W aterand Sanitation forallin N epal-sectorfinancing requirem ents -February 2002
Sustained D rinking W ater and Sanitation for allin
N epal -Sector Financing R equirem ents
A calculation for discussion with the N epalD evelopm entForum 2002 and other water
supply and sanitation agencies who are invited to exam ine our assum ptions,provide
additionaldata and discuss the results.
February2002
W aterA id N epal
P.O Box 20214
BishalN agar,D alkho C how k
K athm andu
Telephone:977-1-422230,422768
Fax:977-1-413812
Em ail:w ateraid@ m os.com .np
D raft2 – February 2002
Page 1 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
Table O fC ontents
ES1
EX EC U TIV E SU M M A R Y ............................................................................................................3
ES1.1
ES1.2
ES1.3
ES1.4
IN TRO D U CTIO N .............................................................................................................................3
SU M M A RY O F TH E REPO RT ...........................................................................................................3
D A TA A SSU M PTIO N S ....................................................................................................................7
O RG A N ISA TIO N O F TH E REPO RT ...................................................................................................7
1
M ETH O D O LO G Y .............................................................................................................................8
2
TH E D R IN K IN G W A TER ,SA N ITA TIO N A N D H Y G IEN E SEC TO R IN N EPA L...................9
2.1
SECTO R IN STITU TIO N S ......................................................................................................................9
3
D IV ISIO N O F N EPA L IN TO ZO N ES .............................................................................................9
4
R U R A L R EQ U IR EM EN TS.............................................................................................................10
4.1
4.2
4.3
4.4
4.5
4.6
5
PO PU LA TIO N ...................................................................................................................................10
C O V ERA G E ......................................................................................................................................10
TA RG ETS .........................................................................................................................................11
U N IT C O STS ....................................................................................................................................14
R EH A BILITA TIO N TA SK ...................................................................................................................16
SECTO R FIN A N CIN G REQ U IREM EN T -RU RA L ...................................................................................18
U R BA N R EQ U IR EM EN T ...............................................................................................................20
5.1
5.2
5.3
5.4
5.5
5.6
PO PU LA TIO N ...................................................................................................................................20
C O V ERA G E ......................................................................................................................................20
TA RG ETS .........................................................................................................................................21
U N IT C O STS ....................................................................................................................................23
R EH A BILITA TIO N TA SK ...................................................................................................................24
SECTO R FIN A N CIN G REQ U IREM EN TS – U RBA N .................................................................................25
6
TO TA L SEC TO R FIN A N C IN G R EQ U IR EM EN TS....................................................................27
7
R ESO U R C ES....................................................................................................................................27
7.1
7.2
7.3
7.4
7.5
7.6
8
SECTO R FIN A N CIN G ........................................................................................................................27
H M G N EX PEN D ITU RE .....................................................................................................................28
FO REIG N A SSISTA N CE .....................................................................................................................28
C O M M U N ITY FU N D IN G ....................................................................................................................29
V D C S,D D C S A LLO CA TIO N S ..........................................................................................................30
TO TA L SECTO R R ESO U RCE .............................................................................................................30
R ESO U R C E G A P.............................................................................................................................31
8.1
ESTIM A TED RESO U RCE G A P.............................................................................................................31
A PPEN D IX A .............................................................................................................................................33
A PPEN D IX B..............................................................................................................................................39
A PPEN D IX C .............................................................................................................................................40
1$ = R PS 75
D raft2 – February 2002
Page 2 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
ES1
Executive Sum m ary
ES1.1 Introduction
H M G N is currently considering the targets forw atersupply and sanitation to be setin the 10th
FY P.A paperon the W aterSupply and Sanitation Sectorw ritten fordiscussion atthe N epal
D evelopm entForum 2002 proposes targets of86.6% w atersupply coverage(85% ruraland 95%
urban)and 50% sanitation coverage (43% ruraland 83% urban)by the end ofthe plan period,
2007.
M any countries,including N epal,and donors have com m itted them selves to the targetofhalving
the num bersofpeople w orld-w ide thatare unserved w ith w aterand/orsanitation by 2015.
H M G N is also reported to be considering tw o additionaltargets of1)U niversalw atersupply by
2015 and 2)U niversalSanitation by 2025.
These targets are very challenging yetalso achievable.H ow everifthe targets are to be m etthe
required resources m ustbe available.
This reportidentifies allthe resources currently available in the w atersupply and sanitation sector
in N epal,estim ates the resources required to m eetthe targets and calculates the resource gap.
ES1.2 Sum m ary ofthe report
ES1.2.1 Study O bjective
The prim ary objective ofthe reportis to prom ote discussion w ithin the w atersupply and
sanitation sectorabouttheadditionalresources required to m eetthe targets.Estim ates ofthe
resource gap provide the basis foradvocating forincreased sectorexpenditureby H M G N and the
internationaldonorcom m unity.Preparations ofthe 10th FY P are w ellunderw ay and the N epal
D evelopm entForum is being held in February 2002. By presenting draftconsultation papers on
its w eb site the N epalD evelopm entForum has presented civilsociety w ith an opportunity to be
directly involved w ith the N PC and provide inputinto the form ation ofsectorstrategies.
W aterA id w elcom es the opportunity to engage w ith the N PC and this paperis presented in
response to the W aterand Sanitation paperpublished on the N epalD evelopm entForum w ebsite.
ES1.2.2D esign ofResource G ap Tool
The study proceeds through the follow ing steps:
1.
2.
3.
4.
5.
6.
7.
8.
9.
D ivision ofN epalinto zones w ith regard to w atersupply technology used
Estim ation ofthe population in the targetyears
Estim ation ofcurrentdrinking w aterand sanitation coverage
Presentation ofthe targets
Estim ation ofthe unitcosts
Estim ation ofthe rehabilitation task
Calculation ofthe resources required to m eetthe targets
Estim ation ofthe sectorresources
Calculation ofthe resource gap
D raft2 – February 2002
Page 3 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
ES1.2.3 Findings and Results
D ivision ofNepalinto zones
N epalcan be divided into 5 zones based on the w atersupply technologies used in these areas.
W hen calculating sectorfinancing requirem ents itis im perative to m ake these distinctions as
coverage and percapita unitcosts forw atersupply and sanitation vary significantly betw een the
zones.These zones and the m ain w atersupply technologies used in these areas are presented
below .
Zone
R ural
H ills and m ountains
Terai
Teraiboulderzone
U rban
K athm andu
Sm alltow ns
W ater supply technology
G ravity flow schem es
Shallow tubew ell
D eep tube w ell
Piped system ;M elam chi
Piped system
Coverage D ata
A nalysis of12 sets ofcoverage data from the lastdecade show ed thatthere are w ide
discrepancies in reported coverage.W ithoutvalid estim ates ofcoverage,itis im possible to know
eitherthe m agnitudeofthe task to achieve the targets norw hatprogress is being m ade.Forthe
purposes ofthis study w e estim ated the follow ing levels ofcoverage.
Table 1-1 Estim ated C overage
Zone
% ofpopulation D rinking W ater %
Sanitation %
R ural
85
70
20
H ills and m ountains
55
65
20
Terai
40
85
20
Teraiboulderzone
5
10
10
U rban
15
83
78
K athm andu
44
87
95
Sm allTow ns
56
80
65
D istrictCoverage
A nalysis ofdistrictcoverage data indicates thatthe Eastern D evelopm entregion has the low est
coverage ofaccess to drinking w aterand the FarW esthas the highestcoverage.Because ofits
extrem e poverty how everm any developm entprogram m es focus on the M id and FarW est
Regions.
Targets
Table 1-2 details the num berofadditionalpeople to serve peryearin orderto m eetthe targets.
D raft2 – February 2002
Page 4 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
Table 1-2 – N o.ofpeople to serve per year in order to m eetthe targets ('000)
N o.ofpeople to
N o.ofpeople to
serve w ith drinking serve w ith
w ater per year
sanitation per year
Target
To m eetproposed 10th FY P target
1,135
1,284
To halve num berofpeople unserved w ith w ater
and sanitation by 2015
717
1,084
To achieve universalw atersuply by 2015 and
universalsanitation by 2025
950
1,270
U nitCosts
A nalysis ofunitcosts show ed thatreported costs vary considerably by technology,by region,by
distance from the road head,by com m unity size,by m ode ofcalculation and by im plem enting
agency. W e estim ated the externalassistance required foreach additionalperson covered is as
follow s.
Table 1-3 Estim ated A verage Per C apita U nitC osts – externalcom ponent(R ps)
R ural-hills & m ontains
R ural-terai
R ural-terai-boulderzone
Sm alltow ns
K athm andu
W ater
2,600
600
2,700
3,000
23,400
Sanitation & hygiene
400
750
750
800
800
Rehabilitation Task
Rehabilitation ofw atersupply system sis estim ated at$ 24.46 m illion peryear(rural$ 20.92m
and urban $ 3.54m (excluding K athm andu)).D ue to lack ofdata currentestim ates ofthe
rehabilitation task are w eak,how everinitialanalysis indicates thatrehabilitation could be the
single largestexpenditure item in achieving universalaccess to w ater.
Totalsector financing requirem ents
The average annualtotalsectorrequirem entis estim ated at$117 to $133 m illion,a figure
w hich com bines the costs ofthe M elam chitunnel,w hich averages $58.6 m illion over8
years,w ith the annualcostestim ates fordifferenttargets.
Resources
Sectorinvestm ents to projects are provided from H M G N ,bilateraldonorgrants,D evelopm ent
Bank loans,IN G O s,com m unity contributions,V D C and D D C allocations and by users.A nnual
H M G N developm entexpenditure in theW S sectoris currently estim ated at$14m .Foreign
assistance has averaged $18 m peryearsince 1997 (63% loan and 37% grant).Com m unity and
V D C contributions vary betw een projectand im plem enting agency.
D raft2 – February 2002
Page 5 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
A nnualresources currently available and planned total$81.05 m illion (rural$18.14m ,urban
$62.9m ).The urban population currently 15% and increasing to 23% by 2015,w illreceive 78%
ofallsectorinvestm ent.
