupteswor(Kaligandaki-Kushma) 19.00 27.00 8.00 Under construction
86 F131 Malunga (SRM) - Mirmi - Gupteswor(Kaligandaki-Kushma) 27.00 36.50 9.50 Planned
87 F131 Malunga (SRM) - Mirmi - Gupteswor(Kaligandaki-Kushma) 36.50 85.00 48.50
88 F132 Ridi - Rudraben i- Wami Taksar 0.00 57.00 57.00
89 F134 Tamghas - Sandhikharka - Pyuthan 0.00 51.00 51.00
90 F134 Tamghas - Sandhikharka - Pyuthan 51.00 84.00 33.00 Planned
91 F134 Tamghas - Sandhikharka - Pyuthan 84.00 132.00 48.00
92 F135 Ramapur (MRM) - Lumbini 0.00 18.00 18.00
93 F136 Shivgadhiya - Padariya (Lumbini-Circumambulatory) 0.00 12.60 12.60
94 F141 Tulasipur - Purandhara - Botechaur 0.00 86.00 86.00
95 F144 Tallo Dungeswor - Mathillo Dungeswor 0.00 8.22 8.22
96 F145 Hilsa (IB )- Simikot 0.00 60.00 60.00
97 F145 Hilsa (IB )- Simikot 60.00 95.00 35.00 Planned
98 F146 Sanphebagar- Martadi - Kolti - Sukhadhik 0.00 57.00 57.00
99 F151 Daiji (MRM )- Jogbudha - Budar (MKRM) 0.00 68.60 68.60
100 F152 Leguwaghat - Sabha Khola (Boharatar) 0.00 28.00 28.00
101 F154 Nagma-Gamgadhi 0.00 89.00 89.00
102 F166 Kagbeni-Muktinath 0.00 26.00 26.00
103 F179 Shahid Road 0.00 110.00 110.00

Mid Term Review of Sector Wide Road Programme & Priority Investment Plan Annex 4 - ix.
Road From To Length

104 F179 Shahid Road 110.00 147.00 37.00 Under construction

105 F179 Shahid Road 147.00 177.00 30.00 Planned
Tikapur-Muda-Saphe Bagar-Dadakot-Gothalakhet-Chainpur-
106 F195 0.00 31.00 31.00
Saipal-Urai Bhanjyang
107 F195 31.00 100.00 69.00 Planned
108 F195 100.00 123.00 23.00
Total 4991.06
Existing : 4553.96
Planned : 275.10

Mid Term Review of Sector Wide Road Programme & Priority Investment Plan Annex 4 - x.
Table 4.4 : FR 2 Class Roads
Road From To Length

1 F053 Basantapur - Chainpur - Khandbari - Kimathangka 94.30 159.30 65.00
2 F053 Basantapur - Chainpur - Khandbari - Kimathangka 159.30 169.30 10.00 Under construction
3 F053 Basantapur - Chainpur - Khandbari - Kimathangka 169.30 207.40 38.10 Planned
4 F060 Bardanga-Urlabari - Madhumalla - Daregaunda 0.00 56.00 56.00
5 F072 Gwarko - Panauti - DSRM 21.18 41.18 20.00
6 F074 Nuwakot Darbar Access Road 0.00 8.00 8.00
7 F106 Charikot - Dolakha - Lamabagar - Lapchegaun 0.00 35.00 35.00
8 F106 Charikot - Dolakha - Lamabagar - Lapchegaun 35.00 90.00 55.00 Planned
9 F107 Birendrabazar -Yadukuha - Mahinathur 0.00 42.00 42.00
10 F108 Janakpur - Yadukaha 0.00 18.00 18.00
11 F109 Dharapani (MRM) - Dhanusadham - Janakpur 0.00 26.00 26.00
12 F110 Janakpur (H06) - Jatahi 0.00 14.00 14.00
13 F111 Jaleswor - Matihani 0.00 7.00 7.00
14 F112 Janakpur(H06) - Manara - Bathanaha 0.00 17.00 17.00
15 F112 Janakpur(H06) - Manara - Bathanaha 17.00 20.00 3.00 Planned
16 F113 Janakpur - Kurtha - Samsi 0.00 25.00 25.00
17 F115 Maithan (MRM) - Gashala - Samsi 0.00 26.00 26.00
18 F116 Phuljor (MRM) -Bayalbas - Tribhuwannagar 0.00 22.00 22.00
19 F116 Phuljor (MRM) -Bayalbas - Tribhuwannagar 22.00 24.00 2.00 Planned
20 F117 Nayaroad (MRM) - Barhathwa - Madhubani 0.00 42.00 42.00
21 F118 Tamagadhi (MRM) - Simraungadh(IB) 0.00 40.00 40.00
22 F119 Manmat (MRM) - Kalaiya - Matiarwa (IB) 0.00 28.00 28.00
23 F123 Dhadingbesi - Arughat - Gorkha 0.00 71.00 71.00
24 F125 Bharatpur - Meghauli Airport - Dhruwa 25.00 33.00 8.00
25 F126 Anptari (H05) - Devghat 0.00 4.00 4.00

