The main objectives of the Project are to alleviate the chronic water shortage in Kathmandu Valley on a sustainable, long-term basis, and to improve the health and well-being of its inhabitants. The Project also seeks to develop a comprehensive institutional framework for urban water management within the valley. The Project comprises (i) infrastructure development; (ii) social and environmental support; (iii) institutional reforms; and (iv) project implementation support.
| Project Name | Melamchi Water Supply Project | ||||||||||||||||||||||
| Project Number | 31624-023 | ||||||||||||||||||||||
| Country | Nepal |
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| Project Status | Active | ||||||||||||||||||||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Environmentally sustainable growth Inclusive economic growth |
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| Drivers of Change | Private sector development |
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| Sector / Subsector | Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban water supply |
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| Gender Equity and Mainstreaming | |||||||||||||||||||||||
| Description | The main objectives of the Project are to alleviate the chronic water shortage in Kathmandu Valley on a sustainable, long-term basis, and to improve the health and well-being of its inhabitants. The Project also seeks to develop a comprehensive institutional framework for urban water management within the valley. The Project comprises (i) infrastructure development; (ii) social and environmental support; (iii) institutional reforms; and (iv) project implementation support. | ||||||||||||||||||||||
| Project Rationale and Linkage to Country/Regional Strategy | Kathmandu Valley is the country's single largest urban economy and is critical to Nepal's economic growth. Water is central to the well-being of the population and the key to its productive capacities. However, current water services are grossly inadequate and unreliable causing many people to resort to tankers supplies, bottled water, and both deep and shallow wells. The trend has led to serious environmental concerns as shallow wells are becoming increasingly polluted and deep aquifers are being mined to produce additional water. Poor water quality impacts sharply on public health. In terms of access to water (in the dry season) and quality of water, the effects are greatest on the health of the poor. The Project provides the required opportunity to address both the acute socioeconomic distress caused by the lack of adequate safe water to Kathmandu Valley residents, and the institutional challenges to provide water and wastewater management services on a sustainable basis. | ||||||||||||||||||||||
| Impact | Health and well-being of the people in Kathmandu Valley improved. | ||||||||||||||||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Shortage of potable water in Kathmandu Valley alleviated. |
| Progress Toward Outcome | Development outcome is delayed due to various implementation challenges. The contract terminated for second time with the main headworks and tunnel package contract. The new contracts for tunnel and headworks were awarded in 3rd quarter of 2019. Tunnel was substantially completed and initiated the trial run in July 2020 through temporary diversion of Melamchi river but was met with an adit gate accident The new schedule for completion of project and achievement of development outcome has been prepared to complete all the headworks and tunnel works by end of March 2021, while trial run of the tunnel to resume in January 2021. Work progress is also affected by the global Covid-19 pandemic and Nepal government-imposed country-wide lock down from 23 March 2020 until 21 July 2020 in response. But after Nepal government decision to continue national pride and prioritized projects work has resumed following government safety protocol. However, the supply of materials, movement of vehicles and labors, import of equipment is limited and affecting the progress. Project was however able to finish major key works for early diversion and made a trial for testing of tunnel in July 2020. that met with the adit gate failure accident and rectification works are now ongoing. All remaining works especially for permanent headwork structures estimated to be completed by end of Q1 2021. Under Subproject 2, 9.9 km of BDS line from Sundarijal WTP and Mahankal Chaur Reservoir is completed and also tested and commissioned. |
| Implementation Progress | |
| Description of Project Outputs | A. Melamchi Valley (Suproject 1) A.1. Raw water diverted from Melamchi Valley to Kathmandu Valley by development of infrastructure, i.e. tunnel, road and water treatment plant. A.2. Social and Environmental Support provided in Melamchi Valley. A.3. Efficient project management established and capacity building attained B. Kathmandu Valley Subproject (Subproject 2) B.1. Institutional reforms achieved and efficiently operated B.2. Water distribution and wastewater system improved by provision of capital works B.3. Social and environmental support provided in Kathmandu Valley |
