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1 Introduction: Local/Rural Transport Services Policy  This pol icy doc ument is prepared in the contex t of exi sti ng "Na tional Tra nsport Pol icy - 2001/2002" (NTP). This Local Transport Services Policy (LTSP) will be focused on the issues of rural transport service sector and its role to promote the over rural development.  Trans port is vita l to socio -economic develo pment . An effec tive transport sector enhanc es opportunities for domestic, regional and international trade, accruing enormous benefits to the government, users, providers, operators as well as workers. People with access to jobs, markets, health and educational facilities, and other amenities are in a better position to improve their living standards and roll back the advance of poverty in society.  Transport itself consists of two components: Transport infrastructure and transport service.  The fi rst component itself has ma jor share to the development funding. The second component “Transport Service” is very vi tal for the ef fective utilization of transport inf rastructures. In the contex t of rural transport sector, GON has greater priority for the const ructio n of Rural Transport Infrast ructure (RTI ). However, the development target is not achieved due to the poor management of RTI and the service provision. Following situations can be highlighted in the background of the transport services in the country. Poor road condition, Road condition is relatively good, but service is not available, Road is good and servi ce is availa ble but people do not use it. Either it is unaff ordabl e or it does not meet the expect ed ser vice sta nda rds suc h as freq uenc y, reli abi lity , safety, schedule etc.  The concentration of employment opportunities, facilities and services in the urban areas, the trans port services are relativ ely affor dable, reliable, and safe. However, there are numerous other transport relative problems and issues in urban areas. Urban areas are major centers of transport services as well as other economic activities. There is not any boundary between the urban and rural transport services. Furthermore, many urban areas (except some major cities) are of rural nature regarding their economic activities, transport network and public facilities and state of infrastructure development. Therefore, almost all transport services for rural areas are operated from the urban centers as the annex of their bossiness. The national leve l, ma inly intercit y tr ansport routes al ong the strategi c road is managed by the Department of Transport Management. In such context of our urban and rural areas, the policy is intended only for those areas of rural nature, thus it is named as the ‘Local Transport Services Policy’. Thus, in the framework this policy ‘local transport’ covers the all the transport services along the district level routes, irre spective of their administrative boundary. The local tra nsport can be character ized distinguished as:  Transport routes not mentioned by the DOTM, Genera ll y transpor t services operat ed fr om the di st ri ct headquarters by the associations of transport operators,  This LTSP is developed within the framework Rural Access Improvemen t Decent ralization Project (RAIDP). RAIDP is a follow-on project from Rural Infrastructure Project (RIP-Credit 3215- NP) and aims at replic ate, scale up and main stream the good pract ices and positive lesson s learned from implementing the RIP. The RTP considers transport as a key to reducing poverty and raising living standards in the medium and long terms. To achieve these goals, the Rural  Trans port Policy envisages a reliabl e, safe, affor dable transpor t servic es in rural areas which will be the foundation changing the living standards of rural people.  This Policy is the result of wide range of discussion, consultation and collaboration with major stakeholders of this sector. Initially, this document was expected to be prepared after getting the feedback from the pilot scheme implementation. However, due to some constraints, the proposed pilot schemes were not launched by the decision of Department of Local Infra struc ture Develop ment and Agricult ural Roads (DOLI DAR). Never theles s, this policy Draft Rural Transport Policy/RTSSPD-RAIDP 1

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1 Introduction: Local/Rural Transport Services Policy

  This policy document is prepared in the context of existing "National Transport Policy-2001/2002" (NTP). This Local Transport Services Policy (LTSP) will be focused on the issues of rural transport service sector and its role to promote the over rural development.

  Transport is vital to socio-economic development. An effective transport sector enhancesopportunities for domestic, regional and international trade, accruing enormous benefits to

the government, users, providers, operators as well as workers. People with access to jobs,markets, health and educational facilities, and other amenities are in a better position toimprove their living standards and roll back the advance of poverty in society.

 Transport itself consists of two components: Transport infrastructure and transport service.  The first component itself has major share to the development funding. The secondcomponent “Transport Service” is very vital for the effective utilization of transportinfrastructures. In the context of rural transport sector, GON has greater priority for theconstruction of Rural Transport Infrastructure (RTI). However, the development target is notachieved due to the poor management of RTI and the service provision. Following situationscan be highlighted in the background of the transport services in the country.

