Consultancy Business Opportunity in Nepal for Infrastructure Development.

1. "Making Globalization Work: Role of Consultants" A Paper on Rural Infrastructure Development in Nepal: Prospect and Opportunity for Consultancy Business by Er.Bhim Upadhyaya "Knowledge is Useable Information"

2. Contents of the Presentation Introduction to Nepal's Present Socio-economic Development & Geographical Context National Policy, Strategies and Plans for Local Infrastructure Development Roads Statistics Major Programs Under-implementation Institutional Arrangements Vision for Nepal's Infrastructure Development Infrastructure Development Gaps vis-à-vis Engineering Consultancy Business Prospect & Opportunity Conclusions

3. Nepal in the World Map

5. 45,000 Villages with 22.5M Rural People (86%).

6. 15M Youth Below 25 yrs Age(60%).

7. 4.5 M (20%) Youth 15-25 Age,

8. >4.5 M People Unemployed.

11. About 80 % of the country within mountainous / hilly terrain

13. Irrigable-17.6 Lakh ha.(66% of Cultiv'd)

14. Irrigated- 11.2 Lakh ha. (62% of Irrigable)

16. Diesel- 55 MW

18. LP Gas - 225 MT/Day8.Telephone Lines- 5.3 M 9. Internet Users- 0.2 M

19. Nepal Road Accessibility- Lowest in the Region Current road length (km) per 1,000 sq km Land Area Current road length (km) per 10,000 People

20. Strategic and Local Road Network of Nepal & Accessibility (2hrs; 4 hrs) No Roads yet in 11 Districts Crowded Roads Total Road Network: 28,000 km. Highways: 15 No Feeder Roads: 51 No

21. National Society of Agri Engineers Strategic and Local Road Network of Nepal & Accessibility (2hrs; 4 hrs) National Rural Roads Network: 22,000 Km Operational Rural Roads: 10,000 Km SRN : 5400 Km(78% Access.) LRN: 4500 Km (85% Access.) 10 TB: 4000 Nos.

22. Opportunity: Nepal's 20 yrs ROAD VISION

23. Opportunity: Road, Rail, Tram, Cable Car Cableways Kath- Hetauda Fast Track Road China Links Kath-valley Cable Car Kath- Hetauda Tunnel Tarai East-West Railway Proposed Railroad Mid-Hill East-West Railway & Road Kath-Birganj Railway Rope, cable way

24. Policy Framework for Rural Infrastructure Development Sector in Nepal Nepal Agricultural Perspective Plan (1997-2017) National Transport Policy- 2001 Poverty reduction Strategy Paper 2001 A 20 Year Master Plan-2002 Priority Investment Plan-(2007-2016) Local Self Government Act 1999 Local Infrastructure Development Policy-2004 Local Infrastructure Strategic Action Plan 2006 Nepal Roads Board Act 2002 National Development Plans (10 plans) National 3 Year Interim Plan 2062-2065

25. 7 Sectors of Rural (Local) Infrastructure in Nepal

26. Electricity connections To Remaining 62% households Opportunity in New Nepal Schools, Health posts for all villages Rural Electrification Social Infras Remaining 75% Irrigable Land Houses for all Poor BuildingProsperous New Nepal Irrigation Housing All Villages 40,000/3915 VDCs Drinking Water To 24% Remaining Habitations Roads Water Supply Rural telecom Connectivity Challenging task is the evolution of the management structure for integrated development Tele Connectivity To all remaning villages

27. Status of Rural Roads in Nepal (as of 2004)

28. Major Rural Infras. Dev. Programs-1 Decentralised Rural Infrastructure and Livelihood Project (ADB loan), USD 50 M (18 districts) Rural Access Improvement & Decentralisation Project (WB Grant), USD 32M (30 districts) Rural Reconstruction and Rehabilitation Sector Development Project (ADB/DFID/OFID), USD 106.8M (20 districts) Rural Access Program (DFID Grant) GBP 17 Million (7 districts) Rural Village Water Resourced Management Project (Finland Grant), Euro 11.4Million. Rural Water Supply and Sanitation Project Western Nepal (Finland Grant), Euro 9.7Million. Trail (Suspension) Bridge Construction and Maintenance Project (SDC Grant, 54 hill districts)

29. Major Rural Infras. Dev.Programs-2 DDC Block Grant, Rs 1 Bn/year, 42% for public works VDCs Block Grant, Rs 8 Bn/year, 70% for public works Municipalities Block Grant, Rs 400M /year, 70% in public works Local level and Agricultural Road Project Rs 1 Bn/year Remote and Special Area Development Program, Rs 100M/year. District Road Support Program (SDC Grant, 6 districts) Rural Community Infrastructure Dev. Works (WFP Food Grant, 22 districts) Rural Road Maintenance Fund

30. Institutional Setup for Rural Infrastructure Development in Nepal

31. Government Organizational Tiers for Rural Road Development

32. Present Unitary Nepal Kathmandu Centric Future: States-Centric New Federal Republican Nepal CPN Maoist’s 13 States (?) with Political, Economic Powers & Modern Capital Towns

