Nepal: Third Small Towns Water Supply and Sanitation Sector Project

Sovereign Project | 35173-013

Summary

The project will support the Government of Nepal in providing water supply and sanitation (WSS) services to selected small towns in Nepal. In line with the government''s 15-Year Development Plan for Water Supply and Sanitation in Small Towns (2009), the Asian Development Bank (ADB) has supported the government in providing WSS services in 50 of the 265 small towns in Nepal through two earlier projects. Drawing on experience and lessons from the earlier interventions, this project will fund physical investments in WSS infrastructure in selected small towns (project towns) and nonphysical investments in the strengthening of sector policy, regulatory and institutional capacity, service delivery, and project management.

Latest Project Documents

Consulting Notices

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Procurement Notices

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Procurement Documents


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Project Name Third Small Towns Water Supply and Sanitation Sector Project
Project Number 35173-013
Country Nepal
Project Status Approved
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Grant 0405-NEP: Third Small Towns Water Supply and Sanitation Sector Project
Bill and Melinda Gates Foundation US$ 1.30 million
Loan 3157-NEP: Third Small Towns Water Supply and Sanitation Sector Project
Asian Development Fund US$ 60.00 million
Loan: Third Small Towns Water Supply and Sanitation Sector Project
OPEC Fund for International Development US$ 20.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Sector / Subsector Water and other urban infrastructure and services - Urban policy, institutional and capacity development - Urban sanitation - Urban water supply
Gender Equity and Mainstreaming Gender equity
Description The project will support the Government of Nepal in providing water supply and sanitation (WSS) services to selected small towns in Nepal. In line with the government''s 15-Year Development Plan for Water Supply and Sanitation in Small Towns (2009), the Asian Development Bank (ADB) has supported the government in providing WSS services in 50 of the 265 small towns in Nepal through two earlier projects. Drawing on experience and lessons from the earlier interventions, this project will fund physical investments in WSS infrastructure in selected small towns (project towns) and nonphysical investments in the strengthening of sector policy, regulatory and institutional capacity, service delivery, and project management.
Project Rationale and Linkage to Country/Regional Strategy

Nepal is experiencing rapid urbanization. The urban population, estimated at over 7.5 million in 2011, is projected to increase by 32% by 2027. While urban areas are engines of economic growth, accounting for 65% of gross domestic product, unmanaged urban growth poses environmental hazards and can lead to rising urban poverty if economic opportunities and provision of urban infrastructure and municipal services do not keep pace with the growing urban population. This can be seen in the rising incidence of poverty in urban areas of the country from 9.2% in 2004 to 15.5% in 2011 and the challenge to meet growing demand for municipal services.

In 2011, the share of the country's population that used an improved drinking-water source was 85% (87% urban, 84% rural), while the share that used an improved sanitation facility was 62% (91% urban, 55% rural). However, the number of people that are supplied with piped water still account for less than 20% of the population, and availability of that service is intermittent in many areas and most systems need repair. In unserved areas, water sources are either natural springs, spouts, or shallow groundwater wells and hand pumps. In small towns, according to Water Aid estimates in 2010, only 5% of the population had access to piped water, and sanitation coverage was 36%. Open defecation contaminates water sources and leads to serious public health risks. Each year, some 13,000 children under 5 years of age die of diarrheal diseases.

Impact Improved living conditions in project towns.
Project Outcome
Description of Outcome Inclusive, genderfocused, and sustainable WSS service delivery in project towns.
Progress Toward Outcome Project is at an early stage and consultant recruitment and preparation of bidding documents are ongoing.
Implementation Progress
Description of Project Outputs

1. Improved WSS infrastructure.

2. Strengthened sector policy, regulatory and institutional capacity, and service delivery.

3. Improved project implementation.

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

Contracts have been awarded for the construction of water supply and sanitation in two towns, and the procurement process is underway for three additional towns.

Recruitment of consultants for 5 packages is currently on going: WRDSMC, ERDSMC, DRTAC, ISSAUC and an Architectural Firm.

