ADB and the Government of Nepal are working together to help the residents of the Kathmandu Valley to obtain greater access to clean water on a long-term basis. The Kathmandu Valley Water Supply Improvement Project is working to improve the efficiency and the reliability of the water supply system in the area while at the same time upgrading the infrastructure at the water source areas through a related project that is constructing the Melamchi tunnel and expanding the water treatment plant This project is expanding reservoirs, and providing water connections with a focus on serving the poor and households headed by women. The long-term goal of the project is to provide affordable, clean water to the people of Kathmandu Valley for years to come.
|Project Name||Kathmandu Valley Water Supply Improvement Project|
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Water and other urban infrastructure and services - Urban policy, institutional and capacity development - Urban water supply
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||ADB and the Government of Nepal are working together to help the residents of the Kathmandu Valley to obtain greater access to clean water on a long-term basis. The Kathmandu Valley Water Supply Improvement Project is working to improve the efficiency and the reliability of the water supply system in the area while at the same time upgrading the infrastructure at the water source areas through a related project that is constructing the Melamchi tunnel and expanding the water treatment plant This project is expanding reservoirs, and providing water connections with a focus on serving the poor and households headed by women. The long-term goal of the project is to provide affordable, clean water to the people of Kathmandu Valley for years to come.|
|Project Rationale and Linkage to Country/Regional Strategy||Kathmandu Valley is heavily populated with more than 10,000 people per square kilometer. The area is expected to have a population of about 3.5 million by 2016. Rapid and largely unplanned urban growth, lack of reliable water sources, and inadequate past investments have resulted in poor quality drinking water in the area, as well as limited access to water, particularly for poor families. The lack of access to clean water has caused an increasing number of people to become sick. The poor have also faced the burden of additional expenses as they struggle to find clean water for their families.|
|Impact||Sustainable water supply services for residents of Kathmandu Valley|
|Description of Outcome||Improved access, efficiency, and reliability of water supply services to residents of Kathmandu Valley including poor women and men|
|Progress Toward Outcome||Execution of civil works is still ongoing and the target outcome for water supply infrastructures has not yet been achieved.|
|Description of Project Outputs||
Water supply infrastructure rehabilitated and expanded
Operating and financial systems improved, and capacities strengthened
|Status of Implementation Progress (Outputs, Activities, and Issues)||
1. Water supply infrastructure rehabilitated and expanded
1.1 The project is progressing. The design, supervision and management consultant (DSC) was engaged in August 2012, and is effectively supporting Project Implementation Directorate's operations. The distribution network improvement (DNI) works are being implemented in an innovative manner with the objective of Non-Revenue Water (NRW) reduction on district metering area (DMA) approach rather than traditional pipe-laying contracts. Two consulting firms were engaged under the additional financing (L3255), the design and supervision consultants to support the implementation of works handled by KUKL and MWSDB.
1.2 Under L2776, the 3 major civil works contracts for the distribution network improvement (DNI) for efficient NRW management, amounting to approximately $59.75 million, were awarded from April to September 2013, and are at advanced stages of implementation.The package for drilling and development of tubewells was awarded in July 2013 and physical works are in progress. Target completion of Loan 2776 contracts are expected to be extended to mid-2018. The contract for road reinstatement was awarded in October 2016. Bidding for DNI contract package 4 under L3255 is ongoing, tender closed on 21 February 2017.
1.3 Four major civil works contracts for bulk distribution system and construction of service reservoirs (BDS-SRT) are being implemented (3 under L2776 and 1 under L3255). The 3 BDS-SRT civil works contracts under L2776 amounting to approximately $62.67 million, were awarded from March to July 2014. Physical works are in progress. Target completions of these contracts are from March 2016 to February 2017. while the BDS-SRT civil works contract under L3255 is being implemented from December 2015 to January 2018.
1.4. Under L2776, the supply and delivery of various equipment (spare pipes, fittings & appurtenances; jeeps, cars, pickups, motorcycles) have been completed. For L3255, procurement of various equipment is in progress. Contract awards for 3 lots (computer & office equipment, laboratory equipment & furniture, and vehicles) were approved in January 2017.
2. Operating and financial systems improved, and capacities strengthened
2.1 The Community Awareness and Participation Consultant (CAPC) was mobilized in September 2012, and is supporting PID for implementation of gender equality and social inclusion (GESI) action plan, resettlement plan and grievance redress system, and various other community awareness campaigns and ensuring contractors' compliance to safeguards requirements. In addition to their other activities, CAPC is focusing on: (i) effective implementation of GESI plan, including support for formulation of KUKL's GESI guidelines and operationalization of GESI unit; (ii) preparation of information, education and communication (IEC) material including leaflets, brochures, and a quarterly newsletter to disseminate the good outcomes of project works was launched; (iii) effective and useful programs in schools on issues detailed out in community awareness and participation plan (CAPP); (iv) a system to inform, in advance, the households and businesses likely to be affected by construction activities under the project; (v) training programs for construction workers on occupational health and safety (OHS); (vi) support to the ongoing _clean the Bagmati River_ campaign; and (vii) operationalizing the lessons from the performance assessment survey earlier conducted by CAPC.
