The MWSP is designed to finance four major components:
i) Infrastructure Development
Infrastructure development comprising a 26 km diversion tunnel, access roads, water treatment plant and bulk distribution system, distribution network improvement, wastewater system improvement and water source improvement in Kathmandu valley.
(ii) Social and Environmental Support
Social and environmental support to mitigate potential negative project impacts and improve the living conditions of the beneficiaries;
(iii) Institutional Reforms
Institutional reforms comprising a PSP scheme for water services delivery in the Kathmandu valley and the modality of which was later revised in the Sector Development Program (SDP); and
(iv) Project Implementation Support.
Project implementation support. MPPW is the executing Agency and MWSDB is the implementing Agency.
But after the establishment of Kathmandu Valley Water Supply Management Board (KVWSMB) and Kathmadu Upatyaka Khanipani Limited (KUKL) under the agreed institutional reform decision made by the government of Nepal in xxxxxx < date>, many roles and responsibilities of the existing implementing agency, MWSDB is transferred to KVMSMB and KUKL. Therefore it is proposed that the MWSP be split into two separate subprojects:
- Melamchi River water diversion subproject (subproject 1), and
- Kathmandu valley water supply and sanitation subproject (subproject 2)
Since then, the Board has been governing the activities as assigned to subproject1. The ministry of Physical Planning and Works (MPPW) remains the executing agency for both subprojects.
MWSDB has experienced serious implementation delays in the past at least (partly) because of MWSDB’s withdrawal of committed loans from different funding agencies e.g.World Bank,Sida,Norad etc. – significant changes are made to streamline MWSDB’s management and organizational structure. Changes included re-organization of MWSDB and revision of its internal processes (including its formation order). The project management unit (PMU) established under the implementing agency is headed by a fulltime executive director who will be designated as a signatory for withdrawing the loan funds, and will continue to be responsible for the overall management of subproject 1.
The PMU will maintain the subproject imprest account and will be supported by a consultant team in preparing progress reports and other relevant documents for line ministries and the donors including ADB, with respect to subproject 1. The PMU will be restructured based on functional divisions; each unit will consist of qualified technical staff. Units handling the main infrastructure, civil works and social programs for the Melamchi valley are engineering and safeguard units.