Mid Term Review of Sector Wide Road Programme & Priority Investment Plan Annex 4 - xi.
Road From To Length

26 F128 Damauli (PRM) - Neupanebesi - Bhorletar 0.00 32.00 32.00
27 F129 Talchok (PRM) - Khudimuhan (Beganas Lake) 0.00 3.50 3.50
28 F137 Pipara (MRM) - Chakar Chauda (IB) 0.00 27.00 27.00
29 F138 Lamahi (MRM) - Koilabas (IB) 0.00 34.00 34.00
30 F139 Holeri- Sworgadwar - Jaluki (Bhingri) 0.00 35.00 35.00
31 F139 Holeri- Sworgadwar - Jaluki (Bhingri) 35.00 44.00 9.00 Under construction
32 F140 Sitalpati (H11) - Salyan 0.00 9.00 9.00
33 F142 Nepalganj - Baghauda 0.00 47.60 47.60
34 F142 Nepalganj - Baghauda 47.60 50.00 2.40 Under construction
35 F146 Sanphebagar- Martadi - Kolti - Sukhadhik 57.00 111.00 54.00 Planned
36 F147 Sati (Khairipur) - Khakraula 0.00 5.00 5.00
37 F148 Muda (MRM) - Bhajani - Lalbojhi(IB) 0.00 21.00 21.00
38 F149 Sahajpur - B.P. Nagar - Silgadhi (Dipayal) 0.00 48.00 48.00
39 F149 Sahajpur - B.P. Nagar - Silgadhi (Dipayal) 48.00 53.00 5.00 Under construction
40 F149 Sahajpur - B.P. Nagar - Silgadhi (Dipayal) 53.00 83.00 30.00
41 F149 Sahajpur - B.P. Nagar - Silgadhi (Dipayal) 83.00 108.00 25.00 Planned
42 F150 Kaluwapur (MRM) -Shreepur - Belauri (IB) 0.00 30.00 30.00
43 F155 Bramhadev- Jogbuda 0.00 30.00 30.00 Planned
44 F156 Phikkal ( MERM) - Sriantu - Baudhadham 0.00 33.00 33.00
45 F157 Ilam ( MERM) - Maipokhari - Sandakpur 0.00 35.00 35.00
46 F158 Damak (MRM) - Chisapani 0.00 43.00 43.00
47 F158 Damak (MRM) - Chisapani 43.00 44.00 1.00 Planned
48 F159 Khurkot - Ramechhap - Sanghutar - Okhaldhunga 0.00 33.00 33.00
49 F159 Khurkot - Ramechhap - Sanghutar - Okhaldhunga 33.00 42.00 9.00 Under construction
50 F159 Khurkot - Ramechhap - Sanghutar - Okhaldhunga 42.00 98.00 56.00 Planned
51 F160 Janakpur Circumambulatory 0.00 6.00 6.00
52 F160 Janakpur Circumambulatory 6.00 53.00 47.00 Planned

Mid Term Review of Sector Wide Road Programme & Priority Investment Plan Annex 4 - xii.
Road From To Length