•Poor road condition,

• Road condition is relatively good, but service is not available,

• Road is good and service is available but people do not use it. Either it is unaffordableor it does not meet the expected service standards such as frequency, reliability,safety, schedule etc.

 The concentration of employment opportunities, facilities and services in the urban areas, thetransport services are relatively affordable, reliable, and safe. However, there are numerousother transport relative problems and issues in urban areas. Urban areas are major centers of transport services as well as other economic activities. There is not any boundary betweenthe urban and rural transport services. Furthermore, many urban areas (except some major

cities) are of rural nature regarding their economic activities, transport network and publicfacilities and state of infrastructure development. Therefore, almost all transport services forrural areas are operated from the urban centers as the annex of their bossiness. The nationallevel, mainly intercity transport routes along the strategic road is managed by theDepartment of Transport Management.In such context of our urban and rural areas, the policy is intended only for those areas of rural nature, thus it is named as the ‘Local Transport Services Policy’. Thus, in the frameworkthis policy ‘local transport’ covers the all the transport services along the district level routes,irrespective of their administrative boundary. The local transport can be characterizeddistinguished as:

•  Transport routes not mentioned by the DOTM,

• Generally transport services operated from the district headquarters by the

associations of transport operators,

  This LTSP is developed within the framework Rural Access Improvement DecentralizationProject (RAIDP). RAIDP is a follow-on project from Rural Infrastructure Project (RIP-Credit 3215-NP) and aims at replicate, scale up and main stream the good practices and positive lessonslearned from implementing the RIP. The RTP considers transport as a key to reducing povertyand raising living standards in the medium and long terms. To achieve these goals, the Rural

 Transport Policy envisages a reliable, safe, affordable transport services in rural areas whichwill be the foundation changing the living standards of rural people.

 This Policy is the result of wide range of discussion, consultation and collaboration with major

stakeholders of this sector. Initially, this document was expected to be prepared after gettingthe feedback from the pilot scheme implementation. However, due to some constraints, theproposed pilot schemes were not launched by the decision of Department of LocalInfrastructure Development and Agricultural Roads (DOLIDAR). Nevertheless, this policy

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document contains and tries to encompass as maximum as possible issues related to the localtransport services. The results of detailed study of the rural transport services, existingtransport facilities and regulatory framework are fundamental for the development of thisdocument.

2 Key Challenges: Rural transport sector

Promoting development of Rural Transport Services: In many cases, implementation of rural transport solutions does not go beyond development of infrastructure i. e construction of 

rural roads. However, most of the rural roads are not in service conditions. Improving ruraltransport services should be an important rural transport policy objective. The existingscenario of the whole country (including rural) in this regard is very sensitive and out of control by any legal framework. Strategies for improving local transport services are relatedto the urban and regional level transport services.

Poor coordination and unclear responsibilities: There is a need to provide a coherentlegal framework and clear assignments of management responsibilities for both the localgovernment and the community. Coordination is major challenge between government,private operators, and local communities.

Appropriate Standards: non engineered rural roads and their proper maintenance aremajor impediments for reliable transport services. Alignment selection, traffic prediction,

technical parameters should be major parts for the development of rural road network.

Local Private Sector: Transport service sector is expanding from the urban area to therural. Transport entrepreneurs’ Associations and their monopoly in transport services aremajor obstacles to develop competitive and affordable, reliable and safe transport services inthe country. The promotion of local private sector or community based cooperatives might begood approach for achieving the ultimate goal i.e. poverty reduction. However, economicallypoor communities in rural areas are not capable for taking desired benefit from the providedtransport infrastructures. Therefore, the main challenge is to develop the local private sectorto be involved in this business.

