Nepal: Kathmandu Valley Water Supply Improvement Project

Project Name

Kathmandu Valley Water Supply Improvement Project

Project Number

34304-043

Country

Nepal

Project Status

Active

Project Type / Modality of

Assistance

Loan

Source of Funding / Amount

Loan 2776-NEP: Kathmandu Valley Water Supply Improvement Project (formerly

Kathmandu Valley Water Distribution, Sewerage, and Urban Development)
Asian Development Fund

US$ 80.00 million

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

Eective 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 eciency 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 aordable,
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 nd clean water for their families.

Impact

Sustainable water supply services for residents of Kathmandu Valley

Project Outcome
Description of Outcome

Improved access, eciency, 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.

Implementation Progress
Description of Project
Outputs

Water supply infrastructure rehabilitated and expanded

Operating and nancial 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 eectively 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.
1.2 The three major civil works contracts for the distribution network improvement for ecient NRW
management, amounting to approximately $59.75 million, were awarded from April to September 2013,
and are in various stages of implementation.The drilling and development of tube-wells package was
awarded in July 2013 and physical works are in progress. Target completions of these contracts are from
April to November 2016.
1.3 The three major civil works contracts for the Laying of Bulk Distribution System and Construction of
Service Reservoirs (BDS-SRT) works, 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.
1.4. Supply and delivery of various equipment (spare pipes, ttings & appurtenances; jeeps, cars,
pickups, motorcycles) have been completed.
2. Operating and nancial 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) eective 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 leaets, brochures, and a quarterly newsletter to disseminate the
good outcomes of project works was launched; (iii) eective 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 aected 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. KUKL's' audited nancial 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 tari structure for the Kathmandu Valley was approved by Water Supply Tari Fixation
commission (WSTFC) on 14 July 2013 with conditions to be fullled by KUKL for service improvement. This
will help KUKL in improving its operations and service delivery to citizens.

Geographical Location

Safeguard Categories
Environment

Involuntary Resettlement

Indigenous Peoples

Summary of Environmental and Social Aspects

Environmental
Aspects

The project is classied 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 signicant adverse impacts are anticipated and
that the net environmental benets 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 dened through detailed design. Additional oversight and mitigation measures will be taken
for pipe-laying works along roads passing through heritage areas including permission from the Department of
Archaeology prior to construction.

Involuntary
Resettlement

The project is classied 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 dened through detailed design. Temporary impacts will be limited
and compensation for lost income will be provided to those aected 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-nding and post fact-nding 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 benets of the project, with particular attention given to the poor and the sociallyexcluded 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 benets of the project, with particular attention given to the poor and the sociallyexcluded sections of the population. At the same time, full involvement of citizens can only ensure realization of
benets 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 eorts 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 specically to implement CAPP and GESI action plans.

Business Opportunities
Consulting Services Design, Supervision, and Management Consultant (QCBS) - 620 person-months - $4.33 million in total
Community Awareness and Participation Consultant (QCBS) - 301 person-months - $0.88 million in total
Procurement

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 Sta
Responsible ADB Ocer

Vivian Castro-Wooldridge

Responsible ADB Department

South Asia Department

Responsible ADB Division

Urban Development and Water Division, SARD

Executing Agencies

Ministry of Water Supply and Sanitation

ACHARYASP@HOTMAIL.COM
Singha Durbar

Timetable
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

30 Mar 2016

Loan 2776-NEP
Milestones
Approval
16 Sep 2011

Signing Date
10 Nov 2011

Closing

Eectivity Date
07 Feb 2012

Original
30 Jun 2017

Financing Plan

Actual

Loan Utilization

Total (Amount in US$ million)

Project Cost

Revised

Date
130.00

ADB

Others

Cumulative Contract Awards

Net Percentage

ADB

80.00

16 Sep 2011

Counterpart

50.00

Cumulative Disbursements

Conancing

0.00

16 Sep 2011

62.23

40.27

Project Page

http://www.adb.org/projects/34304-043/main

Request for Information

http://www.adb.org/forms/request-information-form?subject=34304-043

Date Generated

24 August 2016

0.00

0.00

86%

56%

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