Future Urban Water Supply Program has been discussed with ADB regarding rational, scope and components,
indicative financing plan, implementation and financial arrangements with MOF, MWSS and DWSS during the
ADB mission of January 2018 and a draft concept paper has been prepared accordingly. Proposed project scope and
components The project will include the following outputs namely (i) improved water supply and sanitation infrastructure; (ii) strengthened sector policy, institutional and project preparation capacity, and service delivery; and (iii) piloting climate-resilient water supply service delivery.
For this project total cost is $156 million. The project is included in ADB’s Country Operations Business Plan (2018-2020) with a total loan amount of $100 million from ADB’s concessional ordinary capital resources. Counterpart funds from the government are $40 million to cover taxes and duties, land acquisition and resettlement, and counterpart staff. Contributions from beneficiaries are $5 million. Co-financing is envisaged through a potential investment grant by the Urban Climate Change Resilience Trust Fund (UCCRTF), under ADB’s Urban Financing Facility.
Status of The Project:
The financing agreement between GoN and ADB has been done dated 26 November 2018 of USD 130 million for ADB funding. Based on financing agreement, TDF signed Subsidiary Loan Agreement (SLA) to mobilize the loan USD 19 million for the 20 projects as per the set out terms and conditions. This project will support the Government of Nepal expand access to community managed water supply and sanitation (WSS) in 20 project municipalities by drawing on experiences and lessons from three earlier projects funded by the Asian Development Bank (ADB).
TDF has been completed financing agreement with 11 projects. It has been approved loan Rs. 1,912.39 for 11 projects and disbursed Rs 288.52 million till now.