ADB is helping Nepal improve access to water and sanitation services in small towns throughout the country. The project will strengthen the urban water supply and sanitation sector, assist in establishing policies and service standards, upgrade infrastructure and services in about 20 towns, and improve governance and capacity for project management and operation.
|Project Name||Second Small Towns Water Supply and Sanitation Sector Project|
|Project Type / Modality of Assistance||Grant
|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 sanitation - Urban water supply
|Gender Equity and Mainstreaming||Gender equity|
|Description||The Project has three components. Component 1 will develop an efficient, effective, and accountable urban water supply and sanitation sector by establishing and implementing policies, establishing service standards, and enhancing sector coordination. Component 2 will entail development of safe, accessible, and adequate water supply and sanitation facilities in about 20 small towns. Component 3 will strengthen governance and capacity for project management and operation.|
|Project Rationale and Linkage to Country/Regional Strategy||Although Nepal is considered ahead of its Millennium Development Goal (MDG) target of 73% (95% for urban and 72% for rural) in terms of access to an improved water source, the Nepal Millennium Development Goals: Progress Report by the United Nations Development Programme (UNDP) published in 2005 cautions against optimism because of serious functionality problems. Based on a survey in 2002, it was reported that water availability was only intermittent in many areas, half of the gravity flow systems in the hills needed major repair, and more than half of the tubewells in the Terai were contaminated. UNDP concludes that Nepal's coverage could be considerably lower if the strict definition of access to safe drinking water were applied. Access to improved sanitation services was estimated to be only 27% in 2006 according to the World Health Organization and United Nations Children's Fund, and the MDG target of 53% (67% for urban and 52% for rural) for sanitation will not be met, if the rate of increase in coverage between 2000 and 2006 is maintained until 2015. Currently, 265 towns (153 Terai and 112 hill towns) are classified as small towns in Nepal, with a total population of 3.6 million. These towns are being developed haphazardly, although they are playing an important role in creating economic links between the rural areas and the country's urban economy. Water supply in many small towns is deficient both in terms of coverage
and water quality. There is serious and urgent need to improve water supply and sanitation services in small towns.
|Impact||Improved health and economic and environmental living conditions of people in small towns in Nepal.|
|Description of Outcome||Improved, affordable, and sustainable water supply and sanitation services which are governed and managed by locally accountable representative bodies.|
|Progress Toward Outcome||The construction of 20 town projects has been completed and entered second (operation and maintenance by the contractor for one year) stage. Construction is ongoing for 1 town project (Baitadi) and expected to enter second stage by end November 2017. It is very likely that the project will achieve its outcome to provide an improved water supply services to about 370,099. The Project has established a project performance management system based on the project design and monitoring framework to consolidate town wise data and monitor results at the project as well as town level.|
|Description of Project Outputs||
1. Efficient, effective, and accountable urban water supply and sanitation sector developed.
2. Safe, accessible, and adequate water supply and sanitation facilities developed in 20 towns.
2.1 Water supply facilities expanded and rehabilitated
2.2 Sanitation facilities expanded and improved
2.3 Households connected to the water supply and sanitation system
3. Governance and capacity strengthened for project management and operation.
3.1 WUSCs strengthened and fully address concerns of the diverse groups of users
3.2 Regional monitoring and supervision offices/WSSDOs strengthened
3.3 Public awareness on health and hygiene increased
|Status of Implementation Progress (Outputs, Activities, and Issues)||
Output 1: Efficient, effective, and accountable urban water supply and sanitation sector developed.
The Project has been supporting sector development spearheaded by the MOUD, the sector efficiency improvement unit (SEIU). GON established the SEIU on 31 July 2009 and institutionalized it as a permanent unit of the MOUD in June 2012. Major activities undertaken by SEIU so far are as below:
- Data management system developed by SEIU and National Management Information Project (NMIP) is linked to technical audit and advisory to WUSC/operator, as per GoN Operational Directive. The data book files have been fully automated in Access software, and a web-based version was completed in August 2014.
