• We are delighted to release "Pay with e-Khalti" WordPress button for accepting payments on your website.

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  • e-Khalti.com is mobile digital wallet which allows users to make online payments comfortable and convenient.
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  • About eSewa

    eSewa is a mobile money account. It is a digital wallet from where customers can pay, send and receive money from their mobile phone and internet, instantly.
    It is in operation since 2009 and has recently been licensed by Nepal Rastra Bank as Payment Service Provider.

    Customers can register and get mobile money account instantly, cash-in to their wallet from Agents and partner banks and start making payments. Customers can pay for utilities, recharge their mobile, pay internet bills, EMI, buy airlines ticket, school fees, credit card bills, etc. from their mobile.
    Similarly, merchants, service providers and retail outlets can receive payments for goods and services in their wallet instantly. This enables hassle-free, secure and immediate payments from customers.
    eSewa App is available for both iOS and Android devices and its primary web portal is www.esewa.com.np.

    About F1Soft Group
    F1Soft International is a software development company specialized in development and implementation of mobile banking and internet banking to financial institutions in Nepal and overseas. It is pioneer in the Fintech (Technologies in Financial Industry) industry and has introduced SMS Banking, Mobile Banking, Internet Banking and other transactional banking solutions in Nepal. Currently, more than 90% of the Financial Institutions have implemented solutions provided by F1Soft. F1soft Group now has 3 other companies under its group: eSewa Fonepay P. Ltd., Dharma TechNet, Shiran Technologies.

    Birth
    In the early 2000s, globally businesses were going online. While the digital revolution was just around the corner, it had very low impact in Nepal. There were few alternate payment channels offered by Banks like Debit Cards and Credit Cards. When we launched SMS banking back in 2006, it was well received by customers in the market. As mobile phone was getting popular and more affordable, we used SMS as primary channel to notify and alert customers about banking transactions. This immediately created the atmosphere of trust and security amongst customers. We added more features and transactional services later in 2007. It was also well received by banked customers. However, realizing that less than 20% of the population had bank accounts and these services could do so much more, we planned to introduce mobile wallet in Nepal. This also coincided with global business trend and need of payment gateway for the growth of digital commerce. eSewa was conceived and introduced when there were very few companies trying to go online. Internet *********** was very low and banking services were limited in terms of scope and availability. eSewa has played vital role to grow the e-commerce businesses in Nepal by providing secure online payment mechanism.
    Eventually, we realized the need of the payment gateway and developed a web and mobile based application, ‘eSewa’.

    Growth
    Though most of the banks and financial institutions were facilitating their customers with mobile and internet banking services, most of the users could not get benefited as there was a huge mass of the unbanked population. Realizing the need to furnish unbanked users, F1Soft developed standalone digital payment platform under brand ‘eSewa’. Within a very short period of its inception, it became so popular among stakeholders that F1Soft’s management decided to develop it as a separate wing under their ownership. Starting with few services like airtime top-up and pinless recharge in the past, it has covered major industries ranging from fast food chains to international airlines.