Estim ated Resource G ap
A nnualand planned resources currently available total$81.05 m illion.To achieve the proposed
10th FY P targets of86.6% w atersupply coverage and 50% sanitation coverage by 2007im plies
an additional$52.43 m peryearw illbe required.
Table 1-4 R esource gap profile for m eeting proposed 10th FY P targets in $m per year
M elam chicosts
O ther costs
R ehabilitation costs
Totalrequirem ent
C urrentand planned resources
R esource gap
2001-08
58.60
50.41
24.46
133.47
81.05
52.43
A nnualand planned resources currently available total$81.05 m illion.To achieve the m odest
targetofhalving the unserved by 2015 im pliesan additional$35.74 m peryearw illbe required.
Table 1-4 R esource gap profile for halving num bers ofunserved by 2015 in $m per year
M elam chicosts
O ther costs
R ehabilitation costs
Totalrequirem ent
C urrentand planned resources
R esource gap
2001-08 2009-15
58.60
0
33.72
33.72
24.46
24.46
116.79
58.19
81.05
22.45
35.74
35.74
To achieve the targetofuniversaldrinking w aterby 2015 and universalsanitation by 2025 an
additional$46.28 m peryearis required.
Table 1-5 R esource gap profile for provision ofuniversaldrinking w ater by 2015 and
universalsanitation by 2025 in $m per year
M elam chicosts
O ther costs
R ehabilitation costs
Totalrequirem ent
C urrentand planned resources
R esource gap
2001-08 2009-15 2016-25
58.60
0
0
44.27
44.27
44.27
24.46
24.46
24.46
127.33
68.73
68.73
81.05
22.45
22.45
46.28
46.28
46.28
A m id range estim ate ofthe resource gap is thus $44.8 m illion a year.
D raft2 – February 2002
Page 6 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
ES1.3 D ata A ssum ptions
D ue to discrepancies and uncertainties in m uch ofthe data obtained during the research process a
num berofassum ptions have had to be m ade.These assum ptions are explained as they appearin
the m ain report.
The data assum ptions have a considerable bearing on the estim ated resource gap.
W A N invites the N epalD evelopm entForum 2002 to challenge the data assum ptions
m ade in the report.Ifalternative dataassum ptions are provided W A N w illm ake a
revised estim ate ofthe resource gap.
ES1.4 O rganisation ofthe report
The reportis organised into a m ain section,com prising 8 chapters,and 3 appendices.
The m ain body ofthe reportpresents details ofthe research sum m arised above.
Section 1 describes the research m ethodology.
Section 2 sets the reportin contextand gives a briefsum m ary ofthe W & S sectorin N epal.
Section 3 divides N epalinto zones w ith regard to w atersupply technology used.
Section 4 calculates the resources required to m eetthe targets in ruralareas by estim ating the
population;estim ating coverage;review ing the targets and estim ating the rehabilitation task.
Section 5 calculates the resources required to m eetthe targets in urban areas by estim ating the
population;estim ating coverage;review ing the targets and estim ating the rehabilitation task.
Section 6 brings the ruraland urban requirem ents togetherto estim ate the totalrequirem entto
m eetthe targets.
Section 7 estim ates sectorresources,including H M G N expenditure,foreign assistance,
com m unity and V D C,D D C contributions.
Section 8 calculates the resource gap.
In A ppendix A the location ofthe unserved is identified.
In A ppendix B donorloan/grantdata is presented.
A ppendix C has a listofabbreviations and acronym s.
D raft2 – February 2002
Page 7 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
1
M ethodology
The fram ew ork forthe resource gap calculation,is illustrated below .
Figure 1-1 R esource G ap C alculation Fram ew ork
D IVISIO N O F N EPA L
IN TO ZO N ES
(data input)
C U R R EN T
C O VER A G E
C U R R EN T A N D
PR O JEC TED
PO PU LA TIO N
(data input)
(data input)
TA R G ETS
(setby H M G N )
A D D ITIO N A L N U M B ER TO SER VE EA C H YEA R
(calculation)
X U N IT C O STS
(data input)
C U R R EN T &
PLA N N ED
R ESO U R C ES
R EQ U IR EM EN T
Vs
(calculation)
(data input)
= R ESO U R C E G A P
(calculation)
D raft2 – February 2002
Page 8 of40
R EH A B ILITA TIO N
+
(calculation)
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
N epalw as divided into five zones dependentupon the w atersupply technology used in these
areas.Estim ates offuture populations and currentcoverage w ere used to calculate the additional
num berofpeople thatneed to be served in orderto m eetthe targets.The resultantestim ated
num berofpeople to serve w as m ultiplied by the estim ated unitcosts forprovision ofw ater
supply and sanitation.This figure plus the estim ated annualrehabilitation costis the sector
resource required to m eetthe targets (the requirem ent).Currentsectorresources w ere calculated
and subtracted from the requirem entin orderto identify the estim ated resource gap.
D ata foreach ofthe inputareasin the fram ew ork (population;coverage;unitcosts and resources)
w ere soughtfrom a range ofsources – H M G N Econom ic Surveys;U N D P D evelopm ent
Cooperation Reports;W orld Bank reports;N G O reports and IN G O reports.
Excelspreadsheets w ere developed foreach ofthe areas.These sheets w ere linked to calculate
the finalresource gap.The sheets have been designed in such a w ay as to recalculate the gap as
revised data is obtained and entered.
2
The drinking w ater,sanitation and hygiene sector in N epal
2.1
Sector institutions
There are atleasta dozen differentH M G N agenciesw ith an interestin drinking w aterand
sanitation. The m ain responsibility forprovision is assigned to tw o departm ents – forruraland
som e sm alltow ns the D epartm entofW aterSupply and Sew erage (D W SS)and forfive urban
areas in K athm andu valley and anothernine tow ns (w ith an urban population of40,000 orm ore
in 1991)the N epalW aterSupply Corporation (N W SC). Both are w ithin the M inistry ofH ousing
and PhysicalPlanning. There are approxim ately a dozen bilateraland m ultilateralagencies
w orking in the sector.
3
D ivision ofN epalinto zones
N epalcan be divided into 5 zones based on the w atersupply technologies used in these areas.
W hen calculating sectorfinancing requirem ents itis im perative to m ake these distinctions as
coverage and percapita unitcosts forw atersupply and sanitation vary significantly betw een the
zones.These zones and the m ain w atersupply technologies used in these areas are presented
below .
Table 2.1 W ater supply technologies used in various zones
Zone
R ural
H ills and m ountains
Terai
Teraiboulderzone
U rban
K athm andu
Sm alltow ns
D raft2 – February 2002
Page 9 of40
W ater supply technology
G ravity flow schem es
Shallow tubew ell
D eep tube w ell
Piped system ;M elam chi
Piped system
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
4
R uralR equirem ents
By m aking estim ates ofpopulation,coverage,unitcosts and the rehabilitation task and review ing
the targets this section estim ates the financing requirem ents to m eetthe various targets in rural
N epal.
4.1
Population
In orderto estim ate the num berofpeople thatrequire W & S provision ifthe targets are to be m et,
currentand future populations m ustbe predicted.In 1999 W aterand Energy Com m ission
Secretariat(W ECS),using M oPE data,estim ated the ruralpopulation as 19.417 m illion.Based on
the percentage increase predicted by W ECS of1.165% forthe ruralpopulation,the population in
the targetyears can be estim ated.Forthe purposes ofthis paperthe ruralpopulation has been split
55:40:5 betw een hills and m ountains :Terai:Teraiboulderzone.
Table 4.1 Estim ated ruralpopulation in targetyears ('000)
Y ear
4.2
Total Totalrural H ills and
population population m ountains
(55% )
Terai
(40% )
Teraiboulder
zone (5% )
1999
22,709
19,417
10,679
7,767
971
2001
23,482
19,872
10,930
7,949
994
2007
26,065
21,302
11,716
8,521
1,065
2015
30,261
23,370
12,854
9,348
1,169
2025
37,174
26,240
14,432
10,496
1,312
C overage
Estim ates ofcoverage
Estim ates ofw atersupply and sanitation coverage,vary w idely as can be seen from the different
results from 10 surveys and sum m ariesm ade during the pastdecade.
Table 4.2 Estim ates ofw ater supply and sanitation coverage in ruralN epal
D ate
Source
1991
1996
1996
N epalFam ily H ealth Survey
N epalFam ily H ealth Survey
N epalLiving Standards
Survey
H M G N A chievem entof8th
FY P
W orld Bank
W ECS W aterResources
Strategy N epal
D FID – A ddressing the W ater
Crisis
1997
1997
1999
2000
D raft2 – February 2002
Page 10 of40
%
%
R ural R ural
w ater sanitation
43
16.3
61.4
17.5
68.8
17.7
60.9
16
59
66
60
18
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
2000
2000
2002
G W SS A ssessm entReport
BCH IM ES/U N ICEF
H M G N Expected
A chievem entof9th FY P
80
78.1
71.3
20
23
20
W ithoutvalid estim ates ofcoverage,itis im possibleto know eitherthe m agnitude ofthe task to
achieve the targets norw hatprogress is being m ade.
C overage estim ate
Forthe purposes ofthis study the follow ing levels ofcoverage are estim ated.
Table 4.3 Estim ated coverage by zone – R ural
Zone
% ofrural
population
55
D rinking W ater %
Sanitation %
65
20
Rural-terai
40
85
20
Rural-teraiboulderzone
5
10
10
70
20
Ruralhills and m ountains
Totalruralcoverage
4.3
Targets
C overage Targets to 2002
The 9th Five-yearPlan (1997-2002)laid outam bitious targets forthe sector-safe w aterforall
and sanitation for36% ofthe ruralpopulation.
