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 Name | Third Small Towns Water Supply and Sanitation Sector Project | ||||||||||||
| Project Number | 35173-013 | ||||||||||||
| Country | 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 | 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 26 small towns, involving 1,450 kilometers of water supply pipelines; 78,000 household connections; and 26 water treatment systems with an estimated capacity of 50,000 cubic meters per day. The project is also providing about 20,300 household toilets with septic tanks, as well as provision of septic management facilities and equipment. Drainage systems and master plans are also being provided 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 | Construction activities are now ongoing. |
| 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) | All contracts have been awarded for the construction of water supply and sanitation systems in 18 towns. On the other hand, contracts for the rehabilitation of existing water supply schemes in 27 towns have been awarded and construction of works are underway. Consultants for WRDSMC, ERDSMC, and AFDOB have been recruited and mobilized. Recruitment of consultants for the ISSAC package is underway. |
| 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. Thirty draft initial environmental examinations (IEEs) with environmental management plans (EMPs) have been prepared for the subprojects in accordance with ADB's Safeguard Policy Statement (2009). They are publicly disclosed. They will be further updated during the detailed engineering design for each subproject and included in the tender documents. 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. A draft environmental assessment and review framework is prepared to guide environmental assessment of future subprojects. During implementation, loan consultants will support the environmental officers 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. In Mahendranagar, one household headed by a woman will lose access to the land to construct subproject facilities. A draft resettlement plan is prepared to ensure restoration of the affected families livelihood. Thirteen safeguards due diligence reports are prepared for sample subprojects in Chandrauta and Charali to ensure that land donations comply with ADB's Safeguard Policy Statement (2009) principles. No temporary impacts are expected from the construction of water supply pipes. The draft resettlement plans will be updated after detailed engineering design. 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. Indigenous people plan (IPP) is prepared for the subproject following the IPPF when the impacts are significant or are not related to involuntary resettlement, otherwise specific actions for the affected indigenous community or people can be incorporated into the resettlement plan. |
| 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 $10,000. Community participation will be used for very small contracts to be carried out by the local community and contractors or water users' association or local bodies for works such as fencing, preparation of drying beds for sludge, etc. As ADB is administering cofinancing resources for operations financed by the ADF resources, universal procurement will apply to all procurement packages to be financed under this Project. |
| Responsible ADB Officer | Pokhrel, Neeta |
| Responsible ADB Department | South Asia Department |
| Responsible ADB Division | Urban Development and Water Division, SARD |
| Executing Agencies |
Ministry of Water Supply and Sanitation Singha Durbar |
| Timetable | |
|---|---|
| Concept Clearance | 05 Apr 2013 |
| Fact Finding | 31 Mar 2014 to 11 Apr 2014 |
| MRM | 30 Jun 2014 |
| Approval | 10 Mar 2015 |
| Last Review Mission | - |
| Last PDS Update | 13 Mar 2017 |
Grant 0405-NEP
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 19 Sep 2014 | 25 Nov 2014 | 23 Feb 2015 | 30 Jun 2019 | - | - |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 1.30 | Cumulative Contract Awards | |||
| ADB | 0.00 | 19 Sep 2014 | 0.00 | 0.00 | 0% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 1.30 | 19 Sep 2014 | 0.00 | 0.00 | 0% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | 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 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 87.70 | Cumulative Contract Awards | |||
| ADB | 60.00 | 19 Sep 2014 | 0.00 | 41.30 | 75% |
| Counterpart | 27.70 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 19 Sep 2014 | 0.00 | 23.08 | 42% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | 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 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 20.00 | Cumulative Contract Awards | |||
| ADB | 0.00 | 10 Mar 2015 | 0.00 | 13.74 | 69% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 20.00 | 10 Mar 2015 | 0.00 | 1.22 | 6% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | 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.
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.
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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
None currently available.
Related Publications
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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