📋 Tender Overview
Project Name
Sustainable Urban E-mobility Project
Project Number
58217-001
Country / Economy
Nepal
Project Status
Proposed
Project Type / Modality of Assistance
Loan
Source of Funding / Amount
Loan: Sustainable Urban E-mobility Project
Concessional ordinary capital resources lending US$ 100.00 million
Sector / Subsector
Transport / Urban public transport
Gender
Effective gender mainstreaming
Description
The proposed Sustainable Urban E-Mobility Project aims to modernize public transportation in Nepal's Kathmandu and Pokhara Valleys by introducing electric buses, enhancing traffic management through intelligent transport systems (ITS), and implementing forward-thinking policies and regulations. In Kathmandu Valley, the proposed project focuses on deploying new electric bus fleets and modernizing traffic infrastructure with ITS. In Pokhara Valley, it goes further to integrate comprehensive mobility solutions that improve public transit infrastructure, promote green and livable city concepts, and bolster the city's tourism potential. This proposed project will not only facilitate a seamless transition to electric public transport but also foster institutional capacity and green transportation skills, positioning both valleys at the forefront of sustainable urban mobility.
Project Rationale and Linkage to Country/Regional Strategy
Nepal's rapidly growing urban centers are crucial for economic growth and social transformation. The urban population now makes up 66% of the country's total population of 29 million, with Kathmandu Valley housing 3.1 million people, contributing over 31% of national gross domestic product (GDP). Pokhara, with 0.6 million residents, is the second-largest urban area. Rapid urbanization has increased travel demand. However, inadequate public transport, unplanned urban development, aging bus fleet, limited regulatory enforcement, weak governance, and low institutional capacity, has led to a 26% rise in private vehicle use and a 40% decline in public transport, thereby increasing pollution and greenhouse gas (GHG) emissions. Moreover, public transport is mostly run by small-scale private operators under a fragmented 'route license' system, are plagued by overcrowding, delays, unpredictability, and safety concerns. Limited financial capacity of private operators has led public transport to use fossil-fuel based fleet that has high intensity of GHG emissions and air pollution.