Table 4.4 Eightand N inth Plan coverage targets and achievem ents
D ate
1992
1997
1997
2002
Source
Targets for8th FY P
A chievem entof8th FY P
Targets for9th FY P
H M G N Expected
A chievem entof9th FY P
% rural % rural
w ater
sanitation
60.9
100
71.3
16
36
20
A s the plan period com es to an end itis clearthatthe am bitious 9th FY P targets w illnotbe m et.
C overage targets for the nextdecade and beyond
M any countries,including N epal,and donors have recently com m itted them selves to the
am bitious butachievable targetofhalving the num bers ofpeople w orld-w ide thatare unserved
w ith w aterorsanitation by 2015.
H M G N is also reported to be considering tw o additionaltargets of1)U niversalw atersupply by
2015 and 2)U niversalSanitation by 2025.
D raft2 – February 2002
Page 11 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
The W aterSupply and Sanitation Sectorpaperto be presented atthe N epalD evelopm entForum
2002 proposes coverage targets forthe 10th FY P (2002 to 2007)and forthe FY P m edium term
(2002 to 2005).These targets are sum m arised in the table below .
Table 4.5 Proposed 10th FY P ruralcoverage targets
Target
10th FY P
D ate
2007
% rural % rural
w ater sanitation
85
43
In orderto calculate the resource gap itis necessary to break these targets dow n into coverage by
zone w hich w e do in Table 4.6.
Table 4.6 C overage by zone atend of10th FY P period -rural
Zone
% ofrural
population
55
D rinking W ater %
Sanitation %
85
49
Rural-terai
40
90
35
Rural-teraiboulderzone
5
40
40
85
43
Ruralhills and m ountains
Totalruralcoverage
A dditionalruralpopulation to be served to m eetthe targets
Based on population and coverage estim ates detailed above the im plications ofthese various
targets forruralN epalcan be calculated.
D raft2 – February 2002
Page 12 of40
W aterand Sanitation forallin N epal-sectorfinancing requirem ents -February 2002
Table 4.7 A dditionalruralpopulation to be served to m eetthe targets
R ow
R ural H ills and Terai Terai- R ural H ills and
Terai
Teraiw ater m ountainsw ater bouldersanitation m ountainssanitation(40% boulder
sanitation(ofruralpopln) zone
w ater( (40% zone
55% of of w ater
55% of
sanitation
rural rural (5% of
rural
(5% of
popln) popln) rural
popln)
rural
popln)
popln)
2001
1Estim ated population
2Currentestim ated % coverage
3Currentestim ated num berserved
4Currentestim ated num berunserved
2007 (end of10th FY P period)
5Estim ated population
6Targetcoverage
7Targetnum berserved
2015
8Estim ated population
9Targetnum berunserved (1/2 ofrow 4)
10N um berserved (row 8 less row 9)
11% coverage
To reach 10th FY P target
12A ddnlno.to serve in 5 years (row 7 less row 3)
13A ddnlno.to serve each year(row 12/5)
To halve no.unserved by 2015
14A ddnlno.to serve in 15 years (row 10 less row 3)
15A ddnlno.to serve each year(row 14 /14)
To achieve universalw ater supply coverage by 2015
16A ddnlno to serve in 15 yrs (row 8 less row 3)
17A ddnlno.to serve each year(row 16 /14)
To achieve universalsanitation coverage by 2025
18Estim ated population in 2025
19,872
70
13,960
5,912
10,930 7,949
65
85
7,104 6,756
3,825 1,192
994
10
99
894
19,872
20
3,875
15,997
10,930
20
2,186
8,744
7,949
20
1,590
6,359
994
10
99
894
21,302
85
18,107
11,716 8,521
85
90
9,959 7,669
1,065
40
426
21,302
43
9,160
11,716
49
5,741
8,521
35
2,982
1,065
40
426
23,370
2,956
20,414
87%
12,854 9,348
1,913 596
10,941 8,752
85% 94%
1,169
447
721
62%
23,370
7,999
15,372
66%
12,854
4,372
8,482
66%
9,348
3,180
6,169
66%
1,169
447
721
62%
4,147
829
2,854
571
912
182
327
65
5,285
1,057
3,555
711
1,393
279
327
65
6,454
461
3,837 1,996
274 143
622
44
11,497
821
6,296
450
4,579
327
622
44
9,410
672
5,749 2,592
411 185
1,069
76
26,240
14432
10496
1312
22,365
12,246
8,906
1,213
932
510
371
51
19A ddnlno to serve in 25 yrs (row 18 less row 3)
20A ddnlno.to serve each year(row 19 /24)
D raft2 – February 2002
Page 13 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
Table 4.8 N um ber ofpeople to serve each year to m eetruraltargets
N um ber ofpeopleto serve each year
To reach 10th FY P target
To halve no.unserved by 2015
To achieve universalw atersupply by 2015 and
universalsanitation by 2025
W ater
Sanitation
829
1,057
461
821
672
932
This estim ate indicates thatin ruralN epalthe proposed 10th FY P targets are m ore
am bitions than the targets to hale the unserved by 2015 and provide universalw ater
supply by 2015 and universalsanitation by 2025.
4.4
U nitC osts
R uralW ater Supply C osts
Reported costs vary considerably by technology,by region,by distance from the road head,by
com m unity size,by m ode ofcalculation and by im plem enting agency. O nly partialinform ation
has been assem bled to date butthis does illum inate som e ofthe differences and som e ofthe
challenges in com paring differentdata. In the figuresbelow ,costs perbeneficiary are broken out
by region,technology and agency. They suggesta costperperson served by a gravity flow
schem e ofRps 2,932 ($39)forN EW A H ,w hich is som e 40% m ore than the costs associated w ith
D W SS w hich is Rps 2,175 ($29)perperson.
ForN EW A H ,these are the 2000 -01 costs for44 projects,expressed as costperperson forthe
currentpopulation served. These costs includew atersupply,sanitation prom otion and hygiene
education,w hich are divided 70% /17% /13% respectively.W hen the totalcosts have been
adjusted to show w atersupply costonly (i.e.70% ofthe totalcost),then average costis Rps
2,052 ($ 27).
ForD W SS,the data are based on costs perdesign population,w hich is estim ated on average as a
20 yearlife w ith population grow ing at2.1 % -i.e.currentpopulation plus 52% ,taken from
projects constructed throughoutthe 1990's. They include only w atersupply costs,as the D W SS
approach does notinclude sanitation and hygiene.The D W SS costs have been adjusted to reflect
percapita costs atcurrentpopulation estim ates.A verage adjusted costis Rps 3,306 ($ 44).
D raft2 – February 2002
Page 14 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
Table 4.9 U nitC osts by agency,region and technology – rural(R ps)
N EW A H
N EW A H
adjusted
D W SS
D W SS
adjusted
Eastern
3,174
2,222
2,490
3,785
Central
2,737
1,916
1,695
2,576
W estern
2,737
1,916
2,300
3,496
M id W estern
3,035
2,125
2,215
3,367
FarW estern
3,164
2,215
2,175
3,306
A verage
2,932
2,052
2,175
3,306
Eastern
1,203
842
Central
671
470
GW S
FIN N ID A
3,100
2,155
IV R ural Fund
W ater Board
Supply
Project
R egion
G ravity Flow
2,560
R egion
Shallow Tube W ell
W estern
M id W estern
0
1,379
FarW estern
A verage
965
0
1,084
759
268
1,760
2,675
STW /H P
120
182
D TW /H P
215
327
D ug w ell
595
904
D eep Tube W ell
302
N otes:
1) STW = shallow tube w ell,G F= gravity flow ,D TW = deep tube w ell,H P= hand pum p,G W S
= G urkha W elfare Schem e
2) A djusted N EW A H costperperson = 70% ofthe totalcostofprojectdivided by current
population served (source N EW A H ,2000)
3)A djusted D W SS costperperson = totalcostofprojectdivided by design population after20
years (source W ECS,2001)
4)IV RuralW aterSuply Projectfunded by A D B – Percapita cost= Rps 2,560 (source W ater
Supply and Sanitation paperforN epalD evelopm entForum 2002)
5)RuralW aterSupply and Sanitation Fund D evelopm entBoard – Totalpercapita cost Rps
3580.Totalcostincludes costofsupportprogram m e (source W aterSupply and Sanitation paper
forN epalD evelopm entForum 2002).25% overhead costs have been subtracted as they are added
laterin the calculation
A blended estim ate ofsector costs
D raft2 – February 2002
Page 15 of40
2,663
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
Based on the data in Table ??? ourbestestim ate ofthe externalassistance required foreach
additionalperson covered is as follow s.
Table 4.10 Estim ated Per C apita U nitC osts – externalcom ponent(R ps)-rural
R ural-hills & m ountains
R ural-terai
R ural-terai-boulderzone
W ater
Sanitation & hygiene
2,600
400
600
750
2,700
750
In som e cases,these are nottotalcosts as users w illalso m ake significantcontributions:rural
latrines 50% ofthe totalcostis covered by users. In addition,there are organisationaloverhead
costs thatm ightadd betw een 15% and 40% to the above costs,depending on scale ofoperations,
rem oteness,organisationalefficiency,etc.
4.5
R ehabilitation Task
D rinking w aterfacilities deteriorate w ith use,tim e and geologicalm ovem ent.Typicaldesign
lives fordrinking w aterschem esare 20 years.H ence approxim ately 5% ofprojects need
replacem entorrehabilitation every year.
V ery little inform ation is available on the rehabilitation task in N epal.A recentsurvey oftube
w ells in the terairegion by EN PH O and the Red Cross suggests thatover50% ofw ells have
becom em icrobiologically contam inated and require rehabilitation.Initialanalysis ofallD W SS
W aterSupply and Sanitation Profiles indicates thaton average 76% ofexisting piped schem es
require eitherrehabilitation orm ajorrepair.