    Future
    Our vision is to cover every payment sector (Small/Big, Dealer/Retail, Private/Government, Domestic/International) continuously accomplishing our mission to create a cashless economy. We want to create cashless economy in coming days. In future, we will cover each and every industries of Nepal with our revolutionary payment platform which will in turn will help in growth and development of economy enhancing financial mobility. We will be acting as the backbone of economy of Nepal, which is our future and we are into it.
    About eSewa eSewa is a mobile money account. It is a digital wallet from where customers can pay, send and receive money from their mobile phone and internet, instantly. It is in operation since 2009 and has recently been licensed by Nepal Rastra Bank as Payment Service Provider. Customers can register and get mobile money account instantly, cash-in to their wallet from Agents and partner banks and start making payments. Customers can pay for utilities, recharge their mobile, pay internet bills, EMI, buy airlines ticket, school fees, credit card bills, etc. from their mobile. Similarly, merchants, service providers and retail outlets can receive payments for goods and services in their wallet instantly. This enables hassle-free, secure and immediate payments from customers. eSewa App is available for both iOS and Android devices and its primary web portal is www.esewa.com.np. About F1Soft Group F1Soft International is a software development company specialized in development and implementation of mobile banking and internet banking to financial institutions in Nepal and overseas. It is pioneer in the Fintech (Technologies in Financial Industry) industry and has introduced SMS Banking, Mobile Banking, Internet Banking and other transactional banking solutions in Nepal. Currently, more than 90% of the Financial Institutions have implemented solutions provided by F1Soft. F1soft Group now has 3 other companies under its group: eSewa Fonepay P. Ltd., Dharma TechNet, Shiran Technologies. Birth In the early 2000s, globally businesses were going online. While the digital revolution was just around the corner, it had very low impact in Nepal. There were few alternate payment channels offered by Banks like Debit Cards and Credit Cards. When we launched SMS banking back in 2006, it was well received by customers in the market. As mobile phone was getting popular and more affordable, we used SMS as primary channel to notify and alert customers about banking transactions. This immediately created the atmosphere of trust and security amongst customers. We added more features and transactional services later in 2007. It was also well received by banked customers. However, realizing that less than 20% of the population had bank accounts and these services could do so much more, we planned to introduce mobile wallet in Nepal. This also coincided with global business trend and need of payment gateway for the growth of digital commerce. eSewa was conceived and introduced when there were very few companies trying to go online. Internet penetration was very low and banking services were limited in terms of scope and availability. eSewa has played vital role to grow the e-commerce businesses in Nepal by providing secure online payment mechanism. Eventually, we realized the need of the payment gateway and developed a web and mobile based application, ‘eSewa’. Growth Though most of the banks and financial institutions were facilitating their customers with mobile and internet banking services, most of the users could not get benefited as there was a huge mass of the unbanked population. Realizing the need to furnish unbanked users, F1Soft developed standalone digital payment platform under brand ‘eSewa’. Within a very short period of its inception, it became so popular among stakeholders that F1Soft’s management decided to develop it as a separate wing under their ownership. Starting with few services like airtime top-up and pinless recharge in the past, it has covered major industries ranging from fast food chains to international airlines. Future Our vision is to cover every payment sector (Small/Big, Dealer/Retail, Private/Government, Domestic/International) continuously accomplishing our mission to create a cashless economy. We want to create cashless economy in coming days. In future, we will cover each and every industries of Nepal with our revolutionary payment platform which will in turn will help in growth and development of economy enhancing financial mobility. We will be acting as the backbone of economy of Nepal, which is our future and we are into it.
    2
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  • Use Skrill to send money to friends and relatives, pay and play online or make quick and easy international payments to merchants. Open an account: https://account.skrill.com/signup?rid=112710586
    Use Skrill to send money to friends and relatives, pay and play online or make quick and easy international payments to merchants. Open an account: https://account.skrill.com/signup?rid=112710586
    Try Skrill: Online payments & Money transfers
    Use Skrill to send money to friends and relatives, pay and play online or make quick and easy international payments to merchants.
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  • Project Data Sheet
    Project Name
    Melamchi Water Supply Project
    Project Number
    31624-023
    Country
    Nepal
    Project Status
    Active
    Project Type / Modality of Assistance
    Loan
    Source of Funding / Amount
    Loan 1820-NEP: Melamchi Water Supply Project
    concessional ordinary capital resources lending / Asian Development Fund
    US$ 120.00 million
    Loan 8191-NEP: Melamchi Water Supply Project
    OPEC Fund for International Development
    US$ 13.70 million
    Loan 8235-NEP: Melamchi Water Supply Project
    Nordic Development Fund
    US$ 10.50 million
    Loan: Melamchi Water Supply Project
    MOF, Japan
    US$ 18.00 million
    Japan Bank for International Cooperation (ODA)
    US$ 47.50 million
    Loan 3110-NEP: Melamchi Water Supply Project - Additional Financing
    concessional ordinary capital resources lending / Asian Development Fund
    US$ 25.00 million
    Strategic Agendas
    Environmentally sustainable growth
    Inclusive economic growth
    Drivers of Change
    Private sector development
    Sector / Subsector
    Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban water supply

    Gender Equity and Mainstreaming
    Description
    The main objectives of the Project are to alleviate the chronic water shortage in Kathmandu Valley on a sustainable, long-term basis, and to improve the health and well-being of its inhabitants. The Project also seeks to develop a comprehensive institutional framework for urban water management within the valley. The Project comprises (i) infrastructure development; (ii) social and environmental support; (iii) institutional reforms; and (iv) project implementation support.
    Project Rationale and Linkage to Country/Regional Strategy
    Kathmandu Valley is the country's single largest urban economy and is critical to Nepal's economic growth. Water is central to the well-being of the population and the key to its productive capacities. However, current water services are grossly inadequate and unreliable causing many people to resort to tankers supplies, bottled water, and both deep and shallow wells. The trend has led to serious environmental concerns as shallow wells are becoming increasingly polluted and deep aquifers are being mined to produce additional water. Poor water quality impacts sharply on public health. In terms of access to water (in the dry season) and quality of water, the effects are greatest on the health of the poor. The Project provides the required opportunity to address both the acute socioeconomic distress caused by the lack of adequate safe water to Kathmandu Valley residents, and the institutional challenges to provide water and wastewater management services on a sustainable basis.
    Impact
    Health and well-being of the people in Kathmandu Valley improved.
    Project Outcome
    Description of Outcome Shortage of potable water in Kathmandu Valley alleviated.
    Progress Toward Outcome Development outcome is expected to be achieved as per revised schedule by end of 1st quarter of 2019 - 25,915 m of main diversion, 1457m adit and 204 m of H/W diversion tunnel excavation has already been achieved to off-take water from Melamchi river. At Head Works, Open Cut excavation out of 102,000 cubic metre completed to construct diversion weir, desilting basin etc to divert water to Melamchi-Sundarijal tunnel. 667.3 Km of distribution pipe out of 677 Km inside valley completed while 77 Km Bulk Distribution System pipe (Sundarijal WTP to 10 Reservoirs around valley) laying completed. 9.9 km of BDS line from Sundarijal WTP and Mahankal Chaur Reservoir is also tested. Construction of 10 Reservoirs around the valley ongoing under additional financing are at the verge of completion.
    Implementation Progress
    Description of Project Outputs
    A. Melamchi Valley (Suproject 1)

