Nepal: Third Small Towns Water Supply and Sanitation Sector Project
The Asian Development Bank is helping Nepal provide quality water and sanitation services in small towns. The project is benefiting over 1.2 million people in 69 towns with construction and upgrades of water pipes, treatment facilities and household connections, as well as septic tanks, drainage and public awareness campaigns. The third stage project is targeting infrastructure improvements in 26 towns.
Project Details
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Project Officer
Paudel, Shiva Prasad
South Asia Department
Request for information -
Country/Economy
Nepal -
Modality
- Grant
- Loan
-
Sector
- Water and other urban infrastructure and services
Related Projects
| Project Name | Third Small Towns Water Supply and Sanitation Sector Project | ||||||||||||
| Project Number | 35173-013 | ||||||||||||
| Country / Economy | Nepal |
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| Project Status | Active | ||||||||||||
| Project Type / Modality of Assistance | Grant 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 | Gender Equity and Mainstreaming Governance and capacity development Partnerships |
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| Sector / Subsector | Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban sanitation - Urban water supply |
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| Gender Equity and Mainstreaming | Gender equity | ||||||||||||
| Description | ADB and the Government of Nepal are working together to provide water supply and sanitation services to selected small towns in the country. The Third Small Town Water Supply and Sanitation Sector Project is providing the services to small towns with a population of 5,000 to 40,000 that show the potential for growth by having access to roads, power supply and telecommunications. This includes the upgrade or construction of water supply systems in up to 20 small towns, involving 1,450 kilometers of water supply pipelines; 67,500 household connections; and 20 water treatment systems with an estimated capacity of 50,000 cubic meters per day. The project will also provide about 5,000 household toilets with septic tanks, as well as provision of septic management facilities and equipment. Drainage systems and master plans are also prepared in towns with flooding risks. Training is being provided to help local water agencies modernize their operations and manage water rates, and to teach local communities public awareness on water conservation and public hygiene. | ||||||||||||
| Project Rationale and Linkage to Country/Regional Strategy | The urban population of Nepal is growing quickly. While this is an important engine for economic growth, it is also creating environmental hazards and rising urban poverty. Improved infrastructure and government services in cities are needed to address these issues. Most people in the country do not have access to piped water and those who do have it often suffer from intermittent service and poor maintenance. In areas without piped or other water systems, people use natural springs, spouts, or shallow groundwater wells and hand pumps. Many households in the country also lack modern sanitation facilities. This leads to open defecation that contaminates water sources and creates serious public health risks. Each year, more than 13,000 children under 5 years of age die of diarrhea-related diseases. | ||||||||||||
| Impact | Improved living conditions in project towns. | ||||||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Inclusive, genderfocused, and sustainable WSS service delivery in project towns. |
| Progress Toward Outcome | The implementation of the project has been satisfactory. The planned activities under loan 3157 and grant 0405 has been completed. However, one contract financed by OFID Loan is being implemented with a progress of about 77%. The remaining work is financed from the government's own source. All the twenty water supply subprojects (towns) are already operational and supplying water to the people. The project has substantially achieved the envisaged project outcomes and outputs. The Project has been completed and financial closure of grant 0405 also completed. Financial closure of loan 3157 and 8304 is expected by Q1-2022. 20 town projects are completed & started to supply of water to 308,733 population from individual house taps. From the 36 Enhancement towns additional 112,698 population are benefitted. TDF has prepared the tariff fixation guideline and tariff collection guideline in coordination with PMO and ISSAU. it is under process of approval. The project supported strengthening the institutional and regulatory framework for water users associations (WUAs) in small towns through introduction of tariff guidelines and directives, development of business plans of WUAs, national water supply and sanitation training center, the DWSSM, and sector efficiency improvement unit. The project also established institutional support and service advisory unit as a permanent unit of DWSSM which is mandated to support the WUAs in institutional, technical, legal and managerial aspects. Similarly, all the water supply systems are equipped with computerization of billing and collection systems. The project is also supporting the restructuring of the Town Development Fund which is the financial intermediary of the project- to better position itself for the municipal infrastructure financing. The water users and sanitation committees (WUSCs) are fairly inclusive and have been operating and maintaining the water supply systems with support of the DWSSM and the TDF. The achievements of the project towards outcome and outputs will be assessed in detail during the preparation of the ADB's project completion report. |
| Implementation Progress | |
| Description of Project Outputs | 1. Improved WSS infrastructure. 2. Strengthened sector policy, regulatory and institutional capacity, and service delivery. 3. Improved project implementation. |