D raft2 – February 2002
Page 16 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
Table 4.11 N um ber ofpiped schem es requiring rehabilitation or m ajor repair (source
D W SS W ater Supply and Sanitation Profiles 2000)
D istrict
N o.ofpiped N o.of
N o.of
N o.of
Totalno.of
Percentage of
system s
schem es
schem es
schem es
schem es
schem es requiring
requiring
requiring requiring requiring
rehabilitation or
rehabilitation m ajor repairm inor repairrehabilitation or m ajor repair
m ajor repair
248
141
69
7
210
85%
Bhojpur
262
33
179
6
212
81%
D adeldhura
256
31
150
4
181
71%
D ailekh
96
15
56
7
71
74%
D ang
367
100
229
7
329
90%
D archula
216
33
119
1
152
70%
D hankhuta
232
47
176
1
223
96%
D oti
433
69
267
16
336
78%
Ilam
96
36
43
1
79
82%
K alikot
464
58
256
7
314
68%
K hotang
367
36
236
25
272
74%
Pythan
295
29
168
4
197
67%
R olpa
164
13
86
13
99
60%
R ukum
293
98
172
3
270
92%
Sankhuw asava
207
21
131
5
152
73%
Solukhum bu
333
41
181
6
222
67%
Surkhet
304
46
165
8
211
69%
Taplejung
190
81
80
3
161
85%
Tehathum
312
44
176
5
220
71%
U dayapur
Total
5,135
972
2,939
129
3,911
76%
Table 4.12 m akes a crude estim ate ofthe rehabilitation task foruse in the resource gap
calculation,based on an assum ption thatthe annualrehabilitation task is fullreplacem entof2%
ofallw atersupply facilities and repair/partialreplacem ent(costing 50% offullcost)of3% ofall
facilities.
The table displays a calculation thatshow s the totalpopulation ofruralzones,the unitcostper
person atcurrentprices and the totalcostto serve the ruralpopulation.Based on this the
rehabilitation costis calculated.
D raft2 – February 2002
Page 17 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
Table 4.12 Estim ated ruralrehabilitation task
R uralM ountains &
H ills
Population in 2001
('000)
U nitcostin R ps
C ostofuniversal
coverage (R ps m illions)
Totalin $ m illions
@ R ps75=$1
C ostoffull
replacem entof2% of
allschem es
R uralTerai
R uralTerai
Boulder
Zone
Total
10,930
2,600
7,949
600
994
2700
19,872
28,417
4,769
2,683
35,869
378.89
63.59
35.77
478.25
Totalcostplus
25% overhead
R ehabilitation
cost($m )
597.82
C ostofpartial
replacem ent (50% of
fullcost)of3% ofall
schem es
Totalannual
rehabilitation cost
This results in an annualruralrehabilitation task of$20.92m .This calculation assum esw e have
100% coverage now .H ow everthis overestim ation is roughly com pensated forby the factthat
construction during the Panchayatera w as poorand therefore the life ofschem es constructed
during this period is expected to be less than 20 years.
Itappears thatthe rehabilitation task m ay w ellturn outto be the largestsingle
expenditure item in achieving universalaccess to w ater.W aterA id w illcontinue to
gatherdata on this subject,increase its understanding ofthe task and produce a separate
paper.
4.6
Sector financing requirem ent-rural
In Table 4.11 the unitcosts and unserved population estim ates are com bined to produce the
financing requirem ents forthe differenttargets forurban N epal.
D raft2 – February 2002
Page 18 of40
11.96
8.97
20.92
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
Table 4.13 Sector financing requirem ents rural
R uralhills R ural R ural
R ural
R ural
&
terai terai
hills and terai
m ountains
boulder m ountains
zone
1Costperben (Rps)
. To achieve 10th FY P target
2A ddnlno,to serve each year(in thousands)
3A nnualcost(row 1 * row 2 )Rps m illion
4A nnualcost($ m illion)
To halve no.unserved by 2015
5 A ddnlno.to serve each year(in thousands)
6 A nnualcost(row 1 * row 5)Rps m illion
7 A nnualcost($ m illion)
To achieve universalw ater supply coverage by 2015
8 A ddnlno.to serve each year(in thousands)
9 A nnualcost(row 1 * row 8)Rps m illion
10 A nnualcost($ m illion)
To achieve universalsanitation coverage by 2025
11 A ddnlno.to serve each year (in thousands)
12 A nnualcost(row 1 * row 11)Rps m illion
13 A nnualcost($ m illion)
R ural
Total
terai
boulder
zone
W ater
2,600
600
2,700
Sanitation
400
750
570.89 182.44
1,484.30 109.47
19.79
1.46
65.34
176.41
2.35
710.99
284.40
3.79
278.50
208.88
2.79
65.34 1,873.50
49.00 2,312.45
0.65
30.83
274.06 142.54
712.55 85.52
9.50
1.14
44.43
119.96
1.60
449.71
179.88
2.40
327.06
245.30
3.27
44.43 1,282.23
33.32 1,376.54
0.44
18.35
410.68 185.12
1,067.76 111.07
14.24
1.48
76.37
206.20
2.75
1,385.03
18.47
510.26
204.10
2.72
371.10
278.32
3.71
To these estim ates need to be added som e overhead costs,w hich w e estim ate at25% ,and the
rehabilitation task. A t2000 prices the annualrequirem entforreaching the targets are thus
estim ated as follow s:
Table 4.14 A nnualrequirem entto m eetthe ruraltargets
C ostof
w ater and
sanitation
25%
R ehabilitationTotal
overhead
cost
To achieve10th FY P target
To halve no.unserved by 2015
30.83
18.35
7.71
4.59
20.92
20.92
59.46
43.87
To achieve universalw atersupply by 2015
and universalsanitation by 2025
25.40
6.35
20.92
52.68
D raft2 – February 2002
Page 19 of40
750
50.53
37.90
0.51
520.32
6.94
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
5
U rban R equirem ent
By estim ating population,coverage,unitcosts and the rehabilitation task and by review ing the
targets this section estim ates the financing requirem ents to m eetthe various targets in urban
N epal.
5.1
Population
In orderto estim ate the num berofpeople thatrequire W & S provision ifthe targets are to be m et,
currentand future populations m ustbe predicted.In 1999 W aterand Energy Com m ission
Secretariat(W ECS),using M oPE data,estim ated the urban population to be 3.292 m illion.Based
on the percentage increase predicted by W ECS of 4.725% forthe urban population the
population in the targetyears has been estim ated.Forthe purposes ofthis paperthe urban
population is spilt44:56 betw een K athm andu :sm alltow ns.
Table 5.1 Estim ated urban population in targetyears ('000)
Y ear
5.2
Total
population
Total
urban
K athm andu
(44% )
Sm all
tow ns
(56% )
1999
22,709
3,292
1,448
1,844
2001
23,482
3,610
1,589
2,022
2007
26,065
4,763
2,096
2,667
2015
30,261
6,891
3,032
3,859
2025
37,174
10,934
4,811
6,123
C overage
Estim ates ofcoverage
Estim ates ofw aterand sanitation coverage,vary w idely as can be seen from the differentresults
from 11 surveys and sum m ariesm ade during the pastdecade.
Table 5.2 Estim ates ofurban w ater and sanitation coverage
D ate
Source
1991
1996
1996
N epalFam ily H ealth Survey
N epalFam ily H ealth Survey
N epalLiving Standards
Survey
H M G N A chievem entof8th
FY P
W orld Bank
W ECS W aterResources
Strategy N epal
D FID – A ddressing the W ater
Crisis
1997
1997
1999
2000
D raft2 – February 2002
Page 20 of40
%
U rban
w ater
90
84.7
95.6
62.5
%
U rban
sanitation
69.8
73.4
73.7
51
61
66
88
63
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
2000
2000
2001
2002
G W SS,A ssessm entReport
BCH IM ES/U N ICEF
W SP W illingnessto Pay
Study (K athm andu only)
H M G N Expected
A chievem entof9th FY P
85
92.3
75
73
94
72.6
53
W ithoutvalid estim ates ofcoverage,itis im possibleto know eitherthe m agnitude ofthe task to
achieve the targets norw hatprogress is being m ade.
C overage estim ate
Forthe purposes ofthis study the follow ing levels ofcoverage are estim ated.
Table 5.3 Estim ated coverage by zone -U rban
Zone
K TM
Sm allTow ns
Totalurban coverage
5.3
% ofurban
population
44
56
D rinking W ater %
Sanitation %
87
80
83
95
65
78
Targets
C overage Targets to 2002
The 9th Five-yearPlan (1997-2002)laid outam bitious targets forthe sector-safe w aterforall
and sanitation for60% ofthe urban population.
Table 5.4 Eightand ninth plan coverage targets and achievem ents -urban
D ate
1992
1997
1997
2002
Source
Targets for8th FY P
A chievem entof8th FY P
Targets for9th FY P
H M G N Expected
A chievem entof9th FY P
% urban
w ater
62.5
100
72.6
% urban
sanitation
51
60
53
A s the plan period com es to an end,itseem s from the data provided in the coverage section
above (Table 5.2)thatonly the urban sanitation targetw illhave been m et,probably due to
substantialinvestm ents by urban households and som e supportby donorprojects.
C overage targets for the nextdecade and beyond
M any countries,including N epal,and donors have recently com m itted them selves to the
am bitious butachievable targetofhalving the num bers ofpeople w orld-w ide thatare unserved
w ith w aterorsanitation by 2015.
H M G N is also reported to be considering tw o additionaltargets of1)U niversalw atersupply by
2015 and 2)U niversalSanitation by 2025.
D raft2 – February 2002
Page 21 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
The W aterSupply and Sanitation Sectorpaperto be presented atthe N epalD evelopm entForum
2002 proposes coverage targets forthe 10th FY P (2002 to 2007)and forthe plan's m edium term
(2002 to 2005).These targets are sum m arised in the table below .
Table 5.5 Proposed 10th FY P urban targets
Target
10th FY P
D ate
2007
% urban % urban
w ater
sanitation
95
83
In orderto calculate the resource gap itis necessary to break these targets dow n into coverage by
zone,w hich w e do in Table 5.6.
