31624-023: Melamchi Water Supply Project | Asian Development Bank

Nepal: Melamchi Water Supply Project

Sovereign (Public) Project | 31624-023 Status: Active

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

Project Officer
Sharma, Laxmi South Asia Department Request for information
Country
  • Nepal
Modality
  • Loan
Sector
  • Water and other urban infrastructure and services
 
Project Name Melamchi Water Supply Project
Project Number 31624-023
Country Nepal
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 1820-NEP: Melamchi Water Supply Project
concessional ordinary capital resources lending / Asian Development Fund US$ 120.00 million
Loan 8191-NEP: Melamchi Water Supply Project
OPEC Fund for International Development US$ 13.70 million
Loan 8235-NEP: Melamchi Water Supply Project
Nordic Development Fund US$ 10.50 million
Loan: Melamchi Water Supply Project
Japan Bank for International Cooperation (ODA) US$ 47.50 million
MOF, Japan US$ 18.00 million
Loan 3110-NEP: Melamchi Water Supply Project - Additional Financing
concessional ordinary capital resources lending / Asian Development Fund US$ 25.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban water supply

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 expected to be achieved as per revised schedule by end of 2017 - 25.66 Km of Tunnel excavation out of 27.58 Km to off-take water from Melamchi river completed. At Head Works, around 100,000 cubic meter of Open Cut excavation out of 102,000 cubic metre completed to construct diversion weir, desilting basin etc to divert water to Melamchi-Sundarijal tunnel. 610 Km of distribution pipe out of 670 Km inside valley completed while 51.5 Km out of 60 Km Bulk Distribution pipe laying completed as of 1 Aug 2017.
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. Melamchi Valley (Subproject 1)

A.1 MWSDB terminated the previous contract for the Melamchi tunnel on 26 September 2012 due to unsatisfactory performance of the then contractor. As of the date of termination, the physical progress (tunnel excavation) was 22% (6.3 km out of 27.5 km. Rebidding for the Melamchi tunnel Contract started in November 2012.

MWSDB issued the letter of acceptance to the winning contractor on 21 June 2013, the contract was signed with Cooperativa Muratori e Cementisti di Ravenna (CMC) of Italy on 15 July 2013, and the letter to commence was issued on 1 October 2013. The initial progress of the new contractor of the Melamchi tunnel is encouraging in terms of mobilization of key personnel, equipment, machinery, materials and start-up activities. A cumulative total of 25,660 m tunnel length has been achieved as of 31 August 2017 since the issuance of notice to commence on 1 October 2013. The Melamchi tunnel contract progress adversely affected by 25 April 2015 Earthquake and short of construction materials and fuel due to closure of southern Border. The water from Melamchi is expected to be diverted by end of 2017 with temporary arrangement and the complete civil works is expected to be finished by March 2018.

A Water Treatment Plant (WTP) to utilize water from Melamchi tunnel is being implemented with JICA funding. MWSDB and the contractor signed the WTP contract on 10 July 2013.

Upgrading construction works in UAR 02 were earlier disturbed due to concerns of some local residents. Now, the works of UAR 02 have been completed.

Construction of 18-km main access road was completed and opened up between Melamchi Pul Bazar and Timbu.

A.2. 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.

The social uplift program (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, services of a Safeguards and Social Development Support consultant (SSDS) have also been taken for monitoring at a second level. MWSDB has been specifically asked to ensure compliance with effluent discharge standards.

A.3 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 processing payments to the contractor in a timely manner. 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)

B.1. 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. KUKL submitted 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.

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 26 contracts out of which 24 contracts have been completed or about to complete and 2 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 by are expected to be completed by end of 2017. Another project "Kathmandu Valley Water Supply Improvement, Project," (L2776-NEP) enhanced the readiness of the project and is covering the gap remained by L1820. 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.

B.3. Substantial improvement in water supply is expected after completion of the Melamchi tunnel by 2016. 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. Semiannual 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 Sharma, Laxmi
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 11 Sep 2017