    A.1. Raw water diverted from Melamchi Valley to Kathmandu Valley by development of infrastructure, i.e. tunnel, road and water treatment plant.

    A.2. Social and Environmental Support provided in Melamchi Valley.

    A.3. Efficient project management established and capacity building attained

    B. Kathmandu Valley Subproject (Subproject 2)

    B.1. Institutional reforms achieved and efficiently operated

    B.2. Water distribution and wastewater system improved by provision of capital works

    B.3. Social and environmental support provided in Kathmandu Valley

    Status of Implementation Progress (Outputs, Activities, and Issues)
    A. Melamchi Valley (Subproject 1)

    A.1 MWSDB terminated the previous contract for the Melamchi tunnel on 26 September 2012 due to unsatisfactory performance of the then contractor. As of the date of termination, the physical progress (tunnel excavation) was 22% (6.3 km out of 27.5 km. Rebidding for the Melamchi tunnel Contract started in November 2012. MWSDB issued the letter of acceptance to the winning contractor on 21 June 2013, the contract was signed with Cooperativa Muratorie Cementisti di Ravenna (CMC) of Italy on 15 July 2013, and the letter to commence was issued on 1 October 2013. The initial progress of the new contractor of the Melamchi tunnel is encouraging in terms of mobilization of key personnel, equipment, machinery, materials and start-up activities. Advance payment was made to the contractor in October 2013 and steady progress was achieved until the progress was adversely affected by 25 April 2015 Earthquake and short of construction materials and fuel due to closure of southern Border. However, completion of tunnel excavation with cumulative total of 27,576m tunnel length has been achieved as of 12 April 2018. After several backstopping and monitoring from employer and ADB regarding cash flow problem of contractor, the final works on tunnel smoothed and as of 15 September 2018, 13.7 km invert lining is finished with 12.1 km remaining. Works at H/W with alternative diversion pipe and temporary diversion weir as well as vent shaft works are ongoing. It is expected to be completed by 1st quarter of 2018.

    The water Treatment Plant (WTP) to utilize water from Melamchi tunnel has been implemented with JICA funding. MWSDB and the contractor signed the WTP contract on 10 July 2013. WTP is 100% completed and tested.

    Upgrading construction works in UAR 02 were earlier disturbed due to concerns of some local residents. Now, the works of UAR 02 have been completed.

    Construction of 18-km main access road was completed and opened up between Melamchi Pul Bazar and Timbu.

    A.2. Resettlement Plans and Environmental Management Plan (EMP) were prepared and are under implementation for both Subproject 1 and 2 following the split into two distinct subprojects in 2009. Activities undertaken in Subproject 1 (in Melamchi valley) include several activities for social and economic development of the areas in the Melamchi Valley such as (i) construction of health centers and provision of essential drugs; (ii) construction of school buildings and provision of educational kits to schools; and (iii) a forest nursery in Timbu.

    The social uplift program (SUP) under the MWSP is being implemented to promote widespread, ongoing, and meaningful participation of key stakeholders. Compliance with Resettlement Plan and Environmental Management Plan (EMP) is monitored by the MWSDB with support from the design and supervision consultant (DSC). Further, services of a Safeguards and Social Development Support consultant (SSDS) have also been taken for monitoring at a second level. MWSDB has been specifically asked to ensure compliance with effluent discharge standards.

    A.3 MWSDB is the main agency for project management of Melamchi Subproject 1 (Melamchi tunnel construction). Inputs of project management consultant finished. MWSDB is supported by new design and supervision consultant (DSC). Improved coordination and communication among MWSDB, new DSC, the new contractor (CMC), and the safeguards and social development support consultant (SSDS) noted. All the parties are coordinating to improve the pace, quality, safety, and safeguards compliance of the works. The DSC is taking more proactive role and is actively supporting MWSDB to (i) ensure implementation of the agreed action plans, (ii) decide expeditiously the contractual matters such as claims, variations, etc., (iii) ensure coordination with DSC, contractor, local residents, army and other relevant government authorities, and (iv) monitor processing payments to the contractor in a timely manner. Semi-annual safeguard monitoring reports are regularly being submitted and disclosed.

    B. Kathmandu Valley Subproject (Subproject 2)

    B.1. For Subproject 2, a Project Implementation Directorate (PID-KUKL) has been established since 2009 with staffing from Department of Water Supply & Sanitation and KUKL, which has been carrying out the activities of Subproject 2.

