1. Water supply infrastructure rehabilitated and expanded
1.1 The project is progressing smoothly with no major issues. The design, supervision and management consultant (DSC) was engaged in August 2012, and is effectively supporting Project Implementation Directorate's operations. The distribution network improvement (DNI) works are being implemented in an innovative manner with the objective of Non-Revenue Water (NRW) reduction on district metering area (DMA) approach rather than traditional pipe-laying contracts.
1.2 The three major civil works contracts for the distribution network improvement for efficient NRW management, amounting to approximately $59.75 million, were awarded from April to September 2013, and are in various stages of implementation.The drilling and development of tube-wells package was awarded in July 2013 and physical works are in progress. Target completions of these contracts are from April to November 2016.
1.3 The three major civil works contracts for the Laying of Bulk Distribution System and Construction of Service Reservoirs (BDS-SRT) works, amounting to approximately $62.67 million, were awarded from March to July 2014. Physical works are in progress. Target completions of these contracts are from March 2016 to February 2017.
1.4. Delivery of most of the minor packages have been completed while delivery of the few remaining packages are nearing completion.
2. Operating and financial systems improved, and capacities strengthened
2.1 The Community Awareness and Participation Consultant (CAPC) was mobilized in September 2012, and is supporting PID for implementation of gender equality and social inclusion (GESI) action plan, resettlement plan and grievance redress system, and various other community awareness campaigns and ensuring contractors' compliance to safeguards requirements. In addition to their other activities, CAPC is focusing on: (i) effective implementation of GESI plan, including support for formulation of KUKL's GESI guidelines and operationalization of GESI unit; (ii) preparation of information, education and communication (IEC) material including leaflets, brochures, and a quarterly newsletter to disseminate the good outcomes of project works a newsletter was recently launched; (iii) effective and useful programs in schools on issues detailed out in community awareness and participation plan (CAPP); (iv) a system to inform, in advance, the households and businesses likely to be affected by construction activities under the project; (v) training programs for construction workers on occupational health and safety (OHS); (vi) support to the ongoing clean the Bagmati River campaign; and (vii) operationalize the lessons from the performance assessment survey earlier conducted by CAPC.
2.2 The Business plan of the water utility in Kathmandu, KUKL, was approved in July 2012 and is currently being implemented. KUKL's audited financial statements (AFSs) of FY2007-08 and FY2008-09 were approved by its Board and general body meeting in September 2013. The audited financial statements of FY2009-10 and FY2010-11 have been approved by the Board and recently been approved by the general body. Approval of these two years AFSs is important to fulfil stipulated conditions and to ensure proper corporate governance of the utility.
2.3 PID is preparing procurement packages for the refurbishment of water treatment plants, and operationalization of asset management plan.
2.4 New water tariff structure for the Kathmandu Valley was approved by Water Supply Tariff Fixation commission (WSTFC) on 14 July 2013 with conditions to be fulfilled by KUKL for service improvement. This will help KUKL in improving its operations and service delivery to citizens.