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Water and Sanitation Upgrade To Improve Nepal's Health Profile

The health profile and living conditions for some 600,000 people in about 50 small towns in Nepal will be improved through a water and sanitation project for which the Asian Development Bank today approved a loan of US$35 million. The improved health and hygiene conditions will also assist in reducing the high rate of waterborne diseases in Nepal.

By expanding access to safe water supplies and improved sanitation conditions, the project will boost the quality of life of low-income groups in small urban centers through time-saving and income-earning opportunities for women, improved health conditions and a higher rate of school attendance of children.

Nepal is ranked among the countries with the poorest health profile in the world. Lack of safe drinking water supply and sanitation facilities have resulted in worsening public health conditions, deteriorating quality of life and increased economic costs.

The high incidence of water-related diseases has contributed significantly to low productivity in Nepal. Official statistics in 1996 show that less than 35 per cent of the people residing in urban centers other than Kathmandu have access to piped water supply and systematic solid waste management has yet to be established even in the largest metropolitan areas.

The urban population along major national highways has increased rapidly in the past decade. Inadequate access to a safe water supply, combined with poor environmental sanitation and personal hygiene, has adversely affected the quality of life and health conditions of these people. Sanitation-related diseases account for 72 per cent of total ailments and diarrhea continues to be one of the leading causes of childhood deaths in Nepal. Other common illnesses are dysentery, coughs and skin diseases.

"Improved living conditions in small towns will help absorb the rural migrants and reduce pressures on environment, infrastructure and employment in Kathmandu Valley" said Xiaoyan Ye, Mission Leader for the project. "These small towns are also the immediate markets, transportation depots and processing centers of agricultural products from the rural areas."

The project has four main components to enable the Government to strengthen its capacity to monitor sector performance while giving a greater role to communities and non-governmental organizations (NGOs) in direct service delivery.

The first component is a public awareness campaign and health and hygiene education programs. In all project towns, NGOs will be engaged to carry out the programs with focus on community hygiene awareness, participation and project ownership and construction of in-premise sanitation facilities.

The second component comprises the construction of water supply schemes, basic storm water drainage and sewerage with communal septic tanks and public latrines.

The third component provides for technical and financial training in operations, maintenance and water source protection to the user community while the fourth provides for project implementation assistance.

In order to ensure sustainability, the project will introduce a demand-driven service delivery approach, with a strong focus on beneficiary participation decision-making. The project is part of the Government's 15-year plan for small towns' water supply and sanitation development.

The ADB will finance 65 per cent of the project cost of US$53.9 million while Government, local governments and the beneficiaries will fund the remainder. The ADB loan will come from its Special Funds and is repayable over 32 years including a grace period of 8 years. It will carry an interest rate of one per cent per annum during the grace period and 1.5 per cent per annum thereafter.

The Ministry of Physical Planning and Works will be the executing agency and Department of Water Supply and Sewerage will be the implementing agency.

The project is scheduled for completion in December 2006.

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