National Urban Development Strategy (NUDS), 2017 Part B Detailed Document

Government of , Ministry of Urban Development Urban Development and Physical Planning Division Ministry of Urban Development (MoUD), 2017

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Cover page credits: Design: Pragya Pradhan, Barsha Chitrakar Map: Arun Poudyal Images (from top right): MWSDB, 2014; Keshav R. Bista, 2014; ekantipur, 2011; Mahendra Subba, 2013; Lumanti, 2013; Gham Power, 2014.

Foreword

Nepal is urbanizing at a faster pace and this transformation is irreversible. However, in the absence of coordinated planning and investment in urban sector, there is need to upscale the level of innovation, impact and outcomes. The reflection is pronounced in sprawled urban form, haphazard land use with environment degradation, congestion, deficit in water supply and other basic services.

With six decades of planning experience, it is a high time to exercise coordinated, integrated, focused and strategic investments that promote harmonized development to fulfill our urban intentions. The preparation of National Urban Development Strategy - NUDS is significant in this direction.

The implementation of NUDS is a stepping stone and I believe that it will guide all the stakeholders related to urban development for a coordinated inter-sectoral approach, with an aim of achieving a modern country that is equitable, prosperous and just.

Rt. Honorable ‘Prachanda’ Prime Minister

Foreword

As the world is entering the era of rapid urbanization, where more than half of the world population is living in the cities, Nepal cannot escape from this phenomenon. With nearly 50% of its population now living in the urban areas and formation of new , Nepal has reached at a critical point to provide access to basic infrastructure services and guide its urban development through a holistic approach. Accepting the fact that the future of the nation relies in its urban development, the Ministry of Urban Development (MoUD) has rightly formulated National Urban Development Strategy (NUDS) to lead the process of urbanization by integrating actions of important urban sectors through strategies that will help in shaping the future of the urban areas.

With the vision for next 15 years, NUDS has envisaged integrated urban development efforts. I believe that NUDS will be fundamental in paving the way for MoUD and its related agencies to thrust development of the urban areas. Similarly, it will be vital in guiding inter-sectoral and inter-ministerial collaborations for coordinated approach to transform words into action.

Lastly, I would like to thank the team at MoUD, national agencies and consultants, institutions, and individuals, who were involved directly and/or indirectly for the preparation of NUDS, with a belief that this collaboration will continue during implementation of this document.

Honorable Arjun Narsingha KC Minister, Ministry of Urban Development

Foreword

Nepal is facing rapid urbanization growth with nearly half of its population already residing in the urban areas. The growth has led to increased demand for efficient infrastructures, well-structured urban system and strong economy. In light of these issues, National Urban Development Strategy (NUDS) has been prepared to portray the current urban conditions, to propose intended future milestones and outline strategies and activities incorporating concerned agencies and stakeholders.

NUDS provides clear pictures of existing urban situation and proposes intended urban system in the next fifteen years considering the ramifications brought upon by changes in urban landscape, institutional setup and federal system. I hope that NUDS will fulfill the existing necessity of a systematic approach for urban development and create an urban framework for the next 15 years.

Honorable Mithu Malla State Minister, Ministry of Urban Development

Foreword

Since the past three decades, Nepal is encountering rapid pace of urbanization. The current level of urbanization is around 40 percent, which is projected to grow with declaration of new municipalities and migration as two major factors. In contrary to the increase in urban population and contribution of the urban sector to national GDP, data show inadequate effort and investment in urban development sector. Realizing the need for a strategic approach towards urban development, Ministry of Urban Development has prepared National Urban Development Strategy (NUDS) that addresses critical issues related to urban development sectors such as system, infrastructure, environment and economy. NUDS also deals with mechanisms vital in realizing the desirable condition of the four development sectors, namely investment, finance, governance and land management.

With a vision of balanced and prosperous national urban system, it provides desirable conditions and strategies for its realization in next 15 years. I am sure that NUDS will be a fundamental document that guides urban development endeavors and will create desirable national and sub-national urban systems.

NUDS has been prepared through rigorous process of workshops, meetings and consultations with various stakeholders, experts and consultants. The inception of NUDS began in 2013. However, considering the changes in urban landscape and introduction of federal system in the country, NUDS has been revised to incorporate necessary changes in strategies. Hence, I would like to express my gratitude to the team at MoUD, consultants, institutions, and individuals, who have contributed directly or indirectly in the preparation process and revision of NUDS, and I hope the cooperation will sustain during its implementation in the future.

Deependra Nath Sharma Secretary, Ministry of Urban Development

Acknowledgement

It is with utmost pleasure and delight that I, on the behalf of MoUD, take this opportunity to present National Urban Development Strategy (NUDS), 2017. I feel great joy that the hard work and perseverance of the ministry, the working groups and steering committee members and all the individuals involved have finally led to the fruitful completion of this document.

National Urban Development Strategy (NUDS) has been prepared in line with National Urban Policy (NUP), 2007, the Sustainable Development Goals (SDGs) and the New Urban Agenda, to address the critical issues and challenges of urbanization and unleash the potential it holds in driving forward the national development. While NUP has provided guidance for urban development, NUDS has been shaped realizing the need of strategic direction that will guide the urban development process in the country. As such, it provides strategies for urban development for the next fifteen years by covering various sectors of urban areas such as infrastructure, environment, system, finance, economy, investment, land and governance.

The inception of National Urban Development Strategy (NUDS) began in 2013 with a clear vision to create balanced and prosperous national urban system. It has been prepared by a systematic process through various thematic workshops, meetings and consultations with different experts and stakeholders. Although the draft report was prepared in 2015, the urban scene of the country went through major changes during the finalization phase of NUDS. Keeping the changed urban landscape and institutional setup in view, NUDS has thus been revised to accord necessary changes and ramifications in the urban development sector.

The revision process has assessed updated data, information and strategies, and has also duly incorporated feedbacks and comments received from different ministries and National Planning Commission (NPC). I, on the behalf of MoUD, would like to express my utmost gratitude to Mr. Tanka Mani Sharma, Secretary, OPMCM; Mr. Deependra Nath Sharma, Secretary, MoUD; Mr. Kedar Bahadur Adhikari, Secretary, MoFALD; Mr. Chandra Kumar Ghimire, Member Secretary, NPC; Mr. Baikuntha Aryal, Joint Secretaty, MoF; Dr. Ramesh Prasad Singh, Joint Secretaty, MoUD; Mr. Shiva Hari Sharma, Director General, DUDBC; Mr. Padam Kumar Mainalee, DDG, DUDBC and Mr. Mani Ram Singh Mahat, Executive Director, TDF. My deepest appreciation goes to Dr. Mahendra Subba, former Joint Secretary, MoUD, who has led the revision process.

I would also like to thank the team at MoUD, working group and steering committee members, institutions, development partners and individuals who have contributed in the formation of the draft document. My sincere thanks goes to Dr. Pitamber Sharma who as the Team Leader of the consulting team was instrumental in providing valuable guidance in NUDS preparation. My humble gratitude goes to Mr. Arjun Kumar Karki, Secretary and Mr. Kishore Thapa, former Secretary, for their guidance in the formulation of NUDS during their tenure at MoUD. My gratitude also goes to Dr. Mahendra Subba for his continuous support and guidance starting from the inception of this document to its revision and finalization. My due appreciation goes to the team at UDPPD for keeping up with the revision and approval process. I would like to thank Ms. Ramita Shrestha, SDE, UDPPD, who has contributed in the cabinet approval process and revision of NUDS. I would also like to thank Ms. Barsha Chitrakar who has been involved in the revision and finalization of the document.

Lastly, I would like to thank all the personnel, agencies and individuals involved whose concerted efforts have shaped this document. And I hope that NUDS will bring out the catalytic effects and positive outcomes as intended in the urban development sector of the country.

Er. Shambhu KC Joint Secretary Urban Development and Physical Planning Division, Ministry of Urban Development Coordinator, NUDS Secretariat

ABBREVIATIONS

ADB Asian Development Bank AIIB Asian Infrastructure Investment Bank CBO Community Based Organisation CBS Central Bureau of Statistics CCTV Closed-Circuit TeleVision CEOs Chief Executive Officers CRV Control Room Vehicle DDC District Development Committee DoLIDAR Department of Local Infrastructure Development and Agricultural Roads DoR Department of Roads DoTM Department of Transport Management DRMP Disaster Risk Management Plan DUDBC Department of Urban Development and Building Construction DWSS Department of Water Supply and Sewerage EIA Environmental Impact Assessment ENPHO Environment and Public Health Organization EWS Economically Weak Strata FAO Food and Agriculture Organization FAR Floor Area Ratio FNCCI Federation of Nepalese Chambers of Commerce and Industries GDP Gross Domestic Product GESI Gender Equity and Social Inclusion HH Household IAP Integrated Action Plans IEE Initial Environmental Examination IGFT Inter Governmental Fiscal Transfer IPT Integrated Property Taxation IUDP Integrated Urban Development Project Km Kilometer KSUTP Sustainable Urban Transport Project KUKL Kathmandu Upatyaka Khanepani Limited KVDA Development Authority KVWSMB Kavre Valley Water Supply Management Board KWh Kilo Watt Hour LBFC Local Body Fiscal Commission LDTA Local Development Training Academy LED Local Economic Development LGCDP Local Governance and Community Development Programme LIS Land Information System lpcd Litres per capita per day LQ Locational Quotient LRN Local Road Network LRT Light Rail Transit LSGA Local Self Governance Act MCPM Minimum Conditions and Performance Measures MLD Million Liters per Day MoA Ministry of Agriculture MoCPA Ministry of Cooperatives and Poverty Alleviation MoCTCA Ministry of Culture, Tourism and Civil Aviation MoE Ministry of Energy MoF Ministry of Finance MoFALD Ministry of Federal Affairs and Local Development MoFSC Ministry of Forest and Soil Conservation MoHP Ministry of Health and Population MoI Ministry of Industry MoLRM Ministry of Land Reforms and Management MoPIT Ministry of Physical Infrastructure and Transport MoST Ministry of Science and Technology MoUD Ministry of Urban Development MoWSS Ministry of Water Supply and Sanitation MoYS Ministry of Youth and Sports MRT Mass Rapid Transit NBC National Building Code NDWQS National Drinking Water Quality Standards NEA Nepal Electricity Authority NLFS Nepal Labour Force Survey NLSS Nepal Living Standard Survey NMT Non Motorised Transport NPC National Planning Commission NPHC National Population and Housing Census NPR Nepalese Rupees NRB NUDS National Urban Development Strategy NUP National Urban Policy NWSC Nepal Water Supply Corporation ODB Other District Born OPMCM Office of the Prime Minister and Council of Ministers OSR Own Source Revenues PCC Per Capita Consumption PID Project Implementation Directorate Pph Person per hectare PPP Public Private Partnership SEZ Special Economic Zones SRN Strategic Road Network STIUEIP Secondary Towns Integrated Urban Environmental Improvement Project STWSSSP Small Towns Water Supply and Sanitation Sector Project SWM Solid Waste Management SWMTSC Solid Waste Management Technical Support Center TDC Town Development Committee TDF Town Development Fund TLO Tole Lane Organization UDPPD Urban Development and Physical Planning Division UEIP Urban and Environmental Improvement Project UEMG Urban Environment Management Guideline UGDP Urban Governance and Development Program UICI Urban Infrastructure Condition Index UNDP United Nations Development Programme USD United States Dollar VDC Village Development Committee WB World Bank WCF Ward Citizen Forum WHO World Health Organization CONTENTS

Executive Summary Chapter 1: Introduction 1.1 Urbanization Trends and Implications...... 3 1.1.1 Urbanization Trends...... 3 1.2 Planing and Policy Context...... 8 1.2.1 National Transport Policy 2001...... 8 1.2.2 National Agricultural Policy 2004...... 9 1.2.3 National Urban Policy 2007 (NUP)...... 9 1.2.4 Industrial Policy 2011...... 9 1.2.5 Tourism Policy 2008...... 10 1.2.6 National Land Use Policy 2012...... 10 1.3 NUDS: Rational & objectives ...... 10 1.3.1 Rationale...... 10 1.3.2 Objectives...... 11 1.4 Methodology...... 11 1.5 Organization of Report...... 11 Tables 1.1 Nepal: Urbanization Trends 1981-2011...... 3 1.2 Distribution of urban population by size class of urban centres and growth rates 1991-2011...... 6 1.3 Urban primacy 1981-2011...... 6 1.4 High growth urban areas 2001-2011...... 6 1.5 Urban densities of 191 Muncipalities ...... 7 1.6 Migration to urban areas, and Kathmandu Valley 2011...... 8 Maps 1.1 Population Distribution of Urban Settlements...... 4 1.2 Distribution of Municipalitites and TDCs...... 5 1.3 Population Growth Rate of Urban Settlements...... 7

Chapter 2: Existing Urban Development Conditions 2.1 Urban Land...... 15 2.2 Urban Densities...... 16 2.3 Urban Form...... 19 2.4 Urban Infrastructure...... 19 2.4.1 Water Supply...... 19 2.4.2 Sanitation...... 21 2.4.3 Solid Waste Management...... 22 2.4.4 Housing...... 26 2.4.5 Urban Transport...... 28 2.4.6 Urban Energy...... 30 2.5 Urban Environment...... 31 2.5.1 Physical Environment...... 31 2.5.1.1 Safety and Resillience...... 31 2.5.1.2 Urban Pollution...... 33 2.5.2 Natural Environment...... 33 2.5.2.1 Urban Agriculture...... 34 2.5.2.2 Urban Forest...... 34 2.5.3 Social Environment...... 35 2.5.3.1 Urban Amenities: Open Spaces...... 35 2.5.3.2 Urban Art, Architecture and Culture...... 36 2.5.3.3 Community Organization and Youth...... 36 2.5.3.4 Urban Security...... 37 2.6 Urban Economy...... 37 2.6.1 Economically Active Population, Employment and Occupational Structure...... 37 2.6.2 Household Savings and Borrowings...... 38 2.6.3 Consumption and Poverty...... 38 2.6.4 Remittance...... 38 2.6.5 Competitive Advantages of the Urban Regions in Terms of Manufacturing Establishments...... 39 2.6.6 Non Farm Activities and Manufacturing Employment in Urban Areas...... 39 2.6.7 Major Considerations...... 41 2.7 Urban Investment and Finance...... 41 2.7.1 Existing Scenario...... 41 2.7.2 National Resource Allocation for Urban Development Sector...... 43 2.7.3 Prospects for Resource for Developing Urban Roads...... 43 2.7.4 Investment and Financing Mechanism ...... 46 2.7.5 Key Issues in Urban Financing ...... 47 2.7.6 Key Strategic Concerns in Urban Financing and Implication on Urban Development...... 48 2.7.7 Some Innovative Financing Strategy & Tools to be considered...... 48 2.8 Urban Governance...... 49 2.8.1 Fragmented Institutional Arrangement...... 49 2.8.2 Problem of Coordination...... 50 2.8.3 Technical Capability...... 50 2.8.4 Problem of Planning and Managing Urban Agglomerations and Corridors...... 51 2.8.5 Ministry of Urban Development: An Overview...... 51 2.8.6 Major Issues...... 52 2.9 Urban Infrastructure Condition Index...... 53 2.10 National and Sub-National Urban System...... 54 Tables 2.1 Average Ward-wise Density of Cities of Different Size-class...... 19 2.2 Water Supply in Kathmandu Valley...... 20 2.3 Water Supply Situation in Selected Municipalites by Population Size ...... 21 2.4 Sanitation Situation in Selected Municipalities by Population Size...... 21 2.5 Solid Waste Collection in Selected Municipalities by Population Size...... 23 2.6 Distribution of Households by Occupancy Status...... 26 2.7 Ownership of Housing Units, 2013/14 ...... 26 2.8 Average Number of Rooms and Average Size of Dwelling...... 27 2.9 Required Housing Unit by 2023 ...... 27 2.10 Shelter Situation in Selected Municipalities by Population Size...... 27 2.11 Road Length and Road Density in Urban Area by Development Regions...... 28 2.12 Road and Transportation Characteristics in Selected Municipalities by Population Size...... 29 2.13 % Designated Open Space Coverage in Muncipalities ...... 35 2.14 % of Open Space Allocated in Land Pooling Projects...... 36 2.15 Locational Quotient Value of the Industries with Relative Advantage in Region/Urban Areas...... 39 2.16 Investment for Infrastructure Deficit for 58 municipalities...... 42 2.17a National Resource Allocation for Urban Development Sector...... 44 2.17b Sectoral Budget Indicators ...... 45 2.17c Prospects of Resource for Developing Urban Roads...... 45 2.18 Debt Analysis of 58 Municipalities...... 47 2.19 Urban Infrastructure Condition Index...... 52 2.20 UICI for Kathmandu Metropolitan City ...... 53 2.21 Planning Norms and Standards, 2013 has categorized urban area into five classes based on the population...... 55 . 2.22 Urban Centre Hierarchy...... 57 2.23 Major Economic Centres: Locational Advantages, Economic Base and Regional Potential...... 60 Figures. 2.1 % Distribution of Agriculture Households with Land by Land Size in Urban Areas...... 16 2.2 % Access to Basic Services in Urban Households...... 19 2.3 Sources of Drinking Water in Urban Areas ...... 20 2.4 Drainage Problem in and ...... 22 2.5 Openly Dumped Solid waste in . Source: DUDBC...... 22 2.6 Traffic Jam in Kathmandu...... 28 2.7 Energy Consumption in Urban Areas ...... 30 2.8 Electricity Supply and Demand in Nepal ...... 31 2.9 Vulnerability and Resilience...... 31 2.10 Currently Employed Population aged 15+ by Industries in Urban Areas...... 38 2.11 Per Capita Consumption of the Defined Urban Regions...... 38 2.12 % Share of Total Remittance Received by Urban Areas...... 38 2.13 Sectoral Composition of FDI (% share)...... 41 Maps 2.1 Population Density Distribution (Urban Valleys)...... 17 2.2 Population Density Distribution (Urban Corridors)...... 18 2.3 Location of Urban Development Projects...... 24 2.4 Location of Large Infrastructure Projects...... 25 2.5 Transportation Linkage...... 29 2.6 Districtwise Distribution of Industries With Direct Foreign Investment...... 42 2.7 Settlement System Relationship...... 56 Boxes 2.1 Urban Solid Waste Generation...... 22 2.2 Urban Development Projects...... 24 2.3 Large Scale Infrastructures...... 25 2.4 Land Pooling Projects...... 27 2.5 Open Spaces- Definition...... 35 2.6 Foreign Direct Investment...... 41 2.7 Auto Village-...... 46

Chapter 3: Intended Urban System and Milestones, Prospect 2030 3.1 Guiding Principles...... 65 3.1.1 Sustainability...... 65 3.1.2 Inclusivity...... 65 3.1.3 Resilience...... 65 3.1.4 Green...... 65 3.1.5 Efficient...... 65 3.2 Intended National and Sub-National Urban Systems...... 65 3.2.1 Defining Urban Areas...... 66 3.2.2 Federalization and Sub-National (Provincial and Regional) Urban System...... 66 3.2.3 Database and Research...... 69 3.2.4 Intended Urban System...... 69 3.2.5 Division of Relevant Urban Development Authorities in State Structure...... 69 3.3 Milestones for Urban Development Sector...... 71 3.3.1 Indicators for a Balanced and Prosperous Urban System...... 71 3.4 Milestones for the Sub-sectors...... Sub-sectors...... 75 3.4.1 Urban Infrastructure...... 75 3.4.2 Urban Environment...... 75 3.4.3 Urban Economy...... 75 3.5 Investment Requirements for Urban Infrastructure...... 77 3.5.1 Population Growth and Future Projection...... 77 3.5.2 Population Density...... 80 3.5.3 Existing State of Urban Infrastructure...... 80 3.5.4 Desired Level of Urban Infrastructure...... 81 3.5.5 Funding Requirement (Existing State)...... 81 3.5.6 Funding Requirement (Including Future Requirement)...... 82 3.5.7 Priority Investment...... 82 3.5.8 Sources of Funding...... 83 3.5.9 Investment for Unleashing Potential...... 84 3.5.10 Justification of Investment on Urban Infrastructure...... 84 Tables 3.1 Intended Urban Population Projection (2011-2031)1...... 67 3.2 Municipalities in Different Population Growth bands During 2001-11...... 79 3.3 Population Projection for Different Growth Bands...... 79 3.4 Urban Population Including New Municipalities...... 79 3.5 Municipalities having Different Population Density in 2011...... 80 3.6 Existing State of Urban Infrastructure...... 80 3.7 Requirement to Meet Existing Deficit of 2011...... 81 3.8 Funding Gap to Meet Future Demand till 2031...... 81 3.9 Total Investment Required to Meet Deficit and Demand of Municipalities by 2031...... 82 3.10 City Type and Priority Level...... 82 3.11 Priority Fund Requirement for Municipalities from Year 2016 to 2031...... 82 3.12 Sources of Fund for the First Five Year of Planning...... 83 3.13 Sources of Fund Under Government Source for the First Five Year of Planning...... 83 Maps

3.1 Settlement System Relationship - BUS Flow...... 72 3.2 Settlement System Relationship- Air Flow...... 72 3.3 Settlement Syatem Relationship- Trade Flow...... 73 3.4 Intended Urban System...... 74 3.5 Schematic Map...... 78 Boxes 3.1 Census Town...... 66 3.2 Cases of National and State or Provincial Capital ...... 70 3.3 The Concept of a “Smart City” ...... 76 3.4 Justification for allocation of financial resources...... 83 Chapter 4: Urban Development Strategies and Activities 4.1 Urban System...... 89 4.2 Urban Infrastructures...... 92 4.2.1 Water Supply and Sanitation...... 94 4.2.2 Solid Waste Management...... 95 4.2.3 Transportation...... 96 4.2.4 Housing...... 97 4.2.5 Energy...... 98 4.3 Urban Environment...... 99 4.3.1 Urban Safety and Resilience...... 99 4.3.2 Urban Land, Air, Visual and Water Pollution...... 100 4.3.3 Urban Agriculture...... 100 4.3.4 Urban Forest...... 101 4.3.5 Urban Facilities and Amenities: Open Space...... 101 4.3.6 Urban Art, Architecture and Culture...... 102 4.3.7 Community Organization and Youth...... 102 4.3.8 Urban Security...... 103 4.3.9 Urban Health ...... 103 4.4 Urban Economy...... 104 4.5 Urban Investment ...... 106 4.6 Urban Finance...... 107 4.7 Urban Governance...... 109 4.8 Urban Land Management...... 111 4.9 Master Urban Development Strategy Famework...... 113

Bibliography NUDS Approval Process List of Contributors

कायकारीर् सारांश

रािष्टर्य शहरी िवकास रणनीित :

