Urban Water Supply and Sanitation Project

Introduction

The project will support Nepal in expanding 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). The project will finance climate-resilient and inclusive WSS infrastructure in project municipalities and strengthen institutional and community capacity, sustainable service delivery, and project development

Sector policy and institutional arrangements

The government targets for WSS services focus on inclusive development to improve functionality, enhance service levels, and expand municipal sanitation. The government has defined institutional responsibilities and service delivery mechanisms in the sector. The Ministry of Water Supply (MOWS) is responsible for planning, implementation, regulation, and monitoring of WSS; its Department of Water Supply and Sewerage Management (DWSSM) supports the provision of WSS facilities in municipalities where large utilities do not exist, and these are operated by water users and sanitation committees (WUSCs) or municipalities.

Recently, the Local Governance Operation Act, 2017, entrusted municipalities with responsibility for WSS services. While municipalities’ capacity for this responsibility is being built, the government and residents have been receptive to a decentralized, participatory, and cost-sharing service provision model through water user’s associations (WUAs) and WUSCs. Development support for municipal WSS has been channeled through a combination of :

(i) government grants through DWSSM

(ii) loans by the Town Development Fund (TDF) AND

(iii) contributions from municipalities and beneficiaries.

Outputs

1. WSS infrastructure in project municipalities improved
2. Institutional and community capacities strengthened