Nepal: Urban and Environmental Improvement

Sovereign Project | 32239-013 Status: Closed

Latest Project Documents

Project Results



households with new or improved water supply



households with new or improved sanitation



kilometers of water supply pipes installed or upgraded



kilometers of road that have been built or upgraded



cubic million/day of waste water treatment capacity added or improved



hectares of land improved through irrigation, drainage and/or flood management

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Project Name Urban and Environmental Improvement
Project Number 32239-013
Country Nepal
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 1966-NEP: Urban and Environmental Improvement
Asian Development Fund US$ 30.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Sector / Subsector

Finance - Infrastructure finance and investment funds

Health - Health sector development and reform

Transport - Road transport (non-urban)

Water and other urban infrastructure and services - Other urban services - Urban flood protection - Urban policy, institutional and capacity development - Urban sewerage - Urban water supply

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The Project aims to bring about sustainable urban development in the nine urban areas outside Kathmandu Valley (Bharatpur, Hetauda, Banepa, Dhukilhel, Panauti, Bidur, Ratnanagar, Kamalamai and Kathmandu) by improving essential urban and environmental infrastructure and services, and strengthening the relevant institutions. As a result of the Project, personal hygiene, environmental sanitation, and overall quality of life are expected to improve in the nine areas. The Project has five main components: (i) municipal institutional strengthening and revenue mobilization, (ii) provision of urban and environmental infrastructure, (iii) provision of supplementary urban facilities, (iv) community development, and (v) project implementation assistance.
Project Rationale and Linkage to Country/Regional Strategy The Project intends to support the Government's priorities in (i) provision of urban and environmental infrastructure and services; (ii) poverty reduction; (iii) decentralization of authority; and (iv) strengthening of municipal institutional capacities.
Impact Self-sustainable urban development, compatible with environmental improvement, in all project towns (Banepa, Dhulikhel, Panauti, Bharatpur, Ratnanagar, Hetauda, Bidur, Kamalamai, and Kathmandu).
Project Outcome
Description of Outcome Self-sustainable urban development, compatible with environmental improvement, in all project towns.
Progress Toward Outcome

Construction of sewer and RBTPs completed in 6 municipalities and a total quantity of 6,240.7 m3 wastewater per day is expected to be treated.

13.69 kms of road upgraded.

Water supply schemes completed in Bharatpur and Hetauda muncipalities.

3 subprojects works needs to be completed before the loan closing date of 31 March 2011.

Implementation Progress
Description of Project Outputs

Component 1: Increase urban management and revenue generating

Component 2: Improve and expand urban and environmental infrastructure

Component 3:

(a) Improve small urban community facilities (public toilets, places of worship, sports ground, small public creation parks, etc.)

(b) Increase revenue generating urban facilities (bus parks, market places, recreation facilities, etc)

Component 4: Increase health awareness in the communities through community development program

Status of Implementation Progress (Outputs, Activities, and Issues)

Component 1: Base map completed in all eight municipalities. Trainings on human resources, organization development and revenue mobilization and financial management completed in all eight municipalities.

Component 2: Construction of sewerage system and RBTP completed in 6 municipalities. The physical progress of sewer and RBTP in Ratnanagar is 90% and 68%.

Water supply schemes completed in Bharatpur and Hetauda municipalities.

Land development through land pooling completed in Kamalamai, Bharatpur and Banepa.

13.69 kms of road upgraded in Dhulikhel, Ratnanagar, Banepa and Bishnumati Link Road.

River embankment works are 100% completed in Bharatpur,Hetauda and Kamalamai.

Component 3: Construction of public toilets in Dhulikhel, Hetauda and Bidur are completed. 100% work completion of Triveni Ghat Improvement in Panauti, Layaku Area Improvement Works in Banepa, Public Park in Kamalamai and Bus Bays in Ratnanagar and recreation park in Hetauda.

Progress of bus park improvement in Bharatpur and Hetauda, Banepa, Bidur, and Panauti; vegetable market at Lion's Chowk (wholesale) and at Balkumari (retail) in Bharatpur; meat market and vegetable market in Hetauda and vegetable market in Ratnanagar; and mini market in Kamalamai is 100% completed.

Component 4: Training on leadership, awareness, health, urban planning, community development, women empowerment, waste management for a total 2,328 (1,006 males and 1,322 females) municipality staff, local leaders, users' committee members, CBOs, TOLs,, motivators/health volunteers, clubs, organizations , mothers' groups including 4 dalits and 32 janajatis;

Training on income generation for a total 928 (370 males and 558 females) for poor, disadvantaged, dalit, janajati and backward groups including 62 dalits, 61 janajatis, 17 disabled, 122 poor;

Training on health education for a total 294 school teachers (147 males and 147 females) including 5 dalits and 30 janajatis.

