Fiscal Nepal
First Business News Portal in English from Nepal
Mr. Arnaud Cauchois, ADB Nepal Country Director
KATHMANDU: The Asian Development Bank (ADB) has approved a $115 million concessional loan to improve resilient water supply and sanitation services and strengthen institutional capacities in rapidly growing municipalities across Nepal.
The Integrated Water Supply and Sewerage Management (Sector) Project is expected to directly benefit more than 850,000 people in 13 municipalities.
“Rapid urbanization in Nepal is placing increasing pressure on the delivery of crucial urban services, leaving many communities with unreliable water supply and limited sanitation access,” said ADB Country Director for Nepal Arnaud Cauchois. “This project will expand access to safe and reliable water and sanitation services, strengthen resilience to natural hazards and disaster risks, and support healthier, more livable, and sustainable cities while promoting economic opportunities and inclusive growth.”
The project will expand water supply coverage by constructing about 64 tube wells, treatment facilities with a combined capacity of about 60 million liters per day, and approximately 2,125 kilometers of water distribution network. Around 72,000 households, including vulnerable and women-headed households, will receive pressurized piped water connections.
Sanitation services will also be expanded and improved in selected municipalities through upgraded sewerage and drainage networks, and new or rehabilitated wastewater treatment plants, and fecal sludge treatment facilities. More than 120,000 properties are expected to gain access to enhanced sanitation services.
The project integrates adaptation and mitigation measures, supported by $75.27 million in dedicated funding, and is expected to reduce greenhouse gas emissions by more than 22,000 tons of carbon dioxide equivalent annually. The project will also bolster municipal capacity in asset management, financial sustainability, digital systems, and public awareness on hygiene and hazard risks.
The project supports the government’s The Sixteenth Plan, aligns with ADB’s country partnership strategy for Nepal, and builds on ADB’s long-standing partnership with the country toward more integrated and sustainable wastewater management systems.
ADB’s financing for the project is complemented by $28.8 million in government counterpart funding. The Ministry of Infrastructure Development will implement the project, with support from the Department of Water Supply and Sewerage Management and participating municipalities. The project, with a total value of $143.8 million, is scheduled for completion by June 2032.
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