Nepal: Kathmandu Valley Water Distribution, Sewerage, and Urban Development

Sovereign Project | 34304-012

Summary

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.

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Project Name Kathmandu Valley Water Distribution, Sewerage, and Urban Development
Project Number 34304-012
Country Nepal
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 4893-NEP: Kathmandu Valley Water Distribution, Sewerage, and Urban Development
Technical Assistance Special Fund US$ 400,000.00
Cooperation Fund for the Water Sector US$ 160,000.00
TA 4893-NEP: Kathmandu Valley Water Distribution, Sewerage and Urban Development Project (Supplementary)
Public-Private Infrastructure Advisory Facility US$ 273,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Water and other urban infrastructure and services - Urban sewerage - Urban water supply

Gender Equity and Mainstreaming No gender elements
Description

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.
Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Kathmandu Valley
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services The PPTA will be implemented over a period of about one year commencing about September 2005. The PPTA will require approximately 36 person-months of international and 100 person-months of domestic consultants' input.
Responsible ADB Officer Shigehiko Muramoto
Responsible ADB Department South Asia Department
Responsible ADB Division Urban Development and Water Division, SARD
Executing Agencies
Ministry of Physical Infrastructure and TransportMr. D. BasnyatKathmandu, Nepal
Timetable
Concept Clearance 01 Sep 2004
Fact Finding 27 Oct 2004 to 11 Nov 2004
MRM -
Approval 13 Dec 2006
Last Review Mission -
PDS Creation Date 16 Mar 2006
Last PDS Update 29 Oct 2010

TA 4893-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Dec 2006 15 May 2007 15 May 2007 31 Mar 2008 30 Sep 2010 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
400,000.00 433,000.00 200,000.00 0.00 0.00 0.00 1,033,000.00 13 Dec 2006 972,832.11
Title Document Type Document Date
Kathmandu Valley Water Distribution Consultants' Reports Dec 2009
Kathmandu Valley Water Distribution Consultants' Reports Dec 2006
Kathmandu Valley Water Distribution Consultants' Reports Dec 2006
Kathmandu Valley Water Distribution Consultants' Reports Dec 2006
Preparing the Kathmandu Valley Water Distribution Technical Assistance Reports Dec 2006
Kathmandu Valley Water Distribution Consultants' Reports Dec 2006
Kathmandu Valley Water Distribution Consultants' Reports Dec 2006

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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