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 31 Dec 2017 -
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 126.39 0.00 92%
Counterpart 118.00 Cumulative Disbursements
Cofinancing 65.50 21 Dec 2000 123.06 0.00 90%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating 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 31 Dec 2018 -
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 14.30 0.00 63%
Counterpart 13.08 Cumulative Disbursements
Cofinancing 0.00 11 Feb 2014 9.08 0.00 40%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating 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 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.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Melamchi Water Supply Project - Additional Financing: Project Data Sheet (Nepali Translation) Translated PDS May 2014
Loan Agreement (Special Operations) for Melamchi Water Supply Project - Additional Financing Loan Agreement (Special Operations) Apr 2014
Melamchi Water Supply Project - Additional Financing: Report and Recommendation of the President Reports and Recommendations of the President Jan 2014
Melamchi Water Supply Project - Additional Financing Project/Program Administration Manual Dec 2013
Melamchi Water Supply Project - Subproject 1 Procurement Plans Nov 2012
Melamchi Water Supply Project: Forthcoming Tender Construction of Headworks and Diversion Tunnel Documents Produced Under Grant/Loans/TA Oct 2012
Melamchi Water Supply Project - Subproject 2 Procurement Plans Mar 2011
Amendment to the Amended and Restated Loan Agreement for Melamchi Water Supply Project between Nepal and ADB dated 29 Mar 2010 Loan Agreement (Special Operations) Mar 2010
Amended and Restated Loan Agreement for Melamchi Water Supply Project between Nepal and Asian Development Bank dated 6 April 2008 Loan Agreement (Special Operations) Apr 2008
Project Agreement for Melamchi Water Supply Project between Asian Development Bank and Kathmandu Upatyaka Khanepani Limited dated 6 April 2008 Project/Program Agreements Apr 2008
Melamchi Water Supply Project and Kathmandu Valley Water Services Sector Development Program Loan Change in Scope, Amount, and Implementation Arrangements Jan 2008
Loan Agreement for Melamchi Water Supply Project between Nepal and Asian Development Bank dated 24 January 2001 Loan Agreement (Special Operations) Jan 2001
Melamchi Water Supply Project Reports and Recommendations of the President Nov 2000

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.

Title Document Type Document Date
Melamchi Water Supply Project: Semiannual Social Monitoring Report (January-June 2017) Environmental and Social Monitoring Reports Sep 2017
Melamchi Water Supply Project: Kathmandu Valley Subproject Environmental and Social Monitoring Report (July-December 2016) Environmental and Social Monitoring Reports Jan 2017
Melamchi Water Supply Project: Melamchi Valley Subproject Environmental and Social Monitoring Report (January-December 2016) Environmental and Social Monitoring Reports Dec 2016
Melamchi Water Supply Project: Semiannual Social Monitoring Report (July-December 2015) Social Monitoring Reports Apr 2016
Melamchi Water Supply Project - Subproject 1: Annual Progress Report (January-December 2013) Environmental and Social Monitoring Reports Aug 2014
Melamchi Water Supply Project - Subproject 2: Environmental and Social Monitoring Report (July-December 2013) Environmental and Social Monitoring Reports Mar 2014
Melamchi Water Supply Project - Subproject 1: Environmental and Social Monitoring Progress Report (May-August 2013) Environmental and Social Monitoring Reports Sep 2013
Melamchi Water Supply Project - Subproject 2 and Kathmandu Valley Water Supply Improvement Project: Environmental and Social Monitoring Report (January-June 2013) Environmental and Social Monitoring Reports Jul 2013
Melamchi Water Supply Project - Subproject 1: Environmental and Social Monitoring Progress Report (January-April 2013) Environmental and Social Monitoring Reports Apr 2013
Melamchi Water Supply Project - Subproject 1: Annual Progress Report (January - December 2012) Environmental and Social Monitoring Reports Feb 2013
Melamchi Water Supply Project - Subproject 2: Biannual Report on Environment and Social Safeguards (September - December 2012) Environmental and Social Monitoring Reports Jan 2013
Melamchi Water Supply Project-Subproject 2: Bi-Annual Report on Environment and Social Safeguards (February 2012 - August 2012) Environmental and Social Monitoring Reports Sep 2012
Melamchi Water Supply Project - Subproject 1: Monthly Progress Report (July 2012) Environmental and Social Monitoring Reports Jul 2012
Melamchi Water Supply Project - Subproject 2: Second Semestral Report Environmental and Social Monitoring Reports Feb 2012
Melamchi Water Supply Project: Resettlement Action Plan for Kathmandu Valley Water Supply and Sanitation Sub-project (Sub-project 2) Resettlement Plans May 2009
Melamchi Water Supply Project: Resettlement Action Plan for Melamchi River Water Diversion Sub-project (Sub-project 1) Resettlement Plans Aug 2008
Melamchi Water Supply Project - Sub-project 1: Environmental Management Plan for Melamchi River Water Diversion Sub-project Environmental Management Plans Jul 2008
Melamchi Water Supply Project - Sub-project 2: Environmental Management Plan for Kathmandu Valley Water Supply and Sanitation Environmental Management Plans Apr 2008
Melamchi Water Supply Project Environmental Impact Assessments Aug 2000
Melamchi Water Supply Project Summary Environmental Impact Assessments Aug 2000

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

No tenders for this project were found.

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 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 1016270 89292

Procurement Plan

Title Document Type Document Date
Melamchi Water Supply Project - Subproject 1 Procurement Plans Nov 2012
Melamchi Water Supply Project - Subproject 2 Procurement Plans Mar 2011