Table 5.6C overage by zone atend of10th FY P period -urban
Zone
D rinking W ater %
Sanitation %
K athm andu
% ofurban
population
44
95
95
Sm alltow ns
56
94
73
95
83
Totalurban coverage
Population to serve to m eetthe targets-urban
Based on population and coverage estim ates detailed above the im plications ofthese various
targets forurban N epalcan be calculated.
D raft2 – February 2002
Page 22 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
Table 5.7 Population to serve to m eetthe targets – urban ('000)
R ow
U rban
w ater
K TM (44% Sm alltow ns U rban
K TM (44% Sm alltow ns
ofurban
(56% of sanitation ofurban
(56% of
population) urban
population) urban
population)
population)
2,001
1Estim ated population
2Currentestim ated % coverage
3Currentestim ated num berserved
4Currentestim ated num berunserved
2007 (end of10th FY P period)
5Estim ated population
6Targetcoverage %
7Targetnum berserved
2015
8Estim ated population
9Targetnum berunserved (1/2 ofrow 4)
10N um berserved (row 8 less row 9)
11% coverage
To reach 10th FY P target
12A ddnlno.to serve in 5 years (row 7 less row 3)
13A ddnlno.to serve each year(row 12/5)
To halve no.unserved by 2015
14A ddnlno.to serve in 15 years (row 10 less row 3)
15A ddnlno.to serve each year(row 14 /14)
To achieve universalw ater supply coverage by 2015
16A ddnlno to serve in 15 yrs (row 8 less row 3)
17A ddnlno.to serve each year(row 16 /14)
To achieve universalsanitation coverage by 2025
18Estim ated population in 2025
19A ddnlno to serve in 25 yrs (row 18 less row 3)
20A ddnlno.to serve each year(row 219/24)
3,610
83
2,997
614
1,589
87
1,382
207
2,022
80
1,617
404
3,610
78
2,816
794
1,589
95
1,509
79
2,022
65
1,314
708
4,763
95
4,525
2,096
95
1,991
2,667
94
2,507
4,763
83
3,953
2,096
95
1,991
2,667
73
1,947
6,891
307
6,584
96%
3,032
103
2,929
97%
3,859
202
3,657
95%
6,891
397
6,494
94%
3,032
40
2,992
99%
3,859
354
3,505
91%
1,528
306
609
122
890
178
1,137
227
482
96
633
127
3,587
256
1,547
110
2,039
146
3,677
263
1,483
106
2,191
156
3,894
278
1,650
118
2,241
160
10,934
8,118
338
4,811
3,302
138
6,123
4,809
200
Table 5.8 N um ber ofpeople to serve to m eetthe urban targets
N um ber ofpeopleto serve each year
W ater
Sanitation
To reach 10th FY P target
306
227
To halve no.unserved by 2015
256
263
To achieve universalw atersupply by 2015 and universal
sanitation by 2025
278
338
5.4
U nitC osts
U rban W ater Supply C osts
D raft2 – February 2002
Page 23 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
Costs forurban residents m ustdistinguish betw een the K athm andu valley and sm alltow ns
elsew here. In the capital,the currentestim ate forthe M elam chitunneland associated
com ponents is $468 m illion,to serve an estim ated currentpopulation ofabout1.5 m illion. Cost
percapita is thus Rps 23,400 or$312.
O utside the K athm andu valley,the bestestim ate found to date is thatm ade by W ECS ofRps
3,000 ($ 40)percapita forw atersupply.The totalpercapita costofthe Sm allTow n W ater
Supply and Sanitation Projectfunded by A D B,w hich is a service upgrading cost,w orks outto be
Rps 3,350 (source source W aterSupply and Sanitation paperforN epalD evelopm entForum
2002).
A blended estim ate ofsectorcosts
Based on this data ourbestestim ate ofthe externalassistance required foreach additionalperson
covered is as follow s.
Table 5.9 Estim ated Per C apita U nitC osts – externalcom ponent(R ps)-U rban
W ater
Sanitation & hygiene
Sm alltow ns
3,000
800
K athm andu
23,400
800
In som e cases,these are nottotalcosts as users w illalso m ake significantcontributions:urban
latrines 60% ofthe totalcostis covered by users. In addition,there are organisationaloverhead
costs thatm ightadd betw een 15% and 40% to the above costs,depending on scale ofoperations,
rem oteness,organisationalefficiency,etc.
5.5
R ehabilitation Task
D rinking w aterfacilities deteriorate w ith use,tim e and geologicalm ovem ent.Typicaldesign
populations fordrinking w aterschem es are 20 years.H ence approxim ately 5% ofprojects need
replacem entorrehabilitation every year.
Table 5.10 m akes a crude estim ate ofthe rehabilitation task foruse in the resource gap
calculation,based on an assum ption thatthe annualrehabilitation task is fullreplacem entof2%
ofallw atersupply facilities and repair/partialreplacem ent(costing 50% offullcost)of3% ofall
facilities.These estim ates are based on the design life ofruralsystem s.Estim ates ofthe urban
rehabilitation task are w eakerthan those forruralrehabilitation.W aterA id w illundertake further
study to gain a betterunderstanding ofthe urban rehabilitation task and w illproduce a separate
paperon the subject.
The table displays a calculation thatshow s the totalpopulation ofsm alltow ns,the unitcostper
person atcurrentprices and the totalcostto serve the urban population (excluding K athm andu).
Based on this the rehabilitation costis calculated.
D raft2 – February 2002
Page 24 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
Table 5.10 Estim ated urban rehabilitation task
Sm all
Tow ns
Population in 2001
('000)
U nitcostin R ps
C ostofuniversal
coverage (R ps m illions)
Totalin $ m illions
@ R ps75=$1
C ostoffull
replacem entof2% of
allschem es
Totalcostplus
25% overhead
R ehabilitation
cost($m )
2,022
3,000
6,066
80.87
101.09
C ostofpartial
replacem ent (50% of
fullcost)of3% ofall
schem es
Totalannual
rehabilitation cost
2.02
1.52
3.54
This results in an annualurban rehabilitation task of$3.54m (excluding K athm andu).This
calculation assum esw e have 100% coverage now .H ow everthis overestim ation is roughly
com pensated forby the factthatconstruction during the Panchayatera w as poorand therefore the
life ofschem es constructed during this period is expected to be less than 20 years.
5.6
Sector financing requirem ents – urban
In Table 5.10 the unitcosts and unserved population estim ates are com bined to produce the
financing requirem ents forthe differenttargets forurban N epal.
D raft2 – February 2002
Page 25 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
Table 5.11 Sector financing requirem ents -urban
R ow
Sm all K TM Sm all Total
tow ns
tow ns
W ater Sanitation
3,000 800 800
1 Costperben (N PR)
To achieve 10th FY P target
2A ddnlno,to serve each year(in thousands)
177.95 96.35126.58
3A nnualcost(row 1 * row 2) Rps m illion
4A nnualcost($ m illion)
To halve no.unserved by 2015
5 A ddnlno.to serve each year(in thousands)
533.86 77.08101.27
7.12 1.03 1.35
400.89
712.21
9.50
145.65105.93156.48
6 A nnualcost(row 1 * row 5)Rps m illion
436.96 84.75125.19
7 A nnualcost($ m illion)
5.83 1.13 1.67
To achieve universalw ater supply coverage by 2015
8 A ddnlno.to serve each year(in thousands)
160.10
9 A nnualcost(row 1 * row 8)Rps m illion
10 A nnualcost($ m illion)
To achieve universalsanitation coverage by 2025
11 A ddnlno.to serve each year (in thousands)
12 A nnualcost(row 1 * row 11)Rps m illion
13 A nnualcost($ m illion)
408.07
646.89
8.63
160.10
480.29
6.40
480.29
6.40
137.57200.36
110.06160.29
1.47 2.14
337.93
270.35
3.60
To these estim ates need to be added som e overhead costs,w hich w e estim ate at25% .A t2000
prices the annualrequirem entforthe targets in urban N epal,excluding K athm andu urban w ater
supply,are thus estim ated as follow s:
Table 5.12 U rban requirem ents to m eetthe targets
C ostofw ater and
25%
R ehabilitationTotal
sanitation (excluding overhead
K TM w ater)
cost
To achieve10th FY P target
To halve no.unserved by 2015
To achieve universalw ater supply coverage by
2015 and universalsanitation coverage by 2025
D raft2 – February 2002
Page 26 of40
9.50
8.63
2.37
2.16
3.54
3.54
15.41
14.32
10.01
2.50
3.54
16.05
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
6
Totalsector financing requirem ents
Ifw e bring togetherthe ruraland urban requirem ents to m eetthe various targets w e can estim ate
the totalsectorfinancing requirem ent.
Table 6.1 TotalSector R equirem ent($ m illions)
Targets
R ural
w ater
annual
cost
Sm all
Tow n
w ater
annual
cost
R ural
Sm alltow n K tm
Totalannual25%
R ehabilitation M elam chiTotal
sanitation sanitation sanitation cost($
overheads
cost
cost
annual m illion)
($m illion)
cost
To m eet10th FY P
target
To halvethe num ber
unserved by 2015 –
w aterand sanitation
23.60
7.12
7.23
1.35
1.03
40.33
10.08
24.46
58.60 133.47
12.24
5.83
6.11
1.67
1.13
26.98
6.74
24.46
58.60 116.79
To achieve universal
w atercoverage by
2015 and universal
sanitation coverage by
2025
18.47
6.40
6.94
2.14
1.47
35.41
8.85
24.46
58.00 126.73
The M elam chitunnelto serve K athm andu valley urban residents w illdom inate sector
investm ents forthe nextdecade. Totalcostis estim ated at$ 328 m illion,spread over8 years.
There w illbe an accom panying projectto rehabilitate and upgrade the existing w atersupply
system ($ 140 m illion over8 years).The totalcostofthese reform s,$ 468 m illion,w illbe
divided 70% ($329 m illion)foreign and 30% H M G N ($ 139 m illion). A nnualH M G N
expenditures are estim ated as $8.3 m illion,equivalentto 59% ofits average expenditure in the
drinking w atersectorsince 1998. A dditionalH M G N supportw illbe in the form oftaxes and
duties forgone. Foreign supportis planned to be divided 84% loans ($277 m illion)and 16%
grants ($53 m illion).