उद्देँयहरू र तजमाुर् ूिबया गरेको छ । यस समीक्षाले शहरी िवकास क्षेऽको लािग रािष्टर्य १. रािष्टर्य शहरी िवकास रणनीितको उद्देँय िवद्यमान बजेट बाँडफाँडको ूवित्तृ पिन अध्ययन गरेको छ । नेपाल शहरीकरण र क्षेऽीय ॐोतका सभाव्यताकां आधारमा अपेिक्षत सरकारको अनुमोदनका लािग ूःतुत गन ुर् अिघ िनदेर्शक रािष्टर्य/क्षेऽीय/ूान्तीय शहरी ूणालीको मध्य र दीघकालीनर् सिमितले यो रणनीितको थप समीक्षा गरेको छ । रणनीितक सोचको िवकास गन ुर् हो । यसले भौितक पूवाधारर् , ३. रािष्टर्य शहरी नीितको कायान्वयनर् र शहरी िवकास वातावरण, अथतन्ऽर् र शासनको वतमानर् अवःथाको आकलनँ मन्ऽालयलाई मागदशर् नर् गन र् साथ ै शहरी िवकास क्षेऽका गरेको छ । साथै यो रणनीितले अपेिक्षत मानक (वेञ्चमाकर् ) र िवद्यमान समःया र चुनौतीहरुको िदगो रुपमा सम्बोधन गनकार् ःतरहरु ःथािपत गिर शहरी क्षेऽका तुलनात्मक लाभको फाइदा लािग यस शहरी िवकास रणनीित तजमाकोुर् आवँयकता िलन आवँयक पूवाधारर् र वातावरणमा लगानीका लािग महसुस गिरएको हो । िवद्यमान समःया एवं चुनौतीहरुमा ूाथिमकताका पहलहरुको पिहचान गरेको छ । काठमाण्डौ उपत्यका के िन्ित असन्तुिलत शहरी ूणाली, क्षेऽीय त्यसैगरी यसले रािष्टर्य शहरी नीित (२०६४) र रािष्टर्य शहरी शहरहरु ओझेलमा रहनु, अःतब्यःत शहरीकरण, पूवाधारकोर् िवकास रणनीितको कायान्वयनर् र अनुगमन सहज गनकार् कमी, खःकदो ूाकृ ितक तथा भौितक वातावरण, शहरी क्षेऽले लािग आवँयक संःथागत ढाचाकों पुनरावलोकन समेत गरेको पयाप्तर् रोजगारी सजनाृ गन र् र राष्टर्को समम आिथकर् िवकासमा छ । रािष्टर्य शहरी िवकास रणनीितको कायान्वयनलर् े अित कम आवँयक योगदान पुर् याउन नसक्नु, िवखिण्डत शहरी सुशासन िवकिसत देशबाट िवकासोन्मुख देशको िःथितमा पुग्ने तथा ःथानीय िनकायहरूको कमजोर राजःव अवःथा ूमुख नेपालको ूितबद्धतालाई टेवा पुर् याउनुका साथै िदगो िवकास हुन ् । नीितगत तहमा शहरी िवकासको पिरभाषा वा लआय अन्तगतर् नेपाललाई सन ् २०३० सम्ममा मध्यम-आय अवधारणाको बुझाइमा देिखएको िभन्नता सगं ै शहरी िवकास राष्टर् बनाउने उद्देँय र चौधौँ तीन वषीर्य योजनाको सोच मन्ऽालयको कायिसमार् एवं कायक्षर् ेऽमा पिन अन्यौलता रहेको अनुरुप आिथकर् विद्धृ ूाप्त गन ेर् लआयलाई समेत टेवा पुर् याउने देिखन्छ । यस समःयालाई िचन र् यस रणनीितले शहरी अपेक्षा गिरएको छ । िवकासलाई “ःथलीय ूणाली (ःपािसयल) र भौितक पूवाधारर् २. रािष्टर्य शहरी िवकास रणनीितको शरुवातु २०१३-१४मा संरचनाको िवकाससम्बध्द िबयाकलाप”को रुपमा हेरेको छ, सन्तुिलत र समद्धृ रािष्टर्य शहरी ूणाली िसजनार् गन ेर् ःपष्ट जनु िदगो सामािजक, आिथकर् , सांःकृ ितक िवकासका साथै धारणामा भएको िथयो । यो रणनीितको तजमाुर् पयावरणर् ब्यवःथापनका लागी ूमुख आधार हुन ् । यो अन्तरिबयात्मक र सहभािगतामूलक ूिबयाको उपज हो । रणनीितले भौितक, सामािजक, आिथकर् तथा पयावरणीयर् यो ूिबयामा शहरी िवकास मन्ऽालय र सम्बिन्धत िबयाकलापहरुलाई छु ट्टा छु ट्टै एकल ःवरुपमा नहेरी घिनष्ठ क्षेऽ/िनकायका अिधकारीहरुको ज्ञान, अनुभव र सुझावका साथ ै अन्तरसम्बन्ध भएको शहरी ूणालीको रुपमा हेरेको छ जसमा िवषयगत िवज्ञहरु र ूािज्ञक एवं नीित िनमाणर् तथा एकले अकोर्को िवकासमा महत्वपूण र् योगदान एवं ूभाव कायान्वयनसर् ँग सम्बिन्धत सरोकारवालाहरूसँग गिरएको गहन पादर्छ । अतः यस रणनीितले शहरी िवकासको िनिम्त परामश र् र छलफल समािहत छ । यो रणनीितले रािष्टर्य एकीकृ त सोच एवं पद्धितको अवलम्वनमा जोड िदएको छ । योजना आयोग, अथ र् मन्ऽालय, संघीय मािमला तथा ःथानीय िवकास मन्ऽालय र भौितक पूवाधारर् तथा यातायात शहरी िसहावलोकनं मन्ऽालयबाट औपचािरक समथनर् र ूितिबया ूाप्त गिरसके को ४. नेपाल एिशयाकै कम शहरीकरण भएको देशहरूमध्ये एक छ । अिहलेको पिरविततर् सन्दभलाईर् ध्यानमा राखी सबै २१७ भए तापिन िबगत दशकहरुमा देशको ःथलीय (ःपािसयल), नगरपािलकाहरुको पूवाधारर् आवँयकता आकलनँ गन र् यो जनसांिख्यक र आिथकर् क्षेऽमा भइरहेको पिरवतनलर् े रणनीितको समीक्षा गिरएको छ । यो समीक्षाले शहरी िवकास शहरीकरणको गित तीॄ रहेको र रिहरहने अपेक्षा गिरएको छ। मन्ऽालयको हालको संगठनात्मक िवभाजन, शहरी िवकाससँग सन ् २०११ मा देशको ५८ नगरपािलकामा समम जनसंख्याको सम्बिन्धत संिवधानका ूावधानहरुको आँकलन गनुकार् साथ ै १९%ले वसोवास गरेको िथयो । िवगत दशकमा शहरी भिवंयमा ूान्तीय राजधानीहरुको योजना र िवकास जनसंख्या विध्ददरृ ३.४३% रहेको िथयो । यसमा नयाँ शहरी सान्दिभकर् के ही अन्तरािष्टर्यर् अन्तदृर्िष्ट पिन ल्याउने ूयास

क्षेऽहरू र िवद्यमान नगरपािलकाको सीमा बािहरको िवःतािरत िवःततृ लेखाजोखा अत्यावँयक भएको देिखन्छ । रािष्टर्य कु ल क्षेऽ समावेश छैन । माहःथ उत्पादनमा काठमाडौं उपत्यकाको योगदान २३.४% ५. रािष्टर्य शहरी जनसंख्याको २२.४% रहेको काठमाडौं रहेको राष्टर् बैंकको अनुमान छ । उपत्यका नेपालको शहरीकरणको मुख्य के न्ि हो । ९. अनवरत रुपले भइरहेको शहरीकरण र शहरी िवकाससंगै शहरीकरणको ूादेिशक ःतरमा ठू लो िभन्नता छ । ूशःत नेपालका शहरी क्षेऽहरुमा यसको नकारात्मक ूभाव पिन विद्धृ आिथकर् सम्भावना रहेको तराईका तुलनामा उपत्यकाहरु र भइरहेको छ । शहरी तथ्याङ्कको संकलन र उपलव्धता सीिमत िभऽी मधेशमा शहरीकरणको बम उच्च छ । त्यसैगरी पहाडी छ । शहरी ूणाली असन्तुिलत हुनुका साथै एकीकृ त छैन । क्षेऽका के ही ठू ला र मध्यम शहरहरुमा शहरीकरण तीॄ अब्यबिःथत शहरी िवःतार र अनौपचािरक शहरी िवकास देिखन्छ । ५८ नगरपािलकहरुमध्ये एक लाखभन्दा बढी अपवाद नभएर िनयमकै रूपमा बिढरहेको छ । शहरी पूवाधारमार् जनसंख्या रहेका चौध शहरी क्षेऽहरुले रािष्टर्य शहरी ठू लो घाटा (डेिफिसट) रहेको छ भने कु नै पिन मापदण्डहरु जनसंख्याको ४३.५१% ओगट्छन ् । जनसंख्याबीचको तुलना ःथािपत छैनन ् । शहरी वातावरण संकटापन्न छ । त्यसैगरी भरपदोर् नहुन सक्छ िकनभने नगरपािलकाको िनधारणर् गैर-कृ िषजन्य रोजगारीका अवसरहरु अवरुद्ध छन ् । शहरी राजनीितक िनणयर् हो जसले ूाय कायात्मकर् (फं ग्सनल) गिरबी बढ्दो छ र अझै बढने आशकां गिरएको छ । शहरी मापदण्डलाई बेवाःता गरेको छ । सन ् २०१४/१५ मा शहर योजना र ब्यवःथापनको संःथागत क्षमता कमजोर छ र हुनका िनिम्त आवँयक ठािनएका कायात्मकर् मापदण्डहरुको लगानीका आवँयकता, िबत्तीय उपलव्धता र कायान्वयनर् मनन िबना १५९ नयाँ नगरपािलकाहरुको घोषणा गिरयो । क्षमताबीच ठू लो अन्तर रहेको छ । यसले नेपालको नगरपािलकाको संख्या २१७ र शहरी १०. यातायात, कृ िष, उद्योग, भू-उपयोग र शहरी क्षेऽसँग (नगरपािलका) जनसंख्या ४०% पुगेको छ । सम्बिन्धत रािष्टर्य नीितहरु शहरी िवकासकै पक्षमा देिखन्छन ् । ६. राष्टर्को एक माऽ दस लाखभन्दा बढी जनसंख्या रहेको तथािप एकीकृ त र आिथकर् िहसाबले समुन्नत तथा सन्तुिलत काठमाडौं महानगरमा रािष्टर्य शहरी जनसंख्याको ९.०६% शहरीकरणको ूिबयाका िनिम्त आवँयक समिन्वत नीितगत जनसंख्या बसोबास गछर्न ् । यसको तुलनामा देशको दोॐो ूितिबयाको अभाव भने देिखन्छ । ठू लो नगरपािलका पोखरामा २.९२% शहरी जनसंख्या बसोबास गछर्न ् । कु ल जनघनत्व पिन धेरै नगरपािलकाहरुमा वतमानर् शहरी अवःथा कम रहेको छ । ५८ नगरपािलकाहरुमध्ये ३२ ११. भूिम र पूवाधारकार् सम्बन्धमा शहरी तथ्याङ्कको आधार नगरपािलकाहरुको र थिपएका १५९ नगरपािलकाहरुमध्ये १३९ अब्यबिःथत र अपुग छ । जग्गा िवखण्डन, अिनयिमत र नगरपािलकाको जनघनत्व १० व्यिक्त ूित हेक्टर भन्दा कम अनौपचािरक शहरी भूिम बजार, झन्झिटलो भूिम अिधकरण र रहेको छ, जनु रािष्टर्य शहरी नीितको न्यूनतम मापदण्ड भन्दा क्षितपूित र् संयन्ऽ तथा िवःततृ क्षेऽीयकरण (जोिनङ) सम्बिन्ध कम हो । शहरी िवकास उच्च (४% भन्दा बढी) रहेका िनयमहरू तथा भूिम ूयोग िनयन्ऽणको अभाव शहरी भूिम ःथानहरूमा काठमाडौं र पोखरा उपत्यका, िभऽी मधेश र ब्यबःथापनमा व्याप्त समःयाहरू हुन ् । आधारभूत पूवाधारहरुर् ूमुख राजमाग र् वरपरका क्षेऽहरु पदर्छन ् । पिछल्लो दशकमा भएका जग्गाहरुको आपूित र् सीिमत छ र कृ िष भूिममा माऽ ७ नगरपािलकाको (दमक, इटहरी, भरतपुर, िथमी, अब्यबिःथत शहरी िवकास तीॄ गितले भइरहेको छ । हाल पोखरा, कीितपर् ुर, बीरेन्िनगर) विद्धदरृ ५% भन्दा मािथ िथयो। िवकिसत भइरहेको शहरी ःवरुप झनझनै अब्यबिःथत हुँदैछ र यस िहसाबले भौगोिलक अविःथित र यातायात संजाल अपुग सुिवधाहरु र वातावरणको िगदोर् ःतर जःता समःयाले शहरीकरणका महत्वपूण र् िनधारकर् देिखन्छन ् । मःत हुँदै गइरहेको छ । ७. बसाइसराइको शहरीकरणमा सबैभन्दा बढी योगदान छ । १२. पानी आपूित,र् सरसफाई, फोहोर व्यवःथापन, आवास, शहरी जनसंख्यामा ३७.७% अन्य िजल्लामा जन्मेका वा यातायात र ऊजाकोर् िःथितले शहरी पूवाधारकोर् कमीलाई िवदेशमा जन्मेका देिखन्छन ् । शहर बसाइ सन ेर् मध्ये ७७% इंिगत गछर् । शहरी पूवाधारकार् सम्बन्धमा भौगोिलक ूदेशका मािमण भेगबाट रहेका छन ् । बीच पिन िनकै असमानता छ । पहाडका शहरी क्षेऽमा ८१.२% ८. रािष्टर्य कु ल माहःथ उत्पादनमा शहरी क्षेऽको योगदानको घरधुरीको पाइप पानी आपूितमार् पहुँच छ भने शहरी तराईमा अनुमानमा ठू लो िभन्नता देिखन्छ । यी अनुमानहरु ३३.१% यो माऽ ३२.९% छ । िपउने पानीको गुणःतर र माऽा सबै (के न्िीय तथ्यांक िवभाग) देिख ६५% (िवश्व बैंक/अथ र् शहरी क्षेऽमा अपयाप्तर् छ । २०१७ सम्ममा सबैका लािग मंऽालय) सम्म रहेका छन ् । यसबाट शहरी आिथकर् क्षेऽको पानीको सहौािव्द िवकास लआय पूरा गन र् ूितवष र् रु ७.५ अब र् लगानी गन र् आवँयक छ । सरसफाई ूणाली र फोहोर माध्यम हुनसक्छ, तर शहरी व्यवःथापनका अन्य क्षेऽमा ब्यबःथापनको िःथित पिन नाजकु छ । शहरी घरपिरवारमा जःतै यसको पिन कायान्वयनमार् कमी देिखन्छ । ५६.१% को माऽ सरसफाई ूणालीमा पहुँच छ भने ८८.२% १७. शहरी क्षेऽहरु आिथकर् िवकासको इिन्जन मािनन्छन ् । घरपिरवारको शौचालय रहेको तथ्यांक छ । त्यसैगरी, ५८ हालैको तथ्याङ्क अनुसार रािष्टर्य कु ल माहःथ उत्पादनमा नगरपािलकामध्ये के वल ६ को हकमा ब्यबिःथत ल्यान्डिफल ३३.१% (रािष्टर्य योजना आयोग/यूएनडीपी २०१४) योगदान साइटहरु रहेको छ भने के वल पाँचले फोहोर िनयन्ऽणको शहरी क्षेऽहरुको रहेको छ भने शहरी क्षेऽ िनकट र शहरी ब्यबःथापन गछर्न ् । क्षेऽको सेवा िलने गािवसहरुको योगदान ३०% रहेको छ । १३. आय अनुसार पुिगसक्दो आवासको अभाव र अःवःथकर कु ल माहःथ उत्पादनमा शहरी क्षेऽहरुको योगदानले सो क्षेऽका तथा अब्यबिःथत बःतीमा भइरहेको विद्धृ शहरी आवास क्षेऽका पूवाधारमार् लगानीको बढ्दो उपादेयतालाई ःथािपत गछर् । ूमुख मुद्दाहरु हुन ् । कु ल शहरी जनसंख्याको १०% यःता यःतो लगानीले एकाितर पुंजी र रोजगारी सजनाृ गन र् मद्दत बःती बःने पिरवारहरुले ओगटेको अनुमान गिरएको छ । गछर् भने अकाितरर् आिथकर् बिध्ददरलाईृ बढावा िदन्छ । अझ धरान जःता के ही शहरी क्षेऽमा ियनको संख्या तीनगुना १८. कृ िष तथा संबद्ध गितिविधहरुले शहरी क्षेऽमा रोजगारीको बढी छ । एक-ितहाइ भाग ओगटेको छ । थोक तथा खिाु व्यापार र १४. शहरी यातायातको एक महत्वपूण र् िवषय अपुग र अकु शल उत्पादनले शहरी रोजगारीमा १७% र १४% योगदान िदएका शहरी पिरवहन हो । शहरी क्षेऽमा औसत सडक घनत्व ३.२६ छन ् । तथािप शहरी रोजगारीको क्षेऽगत संरचना (सेक्टोरल िक.मी./वग र् िक.मी. छ जनु कु शल शहरी पिरवहनका साथ ै कम्पोिजसन) शहर क्षेऽअनुसार िभन्न रहेको देिखन्छ । शहरी-मामीण सबन्धहरुकों ूवद्धर्न गन र् एकदम ै न्यून हो । १९. शहरी क्षेऽमा गिरबी बढेको छ । सन ् २००३/०४ मा शहरी त्यसैगरी रािष्टर्य ऊजा र् संकटको अवःथा शहरी क्षेऽमा अझै जनसंख्याको झन्डै १०% गिरबी रेखा मुनी रहेको िथयो भने टड्कारोको रुपमा छ । िबजलीकोु माग शहरी र औद्योिगक २०१०/११ को तथ्याङ्क अनुसार शहरी जनसंख्याको १५% किरडोरहरुमा उच्चतम छ र ९% को वािषकर् दरले विद्धृ गिरबी रेखा तल छ । तर शहरी क्षेऽहरुबीच गिरबीको भइरहेको छ । शहरी क्षेऽमा िबजलीकोु माग आपूितभन्दार् धेरै तथ्याङ्कमा ठू लो अन्तर रहेको छ । गुलिरयामा ५०% बढी छ । जनसंख्या गिरबीको रेखामुनी रहेको छ भने पोखरामा यो माऽ १५. िविभन्न नगरपािलकाको पूवाधारर् िःथित आकलनँ गन र् १.३% छ । ५८ नगरपािलकाका लािग शहरी पूवाधारर् िःथित सचकाू ंकको २०. शहरी घरपिरवारले ूाप्त गन ेर् िवूेषण कु ल िवूेषण आयको िनमाणर् गिरएको छ । यो सूचकांकले नगरपािलकाहरु बीचको किरब १५% रहेको छ । काठमाडौं सबैभन्दा ठू लो िवूेषण ूाप्त पूवाधारकोर् अवःथा तुलना गन र् मद्दत गछर् । काठमाडौँ गन ेर् क्षेऽ हो । राममाम, िवराटनगर र जनकपुरले तराईमा महानगरपािलकाको सूचकांक मान सबभन्दाै उच्च छ भने सबैभन्दा बढी िवूेषण ूाप्त गछर्न ् । गुलिरयाको सबैभन्दा कम छ । २१. उत्पादन (म्यानुफ्याक्चरीङ) उद्योग काठमाण्डौ उपत्यका, १६. शहरी वातावरणीय अवःथाको िवश्लेषणले शहरी क्षेऽहरुको िवराटनगर तथा वीरगञ्ज आसपास क्षेऽमा सीिमत छन ् । भौितक, ूाकृ ितक र सामािजक वातावरणीय क्षेऽको नाजकु काठमाडौं उपत्यकाले शहरी उत्पादन क्षेऽको ४०% रोजगारी पिरिःथितलाई ूःट पाछर् । शहरी वातावरण व्यवःथापन ूदान गरेको छ भने िवराटनगर तथा आसपासका क्षेऽले र अन्तगतर् िवपद ब्यबःथापन, ूकोपको उिचत तवरले सामना वीरगञ्ज तथा वरपरका क्षेऽले बमश १७% र १५% रोजगारी गन,ुर् सुरक्षा ूदान गन,ुर् सामािजक-सांःकृ ितक वातावरणको ूदान गरेका छन ् । त्यसैगरी काठमाडौं उपत्यका (२५%), ूबधनर् तथा खुला ःथानको संरक्षण जःता गितिविधहरु पूवीर् तराई (१५%) र के न्िीय तराई (१९%) शहरी गैर-कृ िष पदर्छन ् । तर नगरपािलकाहरुमा यी कायबमहरुर् अिघ रोजगारीका तीन मुख्य क्षेऽहरु हुन।् सेवा क्षेऽले शहरी गैर- बढाउनका लािग चािहने संःथागत क्षमता, उिचत योजना र कृ िष रोजगारीको ७०% ओगटेको छ । आिथकर् ॐोतको अभाव छ । अिनयिन्ऽत अितबमणले गदा र् २२. कु ल उत्पादन रोजगारीमा झण्डै आधा जित गैर- शहरी खुला क्षेऽ तीॄ गितमा घट्दो र साँघुिरदो छ । खुला नगरपािलका क्षेऽमा पछर्न ् । कु ल औद्योिगक उत्पादनको ६०% क्षेऽको अनुपात काठमाडौंमा माऽ ०.४८% र लिलतपुरमा ौममा आधािरत उत्पादनले (हःतिशल्प) ओगटेको छ। शहरी ०.०६% छ । शहरी वातावरण व्यवःथापन िनदेर्िशका (अवनर् उत्पादन रोजगारीको संरचना यस ूकारको रहेको छ - ३०% इन्भायरमेन्ट म्यानेजमेन्ट गाइडलाइन्स) शहरी क्षेऽमा कागज, खिनज, प्लािःटक, रसायन र काठ, १९% कपडा िवद्यमान वातावरणीय समःयाहरूको सम्बोधन गन ेर् एक सशक्त (गामन्टेर् ), १८% वस्तर्, १९% कृ िष-ूशोधन र १४% मेशीनरी उपकरण । रणनीितको िवकास गनु र् र मानक (बेन्चमाकर् ) ःथािपत गन ुर् २३. शहरी क्षेऽहरुमा रहेका उत्पादन उद्योगको सापेिक्षक यो रणनीितको उद्देँय हो । यी रणनीितहरु भौितक िवकासमा लाभको िःथित बुझ्न लोके सन कोिसएन्ट िविधको ूयोग माऽ सीिमत रहेका छैनन,् ियनले नेपालको भावी शहरी गिरएको छ । यसका आधारमा काठमाडौं उपत्यकाको िवकासको गुणात्मक पक्ष पिन समेटेका छन ् । यो रणनीित सापेिक्षक लाभ रेिडयो, टेिलिभजन, सञ्चार उपकरण र िबषेशत पाँचवटा आधारभूत िसद्धान्तद्वारा िनदेर्िशत छ Ð ूकाशन तथा मुिण रहेको देिखन्छ । िवराटनगर-धरान िदगोपना, समावेिशता, लचकता (िरिजिलएन्स), हिरत िवकास किरडोरको हकमा भने िबद्युतीय मेशीनरी उपकरण र वस्तर् र कु शलता । सापेिक्षक लाभका क्षेऽ अन्तगतर् पछर्न ् । त्यःतै वीरगञ्ज २८. शहर (नगरपािलका) को िनधारणर् गन ेर् वतमानर् ूणाली किरडोरको हकमा छाला र छालाका उत्पादनहरु, आधारभूत युिक्तसंगत नभएकाले कायात्मकर् (फङ्सनल) मापदण्डका धातु र रसायन उत्पादन, तथा नेपालगंज किरडोरको लािग आधारमा नयाँ ूणाली संःथागत गनु र् आवँयक छ । ःथािपत रसायन र रसायिनक उत्पादन, र धातुका उत्पादनहरु रहेका मापदण्डका आधारमा "जनगणना शहर" (सेन्सस टाउन) को छन ् । उत्पादन उद्योगमा सामान्यतया साना उद्योगहरुको पिहचान र िनगरानी गन ेर् काम के न्िीय तथ्याङ्क िवभागलाई बाहुल्य भए पिन यी उद्योगको िःथित िगदोर् छ । सुिम्पनुपछर् । नगरपािलकाको घोषणा गन ेर् िनणयर् राजनीितक २४. ५८ नगरपािलकाको पूवाधारमार् रहेको िवद्यमान घाटा पुित र् िनणयर् रहे तापिन “जनगणना शहर”लाई माऽ नगरपािलका गन र् रु ३७२ अबकोर् लगानीको आवँयकता रहेको अनुमान छ। घोषणा गन ेर् ूावधान भिवंयमा हुनुपछर् । यो रािश नगरपािलकाको िवद्यमान र अपेिक्षत पूवाधारकोर् २९. सेवा र वःतुको ूवाहका आधारमा रािष्टर्य, क्षेऽीय र अबःथामा आधािरत छ । ूान्तीय शहरी ूणाली छु ट्याउन सिकन्छ । देशको मध्य र २५. वतमानर् अवःथामा नगरपािलकाको राजःवको आधार धेरै पुवभागमार् दईु सापेिक्षक रुपले एकीकृ त शहरी ूणाली िवद्यमान कमजोर छ र राजःव क्षमता पूणतयार् पिरचािलत गिरएको छन ् । मध्य र सुदरू पिश्चम भागमा शहरी ूणाली िबःतारै छैन । नगरपािलकाको आफ्नै ॐोतको राजःव (ओन सोस र् गितशील हुँदैछ, तर पिन पष्ठभृ ेग (िहन्टरल्याण्ड) सँगको रेभेन्यु) कु ल राजःवको माऽ ३०% रहेको छ, जबिक ७०% यसको सापेिक्षक सम्बन्ध अझै कमजोर छ । राजःव सरकारी अनुदानबाट ूाप्त गन ेर् गरेका छन ् । ३०. रािष्टर्य शहरी िवकासको उद्देँय भनेको सन्तिलतु रािष्टर्य, २६. सुशासन नगरपािलकाको एकदमै महत्वपूण र् सवालका क्षेऽीय र ूान्तीय शहरी ूणाली िवकिसत गनु र् हो जसले सुदृढ रूपमा देिखन्छ । अिहले शहरी योजना र भौितक पूवाधारर् अन्तर-शहरी र शहरी-मामीण सम्बन्धका माध्यमबाट शहरी िवकासलाई शहरी िवकास मन्ऽालय अन्तगतर् रािखएको छ, के न्िहरुको आिथकर् र कायात्मकर् आधारलाइ दिरलो बनाउछ, जबकी शहरी सुशासन र ूशासन संघीय मािमला र ःथानीय कु शल र ूभावकारी पूवाधारर् िवतरण ूणाली ःथापना गछर्, र िवकास मन्ऽालय अन्तगतर् छ । हालै गिरएको शहरी िवकास ःवःथ भौितक, ूाकृ ितक र सामािजक वातावरण कायम गछर्। मन्ऽालयको पुनः संगठनले खानेपानी र सरसफाई क्षेऽलाई यस यसैगरी शहरी ूणाली, शहरी पूवाधारर् र शहरी वातावरणका मन्ऽालयबाट अलग गिर छु ट्टै खानेपानी तथा सरसफाई लािग सचकू (इिन्डके टर) र मापक (मेजर) सिहत मन्ऽालयको ःथापना गिरएको छ । साथै यसका कायान्वयनर् कोशेढुङ्गाहरू िनधारणर् गिरएका छन ् । िनकायहरु नगर िवकास कोष र फोहोरमैला तथा ॐोत ३१. सन ् २०३१ सम्मका लािग िनधािरतर् ूमुख पिरचालन के न्िलाई बमशः अथ र् मन्ऽालय र ःथानीय िवकास कोशेढुङ्गाहरूमा अन्य कु राका अितिरक्त िनम्न कु राहरु समावेश मन्ऽालय अन्तगतर् रािखएको छ । खिण्डत (ृागमेन्टेड) छन ् - शहरी पूवाधारर् िवकासमा अिहलेको ूित व्यिक्त वािषकर् संःथागत ब्यवःथा, ःथानीय िवकास र शहरी िवकास लगानी ने.रु. ४,७२५ रहेको अवःथामा किम्तमा ने.रु. ९३०० मन्ऽालयबीच रहेको कमजोर समन्वयको अवःथा र ूािविधक लगानी, शहरी वडाहरुमा १०० िलटर/व्यिक्त/िदन िपउन योग्य िवशेषज्ञता तथा क्षमताको अभाव शहरी शासनका ूमुख खाने पानीको पहुँच, सबै शहरी क्षेऽहरुको मुख्य भागमा ढल िवषयहरु हुन ् । ब्यबःथापन, सबै शहरी घरहरुमा िवद्दतीकरणु , वैकिल्पक उजा र् ॐोतहरुको उपयोग, शहरी क्षेऽमा कम्तीमा ७.५ िक.िम./वग र् अपेिक्षत शहरी ूणाली र कोशेढुङ्गाहरू िक.िमको सडक घनत्व, िवद्दमान नगरपािलकामा ८०% पक्की (माइलःटोन) सडक, भूिम समायोजनका माध्यमबाट ५०% नयाँ आवासको सुिबधा, शहरी क्षेऽमा १००% फोहोर सङ्कलन, सबै ठू ला र २७. पिहचान गिरएका शहरी िवकासका समःयाहरूलाई मध्यम शहरमा उच्च गितको इंटरनेट उपलब्धता, पुराना सम्बोधन गन र् तथा अपेिक्षत अवःथा हािसल गन र् दीघकालीनर् शहरमा वडा ःतरमा कम्तीमा २.५% जग्गा (र नयाँ शहरमा रािष्टर्य शहरी िवकास रणनीितहरु ५%) पाकर् , मनोरञ्जन आिदका लािग खुला क्षेऽ, र कु ल ३६. रािष्टर्य शहरी िवकास रणनीित १५ वषकोर् समय सीमा माहःथ उत्पादनमा शहरी क्षेऽको योगदान ७०% पुर् याउने राखी तजमाुर् गिरएको छ । शहरी ूणाली, पूवाधारर् , वातावरण आिद । र अथतन्ऽर् रणनीितका ूमुख िवषयहरु रहेका छन ् । हरेक ३२. सन ् २०११-२०३१ सम्ममा िवद्यमान ५८ नगरपािलकाहरुको िबषयमा अपेिक्षत अवःथा ूाप्त गन ेर् उद्देँयले रणनीित तजमाुर् जनसंख्या ूक्षेपण मध्यम गितमा (विद्धृ दर ूितवष र् २.८%) गिरएको छ जसमा उच्च सामािजक मूल्यहरुलाई ूितिबिम्बत रहने अनुमान गिरएको छ । यद्दिप, शहरीकरण उच्च भएका गन ेर् शहरी क्षेऽका सामािजक, आिथकर् र सांःकृ ितक पक्षहरु नगरपािलकाहरुको विद्धदरृ ३.५% रहने र ियनले शहरी समािहत छन ् । ूत्येक रणनीित सरकारी, गैरसरकारी र िनजी जनसंख्याको लगभग ६०% िहःसा ओगट्ने अनमानु गिरएको क्षेऽका मुख्य र सहयोगी िनकायले िविभन्न तहमा गन र् छ । २०३१ सम्ममा िवद्यमान ५८ नगरपािलकाहरुको िसफािरस गिरएका िबयाकलापद्वारा समिथतर् छ । अनुमािनत जनसंख्या ९०.३ लाख हनेछ भने थप १५९ ु ३७. शहरी ूणाली: शहरी ूणालीको उद्देँय रािष्टर्य, क्षेऽीय र नगरपािलकाहरुको जनसंख्या १०१.९ लाख सिहत कु ल शहरी ूान्तीय शहरी ूणालीलाई सुदृढ गनु र् रहेको छ । यसमा जनसंख्या १ करोड ९२ लाख पुग्ने अनुमान गिरएको छ । समावेश गिरएका रणनीितहरुमा शहरी-मामीण ३३. ५८ नगरपािलकाको वतमानर् अवःथा हेन ेर् हो भने शहरी अन्तरसम्बन्धको सबलीकरण, क्षेऽीय तथा अन्तर-क्षेऽीय सडक पूवाधारकोर् घाटा (डेिफिसट) ठू लो छ । आधारभतू पूवाधारकोर् ःतरोन्नित, ूमुख क्षेऽीय शहरी के न्िहरु र भिवंयका ूान्तीय अभाव छ वा ज्यादै न्यून छ । शहरी पूवाधारर् घाटा कम गन र् राजधानीहरुमा उच्चतहका कायहरुकोर् सहजीकरण, ूमुख तराई र २०३१ सम्ममा २१७ नगरपािलकाहरुको थप माग पूरा गन र् शहरी के न्िहरुमा सडक पूवाधारर् सुधार, मध्यवतीर् र साना रू २,४५३ अब र् लगानी आवँयक छ । ःथािनय एवं क्षेऽीय शहरहरुलाई तुलनात्मक लाभ िलन सक्षम बनाउन सहजीकरण, िवकास सम्भावनाको ूवद्धर्नका लािग थप २५% लगानी र मध्य-पहाडी शहरहरु र पूव-र् पिश्चम राजमागसर् गं जोिडएका २२% अितिरक्त लगानी जोड्ने हो भने यो लागत रु. ३,६०५ शहरहरुमा "ःमाटर्" शहरहरुको पिरकल्पना अनुरुप पूवाधारर् अब र् हन जान्छ । ःथािनय एवं क्षेऽीय िवकास सम्भावनाको ु िनमाणर् , "एक शहर एक पिहचान"को पिरकल्पना अनुरुप ूवद्धर्न अन्तगतर् भिवंयका ूान्तीय राजधानीहरुको िवशेष शहरहरुको पूवाधारर् र आिथकर् ूितःपधामार् जोड, काठमाडौं पूवाधारकोर् आवँयकता पिन समेट्न सिकन्छ भने अितिरक्त उपत्यकामा वातावरण, सम्पदा र पयटनर् अनुकू ल आिथकर् लगानी अन्तगतर् आयोजना कायन्वयनर् , ब्यवःथापन, गितिबिधहरुलाई बढावा र भावी ूान्तीय के न्िहरुलाई रािष्टर्य, संःथागत िवकास, िवपद जोिखम ब्यवःथापनमा सामुदाियक ूान्तीय तथा क्षेऽीय शहरी ूणालीमा आबद्ध गराउने रहेका क्षमताको िवकास र जिमनको ूावधान र पुनःःथापना जःता छन ् । कायहरुर् पदर्छन ् । शहरहरुको जनसंख्याको आधारमा लगानी ३८. शहरी पूवाधारर् : यसमा समावेश गिरएका रणनीितहरुमा ूाथिमकता िनधारणर् गिरएको छ । िवद्यमान शहरी क्षेऽमा शहरी पूवाधारर् िवकास, संभार र सेवा ूदानका लािग रािष्टर्य लगानीको ६०% सडक िवःतार र ःतरोन्नितले ओगटेको छ । ॐोतको िविनयोजनमा विद्धृ गन,ेर् आधारभूत सेवाहरु तथा ३४. शहरी पूवाधारर् , खानेपानी तथा सरसफाई, फोहरमैला उच्च पूवाधारर् िनमाणमार् िनजी क्षेऽको लगानी आकिषतर् गन,ेर् व्यवःथापन, सडक/पिरवहन जःता क्षेऽहरुमा आवँयक सबै शहरी क्षेऽमा आधारभूत पूवाधारर् सुिनिश्चत गन,ेर् शहर लगानीका लािग ूमुख ॐोतहरु मध्ये सरकारबाट ६०% र समूहको अवधारणा (क्लःटर िसिट अूोच) अनुसार त्यःता िवकास साझेदारबाट ३०%, नगरपािलकाबाट ५%, समुदायको शहरी क्षेऽहरुलाई साझा पूवाधारर् उपयोग गन र् आकिषतर् गदैर् २.५% र िनजी क्षेऽको २.५% रहने अनुमान छ । रणनीितक लगानी ूोत्सािहत गन,ेर् योजना र कायान्वयनमार् ३५. उत्पादन र जीवनःतर विद्धमाृ शहरी लगानीको दक्षता हािसल गरेर पूवाधारर् लगानीमा सुधार, पूवाधारर् िवकास योगदानलाई दृिष्टगत गदा र् यसमा गिरने लगानी औिचत्यपूण र् र सेवा िवतरणका लािग रािष्टर्य/ःथानीय संःथागत क्षमता हनेछ । शहरी पूवाधारमार् लगानीको फाइदा ूत्यक्ष आय ु अिभविध्दृ गन ेर् जःता गितिविधहरु रहेका छन ् । आजनर् र पूँजीगत लाभका साथ ै शहरी बािसन्दाले ितन ेर् बढ्दो ३९. खानेपानी तथा सरसफाई: यस अन्तगतर् ूमुख रुपमा करबाट हने अपेक्षा गिरएको छ । ु न्यूनतम पानी आपुितकोर् ूावधान, पानी सुरक्षा तथा सरसफाई

