Nepal: Kathmandu Valley Water Supply Improvement Project

Sovereign Project | 34304-043 Status: Active

Summary

Latest Project Documents

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Procurement Documents


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Project Name Kathmandu Valley Water Supply Improvement Project
Project Number 34304-043
Country Nepal
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 2776-NEP: Kathmandu Valley Water Supply Improvement Project (formerly Kathmandu Valley Water Distribution, Sewerage, and Urban Development)
Asian Development Fund US$ 80.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Water and other urban infrastructure and services - Urban policy, institutional and capacity development - Urban water supply

Gender Equity and Mainstreaming Effective gender mainstreaming
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome Execution of civil works is still ongoing and the target outcome for water supply infrastructures has not yet been achieved.
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

1. Water supply infrastructure rehabilitated and expanded

1.1 The project is progressing. 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. Supply and delivery of various equipment (spare pipes, fittings & appurtenances; jeeps, cars, pickups, motorcycles) have been completed.

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 was 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) operationalizing 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) from of FY 2007-08 to FY 2013-2014 have all been submitted.

2.3 PID is improving GIS network modeling systems and preparing procurement packages for the refurbishment of water treatment plants.

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.

Geographical Location

Safeguard Categories

Environment B
Involuntary Resettlement B
Indigenous Peoples C

Summary of Environmental and Social Aspects

Environmental Aspects The project is classified as category B for environment. An initial environmental examination (IEE) and environmental management plan including a grievance redress mechanism were prepared in accordance with ADB's Safeguard Policy Statement. The IEE concludes that no significant adverse impacts are anticipated and that the net environmental benefits will be positive and large with fewer waterborne diseases and better public health. To mitigate adverse impacts of increased generation of wastewater, the Kathmandu Urban Environment Improvement Project has been proposed to focus on rehabilitating and expanding the sewerage network and wastewater treatment. An environmental assessment and review framework was prepared to address small components to be defined through detailed design. Additional oversight and mitigation measures will be taken for pipe-laying works along roads passing through heritage areas including permission from the Department of Archaeology prior to construction.
Involuntary Resettlement The project is classified as category B for involuntary resettlement in accordance with ADB's Safeguard Policy Statement (2009). The project does not require any land acquisition. The impacts are limited to temporary disruption of business activities, and temporary shifting of vendors and hawkers during construction works within the right-of-way for the water pipeline works. A resettlement plan, including the grievance redress mechanism, was prepared in accordance with ADB's Safeguard Policy Statement. A resettlement framework was prepared to address small components to be defined through detailed design. Temporary impacts will be limited and compensation for lost income will be provided to those affected as per the resettlement plan.
Indigenous Peoples No impacts to IPs are anticipated as the project focuses on rehabilitation of the existing water supply network in urban areas. Water will be universally supplied to all households within the project area, and meaningful, widespread consultations will continue within all project area communities.
Stakeholder Communication, Participation, and Consultation
During Project Design Adequate consultations were carried out with all the important stakeholders during the project preparatory technical assistance (PPTA), fact-finding and post fact-finding missions. The objective of the consultations was to make citizens of Kathmandu Valley fully aware of the intent, design, schedule, impacts, employment opportunities, and overall benefits of the project, with particular attention given to the poor and the socially-excluded sections of the population.
During Project Implementation A community awareness and participation plan (CAPP) has been prepared to involve key stakeholders for widespread, ongoing, and meaningful participation in project activities. This is especially relevant in a high density urban setting like Kathmandu Valley where disturbances related to construction activities are inevitable. Information disclosure and public awareness are essential for maintaining public support and mitigating grievances during the construction period. A gender equality and social inclusion (GESI) action plan was prepared with clear targets, responsibilities, and resource allocation. The objective of the CAPP and GESI is to make citizens of Kathmandu Valley fully aware of the intent, design, schedule, impacts, employment opportunities, and overall benefits of the project, with particular attention given to the poor and the socially-excluded sections of the population. At the same time, full involvement of citizens can only ensure realization of benefits of many critical activities of the project such as reduction of nonrevenue water (NRW) and improvement of water supply services to citizens including introduction of 24-hour supply. The project activities require coordinated efforts among the executing and implementing agencies and public, private, and community stakeholders. A Community Awareness and Participation Consultant (CAPC) will be recruited to help the Project Implementation Directorate (PID) ensure meaningful and ongoing consultations and public awareness during project implementation and specifically to implement CAPP and GESI action plans.

