KATHMANDU WATER SUPPLY IMPROVEMENT
DONORS CONTRIBUTION CRUCIAL

Authored By: Madan Shankar Shrestha
Date: August 2, 2002

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Kathmandu had the first taste of piped water supply more than a century ago. The Bir dhara system (1895 AD) designed by the British engineers supplied water from the Shivapuri (Budhanilkantha) watershed area. The TriBhimdhara system (1930) followed tapping water from Balaju (Alley, Boudhe, Bhandare) area. The Dudhpokhari system was also designed by the British engineers. All these system supplied water to most of the Rana palaces and few public taps, although the privileged few also enjoyed private taps. With the construction of Sudarijal water treatment plant under the cooperation of the Indian Government in 1966, private taps were connected in the Kathmandu area as demanded by the consumers. In a true sense first full commercial operation of water supply system commenced with the completion of the Sundarijal water supply system.

A master plan to improve and extend water supply in the Valley was prepared in 1974 with the assistance of United Nations Development Program. This master plan was the basis for the first World Bank/IDA funded project in 1975. The first five production wells and Pharping/Sainbhu water supply system were constructed under this project. The volume of water supply in the Patan area almost increased five folds with the completion of Sainbhu system. Private taps could be distributed freely in the Patan area. Initially the Sainbhu system could supply some areas in Kathmandu as well. Large scale metering of water tap was introduced during the first IDA project. Meanwhile the German government assisted to improve water supply in the Bhakatpur area under the Bhaktapur Development Project.

The World Bank funding in Kathmandu water supply continued with the implementation of second and third IDA project between 1980 - 1987. More than 30 deep tube wells were constructed to tap groundwater which were considered to be the low cost option compared to tapping of remaining surface water sources. Hotels and industries also started drillin

study of outside valley water sources was carried out in 1988 to tap water from outside the Valley sources. 20 options including bringing in water from Melamchi, Indrawati, Rosi were studied. Although pumping water from Indrawati was found to be the least cost option (based on initial investment cost), it was opted out because of the high operation and maintenance cost involved in high head pumping of Indrawati water. Melamchi and Rosi scheme competed fairly among the gravity system. Environmental impact study funded by UNDP and executed by the World Bank (1989) confirmed Melamchi to be the better option. Eventually a full scale feasibility study of Melamchi scheme was carried out in 1991. Once again this study was funded by UNDP and executed by the World Bank. While the feasibility study of Melamchi scheme was being carried out, the Japanese government assisted in carrying out a master plan study of in Valley sources aimed at developing the in Valley sources as a short term and medium term bridging gap until the Melamchi scheme was commissioned. The construction of Mahankalchaur and Bansbari water treatment plant funded by the Japanese government grant in line with the master plan contributed immensely to avert water crisis in Kathmandu, as the start of the Melamchi project was delayed. The master plan study concluded that groundwater in the Valley was being mined lowering of groundwater table at an alarming rate and pumping of groundwater should be reduced by almost 50% in order to sustain its use. The study also concluded that tapping additional volume of surface water was feasible at least in the wet season. Hence the conjunctive use of water with the use of more surface water for 8 months in an year and resting of wells, and increased use of groundwater for rest of the 4 months during the dry season were recommended.

The World Bank had earlier assisted NWSC in preparing a 15 years (1990 - 2005) comprehensive development plan (CDP). A full scale designing of Melamchi project in the first five years of CDP and construction during the following years were included in the CDP. The targeted date for completion of Melamchi project was set at year 2000. Before the construction of Melamchi works, priority rehabilitation and extension works were planned to be completed. The World Bank assistance in Kathmandu water supply continued with the funding of Urban Water Supply and Sanitation Rehabilitation Project (UWSSRP) in 1992 in line with the CDP. Meanwhile other donors joined hands with the World Bank, UNDP in institutional improvement, consumer education and community participation program, and the Norwegian Government in leakage control. The UWSSRP was designed to rehabilitate and extend water supply and sewerage system and to strengthen the institutional capacity of NWSC in parallel with the physical works. As there was slow progress in the NWSC institutional improvement, the World Bank at the time of mid term review of the UWSSRPt (1997) revised the project component. The UWSSRP closed in 1999 without achieving much of its objectives. Rehabilitation and extension of distribution network which was envisaged to be completed before it received Melamchi water remains incomplete which however is now included in the Melamchi project.

Meanwhile search for funding of Melamchi project continued. The UNDP assisted in conducting a bankable feasibility study ( 1996 ) aimed at studying the possibility of commercial banks investing in the Melamchi project HMG established Melamchi Water Limited in 1997 to implement Melamchi project through internal and/or external funding.. As the Asian Development Bank, the Norwegian Government and some other donors took interest in funding the Melamchi project the HMG established the Melamchi Water Supply Development Board in 1998. At present ADB, the Japanese Government, the Japanse Bank for International Cooperation (JBIC), the Norwegian Government, the Swedish Government, OPEC Fund and the Nordic Development Fund (NDF) are involved in the Melamchi project. The Japanese government is continuing its assistance to implement the Manohara scheme and improving the Sundarijal system in order to supplement Kathmandu water supply prior to the completion of the Melamchi project.

More than 25 long years of involvement of the World Bank in Kathmandu water supply concluded recently. Despite sincere efforts by HMG and the continued support from the World Bank, the water supply situation in Kathmandu is still far from satisfactory, non the less, the supply volume, service area and population served has grossly increased from what it was in 1975 to what it is today. The situation would have worsened without the World Bank and other donors assistance.

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