लगायतका िबषयहरु उल्लेख गिरएको छ । पानीको उिचत

ॐोत संरक्षण र व्यवःथापन गन,ेर् भवन िनमाणर् अनुमितमा

वषातकोर् पानी संकलन तथा व्यवःथापन ूिबयालाई समन्वय गन,ेर् सावजिनकर् खाली तथा खलाु क्षेऽहरुमा पानी संकलनको िनम्न छन:् शहरी ःथानहरूमा आपुित र् लिक्षत गरी जलिवद्युत ूावधानलाई सःथागतं गन,ेर् सुरिक्षत पानी उत्पादन तथा आयोजनाहरूको िवकास गन,ेर् हिरत ऊजा र् जःतै सौय र् ऊजाकोर् िवतरण ूणाली सुदृढ गन,ेर् पानीको गुणःतर मापन तथा समुिचत उपयोगलाई बढावा िदने, उजा र् िकफायती/कु शल भवन अनुगमन िनयिमत गन,ेर् सामुदाियक पानी भण्डारण िडजाइन र िनमाणलाईर् ूोत्सािहत गन ेर् । सुिवधालाइ ूोत्साहन गन,ेर् पानी आपूित र् तथा िवतरणमा िनजी ४४. शहरी वातावरण: शहरी वातावरणमा ूाकृ ितक तथा क्षेऽलाइ ूोत्साहन िदने र फोहोर पानी ूशोधन ूणालीमा सामािजक-सांःकृ ितक पक्षहरु अन्तगतर् शहरी सुरक्षा, लचकता लगानी बढाउने जःता रणनीितहरु रहेका छन ् । (िरिजिलयन्स), संःकृ ित, कृ िष, वनका साथै भूिम, वातावरणीय ४०. फोहरमैला व्यवःथापन: शहरी क्षेऽमा पूण र् फोहोर ूदषणू र शहरी ःवाःथ्यका समःयाहरु समावेश गिरएको छ । सङ्कलन ूःतािवत गिरएको छ । रणनीितहरु िनम्न छन:् ूमुख रणनीितहरुमा : शहरी क्षेऽमा ूदषणकोू ःतर िनयमन फोहोर संकलन तथा व्यवःथापनमा सामुदाियक तथा िनजी- तथा अनुगमन गन;ेर् सुरिक्षत बःती िवकासको सुिनिश्चतता सावजिनकर् साझेदारी र सहभािगता, घर/समुदाय ःतरको गन;ेर् ूकोप तथा जलवायु पिरवतनकार् सम्बन्धमा वहु-ूकोप फोहोर व्यवःथापनमा हालको ःयािनटरी ल्याण्डिफल साइटको पद्दित (मिल्ट हजाडर् अूोच) अवलम्बन गन;ेर् एिककृ त सुरिक्षत अवधारणालाई संबमणकालीन व्यबःथाका रुपमा माऽ िलने र बःतीको िवकासकाई सुिनिश्चत गन;ेर् भुउपयोग िनयम तथा ३आर (िरड्युस, िरयुज, िरसाइकल अथातर् फोहर कम गन,ेर् भवन संिहता र मापदण्डहरुलाई सम्बिन्धत िनकायहरुले पुनःूयोग गन ेर् र पुनः काममा ल्याउने) लाई ूोत्सािहत गदैर् लचकताको पिरूेक्षमा लागू गन;ेर् ूकोप जोिखम तथा सबै नगरपािलकाहरुमा समिपतर् तथा सक्षम फोहर व्यवःथापन असुरक्षाको सामना गन र् सरकारी तह, ःथानीय समुदाय र एकाई ःथािपत गन ेर् । नागिरक समाजमा उच्च जागरूकता र पूव र् तयारी गन;ेर् ४१. सडक/पिरवहन: शहरी यातायात सम्बन्धमा एउटा खाद्दान्न, तरकारी र फलफू ल उत्पादनहरुको लािग शहरी कृ िष फरािकलो दृिष्टकोण रािखएको छ । यस अन्तगतर् ूमुख रुपमा ूवद्धर्न गन;ेर् शहरी क्षेऽमा न्यनतमू वन तथा खुला क्षेऽहरु भूउपयोग र यातायात/पिरवहनलाई शहरी तथा क्षेऽीय योजना िनधारणर् गन;ेर् ःथानीय अथतन्ऽसर् ँग जोिडएका संमहालयहरु तजमाुर् ूिबयामा एकीकृ त गदैर् तत्सम्बन्धी संःथागत सयन्ऽं तथा सांःकृ ितक सम्पदा क्षेऽहरुको संरक्षण गदैर् सजनशीलृ र र क्षमताको िवकास गन,ेर् तहगत र सन्तुिलत शहरी सडक निवन कला, वाःतुकला र संःकृ ित ूवधनर् गन;ेर् यूवा लिक्षत पूवाधारकोर् ूावधान गन,ेर् िदगो शहरी सावजिनकर् पिरवहनको सामुदाियक र नागिरक समाज संगठनहरुलाई सहजीकरण र ूबन्ध गन,ेर् सावजिनकर् यातायातलाई ूोत्साहन गन,ेर् शहरी ूोत्सािहत गन ेर् र सामुदाियक सुरक्षा संयन्ऽ िवकिसत गन ेर् यातायात व्यवःथापनका लािग मानकहरुका साथै िबःततृ रहेका छन ् । शहरी ःवाःथ्य सुदृढ गनकार् लािग आधारभूत योजना तयार/कायान्वयनर् गन,ेर् र ूाथिमकता ूाप्त ूदेशहरुमा शहरी सरंचना िनमाणर् गन ेर् र वातावरणीय अवःथामा सुधार उच्च-गित अन्तर-शहरी यातायात पूवाधारकोर् ूावधान गन ेर् ल्याउने रणनीितहरु समावेश गिरएको छ । जःता रणनीितहरु रहेका छन ् । ४५. शहरी अथतन्ऽर् : यसका रणनीितहरु कु ल माहःथ ४२. आवास: पहुँच पुग्ने, यथेष्ट र सुरिक्षत आवासको ूावधान उत्पादनमा शहरी क्षेऽको योगदानमा विद्धृ , शहरी क्षेऽको शहरी आवास क्षेऽको उद्देँय हो । समािवष्ट रणनीितहरु िनम्न आिथकर् आधार सुदृढ गन ेर् र मलतःु आिथकर् िवकास र िवत्तीय छन:् आिथकर् रुपमा कमजोर वगहरुकार् लािग आवासको िःथित र लगानीमा विद्धृ गन ेर् तफर् उन्मुख छन ् । शहरी ूावधान गन र् िनजी क्षेऽको लगानी ूोत्साहन गन,ेर् समूह अथतन्ऽकोर् ूमुख रणनीितहरुमा ूितःपधामार् आधािरत आवासको ःतरलाई िनयमन गन,ेर् वातावरण अनुकु ल, ःथानीय, ूान्तीय र क्षेऽीय तहका तुलनात्मक लाभका क्षेऽहरु िकफायती र सजनशीलृ भवन िनमाणलाईर् ूोत्साहन गन,ेर् पिहचान गिर शहरी क्षेऽका लािग ःथानीय, ूान्तीय र क्षेऽीय अःवःथकर र अब्यबिःथत बःती िवःतार तथा अितबमणलाई आिथकर् िवकास योजनाहरुको तजमाुर् तथा कायान्वयनर् गन ेर् र िनरुत्सािहत गन ेर् रणनीित तयार गन,ेर् आिथकर् रुपमा कमजोर यसका िनिम्त संःथागत सहयोगको िवःतार गन,ेर् शहरका वगहरुकार् लािग आवास िनमाणर् तथा िबःतारमा सहकारी मुख्य ऐितहािसक क्षेऽहरुमा र ूकोप ूभािवत शहरी संयन्ऽलाई ूोत्साहन गन,ेर् सावजिनकर् -िनजी/सामुदाियक के न्िहरुमा शहरी पुनउर्त्थान (अवनर् रीजेनरेसन) साझेदारीको माध्यमद्वारा आधारभूत पूवाधारयर् ुक्त जग्गा िवकास कायबमहरुलाईर् बढावा िदने तथा अनौपचािरक शहरी अथतन्ऽर् गन र् ूोत्साहन गन ेर् । र शहरी गिरबी िनवारणका समःयाहरूलाई मलधारमाू ल्याउने ४३. ऊजा:र् यथेष्ट, कु शल र हिरत उजाकोर् ूावधान उजा र् क्षेऽको रहेका छन ् । ूमुख उद्देँय रहेको छ । यसका लािग ूःतािवत रणनीितहरु ४६. शहरी लगानी: शहरी पूवाधारमार् रािष्टर्य ॐोत बाँडफाँडबाट अिहलेको ूितव्यिक्त वािषकर् लगानी ने.रु. ४,७२५ रहेको ूदेशहरु र शहरी किरडरको व्यवःथापनका लािग कानुनी अवःथामा किम्तमा ने.रु. ९३०० लगानीका लािग िविनयोजन आधारहरुमा सुधार; अनुसन्धानमा आधािरत नीित तथा गिरने धारणामा यो रणनीित आधािरत छ । िनम्न कु राहरू कायबमहरुकोर् सहजीकरण र ूोत्साहन तथा शहरी शासनमा रणनीितमा समािहत छन ् Ð िनजी क्षेऽ तथा क्षेऽगत राष्टर् र नागिरकिबच सामािजक जवाफदेिहता संयन्ऽलाई (सेक्टोरल) िनकायहरूले शहरी क्षेऽमा समिन्वत लगानी गन;ेर् संःथागत गन ेर् रहेका छन ् । यस रणनीितले नया ँ शहर योजना सबै नगरपािलकाहरुमा आधारभूत पूवाधारर् सेवा सधारकाु लािग र जग्गा िवकास कायबमर् लागु गन र् नगर िवकास चरणबद्ध लगानी गन;ेर् शहरी सडकहरुमा संःथागत लगानी सिमितहरुलाई सुदृढ गन,ेर् साथै क्षेिऽय िवकासको िनिम्त अिभविद्धृ गन;ेर् रणिनितक पूवाधारर् योजना अन्तगतर् समूह संबमणकािलन उपाय ःवरुप अिधकार सम्पन्न (क्लःटरड) शहरी ूदेश तथा शहरी किरडरहरुमा लगानी सिमित/ूािधकरणको गठन जोड िदएको छ । त्यसैगिर बढाउने; मध्य, सुदरू पिश्चम, िभऽी मधेश र दिक्षणी तराईको नगरपािलकाहरुको लगानीमा ःपेशल परपोज भेिहकलको अल्पिवकिसत भेगिभऽ रहेका शहरी क्षेऽमा लगानी ूोत्सािहत (Special Purpose Vehicle) ःथापना गिर ठू ला शहरी पूवाधारर् गन;ेर् शहरी िवकास र आधारभूत सेवाहरूको ूावधानलाई िवकासको कायबमर् कायान्वयनर् गन र् यो रणनीितले जोड ूाथिमकता िदंदै रणनीितक िहसाबले महत्वपूण र् साना शहरहरू, िदएको छ । बजार के न्िहरु, ूशासिनक के न्िहरु तथा नयाँ शहरहरूमा ४९. शहरी भूिम व्यवःथापन: शहरी भूिम व्यवःथापन "ःमाटर्" शहर र "नमुना गाँउ"को पिरकल्पनामा आधािरत रणनीितहरु भूिम अिधमहण, क्षितपूित र् सयन्ऽं र शहरी भूिम भएर ूाथिमकताका साथ लगानी बढाउने आिद । बजारको िनयमन तथा िवकासतफ़र् उन्मुख छन ् । ूमुख ४७. शहरी िवत्त: आत्मिनभरर् र आिथकर् रुपमा समद्धृ शहरी रणनीितहरुमा न्यायसंगत भिमू मूल्यांकन र क्षितपूित र् क्षेऽको िवकास नै शहरी िवत्त रणनीितको मुख्य उदेँय रहेको संयन्ऽको िनमाणर् , जनिहतका िनिम्त भूिम ूाप्त गन ेर् छ । ूमुख रणनीितहरुमा अन्तर-सरकारी िवत्तीय हःतान्तरण सरकारको मनसाय रहेका खण्डमा भूिम मूल्य िःथर गराउन (इन्टर गवमन्टलेर् िफःकल शान्सफर) ूणालीको िवकास, सक्ने ूावधान, भूिम सूचना ूणालीको ःथापना, पूवाधारर् र नगरपािलकाहरुको आफ्नै-ॐोत राजःवको पिरचालन, सबल वातावरणमा आधािरत भएर भूिम ूयोग िनयन्ऽण गन,ेर् भू- आिथकर् मध्यःथ संःथा माफर् त ऋण िवत्तको पहुँचमा सधारु उपयोग नीित अन्तगतर् महत्वपूण र् कृ िष भूिम सरक्षणकों लािग तथा वैकिल्पक िवत्तीय माध्यमहरुद्वारा लगानी पिरचालन गन,ेर् ूोत्साहन गन,ेर् पयाप्तर् शहरी आरिक्षत भूिमको आविधक शहरी सडकमा लगानी विद्धृ गन र् ऋण र अनुदान नीितको पुनरावलोकन सिहत शहरी तथा मामीण जग्गाको वगीर्करण समीक्षा गन ेर् रहेका छन ् । गन,ेर् कानुनी आधारको व्यवःथा गन ेर् र ठू लो माऽामा भूिम ४८. शहरी शासन: शहरी व्यवःथापन र सेवा िवतरणको लािग एकीकरण, भूिम बैंिकङ र भूिम ःवािप्पंग जःता योजनाहरु ूभावकारी सुशासनको पूवाधारर् िसजनार् गनु र् ूमुख उद्देँय कायान्वयनर् गन ेर् रहेका छन ् । रहेको छ । ूमुख रणनीितहरुमा सरकारको ूशासिनक र कानुनी दःतावेज र िनदेर्शनहरुमा संघीय, ूान्तीय र ःथानीय तहको भूिमका ःपष्ट गन;ेर् अन्तर मन्ऽालयगत समन्वय तथा शहरी योजना, नीित र कायबमहरुकोर् संयुक्त अनुगमनका लािग शहरी िवकास मन्ऽालयमा उच्च ःतिरय समन्वय र अनुगमन सिमती गठन गन;ेर् शहरी िवकास मन्ऽालय र संघीय मािमला तथा ःथानीय िवकास मन्ऽालय बीच संःथागत समन्वयमा सुधार; एिककृ त शहरी पूवाधारर् र शहरी िवकास कायान्वयनकार् लािग शहरी िवकास मन्ऽालयलाई अझ सशक्त तुल्याउने; शहरी योजनालाई दीघकालीनर् िवकासको एकमाऽ आधार मान्ने पिरपािटको ःथापना; शहर समूहको अवधारणा (क्लःटर िसिट) अन्तगतर् पन ेर् ठू ला शहरी

