Announcement of IDA Assists Water Supply and Sewerage Project in Nepal on April 28, 1977

.World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 IDA NEWS RELEASE NO. 77/51 APRIL 28, 1977 IDA ASSISTS·WATER SUPPLY AND SEWERAr,E PROJECT IN NEPAL ------------------------------------------------------ The International Development Association (IDA),an affiliate of the World Bank, is extending a credit of $8 million to Nepal for a project designed to improve and extend water supply and s~werage facilities in Kathmandu, the capital, Kathmandu Valiey, Pokhara, Biratnagar and Birganj. Water supply of doubtful quality and inadequate quantity reaches only about 400,000 people in the area from 4-6 hours a day and sewerage facili- ties serve only 27,000 persons. Upon its completion in 1981, the project will • provide an adequate supply of safe water to about 590,000 (about 80% of the inhabitants in the project area) and sewerage facilities for over 85,000. By 1985, the water supply system will serve 710,000 people. The project is based on the Master Plan for Kathmandu Valley financed by the United Nations Development Programme and studies for the other cities financed by the Government. It is largely a continuation of the first water supply and sewerage project financed by an IDA credit of $11.8 million. The IDA credit to Nepal is for 50 years, including 10 years' grace. It is interest free, except for a service charge of 3/4 of 1% to meet IDA's administrative costs. The Government of Nepal will re-lend the proceeds to the Water Supply and Sewerage Board, with Interest at 9% for a term of 25 years, including 5 years' grace. • ---------~--------~-~--------~-~------- NOTE: Money figures are expressed In U.S. dollar equivalents FORM NO. 1.1::.!1 (5-76) T E C HN I CAL DA T A PROJECT: COUNTRY: TOTAL COST: The Second Water Supply and Sewerage Nepal $ 11 • 3 mi 11 i on • IDA FINANCING: Credit of $8.mi11ion, standard IDA terms OTHER FINANCING: Government of Nepal IMPLEMENTING ORGANIZATION: The Water and Sewerage Board Tripureshwar Road Kathmandu, Nepa 1 PROJECT DESCRIPTION: The project provides for improving and extending water supply faci liti~s in Kathmandu Valley, Pokhara, Biratnagar and Birganj; and sewerage facilities in Kathmandu and Lalitpur. It includes construction of tube wells, reservoirs and secondary water distribution mains in Kathmandu Valley, Pokhara, Biratnagar and Birganj; and extensions to sewage collection systems in Kathmandu and lalitpur. The project also includes studies for the preparation of water supply systems for six other • towns; updating of water supply and sewerage master plans; tariff study; and technical assistance. PROCUREMENT: All equipment and civil works contracts will be a.-,arded on the basis of international competitive bidding in accordance with IDA's. guidelines, except for minor contracts for (a) civil works for water supply and sewerage extensions, repairs, improvements, house connections and metering, and minor build- ings, each individually belCM $100,000; and {b) equipment supplies each below $50,000; which would be let under local procurement procedures. The totai of these contracts wl11 not exceed $500,000, and may include works by force account. A margin of preference of up to 15% or customs duty, whichever is ICMer, would be granted to local manufacturers of equipment, and of 7.5% for local civi 1 works contractors. CONSULTANTS: Consultants will be engaged for 1) updating water supply and sewerage master plans: 2) detailed design, preparation of tender documents, evaluating bids, and supervision of construction; 3) tariff study; and 4) for feasibility study for six t<Mns. ES'II MATED C0,1PLET I ON DATE: 1981 - 0 - •