    KUKL has recruited capacity building and public-private partnership (CBP) team in November 2010. With support from this team, KUKL is working to achieving the targets of lease and license agreements. KUKL submitted to WSTFC a new proposal for increase in tariff, which was approved by WSTFC on 14 July 2013 with conditions to be fulfilled by KUKL for service improvement. This will help KUKL in improving its operations and service delivery to citizens.

    B.2. Under Subproject 2, distribution network improvement works are expected to reduce water losses, improve service delivery by enhanced hours and higher pressure of water supply for consumers. The PID for Subproject 2 has awarded 47 contracts out of which 39 contracts have been completed and 8 contracts are about to complete. There are no major issues with implementation of this Subproject. Most of the contracts were completed in 2013 and the remaining contracts by are expected to be completed by end of 2018. Advance preparation of designs and bidding documents for the "Kathmandu Valley Water Supply Improvement, Project," (L2776-NEP) enhanced the readiness of the project. The distribution network improvement works in Kathmandu Valley are being carried out with the objectives of reduction of non-revenue water and improvement of service delivery to the citizens.

    B.3. Substantial improvement in water supply is expected after completion of the Melamchi tunnel by 2016. Safeguards unit has been fully staffed with social development officer, environmental officer, and legal officer. This unit is supervising compliance with safeguards of ongoing physical works with support of supervision consultant.

    Resettlement Plan and Environment Management Plan (EMP) have been prepared and are being implemented. Several teams of consultants have been recruited in accordance with staggered schedules. Semiannual safeguard monitoring reports and environmental report are regularly being submitted and disclosed.