| Status of Implementation Progress (Outputs, Activities, and Issues) | Output 1 - Improved WSS infrastructure (a) Around (i) 1,450 km supply pipelines installed; (ii) 67,500 additional HHs connected to piped water supply; and (iii) 20 WTPs with an estimated capacity of 50,000 m3/day constructed. (Inclusive of all poor, FHH and vulnerable HHs in project areas). Status: (i) A total of 1,889.85 km of pipelines (including 1,584.75 kms for 20 new towns, and 305.10 kms from the enhancement work) was installed. (ii) About 70,000 additional HHs are connected to piped water supply. (iii) All the water treatment plants are in operation and producing 58,708 m3/day treated water. (b) Around 5,000 additional private and 21 public toilets with septic tanks constructed (inclusive of all poor, FHH and vulnerable HHs) Status: In 20 towns, 5,075 additional private toilets were constructed and are in use, benefitting a total of 28,987 population (including 14,648 women, 1,040 FHHs, and 289 HHs form vulnerable group). Similarly, 24 public toilets were constructed in different public/ strategic places such as bus parks, local market centers, playground, along the roadside/ highway and other places where movement of the people/public gatherings remains high. All these toilets have been built in a GESI friendly manner. (c) 2 septage treatment facilities constructed Status: 2 septage treatment facilities were constructed in Charali and Kakarvitta towns and are in operation (d) Drainage master plans for estimated 14 towns with flooding risk and priority drains completed Status: Sanitation master plans including drainage master plan prepared for 14 towns (e) Around 5 packages of existing water supply systems in 23 small towns rehabilitated/ expanded Status: Seven rehabilitation packages for 36 small towns were implemented to further enhance water supply facilities (f) Non-revenue water maintained at around 10% in project towns; and approximately 100 tons of CO2 emission reduced Status: Average NRW of the project towns is measured to be 11.7% (the NRW of individual town ranging from 3.55% to 21.75%). The reduction in emission of carbon dioxide will be calculated during the preparation of ADB's PCR. Output 2 : Strengthened sector policy, regulatory and institutional capacity and service delivery (a) Tariff guidelines adopted and implemented in small towns Status: Tariff guidelines and directives are finalized and will be implemented once approved by the local governments (b) ISSAU established in DWSS, and business plans for DWSS, NWSSTC, SEIU and WUAs adopted Status: (i) ISSAU is established as a permanent unit of DWSSM. (ii) Business plans for DWSSM, NWSSTC, SEIU and WUSCs are prepared and disseminated. (iii) The business plans for WUAs will be finalized by December 2021 (c) TDF restructured to strengthen its capacity and allow flexible financing of WSS projects in small towns Status: 6 individual consultants completed their work in restructuring of TDF. Flexible financing started (d) SWM plans completed for 14 towns Status: Master plan for solid waste management is prepared for 14 towns (e) 33% of the women are in WUSC executive committees of 20 towns and are trained on leadership Status: There are 33% of women in WUSC executives committee of 20 towns. Similarly, 63 women executives from 20 towns were trained in leadership (f) Minimum 60 staffs of WUSCs or LBs trained on technical, financial and utility management (target: at least 1 woman executive or relevant staffs of the WUSCs or LBs) Status: 63 women executives from 20 WUSCs were trained in technical, financial, and utility management. |
| Geographical Location | |
| Safeguard Categories | |
|---|---|
| Environment | B |
| Involuntary Resettlement | B |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | The project is classified as category B for environmental safeguards. Twenty initial environmental examinations (IEEs) with environmental management plans (EMPs) have been prepared for the subprojects in accordance with ADB's Safeguard Policy Statement (2009). The draft IEEs for the sample subprojects concluded that no significant negative impacts are to be expected and that the project will yield a substantial net environmental benefit. Any impacts during construction and operation will be avoided or mitigated through measures outlined in the EMP, which will form part of all bidding documents. Measures used in the sample subprojects include (i) application of sufficient buffer zones between WSS facilities, and use of liners to prevent contamination of water sources; and (ii) locating subprojects outside sensitive areas. An environmental assessment and review framework is prepared to guide environmental assessment of future subprojects. Loan consultants have been supporting the environmental focal of the project management office and its regional counterparts, and field-based EMP Monitors, in managing environmental impacts. Environmental reporting to ADB will be semiannual. |
| Involuntary Resettlement | The project is categorized as B for involuntary resettlement. No permanent land acquisition or physical displacement was found to be required for the sample subprojects in Chandrauta, Charali, and Mahendranagar. The land required for the facilities is mostly provided through negotiated settlement, or is a donation by the community organizations or private landowners, or is government land. Three resettlement plans was prepared for Khalanga (Salyan), Mahendranagar, and Suda town projects. Similarly, due diligence reports were prepared for remaining seventeen towns. No temporary impacts are expected from the construction of water supply pipes. A resettlement framework is prepared for the project to provide guidance in preparing future subprojects or in the event of unidentified involuntary resettlement impacts occurring during project implementation. |