It has been established that there are several factors that have limited the impact of effortsaimed at addressing rural travel and transport problems. These include:

• lack of clear policies for authority to address rural transport problems;

• insufficient development of appropriate technologies;

• inadequate priority to the rural travel and transport sector;

• inadequate planning and financing,

• weak institutional framework,

• Lack of coordination among agencies/stakeholders,

• underdevelopment of the sector in terms of infrastructure and means

Local transport policies provide the framework for defining key development objectives tobe achieved through rural transport investments. The policy framework should alsobroadly indicate the institutional and strategic framework for implementation of ruraltransport initiatives. The policy document contains a number of policy statements on severalissues related to the transport services.

3 Proposed /Rural Local Transport Services Policy

 The existing National Transport Policy (2001/2002) mainly focuses on the issues of strategicroad network and is concerned with the Ministry of Physical Planning and Works. It does notcover the issues related to the local road networks. Furthermore, existing policy is mainlyconcentrated on the matter of infrastructure development and it has not elaborated theissues related to the transport management and services. Some of the policy statements andInstitutional arrangements envisaged by the existing policy have not been implemented yet.

 The proposed Local Transport Services Policy will be focused on the rural transport servicesector and it will encompass the rural as well as rural-type urban areas. The implementingagencies of this policy would be Ministry of Local Development and Department of Transport

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Management. It will guide the central level as well local level agencies for decision making onthis important sector of economy.

4 Policy Themes of the /Rural Local Transport Services Policy

 The development of the Local Transport Services Policy is guided by a clear sense of purposeand sound policy principles. This was drafted in coordination with wide range of stakeholdersand government agencies. The following are the principles which guided the approach topolicy development, and which assisted the consideration of all the detailed issues faced by

rural population in this regard:

Competition: Competition and market forces should guide the transport system to ensureefficient, affordable and responsive services and carriers should be able to compete, withinthe various modes of transportation.Cost Recovery:   Transport users and providers should contribute to the real cost of resources, facilities and services provided to them at public expense.Economic Development: Economic well-being and growth should be served by an effectiveand efficient transport system.Consultation: Public consultations should be mandatory for the decision on funding andspending of local transport infrastructure and their management for appropriate services.

Private Sector Participation: Services should be provided by the private sector, as far aspracticable. However, the concept of rural transport cooperatives by the support of localauthorities should be initiated.Equal Access to Transport: The population should have reasonable access to the transportsystem. The subsidies should be targeted for the needy people.Appropriate mode of transport:  The mode of rural transport services should be selectedon the basis of demand characteristics as well as the technical characteristics of rural roads.Promotion of IMT would be an appropriate solution rural transport services.

5 Fundamental aims of the Policy

 The proposed Local Transport Policy is expected to deal with the major issues related to thissector and to promote the reliable, affordable and safe rural transport services based on theopen market principle. The fundamental aims of the policy are to:

• Support the national development agenda for rural areas in the country for sustainableeconomic growth and social development;

• Identify the legislative (regulatory) and administrative arrangements to support thepolicy objectives;

•  To improve the interagency coordination;

• Ensure the development of the transport system in light of the realities of the globaleconomy and the national fiscal situation;

• Ensure compliance of the transport sector with safety standards

• Emphasize the human and physical resource needs for implementation of the policy;

• Provide a framework within which transport infrastructure and services can be usedefficiently by the Government and other stakeholders;

• Give confidence to the private sector as well as local communities to invest in, andimprove, the transport sector.

6 Key Issues addressed in the Policya) Inter agency coordination and legal framework for their restructuring

 Transport sector is highly grown sector, in terms of public as well as private investment in thecountry. The existing organizational-structures of central/local level authorities are not in theposition to manage the sector or unable to perform even day to day functioning. Moreover,existing regulatory frame-works are not relevant or simply has not been implemented. The

proposed LTSP would try to address the following matter of this issue:• Co-ordination of the transport service agencies, the regulatory and enforcement

authorities to provide and set up standards for a safe, secure, high quality, efficientand well regulated transport service.

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• Incorporate mechanism for the Public Private Partnership for transport service,

• Organizational reform of related agencies,

• Legal frame-work for changed conditions of this sector.

 b) Maintenance of Local Roads:

• Formation of local road user groups (communities) for transport services: maintenanceas well as develop ownership for the restriction of overloaded vehicle to move on theirroads. It gives the sense of ownership to the rural communities.