    Geographical Location Ambathan, Bagmati Zone, Bansbari, Bhotechaur, Chandeni, Deupur, Gyalthum, Jaisithok, Kabhre Palanchok, Lamidada, MahankalChaur, Manohara, Melamchi, Nakkhu, Phatkeswor, Ribarma, Sagarmatha Zone, Sindhu, Sundarijal, Timbu, Tinkune
    Safeguard Categories
    Environment A
    Involuntary Resettlement A
    Indigenous Peoples C
    Summary of Environmental and Social Aspects
    Environmental Aspects Environmental Impact Assessment (EIA) studies (2000, 2001, 2002) were carried at the time of approval of the Project. In the earlier phase of implementation, compliance with the requirements was regularly monitored by the consultant CEMAT/Schemes JV in association with EEC who submitted their final Environmental Management Plan (EMP) report in 2009. In December 2009, Safeguard and Social Development Support (SSDS) ICON-CMS JV consultant was mobilized. At the first level, MWSDB and DSC are monitoring compliance with environmental safeguards. As the second level, SSDS consultant is monitoring the compliance with EMP such as monitoring water quality, noise quality and air quality, fish population and diversity assessment, measurement of discharge, staff gauge reading and nursery establishment. Environmental monitoring and reporting is ongoing.
    Involuntary Resettlement Involuntary resettlement follows the requirements of ADB and the Government. ADB Policy and Land Acquisition Act (LAA) 2034 (1977 A.D.) are being complied with, such as the provisions related to compensation standards and benefits, compensation for lost assets at market value, provision for alternative land and compensation for standard crops and trees. MWSDB prepared a Resettlement Policy Framework (RPF), approved by the Cabinet in 2057 (2000 A.D.), to cover resettlement-related needs of Project affected persons (PAPs). The Resettlement Action Plan (RAP) compensation and mitigation measures include the following: compensation upon acquisition of land, crop and trees and house or commercial enterprises, mitigation for the loss of water due to diversion to Melamachi River, displacement allowances, rehabilitation measures, loss of government property, loss of community facilities and resources, community losses, and general counseling. Land acquisition process is completed and resettlement monitoring and reporting is ongoing.
    Indigenous Peoples
    Stakeholder Communication, Participation, and Consultation
    During Project Design The Project was designed with extensive participation of stakeholders, including beneficiaries, adversely affected people, village development committees and ward representatives, district development committees and municipal officials and representatives, ministries concerned and MWSDB, the private sector, external funding agencies, NGOs, and consultants.
    During Project Implementation The Project is encouraging direct participation of beneficiaries through social uplift program implementation, representation of adversely affected people in the compensation determination committee, and representation of Kathmandu Valley beneficiaries in water users associations. The Project is also undertaking consensus building at all levels on issues such as water services, environmental and social mitigation and compensation, and employment.
    Business Opportunities
    Consulting Services The selection and engagement of all remaining consulting services to be financed by ADB shall be in accordance with the provisions of Schedule 4, Section D, paras. 10 to 12 of the Amended and Restated Loan Agreement and with the ADB's Guidelines on the Use of Consultants (2007, as amended from time to time) using the quality-and cost-based method.
    Procurement Procurement of all remaining goods and works to be financed out of proceeds of the Loans will be in accordance with ADB's Procurement Guidelines (2007, as amended from time to time).
    Responsible ADB Officer
    Castro-Wooldridge, Vivian
    Responsible ADB Department
    South Asia Department
    Responsible ADB Division
    Urban Development and Water Division, SARD
    Executing Agencies
    Kathmandu Upatyaka Khanepani Limited (KUKL)
    Tripureshwar, Kathmandu, Nepal
    Melamchi Water Supply Development Board
    H.P. Sharma
    Kathmandu, Nepal
    Ministry of Physical Infrastructure and Transport
    Deep Basnyat
    [email protected]
    Kathmandu, Nepal
    Ministry of Urban Development
    Mr. Kishore Thapa
    Singhadurbar, Kathmandu, Nepal
    Timetable
    Concept Clearance 08 Mar 1999
    Fact Finding 03 Jul 2000 to 24 Jul 2000
    MRM 15 Sep 2000
    Approval 03 Jul 2008
    Last Review Mission -
    PDS Creation Date 12 Feb 2007
    Last PDS Update 25 Sep 2018
    Loan 1820-NEP
    Milestones
    Approval Signing Date Effectivity Date Closing
    Original Revised Actual
    21 Dec 2000 24 Jan 2001 28 Nov 2001 31 Mar 2007 30 Jun 2019 -
    Financing Plan Loan Utilization
    Total (Amount in US$ million) Date ADB Others Net Percentage
    Project Cost 303.50 Cumulative Contract Awards
    ADB 120.00 21 Dec 2000 126.65 0.00 93%
    Counterpart 118.00 Cumulative Disbursements
    Cofinancing 65.50 21 Dec 2000 130.19 0.00 96%
    Category
    Sector
    Safeguards
    Social
    Financial
    Economic
    Others
    Rating
    Satisfactory
    Satisfactory
    Satisfactory
    Satisfactory
    -
    Satisfactory
    Loan 3110-NEP
    Milestones
    Approval Signing Date Effectivity Date Closing
    Original Revised Actual
    11 Feb 2014 07 Apr 2014 25 Apr 2014 30 Jun 2017 30 Jun 2019 -
    Financing Plan Loan Utilization
    Total (Amount in US$ million) Date ADB Others Net Percentage
    Project Cost 38.08 Cumulative Contract Awards
    ADB 25.00 11 Feb 2014 18.24 0.00 81%
    Counterpart 13.08 Cumulative Disbursements
    Cofinancing 0.00 11 Feb 2014 18.28 0.00 81%
    Category
    Sector
    Safeguards
    Social
    Financial
    Economic
    Others
    Rating
    Satisfactory
    Satisfactory
    Satisfactory
    Satisfactory
    -
    Satisfactory
    Loan 8191-NEP
    Milestones
    Approval Signing Date Effectivity Date Closing
    Original Revised Actual
    22 Nov 2000 21 Sep 2001 01 Jul 2002 30 Jun 2003 31 Dec 2008 31 Dec 2008
    Financing Plan Loan Utilization
    Total (Amount in US$ million) Date ADB Others Net Percentage
    Project Cost 13.70 Cumulative Contract Awards
    ADB 0.00 22 Nov 2000 0.00 13.70 100%
    Counterpart 0.00 Cumulative Disbursements
    Cofinancing 13.70 22 Nov 2000 0.00 13.70 100%
    Loan 8235-NEP
    Milestones
    Approval Signing Date Effectivity Date Closing
    Original Revised Actual
    03 Jul 2008 03 Jul 2008 03 Jul 2008 31 Jul 2013 30 Sep 2015 11 Nov 2015
    Financing Plan Loan Utilization
    Total (Amount in US$ million) Date ADB Others Net Percentage
    Project Cost 10.50 Cumulative Contract Awards
    ADB 0.00 03 Jul 2008 0.00 10.06 100%
    Counterpart 0.00 Cumulative Disbursements
    Cofinancing 10.50 03 Jul 2008 0.00 10.06 100%
    Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

    The Public Communications Policy (***) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