The average annualtotalsectorrequirem entis thus estim ated at$116.79m – $133.47 m ,a figure
w hich com bines the costs ofM elam chi,w hich average $58.6 m illion over8 years w ith the annual
costestim ates fordifferenttargets.
7
R esources
7.1
Sector Financing
Sectorinvestm ents to projects are provided from 7 sources:
1. H M G N budgetallocations to D W SS,N W SC,the M elam chiProjectand otheragencies or
projects.
D raft2 – February 2002
Page 27 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
2. Bilateraldonorgrants to a sm allnum beroflarge N G O s (e.g.D FID grants to N EW A H and
G urkah W elfare Schem e)orto a bilateralproject(e.g.Finnida’s grantto M LD and to D D Cs
in the Lum biniZone).
3. D evelopm entBank loans (A sian D evelopm entBank loans to D W SS,4 phases 1980-2000,
phase 4 $19 m illion;W orld Bank /ID A loan of$ 19 m illion to the Fund Board 1996 – 2002).
4. IN G O (e.g.W aterA id,A ctionA id,CECI,H elvetas)grants to localN G O s .
5. Com m unity contributions in cash orlabourorothersupports (e.g.land).
6. V D C and D D C allocations from theircom m on fund.
7. H ousehold investm ents -m any urban households and som e ruralw illm ake substantial
personalinvestm ents in m eeting theirw aterand sanitation needs.
7.2
H M G N expenditure
H M G N allocates betw een 5 and 7% ofits budgetto drinking w ater– significantly below
hydropow er(20% ),w hich is seen as crucialto long term nationalprosperity,as w ellas irrigation
(9% ),im portantforthe agriculturalcore ofthe econom y. H M G N expenditures fordrinking w ater
are estim ated to be currently about$14m .
Forthe purposes ofthis reportthe data on H M G N expenditure have been taken from the
Econom ic Survey forthe fiscalyear2000/2001 produced by the M inistry ofFinance.The survey
details totalexpenditure in the W & S sector,a com bination ofboth H M G N and donor
contributions.In orderto obtain the H M G N contribution the donorcontribution,as provided by
U N D P in the D evelopm entCooperation Reports,is subtracted from the overallsector
expenditure.
Table 7.1 TotalW & S sector expenditure ($ m illions)
95
96
97
98
99
Totaldevelopm ent
expenditure
23.24
23.41
28.79
28.68
35.50
92.97
30.99
D onor contribution
(U N D P data)
10.70
12.70
14.90
17.30
18.80
51.00
17.00
HM GN
contribution (1-2)
12.54
10.71
13.89
11.38
16.70
41.97
13.99
1997-99
Total
A verage
1
2
3
The average H M G N contribution since 1997 is $13.99 m illion peryear.
H M G N have com m itted $8.3m a yearto the M elam chiproject.This represents 59% ofH M G N
average annualexpenditure since 1997.Forthe purposes ofthis reportthe balance ofthe H M G N
expenditure,$5.69m ,has been split56:15:15:14 betw een ruralw atersupply and sanitation,rural
rehabilitation,urban rehabilitation and sm alltow ns w atersupply and sanitation.
7.3
Foreign assistance
D raft2 – February 2002
Page 28 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
Foreign assistance supportto the sectorhas averaged $16.8 m illion peryearoverthe past9 years,
displaying large fluctuations in the early 1990’s betw een $10 and $26 m illion butstabilising over
the period 1997-1999 ataround $18 m illion peryear.
Forthe purposes ofthe resource gap calculation w e have taken the average ofallforeign
assistance since 1997 and broken itdow n into ruraland urban.Foreign assistance to rehabilitation
and institutionalsupporthas been split50:50 betw een ruraland urban.
Table 7.2 A nnualaverage foreign assistance 1997-99
U rban
K athm andu
M elam chi
Sm alltow ns
Rehabilitation
Institutional
Total
R ural
Rural
Rehabilitation
Institutional
Total
G rand total
7.4
1,384.75
1,212.33
254.83
220.95
792.71
3,865.58
8%
7%
1%
1%
4%
22%
13,090.43
220.95
792.71
14,104.09
17,969.67
73%
1%
4%
78%
100%
C om m unity Funding
Com m unity contributionsdifferdepending on executing agency.G enerally the com m unity are
required to m ake a contribution in term s ofm aterials,laborand a cash lum p sum .
Table 7.3 C om m unity contributions to ruralw ater supply by agency
A gency
N EW A H
FU N D BO A R D
FIN N ID A
D W SS
CARE
C om m unity contribution to capitalcosts
C ash
K ind
O& M
0%
allunskilled labourand local
100%
m aterialand sand collection and
porterage if<8 hrs;totalabout
30% in hills and 5% in terai
H ills– 2.5% ofcapital;
allunskilled labour,local 100% ofO & M costs
Terai– 20% ofcapital
m aterials;totalabout30%
estim ated at3% of
capitalin hills and
4% in terai
Rps1,500 pertap stand
allunskilled labourand local
Rps 1,500 pertap
m aterials and porterage
stand
m in Rps1,000 pertapstand
allunskilled labourand local
m aterials and porterage
totalof27% ofconstruction
cost
allunskilled labourand local
Rps 50 perH H
m aterialsand porterage(project
subsidy available)
D raft2 – February 2002
Page 29 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
49% ofconstruction cost
H ELV ETA S
Rps 225 perH H
Com m unity contributions to the A D B funded Sm allTow ns W aterSupply and Sanitation
program m e are reported to be 20% (source W aterand Sanitation SectorPaperforthe N epal
D evelopm entForum 2002)
The unitprices used in the calculation ofthe resource gap do notinclude the com m unity
contribution and hence the estim ated resource gap is above and beyond the com m unity
contribution.
7.5
VD C s,D D C s allocations
V D Cs and D D Cs contribute to W & S through theircom m on fund.The only data available
to date is forN EW A H projects.D uring 1999-2000 V D Cs contributed $30,000 to 52
N EW A H projects.
Table 7.4 V D C contributions to N EW A H projects in 1999-2000
D ev R egion
VDC
funding
FarW est
M id W est
W estern
C entral
Eastern
Total
490,000
370,000
398,800
902,000
583,127
2,253,927
FIN N ID A requestthatV D Cs m ake a contribution ofRps 300 percapita (13% oftotalcost)for
drinking w aterprojects (gravity flow )and pay 50% ofthe totalcostofinstitutionallatrines.W e
have decided notto draw conclusions based on this partialdata and therefore V D C and D D C
contributionsare notincluded in the resource gap calculations.
7.6
TotalSector R esource
A nnualresources currently available and planned total$81.04 m illion (rural$18.14m ,urban
$62.9m ).The urban population currently 15% and increasing to 23% by 2015,w illreceive 78%
ofallsectorinvestm ent.
Table 7.5 Sector resources ($ m illions)-rural
R uralR esources
R ural
56% ofbalanceofH M G N currentexpenditure on drinking w ater
Foreign loans& grants
$ m illions
per year
3.19
13.09
R ehabilitation
15% ofbalanceofH M G N currentexpenditure on drinking w ater
50% offoreign loans and grants forrehabilitation
0.85
0.22
Institutional
50% offoreign loans and grants forrehabilitation
0.79
Total
D raft2 – February 2002
Page 30 of40
18.14
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
Table 7.6 Sector resources ($ m illions)-urban
U rban R esources
$ m illion
per year
M elam chiand R ehabilitation & U pgrading ofexisting system s in K TM
H M G N M elam chicom m itm ent
O therH M G N inputs($72.6 m illion taxesforgoneover8 years)
Foreign loansforM elam chi($ 276.5 m illion over8 years)
Foreign grants forM elam chi($ 52.5 m illion over8 years)
8.3
9.1
34.6
6.6
R ehabilitation
15% ofbalanceofH M G N currentexpenditure on drinking w ater
50% offoreign loans and grants forrehabilitation
0.85
0.22
Institutional
50% offoreign loans and grants forrehabilitation
0.79
K TM sanitation
Foreign loans& grants
1.38
Sm allTow ns
14% ofbalanceofH M G N currentexpenditure on drinking w ater
Foreign loans& grants
0.80
0.25
Total
62.90
8
R esource G ap
8.1
Estim ated resource gap
To achieve the proposed 10th FY P targetan additional$52.43m peryearw illbe required.
Table 8.1 R esource gap for reaching proposed 10th FY P targets ($ m illions)
R ehabilitation
R esource
R equirem ent
G ap
2.15
24.46
22.31
Sm all
R ural K TM
M elam chiInstitutional
Tow ns
sanitation
1.05 16.28
1.38
58.60
1.59
10.59 38.54
1.28
58.60
9.53 22.26
-0.10
0.00
Total
81.05
133.47
52.43
To achieve the m odesttargetofhalving the unserved by 2015 im plies an additional$35.74 m per
yearw illbe required.
Table 8.2 R esource gap for targetofhalving the unserved by 2015($ m illions)
D raft2 – February 2002
Page 31 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
R ehabilitation
2.15
24.46
22.31
R esource
R equirem ent
G ap
Sm all
R ural K TM
M elam chiInstitutional
Tow ns
sanitation
1.05 16.28
1.38
58.60
1.59
9.37 22.94
1.41
58.60
8.32
6.67
0.03
0.00
Total
81.05
116.79
35.74
To achieve the targetofproviding universaldrinking w aterby 2015 and universalsanitation by
2025 an additional$46.28 m peryearis required.
Table 8.3 R esource gap for targetofproviding universaldrinking w ater by 2015 and
universalsanitation by 2025($ m illions)
R ehabilitation
R esource
R equirem ent
G ap
2.15
24.46
22.31
Sm all
R ural K TM
M elam chiInstitutional
Tow ns
sanitation
1.05 16.28
1.38
58.60
1.59
10.68 31.76
1.83
58.60
9.62 15.48
0.45
0.00
A m id pointestim ate is thus an additional$44.8 m illion is required each year.
