Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 20 Nov 2006
PDS Updated as of 16 Jul 2009

Project Name Small Towns Water Supply and Sanitation Sector
Country Nepal
Project/Program Number 31402-013
Status Approved
Geographical Location Small Emerging Towns along the East-West Highway and the Connecting Major North-South Feeder Roads
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector Water supply and other municipal infrastructure and services
Subsector Water Supply and Sanitation
Strategic Agendas
Drivers of Change
Gender Equity and Mainstreaming Categories


Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)

Safeguard Categories

For more information about the safeguard categories, please see

Environment B

Summary of Environmental and Social Issues

An environmental impact assessment or initial environment examination was carried out for each of the selected small town. Prospective project beneficiaries, various stakeholders, and nongovernmental organizations concerned were consulted when formulating the investment schemes and addressing social and environmental issues and concerns.

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

Workshops, training programs and other awareness campaigns were carried out and completed. Project Completion Mission is planned for November 2009.

During Project Design
During Project Implementation


The Project will improve water supply and sanitation conditions in 40-50 new small towns with average populations of about 12,000 each. About 0.6 million people, of whom more than 34 percent live below the official poverty line, will benefit from the Project. The objectives are to (i) improve the health and quality of life of the people living in the project towns by constructing water supply, drainage and sanitation facilities, and providing health and hygiene education; (ii) support community participation by developing the institutional capacity of community-based water users and sanitation committees (WUSCs), and by requiring the beneficiaries to make contributions in cash or kind to cover partial project costs; and (iii) promote community-based water quality monitoring. The Project comprises four components: public awareness campaign and health and hygiene education (Part A) to be carried out through NGOs; water supply and sanitation facilities (Part B); technical support to WUSCs (Part C) by providing technical and financial training; and project implementation assistance (Part D).

Project Rationale and Linkage to Country/Regional Strategy

The population in the urban centers along the major national highways has been increasing rapidly in the past decade mainly as a result of rural migration. The inadequate water supply and sanitation systems in these emerging small towns have adversely affected the quality of life and health conditions of the people living in them, with women spending more than two hours a day fetching water during the dry season. The small towns serve as the economic links between the rural areas and the country's urban economy. They are the immediate markets, transportation depots, and processing centers of agricultural products in the districts. Their development will help absorb the rural migrants and reduce pressures on the urban environment, infrastructure, and employment in the urban centers of the Kathmandu valley. Improving water supply and sanitation in the small towns will contribute to poverty reduction in the urban areas.

Development Impact

Project Outcome

Description of Outcome
Progress Towards Outcome

Outputs and Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
Material Changes

Business Opportunities

Date of First Listing 2006 Nov 20
Consulting Services
Consulting services will be provided for feasibility studies, engineering designs, construction supervision, and project implementation support. About 233 person-months (5 person-months international and 228 person-months domestic) of consulting services from a team of international and domestic consultants with expertise in project implementation will be required to provide project implementation support to Project management office. Consulting services for feasibility studies, engineering designs, and construction supervision, estimated at 1,806 person-months, from domestic consulting firms will be required on town project basis and when a small town is selected. The services of qualified domestic NGOs will be required to conduct public awareness campaigns, and health and hygiene education programs.
Civil works and supplies for each town project will be packaged in one contract. Each contract costing more than $1 million will be awarded following international competitive bidding procedures. Contracts costing $1.0 million or less will follow local competitive bidding procedures acceptable to the ADB. Procurement of equipment and vehicles will follow ICB procedures for contracts valued more than $500,000, international shopping procedures for contracts valued at $500,000 or less. Minor office equipment and consumables costing less than $100,000 may be procured through direct purchase. Materials required for the construction of private latrines in a project town will be procured through direct negotiations from domestic markets following procedures acceptable to ADB. Minor works for the development and maintenance of Project facilities may be carried out by DWSS on a force account basis.
Procurement and Consulting Notices


Concept Clearance
Fact-finding 21 Feb 2000 to 07 Mar 2000
Management Review Meeting 29 Mar 2000
Approval 12 Sep 2000
Last Review Mission


Approval No. Approval Signing Effectivity Closing
Original Revised Actual
Loan 1755 12 Sep 2000 18 Dec 2000 16 Mar 2001 31 Dec 2006 30 Nov 2008 03 Dec 2009


Date Approval Number ADB (US$ thousand) Others (US$ thousand) Net Percentage
Cumulative Contract Awards
21 Oct 2014 Loan 1755 31,576 0 98.00%
Cumulative Disbursements
21 Oct 2014 Loan 1755 32,131 0 100.00%

Status of Covenants

Covenants are categorized under the following categories—audited accounts, safeguards, social, sector, financial, economic, and others. Covenant compliance is rated by category by applying the following criteria: (i) Satisfactory—all covenants in the category are being complied with, with a maximum of one exception allowed, (ii) Partly Satisfactory—a maximum of two covenants in the category are not being complied with, (iii) Unsatisfactory—three or more covenants in the category are not being complied with. As per the 2011 Public Communications Policy, covenant compliance ratings for Project Financial Statements apply only to projects whose invitation for negotiation falls after 2 April 2012.

Approval No. Category
Sector Social Financial Economic Others Safeguards Project Financial Statements
Loan 1755

Contacts and Update Details

Responsible ADB Officer Laxmi Sharma (
Responsible ADB Department South Asia Department
Responsible ADB Divisions Urban Development and Water Division, SARD
Executing Agencies Ministry of Physical Infrastructure and Transport
Mr. P. P. Kadaria


Project Website
List of Project Documents