53 F160 Janakpur Circumambulatory 53.00 80.00 27.00 Under construction
54 F161 Lothar (MRM) - Chuniyadhara - Malekhu 0.00 62.00 62.00
55 F162 Beganastal - Bhorletar 0.00 25.50 25.50
56 F163 Khairenitar (PRM) - Bhimad - Kawaswoti (MRM) 0.00 41.00 41.00
57 F163 Khairenitar (PRM) - Bhimad - Kawaswoti (MRM) 41.00 49.00 8.00 Planned
58 F163 Khairenitar (PRM) - Bhimad - Kawaswoti (MRM) 49.00 106.00 57.00
59 F164 Gagangaunda (PRM)-Begnastal 0.00 2.00 2.00
60 F165 Pratapur-Raninagar-Triveni 0.00 19.00 19.00
61 F167 Gaindakot - Rampur - Pipaldanda-Maldhunga 0.00 133.00 133.00
62 F167 Gaindakot - Rampur - Pipaldanda-Maldhunga 133.00 139.00 6.00 Planned
64 F167 Gaindakot - Rampur - Pipaldanda-Maldhunga 207.00 211.00 4.00 Planned
66 F168 Bansgadhi (MRM) - Mainapokhar 0.00 8.40 8.40
67 F169 Kothiya -Thakurdwara - Amreni (MRM) 0.00 21.00 21.00
68 F170 Baddichour - Gutu 0.00 30.00 30.00
69 F171 Bhuregaun (MRM) - Bangesimal (Surkhet) 0.00 21.00 21.00
70 F171 Bhuregaun (MRM) - Bangesimal (Surkhet) 21.00 68.00 47.00 Planned
71 F172 Karnali Corridor (Manma - Kolti) 0.00 43.00 43.00
72 F172 Karnali Corridor (Manma - Kolti) 43.00 196.00 153.00 Planned
73 F173 Gamgadhi - Sukadik 0.00 65.00 65.00 Planned
74 F174 Silgadhi - Khaptad 0.00 8.00 8.00
75 F174 Silgadhi - Khaptad 8.00 30.00 22.00 Planned
76 F175 Patan - Pancheswor 0.00 32.00 32.00
77 F175 Patan - Pancheswor 32.00 62.00 30.00 Planned
78 F176 Ugratara - Melauli 0.00 24.00 24.00
79 F176 Ugratara - Melauli 24.00 29.00 5.00 Under construction

Mid Term Review of Sector Wide Road Programme & Priority Investment Plan Annex 4 - xiii.
Road From To Length

80 F176 Ugratara - Melauli 29.00 65.00 36.00 Planned
81 F177 Jumla Khalanga - Gamgadhi 0.00 55.00 55.00 Planned
82 F180 Ganeshman Marg (Thankot-Markhu ) 0.00 20.00 20.00
83 F181 Tadi-Labdhu-Samundratar-GolphuBhanyang 0.00 40.67 40.67
84 F182 Tallo Dungeshwor - Dullu 0.00 18.00 18.00
85 F183 Shivanagar - Gumi - Patihalnachaur 0.00 45.00 45.00
86 F184 11 Kilo (F035) - Chhepetar - Bhaluswara - Barpak 0.00 48.60 48.60
87 F185 Putalikhet - Karkineta - Majhbeni(Kusma) 0.00 23.00 23.00
88 F185 Putalikhet - Karkineta - Majhbeni(Kusma) 23.00 31.00 8.00 Under construction
89 F185 Putalikhet - Karkineta - Majhbeni(Kusma) 31.00 47.00 16.00 Planned
90 F186 Mirdi - Chitre - Bhimad 0.00 59.00 59.00
91 F187 Trafficchok(MRM)-Baniniya (IB) 0.00 21.00 21.00
92 F188 Banke (MRM) - Sangrampur (IB) 0.00 22.00 22.00
93 F189 Gadhimai - Kawahigoth (IB) 0.00 10.00 10.00
94 F190 Dumkibas (MRM) - Tribeni 0.00 22.00 22.00
95 F191 Kathawa (IB) -Tribeni 0.00 19.00 19.00 Planned
96 F192 Rajapur-Daulatpur-Sati 0.00 7.00 7.00 Planned
97 F192 Rajapur-Daulatpur-Sati 7.00 13.00 6.00
98 F193 Chaurjahari - Bas khola - Devisthal 0.00 42.00 42.00
99 F194 Saljhandi - Satyawati - Badahare River 0.00 178.50 178.50
100 F195 123.00 180.00 57.00 Planned
101 F195 180.00 202.00 22.00
102 F195 202.00 264.00 62.00 Planned
103 F196 Benighat-Arughat-Larke Bhanjyang 0.00 68.00 68.00

