Nepal: Supporting Capacity Development for Water Services Operations and Public-Private Partnership in Kathmandu Valley

Sovereign Project | 41654-012

Summary

The TA is an advisory technical assistance to assist the KUKL, KVWSMB and WSTFC in (i) starting up, initial capacity building and managing their operations and (ii) setting the adequate corporate structure and operational platforms for the operator company.

The impact is improved health and well-being of the inhabitants of the Kathmandu Valley through efficient and adequate provision of water supply and sanitation services. The outcome is to foster and develop the appropriate operational, managerial and institutional capacity and framework for sustainable urban water supply and sanitation services in the Kathmandu Valley.

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Project Name Supporting Capacity Development for Water Services Operations and Public-Private Partnership in Kathmandu Valley
Project Number 41654-012
Country Nepal
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7007-NEP: Supporting Capacity Development for Water Services Operations and Public-Private Partnership in Kathmandu Valley
Technical Assistance Special Fund US$ 2.50 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector Water and other urban infrastructure and services - Urban policy, institutional and capacity development
Gender Equity and Mainstreaming No gender elements
Description

The TA is an advisory technical assistance to assist the KUKL, KVWSMB and WSTFC in (i) starting up, initial capacity building and managing their operations and (ii) setting the adequate corporate structure and operational platforms for the operator company.

The impact is improved health and well-being of the inhabitants of the Kathmandu Valley through efficient and adequate provision of water supply and sanitation services. The outcome is to foster and develop the appropriate operational, managerial and institutional capacity and framework for sustainable urban water supply and sanitation services in the Kathmandu Valley.

Project Rationale and Linkage to Country/Regional Strategy

Rapid growth of the urban population coupled with inability to keep pace with the demand for water supply and sanitation infrastructure and services has led to a number of urban environmental concerns in the Kathmandu Valley. Chronic shortage of water supply and inadequate access to basic urban infrastructure, in particular water supply and sanitation services, are posing serious health risks to the urban population. The burdens associated with these environmental conditions are disproportionately borne by the poor, in particular the women and children.

The Government has demonstrated its commitment to all reform requirements, and has established the Kathmandu Valley Water Supply Management Board (KVWSMB, the asset owner and policy maker in the water services sector), Kathmandu Upatyaka Khanepani Limited (KUKL, an autonomous water utility operator formed under the Company Act) and the Water Supply Tariff Fixation Commission (WSTFC, an independent regulatory body for the water services sector) under the agreed institutional reforms program with the ADB and other development partners.

Impact

Improved health and well-being of the inhabitants of Kathmandu Valley through efficient and adequate

provision of water supply and sanitation services.

Project Outcome
Description of Outcome

Development of appropriate operational,managerial and institutional capacity and framework for the

sustenance of the urban water supply and sanitation services in Kathmandu Valley

Progress Toward Outcome The Government and EA have set up the institutional structures and are moving in the right direction to achieve the desired outcome. Appropriate operational, managerial and institutional capacity and framework for the sustenance of the urban water supply and sanitation services in Kathmandu Valley are being developed. The TA will be followed up by another project (Kathmandu Valley Water Supply Improvement Project) which will consolidate and further strengthen the institutions created earlier.
Implementation Progress
Description of Project Outputs

1. Start-up management support to KUKL including establishment of a functional PMU

2. Preparation and setting up of the operational, accounting, quality control, and management systems within KUKL for day-to-day service delivery and procurement of equipment and works.

3. Procurement of consultancies and civil works for the identified demonstration scheme and immediate rehabilitation and improvements works under the MWSP.

4. Preparation of various plans, strategies, operational procedures and guidelines, customer services and pro-poor services management strategies.

5. Assessment of organizational, capacity building, and tariff reforms required for the interim period for KUKL.

6. Implementation of immediate rehabilitation and improvement works.

7. Capacity building for the 3 new entities through training, workshops, and benchmark studies.

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

(i) PMU established. Start-up support completed.

(ii) Operational, accounting, quality control, and management systems have been developed.

(iii) Procurement packages have been developed and approved.

(iv) Initial plans, strategies, guidelines developed. A report on Development of an improved Waer and Wastewater Quality Sampling and Testing Program prepared.

(v) The assessment is a continuous process and will be further strengthened in the ensuing projects.

(vi) Contracts for immediate works awarded.

(vii) Capacity development program has been prepared and is being implemented in coordination with ADB and the Government. A series of technical trainings have been implemented for a total of 250 staff.

Geographical Location Kathmandu, Nepal
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The TA was designed with extensive participation of stakeholders, including beneficiaries, ward representatives, municipal officials and representatives, ministries concerned and MWSDB, the private sector, external funding agencies, NGOs, and consultants.
During Project Implementation The TA encouraged direct participation of beneficiaries of Kathmandu Valley in all activities of the TA. It also undertook consensus building at all levels on issues such as water services, environmental and social mitigation and employment.
Business Opportunities
Consulting Services The Consultants were engaged by ADB in accordance with its Guidelines on the Use of Consultants (2007).
Procurement Procurement of all goods and works to be financed out of proceeds of the TA funds was carried out in accordance with ADB's Procurement Guidelines (2007, as amended from time to time).
Responsible ADB Officer Manoj Sharma
Responsible ADB Department South Asia Department
Responsible ADB Division Urban Development and Water Division, SARD
Executing Agencies
Ministry of Physical Infrastructure and Transport D. BasnyatKathmandu, Nepal
Timetable
Concept Clearance 05 Oct 2007
Fact Finding 11 Mar 2007 to 25 Mar 2007
MRM -
Approval 10 Dec 2007
Last Review Mission -
PDS Creation Date 25 Oct 2007
Last PDS Update 25 Aug 2011

TA 7007-NEP

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
10 Dec 2007 11 Jan 2008 11 Jan 2008 30 Jun 2009 30 Jun 2011 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
2,500,000.00 0.00 500,000.00 0.00 0.00 0.00 3,000,000.00 10 Dec 2007 1,649,539.83

Safeguard Documents

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Evaluation Documents

See also: Independent Evaluation

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