The World Bank -Global Partnership for Output Based Aid (GPOBA) assisted project, the ‘Output-Based Aid for Municipal Solid Waste Management in Nepal’ (the OBA project). The main concept of the OBA project was to improve access to high quality and financially sustainable SWM services in participating municipalities and the subsidy to municipalities were disbursed to improve /incentivize the operation of solid waste management services.
TDF together with the Solid Waste Management Technical Support Centre (SWMTSC) were the central government counterparts under the OBA project as executing agencies. Project Objectives The main objective of this project was to incentivize and enable gradual development of beneficiary charging to improve the financial viability and enable the expansion of Solid Waste Management (SWM)services in five participating municipalities (Tansen, Lalitpur, Ghorahi, Dhankuta and Lekhnath-Pokhara).
The OBA Project consisted has following 3 components:
Component I :
Service Delivery and Subsidy for each participating municipality over a four year period to cover the gap
between the costs of delivering solid SWM services and the beneficiary revenues collected through SWM
fees, provided that the services meet verified minimum performance criteria; Component II: Implementation support to municipalities is critical technical assistance to participating municipalities to help them in successfully implementing the project; and
Component III :
Project management, monitoring, evaluation and communications and verification of outputs and performance, baseline and beneficiary assessments, studies and other M&E activities. Financing Modality The GoN received funding from the GPOBA; a trust fund administered by the World Bank and GoN and WB signed municipality over a four year period to cover the gap between the costs of delivering solid SWM services and the beneficiary revenues collected through SWM fees, provided that the services meet verified minimum performance criteria;
Implementation support to municipalities is critical technical assistance to participating municipalities to
help them in successfully implementing the project; and
Component III :
Project management, monitoring, evaluation and communications and verification of outputs and performance, baseline and beneficiary assessments, studies and other M&E activities.
The GoN received funding from the GPOBA; a trust fund administered by the World Bank and GoN and WB signed
Project Highlights grant agreement on 25 March 2013 for the amount of US$ 4,288,381. The SWMTSC and the TDF were the two key implementing partners and provided provide necessary technical and project management support to the participating municipalities during the project implementation phase. Project Approval Date: March 25, 2013 (Grant Signing Date) June 21, 2013 (Effectiveness Date) Project Closing Date: 30 June 2017 Project Beneficiaries
The OBA Project piloted in five participating municipalities covering almost 800 thousands of beneficiaries and achieved strengthened capacity of municipalities with following development impact:
The impact of improved sanitation is significant, including:
• Health benefits from reduced exposure to environmental risks posed by unsanitary human
• Economic benefits from reduction of medical expenses to treat water-borne diseases, increased productivity and capacity to work due to fewer days off from work related to water-borne disease, especially for mothers of children under five who are prone to diarrhea.
Output of the Project:
OBA Project disbursed subsidy to participating municipalities based on their capacity, that helped to bridge the financial gap and willingness-to-pay barriers which was preventing municipalities from achieving greater levels of cost recovery in solid waste management.
Project Status: Completed
NEEP is being implemented to promote and realize energy efficiency in Nepal and is a bilateral technical cooperation between Government of Nepal (GON) and Federal Republic of Germany. The project is executed by Ministry of Energy with technical assistance provided by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), acting on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). TDF is one of the implementing partners to promote energy efficiency in public urban infrastructure under the component 1: Energy Efficiency Market Project Area (Lead): Energy Efficiency Market (Technical Assistance). The total Project Cost: up to Euro 4,000,000 (volume ofGerman contribution)
The main objective of the programme is to improve the basic pre-requisites for the planning and the
implementation of measures to increase the efficient use of energy in Nepal and to promote energy efficiency
in public urban infrastructure asset financed by TDF. Awareness Rising and capacity building for selected
target groups and intermediaries, including TDF.
The NEEP II consisted of 3 key areas of interventions; I. Promote energy efficiency in industry and public infrastructure as a main agenda of Energy Efficiency Market
II. Promote energy efficiency on Clean Cooking
III. Improve the framework conditions for energy efficiency on policy level Financing Modality The Nepali- German programme NEEP was implemented by the Ministry of Energy with technical assistance by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), acting on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ). Basically, this is technical cooperation project.