• Securing a sustainable means of funding road maintenance expenditures,

• Capacity development of local communities for the work together to minimize thenegative environmental impact arising from the provision of transport services andinfrastructure.

c) Public Transportation

• Ensuring the provision of a safe, secure and efficient Public Transport Service/System inthe local context.

• Promote public transport services by private companies and community based vehicleoperation,

d) Traffic Management at local level

• Institutionalize the sound traffic management systems in district urban centers to servethe rural areas within the district.

•  Traffic safety issues should be addressed,

• Implementation strategies of existing traffic rules

• Regulating over-loaded vehicles to ensure better quality road condition and saferfreight vehicles,

e) Non-motorized Transport

• Fostering a safer regime for use of non-motorized transport,

Creating better conditions for pedestrians,• Fostering greater use of bicycles,

• Promote the non-motorized Intermediate Means of Transport.

f) Issues regarding trail network with trail bridges and ropeways

•  The existing rural trail network for pedestrian and animal movement

•  The issues of efficient operation of Trail Bridge and ropeways. 

7 Structure Local Transport Policy

 This Local Transport Services Policy would incorporate policy directions related to its core

objectives. It addresses the roles of Government, the private sector and the numerousauthorities operating in the sector. It would indicate the proper organizational arrangementfor development of the reliable and affordable transport services in rural areas of Nepal.Policy is arranged in the following sections:

Section I: BackgroundSection II: PreambleSection III: VisionSection IV: Goals & ObjectivesSection V: Programming and Planning Policy directionsSection VI: Financing Policy DirectionsSection VII: Sustainable Policy DirectionsSection VIII: Institutional Policy Directions

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8.1 Section I: BackgroundIn the context of rapid motorization and amplified rural road network, existing Governmentprovision for ensuring the smooth functioning of rural transport sector is insufficient. Hugestate (public) investment in the development of rural transport infrastructure is not in theposition of giving adequate return to the nation and rural economy. Moreover, rural transportsector is a wide platform which may be a fundamental tool for the poverty alleviation andcreating better opportunities for rural population.

Economic activities of rural population highly depend upon the transportation facilities.Government authorities are concerned with the infrastructure provision, and private sector isengaged for the service provision. Huge state investment and development effort are noteffective. Thus, rural population remains far from the reliable and affordable transportservices. Weak regulatory mechanism, profit only motives of the transport entrepreneurs,monopoly in the business and etc. are creating impediments to the rural accessibility andmobility. In such way, rural transport service sector is facing many difficulties and mostprominent among them are as follows:

• Higher vehicle operating cost and monopoly of service provider makes unaffordablerural transport services.

• Poorly maintained rural roads are not appropriate for good transport services.

• Poor regulatory mechanism is not in the capacity of enforcing rules and regulationsrelated to the transport services.

• Higher rate of deterioration of the road surface due to overloading of vehicles in ruralareas.

•  Traffic safety is very crucial in rural areas due to the poor law enforcement and publicawareness on this matter.

Unless the above issues are addressed, poor mobility can become a major hurdle to economicgrowth of rural areas. In this background, rural development and poverty reduction agendacould be supported by the formulation of appropriate ‘Transport Service Policy’, which couldbe helpful for decision makers at central as well as at local level authorities. Therefore, apolicy is, needed on the approach to dealing with this rapidly growing sector by suggesting

the clear direction and a framework for future action.

8.2 Section II: Preamble

Since the years of multi-party democracy, communication and transport sector has given highpriority and achievement is remarkable. Most of the district headquarters are brought intoconnection with road network and almost all villages have telecommunication facilities. Morethan thirty thousand kilometers of local road network has been developed. Similarly, vehiclefleet in the country has significantly increased. The number of registered vehicles in thecountry is more than one million. The annual growth rate is about 14 percent. The coverage of the road network is significantly increased; access to facilities and services has beenrelatively improved during the last decade.

Investment in rural roads has been a major concern for governments and donor agencies. Aroad network is taken as the basis for the reliable, frequent and safe movement of goods andpassengers. However, the importance of transport services for the provision of ruralaccessibility has been relatively ignored until recently. The proposed policy focuses not onlyon the “roads-only” approach of rural development but also would set the vision for anefficient, affordable and dependable rural transport services.

