|Source of Funding / Amount
|TA 4893-NEP: Kathmandu Valley Water Distribution, Sewerage, and Urban Development|
|Technical Assistance Special Fund
|Cooperation Fund for the Water Sector
|TA 4893-NEP: Kathmandu Valley Water Distribution, Sewerage and Urban Development Project (Supplementary)|
|Public-Private Infrastructure Advisory Facility
Given the increasing urban population, basic urban services needs is also increasing at the rapid pace in the Kathmandu Valley. Considering this rapid urbanization, it is essential that the urban areas in Nepal prepare a long term strategy and investment/financing plan to meet the required urban basic services needs including water supply, wastewater management, urban transport, and solid waste management services. Under the ongoing ADB's Melamchi Water Supply Project (MWSP) and Kathmandu Valley Water Services Sector Development Program (KVWSSDP), water supply and wastewater management services in the Kathmandu Valley are being improved. In particular, the KVWSSDP supports institutional reforms in the water supply and sanitation (WSS) sector in the Kathmandu Valley by establishing the Water Utility Operator (WUO) which will be managed by a competitively selected private sector form through a performance based management contract. The major water source augmentation works for the Kathmandu Valley which aim to divert water from the Melamchi Valley are being undertaken under the MWSP. However, since the capital costs for the water source augmentation is substantial, the water distribution networks and the wastewater management works are to be taken up in the phases. Finally, solid waste management is becoming a serous problem in the Kathmandu Valley as the municipalities could not find a long-term solution for solid waste disposal, resorting to use of several temporary sites in the face of the residents' protests against nearby disposal sites.
The primary objective of the proposed PPTA is to prepare a loan project to improve the basic urban services in the Kathmandu Valley including water supply, wastewater management, solid waste management, drainage and urban transport, backed by a long-term urban strategy and, in the WSS sector, a capital investment and asset management plan (CIAMP) for the WUO. Particular emphasis will be put on the coordination among parties carrying out various urban infrastructure development activities and/or providing various urban services, regarding excavation, construction safety, environmental impact mitigation, traffic management/temporary detouring, and road resurfacing. The TA outputs consist of (i) a project preparation report for the ensuing loan, including design and monitoring framework, components, implementation arrangements, cost estimates and financing plan, and comprehensive feasibility studies in conformity with ADB requirements; (ii) an implementation manual for a smooth and efficient execution of the DNI works, including (a) a traffic, environmental and safety management strategy such as temporary detouring arrangements during excavation and (b) an effective coordination mechanism with operators of other underground utilities, municipal public works departments and local police; (iii) initial 5-year rolling CIAMP for the WUO; and (iv) an urban sector review and long-term urban development strategy based on growth scenarios assessment in the Kathmandu Valley and other emerging urban areas in Nepal.
|Project Rationale and Linkage to Country/Regional Strategy
||Rapid growth of the urban population, coupled with the Government's inability to meet the increasing demand for urban services, has led to a number of urban environmental concerns in the Kathmandu Valley, and the burdens associated with poor environmental conditions are disproportionately borne by the poor, especially women and children. Inadequate access to basic urban infrastructure and services is posing serious health risks for the urban population. In addition, haphazard urban sprawl is resulting in inefficient land use and mahy unserviced plots. Physical investment works to be commissioned under the Melamchi Water Supply Project (Loan 1820-NEP) are expected to relieve pressure on the strained urban infrastructure, but additional financial resources will still be needed to meet the growing deman for urban services in the Kathmandu Valley while keeping the existing urban infrastructure services functioning.