- SEIU was active in organizing sector coordination activities, supported policy development and drafted an overarching WASH Act. It also provided regular advice on WASH matters (tariff study, rural water supply modality study, formulation of third phase of the Fund Board project, etc.).
- GON has approved the operational directives for WS schemes > 50 taps and has developed guidelines. For small towns and larger water supply schemes, SEIU has started benchmarking of Water Supply Service Providers and providing workshops and trainings to the Service Providers. The first Data Book published in March 2014, covered 32 water supply service providers. The second Data Book covering 63 schemes was published in April 2015.
- SEIU has produced a business plan, which was finalized after discussion with various Development Partners.
- Performance assessments of 29 small towns were conducted. TDF and DWSS are providing support to improve water service standard.
Output 2-Safe, accessible, and adequate water supply and sanitation facilities developed in 20 towns
- Out of 21 water supply town projects, 9 have already crossed the defect liability period (DLP) of one year and are now operated by the water users and sanitation committees, 8 town projects are in operation and maintenance phase (being operated by the contractors for one year), 3 are in DLP, and 1 (Narayan town project) is being implemented with a physical progress of 95%.
- Out of 2 sanitation subprojects (dealing with surface water drainage, public toilets, solid waste management and wastewater/septage management), one (Indrapur sanitation subproject) is in DLP, and another (Vyas subproject) is under implementation.
- 13town project areas have already been declared ODF areas.
- The Project proposes a strategy for using explicit performance-based grants to deliver water supply and sanitation services primarily to the poor and vulnerable groups. At household level, it delivers the sanitation facility to marginalized section of people by constructing private pit latrines and compost pits through Output Based Aid (OBA) program. Altogether, 5,056 numbers of permanent Household Latrines and 4,728 tap connections have been constructed so far through OBA.
- Project physical components' progress:
1,785 km distribution pipe network installed.
51,668 HHs have water supply connections.
9,784 HHs served through OBA for water and sanitation connection.
35,200 HHs served with improved sanitation connection.
49 public/ institutional toilets constructed, and
37.82 km storm water drainage completed
Output 3- Strengthening Governance and Capacity for Project Management and Operation
This component aims to support smooth and effective Project implementation and operation including capacity building. Project Management Consultants (PMC) support the PMO in overall project implementation, while Design and Supervision Consultants provide engineering design and construction supervision and management support at the town level. In addition, several training activities are organized by the PMO, while town level training activities are carried out by concerned NGOs and Design and Supervision Consultants (DSCs). Some of the major activities under this component are as follow.
- Project Management Office/Project Management Consultants, Water Supply and Sanitation Division/Subdivision Offices conducted 33 numbers of training and orientations. Altogether 953 participants including 715 (75%) male and 238 (26%) female participated in the training activities. The 1-7 days training to WUSC members, NGO professional staff, Division Chief, PISU Engineer etc. were conducted on solid waste management, Contract management, Water quality, Office Management, Account Training etc. 3169 participants, 1561 (49.3%) male and 1607 (50.7%) female, participated on WUSC, GESI, Health worker, Solid waste Management and school teacher training. Trainings were conducted by NGOs in respective town projects. In total, 113 trainings were conducted in all 21 town projects of Batch I & II.
- Training/orientations were effective and useful to the stakeholders. It helped to raise awareness and practical information on health and hygiene, sanitation, solid waste management, OBA implementation, role and responsibility of stakeholders and overall project aspects.
- Similarly, a three days Women Leadership training (June 11-13, 2014) was conducted where 25 women participated from various town projects. The major topics of the Training program were GESI, leadership, motivation, grievance handling, decision-making, meeting handling, and overall role in WUSC.
