Nepal: Melamchi Water Supply Project
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 Details
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Project Officer
Dasgupta, Saugata
South Asia Department
Request for information -
Country/Economy
Nepal -
Modality
- Loan
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Sector
- Water and other urban infrastructure and services
Related Projects
| Project Name | Melamchi Water Supply Project | ||||||||||||||||||||||
| Project Number | 31624-023 | ||||||||||||||||||||||
| Country / Economy | 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 | After much delay, Melamchi diversion tunnel works had substantially completed and started resumption of drawing water from Melamchi river from 23 February 2021. As per schedule and plan, the tunnel was being emptied after undergoing 90 days water drawing testing period for inspection to carry out any rectification required and resume drawing water in totality after due rectifications. However, on 15 June 2021, massive flood event occurred in the Melamchi river that inundated the entire headworks in debris, swept sections of access road and several bridges as well as caused human casualties of the project staffs. The damage further aggravated with yet another flood from August 2021 that brought huge debris from the headwaters region and completely buried the headworks area under huge rocks and boulders. On government request, ADB provided resources for the detailed hazard mapping and the damage and need assessment along with the coordination of other related agencies like National Disaster Risk Reduction and Management Authority. The consultants have been engaged since November 2021 and are at the initial stage the study and findings. Immediate restoration works of Melamchi area through government sources is agreed to restore connectivity, removal and safe disposal of debris, and other works to make the headworks functional and ensure early diversion of water (based on the technical assessment). Provision are being considered under Second Kathmandu Valley Water Supply Improvement Project (SKVWSIP) for medium- and long- term restoration plan of the headworks area, including components needed to strengthen climate- and disaster- resilience of MRWDS. The (a) slope stability works within the immediate vicinity of the Melamchi Headworks area, (b) retrofitting and strengthening the critical headworks structures, (c) establishment of a decision support system including an early warning system, and (d) key system installation works, are identified for inclusion under SKVWSIP, which will be more detailed out after the completion of the study of hazard mapping and detail damage and need assessment. |
| 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) | 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 centers and provision of essential drugs; (ii) construction of school buildings and provision of educational kits to schools; and(iii) a forest nursery in Timbu through social uplift program (SUP) these activities are ongoing through government resources after ADB loan closed on 30 June 2021. 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 supervision consultant (DSC). Further, a team of Safeguards and Social Development Support consultants (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). Semi-annual safeguard monitoring reports are regularly being submitted and disclosed. For Subproject 2, a Project Implementation Directorate(PID) has been established since 2009 which has been carrying out the activities of Subproject 2.B. Kathmandu Valley Subproject (Subproject 2)Ongoing. KUKL has recruited capacity building and public-private partnership (CBP) team in November 2010. With support from this team, KUKL is working to achieving the 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 with conditions to be fulfilled by KUKL for service improvement. This will help KUKL in improving its operations and service delivery to citizens. 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. Substantial improvement in water supply is expected after the completion of Melamchi headworks and tunnel scheme. Safeguards unit has been fully staffed with social development officer, environmental officer, and legal officer. 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. Semiannualsafeguard monitoring reports are regularly being submitted and disclosed. Construction of the 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. However associated headworks facilities are severely damaged by June 2021 flood event. |
| 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 | |
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| 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. SSDS consultant monitored 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 until their engagement till December 2019. At the first level, MWSDB and DSC are monitoring compliance with environmental safeguards. 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 | |
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| 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. Binod Chandra Jha 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 | 15 Dec 2021 |
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 | 04 Feb 2022 | 127.27 | 0.00 | 93% |
| Counterpart | 118.00 | Cumulative Disbursements | |||
| Cofinancing | 65.50 | 04 Feb 2022 | 135.20 | 0.00 | 99% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | Satisfactory | Satisfactory |
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 | 04 Feb 2022 | 21.87 | 0.00 | 97% |
| Counterpart | 13.08 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 04 Feb 2022 | 20.77 | 0.00 | 92% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | Satisfactory | Satisfactory |
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 | 04 Feb 2022 | 0.00 | 13.70 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 13.70 | 04 Feb 2022 | 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 | 04 Feb 2022 | 0.00 | 10.06 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 10.50 | 04 Feb 2022 | 0.00 | 10.06 | 100% |
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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 | Address | Executing Agency | 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 | 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 | 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 | 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 | 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 | 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 | 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 |