    The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

    In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

    Project Data Sheet Project Name Melamchi Water Supply Project Project Number 31624-023 Country Nepal Project Status Active Project Type / Modality of Assistance Loan Source of Funding / Amount Loan 1820-NEP: Melamchi Water Supply Project concessional ordinary capital resources lending / Asian Development Fund US$ 120.00 million Loan 8191-NEP: Melamchi Water Supply Project OPEC Fund for International Development US$ 13.70 million Loan 8235-NEP: Melamchi Water Supply Project Nordic Development Fund US$ 10.50 million Loan: Melamchi Water Supply Project MOF, Japan US$ 18.00 million Japan Bank for International Cooperation (ODA) US$ 47.50 million Loan 3110-NEP: Melamchi Water Supply Project - Additional Financing concessional ordinary capital resources lending / Asian Development Fund US$ 25.00 million Strategic Agendas Environmentally sustainable growth Inclusive economic growth Drivers of Change Private sector development Sector / Subsector Water and other urban infrastructure and services / Urban policy, institutional and capacity development - Urban water supply Gender Equity and Mainstreaming Description The main objectives of the Project are to alleviate the chronic water shortage in Kathmandu Valley on a sustainable, long-term basis, and to improve the health and well-being of its inhabitants. The Project also seeks to develop a comprehensive institutional framework for urban water management within the valley. The Project comprises (i) infrastructure development; (ii) social and environmental support; (iii) institutional reforms; and (iv) project implementation support. Project Rationale and Linkage to Country/Regional Strategy Kathmandu Valley is the country's single largest urban economy and is critical to Nepal's economic growth. Water is central to the well-being of the population and the key to its productive capacities. However, current water services are grossly inadequate and unreliable causing many people to resort to tankers supplies, bottled water, and both deep and shallow wells. The trend has led to serious environmental concerns as shallow wells are becoming increasingly polluted and deep aquifers are being mined to produce additional water. Poor water quality impacts sharply on public health. In terms of access to water (in the dry season) and quality of water, the effects are greatest on the health of the poor. The Project provides the required opportunity to address both the acute socioeconomic distress caused by the lack of adequate safe water to Kathmandu Valley residents, and the institutional challenges to provide water and wastewater management services on a sustainable basis. Impact Health and well-being of the people in Kathmandu Valley improved. Project Outcome Description of Outcome Shortage of potable water in Kathmandu Valley alleviated. Progress Toward Outcome Development outcome is expected to be achieved as per revised schedule by end of 1st quarter of 2019 - 25,915 m of main diversion, 1457m adit and 204 m of H/W diversion tunnel excavation has already been achieved to off-take water from Melamchi river. At Head Works, Open Cut excavation out of 102,000 cubic metre completed to construct diversion weir, desilting basin etc to divert water to Melamchi-Sundarijal tunnel. 667.3 Km of distribution pipe out of 677 Km inside valley completed while 77 Km Bulk Distribution System pipe (Sundarijal WTP to 10 Reservoirs around valley) laying completed. 9.9 km of BDS line from Sundarijal WTP and Mahankal Chaur Reservoir is also tested. Construction of 10 Reservoirs around the valley ongoing under additional financing are at the verge of completion. Implementation Progress Description of Project Outputs A. Melamchi Valley (Suproject 1) A.1. Raw water diverted from Melamchi Valley to Kathmandu Valley by development of infrastructure, i.e. tunnel, road and water treatment plant. A.2. Social and Environmental Support provided in Melamchi Valley. A.3. Efficient project management established and capacity building attained B. Kathmandu Valley Subproject (Subproject 2) B.1. Institutional reforms achieved and efficiently operated B.2. Water distribution and wastewater system improved by provision of capital works B.3. Social and environmental support provided in Kathmandu Valley Status of Implementation Progress (Outputs, Activities, and Issues) A. Melamchi Valley (Subproject 1) A.1 MWSDB terminated the previous contract for the Melamchi tunnel on 26 September 2012 due to unsatisfactory performance of the then contractor. As of the date of termination, the physical progress (tunnel excavation) was 22% (6.3 km out of 27.5 km. Rebidding for the Melamchi tunnel Contract started in November 2012. MWSDB issued the letter of acceptance to the winning contractor on 21 June 2013, the contract was signed with Cooperativa Muratorie Cementisti di Ravenna (CMC) of Italy on 15 July 2013, and the letter to commence was issued on 1 October 2013. The initial progress of the new contractor of the Melamchi tunnel is encouraging in terms of mobilization of key personnel, equipment, machinery, materials and start-up activities. Advance payment was made to the contractor in October 2013 and steady progress was achieved until the progress was adversely affected by 25 April 2015 Earthquake and short of construction materials and fuel due to closure of southern Border. However, completion of tunnel excavation with cumulative total of 27,576m tunnel length has been achieved as of 12 April 2018. After several backstopping and monitoring from employer and ADB regarding cash flow problem of contractor, the final works on tunnel smoothed and as of 15 September 2018, 13.7 km invert lining is finished with 12.1 km remaining. Works at H/W