EXECUTIVE SUMMARY National Urban Development Strategy (NUDS): Objectives and Process

1. The objective of National Urban Development Strategy and this has emerged primarily from the lagging consensus (NUDS) is to develop medium and long term strategic vision on the definition of the term urban development. NUDS of a desirable national/sub-national urban system based on visualizes urban development as an endeavor of “spatial and existing trends and regional resource potentialities. It assesses physical development” which is the fundamental basis for existing conditions of infrastructure, environment, economy sustainable social, economic and cultural development vis- and governance, establishes benchmarks and desirable à-vis environmental management. Yet, NUDS visualizes that standards. And it identifies prioritized strategic initiatives these physical, social, economic and environmental aspects for investment in infrastructure and environment to realize are not mutually exclusive; rather they mingle to form an the comparative advantages of urban areas. interlinked whole—interwoven with a dialectical process of one influencing another. Hence, NUDS’s emphasis is on an It also reviews the institutional framework to facilitate integrated view and approach for urban development. implementation and monitoring of National Urban Policy (2007) and proposed urban development strategies. The The Urban Scene implementation of NUDS is also expected to complement 4. Nepal is one of the least urbanized countries of Asia but Nepal’s effort to graduate from Least Developed Country the pace of urbanization in the last decades has been faster (LDC) to Developing Country (DC) by 2022, achievement of and is likely to remain so as a result of multiple transitions Sustainable Development Goals (SDGs) which envisions spatial, demographic and economic – that are underway. In transforming Nepal into middle-income country by 2030, 2011 the 58 municipalities harbored 19% of Nepal’s and attaining objective of accelerated economic growth as population. Inter-censal urban growth rate of 3.43% excludes espoused by the 14th Three Year Plan. newly graduating urban areas and expansion outside municipal limits. 2. The inception of NUDS began in 2013-14 with a clear vision to create balanced and prosperous national urban 5. Kathmandu Valley is the hub of Nepal’s urbanization system. NUDS is the outcome of an interactive, participatory with nearly 22.4% of national urban population. Regional process involving consultations on specific themes, expert levels of urbanization vary markedly with high levels of input, and the experience, opinions and perceptions of MoUD urbanization in valleys and inner Tarai relative to the more officials, relevant sectoral agencies, and stakeholders from economically potential Tarai. Urbanization is dominated by academia and policy fraternity. It has also received formal few large and medium cities in the hills. Among the 58 endorsement and feedbacks from National Planning municipalities, 14 urban centres with over 1 lakh population Commission (NPC), Ministry of Finance (MoF), Ministry of make up nearly 43.51% of national urban population. Federal Affairs and Local Development (MoFALD), and However, population comparisons can be misleading because Ministry of Physical Infrastructure and Transport (MoPIT). municipal designation is a political decision which often Keeping in view of the changed context, NUDS has been ignores functional criteria. Between 2014 and 2015, 159 further reviewed to assess infrastructure needs of all 217 new municipalities irrespective of their functional attributes municipalities. The review also assesses the MoUD’s recent have been added to the municipal category bringing the organizational fragmentation, provisions of the Constitution number of municipalities to 217 and urban (municipal) that are relevant to the urban development sector, and population to 40% of the total. attempts to bring few international insights that are relevant to planning and development of provincial capitals in future. 6. Kathmandu Metropolitan City, the only million plus city in The review has also examined the trend of national budget the country, has 9.06% of national urban population as per allocation for the urban development sector. The Steering the 2011 census data. In comparison, Sub- Committee has further reviewed NUDS to submit it for the Metropolitan City which is the second largest of approval of the government. the country has 2.92% of urban population. Gross population density is also low in most municipalities. With addition of 3. The rationale of NUDS emerged not only from the desire new municipalities and sub-metro cities, 32 out of 58 to operationalize NUP and guide MoUD, but other multiple municipalities and 139 out of 159 municipalities have factors embedded to the urban development sector also ne- population densities less than 10 ppha, a minimum criterion cessitated this. These factors among others include lopsided for declaration of urban center as proposed in the National growth of the Kathmandu Valley overshadowing regional cit- Urban Policy. High urban growth (over 4%) locations ies and towns, disorderly urbanization, lagging infrastruc- characterize Kathmandu and Pokhara valleys, Inner Tarai ture provisions, declining natural and built environment, valleys and locations along major road corridors. In the last inability of urban areas to generate adequate jobs and boost decade, only 7 municipalities (Damak, , Bharatpur, economy, fragmented urban governance, and weak revenue Thimi, Pokhara, , ) had growth rates of the local bodies. MoUD, after its establishment in 2012, above 5%. It is seen that physiography and connectivity are was also in state of uncertainty about its scope of work— important determinants of urbanization. 7. Migration is the largest contributor to urban growth with 56.1% of urban households have access to sanitation system 37.7% of urban population either born in other district or with 88.2% households having access to toilets. Likewise, foreign born. Seventy-seven percent of urban migrants are out of 58 municipalities, only 6 have sanitary landfill sites born in rural areas. and only 5 practice controlled waste dumping.

8. Estimate of the contribution of urban areas to national 13. Lack of affordable housing and increasing squatter GDP vary a great deal and remains a matter of conjecture settlements are major concerns in the urban housing sector, indicating the need for a more comprehensive accounting of which is evident in the growing housing deficit and increasing urban economic activities. The estimates range from 65 percentage of squatter settlements in urban areas. Squatters percent (WB/MoF) to 33.1% (CBS/NHDR). The contribution comprise an estimated 10% of the urban population, but of Kathmandu Valley to the national GDP has been estimated some urban areas like have three times as much. by the Central Bank to be of the order of 23.4% of the national GDP. 14. Inadequate and inefficient transport infrastructure is a critical concern in urban transport. The average road density 9. As increased urbanization and urban growth remain of urban areas is 3.26 km/sq.km, which is inadequate for inevitable, urban areas in Nepal are beset with a host of the efficient urban mobility as well as to promote urban- critical issues. The urban database is poor. The urban system rural linkages. The national energy crisis is apparent and is unbalanced and far from integrated. Urban sprawl and exaggerated in the urban area. The demand of electricity is informal urban growth is the norm rather than the exception. the highest in urban and industrial corridors with an annual There are wide deficits in urban infrastructure and no rate of increment of 9%. Demand for electricity far exceeds standards are in place. Urban environmental concerns are the supply in urban areas. reaching critical levels. Non-farm employment opportunities remain constrained. Urban poverty is rising and anticipated 15. To assess the infrastructural status of various to rise further. The institutional capacity for urban planning municipalities, an Urban Infrastructure Condition Index (UICI) and management is poor and there is a wide gap between was computed for 58 municipalities. UICI provides a tool for urban investment needs, financing and implementation comparison of infrastructural condition of municipalities. capability. Kathmandu Metropolitan City has the highest value of UICI whereas remains at the bottom of the index list. 10. National policies in transportation, agriculture, industry, land use and the urban sector have, for the most part, 16. Analysis of urban environmental conditions highlights favoured urban growth. Coordinated policy response to an the dire situation of urban areas in terms of physical, natural integrated and economically vibrant and balanced and social environment. The municipalities lack institutional urbanization process has however been lacking. capacity, proper planning and funding mechanisms to manage urban environment that includes coping with Current Urban Conditions disasters, providing safety and security, enhancing socio- cultural environment, preservation of open spaces etc. There 11. Urban database on land and infrastructure is poor and has been a rapid loss of open spaces in urban areas due to far from comprehensive. Land fragmentation, unregulated unmonitored encroachment. The proportion of open space and informal urban land market, cumbersome land acquisition is only 0.48% in Kathmandu and 0.06% in Lalitpur. The and compensation mechanism and lack of comprehensive existing Urban Environment Management Guidelines could zoning regulations and land use controls characterize the be a strong document to address environment issues in urban prevailing conditions of urban land. The supply of serviced areas, but like other documents related to urban land is limited and urban sprawl is at the expense of management, it falls short in implementation. productive agricultural land. The evolving urban form is becoming increasingly disorganized with incompatible land 17. Urban areas are regarded as the engines of economic uses and declining level of amenities and neighborhood growth. The recent GDP data by CBS shows that urban areas environment. directly contributed 33.1% to the national GDP (NPC/ UNDP 2014) and another 30% comes from the VDCs at proximity 12. Deficiency of urban infrastructures is highlighted by to or served by the urban centers. The contribution of urban the situation of water supply, sanitation, solid waste areas to the GDP provides stronger justification for investing management, housing, transport and energy. There is also in urban infrastructure because it facilitates in the generation considerable disparity among ecological regions. Only 32.9% of wealth and employment opportunities and boosts the rate of households have access to piped water supply in urban of economic growth. Tarai as compared to 81.2% of households in urban hill. The quality and quantity of drinking water is insufficient in 18. Agriculture and allied activities account for one-third of all urban regions. To meet the MDG target of water for all by the employment in the urban sector. Wholesale and retail 2017, substantial investment to the tune of Rs. 7.5 billion trade and manufacturing contribute 17% and 14% of urban per annum is required to be spent. Conditions of sanitation employment. Sectoral composition in urban employment system and solid waste management are also critical. Only differs significantly by urban areas. 19. Poverty in urban areas is on the rise. In 2003/04 about leading to establishment of separate Ministry of Water Supply 10% of urban population was below the poverty line. The and Sanitation (MoWSS). Its implementing arms namely TDF 2010/11 NLSS shows that population below poverty line and SWMTSC have also come to be aligned with MoF and comprises 15% of the urban population. There are enormous MoFALD respectively. Fragmented institutional arrangement, differences between urban areas – Pokhara has only 1.3% uncoordinated mechanisms between MoFALD and MoUD and below poverty line while in Gulariya it is 50%. lack of technical expertise and capacity are issues of major concern in urban governance. 20. Remittance received by urban households is around 15% of national remittance income. Kathmandu is the largest Intended Urban System and Milestones recipient. Ramgram, and Janakpur are the other large recipients of remittance income in the Tarai. 27. NUDS aims to develop strategic vision for key urban sectors, establish benchmarks and formulate strategies to 21. There are mainly three clusters of manufacturing help in addressing the identified issues and attain the industries. Kathmandu Valley accounts for 40% of urban desirable condition. The strategy is not limited to physical manufacturing employment while Biratnagar and vicinity and development alone, but aspires to attain a qualitative vision Birganj and vicinity account for 17% and 15% respectively. for future urban growth in Nepal. NUDS is guided by five There are also three main clusters of urban non-farm basic principles, namely that urban centres should be employment – Kathmandu Valley (25%), eastern Tarai (15%) sustainable, inclusive, resilient, green and efficient. and central Tarai (19%). Service sector makes up 70% of urban non-farm employment. 28. The present system of designation of urban centres has to be based on better functional criteria and institutionalized. 22. Nearly half of the total manufacturing employment is The CBS should be entrusted with the task of recognizing located in non-municipal, rural areas. Labour intensive and monitoring “census towns” on the basis of established manufacturing (handicrafts) account for 60% of total criteria. While the decision to provide municipal status will industrial production. The composition of urban remain a political one, only settlements with the status of manufacturing employment is 30% paper, mineral, plastics, census towns should be designated as municipalities in the chemicals and wood, 19% garment, 18% textile and 19% future. agro-processing and 14% machinery equipment. 29. The existing national, provincial and regional urban 23. Computation of location quotients reveals the relative system comprises of two relatively integrated systems in the advantage in manufacturing in urban areas/regions. centre and in the east based on flow of goods and services. Accordingly, the relative advantage of Kathmandu Valley is However, the urban system in the mid and far west is nascent radio, television, communication equipment and publishing, with relatively weak links with their hinterlands. printing. Similar advantages for Biratnagar-Dharan corridor is electrical machinery apparatus and textiles, Birganj corridor 30. The objective of national urban development is to achieve – tanning and leather products, basic metal and chemical a balanced national, provincial and regional urban system products, and Nepalganj corridor – chemical and chemical that strengthens economic and functional base of urban products, fabricated metal products. Manufacturing is centres through enhanced inter-urban and urban-rural generally characterized by small scale industries which show linkages, establish effective and efficient infrastructure a declining trend. delivery system and maintain a healthy physical, natural and social environment. Milestones comprising of indicators and 24. To meet the infrastructural deficit in 58 municipalities, measures have been determined for the urban system, urban the investment requirement is estimated to be NRs 372 infrastructure and urban environment. billion. The amount is calculated based on existing and desirable state of municipalities. 31. Major milestones by 2031 include annual investment of at least NRs 9,300 per capita from the present NRs 4,725 25. In the present context, the revenue base of the in 217 municipalities for urban infrastructure development, municipalities is very weak and revenue potential has not access to piped water and 100 lpcd in urban wards, sewerage been fully mobilized. Own source revenue of the municipality in all urban core areas, total electrification in all urban areas on average accounts for only 30% of the total revenue and with 80% of households with alternative sources, road density nearly 70% of municipal revenue accrues from government of 7.5km/sq.km and 80% paved road in existing grants. municipalities, 50% of new residential housing through land readjustment, 100% solid waste collection, high speed 26. Governance emerges as a critical issue in municipalities. internet availability in all large and medium towns, at least The current arrangement has put urban planning and 2.5% of land as open space at ward level in old and 5% in infrastructure development under one ministry umbrella new municipalities, disaster risk management plan and (MoUD), while urban governance and administration in capability in all municipalities, and 70% contribution to GDP another (MoFALD). The recent reorganization of MoUD has from urban areas. further detached the water and sanitation sector from it 32. A medium growth rate is estimated for population hill towns and towns along the east-west highway; enhancing projection for the existing 58 municipalities during 2011- infrastructure and economic competitiveness of cities under 31. The growth rate is taken 2.8% per annum. However, “One City One Idenity” concept; promoting environment, briskly urbanizing municipalities are expected to have a heritage and tourism friendly economic functions in the growth rate of 3.5% and an urban population share of about Kathmandu Valley; and integrating future provincial capitals 60%. By 2031, the projected population in established 58 in the national and sub-national urban system. municipalities and 159 municipalities is expected to reach 9.03 million and 10.19 million respectively, bringing the 38. Urban Infrastructure: For the infrastructure sector in total urban population of the country to 19.22 million. general the strategies seek to increase national resource allocation in urban infrastructure development, maintenance 33. Urban infrastructure deficit at present is significant. and service delivery; promote private sector investment on Basic infrastructure is lacking or very poor. Total investment basic services as well as higher order infrastructure; basic required to meet the urban infrastructure deficit and infrastructures for all urban areas; orient strategic investment additional demand of 217 municipalities by 2031 comes to for shared infrastructure in urban regions through a cluster a total of NRs 2,453 billion. This cost increases to NRs city approach; improve infrastructure investment performance 3,605 billion, if cost by 25% is added to unleash local and through increased efficiency in planning and implementation; regional development potential—which may also include and build national/provincial/local institutional capacities for specialized infrastructure need of the future provincial infrastructure development and service delivery. Specific capitals, and when additional cost by 22 % is accounted for strategies have been proposed in each major theme within project preparation, implementation/management, urban infrastructure safeguards, institution development, building community resilience, and land provisioning and rehabilitation support. 39. Water Supply and Sanitation: Minimum water Investment priority is determined by population size of cities. provisioning, water security, safety and sanitation coverage Investment priority is determined by population size of cities. are proposed. The strategies include protection and About 60 % of the cost in existing urban areas is earmarked management of fresh water sources; integration of rain water for upgradation and extension of roads. harvesting within the building permit system; institutionalizing water recharge provisions in public spaces; 34. The major contributors to the required investment in strengthening system to produce and deliver safe water; different sectors like urban infrastructure, water supply and internalizing regular monitoring system to assure water quality sanitation, solid waste management, and transportation are standard; promoting community water storage facilities; expected to be the government (60%) and development facilitating private sector investment in water supply, and partners (30%), municipalities (5%), and private sector augmenting investment in waste water treatment systems. (2.5%) and community (2.5%) respectively. 40. Solid Waste Management: Complete waste collection 35. Urban investment will be justified because of its coverage is proposed for urban areas. The strategies include contribution to increase production and enhance living focus on community-led waste segregation and collection; standards. The economic return of investments in public-private partnership in waste collection and infrastructure is expected to be substantial through direct management; adopt sanitary landfill sites as a transitional income and capital gains and increases in taxes from urban strategy with the aim of promoting and mandating 3R (reduce, residents. reuse, recycle solid waste at household/community level; and establish dedicated and capacitated SWM unit in all National Urban Development Strategies municipalities.