 The proposed policy should reflect that rural transport service is basis for the development of other sectors. Therefore the institutional arrangements for planning and implementationshould be inter-sectoral. On the other hand, this policy should be recognized as the

fundamental policy for the rural development. The proposed policy is not contrary document to the National Transport Policy 2001/2002, Three Year Interim Plan (2064/65-2066/67), Local Infrastructure Development Policy-2061 and

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other relevant Regulations such as Vehicle and Transport Management Act-2049 etc.However, in the changed context of economic development and political scenario in thecountry these documents are needed to be revised and revisited.

8.3 Section III: Vision Statement

 The Vision of the Rural Transport Services Policy is to provide a policy framework for thedevelopment of an efficient, safe, affordable, sustainable and people-centered transportsystem for the accelerated economic development of rural areas of Nepal.

8.4 Section IV: Goals and objectives

 The main objective of the Rural Transport Services Policy is to develop an efficient, safe,affordable, sustainable and people-center transport system in the country. Broader policyobjectives of RTSP can be summarized as:

•  To reduce poverty in rural areas of Nepal: Increased mobility of rural population willhave positive impact on the rural economy. .

•  To provide a coordinated approach for addressing the diverse issues in rural transport. The proposed Rural Transport Services Policy would be intended to establish a coherent

policy framework for coordination among various stakeholders of rural transportservice.

•  To reduce rural-urban migration so as to reduce the pressure in urban areas: Within thewider policy objective of promoting rural development, rural transport development isan important input to agricultural and cottage industry development meant to fosterequitable employment, growth and income distribution amongst the whole population.

•  To balance the public and private sector involvement in rural transport services: this isthe mutual recognition of stakeholder for their responsibilities and involvement.

•  To strengthen local authorities to work for consumer satisfaction and eliminate cartelsand syndicates. In the other word, regulatory mechanism should be empowered.

•  To support and promote the community based transport services (Village Transport

Cooperatives) so as to provide frequent and economic services to them.•  To strengthen local authorities: District Development Committees, Village Development

Committee (VDC) and Municipalities are major institutions of local development.Capacity building and their involvement gives the constructive environment for ruraltransport service.

Specific objective of RTSP can be mentioned as:

• Increase the frequency of transport services along the constructed road networkin the rural areas;

• Encourage the competitive transport service to the rural areas;

• Improve the service quality (reliability, safety, convenient etc.) in the rural areas;

• Promote IMT as an appropriate mode of rural transport service.

8.5 Section V: Programming and Planning Policy Directions

8.5.1 Road Inventory and ClassificationObjective:

•  To have a reliable database of the rural road network and related infrastructure toenable informed decision making.

The policy direction:

a. It will be a top priority of DOLIDAR/MoLD to complete the nationwide rural road andother transport infrastructure inventory.

 b. Efforts to capture the spatial and attribute data in an electronic database will continue.Update of DTMP should be done in reasonable period.

c. GIS units at DOLIDAR and District Technical Offices (DTO) will be established for theeffective management of the rural infrastructure database.

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8.5.2 Rural Road Design StandardsObjective:

•   To ensure that all rural roads are built to appropriate standards for particular Transportation Modes.

The policy direction:

DTO should monitor and follow the engineering standards of all the rural roads within thedistrict.

b. The rural roads with poor geometry/technical parameter should be updated based onthe importance and traffic volume.

c. The roads should be classified as per the technical specification and issue certificationsfor the particular transport service within the districts.

8.5.3 Rural Transport ServicesObjective:

•  To ensure that rural transport services meet the mobility needs of the rural population,

•  To promote reliable, affordable safe transport services in rural areas.

The policy direction:

a. MoLD will continue the policy of non-intervention in the transport services sector,but will focus on removing physical obstacles through the provision of appropriateinfrastructure.

 b. DoTM should expand its organizational structure to the District level.c. DOTM should revise the 'Vehicle and Transport Management Act-2049' and makenecessary and relevant changes in the provisions for vehicle registration and properenforcement of the new regulations.

d. A separate Act will have to be prepared for Rural Transport Management.

8.5.4 Gender IssuesObjective:

• To ensure that both women and men are benefited equitably from the developmentof rural transport service including rural road infrastructure.

