1.1 Kathmandu Upatyaka Khanepani Limited (KUKL) recruited capacity building and public-private partnership support team (CBP team) in November 2010. The CBP team completed its work on June 2014. CBP team supported KUKL to plan and implement, among other things, the following:
(i) Business plan of KUKL; (ii) Non-Revenue Water (NRW) management and Asset management plan; (ii) Revenue improvement plan; (iv) Water connection policy; (v) Rationalization of tariffs; (vi) Trainings and capacity building; (vii) Institutional restructuring; and (viii) Financial management. KUKL staff shall be assigned the responsibilities of the works, including implementation of the reports, that were prepared by the CBP team.
1.2 The Business plan and the new water connection policy were approved in 2012 and are currently being implemented by KUKL. Project Implementation Directorate (PID) is preparing procurement packages for the refurbishment of water treatment plants, and operationalization of asset management plan. The Revenue Improvement Plan has been finalized and will soon be implemented.
1.3 KUKL submitted to Water Supply Tariff Fixation Commission (WSTFC) a new proposal for increase in tariff, which was approved by 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.
1.4 KUKL, with support from PID, WSTFC, Kathmandu Valley Water Supply Management Board (KVWSMB), Ministry of Urban Development (MoUD) and Ministry of Finance (MoF), is implementing a comprehensive action plan for operational and financial improvement. This action plan is expected to address much needed institutional reforms, capacity building, and improvements on financial, human resources, and operations management of KUKL.
2. KVWSMB has prepared a draft groundwater management and regulation policy, which was approved by Ministry of Physical Planning and Works and National Planning Commission. The policy has been approved by the Cabinet legislative subcommittee. MoUD is working to operationalize the policy.
3. The contract of computerized billing and accounting system was awarded and the service provider was mobilized in January 2011, however, the progress has not been satisfactory due to contractual problems between the contractor and KUKL. Efforts are being made to resolve the problems and complete this important activity. Loan 2059 is closing by December 2014 and it would not be possible to finance this contract using the loan funds after the loan closing date.