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Urban Water Supply And Sanitation Sector Project (UWSSP)

Project Concept

The Urban Water Supply and Sanitation (Sector) Project will support the ongoing efforts of the Government of Nepal to provide better access to water supply and sanitation services to the growing urban population. Building upon the successful implementation of earlier interventions, the project will fund physical investments in water supply and sanitation infrastructure and non-physical investments to improve service regulation, governance, and user participation in selected municipalities, previously referred to as small towns.


Financing Modality:

For this project total cost is $156 million. The project is included in ADB’s Country Operations Business Plan (2018-2020) with a total loan amount of $100 million from ADB’s concessional ordinary capital resources. Counterpart funds from the government are $40 million to cover taxes and duties, land acquisition and resettlement, and counterpart staff. Contributions from beneficiaries are $5 million. Co-financing is envisaged through a potential investment grant by the Urban Climate Change Resilience Trust Fund (UCCRTF), under ADB’s Urban Financing Facility.

Status of The Project:

The financing agreement between GoN and ADB has been done dated 26 November 2018 of USD 130 million for ADB funding. Based on financing agreement, TDF signed Subsidiary Loan Agreement (SLA) to mobilize the loan USD 19 million for the 20 projects as per the  set out terms and conditions. This project will support the Government of Nepal expand access to community managed water supply and sanitation (WSS) in 20 project municipalities by drawing on experiences and lessons from three earlier projects funded by the Asian Development Bank (ADB).

TDF has been completed financing agreement with 20 projects. It has been approved loan Rs. 2,338 million and disbursed Rs 1841 million till now.