The policy directiona. MoLD will mainstream gender issues in all stages of the project cycle –

identification, preparation and design, appraisal, implementation and supervision,and monitoring and evaluation.

b. The travel burden of women should be taken into consideration for the planning of transport services.

8.5.5 Environmental ConsiderationsObjective

•  To develop rural road infrastructure in an environmentally sustainable way.The policy direction:

a. DTO/ DOLIDAR/MoLD are committed to mitigate any negative environmental impacts atall stages of provision and construction of rural road.

 b. DOLIDAR will develop comprehensive guidelines that will be followed by all involved inthe planning and development of rural road infrastructure.

c. DOLIDAR/DTO will mainstream environmental safeguards into the planning anddevelopment of rural road infrastructure.

8.5.6 Road SafetyObjective

•  To minimize the number of traffic accidents on rural roads.The policy direction

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a. DOLIDAR/MoLD will proactively pursue road safety related issues in the planning anddevelopment of rural roads so that appropriate geometrical design standards arefollowed, traffic signs are erected, and potentially hazardous sections are protectedusing traffic calming devices. If necessary, DOLIDAR will seek assistance from DOR,DOTM or Traffic Police on these issues.

 b. DOLIDAR will cooperate with relevant organizations to reduce traffic accidents andcasualties on rural roads, including encouraging educational and awareness campaigns.

c. Central road accident database system should be established in coordination with DOR,

DOTM, DOLIDAR and Traffic Police.d.  There should be the provision of Road Safety Audit in rural roads by DTO. Whereas,

each project should have allocate certain budget for the "road-safety"

e. District level Transport Safety will be planned, implemented and monitored by theformation of the ‘District Transport Safety Committee’. 

8.5.7 Stakeholder Participation for transport servicesObjective

•   To ensure that stakeholders' views are reflected at all stages of the roaddevelopment project cycle.

The policy direction:

a. DOLIDAR/MoLD will integrate stakeholders' participation into all stages of the roaddevelopment project cycle - from planning to operation of rural roads.

 b. DOLIDAR will endeavor to develop comprehensive stakeholder participation guidelinesfor different stages of a road project.

c. DOLIDAR will develop the guidelines for community based maintenance, safetyprovision, and control of vehicle overloading issues.

8.6 Section VI: Financing Policy Directions

8.6.1 Improvement versus Maintenance FundingObjective:

• Construction of a ‘new road’ should be prioritized only after the preservation of 

‘existing roads’. Maintaining the roads is the first requirement of smooth transportservices.

The policy direction

a. Preservation of existing road assets will be the top priority of DOLIDAR, and thereforemaintenance funding will get priority over improvement funding.

 b. DOLIDAR/MoLD will only fund the improvement of rural road infrastructure when thereis assured adequate maintenance funding for the improved infrastructure.

c. One of the criteria for investment decisions will be a comparison of the life cycle costsof different options.

d. DOLIDAR/MoLD will seek the appropriate institutional mechanisms such as the

formation of an inter-ministerial committee to resolve maintenance funding issues withthe Roads Board Nepal and Ministry of Finance.

8.7 Section VI: Sustainable Policy Directions

8.7.1 Organizing and Implementing MaintenanceObjective:

•  To maximize the effectiveness and minimize the costs by managing maintenanceoperations in an effective and sustainable way.

The policy direction:

a. DOLIDAR will delegate the responsibilities for organizing and implementing themaintenance of rural roads to the DTOs.

b. DTO will have to take initiations to the capacity building of local communities for theroad maintenance for the smooth transport service provision.

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8.7.2 Vehicle Overloading ControlObjective:

•  To minimize damage to rural roads caused by overloaded vehicles, and therebyreducing maintenance costs and loss of potential benefits of transport due todamaged roads.

The policy direction:

a. DTO will identify rural roads with chronic overloading problems (e.g. roadsconnected to quarries) and will recommend to appropriate authorities thereclassification of the roads according to their function.

 b. DTO in cooperation with local communities will endeavour to find a way to controlthe overloading on rural roads including consultation with stakeholders to findpractical overloading control solutions.