Mid Term Review of Sector Wide Road Programme & Priority Investment Plan Annex 4 - xiv.
Road From To Length

104 F196 Benighat-Arughat-Larke Bhanjyang 68.00 165.00 97.00 Planned
105 F197 Aryabhanjyang (SRM)-Rampur 0.00 41.00 41.00
106 F198 Birgunj Bypass 0.00 7.21 7.21
107 F199 Gandhi Manamohan Marga 0.00 25.00 25.00 Planned
108 F200 Kharindrapur(MRM)-Shitalpur-Bilmi 0.00 18.00 18.00 Planned
109 F201 Jiri-Salleri Road 0.00 160.00 160.00 Planned
110 F202 Jiri-Those-Bamti Road 0.00 44.00 44.00
111 F203 Gulariya-Bagahighat-Rammapur 0.00 22.00 22.00 Planned
112 F204 Khutiya-B.P.Nagar-Gadhasera--Dipayal 0.00 4.00 4.00
113 F204 Khutiya-B.P.Nagar-Gadhasera--Dipayal 4.00 32.00 28.00 Planned
115 F204 Khutiya-B.P.Nagar-Gadhasera--Dipayal 37.00 93.00 56.00 Planned
117 F205 Nijgadh-Pataura-Bankul-Gaur 0.00 41.00 41.00
118 F205 Nijgadh-Pataura-Bankul-Gaur 41.00 56.00 15.00 Planned
119 F206 Gaur-Pipara-Samanpur-Santapur-Nunthar Road 0.00 38.00 38.00 Planned
120 F207 Parsa-Bara-Rautahat-Gandaknahar Road 0.00 80.00 80.00 Planned
121 F208 Triveni-Sanahi-Gandak Nahar Sadak-Nawalparasi 0.00 32.00 32.00
122 F209 Holangadi-Dharampani-Dhungakhani 0.00 6.30 6.30
Total 4015.78
Existing : 2503.28
Planned : 1437.10

Annex 5: Details of Budget for SRN (2015/16-2021/22)
2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 Total Comments
Total Length Maintained by DoR km 6,369 7,107 7,844 8,582 9,319 10,057 10,794

Routine Rs/km/year 62,400 397 443 489 536 582 628 674 3,748
Recurrent Rs/km/year 76,300 486 542 598 655 711 767 824 4,583
Specific Rs/km/year 77,200 492 549 606 663 719 776 833 4,638
Other Rs/km/year 6,800 43 48 53 58 63 68 73 408
Sub-Total (Regular Maintenance) 1,418 1,583 1,747 1,911 2,075 2,240 2,404 13,378
Reseal (Lengrth) NH 171 171 171 171 171 171 171 1,200
FR 386 386 386 386 386 386 386 2,700
AC Overlay (Length) NH 357 357 357 357 357 357 357 2,500
FR 0 0 0 0 0 0 0 0
Rehabilitation (Length) NH 529 529 529 529 529 529 529 3,700
FR 386 386 386 386 386 386 386 2,700
Reseal (Cost) NH 408 408 408 408 408 408 408 2,856 @ 2.38 Million per Km
FR 918 918 918 918 918 918 918 6,426
AC Overlay (Cost) NH 1250 1250 1250 1250 1250 1250 1250 8,750 @ 3.5 Million per Km
FR 0 0 0 0 0 0 0 0
Rehabilitation (Cost) NH 2643 2643 2643 2643 2643 2643 2643 18,500 @ 5.0 Million per Km
FR 1157 1157 1157 1157 1157 1157 1157 8,100 @ 3.0 Million per Km
Sub-Total (Periodic Maintenance) 6,376 6,376 6,376 6,376 6,376 6,376 6,376 44,632
Upgrading Works
Upgrade to AC for NH Km 200 200 200 200 200 300 390 1,690
Cost 3,000 3,000 3,000 3,000 3,000 4,500 5,850 25,350 @ 15 Million per Km
Upgrade to seal for FR Km 200 200 200 300 300 300 350 1,850
Cost 2,200 2,200 2,200 3,300 3,300 3,300 3,850 20,350 @ 11 Million per Km
Sub-Total (Upgrade) 5,200 5,200 5,200 6,300 6,300 7,800 9,700 45,700
New Construction (SRN)
Km 300 350 350 350 350 350 350 2,400
Cost 5,400 6,300 6,300 6,300 6,300 6,300 6,300 43,200 @18 million per Km
Bridge Works
Rehabilitation/Maintenace 900 990 1,089 1,198 1,318 1,449 1,594 8,538
New Construction in SRN 2,080 2,288 2,517 2,768 3,045 3,350 3,685 19,733 @ 10% increment from base cost
Design / Supervision 130 143 157 173 190 209 230 1,233
Sub-Total (Bridge Works) 3,110 3,421 3,763 4,139 4,553 5,009 5,510 29,505
Total by Year 21,504 22,880 23,386 25,027 25,605 27,724 30,289 176,415

