TDF AND DHARAN SUB-METROPOLITAN CITY SIGN ADDITIONAL LOAN AGREEMENT FOR WATER SUPPLY PROJECT UNDER IUDP

Integrated Urban Development Project (IUDP), under financing support from the Asian Development Bank (ADB), aims to improve quality of life and help achieve higher and socially inclusive economic growth through urban environmental improvement based on integrated approach in the areas of drainage, municipal roads, solid waste management and water supply in targeted 4 municipalities (Dharan, Janakpur, Siddharthanagar & Nepalgunj). The project of water supply under IUDP is being implemented in Dharan Sub Metropolitan City (SMC) to improved the water supply with total cost of NRs. 1,775.44 million.
The Executive Director of Town Development Fund (TDF), Mr. Maniram Singh Mahat, and the Acting Mayor of Dharan SMC, MS Manju Bhandari (Subedi) signed an additional loan agreement of NRs. 100.84 million on 29th January 2019 amidst a function held in the office of TDF, New Baneshwore, in the presence of representatives from SMC and senior officials of TDF for the total approved loan amount of NRs 621.40 million. The maturity of the loan will be 20 years with 5 year grace period. This loan amount is equal to 35% of the total project cost, for 5% interest rate. The SMC will receive 50% of total project cost from the Government of Nepal (GoN) as grant and 15% is already matched by the SMC as upfront cash deposit.
The project delineation of service area covers almost all wards of the SMC 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 120,044 living in 28,000 households in 2019 and about 40,000 households in 2031 fulfilling the estimated demand. The major components of the project include 40km of transmission line, and 381 Km of distribution line, to supply water from integration of ground water and surface water sources, which have 5 nos of deep tube wells and two surface water sources. It has numbers of reservoirs, treatment plants and electrical equipment like generators, transformers, panel boards etc. TDF will provide technical as well as managerial support to Dharan SMC for sustainable operation of the utility by extending technical support and capacity building of human resource of SMC in the days to come.