8.7.3 Involvement of communities in Rural Transport Services

Objective

•  To establish reliable transport services in the village

•   To develop entrepreneurship (direct or indirect to the transport sector) for theeconomic development of Local communities.

The policy direction:

a. DDC/VDC will indentify, encourage and assist the potential villages/communities toform ‘Village Transport Cooperatives’.

 b. Financial institutions will be arranged for support to start the transportentrepreneurship in the villages.

c. Capacity building of the rural young peoples to start up the entrepreneurship in thedirect or indirect with the transport sector.

8.7.4 Use of Local Resource Based or Intermediate Technologies

Objective•  To promote the IMT for the affordable, reliable and safe Rural Transport Services

•  To use appropriate local resource based construction and maintenance technologiesthat minimize the whole life costs of the assets, that are sustainable, and that areconducive to employment generation.

The policy direction:

a. DOLIDAR/DTO will carefully examine different alternative surfacing/paving study resultsand evidence, and will adopt options that are suitable for Nepal and have the lowestwhole life-cycle costs.

 b. DOLIDAR/DTO will encourage the use of appropriate technologies for the development

and maintenance of rural roads that favours the use of local labours and materials butdoes not undermine quality and cost aspects.c. District level agencies related to the local transport sector will have the priority in the

use of appropriate IMT within the district

8.8 Section VII: Institutional Policy Directions 

8.8.1 Delegation of responsibilities to local governmentObjective:

•  To setup the decentralized approach of the development of affordable, reliable, safetransport services at local/district level,

•  To ease the coordination between stakeholder in the transport sector.

The policy direction:

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a.  The primary role of MoLD/DOLIDAR/DOTM will be limited to policy and strategyformulation; setting standards; development of guidelines on different aspects of the local transport sector.

b. District level agencies will be delegated the responsibilities for the betterimplementation of programs, plans and projects in the transport service sector

c. Village and local communities will be involved in each programs and projects for thesustainability of the programs and projects in transport service sector.

d. DDC should take initiations for the coordination in this respect.

8.8.2 Institutional Capacity Development at the national and local LevelsObjective

•   To develop institutional capacity for effective development and management of roads at all levels.

The policy direction:

a. MOLD will undertake a review of the institutional capacity for the rural road sub-sector,and will streamline the institutional structure at all levels;

 b. DOLIDAR will take all steps necessary to develop the institutional capacity at differentlevels of the organization, including working with educational and training institutions.

9 Institutional arrangement for the rural Transport service

 To achieve the above mentioned objectives and policies directions following institutionalarrangement will be established.Institutional arrangement and responsibilities:a. District Development Committee (DDC):

• Responsibilities for the transport serviceso DDC will allocate budget for: subsidizing the Village Transport Cooperatives and

o Allocate emergency maintenance budget for Transport routes in operation

through DTO,o Support (credit or trainings etc.) to the Vehicle Repair Centers,

o Allocate budget for ‘capacity building of transport services organizations’ such asDTO technicians, Traffic police, VRCC, Village transport cooperatives, Vehicleservice centers, Drivers of rural areas, Transport operators’ associations,

o Political, administrative and moral support to the ‘District Transport Management

Committee’.o Approval of the District level transport fare by the meeting of ‘District Rate

Approval Committee’ which is recommended by the DTMO.o Recommend the ‘New rural route application for the permission Transport

Routes to the District Transport Management Committee which were submittedby the VDC.

b. Village Development Committee (VDC):

• Responsibilities for transport services at village level routes:o Coordinate with District Level Institutions on the matter of Transport services

and their needs to the village.o Recommend the DDC on the establishment of ‘Village Transport Cooperatives’,

o Recommend the DDC on the establishment of ‘Vehicle Repair Centers’.

o Submit the proposal for opening the new Transport Route in the village once a

year to DDC,o Submit the proposal for yearly budget for emergency maintenance budget to

DDC,o Conduct traffic safety awareness programs by the VDC budget.