with alternative diversion pipe and temporary diversion weir as well as vent shaft works are ongoing. It is expected to be completed by 1st quarter of 2018. The water Treatment Plant (WTP) to utilize water from Melamchi tunnel has been implemented with JICA funding. MWSDB and the contractor signed the WTP contract on 10 July 2013. WTP is 100% completed and tested. Upgrading construction works in UAR 02 were earlier disturbed due to concerns of some local residents. Now, the works of UAR 02 have been completed. Construction of 18-km main access road was completed and opened up between Melamchi Pul Bazar and Timbu. A.2. Resettlement Plans and Environmental Management Plan (EMP) were prepared and are under implementation for both Subproject 1 and 2 following the split into two distinct subprojects in 2009. Activities undertaken in Subproject 1 (in Melamchi valley) include several activities for social and economic development of the areas in the Melamchi Valley such as (i) construction of health centers and provision of essential drugs; (ii) construction of school buildings and provision of educational kits to schools; and (iii) a forest nursery in Timbu. The social uplift program (SUP) under the MWSP is being implemented to promote widespread, ongoing, and meaningful participation of key stakeholders. Compliance with Resettlement Plan and Environmental Management Plan (EMP) is monitored by the MWSDB with support from the design and supervision consultant (DSC). Further, services of a Safeguards and Social Development Support consultant (SSDS) have also been taken for monitoring at a second level. MWSDB has been specifically asked to ensure compliance with effluent discharge standards. A.3 MWSDB is the main agency for project management of Melamchi Subproject 1 (Melamchi tunnel construction). Inputs of project management consultant finished. MWSDB is supported by new design and supervision consultant (DSC). Improved coordination and communication among MWSDB, new DSC, the new contractor (CMC), and the safeguards and social development support consultant (SSDS) noted. All the parties are coordinating to improve the pace, quality, safety, and safeguards compliance of the works. The DSC is taking more proactive role and is actively supporting MWSDB to (i) ensure implementation of the agreed action plans, (ii) decide expeditiously the contractual matters such as claims, variations, etc., (iii) ensure coordination with DSC, contractor, local residents, army and other relevant government authorities, and (iv) monitor processing payments to the contractor in a timely manner. Semi-annual safeguard monitoring reports are regularly being submitted and disclosed. B. Kathmandu Valley Subproject (Subproject 2) B.1. For Subproject 2, a Project Implementation Directorate (PID-KUKL) has been established since 2009 with staffing from Department of Water Supply & Sanitation and KUKL, which has been carrying out the activities of Subproject 2. KUKL has recruited capacity building and public-private partnership (CBP) team in November 2010. With support from this team, KUKL is working to achieving the targets of lease and license agreements. KUKL submitted to WSTFC a new proposal for increase in tariff, which was approved by WSTFC on 14 July 2013 with conditions to be fulfilled by KUKL for service improvement. This will help KUKL in improving its operations and service delivery to citizens. B.2. Under Subproject 2, distribution network improvement works are expected to reduce water losses, improve service delivery by enhanced hours and higher pressure of water supply for consumers. The PID for Subproject 2 has awarded 47 contracts out of which 39 contracts have been completed and 8 contracts are about to complete. There are no major issues with implementation of this Subproject. Most of the contracts were completed in 2013 and the remaining contracts by are expected to be completed by end of 2018. Advance preparation of designs and bidding documents for the "Kathmandu Valley Water Supply Improvement, Project," (L2776-NEP) enhanced the readiness of the project. The distribution network improvement works in Kathmandu Valley are being carried out with the objectives of reduction of non-revenue water and improvement of service delivery to the citizens. B.3. Substantial improvement in water supply is expected after completion of the Melamchi tunnel by 2016. Safeguards unit has been fully staffed with social development officer, environmental officer, and legal officer. This unit is supervising compliance with safeguards of ongoing physical works with support of supervision consultant. Resettlement Plan and Environment Management Plan (EMP) have been prepared and are being implemented. Several teams of consultants have been recruited in accordance with staggered schedules. Semiannual safeguard monitoring reports and environmental report are regularly being submitted and disclosed. Geographical Location Ambathan, Bagmati Zone, Bansbari, Bhotechaur, Chandeni, Deupur, Gyalthum, Jaisithok, Kabhre Palanchok, Lamidada, MahankalChaur, Manohara, Melamchi, Nakkhu, Phatkeswor, Ribarma, Sagarmatha Zone, Sindhu, Sundarijal, Timbu, Tinkune Safeguard Categories Environment A Involuntary Resettlement A Indigenous Peoples C Summary of Environmental and Social Aspects Environmental Aspects Environmental Impact Assessment (EIA) studies (2000, 2001, 2002) were carried at the time of approval of the Project. In the earlier phase of implementation, compliance with the requirements was regularly monitored by the consultant CEMAT/Schemes JV in association with EEC who submitted their final Environmental Management Plan (EMP) report in 2009. In December 2009, Safeguard and Social Development Support (SSDS) ICON-CMS JV consultant was mobilized. At the first level, MWSDB and DSC are monitoring compliance