36. National Urban Development Strategy is formulated with 41. Transportation: A broader perspective on urban a time horizon of 15 years. Strategies have been conceived transportation is proposed. The strategies include the to achieve desirable condition in each major theme – infra- integration of land use and transportation in urban as well structure, environment, economy and finance – but also in- as regional planning and development of related institutional dicate the social, economic and cultural vision of urban ar- mechanisms and capacity; provision of hierarchically eas reflecting the highest values of society. Each strategy is balanced urban road infrastructure; promotion of sustainable backed by a number of activities recommended for each urban public transport, and preparation and implementation lead and supportive agencies within the different levels of of comprehensive transport management standards and plans the government, NGOs and the private sector. for urban areas. In prioritized regions the provision of high- speed inter-urban transport infrastructure is also proposed. 37. Urban System: National objective is to strengthen the national, provincial and regional urban system. Strategies 42. Housing: Provision of affordable, adequate and safe include – strengthening urban-rural linkages; upgrading housing is the objective in the urban housing sector. inter and intra-regional road connectivity standards; Strategies include facilitation of the private sector to provide facilitating higher level functions in major regional urban housing to the economically weaker sections; regularize centres and future provincial capitals; improving connectivity standards of groups housing; and promotion of innovative, infrastructure in key Tarai urban centres; facilitating economic and environment friendly building. Strategies to intermediate and small towns in realizing their comparative discourage squatter settlements and encroachment; advantages; creating infrastructure for “smart” towns in mid- encourage cooperative mechanisms for the production of housing for the economically weaker sections; and facilitate roads; focused investment for strategic infrastructure projects the production of service land through public-private/ in clustered urban regions and urban corridors; increased community partnership have been proposed. investment in urban areas of mid and far west and underdeveloped regions of inner Tarai and southern Tarai; 43. Energy: Provision of adequate, reliable, efficient and prioritized investment in strategic small towns, market centres, green energy is the major objective in the energy sector. The administrative centres and new towns for promoting urban strategies include development of hydro-power projects in growth and provision of services incorporating “smart” towns consideration of the urban locations; promotion of the optimal and “model village concept”. use of solar energy, promotion of passive design and energy efficient building materials. 47. Urban Finance: Creation of self-reliant and financially solvent urban areas is the objective of strategies in urban 44. Urban Environment: Urban environment incorporates finance. Major strategies include the development of an natural as well as the socio-cultural environment bringing in optimized inter-governmental fiscal transfer system; enhanced issues of urban safety, resilience, culture, agriculture, forest mobilization of own-source revenue of municipalities; as well as the problems of land, environmental pollution and improved access to debt financing through strong financial urban health. Major strategies include compliance with set intermediary institutions; investment mobilization through standards of pollution in urban areas, promotion of multi- alternative financing instruments, and reviewing loan and hazard approach to dealing with disasters and climate change; grant policy to increase investment on urban roads. ensuring development of integrated safer settlement; internalization of resilience perspective in land use regulations 48. Urban Governance: In the area of urban governance and building codes and by-laws; and enhanced awareness the objective is to create an efficient and effective governance and preparedness to deal with disaster risk and vulnerability infrastructure for urban management and service delivery. at all the levels of government as well as local communities Strategies include focusing on “facilitating” role of federal and civic bodies. Promotion of urban agriculture for food, level, “coordinative” role of provincial level, “implementing” vegetables and horticultural products; maintenance of role of local level; establishment of High Powered minimum forest cover in urban areas; maintenance of minimum Coordination and Monitoring Committee at MoUD to ensure stipulated open space in urban areas; preservation of heritage inter-ministry coordination and joint monitoring of the sites as well as museums tied with local economy in old urban implementation of policies, strategies, and programs; the areas and promotion of innovative art, architecture and culture improvement in institutional coordination between MoUD and in new urban areas; facilitation of community and civil society MoFALD; empowering MoUD to undertake integrated urban organizations particularly oriented towards the youth; and infrastructure and urban development projects; make town development of community security mechanisms are among plans the basis for long-term development of urban areas; the other strategies proposed related to urban environment. improve the legal basis for managing large urban regions For urban health, strategies include establishment of and urban corridors; facilitate research based policies and adequate urban amenities and improving environmental health programmes; institutionalize social accountability mechanisms conditions. between state and citizens. Strategies also seek strengthening Town Development Committees to implement New Town and 45. Urban Economy: Strategies related to urban economy Land Development Projects; and establishment of high are geared towards enhancing the contribution of urban powered committees or authorities as transitional measures areas to the GDP and strengthening the economic base of to undertake development of regional urban development urban areas. These strategies cover the aspects of economic and management, and creation of Special Purpose Vehicles development, investment and finance. The strategy seeks to (SPVs) with equity shares of municipalities to implement boost economic development by extending support in the upscale urban infrastructure and urban development projects formulation and implementation of local, provincial and in urban governance. regional economic development plan for urban areas in order to build competitiveness based on local, provincial and 49. Urban Land Management: Urban land management regional comparative advantages; promotion of urban strategies are oriented towards the development of an efficient regeneration programmes in historic core areas and the land acquisition and compensation mechanism and disaster affected urban centers; mainstreaming informal regularization of the urban land market. The strategies urban economy and alleviation of urban poverty. include creation of a judicious land valuation and compensation mechanism; price freezing upon the 46. Urban Investment: The investment strategy is based on government’s intent to acquire land; establishment of a land the assumption that national resource allocation for urban information system; land use controls through infrastructure infrastructure will be increased to at least NRs 9,300 per and environment thresholds; build incentives for preserving person from the present NRs 4,725 in 217 municipalities. critical agricultural land in line with Land Use Policy; provision Strategies include coordinated investment in urban areas of a legal basis for urban/rural land classification with involving all sectoral agencies including the private sector; periodic review for adequate urban reserve land; and phased investment for improving basic infrastructure services implementation of large scale land pooling, land banking in all municipalities; optimized sectoral investment on urban and land swapping schemes.

Key Points

 Analysis of existing and new municipalities portrays a grey picture of urban growth which is associated with critical issues and deep rooted problems. Chapter 1  Unbalanced growth, environmental concerns, deficit of basic infrastructures, unplanned physical growth, increasing urban poverty, weak financial and INTRODUCTION institutional capacity are some of the common features of these urban centres that are aggravated by insufficient investment in urban sector development.

 The existing urban form and function overshadows over technical rationale in declaring municipal status.

 159 new municipalities have recently been added, most of which lag essential attributes to become municipalities.

From top left in clockwise direction: Ghantaghar (Photo source: flickr.com, 2015). Clock Tower of Dharan (Photo source: flickr.com, 2015). Urban landscape of Kathmandu (Photo credit: Arun Poudyal, 2014). Urban landscape of Tansen Bazar (Photo source: flickr.com, 2015). Source: Fli

1.1 Urbanization Trends and Implications

Three mutually reinforcing transitions are underway in Nepal. differ markedly across ecological and development regions. A demographic transition that is resulting in more people The level of urbanization is highest in the hill region (21.7%) entering the labor force than are leaving it, a spatial transition compared to the Tarai (15.1%) and the mountains (2.8%). that is resulting from increased migration from the Among development regions,CDR has higest urbanization countryside to towns and cities, and an economic transition level of 23.5% (Table 1.1). Distribution of urban population resulting from the demise of the traditional subsistence as well as the level of urbanization is relatively low in the economy, declining contribution of agriculture to the GDP, MWDR and FWDR. and the search for new livelihood options. While increasing Physiographic and connectivity characteristics are important urban growth and urbanization is a consequence of these determinants of urbanization which result wide variation in transitions, the strategies pursued in the planning and the regional levels of urbanization. The level of urbanization management of urbanization will determine the direction and in the Kathmandu valley (three districts) and Pokhara valley pace of Nepal’s economic transformation. (Kaski district) comes to 96.97% and 79.52% respectively, 1.1.1 Urbanization Trends while it is only 18.28% for the rest of the hills. Similarly, inner Tarai valleys2 have a level of urbanization of 41.97% The level of urbanization1 in Nepal remains low but the pace compared to 38.94% for the rest of the Tarai. of urbanization has remained faster and is likely to remain so in the future. Only 17.1% of Nepal’s population resided in Urbanization picture is dominated by few large and medium 58 designated urban areas according to the 2011 census. cities. Kathmandu is the only city with over a million people. However, with the addition of 159 municipalities in 2014/ In terms of size class of urban centres, 14 urban centres (4 15, 40% of Nepal’s population reside in 217 designated in the hills, 10 in the Tarai) in 58 municipalities, and 2 urban areas.There have been fluctuations in inter-censal urban centres (in the hills) in the added 159 municipalities urban growth rates. Although the growth rate in the inter- with over 100,000 population have 31.24% of Nepal’s urban censal decade was 3.43%, the average annual growth population. The rest 68.76% inhabit in 201 between 1981-2011 has remained at a high rate of 5.3%. municipalities.This distribution reveals an urban hierarchy Urban rural growth differential in 2011 was 2.4%. that is truncated towards the lower end notwithstanding the fact that urban boundaries are notorious both for including Kathmandu valley is the hub of Nepal’s urbanization. Over large rural tracts on the one hand, and ignoring urban sprawl half of Nepal’s urban population reside in the hills and the beyond municipal boundaries, on the other. rest in the Tarai. The Central Development Region (CDR) including the capital region of Kathmandu harbors half of The fact that municipal status is a political decision rather Nepal’s urban population. The EDR and WDR share 17- than a technical one has also contributed to this picture. 18% of urban population each. Regional levels of urbanization Between 1991 and 2011 the number of municipal areas Table 1.1 Nepal:Urbanization Trends 1981-2011 Distribution of Urban Urban Places Level of urbanization Annual growth rates Population (%) Regions 1981 1991 2001 2011 1981 1991 2001 2011 1981 1991 2001 2011 1981-91 1991-01 2001-11

Mountain 0 0 2 2 0 0 1.4 1.1 0 0 2.6 2.8 1.4

Hill 9 13 27 27 51.7 51.2 53.2 54.6 6.9 10.3 16.7 21.7 5.8 7.1 3.7

Tarai 14 20 29 29 48.3 48.8 45.5 44.3 7.0 9.6 13.1 15.1 6.0 5.9 3.2

Nepal 23 33 58 58 100 100 100 100 6.4 9.2 13.9 17.1 5.9 6.6 3.4

EDR 7 9 14 14 20.8 20.3 19.4 18.3 6.3 7.8 11.7 14.3 5.6 6.1 2.9

CDR 7 13 20 20 52.7 54.4 49.7 50.2 9.6 14.9 20 23.5 6.2 5.7 3.5

WDR 4 5 12 12 11.9 12.4 16.1 16.9 3.6 5.6 11.4 15.5 6.3 9.5 3.9

MWDR 3 3 6 6 7.2 5.9 7.2 7.1 3.5 4.1 7.7 9.1 3.8 8.8 3.4

FWDR 2 3 6 6 7.4 7.0 7.6 7.4 3.4 7.1 11.2 13.1 5.3 7.5 3.1

1 Level of Urbanization is the ratio of urban population to the total population of that region. 2 Inner Tarai includes districts of Udaypur, Sindhuli, Makwanpur, Chitwan, Dang and Surkhet. Introduction

3 TION DISTRIBUTION OF URBAN SETTLEMENTS TION DISTRIBUTION OF URBAN SETTLEMENTS TION DISTRIBUTION OF URBAN SETTLEMENTS TION DISTRIBUTION OF URBAN SETTLEMENTS TION DISTRIBUTION OF URBAN SETTLEMENTS POPULA POPULA POPULA POPULA POPULA Introduction MAP: 1.1 MAP: 1.1 MAP: 1.1 MAP: 1.1 MAP: 1.1

4 inner tarai regions. The overall distribution of urban settlements indicates larger idors represent agglomeration of contiguous urban settlements along the north-south e urban centres with high concentration of municipalities along E-W highway and larger DISTRIBUTION OF MUNICIPALITITES AND TDCS Introduction MAP:1.2 MAP:1.2 MAP:1.2 MAP:1.2 MAP:1.2 Map 1.2 shows distribution of urban centres as municipalities, Town Development Committee, small towns and market centres. Corr Map 1.2 shows distribution of urban centres as municipalities, Town road and E-W highway, while valleys have been identified based on the catchment area of urban centres that lie in hill and road and E-W highway, Eastern region comparatively has mor concentration of settlements in the central region and along proximity E-W highway. distribution of TDCs

5 Table 1.2 Distribution of urban population by size class of urban centres and growth rates (58 Municipalities )1991 -2011 Growth Growth Size class 1991 Percent 2001 Percent 2011 Percent rate 1991- rate 2001- 2001 2011

> 200,000 421,258 (1) 18.4 671,846 (1) 20.8 1,699,954 (4) 37.6 4.78 9.73

100-200,000 245,253 (2) 10.7 598,461 (4) 18.5 738,455 (6) 16.3 9.33 2.12

50-100,000 517,419 (8) 22.6 788,937 (11) 24.4 1,182,522 (17) 26.1 4.31 4.13

20-50,000 746,551 (25) 32.6 1,032,245 (34) 32.0 831,127 (27) 18.4 3.29 -2.14

<20,000 357,006 (22) 15.6 136,390 (8) 4.2 71,763 (4) 1.6 -9.17 -6.22

Total 2,287,487 (58) 100.0 3,227,879 (58) 100.0 4,523,821 (58) 100.0 3.50 3.43

with less than 20,000 population has decreased from 22 to 23 municipal areas in general and 15 in particular have 4 while those with 50-100,000 population has increased experienced relatively rapid urban growth in the past decade. from 8 to 17 (Map 1.1). While the growth rate of urban In the last decade, 23 of the 58 municipalities experienced centers with over 200,000 population has jumped from 4.78 growth rates of above 3%. Among the major urban centres, to 9.73 in the last two inter-censal decades, the growth Bharatpur and Pokhara experienced over 5% average annual rate of small towns in particular has significantly declined growth, Kathmandu, and Butwal had growth (Table 1.2). rate of between 4-5% and Lalitpur and with above A characteristic feature of Nepal’s urbanization is high level 3% (Table 1.4). Many of the fast growing areas seen from of urban primacy. Both 2-city and 4-city indices show some the census are mostly medium and small towns. decline in 2011 compared to 2001 but the level of primacy Table 1.4 High growth urban areas (58 Municipalities ) remains high (Table 1.3). This is indicative of an inordinate 2001-2011 concentration of population in the primary city, Kathmandu. Growth City primacy computed for the development regions (with rate 2001- Tarai Hills Total 2011 major east-west and north-south highways connecting the Damak, Itahari, Thimi, Pokhara, regional urban centres) shows that with the exception of > 5% 7 Bharatpur Kirtipur, Birendranagar the central development region focused on Kathmandu, the , Butwal Dhangadhi, primacy index (both 2-city and 4-city) in all other regions 4-5% ,Byas, Tansen, 8 Tulsipur, Kathmandu has been steadily declining or relatively stable. In spite of Kalika, Lekhnath, the national dominance of Kathmandu the regional pattern , Gaur, > 3-4% ,Lalitpur, 8 of primacy remains more subdued and in a state of flux. Dhankuta Table 1.3 Urban primacy (58 Municipalities) 1981-2011 Total 10 13 23 Year Two city index Four city index Municipalities with over 100,000 population shown in bold.

1981 2.51 1.06 Established urban centres like Biratnagar, Birgunj, Dharan, Janakpur, Nepalgunj, , and Sidhdharthanagar show 1991 3.26 1.24 growth rates of between 2-3% (Map 1.3) (Annex 1). Urban

2001 4.03 1.38 densities are highest in Kathmandu valley and old Tarai towns. Only three municipalities of the Kathmandu valley 2011 3.79 1.19 (Kathmandu, Lalitpur and ) have urban densities High urban growth locations characterize Kathmandu valley, above 10000 per sq. km.Another two Kathmandu Valley towns Pokhara valley, Inner Tarai valleys and locations along major and have densities between 5-10,000. road corridors. The primary centre of Nepal’s urbanization Another 12, including Kirtipur and Banepa in the hills and is the Kathmandu valley which harbors 29% of Nepal’s total Birgunj, Biratnagar in the Tarai, have densities 2-5,000. A urban population while Kathmandu city alone harbors 22.2 total of 29 urban areas have densities between 1-2,000 while %. However, the recent addition of 159 municipalities makes a total of 145 urban areas have densities below 1,000.* the urban population of Kathmandu Valley 22.4% of total urban population and the urban population of Kathmandu Urban densities display the nature and character of urban

Introduction city alone 9.06%. 2011 census data reveals that areas and have a bearing on urban services and infrastructure.

* 6 This data does not include 26 municipalities added in 2015. Map 1.3 POPULATION GROWTH RATE OF URBAN SETTLEMENTS (58 MUNICIPALITIES)

Table 1.5 Urban densities of 191 Muncipalities* Table 1.5 Urban densities of 191 Muncipalities* Not accounting for migrants to urban areas from the same Density/Sq KM Tarai Hill Mountain Total district (which could be significant), a total of 37.7% were Less than 500 36 49 11 96 migrants to urban areas. In 2001, with the same number of

500 – 1,000 36 13 0 49 urban areas, ODB and foreign-born made up 30% (25.6%

1,000 – 2,000 20 9 0 29 ODB and 4.4 foreign born) of the total urban population. While other-district born urban migrants numbered around 2,000 – 5,000 4 8 0 12 8.3 lakh in 2001, they numbered 15 lakh in 2011. 5,000 – 10,000 0 2 0 2

Above 10,000 0 3 0 3 Nearly 77 percent of these migrants were from rural areas.

Grand Total 96 84 11 191 The proportion as well as volume of migrants to urban areas has clearly accelerated. The proportion of migrants is highest *This data does not include 26 municipalities added in 2015 in the Kathmandu valley districts in general and Kathmandu Migration is the largest contributor to urban growth and is in particular. In 2001 lifetime migrants made up 38.4% of likely to remain so in the future. Contributors of urban growth the urban population. The valley districts in 2011 had a are (i) natural increase of population, (ii) reclassification of total of 46% inter-district migrant population, 74% of which urban areas resulting in change in urban boundaries and were born in rural areas. Kathmandu district had the highest population, and (iii) migration. In fast growing urban areas percent (54.2%) of life-time migrants in Nepal. If intra- in-migration is often the major contributor. district migration to urban areas were to be accounted Migration to urban areas can be approximated by the district migrants would contribute over 60 percent of urban growth. level data on population in urban and rural areas by place of Reclassification could contribute an additional 10-15%. birth from the 2011 census. Accordingly, in 58 urban areas The major reasons for migration in the Kathmandu valley in 2011 those born in other districts (ODB) accounted for districts are study (26.4%), service (21.5%), dependent 34 percent of the native born population. A total of 3.7% of (15.8%) and marriage (15.6%). Also, 56 percent of life the urban population was foreign born. (Table 1.6). time migrants had been in the valley districts for over 6 Introduction years.

7 This rate is 59% for urban areas in general. Districts with Thirty-five percent of bank branches, 60% of bank deposits major urban areas have relatively high percent of inter-district and 44% of credit were also concentrated in the valley. life-time migrants compared to other districts. Districts with According to MoF, the three districts of the Kathmandu valley over 25% of life-time migrants include Chitwan, Kanchanpur, accounted for 42.6% of the total government revenue Kaski and Jhapa. Morang, Sunsari, Kailali, Rupandehi, collected under different headings in 2009/10. The valley Banke, Nawal Parasi have between 20-25% inter-district has roughly 10% of Nepal’s population and about 0.5% of life-time migrants. the land area. The picture that emerges is one of a highly Contribution of urban areas to national GDP is centralized urban system with an inordinate concentration significant.There are varying estimates of the contribution of economic and financial activities in the Kathmandu valley. of the urban economy to the country’s GDP. The World Bank, 1.2 Planning and Policy Context AusAid study in 2012 quoting MoF credited the urban 1.2 Planning and Policy Context economy of contributing 65% to the GDP. However, recently released GDP data for 2010/11 by the CBS shows a much Urbanization and urban development is influenced and more subdued picture. The urban GDP made up 33.1% of oriented by key policies of the state in sectors such as the national GDP (NPC/UNDP 2014). Eighteen districts with transport, agriculture, tourism, industry etc in addition to 32 urban places and 81% of the total urban population the policy pursued in the urban sector. A brief review of the made up 55.9% of the country’s GDP. The share of the extant policies provides the context for the national urban three valley districts in the GDP is 20%. In , urban development strategy. sector is estimated to contribute 62 to 63% to the GDP. 1.2.1 National Transport Policy 2001 1.2.1 National Transport Policy 2001 aims for There is an inordinate concentration of economic and development of sustainable urban transport system to improve financial activities in the Kathmandu Valley. A 2012 Survey social and economic development of the country. At the broad by the Nepal Rastra Bank estimated the value of economic national level, the Policy emphasizes on North-South activities of Kathmandu valley under two scenarios, based connectivity linking China and India—that may also serve as on an expenditure approach. The reference scenario (based an important trade and transit corridor between China and on NLSS III and 2011 census) put the share of Kathmandu India in the future. Apart from the present East-West Highway, valley to national GDP at 23.4%. Final consumption the Policy proposes Mid-Hill Highway in the Hills and Hulaki expenditure in the valley was estimated to be 26.1% of Marg in the Southern Plains of Tarai connecting east and national expenditure. The second ‘alternate’ scenario took west of the country. The Policy prioritizes connectivity to all into account field survey information as well as the estimated 75 districts of the country, and stresses on social and population of the valley. It estimated the valley’s contribution administrative parameters despite low density and lagging to the national GDP to be 31%. economic justification of connectivity investment in many The final consumption expenditure of the valley was estimated hinterland districts. The Policy conceives central and local to be 34.2% of the national and its share in capital formation road system. The central road system includes national was 15% of the national. The valley’s share in exports of highways and strategic roads consisting primarily of feeder goods and tourism services was 26% and 47% of the national roads—linking district headquarters, towns, and cities and its share in total imports was 19%. including its hinterland with the national highways. Table 1.6 Migration to urban areas, and Kathmandu Valley 2011 Areas/Districts Other district born Rural born as Urban born as Foreign born % of (ODB) as % of Native Not stated % of ODB % of ODB Total Population born

Nepal Total 14 .8 80.1 6.4 1. 8 13.5

Total Urban 34 .0 76.5 10.3 3. 7 13.2

Total Rural 11 .1 82.3 4.0 1. 5 13.7

Lalitpur 34 .9 68.1 16.4 2. 1 16.3

Bhaktapur 32 .5 71.3 14.0 0. 6 15.6

Kathmandu 51 .5 75.6 9.8 2. 7 15.2 Valley districts 46 .0 74.2 11.1 2. 3 15.4 Introduction

(Source : CBS 2012)

