LOAN AGREEMENT FOR WATER AND SANITATION PROJECT OF ILAM BAZAR, ILAM

The Executive Director of Town Development Fund Mr. Maniram Singh Mahat, Mayor of Ilam Municipality, Mr. Mahesh Basnet and the chairperson of Ilam Bazar Water Users and Sanitation Committee (WUSC), Ilam Mr. Kedar Thapa signed a loan agreement of NRs. 144,876,750.00 for “Ilam Town Water Supply and Sanitation Project” under the Urban Water Supply and Sanitation Project (UWSSP) on 31 March 2019 (BS 2075/12/17) at office of Town Development Fund, Kathmandu. The total loan amount is the 25.00% of the contract cost of NRs. 579,507,000.00. The rest 70% will be provided by the Government of Nepal through Urban Water Supply and Sanitation Project (UWSSP) and the remaining 5.00% will be the matching fund contributed by WUSC as an upfront cash.

The project service area covers the whole area of the ward number 6&7 and partial area of the ward no. 8&9 of the Ilam Municipality with 24 hours continuous supply of potable water, as recommended by Nepal Drinking Water Quality Standard (NDWQS) guidelines. The project will directly benefit the population of 20,704.00 living in 2,798 households now, fulfilling the water demand.