D raft2 – February 2002
Page 32 of40
Total
81.05
127.33
46.28
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
A ppendix A
A 1 W here are the unserved?
A 1.1
D istrictC overage
A 1996 ICIM O D reportbreaksdow n thepercentage coveragedata by district,using D W SS data.U sing
districtpopulation estim ates from the D istrictD evelopm entProfileofN epal,2001,num bersofpeople
w ithoutaccessto drinking w atercan beestim ated.D istricts have been ranked in term s ofnum berofpeople
unserved w ith 75 having the low estnum berofunserved and 1 having thelargestnum berofunserved.
TableA 1-1 D istrictC overage and ranking ofnum bers unserved per district
D istrict
Eastern
Taplejung
Sankhuw asava
Solokhum bhu
Panchthar
Ilam
D hankuta
Tehrathum
Bhojpur
O khaldhunga
K hotang
U dayapur
Jhapa
M orang
Sunsari
Saptari
Siraha
Total
1991
population
(census)
2001
population
projection
120,053
141,903
97,200
175,206
229,214
146,386
102,870
198,784
139,457
215,965
221,256
593,737
674,823
463,481
465,668
470,746
145,714
172,234
117,976
212,656
278,208
177,675
124,858
241,273
169,265
262,127
268,549
720,646
819,064
562,548
565,203
571,366
25,661
30,331
20,776
37,450
48,994
31,289
21,988
42,489
29,808
46,162
47,293
126,909
144,241
99,067
99,535
100,620
132,884
157,069
107,588
193,931
253,711
162,031
113,864
220,029
154,361
239,046
244,903
657,192
746,944
513,015
515,436
521,056
4,456,749
5,409,362
952,613
173,236
261,025
36,744
223,900
188,064
321,329
245,260
278,068
314,599
543,672
440,146
210,265
316,818
44,598
271,758
228,262
390,012
297,683
337,504
381,843
659,880
534,226
37,029
55,793
7,854
47,858
40,198
68,683
52,423
59,436
67,244
116,208
94,080
C entral
D olokha
Sindhupalchok
Rasuw a
Sindhuli
Ram echhap
K avrepalanchok
N uw akot
D hading
M akaw anpur
D hanusa
M ahottari
D raft2 – February 2002
Page 33 of40
Estim ated
D W SS
Population in estim ated
1996 (1991
access to
population
increase 1991- poln plus 5/10 w ater in
2001
increase) 1996 in %
N um ber
unserved
R ank
53.72
41.98
57.30
36.86
44.04
80.06
56.08
30.32
52.22
43.42
20.77
47.36
45.70
57.69
52.31
46.56
61,498
91,131
45,940
122,448
141,977
32,309
50,009
153,316
73,754
135,252
194,036
345,946
405,590
217,056
245,811
278,452
50
40
58
28
24
65
54
20
45
25
12
2
1
11
6
4
4,933,056
47.4%
2,594,526
191,751
288,922
40,671
247,829
208,163
355,671
271,472
307,786
348,221
601,776
487,186
57.87
60.75
78.52
27.93
48.38
47.47
38.19
28.70
37.15
63.35
98.21
80,784
113,402
8,736
178,610
107,454
186,834
167,797
219,451
218,857
220,551
8,721
41
31
71
16
35
13
18
8
9
7
72
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
Sarlahi
Rauthat
Bara
Parsa
Chitw an
Lalitpur
Bhaktapur
K athm andu
Total
492,798
414,005
415,718
372,524
354,488
257,086
172,952
675,341
598,132
502,497
504,576
452,150
430,258
312,037
209,920
819,693
105,334
88,492
88,858
79,626
75,770
54,951
36,968
144,352
545,465
458,251
460,147
412,337
392,373
284,562
191,436
747,517
79.61
52.45
59.68
70.24
32.81
60.93
50.29
59.87
111,220
217,898
185,531
122,711
263,635
111,178
95,163
299,979
6,180,955
7,502,112
1,321,157
6,841,534
57.3%
2,918,513
5,363
14,292
252,524
153,697
268,073
273,526
292,945
100,552
143,502
232,486
266,331
236,313
180,884
436,217
522,150
371,778
6,509
17,347
306,500
186,549
325,373
331,991
355,561
122,045
174,175
282,179
323,258
286,824
219,547
529,457
633,758
451,244
1,146
3,055
53,976
32,852
57,300
58,465
62,616
21,493
30,673
49,693
56,927
50,511
38,663
93,240
111,608
79,466
5,936
15,820
279,512
170,123
296,723
302,759
324,253
111,299
158,839
257,333
294,795
261,569
200,216
482,837
577,954
411,511
97.87
98.01
47.07
76.02
41.58
40.40
85.14
89.71
67.13
37.19
56.64
57.50
46.89
74.74
86.84
82.81
126
315
147,946
40,795
173,346
180,444
48,184
11,453
52,210
161,631
127,823
111,167
106,334
121,965
76,059
70,739
3,750,633
4,552,317
801,684
4,151,475
65.5%
1,430,536
25,013
75,964
88,805
36,364
34,383
175,469
179,624
155,554
181,785
225,768
187,400
113,958
351,413
285,604
290,313
30,359
92,201
107,787
44,137
41,732
212,975
218,018
188,803
220,641
274,025
227,456
138,316
426,526
346,651
352,366
5,346
16,237
18,982
7,773
7,349
37,506
38,394
33,249
38,856
48,257
40,056
24,358
75,113
61,047
62,053
27,686
84,083
98,296
40,251
38,058
194,222
198,821
172,179
201,213
249,897
207,428
126,137
388,970
316,128
321,340
64.04
36.94
51.76
54.05
60.00
61.77
53.30
73.82
47.89
73.43
26.42
62.72
63.33
89.62
87.56
9,956
53,022
47,418
18,495
15,223
74,251
92,849
45,076
104,852
66,398
152,626
47,024
142,635
32,814
39,975
W estern
M anang
M ustang
G orkha
Lam jung
Tanahu
Syangja
K aski
M yagdi
Parbat
Baglung
G ulm i
Palpa
A rghakhanchi
N aw alparasi
Rupandehi
K apilbastu
Total
M id W estern
D olpa
Jum la
K alikot
M ugu
H um la
Pyuthan
Rolpa
Rukum
Salyan
Surkhet
D ailekh
Jajarkot
D ang
Banke
Bardiya
D raft2 – February 2002
Page 34 of40
32
10
14
27
5
33
38
3
75
74
22
61
17
15
55
69
53
19
26
34
36
29
43
46
70
52
56
66
68
44
39
59
37
47
21
57
23
63
62
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
Total
2,407,417
2,921,993
514,576
2,664,705
64.6%
942,614
92,010
139,092
101,683
198,188
167,168
104,647
200,716
417,891
257,906
111,677
168,822
123,417
240,550
202,900
127,015
243,618
507,214
313,032
19,667
29,730
21,734
42,362
35,732
22,368
42,902
89,323
55,126
101,844
153,957
112,550
219,369
185,034
115,831
222,167
462,553
285,469
92.57
49.59
70.87
70.02
69.94
86.81
46.06
86.10
84.80
7,567
77,610
32,786
65,767
55,621
15,278
119,837
64,295
43,391
Total
1,679,301
2,038,245
358,944
1,858,773
74.1%
482,152
N ationalTotal
18,475,055
22,424,029
3,948,974
20,449,542
59.1%
8,368,340
Far W est
Bajura
Bhajang
D archula
A chham
D oti
D adeldhura
Baitadi
K ailali
K anchanpur
Itis interesting to note thatin term s ofaverage % access to drinking w atertheEastern D evelopm entregion
has the low estcoverage and the FarW esthas thehighestcoverage.This is also reflected in the H M G N
assessm entofcoverage atthe end ofthe Eighth Plan (1997).
TableA 1-2 C overageatthe end ofthe EightPlan (‘000)
D ev R egion
Eastern
C entral
W estern
M id W estern
Far W estern
Total
R ural
Popln
%
R ank
5
2,273.0
49.77
4
3,287.0
56.49
3
2,508.3
64.57
2
1,836.8
70.36
1
1,433.6
81.86
11,338.7 60.86
U rban
Popln
%
R ank
4
333.2
55.29
1
1,014.8 69.16
3
292.1
58.55
2
142.4
66.45
5
98.1
43.33
1,880.6 62.49
Total
Popln
%
R ank
5
2,606.2
50.41
4
4,301.8
59.05
3
2,800.4
63.88
2
1,979.2
70.07
1
1,531.7
77.45
13,219.3 61.08
Thispattern w as also reflected in the Cow aterInternational/A SD B coveragedata (1994)detailed below ,
w hich analysed the population covered by agency and region.
D raft2 – February 2002
Page 35 of40
73
42
64
48
51
67
30
49
60
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
TableA 1-3 C ow ater coverage data 1994
R ank
1 PrivateSector
2 D W SS
3
4
5
6
7
8
9
A 1.2
U N IC EFD W SS &
H ELV ITA SD W SS
N W SC
M LD /IR D
A D B-D W SS
NG O
DDC
O thers
TotalC overed
Total
Population
% C overed
R ank
Eastern
1204.5
460.4
C entral
1340.4
1069.2
W estern M id W est FarW est
840.2
414.2
348.3
482.3
490.2
346.6
200.8
90
53.9
46
46.4
40.9
11.2
2154.1
114.2
557.3
206.8
294
114
10.4
90.9
101.9
4615.1
46.68%
5
115.9
3480.7
171.9
55.8
43.2
2011.8
110.3
23.5
78.3
159.5
7.6
38.5
1322.1
1039.7
6476.1
53.75%
2
3897.6
51.62%
4
2509.2
52.69%
3
1767.9
58.81%
1
27.4
168.6
32.9
Total
4147.6
2848.7
%
21.53
14.79
835.2
784.8
376.8
374.1
316.8
270.1
54.4
10008.5
4.34
4.07
1.96
1.94
1.64
1.40
0.28
52.01
19265.9
52.01%
R anking ofdistricts in term s ofnum bersofpeople served
D istrictcoveragedata can beused to calculate the estim ated num berof peopleunserved in each district
and the% ofthe totalunserved.In tableA 1-4 districts have been ranked in term s ofnum berofpeople
unserved w ith 75 having the low estnum berofunserved and 1 having thelargestnum berofunserved.
