Announcement of Seven Million Eighty Thousand US Dollars Credit for a Water Supply and Sewerage Project in Nepal on May 2, 1974

• INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 IDA Press Release No. 74/18 Subject: $7.8 million credit for a Water May 2, 1974 Supply and Sewerage Project in Nepal Nepal will be able to improve and expand the water supply and sewerage system in Kathmandu, the capital, the Kathmandu Valley and Pokhara, a tourism center, with the help of a credit of $7 .8 million from the International Develop- ment Association (IDA), an affiliate of the World Bank. The $10. 4 million project, when completed in 1978, will bring social and health benefits to the inhabitants of the project areas. It will provide an adequate and safe water supply to 327,000 people, or 95% of the population in the Kathmandu Valley and Pokhara and improve the sanitary conditions in Kathmandu a~d nearby Lalitpur. The project will also help to develop Nepal's Water Supply and Sewerage Board (WSSB) as an institution capable of taking responsibility for water supply and sewerage services throughout the country, and finance the prepara- tion of a second stage water supply and sewerage project. • The water supply and sewerage system in Nepal is in an early stage of develop- ment. Only about 5% of the population have piped water supplies and the majority of these live in the larger urban areas. The existing water supply systems are, inadequate in terms of source, reservoir capacity or standby pumping capacity. Water supply hours are consequently restricted. Apart from a small section of Kathmandu, there are no sewerage disposal facilities. The project being financed by IDA is the first stage of a 25-year plan for · water supply and sewerage prepared for Nepal by the United Nations Development Progranune (UNDP) and the World Health Organization (WHO). Execution of the project will be the responsibility of the WSSB. The water supply component in- cludes the development of two new spring sources for Kathmandu and Pokhara; a water pumping station; transmission and distribution pipelines; reservoir; and repairs to existing system. The sewerage component includes about 40 kilometers of sewers, a sewerage pumping station and two waste stabilization lagoons for Kathmandu and Lalitpur. WSSB staff will be trained in administration, accounting, engineering, operations and maintenance. IDA credit of $7.8 million will finance about 75% of the cost of the project including the foreign exchange component of $6. 5 million. The IDA credit to the Government of Nepal is for a term of 50 years including a 10-year grace period. It is interest free except for a service charge of 3/4 of 1% to meet IDA's administrative costs. - 0 - • Note: Money figures are expressed in US dollar equivalents.  TECHNICAL DATA May 2, 1974 • PROJECT: Water Supply and Sewerage. COUNTRY: Nepal TOTAL COST: $10.37 million IDA FINANCING: $7.8 million credit, term of 50 years, including a 10- year grace period. It ·is interest free except for a service charge of 3/4 of 1% to meet IDA 's administrative costs. OTHER FINANCING: Government of Nepal RELENDING TERMS: The Government of Nepal will onlend the proceeds of the IDA credit to the Water Supply and Sewerage Board at 6% interest per annum for 25 years including 5 years of grace. IMPLEMENTING ORGANIZATION: Water Supply and Sewerage Board, Kathmandu• Nepal • PROJECT DESCRIPTION: Improvement and expansion of water supply and sewerage facilities in Kathmandu valley and Pokhara. It includes construction and equipment of wells; a pumping station; transmission and distribution of pipelines; a reservoir; and repairs to existing system. Sewerage component includes about 40 kilometers of sewers; a sewage pumping station and two waste stablization lagoons. PROCUREMENT: Goods and services required for the project (except for consultants' services) will be by international competitive bidding, ex- cept for the following which may be either by force account or procured by the Borrower according to the usual governmental procedures: (i) Contracts for civil works for water supply and sewerage extensions, house connections and metering, small repairs, improvements and small buildings each costing less than the equivalent of $50,000; (ii) Contracts for electricity supplies each costing less than the equivalent of 50,000; and (iii) items of equipment each costing less than the equivalent of $25,000. The total to be expended on such contracts will not exceed the equivalent of $250,000. CONSULTANTS: (1) for design, preparation of bidding docunients, bid evaluation and supervision of construction of the project; (2) for a tariff study; and (3) for feasibility studies and preliminary and final engineering for the next stage project. ESTIMATED CLOSING DATE: 19 78 •