The Second Small Towns Water Supply and Sanitation Sector Project (the Project) is designed to improve the health and economic and environmental living conditions of people in small towns in Nepal. The expected outcome of the Project is improved, affordable, and sustainable water supply and sanitation services, which are governed and managed by locally accountable representative bodies.
The Project has three components. Component 1 will develop an efficient, effective, and accountable urban water supply and sanitation sector by establishing and implementing policies, establishing service standards, and enhancing sector coordination. Component 2 will entail development of safe, accessible, and adequate water supply and sanitation facilities in about 20 small towns. Component 3 will strengthen governance and capacity for project management and operation.
The Project investment cost is estimated at $71.7 million, including taxes and duties of $7.5 million.
A grant of $45.1 million will be provided under ADB's Special Funds resources to finance 62.9% of the total project cost. The Government will provide $20.5 million equivalent to cover (i) taxes and duties, (ii) a part of civil works costs, (iii) a part of OBA grants, and (iv) a part of incremental recurrent Government staff costs. WUSCs (beneficiaries) and local governments will contribute $6.1 million equivalent.