| Status of Implementation Progress (Outputs, Activities, and Issues) | A cumulative total of 27,581m tunnel was excavated by 17 Dec 2018 when contractor (CMC di Ravenna) abandoned the site. Invert lining of 885m, final support of 410m and around 25,000 rock dowel insertion remained at the time. The contract was thus terminated. Revised procurement was agreed between ADB and MWSDB with multiple packages of NCB, direct contracting and shopping. The revised procurement plan is endorsed by Melamchi Board and approved by for cabinet approval. Two largest NCB packages are awarded in September and October 2019 and all rest 8 packages are also awarded. Progress by new contractor Sinohydro is satisfactory until Covid-19 outbreak which disrupted the progress and will cause delay of about 3/4 months in achieving the latest project completion target. ut after Nepal government decision to continue national pride and prioritized projects work has resumed following government safety protocol. However, the supply of materials, movement of vehicles and labors, import of equipment is limited and affecting the progress. Project was however able to finish major key works for early diversion and made a trial for testing of tunnel in July 2020 that met with the adit gate failure accident and rectification works are now ongoing. All remaining works especially for permanent headwork structures estimated to be completed by end of Q1 2020. Construction of main access road was completed and opened up between Melamchi Pul Bazar and Timbu.Upgrading of Lamidanda to Melalmchi Pul Bazar also completed.Water Treatment Plant (WTP) to utilize water from Melamchi tunnel has been implemented with JICA funding. MWSDB and the contractor signed the WTP contract on 10 July 2013. WTP is 100% completed and trial run started utilizing water from nearby Bagmati river.Resettlement Plans and Environmental Management Plan (EMP) were prepared and are under implementation for both Subproject 1 and 2 following the split into two distinct subprojects in 2009. Activities undertaken in Subproject 1 (in Melamchi valley) include several activities for social and economic development of the areas in the Melamchi Valley such as (i) construction of health centersand provision of essential drugs; (ii) construction of schoolbuildings and provision of educational kits to schools; and(iii) a forest nursery in Timbu. Through social uplift program (SUP) these activities are ongoing.SUP under the MWSP is being implemented to promote widespread, ongoing, and meaningful participation of key stakeholders. Compliance with Resettlement Plan and Environmental Management Plan (EMP) is monitored by the MWSDB with support from the design and supervisionconsultant (DSC). Further, a team of Safeguards and Social Development Support consultant (SSDS) was also supporting MWSDB for implementation monitoring. MWSDB is continuously monitoring the activities to ensure compliance. MWSDB is the main agency for project management of Melamchi Subproject 1 (Melamchi tunnel construction). Inputs of project management consultant finished. MWSDB is supported by new design and supervision consultant (DSC). Improved coordination and communication among MWSDB, new DSC, the new contractor (CMC), and the safeguards and social development support consultant (SSDS) noted. All the parties are coordinating to improve the pace, quality, safety, and safeguards compliance of the works. The DSC is taking more proactive role and is actively supporting MWSDB to (i) ensure implementation of the agreed action plans, (ii) decide expeditiously the contractual matters such as claims, variations, etc., (iii) ensure coordination with DSC, contractor, local residents, army and other relevant government authorities, and (iv) monitor processingpayments to the contractor in a timely manner. Semi-annualsafeguard monitoring reports are regularly being submittedand disclosed.For Subproject 2, a Project Implementation Directorate(PID) has been established since 2009 which has beencarrying out the activities of Subproject 2.B. Kathmandu Valley Subproject (Subproject 2)Ongoing. KUKL has recruited capacity building andpublic-private partnership (CBP) team in November 2010.With support from this team, KUKL is working to achievingthe targets of lease and license agreements. KUKLsubmitted to WSTFC a new proposal for increase in tariff,which was approved by WSTFC on 14 July 2013 withconditions to be fulfilled by KUKL for service improvement.This will help KUKL in improving its operations and servicedelivery to citizens.ongoingongoing; draft prepared.B.2. Under Subproject 2, distribution network improvement works are expected to reduce water losses, improve service delivery by enhanced hours and higher pressure of water supply for consumers. The PID for Subproject 2 has awarded 47 contracts out of which 31 contracts have been completed and 16 contracts are ongoing. There are no major issues with implementation of this Subproject. Most of the contracts were completed in 2013 and the remaining contracts are completed mid 2018. Advance preparation of designs and bidding documents for the "Kathmandu Valley Water Supply Improvement, Project," (L2776-NEP) enhanced the readiness of the project. The distribution network improvement works in Kathmandu Valley are being carried out with the objectives of reduction of non-revenue water and improvement of service delivery to the citizens.completed.completedSubstantial improvement in water supply is expected after completion of Melamchi headworks and tunnel scheme. Safeguards unit has been fully staffed with social development officer, environmental officer, and legalofficer. Now, this unit is supervising compliance with safeguards of ongoing physical works with support of supervision consultant.Resettlement Plan and Environment Management Plan(EMP) have been prepared and are being implemented.Social Uplift Programs in Melamchi Valley are also under implementation. Several teams of consultants have been recruited in accordance with staggered schedules. Semi annual safeguard monitoring reports are regularly being submitted and disclosed. |
| Geographical Location | Ambathan, Bagmati Zone, Bansbari, Bhotechaur, Chandeni, Deupur, Gyalthum, Jaisithok, Kabhre Palanchok, Lamidada, MahankalChaur, Manohara, Melamchi, Nakkhu, Phatkeswor, Ribarma, Sagarmatha Zone, Sindhu, Sundarijal, Timbu, Tinkune |
| Safeguard Categories | |
|---|---|
| Environment | A |
