Nepal - National Urban Water Supply & Sanitation Project

Report No. PIC889 Project Name Nepal-National Urban Water Supply & Sanitation Project Region South Asia Sector Water Suupply Project ID NPPA10550 Implementing Agency To be determined: Autonomous utility entities (NWSC, Municipalities, local water boards) and some Central Government entities. Date Prepared December 29, 1993 Projected Board Date December 1996 Objectives 1. The proposed project would have, at the request of His Majesty's Government of Nepal, two main objectives: (a) to improve the capabilities of water supply and sanitation sector institutions (both governmental and non-governmental) through refining and implementing HMG's decentralization strategy and redefining the role of the Central Government within the sector. This involves, most notably, Central Government entities focussing exclusively on those activities which HMG must carry out (i.e., policy formulation, monitoring & evaluation, etc.), and devolving all direct service provision (including physical implementation and operation and maintenance of water and sanitation schemes) to autonomous non Central Government entities; and (b) to improve public health and welfare through specific water investments (to improve quality and increase quantities) and sanitation investments to rehabilitate and extend existing facilities for a selected number of municipalities throughout Nepal. Description 2. The project scope would be refined during preparation to ensure that the main objectives are achieved but with sufficient simplicity in design to facilitate project implementation. The project would include the following components: (a) Institutional Strengthening (through technical assistance, training and equipment) to Central Government and autonomous non-Central Government bodies. The Central Government bodies would include HMG central policy formulation and sectorwide planning institutions and regulatory bodies, central agencies (governmental or private) concerned with executing central functions in monitoring and evaluation, research and development, Human Resource Development. The autonomous non- Central Government bodies would be service delivery entities. (b) Investments in specific water supply and sanitation works, for municipalities, including expansion of Kathmandu water supplies. (c) Technical Assistance for preparation of possible follow up investment operations.  Implementation 3. The project implementation period will be refined as project preparation progresses. The project will be implemented by newly created autonomous entities which could include public boards, corporations, municipal entities, regional entities with greater private sector involvement. The main focus of this project will be institutional as it will assist the Central Government redefine its role in the urban water supply and sanitation sector with a view to transferring all service delivery responsibilities to autonomous non- Central Government entities. Cost and Financing 4. Project cost is presently estimated at about US$60.0 million and will be refined during project preparation. Co-financing arrangements will be worked out during project preparation. Environmental aspects 5. Potential issues concerned with the allocation of water rights and resettlement at the eventual reservoir site of the proposed Kathmandu valley component as well as eventual resettlement related to distribution network extension/rehabilitation would be addressed during project preparation. In compliance with the Bank's Environmental Assessment Operation Directives, an environmental overview sheet has been prepared, and it is proposed that the project be rated "A". It should be noted that project preparation will review the need for an eventual within-the-valley reservoir for the Kathmandu/Lalitpur municipality component. Should further project preparation establish that this reservoir is not needed and that this project does not include any resettlement, the project rating may be changed to "B". Contact Point Public Information Centre The World Bank 1818 H Street N.W. Washington D.C. 20433 Telephone No.: (202)458-5454 Fax No.: (202)522-1500 Note: This is information on an evolving project. Certain components may not necessarily be included in the final project. - 2 -