TDF Sanctions Loan for Kathariya Town Water Supply and Sanitation Project

The Third Small Towns Water Supply and Sanitation Sector Project (TSWSSSP), with financing support from the Asian Development Bank (ADB), is being implemented to provide quality water and sanitation services benefiting over 1.2 million people in 69 small towns with construction and upgrading of water pipes, treatment facilities and household connections, as well as septic tanks, drainage and public awareness campaigns. The third stage project is targeting infrastructure improvements in 26 towns, including Katahariya Town of Rautahat District, Nepal.

The Executive Director of Town Development Fund (TDF), Mr. Maniram Singh Mahat, and Chairperson of Katahariya Water Supply and Sanitation Users Committee (WUSC) signed a loan agreement on 30th November 2017 amidst a function held in the office of TDF, New Baneshwore, in the presence of representatives from TSWSSSP Mr. Narayan Prasad Acharya (Deputy Project Director), Secretary and Treasurers of the WUSC and senior officials of TDF for the total approved loan amount of NRs. 3, 54, 63,259.00. The maturity of the loan will be 25 year and 5 year grace period. This loan amount is equal to 25% of the total project cost, for 5% interest rate. The WUSC will receive 70% of total project cost from the Government of Nepal as grant and 5% is already matched by the users committee as upfront cash deposit.

The project delineation of service area covers entire 9 wards of Katahariya VDC 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 10,008 living in 1,639 households, fulfilling the estimated demand of 1,399 MLD in the base year 2018 and beyond up to year 2038. The major components of the project includes, system analysis, tube well and pumping stations, electrical facilities, reservoir, water treatment facility, main distribution, house connection and necessary appurtenances. The construction period is 18 months and it is expected that the 1st stage of project will be completed by mid of 2019. TDF will be supporting Kathariya WUSC in sustainable operation of the utility by extending technical support in the days to come.