1. Shashibhusan Kumar Yadav
Review of feasibility study on Kathmandu Valley Water Distribution, Sewerage, and Urban Development Project
Group 4
Anil Achyra
Krishna Raj Pantha
Manish Kumar Das
Radha Krishna Thapa
Shashibhusan Kumar Yadav
Suman Regmi

2. Goal and Objectives
Goal
To contribute towards social-economic development, improved health and well-being of all urban population of Kathmandu Valley, in particular, the poor.
Objectives
Out the various objectives main objectives are:
To provide effective and equitable water distribution from the water supplied under the Melamchi Water Supply Subproject 1 and fro the in-valley water sources
To improve collection and conveyance of the off-site sewerage system and waste water treatment
So the objectives are compatible with the goal but not well addressed poor particularly

3. National Priorities
The goal of Three Year Interim Plan emphasizes the need to maintain regional balance in urban development by considering it as a promoter of rural development and as market centers as a means to expand rural-urban linkages.
The goal of National Urban Water Supply and Sanitation Sector Policy (2009) is to ensure socio-economic development, improved health status and quality of life to urban populations, including poor and marginalized, through the provision of sustainable water supply and sanitation services and protection of the environment.
The goal of the project is compatible with the national development policy

4. Project Components
Melamchi Water Supply Project (MWSP) is implemented under two subproject.
Subproject-1 delivers bulk potable water to head of Kathmandu Valley
Subproject-2 consists water distribution system and wastewater system improvement in the valley
Water supply
Bulk Distribution System (35 KM pipeline from 600 to 1500 mm diameter)
Services reservoirs (5 no. with total 68,000 m³ capacity)
Distribution Network Improvement (427 KM of mains 80 to 600 mm diameter)
Equipment vehicle and materials (Trench excavator, maintenance vehicles, spare pipes and fittings)
Wastewater System
Sewerage Network Rehabilitation
Sewerage Network Development
Wastewater treatment plant upgrading (84 m³ per day)
Equipment vehicles and materials

5. Market and Demand Aspect
The data are collected by interviewing with 5.5 % of population of DNI pilot area (ward no. 7 and some part of ward no. 8 of KMC and only 249 households) . So reliability of the available data is questionable
Water demand is calculated only for the population by 2025.
Water demand has not been calculated considering the factors like price, household income availability and accessibility of water supply. Only 70 lcpd has been considered hypothetically considering probable supply.
People living in rental are not estimated any appropriate method(30% assumed)

6. Technical Aspect
Detailed design and estimate of the project components are not available in this report.
Location of treatment plants, area required and its disposal plan are not mentioned in the report. So difficult to review technically.
Probably the capacity of distribution system and treatment plant has been designed for the demand of population by 2025.The scope of design is limited.
Waste water treatment plant has been proposed but quality after treatment and disposal plan has not been mentioned

7. Institutional and Management Aspect
Existing institutional capacity of KUKL has been analyzed.
Capacity building for the operation of phase has been proposed.(In collaboration with CBP Team)

8. Environment Aspect
According to ADB Guideline for the Economic Analysis of Projects(1997)
Environmental benefits is not considered.
Sample size small(5.5% of the DNA pilot area-)
Comments
EI is not quantified.
Issues of unplanned urbanization have been raised but no activities are proposed
Ground water recharge issue has not been raised
Environmental impact of treatment plant not considered

9. Financial Aspect
Cost estimate of the project = $ million (ADB 72 % and GON 28 %)
Investment duration = (5 years)
FIRR are calculated 13.6%, 20.3%, 13.31% and 13.9% respectively for water supply, waste water, combined and on-lend situation
Sensitivity analysis done based on all cost increased by 10 % and benefit decreased by 10%
Comments
Tax to be paid by KUKL has been assumed 30% of gross income(assumption based), modality-???
Financial analysis does not take account over all financial liabilities of KUKL such as license fees, cost of water from Melamchi Water Supply Development Board (MWSDB)

10. Economic Aspect
EIRR are calculated 36.9%, 30.8%, 26.1% and 26.9% respectively for water supply, waste water, combined and on-lend situation
Without project situation
Tariffs are very low due to non-reliable supply
Consumers have to pay high cost to purify, pumping and storage as well as tankers
Considerable time for fetching and carrying water
Deteriorating situation in terms of social life, health hazards, income poverty and environmental consequences
Extra amount for cleaning septic tank
Average per capita water consumption of utility service water is 35 litres

11. Economic Aspect(contd..)
With project
The water supply will be sufficient and continue daily for at least 2 hours. Water supply will be increased to 70 lpccd. Expenditure on health and sanitation will be reduced.
Cost saving in terms of time saving to collect water
Better environment and living conditions and reduction in public health risks in the project area.

12. Economic Aspect(Contd..)
Comments
Economic analysis does not take account over Cost of future investment required to meet 2025 service demand.
Avoided cost ( cost of water purification has not been considered) but septic tank cleaning cost has been considered (50 % cost of 25 % household will be reduced)
 Opportunity cost of water provided to the project is considered zero i.e. "benefit foregone" use of water in agriculture is not considered.
Institutional strengthening and capacity building components related to the project has not been considered in economic analysis.
Effect on tourist and tourist related business has not been considered.

13. Social Aspect Loss of income Road closure and traffic diversion
Dust, noise and waste disposal
Issues of indigenous people and gender are raised but no analysis made
Comments
except loss of income, mitigation measures are not recommended for other issues

14. Risk Aspect Institutional and government risk Policy risk
Physical component risk
Social Risk
Environmental risk
Financial risk
Economic risk
Comment
Associated project-1 risk is not considered.

15. Conclusion Study based on assumption
Overall scope is limited in present context
Detail analysis is missing
Project it self feasible but further analysis needed.