Agreement with the The International Development Association (IDA) of the World Bank

The International Development Association (IDA) of the World Bank has agreed to provide US $ 72 million assistance (US $ 22 million grant and US $ 50 million loan), equivalent to NRs 6.94 billion for the implementation of Rural Water Supply and Sanitation Improvement Project (RWSSIP).

This project will be implemented in five years (2014-2019) with a total project cost of US $ 90 million consisting of  IDA credit and grant of US $ 72 million (equivalent of NRs 6.94 billion), Government of Nepal contribution of US $ 10.5 million and community contribution of  US $ 7.5 Million. This project will serve total of 2.4 million people (1.5 million with improved water supply and sanitation, and 0.9 million with improved sanitation facility) through 1874 Water Supply and Sanitation schemes and 400 Open Defecation Free VDCs.

The objectives of the project are to increase sustainable access to improved water services and promote improved sanitation and hygiene practices in rural areas and develop and implement a long-term support mechanism to promote the sustainability of water supply schemes in selected districts. The project consists of four major components:

1)      Access to improved water supply and sanitation and promotion of improved sanitation and hygiene practices

2)     District Level Institutional Strengthening

3)     Technical Assistance/Capacity Building and Project Management

4)     Contingency Emergency Response

Women and children will also benefit from this project, as they currently bear the burden of securing the daily drinking water needs of the family and suffer the consequences of illnesses associated with poor access to water and sanitation. Beneficiaries will be predominantly from districts having low access to water and sanitation services and higher poverty incidence. The project will help achieve the target of National Rural Water Supply and Sanitation Policies by providing all the access to water supply and sanitation services by 2017.

Mr. Madhu Kumar Marasini, Joint Secretary/Chief of International Economic Cooperation Coordination Division, Ministry of Finance and Mr. Bigyan Pradhan, Senior Operations Officer and Head of Nepal Country Office, the World Bank signed the agreement on behalf of the Government of Nepal and the World Bank, respectively. The Government of Nepal has expressed its appreciation to the World Bank for this assistance and for its continued support in the socio economic development of Nepal.

Ministry of Finance

Singh durbar,

Kathmandu, Nepal

July 11, 2014

(Asar 27, 2071)