ADB Provides Rs 6 Billion in Loan‚ Grant for Water Supply‚ Sanitation

Nov 26th, 2014 | By | Category: Financing, Nepal

The Asian Development Bank (ADB) has agreed to provide a loan assistance of SDR 38.921 million (equivalent to

Rs 5.78 billion) and grant assistance of $1.3 million (equivalent to Rs 127.40 million) to the government for implementation of the Third Small Town Water Supply and Sanitation Project in Nepal.

An agreement to this effect was signed today at the Ministry of Finance (MoF) by Finance Secretary Suman Prasad Sharma and Kenichi Yokoyama, ADB country director for Nepal, according to a statement issued today by MoF.

The loan and grant would be used to develop water supply and sanitation infrastructure in selected small towns, strengthen regulatory and institutional capacity, enhance service delivery and extend support for project implementation.

Once the project is complete, water supply system would be built or upgraded in 26 small towns, namely Ilam, Charaali, Mahendranagar, Bhojpur, Diktel, Sakhuwa, Mahendranagar, Katari, Mirchaiya, Bidur, Dumre, Lalbandi, Charikot, Birendranagar, Chainpur, Kathariya, Aabukhaireni, Tamsariya, Babiyachaur, Nirmalpokhari, Tikapur, Chandrauta, Salyan, Musikot, Suda and Liwang.

During the project implementation phase, approximately 20,300 private toilets with septic tanks would be built, says the MoF statement.

The project, expected to be completed by January 31, 2021, will be implemented by the Ministry of Urban Development and the Town Development Fund.



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