ADB TA - Preparing the Kathmandu Valley Urban Environment Improvement Project -

Funding Agency: Asian Development Bank
Client: Ministry of Urban Development, Nepal
Date:  Mar 2012 – Dec 2012

The project preparatory technical assistance (TA) prepared the proposed US$ 137 Million Kathmandu Valley Urban Environment Improvement Project (later named Kathmandu Valley Wastewater Management Project) which will support the ongoing efforts of the Government of towards improving the wastewater services in Kathmandu Valley. The project will invest in rehabilitation and expansion of sewerage network, modernization and new construction of wastewater treatment plants, and improvement of wastewater management in Kathmandu Valley.

The TA identified and prioritized project components suggested by the conceptual wastewater master plan (2010 – 2015). Specifically the TA (i) determined the feasibility of the proposed investments for priority wastewater infrastructure construction and improvement covering (a) preliminary engineering designs, (b) cost estimates and financing plan, (c) financial and economic viability and sustainability, (d) environmental and social soundness, and (e) detailed implementation arrangements; and (ii) prepared an institutional capacity strengthening program. The TA also prepared the project administration manual (PAM).

Overall Services provided by firm:

TMS, as national partner to FCG International Ltd., provided following services:

1. Evaluated wastewater management systems of Kathmandu Valley; prioritized and finalized project investment package; prepared benefit monitoring and evaluation plan; carried out risk assessment; and prepared project administration manual.
2. Determined the technical feasibility of wastewater infrastructure; prepared preliminary engineering designs, cost estimates, financing plan, and procurement plan. Assessed energy generation from the proposed wastewater treatment plants.
3. Prepared procurement plan, procurement methods and packages; and conducted procurement capacity assessment.
4. Conducted Financial and Economic analysis of sub projects including preparing cost estimates, financial forecasting, FIRR and WACC computations, reviewed tariff policies and recommended tariff structures, demand analysis, cost and benefit analysis, EIRR, sensitivity analysis, risk analysis etc.
5. Conducted Environmental and social safeguards activities including resettlement plan, resettlement framework preparation, gender and community participation.

Reviewed the existing institutional framework for water and wastewater services, assessed the institutional capacity of the EA and the three institutions in the water sector (KUKL, KVWSMB, and WSTFC) to undertake the roles that they have been assigned under the Project, prepared project implementation arrangements, and prepared capacity strengthening programs.