33. Opportunity: BIODIVERSITY USA JAPAN FRANCE GERMANY UK ETC., NO COUNTRY HIGH TECHNOLOGY SOME DESERT COUNTRIES NEPAL INDIA CHINA BRAZIL INDONESIA MEXICO MALAYSIA ETC., LOW POOR RICH BIO - DIVERSITY

34. Distribution Loss NOW 2025 > 25% <5% Challenge:POWER Hydro Thermal Nepal's Power Sources: Diesel 55 MW Renewable Energy Nuclear - 0 Hydro ~556 MW(0.67% potential) Renewable Energy <1 MW Coal Thermal 0 Total ~ 612 MW

36. Budhi Gandaki 600

37. Kali Gandaki 600

38. Aruns 643

39. Karnalis 1380

40. Pancheswor 6480

41. Dudh Koshi 300

42. Andhi Khola 180

43. Langtang 218

44. U Tamakoshi 309

45. 20 Other Big ProjectsTotal (30 Projects) 12,766MW Karnali Seti Budhi Kali Andhi Langtang Dudhkoshi Arun Pancheswor Hydel Locations Total Hydropower Potential 83,000 MW

46. Opportunity: Energy Vehicles – Jatropha(Sajiwan) Bio-Fuel Train, Car & Bus

47. Engineering Education Opportunity for Quality Human Resource in New Nepal Nepal needs large number of Talented Youth With higher education Higher Educational System should create TWO HUMAN RESOURCE CADRE (1.5 Lakh SLC; 10,000 Univ. Graduates; 3000 Engineers produced/yr, 7 M students) Skilled Youth with specific Knowledge special Skills Skilled Youth with Higher Education Manufacturing Sector Services Sector World Level Requirement for Knowledge & Skill Oriented Industry & Services Agri Sector

49. Asian Development Bank,

50. UK's DFID,

51. JICA,

52. SDC,

53. Finland,

54. OPEC Fund,

55. IFAD,

57. SKAT (Swiss),

58. ITECO (Swiss),

59. Finland Consulting Group,

61. GTZ4. Domestic Consultants almost all

63. 2nd Largest Pedestrian Susp. Bridge 1452m More than 12000 such TB Required Seasonal Pontoon Bridge 29

64. Tuin Gravity Ropeway

65. Vast Scope of Infrastructure Business Agenda-1 East-West Railway Transport thru' Terai (1000 km). Mid Hill East-West Highway (1000 km). Midhill East-West Railway Transport (1000 km). Kodari-Kathmandu-Pokhara-Lumbini Railroad Transport (500 km). 7 No of North-South Highways linking Indian border cities to Chinese cities (800 km). Electric Tram in the Kathmandu Valley Ring Road (30 km). Cable Car service along the foothill in the Kathmandu Valley and sorrounding hill tourist spots uphill the valley mountain viz Shivpuri, Nagarkot, Daman, Palung, Kakani, Phulchoki (130 km). 7 Cable Car services linking religious centres, tourism centres to the cities and towns or market centres along the east west or other highways (175 km). 5 Special Economic Zones. ………. cont'd

66. Vast Scope of Infrastructure Business Agenda-2 New Towns in Proposed New Provincial Headquarters (13 Nos). New towns for the Proposed New District Headquarters (75 Nos). Expressway to link Proposed International Airport at Nijgadh to Kathmandu (75 km). 14 Industrial Development Estates Focussed to nearby Indian & Chinese Markets. Development of 4 Multi-purpose Water Resource Mega Projects (With Tunnel Technology damming rivers flowing in the Mid hill (viz. Kali Gandaki, Arun, Budi Gandaki, Seti) for Terai's fertile land, develop hydropower, water navigation, transport and recreation. All Season Paved Rural Roads in all districts (6000 km). Other Rural Infrastructures: micro hydel, micro-irrigation, renewable electricity projects. 10,000 MW of Hydroelectricity. Imagine how much works would be generated and how many engineers and consultants would require? Enormous!

67. Conclusions-1 Nepal's all political parties are now committed to take Nepal to fast development path. It needs huge financial resources & expertise. Foreign donor community is interested in providing grant/loan aid. Even if we manage to mobilize resources, Nepal need relevant large quantity & quality of experts. Multinational companies/private sectors do have equally good opportunity to direct-invest in Nepal. With this prospective investment boom, domestic as well as international engineering consultancy firms will certainly have a great opportunity & scope for doing a great deal of business in: railroad, highways, hydro & renewable energy, cable car, industrial engineering & so on. ….cont'd

68. Conclusions-2 It is therefore equally important to lobby with their respective governments to assist in Nepal's priority areas by the participant international consulting firms in this seminar. International consulting firms can also discuss with their respective government agency to prepare a package for expertise assistance required in different technological disciplines. Entire world has now become ever more interdependent. Nations are assisting nations financially or technologically. Every one participating in the seminar representing different countries has got a great role in supporting Nepal's rapid rural infrastructures development. Helping Nepal by helping your government you will all help yourselves. Official Development Assistance policy must/can/should be supportive and benefiting to investors, consultants and the recipient countries. This politics should be one of the focus movement for international consultancy businessmen interested in Nepal. A great potential, prospect of consultancy business opportunity is awaiting in development-virgin land of Nepal.

69. How about You Coming Forward? AnyQuestion? Thank You bhimupadhyaya@gmail.com cell 9851104057