- In each town, two days OBA Implementation training/workshop was conducted on different dates. Altogether 686 including 169 (25%) female and 517 (75%) male participants participated in OBA workshops/orientation.
|Geographical Location||whole country|
|Summary of Environmental and Social Aspects|
|Environmental Aspects||The Project's category for Environment is B. IEE with EMP for all the town projects have been prepared. Project Management Office monitors the status of environmental aspects as per EMP.|
|Involuntary Resettlement||The Project's category for involuntary resettlement is B.|
|Indigenous Peoples||The Project's category for indigenous people is B.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Consultations with various stakeholders were done during PPTA. The comments and suggestions made have been reflected in the design of sub projects.|
|During Project Implementation||Stakeholder participation and consultation during the project implementation is ensured through the likes of grievance redress mechanism at town level. GESI action plan is being implemented and also regularly updated.|
Consultants were recruited in line with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). Consulting services are provided to (i) support sector development; (ii) support project management, monitoring, and evaluation at the central level; (iii) carry out design and construction supervision for individual subprojects, including monitoring for safeguards compliance; and (iv) provide training and capacity development programs for WUSCs and other institutions on financial, technical, and managerial aspects. An estimated 2,170 person-months (56 international and 2,114 national) of consulting services are earmarked.
Sector efficiency improvement unit consultant has been mobilized. A project management consultant is working at the central level. 11 local NGOs and 3 design and supervision consultants have been mobilized for Batch I towns. 12 NGOs and 4 design and supervision consultants have been mobilized for Batch II towns.
All procurement to be financed under an ADB grant are being carried out in accordance with ADB's Procurement Guidelines (April 2015, as amended from time to time). The civil works contract, which will include the technical operation of the system for 1 year after completion of the construction, will be made for each town, combining water supply and sanitation facilities. Civil works contracts valued at more than $1 million equivalent and equipment contracts valued at more than $500,000 will be undertaken through international competitive bidding procedures, while civil works contracts valued at $1 million equivalent or less and equipment contracts valued at $500,000 or less will be procured following national competitive bidding procedures generally in accordance with the Government's Public Procurement Regulations 2007 and Public Procurement Act 2007 and acceptable to ADB. Packages valued at $100,000 or less will be procured under shopping procedures.
21 contracts for civil works for water supply and 2 contracts for sanitation in town sub projects have been awarded.
|Responsible ADB Officer||Karkee, Mohan Bahadur|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||Nepal Resident Mission|
Department of Water Supply and Sewerage
Mr. Ram Deep Sah
Panipokhari, Kathmandu Ministry of Physical Infrastructure and Transport
Mr. Krishna Acharya
Singhdurbar, Kathmandu Ministry of Urban Development
Singhadurbar, Kathmandu, Nepal
|Concept Clearance||23 Feb 2009|
|Fact Finding||01 Mar 2009 to 16 Mar 2009|
|MRM||29 May 2009|
|Approval||17 Sep 2009|
|Last Review Mission||-|
|PDS Creation Date||16 Apr 2009|
|Last PDS Update||06 Sep 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|17 Sep 2009||27 Nov 2009||14 Jan 2010||31 Mar 2016||31 Dec 2017||-|
|Financing Plan||Grant Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||71.70||Cumulative Contract Awards|
|ADB||45.10||17 Sep 2009||43.55||0.00||97%|
|Cofinancing||0.00||17 Sep 2009||41.62||0.00||92%|
|Status of Covenants|
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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|Title||Document Type||Document Date|
|Second Small Towns Water Supply and Sanitation Sector Project: Procurement Plan||Procurement Plans||Jun 2015|
|Grant Agreement (Special Operations) for Second Small Towns Water Supply and Sanitation Sector Project between Nepal and Asian Development Bank dated 27 November 2009||Grant Agreement||Nov 2009|
|Project Agreement for Second Small Towns Water Supply and Sanitation Sector Project between Asian Development Bank and Town Development Fund dated 27 November 2009||Project/Program Agreements||Nov 2009|
|Second Small Towns Water Supply and Sanitation Sector Project||Reports and Recommendations of the President||Aug 2009|
|Second Small Towns Water Supply and Sanitation Sector Project||Design and Monitoring Frameworks||May 2009|
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.
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