Approval Date: June 2014 (Effectiveness Date) Closing Date: June 2017.
The improvement in the condition for planning and implementation of measures for efficient energy use for
harnessing the untapped resource – energy efficiency was achieved to some extent. Individual households,
municipalities, industries and commerce are expected to benefit from mitigating the energy crisis. Accordingly,
NEEP contributed towards the global initiative of SE4 All in achieving its objective – energy efficiency – through
increased productivity of resources that fostered economic growth, improved energy security and reduced
costs for all citizens.
TDF’s technical capacity in the field of Energy Efficiency and raise municipalities awareness on Energy Efficiency
concept will be upgraded.
Project Status: Completed
STIUEIP, is an urban environmental improvement project being implemented by loan assistance from the Asian Development Bank (ADB). The basic concept of STIUEIP is implementing basic utility infrastructure of the municipality to improve quality of life of people land Environment improvement through drainage, sewer, waste
water treatment, integrated solid waste management with affordable and sustainable operation and maintenance.
The Ministry of Urban Development is the Executing Agency (EA), working through its Department of Urban
Development and Building Construction (DUDBC), which has established a project coordination office (PCO) for the
Project headed by project director. Biratnagar, Birgunj, Butwal and Kavre Valley is the Implementing Agency (IA)
for the Project. Project Implementation Unit (PIU) headed by Project Manager is established under the umbrella of
the municipalities. Town Development fund (TDF) is one of the key stakeholders to provide loan to Municipality
received from GoN and pay back to GoN after recovery from Municipality.
The main objective of STIUEIP is to improve the quality of life in key regional centers in Nepal and help to achieve
higher and more socially inclusive economic growth in those centers through effective, efficient, and reliable delivery of improved and affordable municipal services by accountable project municipalities. The Project is implementing urban environmental improvement, on an integrated basis, in the areas including sewerage and drainage, solid waste, and urban roads and lanes in Biratnagar, Birgunj and Butwal municipalities. In addition, a water supply development sub-project in Kavre Valley is being implemented. Community development Programme including awareness-raising on health and hygiene and 3R (reduce, reuse, and recycle), and investment in small-scale community facilities will be carried out. The Project also strengthens capacity of municipalities and the central Government for project management and operation.
The total fund allocated in this project is US $106 Million ( TDF -received US$ 12.1 Million as a soft loan at an
interest rate of 2.5% and make investment at 5% in the selected municipal projects. The project development
under STIUEIP is the responsibility of the PIU of the concerned municipalities under the PCO established in
DUDBC. Different financing modality has been adopted according to the scope of project and affordability of people and municipality for sustainable infrastructure investment, operation and maintenance. Accordingly, 81%-84%
grant has been provided by GoN,8%-11% loan from TDF at the interest rate of 5% with grace period of 5 years
and 15 years of loan payback period. Where remaining 8% will be contribution from municipality.
Status of Project
Under this project TDF has approved NPR 1,304.6 million for 6 different projects and has disbursed NPR 1,053.7 million out of total approved amount. As per the financing agreement, project period has been completed at December end 2020.
IUDP is being implemented by loan assistance from the Asian Development Bank (ADB) in the areas of Water
Supply, Solid Waste Management Improvement, Storm Water Drainage and Lane Road Improvement works
in Nepalgunj, Sidharthanagar, Dharan and Janakpur municipalities.
The main objective of IUDP is to establish a functional system in project municipalities for improving and delivering affordable municipal infrastructure and services with expanded outreach and inclusiveness by accountable project municipalities. Nepalgunj, Siddarthanagar and Janakpur are implementing solid waste management, storm water drainage and road improvement sub-projects where as Dharan is implementing water supply sub-project.
