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NEPAL: Preparing the Secondary Towns Integrated Urban Technical Assistance Consultant’s Report Project Number: 36188 November 2008 NEPAL: Preparing the Secondary Towns Integrated Urban Environmental Improvement Project (Financed by the: Japan Special Fund and the Netherlands Trust Fund for the Water Financing Partnership Facility) Prepared by: Padeco Co. Ltd. in association with Metcon Consultants, Nepal Tokyo, Japan For Department of Urban Development and Building Construction This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. TA 7182-NEP PREPARING THE SECONDARY TOWNS INTEGRATED URBAN ENVIRONMENTAL IMPROVEMENT PROJECT Volume 1: MAIN REPORT in association with KNOWLEDGE SUMMARY 1 The Government and the Asian Development Bank agreed to prepare the Secondary Towns Integrated Urban Environmental Improvement Project (STIUEIP). They agreed that STIUEIP should support the goal of improved quality of life and higher economic growth in secondary towns of Nepal. The outcome of the project preparation work is a report in 19 volumes. 2 This first volume explains the rationale for the project and the selection of three towns for the project. The rationale for STIUEIP is the rapid growth of towns outside the Kathmandu valley, the service deficiencies in these towns, the deteriorating environment in them, especially the larger urban ones, the importance of urban centers to promote development in the regions of Nepal, and the Government’s commitments to devolution and inclusive development. 3 STIUEIP will support the objectives of the National Urban Policy: to develop regional economic centres, to create clean, safe and developed urban environments, and to improve urban management capacity. All three STIUEIP municipalities (Biratnagar, Birgunj and Butwal) are regional economic centres. STIUEIP will also ensure that Biratnagar and Birgunj achieve the relevant Millennium Development Goals; the STIUEIP investment will be smaller in Butwal, and further MDG initiatives will be necessary there. 4 The World Health Organisation estimates that 24 per cent of the burden of disease in Nepal is attributable to environmental conditions. One of the strategies that the National Urban Policy enunciates is to therefore to develop healthy cities. The design of STIUEIP aims to improve environmental conditions to the extent that there are significant, measurable reductions in the burden of disease in the three municipalities. The project components include Drainage and Sanitation (Biratnagar and Birgunj), Solid Waste Management (Birgunj and Butwal), Roads and Lanes (Biratnagar and Birgunj) and a component to improve environmental infrastructure in an industrial area (Butwal). 5 The Drainage and Sanitation component is the largest. There will be waste wastewater collection and treatment systems to serve most of the population, with 60.5 km of separate sewer (Biratnagar) and 44.3 km of combined drainage (Birgunj). Local inundations during the monsoon will quickly drain away. The component includes the improved and additional communal water supply taps to ensure that everyone has access to a safe water supply. The component will achieve the objective of total sanitation through community mobilization, provision of toilets in schools, homes, and other locations. 6 The solid waste management component will enable Butwal and Birgunj to collect all the municipal waste and transport it to a municipal waste management centre. The centre will compost as much of the organic waste as possible and distribute it to farmers. Awareness programs will support the segregation of waste and its disposal in appropriate communal bins. 7 The Roads and Lanes component will improve those roads and lanes that the drainage construction activities affect, consistent with the principle of integrating construction work. The municipalities will ensure that lane improvements focus on poor neighbourhoods. TA 7182-NEP PREPARING THE SECONDARY TOWNS INTEGRATED URBAN ENVIRONMENTAL IMPROVEMENT PROJECT FINAL REPORT Volume 1: PROJECT RATIONALE June 2010 Prepared for the Asian Development Bank and the Government of Nepal in association with Tsunashima No. 2 Building METCON Consultants 3-20-12 Yushima P.O. Box 4412 Bunkyo-ku 43 / 15 Dandibaba Marg, Tangal, Tokyo 113-0034 Kathmadu-2, Japan Nepal Tel: +81-3-5812-1091 Tel: +977-1-441-2902 Fax: +81-3-5812-1092 Fax: +977-1- 441-8478 Email: [email protected] Email: [email protected] Acronyms ADB Asian Development Bank BOT Build Operate Transfer CBO Community Based Organizations CBS Central Bureau of Statistics DUDBC Department of Urban Development and Building Construction DWSS Department of Water Supply and Sewerage EIA Environmental Impact Assessment FMAQ Financial Management Assessment Questionnaire GDP Gross Domestic Product GESI Gender and social inclusion GIS Geographic Information System GoN Government of Nepal IAP Integrated Action Programme IDPs Internally Displaced Persons IEE Initial Environmental Examination IPT Integrated Property Tax JV Joint Venture KMC Kathmandu Municipal Council KUKL Kathmandu Valley Upatyaka Khanepani Limited LGCDP Local Governance and Community Development Programme LSGA Local Self Governance Act MLD Ministry of Local Development MPPW Ministry of Physical Planning and Works MuAN Municipal Association of Nepal NGO Non-Governmental Organization NLSS Nepal Living Standards Survey NUWSSSP National Urban Water Supply and Sanitation Sector Policy (2009) NWSC Nepal Water Supply Corporation O&M Operation and Maintenance PPP Public-Private Partnership PPPN Public Private Partnership for Urban Development, Nepal PPTA Project Preparatory Technical Assistance (ADB) SEZ Special Economic Zones SWM Solid Waste Management SWOT Strengths Weaknesses Opportunities and Threats TDF Town Development Fund TOR Terms of Reference TYIP Three Years Interim Plan (National Planning Commission) UEIP Urban Environmental Improvement Project TA 7182-NEP - i - Final Report, Vol. 1 UNDP United Nations Development Programme US United States VDC Village Development Committee WSUC Water and Sanitation Users’ Committee TA 7182-NEP - ii - Final Report, Vol. 1 Contents 1 Introduction ................................................................................................................. 1 1.1 Executing agency .............................................................................................................. 1 1.2 Progress of the work ......................................................................................................... 1 1.3 Structure of the Draft Final Report ................................................................................... 2 1.4 Structure of this volume .................................................................................................... 3 2 Economic and social background ................................................................................ 4 2.1 Lagging economic growth ................................................................................................ 4 2.2 Rapid growth of urban centers .......................................................................................... 4 2.3 Need for services .............................................................................................................. 5 2.4 Environmental conditions ................................................................................................. 6 2.5 Need for regional economic centers ................................................................................. 7 2.6 Lack of social inclusion .................................................................................................... 8 3 Government policy and initiatives .............................................................................. 9 3.1 Development of the policy and legal framework.............................................................. 9 3.2 External assistance to the urban sector ........................................................................... 14 3.3 Lessons from other projects ............................................................................................ 17 3.4 Requirements for selection of project components......................................................... 18 4 The proposed project ................................................................................................. 19 4.1 Objectives ....................................................................................................................... 19 4.2 Project municipalities ..................................................................................................... 19 4.3 Investment priorities ....................................................................................................... 21 4.4 Regional cooperation (trans-boundary) issues ................................................................ 23 4.5 Components and outputs ................................................................................................. 24 4.6 Cost Estimates ................................................................................................................ 29 4.7 Financing plan and cost recovery ................................................................................... 31 4.8 Related projects .............................................................................................................
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