Infrastructure Component

What is the Subcomponent?

Component 2 

How does it work? (Implementation Modality)

The infrastructure component addresses the infrastructure constraints of the selected value chains-tea, ginger, cardamom and dairy. Because the most significant infrastructure constraints are found in the mountain and hill districts of the Koshi and Mechi corridors, eastern Nepal. It is in these districts that the main activities of the component will be focused. The component will provide technical support and advice to the programme DTO's in the updating of districts plans and the identification of infrastructure constraints relevant to the programme including implementation of District Road Construction for approximately 470km of Roads these will be both District Road Core Network (DRCN Roads) and Village Road Core Network (VRCN Roads). This component will also build capacity in the districts to maintain and further develop local infrastructure.

Program Districts are:

Koshi Zone: Dhankuta, Terathum, Bhojput and Sankhuwasabha

Mechi Zone: Illam, Pachthar and Taplejung 

Immediate objective: Sustained improvement in rural infrastructure that supports local economic development. This component will address rural infrastructure that leads to poor and seasonally interrupted access to social and economic services, high transaction costs, low competitiveness and low productivity of the rural economy. 

Partners and Implementation Arrangement

The key national partners for the implementation rural roads is the local government authorities in the programme districts supported by the Ministry of Federal Affairs and Local Development, the Departure of Local Infrastructure Development and Agricultural Roads, and the Ministry of Agricultural Development (DoLIDAR)

Responsibility for implementation lies with these partners, but close day-to-day support and advise will be provided by a Management Contractor (MC), Orgut.

Component 2 is planned and managed through the Management Contractor Orgut Consulting AB) in close coordination with the key stakeholders, and hence, all road construction is implemented under DoLIDAR District Technical Offices (DTO's).

This Component is divided into 2 Sub-components as shown below:

Subcomponent 2.1:  Rural Transport Infrastructure (RTI).


Output 2.1.1: Improved rural transport infrastructure including motor- roads, motorable bridges, foot trails, trail bridges and gravity ropeways.


Output 2.1.2: Enhanced local capacity to develop and maintain Rural Transport Infrastructure (RTI).


Output 2.1.3: Established systems procedures and resources for maintenance of RTI.

Subcomponent 2.2:  Market- related Infrastructure.


Output 2.2.1: Provision of more and better public/ private market-related infrastructure, e.g. collection centers, storage facilities, market place facilities, and small-scale irrigation schemes for the value chain products.

Output 2.2.2: Enhanced local capacity to identify, plan develop and maintain public market-related infrastructure.


Output 2.2.3: Established system, procedures and resources for maintenance of the public market – related infrastructure.

 Who are the target groups?

The key priority is to strengthen market-based growth with a focus on reducing poverty and improving living standards. This entails that the core of the programme will focus on the agriculture sector given its importance as a main contributor to the economy and to employment. The strategic focus of the programme will be on the private sector development in compliance with the Government of Nepal and Danida’s strategies, and the private sector will be a beneficiary and also a direct implementing partner.

UNNATI Component 2 Work Plan- February 2016 to December 2018