| Involuntary Resettlement | A |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | Environmental Impact Assessment (EIA) studies (2000, 2001, 2002) were carried at the time of approval of the Project. In the earlier phase of implementation, compliance with the requirements was regularly monitored by the consultant CEMAT/Schemes JV in association with EEC who submitted their final Environmental Management Plan (EMP) report in 2009. In December 2009, Safeguard and Social Development Support (SSDS) ICON-CMS JV consultant was mobilized. At the first level, MWSDB and DSC are monitoring compliance with environmental safeguards. As the second level, SSDS consultant is monitoring the compliance with EMP such as monitoring water quality, noise quality and air quality, fish population and diversity assessment, measurement of discharge, staff gauge reading and nursery establishment. Environmental monitoring and reporting is ongoing. |
| Involuntary Resettlement | Involuntary resettlement follows the requirements of ADB and the Government. ADB Policy and Land Acquisition Act (LAA) 2034 (1977 A.D.) are being complied with, such as the provisions related to compensation standards and benefits, compensation for lost assets at market value, provision for alternative land and compensation for standard crops and trees. MWSDB prepared a Resettlement Policy Framework (RPF), approved by the Cabinet in 2057 (2000 A.D.), to cover resettlement-related needs of Project affected persons (PAPs). The Resettlement Action Plan (RAP) compensation and mitigation measures include the following: compensation upon acquisition of land, crop and trees and house or commercial enterprises, mitigation for the loss of water due to diversion to Melamachi River, displacement allowances, rehabilitation measures, loss of government property, loss of community facilities and resources, community losses, and general counseling. Land acquisition process is completed and resettlement monitoring and reporting is ongoing. |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | The Project was designed with extensive participation of stakeholders, including beneficiaries, adversely affected people, village development committees and ward representatives, district development committees and municipal officials and representatives, ministries concerned and MWSDB, the private sector, external funding agencies, NGOs, and consultants. |
| During Project Implementation | The Project is encouraging direct participation of beneficiaries through social uplift program implementation, representation of adversely affected people in the compensation determination committee, and representation of Kathmandu Valley beneficiaries in water users associations. The Project is also undertaking consensus building at all levels on issues such as water services, environmental and social mitigation and compensation, and employment. |
| Business Opportunities | |
|---|---|
| Consulting Services | The selection and engagement of all remaining consulting services to be financed by ADB shall be in accordance with the provisions of Schedule 4, Section D, paras. 10 to 12 of the Amended and Restated Loan Agreement and with the ADB's Guidelines on the Use of Consultants (2007, as amended from time to time) using the quality-and cost-based method. |
| Procurement | Procurement of all remaining goods and works to be financed out of proceeds of the Loans will be in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). |
| Responsible ADB Officer | Dasgupta, Saugata |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Nepal Resident Mission |
| Executing Agencies |
Kathmandu Upatyaka Khanepani Limited (KUKL) Tripureshwar, Kathmandu, Nepal Melamchi Water Supply Development Board H.P. Sharma Kathmandu, Nepal Ministry of Physical Infrastructure and Transport Deep Basnyat [email protected] Kathmandu, Nepal Ministry of Urban Development Mr. Kishore Thapa Singhadurbar, Kathmandu, Nepal |
| Timetable | |
|---|---|
| Concept Clearance | 08 Mar 1999 |
| Fact Finding | 03 Jul 2000 to 24 Jul 2000 |
| MRM | 15 Sep 2000 |
| Approval | 03 Jul 2008 |
| Last Review Mission | - |
| PDS Creation Date | 12 Feb 2007 |
| Last PDS Update | 03 Dec 2020 |
Loan 1820-NEP
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 21 Dec 2000 | 24 Jan 2001 | 28 Nov 2001 | 31 Mar 2007 | 30 Jun 2021 | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 303.50 | Cumulative Contract Awards | |||
| ADB | 120.00 | 21 Dec 2000 | 128.84 | 0.00 | 95% |
| Counterpart | 118.00 | Cumulative Disbursements | |||
| Cofinancing | 65.50 | 21 Dec 2000 | 133.53 | 0.00 | 98% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Partly satisfactory | Satisfactory | Unsatisfactory | Partly satisfactory | Satisfactory | Unsatisfactory |
Loan 3110-NEP
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 11 Feb 2014 | 07 Apr 2014 | 25 Apr 2014 | 30 Jun 2017 | 30 Jun 2021 | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 38.08 | Cumulative Contract Awards | |||
| ADB | 25.00 | 11 Feb 2014 | 21.87 | 0.00 | 97% |
| Counterpart | 13.08 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 11 Feb 2014 | 20.57 | 0.00 | 91% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Partly satisfactory | Satisfactory | Unsatisfactory | Partly satisfactory | Satisfactory | Unsatisfactory |
Loan 8191-NEP
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 22 Nov 2000 | 21 Sep 2001 | 01 Jul 2002 | 30 Jun 2003 | 31 Dec 2008 | 31 Dec 2008 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 13.70 | Cumulative Contract Awards | |||
| ADB | 0.00 | 22 Nov 2000 | 0.00 | 13.70 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 13.70 | 22 Nov 2000 | 0.00 | 13.70 | 100% |
Loan 8235-NEP
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 03 Jul 2008 | 03 Jul 2008 | 03 Jul 2008 | 31 Jul 2013 | 30 Sep 2015 | 11 Nov 2015 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 10.50 | Cumulative Contract Awards | |||
| ADB | 0.00 | 03 Jul 2008 | 0.00 | 10.06 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 10.50 | 03 Jul 2008 | 0.00 | 10.06 | 100% |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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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.