8 This falls under the ambit of the government. On the other fostering integrated approach in urban development.The hand, the local road system, which falls under the ambit of policy became the cornerstone in guiding the subsequent local bodies, includes district or arterial roads along with urban environment and governance programs such as Sec- the collector and neighborhood roads. The national highways ondary Towns Urban Environment Improvement Project and strategic roads are instrumental for establishing regional (STUEIP), Integrated Urban Development Project (IUDP), or inter-city connectivity vis-à-vis these have also led to and Urban Governance and Development Program (UGDP)— spontaneous growth of cross-road towns and settlements especially in terms of prioritizing project municipalities and along their alignments. channeling the investment.Already these three projects in- 1.2.2 National Agricultural Policy 2004 1.2.2 National Agricultural Policy 2004 sseeks clude 16 municipalities and investment of about USD 230 to achieve sustainable agricultural development by trans- million. STUEIP and IUDP have concentrated investment forming current subsistence agriculture system to commer- mainly on key regional cities of each development region, cial and competitive agriculture system. The policy empha- while UGDP is instrumental in channeling investment to the sis is on increasing agriculture productivity, creating the intermediate towns connected to these regional cities by foundation for commercial and competitive agriculture, and North-South Highways.These strategic investments to sec- conservation of natural resources. Apart from prioritizing tech- ondary cities and intermediate townsare expected to pro- nological input, research, institution building, and the policy .mote economic growth in the development region by creat- discourages non-agricultural activities in fertile agricultural ing and fostering exchange of trade, services and human land and aims to promote high value agriculture develop- resources between regional and intermediate urban ment pockets along the feasible locations of NorthSouth hubs.Despite these efforts, overall implementation of NUP Highway and Feeder roads and in the remote areas.To de- remains weak. This is attributed among other things to the velop such pockets, it seeks to promote integrated agricul- lack of comprehensive investment plans, inadequate invest- ture infrastructure services through private sector participa- ment on urban development; weak technical and financial tion. Well equipped modern whole-sale market facilities are management capabilities of the local bodies;and ineffective envisaged in and near the cities— where large number of institutional arrangements (fragmented organization struc- consumers reside. The Policy stresses on government pur- ture of central urban development agencies and local bodies chase of the locally grown food grains in the food deficit in the separate line ministries and lack of clarity regarding hilly regions. Fragmentation of agricultural land is also dis- roles and responsibilities).The NUP has not been able to couraged. Special programs are envisaged for marginal farm- link with the various sectoral plans and programs, and is ers having land less than half a hectare. deemed inadequate in terms of establishing and promoting inter-urban economic linkages on the one hand and between The Policy also seeks establishment of agricultural land bank. the cities and the surrounding hinterland on the other. For which, it aims to create land information system to facili- 1.2.4 Industrial Policy 2011 tate buyers and sellers of agricultural land including mak- aims for sustainable ing avail of credit facility to needy ones to purchase agricul- and broad based industrial development by fostering among tural land. It further aims for leasing of marginal public other things industrial productivity, local human and material land for community farming. These policies are expected to resources, competitiveness and comparative advantages. The have positive implications on preserving urban agricultural policy has prioritized agro-forest industry, construction land as well as promoting urban agriculture. industry, energy oriented industry, export promotion industry, and tourism industry. The policy has also emphasized on 1.2.3 National Urban Policy 2007 (NUP) is establishment of Special Economic Zones (SEZ), Industrial the principal document for guiding urban development in Village comprising of micro enterprises, cottage and small Nepal. The policy among other things aims for (i) balanced industries that support larger industry, and Industrial Land urban structure by channeling investment to backward re- Use Plan that contains industrial district, industrial corridor, gions—especially to regional cities and intermediate towns industrial cluster and industrial village. The policy proposes (ii) development of safe and prosperous urban centres by incentives for industrial investment along the Karnali Corridor. increasing resiliency against environmental shocks and Especially micro-enterprises are waived of all forms of stresses as well as by harnessing local economic develop- taxes.Income taxes are exempted to industries that are ment potentials including mobilization of local resources and established in the least-developed, un-developed and under- mainstreaming informal sector and (iii) effective urban man- developed classified districts. In addition, small, medium and agement through capacity development of local bodies, re- large industries which employ natives in their work force alizing appropriate legal and institutional arrangements and Introduction arefurther exempted from income taxes. This exemption is

9 increased if women, and disabled constitute 50 percent both in population and resource terms. The spatial framework of the work force. Investment on urban infrastructures is for urban development from a national and regional also exempted of income taxes for a designated period of perspective is not sufficiently articulated in the infrastructure time. Industrial policy is expected to have ramification on and resource development context. influencing especially regional urban system—as it • Urban development is manifest through unplanned informal encourages private investment to be channeled to urban growth and urban sprawl. underdeveloped regions in lieu of tax incentives. 1.2.5 Tourism Policy 2008 • There are wide deficits in basic urban infrastructure (roads, seeks to establish Nepal water supply, sewage & drainage, solid waste, energy, urban as a premier tourism destination through conservation and open space, basic physical amenities, housing etc) and promotion of natural, cultural, religious and historical quality benchmarking. heritages. The policy takes tourism as a basic industry. By • Urban environmental concerns are growing to critical levels linking eco-tourism and trekking with the rural-cultural due to air, land, noise pollution; urban transport issues, tourism, it aims to contribute to rural economy and reduce high fossil fuel consumption, land use incompatibility, public poverty. It stresses on identifying new tourism sites and space encroachment and growth of squatter settlements, investment on increasing accessibility (comprising of air, disregard for cultural heritage and aesthetics, and surface and water transportation) and partnerships with environmental risk mitigation and disaster resilience. private sector fordeveloping facilities and amenities (such as • Non-farm employment opportunities remain constrained in hotels, restaurants, shops, travel, tours, and information and the rural sector while they are expanding in and around the communication). Urban heritage, environment and vicinity of urban areas (World Bank 2012). There is a growing infrastructure have direct implications for tourism, while concern regarding urban employment generation and local tourism can provide the basis for urban employment and economic development strategies. income opportunities. 1.2.6 National Land Use Policy 2012 • Anticipated and rising poverty in urban areas as migration 1.2.6 National Land Use Policy 2012 seeks gathers momentum ag gravating the problem of housing and optimum utilization of land while preserving natural resources infrastructure to cater to this population. and cultural heritages, through classification of land and enforcement of land use control accordingly. The Policy • Weak institutional and legal framework and institutional encourages land consolidation as opposed to land and human resource capability for urban planning and fragmentation and it also emphasizes on the legislative basis management. for incentives and dis-incentive to preserve agricultural land. • Precarious urban finance and revenue base and capability Settlements are encouraged in the safer locations—which to mobilize resources in existing urban areas, and wide gap are hazard free and where infrastructure provisions become between urban investment needs, sources of financing and viable and compact settlements are prioritized as opposed to capability for implementation. Lack of coordinated national, scattered development. regional, municipal urban investment vision and plan.

1.3 NUDS: Rationale & Objectives • Poor urban data base and monitoring of urban developments. NUDS is expected to: 1.3.1 Rationale • Enhance the national urban policy vision and facilitate The economic, spatial and mobility trends in Nepal point periodic review and appropriate changes. towards the inevitability of increased urbanization and urban • Provide strategic directions for the Ministry of Urban growth in favored locations and regions. While urbanization Development. and urban growth appear inevitable, urban areas are beset with a host of critical issues related to urban development, • Define the scope of urbanization and urban development management and institutions. Both national/sub-national and and to that extent indicate the areas that logically come urban/municipal perspectives need to be brought to bear in under the ambit of the Ministry. dealing with urbanization and urban growth issues. The • Inform and facilitate sectoral activities of other agencies urban challenges that face Nepal provide the rationale for of the government that bear on urban development including the National Urban Development Strategy (NUDS): inter alia transport, agriculture, industry, trade, education

Introduction • The system and hierarchy of urban areas is unbalanced and health, environment, water and sanitation services, culture, tourism and local development.

10 With the promulgated in 2015, Nepal workshop focusing on key issues, strategies to address the is poised to move towards a federal system of governance issues, and key activities that form part of the strategies. which will have significant implications for urban growth The effort has been to encourage and facilitate the ownership and development. NUDS can be a guide to orient provincial of the urban development strategy by concerned and regional urban development processes and associated stakeholders. A series of regional and national workshops investment decisions in the new federal structure of were planned as the document went through the government governance. approval process. Overall policy guidance was provided by 1.3.2 Objectives the Steering Committee formed within the Ministry under the convenership of the Secretary of MoUD. The Steering (a) Develop and elaborate the medium/long term strategic Committee also facilitated inter-ministry and interagency vision of a desirable and realistic national/sub-national urban coordination in the strategy preparation process. The Working system based on existing trends and resource potentialities, Group serving as the advisory body to the Urban Development and proposed strategic initiatives. and Physical Planning Division (UDPPD) was headed by the Joint Secretary of the Ministry. The UDPPD is the main (b) Establish benchmarks and standards for urban division within the Ministry that is entrusted with the task of infrastructure, urban environment, urban planning and NUDS preparation. The UDPPD is further supported by the management, and urban governance. technical secretariat—created within the Division. The (c) Identify key issues and prioritized initiatives and investment Working Group comprises of the officials from the thematic (projects) required with regard to: sections of the MoUD and other agencies.

• Urban infrastructure The thematic consultants were guided and coordinated by • Urban environment the Team Leader—who in turn is liaised and coordinated by the Joint Secretary of UDPP Division. • Realizing comparative advantages based on resource potentials 1.5 Organization of the Report (d) Identify key issues with respect to investments for urban development and strategies to augment urban financing and implementation. This report is organized in four chapters:

(e) Suggest institutional framework and legal instruments to Chapter 1 sets the stage for the national urban development facilitate implementation and monitoring of NUP and strategy focusing on national urbanization trend and sectoral proposed urban development strategies. policies that have direct implications on urban development. It elaborates the rationale and objective of NUDS including (f) Suggest new approaches to urbanization and urban the process and methods employed in the preparation of the development in light of existing and emerging challenges of strategies. sustainability, increased resiliency and mitigation and adaptation to the effects of climate change. Chapter 2 presents the current status of urban development, with respect to urban land, form and density, infrastructure, 1.4 Methodology environment, economy, investment, finance, governance and national and sub-national urban system. Major issues related The NUDS is an outcome of an interactive, participatory to each theme are identified and a summary of status of process that sought to combineprocess both the knowledge acquired representative municipalities is presented by population size through the thematic consultants, and opinion and class. Urban Infrastructure Condition Index has been suggestions from MoUD, other sectoral ministries-agencies, computed, which attempts to evaluate the infrastructure civil societies including academic institutions as well as condition of 58 existing municipalities. aspirations of policy makers, political leadership and above Chapter 3 presents guiding principles and values adhered all, citizens. A series of thematic workshops were organized for formulation of strategies. It picturizes intended national to review current conditions, policy and programme initiatives, and sub-national urban systems. It sets out desirable and critical issues that need to be addressed with respect to conditions and standards/milestones with respect to the the theme. Chapter Two of this report draws mainly from the intended national and sub-national urban system as well as outcome of these workshops. Similarly, urban development thematic sectors and subsectors in urban development. strategies were formulated through an intensive participatory Introduction

11 Current deficits in the broad urban infrastructure sectors Chapter 4 presents desirable conditions, associated indicators, are assessed, future demand of the urban population is the urban development strategies and key activities for the projected and the total investment required to unleash the sectors and subsectors presented in Chapter 2, to attain the urban potential till the year 2030 is presented. NUDS has desirable condition. The strategies are comprehended by a prioritized the investment based upon city population size to master strategic framework that sets outcomes and outputs attain achievable investment goal. for next 5, 10 and 15 years.

Summary Nepal is one of the least urbanized countries of Asia, however municipalities having more than 4% growth rate. Migration its spatial, demographic and economic transition point is a major source of population influx, with 37.7% of urban towards inevitable future urbanization. Level of urbanization population either born in other district or foreign born, of has remained low, but the pace of urbanization has been in which 77% are born in rural areas. Increasing population rise, with inter-censal urban growth rate of 3.43%, 2.4% has not influenced density significantly or has lead to higher than that of rural areas. The urbanization trend of desirable urban form, as out of 217 total municipalities, the country between 1981-2011 shows that Central only 3 municipalities have density more than 100 ppha, and Development Region (CDR), including Kathmandu valley, more than 145 municipalities still have density less than 10 contains 50% of the total urban population. Across the ppha, a minimum criteria for declaration of municipality as ecological regions, urban population is concentrated in hill proposed by NUP. with 54.6% of total urban population, though Tarai has more numbers of urban centres. Both CDR and hill region The existing urban form and function depicts political show high level of urbanization of 23.5 and 21.7 respectively, overshadow over technical rational in declaring municipal while MWDR, FWDR and mountain region have despairingly status. As in 2014, 72 new municipalities were added, which low level of urbanization. do not fulfill the criteria of achieving the municipal status. Following the same trend, 87 new municipalities were added Inordinate concentration of urban population is depicted by later in 2015. Analysis of existing and new municipalities the level of primacy with Kathmandu city, harboring 9.06% portrays a grey picture of urban growth, which is associated of total urban population, as the city of national dominance. with critical issues and deep rooted problems. Unbalanced However, primacy index in other development regions is growth, environmental concerns, deficit of basic steadily declining and relatively stable. Growth rate of urban infrastructures, unplanned physical growth, increasing urban population has declined from 5.3% in 1991-2001 to 3.43% poverty, weak financial and institutional capacity are some in 2001-2011, which is mainly due to addition of new of the common features of these urban centres that are municipalities between 1991 - 2001. aggravated by insufficient investment in urban sector development. Nonetheless, existing growth rate is still more than 5% in major urban centres like Bharatpur and Pokhara, with 15 Introduction

12 Key Points

 The existing urban conditions are reflected through available basic data on urban infrastructure, environment, economy, governance, finance and Chapter 2 investment and through analysis of current nature and characteristics of urban land, densities and form. EXISITNG URBAN  Fragmented institutional arrangement, uncoordinated mechanisms between DEVELOPMENT MoFALD and MoUD and lack of technical expertise and capacity are the major concern of urban governance. CONDITIONS

 Two relatively integrated regional urban systems can be observed in the centre and in the east based on the flow of goods and services. However, the urban system in the mid and far-west is fragmented with weak links with their hinterlands.

Housing condition in urban areas. Photo source: www.flickr.com, 2014

2. CURRENT URBAN CONDITIONS 2.1 Urban Land Municipalities in Nepal are de facto urban areas. The As a result, land acquisition for any urban development municipal database is poor and a system of regular data initiative has been increasingly difficult. Land acquisition update and monitoring is yet to be institutionalized. Current negotiations with the landowners often falter owing to urban conditions are reflected through available basic data speculative price demanded by the landowners, absentee on urban infrastructure, environment, economy, governance, landlords, and indecision on the part of family members. finance and investment. Attempts have been made to give a The tendency to speculate land price is rampant as the sense of these conditions for selected municipalities prevalent Land Acquisition Act 1977 has no provision to freeze the price of land once the government expresses the representative of Nepal’s ecological regions by population intent for acquisition. Enforcement of time bound moratorium size categories. This admittedly provides only a partial picture in the project areas of Town Development Committees of the conditions in Nepal’s urban areas but raises a number (sanctioned by Town Development Act 1988) is the only of pertinent issues with respect to urban development. instrument that is currently available to the planning The nature and characteristics of urban land, urban densities, authorities. urban form, urban infrastructure, urban environment, urban Urban Land Market economy, urban investment and finance, and urban governance provide a background to urban conditions in Urban land market is largely unregulated—except for provi- Nepal. sions of building permit and to some extent enforcement of physical plans, building regulations, planning bye-laws, and 2.1 Urban Land sub-division control in some municipalities. Land market is informal—where landowners incrementally fragment and sell Existing Condition land. The potential land buyers and sellers meet mainly through a mediator or the network of mediators. There is no Land Tenureship formal land information system. Tendencies to keep land as an alternative investment and a hedge against inflation also Broad categories of land tenureship in Nepal are private add to land speculation. There is also a tendency to keep land, institutional (guthi) land, government/public land. prime urban land fallow for a long period of time for purely Private land is the most dominant form of tenureship. The speculative purposes. In many instances, information in land- full fledged concept of private land in Nepal was introduced ownership records and cadastral maps do not match. As a with the enactment of Land Act 1964 (2021)—which requires result information of land transaction is often dubious. Fur- land owners to duly register the land in the state’s land ther, the government does not guarantee the deeds of the ownership records and pay taxes to the state to acquire the land transaction process—putting the investment of land rightful ownership. However, the Act does not define what buyers at risk. These factors add uncertainty to the land constitutes the private property rights. Inferences from the market to such an extent that the location decisions of the law and practices indicate that the landownership rights buyers often do not reconcile with rational choices. include the right to acquire, sale, donate, mortgage, Land Fragmentation exchange, inherit, lease, use, and subdivide. Prior to the 1950s, land primarily belonged to the state; for which the Incessant land fragmentation is triggered by various factors: state possessed the right to sell or lease or grant the land. traditional inheritance, dual ownership of land, increasing Guthi land on the other hand is managed by the government multiple uses of land, and land subdivision regulation allowing created institution namely Guthi Sansthan. for very small plot size in places like Kathmandu Valley. This Land Acquisition and Compensation makes agriculture economically less attractive or profitable. Urban form is marked by residential sprawl in the outlying In 1961, for the first time, the law required due compensation areas—causing fast conversion of agricultural land of the periphery for urban, mainly built-up use. The conversion is to be paid for the acquisition of privately held raikar land by further accelerated by unhindered infrastructure extension. the state. Since then, compensation has been a major issue Demand of peripheral land, apart from its relatively cheaper in any government undertaking necessitating acquisition of price, is also pushed by limited supply of serviced land from private land. The compensation mechanism has been faulted the state sponsored land development projects. In most urban for inadequate valuation of land (much lower than the market centers, there is no provision of serviced land by the state. price), slow payment often requiring several years, and fear Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Private sector involvement in land and housing development Existing Urban Development Conditions Existing Urban Development Conditions of total displacement.

15 16 16 16 16 16 Existing Urban Development Conditions relevant authorities. lots andnarrowaccess—withoutplanningapprovalfromthe developers oftenresorttosmallareadevelopmentwith government ceilingonprivatelandholdings.Asaresult consolidate landparcelsandtheconstraintsof from difficultnegotiationwithmultiplelandownersto few largecitiesonly. Privatelanddevelopmentinitiativessuffer Organized housingandapartmentarelimitedtoa accounts foraverysmallpercentageofurbanlanduse. Major IssuesRelatedtoLand Major IssuesRelatedtoLand Zoning Regulations Zoning Regulations • for particularpurposesresulting inenforcementhurdles. • can beacquiredforgeneralgood ofthepublic. • Comprehensive Major IssuesRelatedtoLand Zoning Regulations are neithersystemicnoradequate. reasons, includingmigration.Effortstoaddresstheissues and openspaceinurbanareascontinuetomountforvarious grounds. Theimperativesofencroachmentuponpublicland are becomingdeprivedofpublicopenspacesandplay found tobeencroachedinvariousways.Thebuiltsettings settlements. Evenculturalsiteswithinthebuilt-upcoreare polluted, publiclandisencroachedandsquattedwithillegal planning bye-lawsarerampant.Asaresult,riversystems are notenforced.Violationsofbuildingregulationsand activities suchaswastedisposalattheneighborhoodlevel as apartmenthousings.Standardswhichcanregulate Assessment (EIA)arelimitedtoprimarilylargerprojectssuch Environmental Examination(IEE)andImpact density andlanduse.EnvironmentalStandardssuchasInitial Building Regulationsregulatebuildingbulkonlyandignore and landuseinconjunction–arelacking.Thecurrent regulate buildingbulk(length,breadthandheight),density Major IssuesRelatedtoLand Major IssuesRelatedtoLand Zoning Regulations Zoning Regulations in urbanareasSource:CBS,2011 Fig 2.1:%Distributionofagriculturehouseholdswithlandbysize ‘Ownership overland’understood asthe‘righttouseland’ Price speculationevenbefore project isinitiated—tedious Absence ofthenotion‘eminentdomain’inwhichland

Zoningregulations

and controls—which 2.2Urban 2.2Urban 2.2Urban 2.2Urban 2.2Urban sharing ofurbandevelopment. real valueofinfrastructuredevelopmentandpromotesbenefit • • the enforcementofbyelaws. • environmental standards. • of servicedland. • • system. • timely. • negotiation withunclearprocessoflandacquisition. remains fraught withdifficulties.(Annex2.a and 2.b) infrastructural developmentin lowdensitymunicipalities development inagriculture land.Also,prioritizing reflected byprevalenturban sprawalandhaphazard pattern andformdonotcontain desirabledensity.It is with2.57ppha. Thecurrenturbangrowth is highestforKathmanduwith362.24pphaandlowest municipalities withover1lakhpopulationsize.Thedensity size oflessthan20,000.Itincreasesto66.66pphafor density is16.56pphaformunicipalitieswithpopulation increases withthepopulationsizeofmunicipality. The In the58oldmunicipalitiesaveragewardwisedensity ppha. Most ofthenewmunicipalitieswillhavedensitiesbelow10 municipalities withward-wisedensitiesinexcessof200ppha. 50 ppha.BhaktapurandKathmanduaretheonlytwo (including oldestablishedurbancentres)havedensitiesabove 20 ppha,14havebetween20-50andonly11 etc.15municipalitieshavedensitiesbetween10- rural areassuchasKamalamai,Dasarathchanda,Dipayal, These includemunicipalitiesthatincorporatelargetractsof out ofthe58municipalitieshavedensitiesbelow10ppha. wardwise density(ppha,personsperhectare)showsthat18 concentration anddispersalof Wardwise densitiesinurbanareasgiveanideaofthe and standardsofurbaninfrastructure,facilitiesservices. Urban densitieshaveabearingontheprovision,distribution Limited landdevelopmentprojectsandinadequatesupply Absence ofcapitalgainstaxmechanismthatcapturesthe Weak regulatoryandenforcementmechanismsincluding Gradual disappearanceofagriculturalland. Land fragmentationandencroachmentonpublicland. Compensation forlandacquisitioninadequateandnot Informal urbanlandmarketwithnoinformation Absence ofLandUseControlsandaccompanying Densities Densities Densities Densities Densities urbanpopula tion. Average ALLEY) ALLEY) ALLEY) ALLEY) ALLEY) TION DENSITY DISTRIBUTION (V TION DENSITY DISTRIBUTION (V TION DENSITY DISTRIBUTION (V TION DENSITY DISTRIBUTION (V TION DENSITY DISTRIBUTION (V POPULA POPULA POPULA POPULA POPULA Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions MAP 2.1 MAP 2.1 MAP 2.1 MAP 2.1 MAP 2.1

17 18 18 18 18 18 Existing Urban Development Conditions

MAP 2.2 POPULATION DENSITY DISTRIBUTION (CORRIDORS) Table 2.1 Average Ward-wise density of cities of different size-class (58 Municipalities) Population size Average Ward-wise Density (PPHA) 2011

Below 20,000 16.56 20,000 - 50,000 24.88 50,000 - 1,00,000 39.02 Above 1,00,000 66.66

In contrast, the periphery is usually found to consist of single 2.3 Urban Form family detached residential buildings. This low-density residential sprawl to the periphery, which is becoming a regular sight, is gradually diminishing the stock of valuable Evolving urban forms are becoming increasingly disorganized. agricultural land. And the provision of infrastructure services It is mixed with incompatible land uses, and declining level is also limited and sub-standard. The access is found to be of amenities such as open-spaces and parks as well as irregular with small right of way and piped water supply is infrastructure services. Neighborhood environment both generally lagging. social and cultural have come to be affected as a result.