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 environmental safeguards. Three draft initial environmental examinations (IEEs) with environmental management plans (EMPs) have been prepared for the sample subprojects in accordance with ADB's Safeguard Policy Statement (2009). Once approved, they will be publicly disclosed. They will be further updated during the detailed engineering design for each subproject and included in the tender documents. The draft IEEs for the sample subprojects concluded that no significant negative impacts are to be expected and that the project will yield a substantial net environmental benefit. Any impacts during construction and operation will be avoided or mitigated through measures outlined in the EMP, which will form part of all bidding documents. Measures used in the sample subprojects include (i) application of sufficient buffer zones between WSS facilities, and use of liners to prevent contamination of water sources; and (ii) locating subprojects outside sensitive areas. A draft environmental assessment and review framework is prepared to guide environmental assessment of future subprojects. During implementation, loan consultants will support the environmental officers of the project management office and its regional counterparts, and field-based EMP Monitors, in managing environmental impacts. Environmental reporting to ADB will be semiannual.
Involuntary Resettlement The project is categorized as B for involuntary resettlement. No permanent land acquisition or physical displacement was found to be required for the sample subprojects in Chandrauta, Charali, and Mahendranagar. The land required for the facilities is mostly provided through negotiated settlement, or is a donation by the community organizations or private landowners, or is government land. In Mahendranagar, one household headed by a woman will lose access to the land to construct subproject facilities. A draft resettlement plan is prepared to ensure restoration of the affected family's livelihood. Two due diligence reports are prepared for sample subprojects in Chandrauta and Charali to ensure that land donations comply with ADB's Safeguard Policy Statement (2009) principles. No temporary impacts are expected from the construction of water supply pipes. The draft resettlement plans will be updated after detailed engineering design. A resettlement framework is prepared for the project to provide guidance in preparing future subprojects or in the event of unidentified involuntary resettlement impacts occurring during project implementation. The project is categorized as C for impacts on indigenous peoples based on the review of the sample subprojects.
Indigenous Peoples An indigenous peoples planning framework (IPPF) is prepared to provide guidance in the remaining project towns, and to ensure that livelihoods, culture, dignity, and territories are not compromised by project activities. Indigenous people plan (IPP) is prepared for the subproject following the IPPF when the impacts are significant or are not related to involuntary resettlement, otherwise specific actions for the affected indigenous community or people can be incorporated into the resettlement plan.
Stakeholder Communication, Participation, and Consultation
During Project Design

Stakeholder participation and communication plan and strategy will be formulated at the initial design stage. The national social safeguard and resettlement specialists under the PPTA will be based in the field office for the sample subproject towns to ensure timely attention to issues concerning participation. For the remaining subproject towns, loan consultant will ensure the compliance with the stakeholder participation and communication plan and strategy by providing quarterly updates to ADB in the progress report.

The main stakeholders of the project are small town residents, local business communities, users' committees, government officials, civil society organizations and development partners. The project design is finalized through a process that involves continuous consultation between government and development partners, socio-economic surveys for the residents and business communities and communications with users' committees to determine feasibility of project design.

The project is to provide water supply services in the subproject area. Therefore, determination of the subproject area is important as not to exclude the poor, women-headed and minority households from access to improved services. Consultation with the poor and excluded can be engaged through focus group discussion, interviews and local meetings and can be separately arranged for separate focus groups to maintain appropriate level of sensitivity.

During Project Implementation The project is in line with ADB's water and urban operational plans, and its 2013-2017 country partnership strategy for Nepal, which states that ADB will support (i) improvements in inclusive access to and service levels of WSS in small towns, and (ii) institutional strengthening and capacity building of local governments, service providers, and the Town Development Fund.
Business Opportunities
Consulting Services All consultants will be recruited according to ADB's Guidelines on the Use of Consultants.
Procurement All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines. ADBs Procurement guidelines will also apply to expenditure incurred under OPEC Fund for International Development (OFID) loan. International competitive bidding (ICB) procedures will be used for any civil works contract estimated to cost more than $1 million, and any goods contract estimated to cost more than $500,000, National competitive bidding (NCB) procedures will be used for any civil works contract estimated to cost $1 million or less and any goods contract estimated to cost $500,000 or less. Shopping will be used for any civil works or goods contract estimated to cost less than $100,000. Community participation will be used for civil works and goods contracts estimated to cost less than $10,000. Community participation will be used for very small contracts to be carried out by the local community and contractors or water users' association or local bodies for works such as fencing, preparation of drying beds for sludge, etc. As ADB is administering cofinancing resources for operations financed by the ADF resources, universal procurement will apply to all procurement packages to be financed under this Project.
Responsible ADB Officer Neeta Pokhrel
Responsible ADB Department South Asia Department
Responsible ADB Division Urban Development and Water Division, SARD
Executing Agencies
Ministry of Urban DevelopmentSinghadurbar, Kathmandu, Nepal
Timetable
Concept Clearance 05 Apr 2013
Fact Finding 31 Mar 2014 to 11 Apr 2014
MRM 30 Jun 2014
Approval 19 Sep 2014
Last Review Mission -
Last PDS Update 18 Mar 2015

Grant 0405-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Sep 2014 25 Nov 2014 23 Feb 2015 30 Jun 2019 - -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1.30 Cumulative Contract Awards
ADB 0.00 19 Sep 2014 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 1.30 19 Sep 2014 0.00 0.00 0%

Loan

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 47.70 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 27.70 Cumulative Disbursements
Cofinancing 20.00 - 0.00 0.00 %

Loan 3157-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Sep 2014 25 Nov 2014 23 Feb 2015 31 Jul 2021 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 87.70 Cumulative Contract Awards
ADB 60.00 19 Sep 2014 12.05 0.00 22%
Counterpart 27.70 Cumulative Disbursements
Cofinancing 0.00 19 Sep 2014 3.00 0.00 5%

Evaluation Documents

See also: Independent Evaluation

No documents found.


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