with environmental safeguards. As the second level, SSDS consultant is monitoring the compliance with EMP such as monitoring water quality, noise quality and air quality, fish population and diversity assessment, measurement of discharge, staff gauge reading and nursery establishment. Environmental monitoring and reporting is ongoing. Involuntary Resettlement Involuntary resettlement follows the requirements of ADB and the Government. ADB Policy and Land Acquisition Act (LAA) 2034 (1977 A.D.) are being complied with, such as the provisions related to compensation standards and benefits, compensation for lost assets at market value, provision for alternative land and compensation for standard crops and trees. MWSDB prepared a Resettlement Policy Framework (RPF), approved by the Cabinet in 2057 (2000 A.D.), to cover resettlement-related needs of Project affected persons (PAPs). The Resettlement Action Plan (RAP) compensation and mitigation measures include the following: compensation upon acquisition of land, crop and trees and house or commercial enterprises, mitigation for the loss of water due to diversion to Melamachi River, displacement allowances, rehabilitation measures, loss of government property, loss of community facilities and resources, community losses, and general counseling. Land acquisition process is completed and resettlement monitoring and reporting is ongoing. Indigenous Peoples Stakeholder Communication, Participation, and Consultation During Project Design The Project was designed with extensive participation of stakeholders, including beneficiaries, adversely affected people, village development committees and ward representatives, district development committees and municipal officials and representatives, ministries concerned and MWSDB, the private sector, external funding agencies, NGOs, and consultants. During Project Implementation The Project is encouraging direct participation of beneficiaries through social uplift program implementation, representation of adversely affected people in the compensation determination committee, and representation of Kathmandu Valley beneficiaries in water users associations. The Project is also undertaking consensus building at all levels on issues such as water services, environmental and social mitigation and compensation, and employment. Business Opportunities Consulting Services The selection and engagement of all remaining consulting services to be financed by ADB shall be in accordance with the provisions of Schedule 4, Section D, paras. 10 to 12 of the Amended and Restated Loan Agreement and with the ADB's Guidelines on the Use of Consultants (2007, as amended from time to time) using the quality-and cost-based method. Procurement Procurement of all remaining goods and works to be financed out of proceeds of the Loans will be in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). Responsible ADB Officer Castro-Wooldridge, Vivian Responsible ADB Department South Asia Department Responsible ADB Division Urban Development and Water Division, SARD Executing Agencies Kathmandu Upatyaka Khanepani Limited (KUKL) Tripureshwar, Kathmandu, Nepal Melamchi Water Supply Development Board H.P. Sharma Kathmandu, Nepal Ministry of Physical Infrastructure and Transport Deep Basnyat [email protected] Kathmandu, Nepal Ministry of Urban Development Mr. Kishore Thapa Singhadurbar, Kathmandu, Nepal Timetable Concept Clearance 08 Mar 1999 Fact Finding 03 Jul 2000 to 24 Jul 2000 MRM 15 Sep 2000 Approval 03 Jul 2008 Last Review Mission - PDS Creation Date 12 Feb 2007 Last PDS Update 25 Sep 2018 Loan 1820-NEP Milestones Approval Signing Date Effectivity Date Closing Original Revised Actual 21 Dec 2000 24 Jan 2001 28 Nov 2001 31 Mar 2007 30 Jun 2019 - Financing Plan Loan Utilization Total (Amount in US$ million) Date ADB Others Net Percentage Project Cost 303.50 Cumulative Contract Awards ADB 120.00 21 Dec 2000 126.65 0.00 93% Counterpart 118.00 Cumulative Disbursements Cofinancing 65.50 21 Dec 2000 130.19 0.00 96% Category Sector Safeguards Social Financial Economic Others Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory Loan 3110-NEP Milestones Approval Signing Date Effectivity Date Closing Original Revised Actual 11 Feb 2014 07 Apr 2014 25 Apr 2014 30 Jun 2017 30 Jun 2019 - Financing Plan Loan Utilization Total (Amount in US$ million) Date ADB Others Net Percentage Project Cost 38.08 Cumulative Contract Awards ADB 25.00 11 Feb 2014 18.24 0.00 81% Counterpart 13.08 Cumulative Disbursements Cofinancing 0.00 11 Feb 2014 18.28 0.00 81% Category Sector Safeguards Social Financial Economic Others Rating Satisfactory Satisfactory Satisfactory Satisfactory - Satisfactory Loan 8191-NEP Milestones Approval Signing Date Effectivity Date Closing Original Revised Actual 22 Nov 2000 21 Sep 2001 01 Jul 2002 30 Jun 2003 31 Dec 2008 31 Dec 2008 Financing Plan Loan Utilization Total (Amount in US$ million) Date ADB Others Net Percentage Project Cost 13.70 Cumulative Contract Awards ADB 0.00 22 Nov 2000 0.00 13.70 100% Counterpart 0.00 Cumulative Disbursements Cofinancing 13.70 22 Nov 2000 0.00 13.70 100% Loan 8235-NEP Milestones Approval Signing Date Effectivity Date Closing Original Revised Actual 03 Jul 2008 03 Jul 2008 03 Jul 2008 31 Jul 2013 30 Sep 2015 11 Nov 2015 Financing Plan Loan Utilization Total (Amount in US$ million) Date ADB Others Net Percentage Project Cost 10.50 Cumulative Contract Awards ADB 0.00 03 Jul 2008 0.00 10.06 100% Counterpart 0.00 Cumulative Disbursements Cofinancing 10.50 03 Jul 2008 0.00 10.06 100% Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative. The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced. The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures. In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
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