Evaluation Documents See also: Independent Evaluation
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Related Publications
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Excavation of Nepal's Longest Tunnel Brings Improved Water Supply a Step Closer to Kathmandu Residents
KATHMANDU, NEPAL (12 April 2018) — Vice President of Nepal Nanda Bahadur Pun, Minister for Drinking Water Bina Magar, and ADB Director General for South Asia Hun Kim participated in a breakthrough ceremony today that marked the completion of the excavation of the longest tunnel in Nepal. The 26-kilometer (km) tunnel, to be fully operational in a few months, will carry water from the Melamchi River to the Kathmandu Valley for supply by the Kathmandu Upatyaka Khanepani Limited (KUKL).
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| ADB Loan No. 1820-NEP (SF): Melamchi Water Supply Project [MDS/DT/02- Package 2] - CORRIGENDUM | Invitation for Bids | Closed | 13 Jun 2019 | 17 Jun 2019 |
| ADB Loan No. 1820-NEP (SF): Melamchi Water Supply Project [MDS/DT/02- Package 1] | Invitation for Bids | Closed | 31 May 2019 | 01 Jul 2019 |
| ADB Loan No. 1820-NEP (SF): Melamchi Water Supply Project [MDS/DT/02- Package 2] - ORIGINAL | Invitation for Bids | Closed | 31 May 2019 | 17 Jun 2019 |
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Contractor Address | Executing Agency | Contract Description | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|---|---|
| SUPPLY, INSTALLATION OF HYDRO-MECHANICAL WORKS FOR HEADWORKS AND DIVERSION TUNNEL | Loan 1820 | 17 Jan 2020 | PRECISION INFRATECH LTD | AHMEDABAD INDIA | Ministry of Urban Development | CONSTRUCTION | 1,487,037.07 | 1,352,844.12 |
| CONSTRUCTION OF REMAINING HEADWORKS | Loan 1820 | 24 Oct 2019 | SINOHYDRO CORPORATION LIMITED | BEIJING CHINA CHINA,PEOPLE'SREP.OF | Ministry of Urban Development | CONSTRUCTION | 7,993,474.45 | 4,031,014.04 |
| CONSTRUCTION OF REMAINING HEADWORKS | Loan 3110 | 24 Oct 2019 | SINOHYDRO CORPORATION LIMITED | BEIJING CHINA CHINA,PEOPLE'SREP.OF | Ministry of Urban Development | CONSTRUCTION | 7,993,474.45 | 2,071,617.57 |
| CONSTRUCTION OF TUNNEL REMAINING WORKS | Loan 3110 | 24 Oct 2019 | SINOHYDRO CORPORATION LIMITED | CHINA CHINA,PEOPLE'SREP.OF | Ministry of Urban Development | CONSTRUCTION | 6,616,113.94 | 1,718,626.18 |
| CONSTRUCTION OF REMAINING TUNNEL WORKS | Loan 1820 | 13 Oct 2019 | SINOHYDRO CORPORATION LIMITED | CHINA CHINA,PEOPLE'SREP.OF | Ministry of Urban Development | CONSTRUCTION | 6,616,113.94 | 3,342,853.03 |
| Supply and Delivery of 3 Nos of 4Wd Vehicle for Ku Kl-Pid (Kukl/03/21-Package 1B) | Loan 1820 | 19 Jun 2017 | Agni Incorporate Pvt. Ltd | Panipokhari, Kathmandu, Nepal | Ministry of Urban Development | Supply of Goods | 1,016,270.00 | 89,292.00 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Melamchi Water Supply Project: Procurement Plan | Procurement Plans | May 2019 |
| Melamchi Water Supply Project - Subproject 2 | Procurement Plans | Mar 2011 |