Nepal : Integrated Water Supply and Sewerage Management (Sector) Project

Water and other urban infrastructure and services / Urban flood protection - Urban sanitation - Urban sewerage - Urban solid waste management - Urban water supply

The government has requested ADB support to improve urban services in (i) secondary towns including provincial headquarters, and towns of cultural, touristic, and economic importance; and (ii) small towns that are being prepared under the ongoing Urban Water Supply and Sanitation (Sector) Project (UWSSP). Selection criteria for supported subprojects will be identified before fact-finding.

The project will be aligned with the following impact: public health in secondary and small towns improved. The outcome of the project is access to resilient, inclusive, and sustainable urban services in secondary and small towns increased. The outcome will be achieved through the following three outputs:

Output 1: Resilient urban water infrastructure commissioned. The project will support the development of gender equality and social inclusion (GESI)-responsive, climate- and disaster-resilient water supply and drainage infrastructure and systems in secondary and small towns. This is broadly expected to include the construction of or improvements to raw water intake systems, water treatment plants, storage reservoirs, transmission and distribution networks (including district metering areas to enhance system efficiency), metered household connections, and natural and artificial drainage systems.

Output 2: Sanitation infrastructure and systems strengthened. The project will support the development of GESI-responsive, climate- and disaster-resilient sanitation infrastructure and systems in secondary and small towns. This is expected to include (i) construction of or improvements to sewers, pumping stations, and service connections; (ii) supply of fecal sludge emptying and transport equipment where sewers are not feasible; (iii) construction of or improvements to sewage and fecal sludge treatment plants, and nature-based treatment systems such as constructed wetlands; and (iv) design of solid waste management interventions. Strengthened sanitation infrastructure and systems will provide better services to all people, especially benefitting women, children, the poor, and the disadvantaged.

Output 3: Enabling environment for sustainable and resilient urban services strengthened. This is expected to include various initiatives designed to strengthen the capacity of government, municipalities, TDF, communities, and other stakeholders to deliver, manage, maintain, and strengthen assets and systems developed through the project, and to be more resilient to the impacts of climate change and natural hazards. Specific initiatives may include (i) GESI-responsive multi-hazard risk management planning for new and existing urban assets, (ii) hygiene awareness and behavioral change campaigns, and (iii) advocacy to promote willingness to pay and financial sustainability of urban services.

The cause-effect relationships between access to urban services and public health are well established and are recognized in the government's policy frameworks for the WASH sector. The main challenge in the realization of the project impact is expected to be the sustainability of project interventions, in particular, the long-term O&M of assets, its associated funding, and sustaining positive hygiene behaviors. This assumption is supported by a review of lessons learned from water and sanitation projects in Nepal and South Asia. For this reason, the enabling environment will be a strong focus in due diligence and project design.

Nepal has a population of 29 million and is experiencing rapid urbanization as a result of migration, natural increase, and reclassification. Unplanned growth has widened the gap in the provision of urban services and resulted in sprawling settlements, increased public health risks, increased vulnerability to climate change and impacts of natural hazards, and a rise in urban poverty. Improving access to services for the urban population, including the poor and vulnerable, and ensuring sustainable, and high-quality service delivery remains a key development challenge. In particular, inequitable access to services that have been devolved to subnational governments remains a major impediment to inclusive and sustainable growth.

Water supply. Ensuring equitable and affordable access to water supply in small towns and emerging provincial capitals is a high priority for the government. Although 90% of the urban population has access to a water supply that meets basic service standards, only 25% have access to a safely managed service. The government aims to improve water quality, functionality, and sustainability of systems and quality of services provided, and to reduce inequality in services, noting significant disparities in access to services by geography, income, and ethnicity. Women are disproportionately affected by poor water supply given their role in collecting water and other care work, while safe water and good hygiene are essential for the development of children.

Sanitation. Since 2000, a third of the population of Nepal has stopped practicing open defecation. However, 83% of Nepal's households are dependent on on-site sanitation systems, and only 11% of households are connected to sewers. Critical gaps in the sanitation service chain persist, with untreated wastewater often seeping into the ground or being discharged into water courses. The stormwater drainage network often consists of roadside drains with inadequate design, and which may be contaminated with sewage. Poor drainage contributes to waterlogging and unhygienic conditions, while inadequate solid waste management systems contribute to garbage clogging in drains.

Climate Change and disaster risks. Nepal is expected to experience increased rainfall variability resulting from climate change and rising temperatures. Natural hazards such as drought, heatwave, river flooding, and glacial lake outburst flooding are all projected to intensify over the 21st century, potentially exacerbating disaster risk levels and putting human life at risk. Nepal also experiences earthquakes, which can trigger landslides, floods, and fires. Raw water sources and conveyance systems have been shown to be highly vulnerable to events of flash floods, earthquakes, and other natural hazards. Extreme weather events and changes in precipitation can also affect sanitation systems and the infrastructure on which they depend.

Public health in secondary and small towns improved

Access to resilient, inclusive and sustainable urban services in secondary and small towns increased

Resilient urban water infrastructure commissioned

Sanitation infrastructure and systems strengthened

Enabling environment for sustainable and resilient urban services strengthened

DWSSM has extensive experience with ADB procurement, including through ongoing projects. From the initial long-list of secondary towns, 6 (Biratnagar, Dharan, Birgunj, Janakpur, Butwal, and Nepalgunj ) has experience with ADB projects. The capacity of other implementing agencies will be assessed during SPP preparation. No complex contracts are anticipated, with the main packages expected to include works and equipment (water and sanitation infrastructure and assets) and consulting services (project management, supervision and capacity building). No packages are expected to be more than $20m.

DWSSM has recruited two firms using its own financing to assist in the preparation of bidding documents. Further support, particularly to new implementing agencies, is expected to be required to oversee procurement up to contract signature. This will be reviewed through the strategic procurement planning process.

National e-GP system may be applicable for the procurement of works and goods up to $100 million. The government's portal site for e-GP is https://www.bolpatra.gov.np.