|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.