Business Opportunities

Consulting Services

Design, Supervision, and Management Consultant (QCBS) - 620 person-months - $4.33 million in total

Community Awareness and Participation Consultant (QCBS) - 301 person-months - $0.88 million in total

Procurement

International Competitive Bidding - 5 contracts (works); 3 contracts (goods) - Above $1,000,000 for works, above $500,00 for goods

National Competitive Bidding - Multiple small works and goods contracts - $1,000,000 or less for works, $500,000 or less for goods

Shopping - Minor works and goods packages (estimated six) - Less than $100,000

Responsible Staff

Responsible ADB Officer Vivian Castro-Wooldridge
Responsible ADB Department South Asia Department
Responsible ADB Division Urban Development and Water Division, SARD
Executing Agencies
Ministry of Water Supply and Sanitation
ACHARYASP@HOTMAIL.COM
Singha Durbar

Timetable

Concept Clearance 11 Mar 2011
Fact Finding 14 Mar 2011 to 28 Mar 2011
MRM 07 Jul 2011
Approval -
Last Review Mission -
Last PDS Update 30 Mar 2016

Loan 2776-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
16 Sep 2011 10 Nov 2011 07 Feb 2012 30 Jun 2017 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 130.00 Cumulative Contract Awards
ADB 80.00 16 Sep 2011 61.92 0.00 85%
Counterpart 50.00 Cumulative Disbursements
Cofinancing 0.00 16 Sep 2011 40.27 0.00 56%
Title Document Type Document Date
Loan Agreement (Special Operations) for Loan 3255-NEP: Kathmandu Valley Water Supply Improvement Project - Additional Financing Loan Agreement (Special Operations) Dec 2015
Project Agreement for Loan 3255-NEP: Kathmandu Valley Water Supply Improvement Project - Additional Financing Project/Program Agreement Dec 2015
Kathmandu Valley Water Supply Improvement Project: Project Data Sheet (Nepali Translation) Translated PDS Jul 2014
Kathmandu Valley Water Supply Improvement Project Procurement Plans Jul 2012
Project Agreement for Kathmandu Valley Water Supply Improvement Project between Asian Development Bank and Kathmandu Valley Water Supply Management Board and Kathmandu Upatyaka Khanepani Limited dated 10 November 2011 Project/Program Agreement Nov 2011
Loan Agreement (Special Operations) for Kathmandu Valley Water Supply Improvement Project between Nepal and Asian Development Bank dated 10 November 2011 Loan Agreement (Special Operations) Nov 2011
Kathmandu Valley Water Supply Improvement Project: Gender Equality and Social Inclusion Action Plan Gender Action Plans Aug 2011
Kathmandu Valley Water Supply Improvement Project Project/Program Administration Manual Aug 2011
Kathmandu Valley Water Supply Improvement Project Reports and Recommendations of the President Aug 2011
Kathmandu Valley Water Supply Improvement Project Summary Poverty Reduction and Social Strategies Aug 2011
Kathmandu Valley Water Supply Improvement Project Design and Monitoring Frameworks Aug 2011
Kathmandu Valley Water Supply and Wastewater System Improvement Project Initial Poverty and Social Analysis Apr 2011

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.

Title Document Type Document Date
Kathmandu Valley Water Supply Improvement Project: Environmental and Social Monitoring Report (July-December 2015) Environmental and Social Monitoring Reports Jan 2016
Kathmandu Valley Water Supply Improvement Project: Environmental Monitoring Report (July-December 2015) Environmental Monitoring Reports Jan 2016
Kathmandu Valley Water Supply Improvement Project: Social Monitoring Report (July-December 2015) Social Monitoring Reports Jan 2016
Kathmandu Valley Water Supply Improvement Project: Community Awareness and Participation Consultant Report (July-December 2015) Social Monitoring Reports Jan 2016
Kathmandu Valley Water Supply Improvement Project: Distribution Network Improvement for Efficient NRW Management (Package II) Resettlement Plans Jun 2014
Kathmandu Valley Water Supply Improvement Project: Block Distribution System and Service Reservoir (Package II) Resettlement Plan Due Diligence Report Safeguards Due Diligence Reports Jun 2014
Kathmandu Valley Water Supply Improvement Project: Distribution Network Improvement for Efficient NRW Management Resettlement Plans Jun 2014
Kathmandu Valley Water Supply Improvement Project: Block Distribution System and Service Reservoir (Package I) Resettlement Plan Due Diligence Report Safeguards Due Diligence Reports Apr 2014
Kathmandu Valley Water Supply Improvement Project: Environmental and Social Monitoring Report (July-December 2013) Environmental and Social Monitoring Reports Mar 2014
Kathmandu Valley Water Supply Improvement Project Resettlement Plans Jan 2014
Melamchi Water Supply Project - Subproject 2 and Kathmandu Valley Water Supply Improvement Project: Environmental and Social Monitoring Report (January-June 2013) Environmental and Social Monitoring Reports Jul 2013
Kathmandu Valley Water Supply Improvement Project Initial Environmental Examination Jan 2013
Kathmandu Valley Water Supply Improvement Project: Resettlement Plan (as of Board approval) Resettlement Plans Jul 2011
Kathmandu Valley Water Supply Improvement Project: Resettlement Framework (as of Board approval) Resettlement Frameworks Jul 2011
Kathmandu Valley Water Supply Improvement Project Resettlement Plans Jul 2011
Kathmandu Valley Water Supply and Wastewater System Improvement Project Environmental Assessment and Review Framework May 2011
Kathmandu Valley Water Supply and Wastewater System Improvement Project Resettlement Frameworks May 2011
Kathmandu Valley Water Supply and Wastewater System Improvement Project Resettlement Plans May 2011

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications


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