 

c. Department Transport Management (DOTM):•  To prepare the ‘Local Transport Service Act’. Review the existing ‘Vehicle and Transport

Management Act-2049’

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• Extension of organizational structure to the District level/Municipality level:

d. District Transport Management Office (DTMO)

• Responsibilities of DTMOo Vehicle registration,

o Driver’s license,

o Route determination for district

o Fare determination and submit for the approval to the DDC-‘Rate Apporval

Committee’.o Route permission (licensing) on the recommendation of ‘District Transport

Management Committee’e. District Transport Management Committee (DTMC):

Chairman: Chief District Officer

Member: Representative, Transport Operator’ Association

Member: Chief, District Police / Office Traffic Police

Member: Representative from DDC and Municipality

Member: Chief, DTO

Member: Chief, Division Road Office

Member Secretary: Chief, District Transport Management Officef. District Technical Office (DTO):

•  The technical responsibility for district level road-network and Transport Serviceso Perform ‘emergency maintenance work’ utilize/operate the emergency fund

allocated by the DDC.o Establishment of appropriate database system of rural road network,

o Prepare and update ‘District transport route map’: Bus routes, Jeep route, IMT

route, main trails,o Prepare and submit the yearly budget for the ‘Transport Service’ to the DDC

Council.o Coordinate with ‘District Transport Management Office’, Traffic Police, Transport

Operators’ Associations, Technical assistance to the VRCC and Village TransportCooperatives

g. District Transport Operators’ Associations (DTOA)Presently all the transport services are handled by the different Transport Operators’Association. There may be Jeep, Bus, Tempo, Rickshaw, Truck and others in each district.DTOAs have major role in the decision making process of the transport sector at district level.

  The DTOAs shall be consulted on the formulation and implementation of action plansmentioned in the ‘Rural Transport Services Policy’. Their technical and management skill willbe upgraded by organizing training programs. A coordination body will be formed

o DTOAs will be responsible for the competitive transport services in the district.

o DTOAs shall coordinate with different modes of transport in the district.

o Responsible to maintain the fixed schedule in the district level transport routes.

h. Village Road Coordination Committee (VRCC):o  They have been already formed in RAIDP districts.

o Additional responsibilities will be given for maintaining transport routes and

support the Village transport Cooperatives

i. Village Transport Cooperatives (VTC)o  They will start ‘transport services’ within the limits of their own village and

market hubs

 

 j. Vehicle Repair Centers (VRC)o  These centers are established in each market hubs

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o Depending upon the demand for repair, they will increase their business for

bicycle, motor-cycle, Tempo, Tractor, Jeep, bus and etc.

k. District Police/Traffic

• Responsibilities for transport serviceo Conduct training on the traffic rules and regulations to the ‘Nepal Police’ staffs

stationed at different part of the District (Villages),o Actively participate in the ‘public awareness campaign’ for traffic safety, rules and

transport services.o Daily traffic management of district hub.

 l. Rural Transport Service Inspectors (appointed by the DTMC)

•  Transport Service Inspectors will be responsible for checking:o  The Transport Service permission for particular Transport routes,

o Route fare

o Drivers’ License

o  Traffic rules in village roads and enforcement

o  Transport Service quality of 

o Vehicle Conditions along the district level routes

o Overloading of Vehicles along the district and Village routeso Insurance documents (third Party insurance) for the vehicles

Rural Transport Service Inspector will take initiation for the investigation of road accidents. m. Insurance system:

• District level financial institutions will be encouraged to ease the insurance systemsuch as collection of premium etc.

• Rural Transport Service Act will have the provision of insurance strictly.

n. District Transport Safety Committee (DTSC) The Committee will be formed under DAO. It will have a secretariat (Transport Safety Unit)

at the DAO.• Formation of the Committee:

o Chairman: Chief District Officer

o Member: Representative, Transport Operator’ Association

o Member: Representative Transport Labours’ Association

o Member: Chief, District Police / Traffic Police

o Member: Chief Engineer of the Municipality at District Headquarters

o Member: Chief, DTO

o Member: Chief, Division Road Office

o Member Secretary: Chief, District Transport Management Office

• Responsibilities and Duties

o  To coordinate with the central level agencieso  To maintain the database for road accident

o Planning of road safety programs for coming FY

o Collect the funding for the road safety programs

o Formation of expert team for the investigation of Road accidents within the

districto Assist the NGOs working in the traffic safety awareness programs

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