In towns and cities, which were evolving throughout the 2.4 Urban Infrastructure history, the traditional core consisted of a densely built area comprising of narrow streets and traditional load bearing 2.4.1. Water Supply masonry buildings. In newly emerging townships, however, Coverage such cores are found to be either small or non-existent. In townships which are spontaneously built along the highways, According to the water, sanitation and hygiene status report 2011 basic water supply coverage is 80% nationally, 94% the cores are marked by a dense ribbon development. The in urban areas and 72% in rural areas. urban expansion is then usually found to radiate from the center to periphery along the arterial road or along the However, 2011 NLSS data shows that only 49.3% of urban connector road that has branched out from the highways. households have access to piped water (Fig 2.2), compared Most towns are generally found to have single core. However, to 45% for the country as a whole. Other sources of water a large urban agglomeration such as the Kathmandu Valley are covered and open wells and other unreliable sources. and emerging urban corridor along the major highway corridor The provision of piped water in urban areas varies consider- of tarai has multiple cores. These large urban region and ably by regions. In Kathmandu Valley 72% of households corridor are found to extend in a radius of more than 15-20 have access to piped water, and 10.1% have access to other km. The high density of the core is found to gradually decline sources (Fig 2.3). In other urban areas in the Hill region 81.2% of households have access to piped water. In urban towards periphery surrounded by a vast expanse of agriculture Tarai 32.9% of households have access to piped water and dominated rural area. 66% use covered wells. The access to piped water decreases The traditional cores in many instances are however found drastically for the poorest quintile, where only 6.6% have to be quickly gentrifying with the newly built reinforced access to piped water in their house. concrete buildings that tend to be systematically replacing the traditionally built masonry structures of wood, brick and stones. In ascending tendency, tall buildings occupied either by multiple families or by businesses and offices have become the land use norm. In the large city like Kathmandu, the land use functions are becoming specific and specialized. Banks and financial institutions have now come to locate at the center, while businesses have come to locate in its surrounding—especially along the key arterial roads. Consequently, parking and congestion have come to be critical concerns at the core. Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions

Fig 2.2: % Access to basic services in urban households, Source CBS 2011

19 20 20 20 20 20 Existing Urban Development Conditions Quality Quality Quantity Quantity dry seasonand150MLDinthewet(Table 2.2) rehabilitation or condition, otherseitherneedminorormajorrepair, of thepiped-watersupplysystemsareinwellfunctioning (46%) consumelessthan25lpd(CBS,2005).Only17.9% 44 lpdisthirtysixpercent(36%)andforty 18 percentinKathmandu. Householdsconsuming 25to Households consuming45lpdormoreaccountedforonly 150 literspercapitaday(lpd). water requirementaccordingtoWHOStandards,is112 35 lpdfromvarioussourcesincludingpipedwater. Percapita (MoUD, 2013).Average waterconsumptionisestimated at and wellasalternativesources,whichissupplying50MLD People areforcedtoseekforprivatevendors,deepboring municipalities reveal E-colibacteriain80%of thesamples. example, samplesurveyofsource, reservoirsandtapsin28 contamination eitheratsource, outlet ortransmissionlevel.For unreliable andinconsistentquality ofdistributedwaterand (MoPPW, 2011).Water supplyingeneral ischaracterizedby NDWQS hasnotbeenimplemented intheurbanareas liters quantity. InKathmandu,thewaterdemandis350million situation ofKathmanduvalleyillustrateswelltheissues Water supplydataforallurbanareasisnotavailable.The source ofdrinkingwater. unsatisfactory. IntheTarai wellsandtubewellsareamajor situation varieswidelybymunicipalitiesbutremainslargely Quality Quantity Quality Quality Quantity Quantity Fig 2.3:SourcesofdrinkingwaterinurbanareasSource:CBS,2011 Fig 2.3:SourcesofdrinkingwaterinurbanareasSource:CBS,2011 Fig 2.3:SourcesofdrinkingwaterinurbanareasSource:CBS,2011 Fig 2.3:SourcesofdrinkingwaterinurbanareasSource:CBS,2011 Fig 2.3:SourcesofdrinkingwaterinurbanareasSource:CBS,2011 Supply - private tankers tankers private Supply - Supply boring- deep KUKL Supply from Water Demand (in million lpd ) T T T T T able 2.2 able 2.2 able 2.2 able 2.2 able 2.2 per day(MLD),butKUKLissupplyingonly90MLDin Water SupplyinKathmanduValley reconstruction (source:KUKL).Watersupply

10 40 150 350

. Institutions Institutions Major Issues Major Issues billion ofinvestmentperannumnationally. (MoPPW, 2011). of aboutRs.3,500isrequired.ThisequaltoRs.7.5 access towaterbytheyear2017,apercapitaexpenditure sanitation servicesandmeetthenationalgoalofuniversal is aboutRs,1,700.Inordertoprovidethebasicwaterand Current realpercapitabudgetallocationfordrinkingwater wells werecontaminatedwithColiforms. Kathmandu, 33%ofdeeptube-welland44%shallowtube of tapswerealsohighlycontaminated(ENPHO,2009).In microbial risks.Inaddition,64.8%reservoirsand58.6 Of the174watersources,68.9%werefoundtohave unreliable qualityofwatersupply managed bylocalWaterUsers’Committees. the beneficiaries.Thesewatersupplysystemsarebeing towns since2000.BirendranagarandItahariarealsoamong providing financialassistancetotheemergingandsmall Project (STWSSSP)underADB’sassistancehasbeen Besides, SmallTowns Water SupplyandSanitationSector Dharan municipalities. established inBharatpurandHetaudaproposed Similar WaterSupplyManagementBoardshavebeen will takeoveritsownershipandmanagementfromNWSC. assistance. OncethesystemcomesintooperationKVWSM carried outinthesemunicipalitiesthroughADB’sfinancial The expansion,upgradationandintegrationworksarebeing Banepa andPanautiMunicipalities. established tomanagewatersupplysystemforDhulikhel, Water SupplyManagementBoard(KVWSMB)hasbeen regulatethe watertariffinthecountry. Similarly, KavreValley Commission hasalsobeenestablishedtomonitorand NWSC fewyearsback.AseparateNepalWaterTariff Fixation Management Boardwhichhastakenovertheownershipfrom lease contractfor30yearsbyKathmanduValleyWaterSupply entrusted fortheoperationandmaintenanceofsystemunder example :KathmanduUpatyakaKhanepaniLtd.(KUKL)is specific municipalityorinaclusterofmunicipalities.For by independentwatersupplymanagementboardinthe in manyurbanareasofNepalhasgraduallybeensubstituted the currentownerandoperatorofwatersupplysystem decade.Nepal WaterSupplyCorporation(NWSC)whichis has beenundergoingrestructuringforthelastone The institutionalarrangementofwatersupplyinurbanareas • Institutions • Major Issues Tarai towns Institutions Institutions Major Issues Major Issues Insufficient accessandquantity, andunacceptable Poor coverage of pipedwatersupplywithhuge gapin Table 2.3 Water supply situation in selected municipalites by population size

Less than 50,000 Pop (Small) 50- 100, 000 Pop (Medium) More than 100,0 00 Pop (Large)

Indicators Dhulikhel Hetauda Triyuga Nepalgunj Dharan Bhimdatta Kathmandu

Access to piped water 4 8% 34% 12. 1% 66.4 % 23 .1% 29% 98.9% 21.9 % 85 % supply Water treatment F F F NF F F NF NF F system Water 73.8 107.6 consumption N/A 62.3 lpcd N/A lpcd N/A 128 lpcd lpcd N/A 35 lpcd per capita F – functional, NF – non-functional (See Annex 3) • Lack of long term perspective and planning for sustainable In general, there is no segregation between domestic and water supply in light of the standards set by the government industrial waste, which are directly connected to storm water drains. • Lack of an integrated institutional system for water supply Treatment Facilities • Gap between policy and standards, provision and implementation. None of the municipalities have properly functioning waste • Achieving cost recovery in urban water supply systems water treatment system. Only Kathmandu has five municipal 2.4.2 Sanitation waste water treatment plants of which three are non- functional and one is partially functional. The operating one at Guheshwori has high operating cost and doesn’t operate According to WSHSR 2011 sanitation coverage is 78% in during load shedding hours. There is a wide difference in urban and 37% in rural areas. However, recent data (CBS, the sanitation situation among municipalities. Larger 2011) show that only 56.1% of urban households are covered municipalities have better access to toilets but access to by sanitation system compared to 8.5% in rural areas. In sewerage is very low in most municipalities. Waste water urban areas, 88.2% have toilets in their households, treatment systems are non-existent or non-functional. compared to 47.4% in rural areas. Access Institutions

In Kathmandu Valley, 98.1% of household have access to In 28 large municipalities Nepal Water Supply Corporation sanitary system and 99.3% have toilet (Table 2.4). In urban (NWSC) is responsible for sanitation. In smaller towns, Other Hills, sanitary system coverage is 41.6% and 81.2% Department of Water Supply and Sanitation (DWSS) is the households have toilets. In Urban Tarai, sanitation coverage responsible agency. In others the responsibility rests on the drops to 33.2% and 79.3% of households have toilets. municipalities. There is little coordination between NWSC Access to sanitary system for the poorest quintile is a mere and the municipalities. The major institutional problem in 6.6% and only 22.8% have toilets in their household (NLSS, water supply and sanitation is weak and fragmented planning 2011).Drainage is a major problem in low-lying Tarai towns and programming among inter and intra ministerial agencies in particular Nepalgunj, Siddharthanagar, Janakpur, and consequent lack of clear responsibilities and Biratnagar and Birgunj municipalities. coordination.

Table 2.4 Sanitation situation in selected municipalities by population size Less than 50,000 Pop (Small) 50-100,000 Pop (Medium) More than 100,000 Pop (Large) Indicators Dhulikhel Ratnanagar Lahan Hetauda Triyuga Nepalgunj Dharan Bhimdatta Ktm

Access to toilet 63% 94% 25% 96.6% 64.7% 92% 90.1% 67% 95.1% Access to sewerage system 25.9% 1.2% 0 15 % 0 23% 0 5.7% 98.1% Waste water treatment Y Y N Y N N N N Y Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions system Existing Urban Development Conditions Existing Urban Development Conditions

21 22 22 22 22 22 Existing Urban Development Conditions W W 2.4.3 SolidW 2.4.3 SolidW Major Issues Major Issues ties isestimated tobe62%(ADB,2013). On average,thecollectionefficiency amongthemunicipali- towns andisbelow50%inseveral smallermunicipalities. lection efficiency, itrangesbetween70%and 90%inmajor In termsofcol- 0.6% inthepoorestquintile(CBS, 2011). which dropsto19.4%inUrban Tarai areasandplummetsto urban householdhaveaccesstogarbagedisposalsystem, waste generationinNepal.Intermsofaccessibility, 42.7%of tons perdayor524,000yearofmunicipalsolid municipalities was0.317kgpercapitaday. Thisis1,435 In 2012theaveragemunicipalsolidwastegenerationin58 Collection municipalities. There isagreaterpotentialtoreducewasteatsourceinthe waste) couldbeeitherreusedorrecycled(ADB,2013). of institutionalandcommercialwaste(excludingorganic than 25%ofhouseholdwasteandamuchhigherproportion The householdwastecompositionsurveyrevealedthatmore and environmentalimpactsofwastemanagement. Composting ofthiswastecansignificantlyreducethecost 66% ofthewastegeneratedisorganic(ADB,2013). The potentialforusingsolidwasteasaresourceishigh, financial aswelltechnical. by allurbanareasofNepal.Thechallengesareinstitutional, Solid WasteManagement(SWM)isamajorchallengefaced to thecoremarketarea. • functional; resultingindirectdischargeofsewertoriver. • with surfacedrain. • towns. • W 2.4.3 SolidW Major Issues W W 2.4.3 SolidW 2.4.3 SolidW Major Issues Major Issues Fig 2.4 Fig 2.4 Fig 2.4 Fig 2.4 Fig 2.4

Lack ofsurfacedrainageinurbanareas,existingarelimited Sewerage systemispresentinfewtowns,mostlycombined Households withoutprivatetoilets,withproblemsacutein Waste watertreatmentplantsareeithernotinplaceor aste asSource aste asSource aste asSource aste asSource aste asSource : DrainageprobleminJanakpurandSiddharthanagarSource:DUDBC : DrainageprobleminJanakpurandSiddharthanagarSource:DUDBC : DrainageprobleminJanakpurandSiddharthanagarSource:DUDBC : DrainageprobleminJanakpurandSiddharthanagarSource:DUDBC : DrainageprobleminJanakpurandSiddharthanagarSource:DUDBC aste Management aste Management aste Management aste Management aste Management

Disposal Disposal Fig 2.5 Fig 2.5 day Fig 2.5 • • • • Box 2.1:UrbanSolidWaste Generation (ADB, 2013). and roadsidedumping,ispracticed by45municipalities planned todate.Opendumping, whichincludesriverside municipalities, and14municipalities havenolandfillsite and sanitarylandfillsareyet tobeidentifiedbymany waste dumping.Siteforconstructionoftreatmentfacilities Itahari, BhaktapurandGorkha)arepracticingcontrolled sanitary landfillsites,and5(Ratnanagar, MadhyapurThimi, Lalitpur, Dhankuta,GhorahiandTansen )haveconstructed and roadsideareas.Sixmunicipalities(Kathmandu,Pokhara, still dumptheirwasteinopenspacesthatincluderiverside spaces anddumpingsites.Forty-fiveoutof58municipalities The collectedwasteismostlydumpedincrudeformopen Source: (SWMTSC,2012) • Disposal Fig 2.5 Fig 2.5 Disposal Disposal Hotel/RestaurantWaste:5.7kg/hotel/day OfficeWaste:2.5kg/office/day SchoolWaste:1.4kg/school/day ShopWaste:1.4kg/shop/day Average HouseholdWaste GenerationRate0.16kg/person/ : OpenlydumpedsolidwasteinNepalgunj.Source:DUDBC : OpenlydumpedsolidwasteinNepalgunj.Source:DUDBC : OpenlydumpedsolidwasteinNepalgunj.Source:DUDBC : OpenlydumpedsolidwasteinNepalgunj.Source:DUDBC : OpenlydumpedsolidwasteinNepalgunj.Source:DUDBC

Table 2.5 Solid waste collection in selected municipalities by population size

Less than 50,0 00 Pop (Small) 50-100, 000 Pop (Medium) More than 10 0,00 0 Pop (Large)

Indicators Dhulikhel Ratnanagar Lahan Hetauda Triyuga Nepalgunj Dharan Bhimdatta Ktm

Solid Waste 45% 62.5 % 2 6% 40.9 % N/A 39.7 % 25.6% 5. 1% 9 0.5% Collection

Sanitary Land 0 0 0 0 0 0 0 0 1 Fill Site

Municipal Y Y Y Y 0 Y Y N/A Y waste section Solid waste collection rate varies significantly among municipalities. Some do not even have municipal waste management section. Financing At the Ministry level, the task of SWM falls under Ministry of All municipalities are involved in managing solid waste on a Urban Development, however the governing body that is the daily basis, although their level of involvement and their council is under the Ministry of Federal Affairs and Local institutional capacity vary significantly. Well-established Development. There are training programs for SWM staffs in municipalities such as Kathmandu, Lalitpur and Bhaktapur less than 50% municipalities. Among these only 7% have separate sections dealing with waste management and municipalities provide regular capacity building training to have invested substantial resources in SWM, while smaller their SWM staffs, and 75% do so occasionally. Only 55% of and newer municipalities such as Madhyapur Thimi and municipalities reported that they have annual plan for Kirtipur have very limited operations and until recently they SWM.Only 33% and 38% municipalities have formulated did not have any unit within their organization to deal with short-term and mid-term/periodic plan for MSWM (ADB, SWM. Kathmandu Metropolitan City and Bhaktapur 2013). Municipality spend about Rs 200 per resident per year for Initiatives SWM services but smaller municipalities such as Madhyapur Thimi and Kirtipur spend less than Rs. 10 per resident per Some municipalities have introduced innovative approaches year on SWM. Kathmandu and Bhaktapur collect more than (private sector participation in Biratnagar, household recycling 75 percent of the waste generated in their cities, while in Hetauda and composting in Bhaktapur). In Kathmandu Madhyapur Thimi and Kirtipur collect less than 40 percent. Valley as well several good initiatives such as door-to-door collection through community organizations has been In general, about 10% of the total municipal budget is spent introduced. The challenge is to sustainably replicate these on SWM. “The municipalities spend nearly 60–70% of the best practices, build institutional capacity and develop simple total SWM budget on collection and street sweeping, 20– and cost effective systems to ensure that SWM systems are 30% on transport, and the rest on final disposal. These financially sustainable. figures show the need for reducing collection and street Policy Context sweeping costs through more efficient management, and allocating more for safe and effective final disposal” (ADB, The main legislation under which municipalities function is 2013). the Local Self-Governance Act, 2055 BS (1998) & Institution Regulations, 2056 BS (1999). Solid waste management specifically is governed by the Solid Waste Management Act Although SWM is a very important service that requires 2068 (2011) which seeks to arrange for the systematic and substantial human and financial resources, many effective management of solid waste by minimizing the solid municipalities are not able to provide adequate resources waste at source and reusing, processing or proper disposing due to financial constraints. Furthermore, often due to of the solid waste with the objective of minimizing the adverse technical and managerial limitations, the available resources effects of solid waste on public health and environment. are not efficiently utilized. Many municipalities still lack SWM The act mandates the local body for constructing landfill Section. Of the 58 municipalities 17 do not have sites, monitoring the compliance of specified standards and Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions designatedsection to look after SWM (ADB, 2013). Existing Urban Development Conditions Existing Urban Development Conditions carrying out environmental protection activities.

23 24 24 24 24 24 Existing Urban Development Conditions Box 2.2:UrbanDevelopmentProjects Box 2.2:UrbanDevelopmentProjects Issues andOpportunities Issues andOpportunities MAP 2.3 MAP 2.3 for varioustypesofwrongfulacts. strategy, clarifyresponsibilitiesandlistfinestobecollected MAP 2.3 the formofgrantsandloans.Themapshowsconcentration funded bythedonoragencieslikeADBandWorldBankin urban centres.Theseprojectsarecompletelyorpartially level toimproveenvironmentandlivingconditionofthe Map 2.3Illustratesprojectsimplementedatmunicipality • issues andopportunities: management inurbanareas(ADB2013)revealsthefollowing A comprehensiveassessmentofthestatesolidwaste The guidelines have developedseparateguidelinesforwastemanagement. Municipal by-lawsandtwomunicipalities(DharanItahari) suit theirneeds.Fourmunicipalitieshavedeveloped regulations, municipalitiescanhoweverdevelopby-lawsto According totheLocalSelf-GovernanceActandits Box 2.2:UrbanDevelopmentProjects Issues andOpportunities composting andlandfilloperations. and technicalguidelinesonissuessuchasorganic MAP 2.3 MAP 2.3 Box 2.2:UrbanDevelopmentProjects Box 2.2:UrbanDevelopmentProjects Issues andOpportunities Issues andOpportunities Policies, strategiestoguidelocalbodiesforeffectiveSWM, LOCA LOCA LOCA LOCA LOCA TION OFURBANDEVELOPMENTPROJECT TION OFURBANDEVELOPMENTPROJECT TION OFURBANDEVELOPMENTPROJECT TION OFURBANDEVELOPMENTPROJECT TION OFURBANDEVELOPMENTPROJECT describe themunicipalwastemanagement projects. Far-western regionisstillvoid ofanyurbandevelopment under ADBgrant,whichisinNepalgunjmunicipalitywhile regions. Mid-westernregionhasonlyoneprojectimplemented of projectsintheCentral,WesternandEasterndevelopment bodies. and consensusbuilding. • • • • • • • dissemination ofbasicdata. dumping andburning. Cost recoveryofSWMthroughimprovedlevelservices. Focus onmanagement,monitoring,updatesand Promote reduce,reuse,recycle,refuse. Seek public-privatepartnership,and Seek integratedsolidwastemanagementandstopopen Strengthen institutionalandtechnicalcapacityoflocal Enhance publicawareness,participation,consultation Box 2.3: Large Scale Infrastructures

The map identifies projects that influence regional and local contribute to increased promotion of export. Likewise, development of the areas in its vicinity. It comprises of Special NepalIntermodal Transport Development Broad has Economic Zones (SEZ) (7), Inland Clearance Depots (ICD) operationalized four ICDs in Birgunj (rail based), Bhairahawa, (4), Integrated Check Posts (ICP) (4), Regional International Biratnagar and Kakadvitta (road based). It aims to reduce Airports (4), Water Supply Projects and major transport cost, increase competitiveness in imports and exports hydropower projects. through reduced overhead costs and open opportunities to private sector operators. SEZ refers to the commercial areas specially established for the promotion of foreign trade. Moreover, SEZs are specifically Similarly, there are four ICPs identified along Nepal-India delineated enclaves treated as foreign territory for the purpose border at Birgunj, Biratnagar, Bhairahawa and Nepalgunj. of industrial, service and trade operations, with relaxation Also, four regional international airports have been proposed incustoms duties and a more liberal regime in respect to in the Central and Western region, of which Pokhara, levies, foreign investments and other transactions. Feasibility Bharahawa and are in the process of being study of 7 out of 13 proposed SEZ locations have been materialized.The concentration of these existing and proposed completed,of which Bhairahawa and Simara are in infrastructures in the Central and Western development construction phase. Most of the indentified SEZs are located regions depicts possible future urban growth in the regions. at the proximity of the major urban areas along Nepal-India It is quite evident that the Far and Mid Western Regions border. With SEZ in place, it is meant to attract private sector require more investments in future for balanced growth as investment in industrial and business sector, which will envisaged by NUP. MAP 2.4 LOCATION OF LARGE INFRASTRUCTURES PROJECT Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions

25 26 26 26 26 26 Existing Urban Development Conditions Table 2.6 Ownership Ownership Demand Demand Dwelling Size Dwelling Size 2.4.4 Housing 2.4.4 Housing (Table 2.9) with around900,000newconstructionrequiredby2023. of housingunitsrequiredinurbanareaisaround1,364,000 As perNationalShelterPlan2013/14,theprojectednumber to 1224sqftincaseofKathmanduValley. (Table 2.8) average areaofhousingplothasincreasedfrom1162sqft slightly lowerthanthatofotherurbanareas.However, the to 555sqft.Average dwellingsizeinKathmanduValley is 04. IncaseofKathmanduValleyithasdecreasedfrom589 area hasdecreasedfrom584sqftto571since2003/ According toNLSS2010/11averagedwellingsizeinurban houses and40.2%ofhousingunitswererented. 10.45 lakhhouseholdsinurbanareasonly56.8%hadown According totheNationalHousingPlan2013/14outof increased by15%(Table 2.6) 04 and2010/11.Rentalhouseholdsmeanwhilehave been 14percentdeclineinownerhouseholdsbetween2003/ 04. ThesituationinKathmanduvalleyshowsthattherehas own houseinurbanareas,adeclineof3percentfrom2003/ their ownhouse.However, only69percentresideintheir 11 showsthatnearly90percentofhouseholdsresidein on NLSS2010/11.Thehousingoccupancystatusin2010/ into fourtypes:owned,rented,rentfreeandothersbased The ownershipofhousingunitshasbeenbroadlyclassified Ownership Demand Dwelling Size 2.4.4 Housing Ownership Ownership Demand Demand Dwelling Size Dwelling Size 2.4.4 Housing 2.4.4 Housing T T T T T TeraiUrban- OthersUrban Hills KathmanduUrban Valley Urban Nepal Rural Urban Nepal Households able 2.7 able 2.7 able 2.7 able 2.7 able 2.7 OwnershipofHousingUnits,2013/14 OwnershipofHousingUnits,2013/14 OwnershipofHousingUnits,2013/14 OwnershipofHousingUnits,2013/14 OwnershipofHousingUnits,2013/14 Table DistributionofHouseholdsbyOccupancyStatus