Financing Modality MoF and ADB signed financial agreement on May 8, 2012 to initiate IUDP in Nepalgunj, Siddharthanagar, Janakpur, and Dharan municipalities of Nepal for a total amount of SDR 28,435,000 as loan and USD 12,000,000 as grant to GoN. TDF signed subsidiary loan agreement with MoF to mobilize the loan component of about SDR 8,594,000.Different financing modality has been adopted according to the scope of project and affordability of people and municipality for sustainable infrastructure investment. Accordingly,for the projects like solid waste, drainage, urban road and lanes; 80% grant has been provided by GoN, 15% loan from TDF at the interest rate of 5% with grace period of 5 years and 15 years of loan payback period. Where remaining 5% will be contribution from municipality. Similarly for water supply projects, 50% grant has been provided by GoN, 35% loan from TDF and remaining 15% contribution by municipalities.
Status of the Project
TDF has approved for the loan NPR 1,170.01 million for 6 projects and disbursed about NPR 1073.69 Million. As per the financing agreement, project period has been completed at December end 2020.
TDF has received grant from Asian Development Bank (ADB) and Global Environment Facility (GEF) under
Kathmandu Sustainable Urban Transport Project (KSUTP) for financing implementation of the Public Transport in S5 Pilot Route (Gongabu to Sinamangal) and establishment of Sustainable Urban Transport Fund within TDF.
TDF shall use the repayment from the new Bus Operating Company to establish Revolving Fund that may be used
to finance subsequent public transport sector, which possess huge business potential for TDF in days to come.
Hence, this pilot case is consideredas good business opportunity which will pave the way for new business
portfolio for TDF in urban public transport sector. Project Area Kathmandu Valley Transport System improvement andurban public transport financing in 2 Pilot Route (S3 &S5). Total Project Cost: US$ 3.8 million (GEF & ADB Grant).
The main objective of KSUTP is to improve the overall quality of urban life in Kathmandu Valley. The specific
objectives of the project are:
• With the aim of reducing use of private vehicle in future, KSUTP will investigate effective measures to significantly enhance the existing public transport services by providing more convenient, comfortable, reliable and safe public transport system.
• The project will take effective measures for enhancement of road network operation by improving traffic management and traffic safety in the valley.• The project also aims to declare pedestrianization zones (car free zones) in the Kathmandu City core area. A total of 8 km heritage pedestrian walkways and 15 km of sidewalks improvements are part of the pedestrianization programs;
• Improving air quality monitoring and reduction in air pollution within the Kathmandu City is another objective of the project.
• However, TDF’s involvement in KSUTP is only for financing Public Transport fleet with low emission or electric vehicle through set up of financial mechanism. Under the sub-sector Public Transport, one of the tasks was defined as “Development and implementation of two pilot bus routes using electric or low emission vehicles.” Out of 2 pilot
routes selected for implementation by KSUTP, only Project Highlights S5 pilot route was found viable from operation and business plan prepared KSUTP / PMCBC.
For development of a financing mechanism through TDF to promote Public Transport fleet renewal by introducing
low emission vehicles under KSUTP, TDF will receive grant amount of US$ 3.8 million (US$ 2 million from
GEF grant account and US$1.8 million from ADB grant financing) to support the pilot routes implementation
and establishment of Revolving Fund within TDF. Project Approval Date: July 22, 2010 (26 Oct. 2010 Signing Date) Jan 05, 2011 (Effectiveness Date) Project Closing Date: June 30, 2018 (Revised) Project Beneficiaries
As per the business plan, the total number of 61 private operators, comprising of 26 micro-bus 25 Safa
Tempo, operating in the S5 Route, had established new operating company, M/s Digo Sarbajanik Yatayat (P)
Ltd., 100% owned by private sector and subsequently, signed Service Level Contract with DoTM for the period
of 12 years. The project will have direct benefit to the local commuters of 15,027 per day and significant impact
on improved urban environment due to promotion of low emission vehicles. Most importantly, it will help to
abolish existing ‘syndicate’ in Public Transport, which is seen as bottleneck for improvement of Public Transport.
The specific planned outputs of the projects are as following:
• In Kathmandu, public transport services and walk ability are improved, favoring a modal shift from private vehicles and improving traffic conditions.
• Public transport is improved and upgraded, andRevolving Fund established within TDF for PT financing.
population and urbanization.