2.2 The Business plan of the water utility in Kathmandu, KUKL, was approved in July 2012 and is currently being implemented. An updated business plan has been drafted. KUKL's' audited financial statements (AFSs) from of FY 2007-08 to FY 2013-2014 have all been submitted.
2.3 PID is improving GIS network modeling systems and preparing procurement packages for the refurbishment of water treatment plants.
2.4 New water tariff structure for the Kathmandu Valley was approved by Water Supply Tariff Fixation commission (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.
Summary of Environmental and Social Aspects
|Environmental Aspects||The project is classified as category B for environment. An initial environmental examination (IEE) and environmental management plan including a grievance redress mechanism were prepared in accordance with ADB's Safeguard Policy Statement. The IEE concludes that no significant adverse impacts are anticipated and that the net environmental benefits will be positive and large with fewer waterborne diseases and better public health. To mitigate adverse impacts of increased generation of wastewater, the Kathmandu Urban Environment Improvement Project has been proposed to focus on rehabilitating and expanding the sewerage network and wastewater treatment. An environmental assessment and review framework was prepared to address small components to be defined through detailed design. Additional oversight and mitigation measures will be taken for pipelaying works along roads passing through heritage areas including permission from the Department of Archaeology prior to construction.|
|Involuntary Resettlement||The project is classified as category B for involuntary resettlement in accordance with ADB's Safeguard Policy Statement (2009). The project does not require any land acquisition. The impacts are limited to temporary disruption of business activities, and temporary shifting of vendors and hawkers during construction works within the right-of-way for the water pipeline works. A resettlement plan, including the grievance redress mechanism, was prepared in accordance with ADB's Safeguard Policy Statement. A resettlement framework was prepared to address small components to be defined through detailed design. Temporary impacts will be limited and compensation for lost income will be provided to those affected as per the resettlement plan.|
|Indigenous Peoples||No impacts to IPs are anticipated as the project focuses on rehabilitation of the existing water supply network in urban areas. Water will be universally supplied to all households within the project area, and meaningful, widespread consultations will continue within all project area communities.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Adequate consultations were carried out with all the important stakeholders during the project preparatory technical assistance (PPTA), fact-finding and post fact-finding missions. The objective of the consultations was to make citizens of Kathmandu Valley fully aware of the intent, design, schedule, impacts, employment opportunities, and overall benefits of the project, with particular attention given to the poor and the socially-excluded sections of the population.|
|During Project Implementation||A community awareness and participation plan (CAPP) has been prepared to involve key stakeholders for widespread, ongoing, and meaningful participation in project activities. This is especially relevant in a high density urban setting like Kathmandu Valley where disturbances related to construction activities are inevitable. Information disclosure and public awareness are essential for maintaining public support and mitigating grievances during the construction period. A gender equality and social inclusion (GESI) action plan was prepared with clear targets, responsibilities, and resource allocation. The objective of the CAPP and GESI is to make citizens of Kathmandu Valley fully aware of the intent, design, schedule, impacts, employment opportunities, and overall benefits of the project, with particular attention given to the poor and the socially-excluded sections of the population. At the same time, full involvement of citizens can only ensure realization of benefits of many critical activities of the project such as reduction of nonrevenue water (NRW) and improvement of water supply services to citizens including introduction of 24-hour supply. The project activities require coordinated efforts among the executing and implementing agencies and public, private, and community stakeholders. A Community Awareness and Participation Consultant (CAPC) will be recruited to help the Project Implementation Directorate (PID) ensure meaningful and ongoing consultations and public awareness during project implementation and specifically to implement CAPP and GESI action plans.|
Design, Supervision, and Management Consultant (QCBS) - 620 person-months - $3.54 million in total
Community Awareness and Participation Consultant (QCBS) - 301 person-months - $1.20 million in total
International Competitive Bidding - 5 contracts (works); 3 contracts (goods) - Above $1,000,000 for works, above $500,00 for goods
National Competitive Bidding - Multiple small works and goods contracts - $1,000,000 or less for works, $500,000 or less for goods
Shopping - Minor works and goods packages (estimated six) - Less than $100,000
|Responsible ADB Officer||Castro-Wooldridge, Vivian|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Urban Development and Water Division, SARD|
Ministry of Water Supply and Sanitation
|Concept Clearance||11 Mar 2011|
|Fact Finding||14 Mar 2011 to 28 Mar 2011|
|MRM||07 Jul 2011|
|Approval||16 Sep 2011|
|Last Review Mission||-|
|Last PDS Update||20 Mar 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|16 Sep 2011||10 Nov 2011||07 Feb 2012||30 Jun 2017||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||130.00||Cumulative Contract Awards|
|ADB||80.00||16 Sep 2011||63.40||0.00||88%|
|Cofinancing||0.00||16 Sep 2011||49.11||0.00||68%|
|Approval||Signing Date||Effectivity Date||Closing|
|24 Apr 2015||07 Dec 2015||11 Feb 2016||31 Dec 2020||-||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||135.00||Cumulative Contract Awards|
|ADB||90.00||24 Apr 2015||45.31||0.00||50%|
|Cofinancing||0.00||24 Apr 2015||23.65||0.00||26%|
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 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
None currently available.
|Title||Document Type||Document Date|
|Nepal: Kathmandu Valley Water Supply Improvement Project (South Asia Project Brief)||Papers and Briefs||Oct 2012|
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.
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