Construction of i) 38 community toilets benefitting 2,612 people (1,231 males and 1,381 females) including 758 people (374 males and 384 females) from poor, dalit and marginalized groups ii) 77 school toilets benefitting 26,725 students (13,120 boys and 13,605 girls) iii) water supply at 11 schools benefitting 3,612 students (1,810 boys and 1,802 girls) and 10 communities benefitting 1,302 people (590 males and 712 females) which includes 115 Janajati and 35 Dalits iv) 13 public stand posts benefitting 904 people (445 males and 459 females); distribution of health/sanitary tools to 38 schools and 35 communities; and improvement/rehabilitation works of drainage, pavement, pond, kuwa, pati, stairs etc. in public places .

Geographical Location Banepa, Dhulikhel, Panauti, Bharatpur, Ratnanagar, Hetauda, Bidur, Kamalamai, and Kathmandu
Safeguard Categories
Environment B
Involuntary Resettlement
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Socioeconomic surveys and workshops conducted throughout the PPTA implementation.
During Project Implementation The Project has ensured strong community participation during the design phase.
Business Opportunities
Consulting Services All consulting services to be financed under the Project will be selected and engaged following the ADB's Guidelines on the Use of Consultants, using QCBS method, and other arrangements satisfactory to ADB for engaging domestic consultants. A total input of 29 person-months of international and 747 person-months of domestic consulting is planned. For consulting services, 227 person months (203 person-months domestic and 24 person-months international) will be recruited from a consulting firm, which can be partnered with international/domestic consultants, by the Project Coordination Unit for assistance in project management. The consulting inputs will cover a wide range of expertise and will result in substantial strengthening of administrative and management capacity and skills of the EAs and IAs. The consulting services are designed to support the project as well as build the longer term capacity of the agencies and institutions responsible for planning and delivering urban services. They will cover broad areas of expertise including (i) project implementation support and project performance monitoring; (ii) topographic surveys, mapping, geotechnical investigations, and water testing; (iii) engineering design and construction supervision; (iv) institutional reforms in the water supply sector; (v) training; and (vi) community development. Other components that will hire consulting services are as follows: (i) Municipal and Regional Water Supply Systems (5 person-month international, 20 person-month domestic), (ii) Design and Construction Supervision in 9 target areas (360 person-month, domestic). The Expressions of Interest should be submitted by 23 December 2003.
Procurement All procurement under the Project will be carried out in accordance with ADB's Guidelines for Procurement. Contracts for civil works estimated to cost $1.0 million equivalent or more will be carried out using international competitive bidding (ICB) procedures, while those estimated to cost less than $1.0 million equivalent will be carried out under local competitive bidding (LCB) procedures. Goods to be procured will preferably be grouped into packages of $500,000 equivalent or more to be suitable for ICB procedures. Contracts for miscellaneous minor goods estimated to cost less than $500,000 equivalent will be procured through international shopping (IS) procedures. Minor items estimated to cost leas than $100,000 equivalent per contract may be purchased directly, following proper procedures.
Responsible ADB Officer Laxmi Sharma
Responsible ADB Department South Asia Department
Responsible ADB Division Nepal Resident Mission
Executing Agencies
Ministry of Physical Infrastructure and Transport
Mr. Deep Basnyat
Ministry of Physical Planning and Works, Singhadurbar
Concept Clearance 08 Mar 2001
Fact Finding 14 Jun 2002 to 05 Jul 2002
MRM 14 Aug 2002
Approval 10 Dec 2002
Last Review Mission -
PDS Creation Date 28 Nov 2006
Last PDS Update 18 Mar 2011

Loan 1966-NEP

Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Dec 2002 20 Jun 2003 02 Oct 2003 31 Mar 2010 31 Mar 2011 14 Dec 2011
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 30.00 Cumulative Contract Awards
ADB 30.00 10 Dec 2002 25.20 0.00 98%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 10 Dec 2002 25.63 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Satisfactory
Title Document Type Document Date
Urban and Environmental Improvement Project Project/Program Completion Reports Nov 2012
Urban and Environmental Improvement Project Initial Poverty and Social Analysis Dec 2007
Urban and Environmental Improvement Project Reports and Recommendations of the President Nov 2002

Safeguard Documents

See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Nepal: Urban and Environmental Improvement Project Validations of Project Completion Reports Dec 2014

Related Publications

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