Project Description

The Third Small Towns Water Supply and Sanitation Sector Project is designed for key outcomes namely a) the improved the water supply service infrastructure and b) strengthened sector policy, regulatory and institutional capacity and service. For this Project, the Financial agreement (Loan No : 3157 – Nep ( SF)  had  between GoN and ADB dated 24 November 2014. Based on the financing agreement, Subsidiary Loan Agreement (SLA) signed with TDF dated February 11, 2015. It has allocated US$ 18 million loan for financing through TDF out of total SDR 38.92 million. Under this projects, TDF has been appraised and signed loan agreement for the 20 projects to the WSUCs as per the set out lending terms and conditions in the SLA. In addition to under this project, additional enhancement 12 projects (of the total  STWSSSP I/STWSSSP II/STWSSSP III) have been approved . For them loan was approved NPR 1,798.4 million and disbursed NPR  1,390.32 million out of total agreed amount to 20 towns and 12 new enhancement project under STWSSSP III. Whereas 19 projects implementing on second stage (operation and maintenance by the contractor for one year) and 1 project is still under constriction stage.

Financing Modality of STWSSSP III

Under the STWSSSP-III, as per the subsidiary loan agreement held with TDF, GoN has allocated $ 18 million loan for financing through TDF. STWSSSP II agreement between ADB, GoN and TDF was signed on 24 November 2014. The total fund allocated in this project is SDR 28.9 Million out of which TDF will get US$ 18 Million as a soft loan at an interest rate of 1.5% and make investment at 5% in the selected Water Supply Projects.

Small Towns Under STWSSSP-III

• Aabukhaireni
• Babiyachaur
• Bidur
• Birendranagar Small Town, Chitwan
• Chandrauta
• Charali
• Chhap Nahala (Dumre)
• Katahariya
• Katari
• Khalanga Amargadhi
• Lalbandi
• Mahendranagar Chakraghati
• Mirchaiya
• Musikot Khalanga
• Nirmal Pokhari
• Sakhuwa Mahendranagar
• Sitalpati Khalanga
• Suda
• Tamsariya
• Tikapur

Outputs of STWSSSP III

The Third Small Towns Water Supply and Sanitation Sector Project is designed for key outcomes namely a) the improved the water supply service infrastructure and b) strengthened sector policy, regulatory and institutional capacity and service delivery.

The improvements in health and hygiene education programs has brought significant health benefits in terms of reduction in the occurrence of waterborne diseases. Additionally, women and children will not have to waste much longer time just to go and get water. They saved time could be used in productive activities.