Mid Term Review of Sector Wide Road Programme & Priority Investment Plan 1

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Mid Term Review of Sector Wide Road Programme & Priority Investment Plan 1.

1. INTRODUCTION & SUMMARY..............................................................................................................................1

SOILTEST/AVIYAAN/PRESTIGE JV Final Report – February 2015

6.4.3 Government of India ............................................................................................................................................ 48

SOILTEST/AVIYAAN/PRESTIGE JV Final Report – February 2015

SOILTEST/AVIYAAN/PRESTIGE JV Final Report – February 2015

1. Introduction & Summary

The previous study included an extensive and innovative assessment of

1.2 The Study

This Final Report incorporates responses to comments made at the presentation in

SOILTEST/AVIYAAN/PRESTIGE JV Final Report – February 2015

1.3 Terms of Reference

(d) to review and update an appropriate level of expenditure on investments for

1.3.2 Part II: Review of DoR Goals, Strategies & Policies

SOILTEST/AVIYAAN/PRESTIGE JV Final Report – February 2015

1.4 Structure of the Report

Chapter 2: Study Overview:

Objectives & Output

Chapter 3: Existing Strategic Road Network:

Responsibilities and functions of the DoR

Chapter 4: Review of Budgets & Expenditure:

Analysis of Budgets & Expenditures

Chapter 5: Maintenance Obligations:

SOILTEST/AVIYAAN/PRESTIGE JV Final Report – February 2015

Chapter 6: Development & Upgrading of SRN:

Strategy for development & upgrading of network

Chapter 7: Accessibility (2013):

Methodology and approach

Chapter 8: Revised PIP for 2014 to 2021:

SOILTEST/AVIYAAN/PRESTIGE JV Final Report – February 2015

The PIP2 developed a maintenance strategy and programme based on an analysis

The 2007 Study conducted a detailed examination of the accessibility provided by

SOILTEST/AVIYAAN/PRESTIGE JV Final Report – February 2015

2.2 Goals, Strategies & Policies

SOILTEST/AVIYAAN/PRESTIGE JV Final Report – February 2015

2.3 Priority Investment Plan

Consideration of both the maintenance and construction requirements – together

2.4 Main Findings

SOILTEST/AVIYAAN/PRESTIGE JV Final Report – February 2015

SOILTEST/AVIYAAN/PRESTIGE JV Final Report – February 2015

It is however recognised that an extended Strategic Road Network of 14,902km,

Two classes of National Highway are proposed:

NH Class 1: The ‘core’ network of highways: East-West Highway, main links

FR Class 1: Strategic Feeder Roads: all remaining 51 FRs in 1995 network,

Class 2 National Highways should be constructed and maintained to appropriate

SOILTEST/AVIYAAN/PRESTIGE JV Final Report – February 2015

Class 1 Feeder Roads should be selected and identified based on a detailed

SOILTEST/AVIYAAN/PRESTIGE JV Final Report – February 2015

3. Existing Strategic Road Network

3.2 Review of DoR Goals, Strategies & Policies

The six Objectives - in two groups ‘policy’ and ‘operational’ - are:

(i) Decentralise Network Administration

SOILTEST/AVIYAAN/PRESTIGE JV Final Report – February 2015

(i) Decentralise Network Administration

(ii) Establish a Network Planning/Monitoring capability in DoR

(iii) Establish a Self-Sustaining Fund for Road Maintenance

(iv) Improve Maintenance Operations in the Divisions

The establishment of the Strengthened Maintenance Divisions (SMDs) with an