Table A 1-4 R anking ofdistricts in term sofnum bers unserved
R ank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
D istrict
M orang
Jhapa
K athm andu
Siraha
Chitw an
Saptari
D hanusa
D hading
M akaw anpur
Rauthat
Sunsari
U dayapur
K avrepalanchok
Bara
Syangja
Sindhuli
Tanahu
D raft2 – February 2002
Page 36 of40
Estim ated num ber
ofunserved in
1996
D ev R egion
E
405,590
E
345,946
C
299,979
E
278,452
C
263,635
E
245,811
C
220,551
C
219,451
C
218,857
C
217,898
E
217,056
E
194,036
C
186,834
C
185,531
W
180,444
C
178,610
W
173,346
% oftotal
unserved
4.847%
4.134%
3.585%
3.327%
3.150%
2.937%
2.636%
2.622%
2.615%
2.604%
2.594%
2.319%
2.233%
2.217%
2.156%
2.134%
2.071%
C um ulative% oftotal
unserved
4.847%
8.981%
12.565%
15.893%
19.043%
21.981%
24.616%
27.239%
29.854%
32.458%
35.051%
37.370%
39.603%
41.820%
43.976%
46.110%
48.182%
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
N uw akot
Baglung
Bhojpur
D ailekh
G orkha
D ang
Ilam
K hotang
G ulm i
Parsa
Panchthar
N aw alparasi
Baitadi
Sindhupalchok
Sarlahi
Lalitpur
Palpa
Ram echhap
A rghakhanchi
Salyan
Bhaktapur
Rolpa
Sankhuw asava
D olokha
Bhajang
Rupandehi
Pyuthan
O khaldhunga
K apilbastu
Surkhet
A chham
K ailali
Taplejung
D oti
Jum la
Parbat
Tehrathum
K aski
K alikot
Jajarkot
Solokhum bhu
Rukum
K anchanpur
Lam jung
Bardiya
Banke
D archula
D hankuta
D raft2 – February 2002
Page 37 of40
C
W
E
MW
W
MW
E
E
W
C
E
W
FW
C
C
C
W
C
W
MW
C
MW
E
C
FW
W
MW
E
W
MW
FW
FW
E
FW
MW
W
E
W
MW
MW
E
MW
FW
W
MW
MW
FW
E
167,797
161,631
153,316
152,626
147,946
142,635
141,977
135,252
127,823
122,711
122,448
121,965
119,837
113,402
111,220
111,178
111,167
107,454
106,334
104,852
95,163
92,849
91,131
80,784
77,610
76,059
74,251
73,754
70,739
66,398
65,767
64,295
61,498
55,621
53,022
52,210
50,009
48,184
47,418
47,024
45,940
45,076
43,391
40,795
39,975
32,814
32,786
32,309
2.005%
1.931%
1.832%
1.824%
1.768%
1.704%
1.697%
1.616%
1.527%
1.466%
1.463%
1.457%
1.432%
1.355%
1.329%
1.329%
1.328%
1.284%
1.271%
1.253%
1.137%
1.110%
1.089%
0.965%
0.927%
0.909%
0.887%
0.881%
0.845%
0.793%
0.786%
0.768%
0.735%
0.665%
0.634%
0.624%
0.598%
0.576%
0.567%
0.562%
0.549%
0.539%
0.519%
0.487%
0.478%
0.392%
0.392%
0.386%
50.187%
52.119%
53.951%
55.774%
57.542%
59.247%
60.943%
62.560%
64.087%
65.554%
67.017%
68.474%
69.906%
71.261%
72.590%
73.919%
75.247%
76.531%
77.802%
79.055%
80.192%
81.302%
82.391%
83.356%
84.284%
85.192%
86.080%
86.961%
87.806%
88.600%
89.386%
90.154%
90.889%
91.554%
92.187%
92.811%
93.409%
93.984%
94.551%
95.113%
95.662%
96.201%
96.719%
97.207%
97.684%
98.077%
98.468%
98.854%
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
66
67
68
69
70
71
72
73
74
75
M ugu
D adeldhura
H um la
M yagdi
D olpa
Rasuw a
M ahottari
Bajura
M ustang
M anang
MW
FW
MW
W
MW
C
C
FW
W
W
18,495
15,278
15,223
11,453
9,956
8,736
8,721
7,567
315
126
0.221%
0.183%
0.182%
0.137%
0.119%
0.104%
0.104%
0.090%
0.004%
0.002%
99.075%
99.258%
99.440%
99.577%
99.696%
99.800%
99.904%
99.995%
99.998%
100.000%
Thesedata,w hose accuracy is uncertain,indicate that50% ofthe unserved are located in 24% ofall
districts (i.e.18 of75),noneofw hich are located in M id orFarW estern Regions.
D raft2 – February 2002
Page 38 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
A ppendix B
B1 D onor grantand loan inform ation
D uring 1999,the latestyearforw hich detailed U N D P data are available,there w ere22 different
developm entco-operation projects involving 12 differentdonors. O fthe $18.76 m illion spent,62% w ere
loans,w hich cam e from A D B ($6.71 m illion)and ID A ($4.96 m illion).
U N D P datarecord ten agencies thatm ade grants totalling $7.1 m illion in 1999.
TableB1-1 A gencies providing grants in W & S sector -1999
D onor
N O RA D
FIN N ID A
EU
D FID
U N ICEF
U SA ID
H ELV ETA S
CID A
W HO
U N ESCO
TO TA L
U S$ 000
1,928
1,786
923
887
771
337
336
63
55
1
7,087
In addition to thedonors listed above there are a num berofotherorganisations w orking in theW & S sector
in N epaland notreporting expenditure to U N D P. W aterA id's contributions to the sectorhavenotbeen
reported to U N D P,although the EU grantin 1999 w as supportchannelled through W aterA id. O ther
expenditures excluded in theabovedata include A ctionA id (totalof308 Com m unity Projects),CECI(total
of78 Com m unity Projects)and otherIN G O s.W heredata on program m e expenditure is know n this has
been included in the resourcegap calculation.
A llloans and one third ofthe grantsw ere allocated to 4 H M G N agencies:D W SS,theM elam chi
D evelopm entBoard,N W SC and the Fund Board. Togetherthese fouragencies received $ 14.26 m illion or
76% ofallforeign aid.
Table B1-2 G rantsand Loans to H M G N agencies (U S$ '000)
D W SS
M W SD B
N W SC
R W SSFD B
Total
G rants
607
1,928
55
2,590
Loans
5,005
1,709
2,542
2,417
11,673
Total
5,612
3,637
2,597
2,417
14,263
A s allH M G N expenditure ($ 13.99 m illion a year)is disbursed by H M G N agencies,totalannual
expenditure by H M G N agencies is estim ated atslightly over$ 28 m illion.This represents90% ofallsector
expenditures and dem onstrates thedom inantroleofH M G N agencies in the sector.
D raft2 – February 2002
Page 39 of40
W aterand Sanitation forallin N epal-sectorfinancing-February 2002
A ppendix C
A BBR EV IA TIO N S A N D A C R O N Y M S
A SD B
BCH IM ES
CECI
CH D P
CID A
DDC
D FID
D TW
D W SS
EU
FIN N ID A
FY P
GF
GW S
H ELV ETA S
HH
HM GN
HP
ICIM O D
ID A
IN G O
K TM
LW F
M LD
M W SD B
N EW A H
NGO
N O RA D
N PC
RPS
N W SC
O& M
RW SSFD B
SN V
SPW
STW
UM N
UNDP
U N ESCO
U N ICEF
U SA ID
VDC
W &S
W AN
W ECS
W HO
WS
-A sian D evelopm entBank
-Before Census H ousehold Inform ation M onitoring & Evaluation Survey
-Canadian Centre forInternationalStudies & Co-operation
-Com m unity H ealth and D evelopm entProject
-Canadian InternationalD evelopm entA gency
-D istrictD evelopm entCom m ittee
-D epartm entForInternationalD evelopm ent
-D eep tube w ell
-D epartm entofW aterSupply and Sew erage
-European U nion
-Finnish InternationalD evelopm entA gency
-Five-yearPlan
-G ravity flow
-G urkha W elfare Schem e
-Sw iss D evelopm entA gency
-H ousehold
-H is M ajesty's G overnm entofN epal
-H and pum p
-InternationalCentre forIntegrated M ountain D evelopm ent
-InternationalD evelopm entA ssistance (W orld Bank)
-InternationalN on G overnm entO rganisation
-K athm andu
-Lutheran W orld Fellow ship
-M inistry ofLocalD evelopm ent
-M elam chiW aterSupply D evelopm entBoard
-N epalW aterforH ealth
-N on G overnm entalO rganisation
-N orw egian A gencies ForD evelopm ent
-N ationalPlanning Com m ission
-N epaliRupees
-N epalW aterSupply Corporation
-O perations & M aintenance
-RuralW aterSupply Sanitation Fund D evelopm entBoard
-The N etherlands InternationalD evelopm entCo-operation A gencies
-Students Partnership W orldw ide
-Shallow tube w ell
-U nited M ission to N epal
-U nited N ation D evelopm entProgram m e
-U nited N ations Education,Science & CulturalO rganisation
-U nited N ations Children's Fund
-U nited State A gency ForInternationalD evelopm ent
-V illage D evelopm entCom m ittee
-W aterand Sanitation
-W aterA id N epal
-W aterand Energy Com m ission Secretariat
-W orld H ealth O rganisation
-W aterSanitation
D raft2 – February 2002
Page 40 of40