| Indigenous Peoples | The project is categorized as C for impacts on indigenous peoples based on the review of the sample subprojects. An indigenous peoples planning framework (IPPF) is prepared to provide guidance in the remaining project towns, and to ensure that livelihoods, culture, dignity, and territories are not compromised by project activities. However, no any impacts on indigenous people is identified hence no indigenous people's plan is prepared. |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | Stakeholder participation and communication plan and strategy will be formulated at the initial design stage. The national social safeguard and resettlement specialists under the PPTA will be based in the field office for the sample subproject towns to ensure timely attention to issues concerning participation. For the remaining subproject towns, loan consultant will ensure the compliance with the stakeholder participation and communication plan and strategy by providing quarterly updates to ADB in the progress report.The main stakeholders of the project are small town residents, local business communities, users' committees, government officials, civil society organizations and development partners. The project design is finalized through a process that involves continuous consultation between government and development partners, socio-economic surveys for the residents and business communities and communications with users' committees to determine feasibility of project design.The project is to provide water supply services in the subproject area. Therefore, determination of the subproject area is important as not to exclude the poor, women-headed and minority households from access to improved services. Consultation with the poor and excluded can be engaged through focus group discussion, interviews and local meetings and can be separately arranged for separate focus groups to maintain appropriate level of sensitivity. |
| During Project Implementation | The project is in line with ADB's water and urban operational plans, and its 2013-2017 country partnership strategy for Nepal, which states that ADB will support (i) improvements in inclusive access to and service levels of WSS in small towns, and (ii) institutional strengthening and capacity building of local governments, service providers, and the Town Development Fund. |
| Business Opportunities | |
|---|---|
| Consulting Services | All consultants will be recruited according to ADB's Guidelines on the Use of Consultants. |
| Procurement | All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines. ADBs Procurement guidelines will also apply to expenditure incurred under OPEC Fund for International Development (OFID) loan. International competitive bidding (ICB) procedures will be used for any civil works contract estimated to cost more than $5 million, and any goods contract estimated to cost more than $500,000, National competitive bidding (NCB) procedures will be used for any civil works contract estimated to cost $5 million or less and any goods contract estimated to cost $500,000 or less. Shopping will be used for any civil works or goods contract estimated to cost less than $100,000. Community participation will be used for civil works and goods contracts estimated to cost less than $10,000. Community participation will be used for very small contracts to be carried out by the local community and contractors or water users' association or local bodies for works such as fencing, preparation of drying beds for sludge, etc. As ADB is administering cofinancing resources for operations financed by the ADF resources, universal procurement will apply to all procurement packages to be financed under this Project. |
| Responsible ADB Officer | Paudel, Shiva Prasad |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Nepal Resident Mission |
| Executing Agencies |
Ministry of Water Supply (formerly Ministry of Water Supply and Sanitation) Singha Durbar |
| Timetable | |
|---|---|
| Concept Clearance | 05 Apr 2013 |
| Fact Finding | 31 Mar 2014 to 11 Apr 2014 |
| MRM | 30 Jun 2014 |
| Approval | 10 Mar 2015 |
| Last Review Mission | - |
| Last PDS Update | 11 Dec 2021 |
Grant 0405-NEP
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 19 Sep 2014 | 25 Nov 2014 | 23 Feb 2015 | 30 Jun 2019 | 31 Dec 2020 | 23 Mar 2021 |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 1.30 | Cumulative Contract Awards | |||
| ADB | 0.00 | 04 Feb 2022 | 0.00 | 0.94 | 72% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 1.30 | 04 Feb 2022 | 0.00 | 0.94 | 72% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
Loan 3157-NEP
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 19 Sep 2014 | 25 Nov 2014 | 23 Feb 2015 | 31 Jul 2021 | - | 15 Dec 2021 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 87.70 | Cumulative Contract Awards | |||
| ADB | 60.00 | 04 Feb 2022 | 44.87 | 0.00 | 100% |
| Counterpart | 27.70 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 04 Feb 2022 | 44.87 | 0.00 | 100% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
Loan 8304-NEP
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 10 Mar 2015 | 22 Sep 2015 | 04 Feb 2016 | 28 Feb 2020 | 30 Nov 2021 | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 20.00 | Cumulative Contract Awards | |||
| ADB | 0.00 | 04 Feb 2022 | 0.00 | 16.68 | 83% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 20.00 | 04 Feb 2022 | 0.00 | 15.24 | 76% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
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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Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| DESIGN, SUPPLY, INSTALLATION AND OPERATION OF SCAD A (TSTWSSSP?ICB-05/SCADA) | Loan 3157 | 31 Dec 2019 | XI'AN/SAISANKET JV | LALITPUR NEPAL | Ministry of Urban Development | 2,008,717.40 | 1,707,985.71 |
| INDIVIDUAL CONSULTING SERVICES FOR TEAM LEADER/WAT ER SUPPLY & SANITATION UTILITY EXPERT FOR ISSAU | Loan 3157 | 11 Oct 2018 | RAMDEEP SAH | CHABHIL, KATHMANDU NEPAL | Ministry of Urban Development | 118,807.00 | 100,048.00 |
| CONTRACT FOR CONSTRUCTION AND O&M OF WATER SUPPLY AND SANITATION SUBPROJECT IN KATAHARIYA, RAUTAHAT | Loan 3157 | 11 Dec 2017 | M/S RAMAN-ASHISH JV | MAHARAJGUNJ, KATHMANDU NEPAL | Ministry of Urban Development | 1,374,031.00 | 1,016,074.00 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Third Small Towns Water Supply and Sanitation Sector Project: Procurement Plan | Procurement Plans | Dec 2020 |