2014-11-25

Asian Development Bank has agreed to provide a loan assistance of SDR 38.921 million and grant assistance of US$ 1.3 million to the Government of Nepal for the implementation of Third Small Town Water Supply and Sanitation Project in Nepal.

Asian Development Bank has agreed to provide a loan assistance of SDR 38.921 million (equivalent to NRs 5.78 billion) and grant assistance of US$ 1.3 million (equivalent to NRs 12.74 crores) to the Government of Nepal for the implementation of Third Small Town Water Supply and Sanitation Project in Nepal. The Agreement to this effect was signed today at the Ministry of Finance.

The main objective of this project will be to fund the physical investments in water supply and sanitation infrastructure in selected small towns as well as non-physical investment in the strengthening of sector policy, regulatory and institutional capacity, service delivery and project management.

The main expected outputs of the project include (i) upgrading and construction of water supply system for 26 small towns (i.e. Ilam, Charaali, Mahendranagar of Sunsari, Bhojpur, Diktel, Sakhuwa Mahendranagar of Dhanusha, Katari, Mirchaiya, Bidur, Dumre, Lalbandi, Charikot, Birendranagar of chitawan, Chainpur, Kathariya, Aabukhaireni, Tamsariya, Babiyachaur, Nirmalpokhari, Tikapur, Chandrauta, Salyan, Musikot, Suda and Liwang) (ii) and construction of approximately 20300 additional private toilets with septic tanks.

Ministry of Urban Development and Town Development Fund are the implementing agencies. The project is expected to be completed by 31 January 2021.