WATER MANAGEMENT Groundwork Begins

April 23, 2004
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A project is working to enable the city to cope with the challenges that it will need to face once Melamchi completes and to improve existing service levels by then

By SANJAYA DHAKAL

When the multi-million dollar Melamchi water project completes and begins supplying water to Kathmandu valley in 2009/10 (if everything goes according to plan), it will add tremendous pressure on the almost dilapidated distribution network.

While at present the valley distribution network handles 90-120 million liters a day (MLD) of water, the Melamchi project alone will supply additional 170 MLD of water. Quite clearly, the authorities need to upgrade physical facilities as well as undergo institutional reforms in order to be able to handle the challenges.

The Kathmandu Valley Water Management Support Project (KVWMSP) was, thus, set up in September 2003 to ensure that the transition is smooth. The project is currently active in preparing the government bodies to face the challenge and is, therefore, preparing the system when Melamchi is commissioned as well as improving the system before that.

“There have to be extensive improvements in the existing distribution network, which, in turn, demands a comprehensive restructuring of the institutions,” said Geoff Bridges, a team leader and water sector management and policy specialist at the KVWMSP, which is functioning under the assistance of Asian Development Bank (ADB).

The government has agreed to restructure the water supply institutions. Under the plan, the Nepal Water Supply Corporation (NWSC) will be restructured and three new entities will be established in Kathmandu Valley including a Water Authority (WA), a Water Utility Operator (WUO) and National Water Supply Regulatory Board (NWSRB).

The water authority will be established under an Act and will act as the asset owner of water supply and wastewater service facilities, and be responsible for developing and overseeing service policies. The WUO, under the license from WA, will be responsible for operating and managing the water supply and wastewater systems. The WUO will be set up under a company act. The employees from the NWSC will be deputed to work at the WUO. The structure and management of NWSC outside the Kathmandu Valley, however, will remain largely unchanged.

The NWSRB, however, will act as an independent regulatory body that will regulate tariff and monitor other policies. This will be set up under a different Act.

The KVWMSP is working to help the government in this restructuring. The two separate ordinances are being prepared for the purpose and they are expected to be approved by mid-July this year. “And all three of these public sector organizations will be ready within November this year,” said Bridges.

The KVWMSP is also working to get the performance-based management contract (MC) signed between the WA and a credible international operator organization. “This is not going to be privatization as is popularly perceived. Rather, we want to engage private sector expertise and experience to improve the water supply system here working through public sector entities and existing staff,” added Bridges.

The new management will be selected on contract based on certain conditions that are linked with their performance. Apart from requiring expertise in different sectors like water treatment, quality control, leakage control and so on, their performance will be measured in terms of hours of supply, water quality, pro-poor service and sewage treatment. The MC will receive a fixed fee plus performance-based payments to undertake its work. Initially, they will be invited for four years. The MC will start functioning from January 2005.

“At present, 40 percent of water is unaccounted for – that is 40 percent of water is being wasted. We hope with these reforms, we can bring down the level of leakage, among other things, to reasonable limit,” said Noor Kumar Tamrakar, executive secretary at the KVWMSC. “Our project has two objectives; one is to improve the service level before Melamchi is commissioned and the other is to prepare a system to face challenges that will be found after Melamchi is commissioned,” he added.

Along with the restructuring, there will also be around 15 percent increase in tariff beginning from the middle of this year. “Fortunately, over two-thirds of the present consumers need not pay more than what they are paying now even after the increase in tariff because the increment will be based on consumption and the majority of connections still consume less than 10 cu.m of water a month, which is a minimum limit,” said Rabindra Man Shrestha, deputy team leader and municipal engineer at the project.

Likewise, the project is also working to improve the metering and billing system to encourage consumers to switch to metered connections. This program will encourage consumers to reduce water wastage and conserve it. The reduction in water use will allow excess water to be supplied to water starved areas and to increase the hours of supply.