Announcement of Twenty-Seven Million US Dollars IDA Credit for a Water and Sewerage Project in Nepal on July 31, 1980

FOR IMMEDIATE RELEASE. •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 I.DA NEWS RELEASE N0.81/4 July 31, 1980 $27 MILLION IDA CREDIT FOR A WATER AND SEWERAGE PROJECT IN NEPAL The International Development Association (IDA), the World Bank's affiliate for concessionary lending, has approved a credit of $27 million for a Third Water Supply and Sewerage project in Nepal. The $33.3 mill ion project is part of the Nepal Government's over- all plans to provide safe water supply to all urban population by 1990. Included in the project are extensions of water supply source and distribu- tion works in the Kathmandu Valley, Pokhara, Biratnagar and Birganj towns, where such systems have been or are now being constructed under two previous projects. Also included are augmentation and extension of water supply sys- tems in six additional smaller towns and extension of the sewerage network in the Kathmandu Valley. On completion of the project, 97% of the population in the Kathmandu Valley and Pokhara and 60% of the population in other towns • are expected to have access to potable water. Sewerage service will be re- stored and extended in the central areas of Kathmandu City and Lal itpur, almost tripling the population served from about 25,000 to 67,000. For water supply, tubewells, river/spring intakes, transmission mains, a new treatment plant, chlorination stations, primary and secondary network distribution mains, and service reservoirs will be constructed. About 17,500 water meters will be supplied and used in the on-going meter connection program. For sewerage, trunk sewers, laterals, overflow structures, and opera- tional buildings will be constructed. Consultant services will be provided to help in the preliminary and final engineering and general construction supervision as well as to prepare feasibility studies for projects in 10 additional towns which are to be as~ signed to the Water Supply and Sewerage Board and for which water supply proj- ects may be undertaken in the future. In addition, fellowships will be given for overseas training, and equipment and facilities provided for the ongoing in-service training program. · The I DA credit is for 50 yea rs, inc 1ud i ng 1Q yea rs of grace • It carries no interest but bears a service charge of 3/4 of 1% per annum to cover IDA's administrative expenses. The United Nations Development Programme will provide a grant of $0.6 million and the Government of Nepal wi 11 contribute $5~7 million to the project costs, • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E C HN I CA L DA T A PROJECT: COUNTRY: TOTAL COST: Third Water Supply and Sewerage Nepal $33.3 million • IDA FINANCING: $27 mill ion, standard IDA terms OTHER FINANCING: United Nations Development Programme, $0.6 million; Government of Nepal, $5.7 mill ion IMPLEMENTING ORGANIZATION: Water Supply and Sewerage Board Tri pu reswa r Marg Kathmandu, Nepal PROJECT DESCRIPTION: The project includes: (a) construction of tubewells, river/spring intakes, transmission mains, a new treatment plant, chlorination stations, primary and secondary network distribution mains, and ser- vice reservoirs; (b) provision of about 17,500 water meters; (c) construction of trunk sewers, distribution 1 ines, overflow structures, and operational buildings; (d) 150 man- months of consultant services for preliminary and final engineering and supervision. In addition, technical services wi 11 be needed to assist in preparing feasibility studies. for projects in the remaining 10 towns to be assigned to the Water Supply and Sewerage Board; and (e) fellowships for overseas training, equipment and facilities for the on- going in-service training program. PROCUREMENT: All major materials and equipment contracts, amounting to about $10.6 million, will be awarded on the basis of inter- national competitive bidding. Contracts of less than $75,000 each will be procured under the government local competitive bidding procedures. Most civil works contracts, amount- ing to about $12 million, will be awarded on the basis of international competitive bidding. Construction of operational buildings, primary networks in Nepalganj and J~nak- pur, and the majority of secondary networks in all project towns will be contracted under the government local competitive bidding procedures (about 84.9 mil1 ion). CONSULTANTS: About 150 man-months of consultant services for preliminary and final engineering and supervision will be needed. Ad- ditional consultant services will be required for preparation of feasibility studies for projects in the 10 additional towns which are to be assigned to the Water Supply and Sewer- age Board. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 3% bqsed on incremental revenues only. 1986 - 0 - •