,7,2 9. 63 . .3 1. 0.4 3 1. 92.1 ,722 6.3 3,77 4 0.6 575 0,45, 1 85.3 297 4,23, 5 12.8 Owner 0.%1. 47 .% 0.1% 4.7% % 14.6 .7% 80 % 33.1 .0% 1.4% 3 % 62.5 .3% 77 0.5% 2.9% % 48.5 .1% 48 % 5.4 .5% 2 0.5% % 91.6 .2% 69 0.3% 2.2% % 7.8 .7% 89 Renter Renter 26.5 % % 26.5 17.9 % % 17.9 20 10/11 200 3/04 3/04 200 10/11 20 Own Own 6856.8 Rent freeRent .%4.0% 3.9% Land ServicingandDevelopment Land ServicingandDevelopment Housing T Housing T Dharan, Kamalamai,Dhulikhel,etc.(MoUD,2013) pooling projectsareongoinginNepalgunj,Bharatpur, 10,000 housingplots.ApartfromKathamanduValley, land projects involves7,961ropanisoflandtomanageadditional of landgenerating12,160housingplots.Ongoing11 implemented withinKathmanduvalleywith5,098ropanies in theurbanareas.Twelve landpoolingprojectshavebeen has notbeenabletofulfillthedemandofhousingplots development inthelastoneandhalfdecade.However, it Land poolinghasflourishedasanefficienttoolforland in squattersettlements. municipalities likeLahanhaveahighproportionofpopulation municipalities suchasDharanandBhimdatta,small Shelter situationisselectedmunicipalitiesshowsthatlarge (MoUD, 2013). sector inhousingotherurbanareasremainslimited. Kathmandu Valleysince2012.Theinvolvementofprivate 6113 housingunitsarebeingimplementedwithin 62 housingprojects(GroupHousingandApartments)with emerged asanactiveplayerintheurbanhousing.Around In thelastoneandahalfdecadeprivatesectorhas Land ServicingandDevelopment Housing T Land ServicingandDevelopment Land ServicingandDevelopment Housing T Housing T Rented 0240.2 Other Other .%0.8% 0.4% rend rend rend rend rend Ownership Owner 72% 77.2 % 72.0 Institutional . 1.7 Source: (CBS,2004)2011) Renter 18.2 % % 18.2 % 23.5 4.3% 3.8% Rent free

Other .3 1. Other Other 0.4% 0.4% 0.7% Table 2.8 Average number of rooms and average size of Dwelling

2010/11 2003 /0 4 Average Average size Average area Average Average size Average area of Number of of dwelling of housing plot Number of of dwelling housing plot (sqft) rooms (sqft) (sqft) rooms (sqft)

Nepal 4.6 605 1625.4 3.7 531 1 473 Urban 5 571 1 472 4.5 584 1448

Urban Kathmandu Valley 4.8 555 1 224 4.8 589 1 162

Urban Other Hills 5.3 558 1 627 4.3 581 1606 Urban Tarai 5 589 1572 Box 2.4: Land Pooling Projects

Land pooling is a participatory planning model executed This technique helps to improve quality of life with well with the participation of the consumers and with technical serviced housing plots and increased land value. It promotes assistance from the government and other related agencies. self financing mechanism, where the users pay for The concept of land pooling can be explained by two key development; it helps in community mobilization for local words: unification and partnership. Unification indicates development thus resulting in community empowerment; saves the consolidation of undeveloped or underdeveloped land the investment of government; and as a vital output it parcels of irregular size and shape, to provide sub divided contributes in improving the environment of the area with regular parcels with access, services and amenities, which is development of planned communities. done through proportionate land contribution from each There are 23 land pooling projects (12 completed and 11 landowner of the project area. Partnership indicates the under construction) within Kathmandu Valley.(MoUD, 2013). partnership between government, private and community for The land pooling projects has been carried out in other part urban land development (Oli, 2005). As a guideline, land of the country as well. pooling allocates around 22 % of the total land for road and 5 % as open space (Dhakal, 2012). Table 2.9 Required Housing Unit by 2023 Description Total In Urban Area

Total number of shelter required 2 ,000 ,000 1 ,300, 000 30% is achieved by constructing additional floor or rooms in case of 500,0 00 400, 000 urban area New construction required 1 ,500 ,000 900, 000 Table 2.10 Shelter situation in selected Municipalities by Population Size

Less than 50,0 00 Pop (Small) 50- 100, 000 Pop (Medium) More than 100,0 00 Pop (Large)

Indicators Dhulikhel Ratnanagar Lahan Hetauda Triyuga Nepalgunj Dharan Bhimdatta Ktm

Access to 2.5% shelter (% (temporary 5.3% 26.8% 1.6% N/A 2.2% 18 % 13.4% 2.3% living in str ) squatter) Ownership of house 63.7 %x 78% 83% 63 .5% 83.9% 61.5 % 55% 83. 8% 32. 4% (%living in own house) RCC structure 42 .6% 38% 14% 62 .7% 1 8% 80.4 % 49.2 % 60. 1% 80 .6% Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions (roof) Existing Urban Development Conditions Existing Urban Development Conditions Source: (CBS, 2004) (CBS, 2011)

27 28 28 28 28 28 Existing Urban Development Conditions Road Coverage Road Coverage Road Density Road Density Major IssuesandOpportunities Major IssuesandOpportunities Squatter Settlements Squatter Settlements standards forgrouphousingandapartments encouragement foreventualdevelopment provision andefficiency up of standards and planning for roads as the city expands up ofstandardsandplanning for roadsasthecity other megacitiesintheworldvary from7%to25%.Setting quite low. Thepercentofurbanareacovered by roadsin the roadcoversonly7.72%of totalmunicipalareawhichis Even thoughKathmanduhas a relativelyhighroaddensity, in (Table 2.11) influenced inurbanareafivedevelopmentregionisshown 2011. Theroadlength,densityandpopulation that oftotalroads(SRNandLRN)is425persons/kmas total populationservedbySRNis2,288population/kmand and thatofallroadsis42.51km/100sqkm.Similarly, the km. Hence,totalroaddensityofSRNis7.90km/100sqkm 208 Feederroadstotaling11636km,andLRNis50943 As of2011,totalSRNconsist21NationalHighwaysand 2.5) constitutes around20%oftotalnationalroadnetwork(Map centers, touristiccentersandthemajorurbanroads.It and districtheadquarters,internationalborders,keyeconomic providing inter-regional connectionsandlinkstoregional Network (LRN).TheSRNarethemainnationalarteries categories- StrategicRoadNetwork(SRN)andLocal The nationalroadnetworkismainlyclassifiedintotwo 2.4.5. UrbanTransport • • • • Pokhara. in manyurbanareasincludingDharan,Birganj,Bharatpur, roadsides andpublicopenspaceisalreadyaseriousproblem 467 households.Squattersettlementsencroachingriversides, households. Seventeensettlementsinotherlocationshad there were29riversidesquattersettlementswith2031 of squatters.A2012surveyinKathmandurevealedthat It isestimatedthatabout10%ofurbanpopulationcomprises Road Coverage Road Density • Major IssuesandOpportunities Squatter Settlements economic classes Road Coverage Road Coverage Road Density Road Density Major IssuesandOpportunities Major IssuesandOpportunities Squatter Settlements Squatter Settlements Increasing trendsofsquattersettlementsinurbanareas Need forincreasingurbandensitiesbetterservice Identification ofbuildablelandinurbanareasand Review ofexistinglegalprovisions,regulationsand Increasing thesupplyofrentalhousingunitsfordifferent V V and veryfewmunicipalitieshaveintra-citybusservice. of size.Lessthanathirdmunicipalroadareblacktopped, Road densityisquitelowinmanymunicipalitiesirrespective Saibu theroadcoverageis17.5%and22.8%respectively. Acharya, 2013).InlandpooledsitessuchasGongabuand mobility withsomedegreeofcongestions(Morichiand space of12%to13%isjustgoodenoughservebasic road spacebelow10%cannotaspiretoreach25%.Road is thereforeofcriticalimportance.Establishedcitieswith Development Regions walk, 4%bycarand1%bicycle(KSUTP, 2010). Kathmandu is26%bymotorcycle,28%bus,41% (DoTM, 2014).However, themodalsplittravelsharein of Bagmatizone,79.8%vehiclesregisteredaremotorcycle Zone areassumedtobeoperatingwithintheValley. In case similar picture.Around75%ofvehiclesregisteredinBagmati vehicle compositionofKathmanduvalleyalsoshowsthe and microbusshare2.2%. 8.6%, andthepublicutilityvehiclessuchasbus,minibus about 82.7%,lightvehiclessuchascar, jeepandpickup the countryis1,98,343outwhichoftwowheelerscomprise The totalnumberofvehiclesregisteredinFY2013/14 density of19.15km/sq km. municipalities. KathmanduMunicipalityhas thehighest km/sq kmwhich basicallyshowtheruralextent ofmost The averageroaddensityofall urbanareasinNepalis3.26 Table 2.11 V V V Fig 2.6 Fig 2.6 Fig 2.6 Fig 2.6 Fig 2.6 Urban FWDR FWDR Urban MWDR Urban WDR Urban CDR Urban EDR Urban Description ehicle Registration ehicle Registration ehicle Registration ehicle Registration ehicle Registration : T : T : T : T : T raffic JaminKathmandu raffic JaminKathmandu raffic JaminKathmandu raffic JaminKathmandu raffic JaminKathmandu Road lengthandroaddensityinurbanareaby Length, Length, 1,1 57 57 1,1 0.18 32 4 2.67 07 1,0 67 2,3 9.31 63 4.39 55 3,5 01 2,6 Road Total mkm Annex 24.a m/s m km / sq km Density, Road .92 1.89 5 4.11 6 2.86

(DoTMa, 2014).The Source:( DoR2011) per km km per road Influenced Influenced Population 884 8.49 28 3.15 32 9.06 31

MAP 2.5 TRANSPORTATION LINKAGE

Table 2.12 Road and transportation characteristics in selected Municipalities by Population Size Less than 50,000 Pop (Small) 50-100,000 Pop (Medium) More than 100 ,000 Pop (Large)

Indicators Dhulikhel Ratnanagar Lahan Hetauda Triyuga Nepalgunj Dharan Bhimdatta Kathmandu

Road density (km/sq.km. 6.1 13.67 5.2 0 4. 52 2.13 10.6 0 8.6 1.5 19.7 of buildable area) % of black topped road 11% 33% 17% 35% 12% 23 % 38.4 % 9% 70.1% to total road length Intra City N N/A N N N N N/A N Y Bus Service Bus Park Y Y Y Y N/ A Y Y Y Y Road Safety

The national statistics on road accidents shows that the compliance of traffic rules, unruly driving behavior, poor road number of traffic accidents in the fiscal year 2012-13 was and vehicular conditions, and lack of traffic infrastructures 13,582 (Traffic Directorate, Nepal Police, 2013). This has such as street lights, traffic signals and signage are the resulted in 1816 number of fatalities, 3986 serious injuries factors behind the road traffic accidents. The recent study and 8000 slight injuries, although the fatality ratio show a (Nepal Road Safety Action Plan 2013-2020, MoPIT, 2013) decline to 11.75 from 17.08 per 10,000 vehicles in 2009- indicates that estimated economic loss from the road accidents 10 (Annex 24.b). About half of all the road traffic accidents in Nepal is at least NRs 2.7 billion (USD 41.2 million) annually nationwide occur in the Kathmandu Valley alone. Among or 0.4 % of GNP at 2007 price. When under-reported Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions other things, lagging pedestrian friendly features, non- accidents are accounted, the adjusted economic loss stands at 0.8 % of GNP annually.

29 30 30 30 30 30 Existing Urban Development Conditions Freight Movements Freight Movements warehouses buildings inthescatteredmannerratherthanproper illegally.Goods ontheotherhandarestoredinresidential and busesarefoundtobeparkedinthepublicland Entry Pointdaily. Atpresent,mostofthesefreightvehicles enter, comparedto440busesthatwereleavingBhaktapur and 11respectively. Inaddition,435busesarefoundto was just41and13respectively, whilethoseleavingwere39 tankers thatenteredintotheValleydailyfromBhaktapur Point intheEastissmall.Average numberoftrucksand In comparison,freightmovementfromtheBhaktapurEntry entered, while665buseslefttheValleydailyfromNagdhunga. left theValleydaily(Annex24.c).Inaddition,641buses 592 and59respectively, while605trucksand137tankers during themonthofMangasir2071(Nov-Dec2014)was and tankersthatenteredintotheValleydailyfromNagdhunga Nagdhunga EntryPointintheWest. Average numberoftrucks the Valley, mostfreightiscarriedbylargetrucksvia region suchastheKathmanduValleyissignificant.Asfor The freightmovementsespeciallytoandfromthelargeurban Freight Movements Major Issues Major Issues Freight Movements Freight Movements • the centralbusinessareas. and todiscouragetheuseofprivatevehiclesparticularly public transporttoreducetrafficcongestionandpollution 82.7% inthecountry.is It registration showsahighpercentageoftwowheelersabout 28% incaseofKathmandu • bearing ontheincreasedroadmaintenancerequirement. drainage. Thepoorconstructionqualityalsohassignificant adequate fundtoregularlymaintaintheroadsorensureproper urban management.Themunicipalitygenerallydoesnothave maintenance ofurbanroadshasalwaysbeenamajorissuein • growing urbanareasisneeded. roads withthesestandardsinmindparticularlynewand is consideredasadesirablestandard.Planningofurban level ofadequacy. Morethan15kmperthousandroadusers number ofusersalsohasthesignificanceinmeasuring road network only. Metropolitan Cityhasstillabout20kmpersquareof reasonable accessibilitytoeverypartsofthetown. km roadnetworksisgenerallysoughtinordertohave • Major Issues warehouses need attention. air qualitywhile necessitatingincreasedparking facilitiesand rising freightmovementandits detrimentalimpactonurban quality andenforcementremain acriticalissue.Similarly, pedestrian safetyfeaturesincluding itsdesign,standards, accidents havebecomeaserious concern.Inadequate Major Issues Major Issues Road Safety andfreightmovements:Increasingroad traffic Road densityandstandards:Morethan30kmpersquare Share ofpublictransport:Publictransportaccountsonly Maintenance ofurbantransportinfrastructure:The : : : : : Similarly, theroadnetworkintermsof desirable toincreasetheshareof Metropolitan City. The vehicle Kathmandu 2.4.6 UrbanEnergy 2.4.6 UrbanEnergy Petroleum Consumption bySectors Petroleum Consumption bySectors Consumption byFuelT Consumption byFuelT National Scene National Scene connectivity notyetdefined. • adequate provisionforfootpaths. roads androadwideningoftentakesplaceatthecostof as muchofthecirculationspaceistakenoverbyvehicular as amajorissueinhistoricurbanareassuchKathmandu, is particularlyimportantforthecitycentres.Itemerging should beprovisionedforwalkingandcycling.Walkability • increased by2.8%fromthe9876tonsin2009/10. of oilequivalentwas10155tonsin2010/11,which separately. Total energyconsumptionofthenationinterms separately, 1%inCommercialandAgriculturesector in residentialsector, 4%inindustrialandtransportsector Of thetotalnationalenergyconsumption,90%isconsumed utilization iscurrentlylessthan 1%oftheprovenpotential. 16.6%, followedbyagriculture at10.5%.Hydropower transportation sector, whileresidentialsectorconsumes Of thetotalimportedfuel, 63.2%isconsumedin sectors. the shareofIndustrysectorishigherthanothertwo industry sectors.Incaseofrapidlydevelopingcountries, commercial energy, whichisfollowedbybuildingandthen transportation sectorconsumesthemajorportionoftotal The UNHABITAT data showsthatinKathmandu, Petroleum products. the totalenergyconsumption.RestissuppliedbyCoaland contributes 2.8%andAlternativeenergysupplies1.2%of 71.1% ofthetotalenergyconsumed,Gridelectricity Based onfueltype,traditionalwoodstillaccountsfor 2.4.6 UrbanEnergy Petroleum Consumption bySectors Consumption byFuelT National Scene National Scene National Scene 2.4.6 UrbanEnergy 2.4.6 UrbanEnergy Petroleum Consumption bySectors Petroleum Consumption bySectors Consumption byFuelT Consumption byFuelT Fig 2.7:EnergyConsumptioninUrbanAreas Fig 2.7:EnergyConsumptioninUrbanAreas Fig 2.7:EnergyConsumptioninUrbanAreas Fig 2.7:EnergyConsumptioninUrbanAreas Fig 2.7:EnergyConsumptioninUrbanAreas Walkability: Betterandsaferfacilitiespossibilities Inter –urbanConnectivity:Qualityofinter-urban ype ype ype ype ype

S ource: UNHABITAT, 2008

Consumption of Electricity Planning Considerations:

Of the total electricity produced, 42.5 % is consumed by • Urban locations as important considerations for hydro- the residential sector, and industrial sector consumes 37.7% power generation (resilient cities) (MoF, 2012). A major portion of residential energy is consumed • Planning considerations (such as land for installing in urban areas. Per capita electricity consumption in Nepal transmission plants, buffer areas between power lines and in 2010 was 90 KWh, compared to 566 KWh in India and residential areas) for energy infrastructure 719 KWh for Asia. • Energy conservation considerations (promotion of self- Kathmandu valley alone consumes 29.23% (or over 200 MW) sustaining passive buildings, alternative, mainly solar energy.) of the total electricity distributed by NEA (NRB, 2012). The share of Kathmandu Municipality is 76.01%. • Land use as a medium to reduce energy consumption Power Demand Forecast through denser mixed-use settlements, new technologies and improvement of transportation system. The demand for electricity is highest in urban areas and • Considerations of urban transportation based on alternate industrial corridors. The demand for electricity increases at energy a rate of approximately 9% per year, according to Nepal Electricity Authority (NEA). However, the urban and industrialized areas account for the bulk of electricity 2.5 Urban Environment demand.If urban areas are the engines of growth, electricity is the fuel. For example, Singapore with similar size as of 2.5.1 Physical Environment Kathmandu and population of 5.3 million, consumes 41.2 2.5.1.1 Safety and Resilience billion KWh electricity per year, which in case of Kathmandu with population of 2.9 million is 1.16 billion KWh. Resilience is the capacity of urban areas and systems to tolerate, cope and withstand natural, social, economic and technical shocks and rebuild.

A resilient city is adaptable, diverse with the capacity to anticipate and plan for future vulnerabilities. Resilience involves planning and designing strategies and institutions to meet the challenges of the future.

The concept of resiliency in Nepal is limited to natural disaster management frameworks and policies. The concept is still to be integrated in the urban planning process. Fig 2.8 : Electricity Supply and Demand in Nepal (MOF, 2012) Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions

Fig 2.9 : Vulnerability and Resilience 31 32 32 32 32 32 Existing Urban Development Conditions Physical Status Physical Status Existing Situation Existing Situation Institutional Status: Institutional Status: Economic Status Economic Status Social Status Social Status Physical Status Physical Status urban resiliencyplanandstrategy. There These provisionshavetobeintegratedintoacomprehensive • • • • • • • • • during disasters,isacriticalfactorofvulnerability. has directimplicationontheirpreparednesstoandresponse effects ofnaturaldisasters. maps andgeologicalfeatureoftheareatominimize as buildingcodes,landusezoning,etc.basedonhazard • • • resilience. Theseinclude: regulations, standardsthathaveabearingonurban There are,however, anumberofexistingpolicies,acts, been abletoenforce buildingcodeforconstruction work the people. recover fromthedisasterisvital inreducingvulnerabilityof non-government sectorstoplan,prepare,respondand governments, andinstitutionsbothinthegovernment Physical Status: Existing Situation Institutional Status: Economic Status: Social Status Physical Status: In generalthefourbasicelementsofresiliencyare: the perspectiveofresilience. revisit theapproachtodisastermanagementinNepalfrom also criticalindeterminingtheirvulnerability. to levelsofpoverty. Theeconomiccondition ofpeopleis Physical Status Physical Status Existing Situation Existing Situation Institutional Status: Institutional Status: Economic Status Economic Status Social Status Social Status Physical Status Physical Status GESI Guidelines,2013; Development Manual,1998; National UrbanPolicy, 2007,whichseeksDRMPlanfor National ShelterPolicy, 1997(revisedon2011); Solid WasteManagementActandRegulation,2011etc. Guideline forUrbanEnvironmentManagement,2010 Local SelfGovernanceAct,1998,whichmandateslocal Road andDrainageStandards,2011; Planning NormsandStandards(Infrastructure),2012; Town DevelopmentAct,1988andRegulations,2004 Urban DrinkingWaterSupplyandSanitation,2009; Building Act,1998andRegulation,2009,whichisthe bodies toimplementDRMactivities, 1997 andRegulation,2003; for itsimplementation all localbodiesandinter-alia communitymobilization construction, legal basisforenforcingNBCandregulatebuilding : : : : :

Social capitalofthecommunity, which Outof58municipalities,only 12have Itdealswithphysicalplanningsuch

Vulnerability isdirectlyproportional

The strengthoflocalandnational

• is alsoaneedto Apartment Act, Economic Status: Economic Status: Social Status Social Status Related Issues: Related Issues: Institutional Status Institutional Status in municipalplanningisquite slow. and theinternalizationofDisaster Riskmanagementactivities Plans ofthemunicipalities,supportsystemisinadequate section withintheirinstitutionalframework. of themunicipalitiesdonothaveadisastermanagement of theplansandmapsforreducingrisktopeople.Most have beenpreparedthereisnoreadinessintheapplication preparation todealdisasters.Evenincaseswherethemaps municipalities asof2011/12.Thisshowsthatthelack Further, RiskHazardMapshavebeen prepared for4 Reduction andRecoveryPreparednessProgramforNepal. been preparedfor5municipalitiesbyEarthquakeRisk since 2009AD.TheEarthquakeVulnerabilityMapshave has beenincludedintheperiodicplanofmunicipalities climate changeremaintobeaddressed. subsidence andslidesaswellthemuchbroaderissueof other butmorepotentialdisasters,likeflooding,land efforts havebeenconcentratedbasicallyonearthquake,while municipalities. Theexistingassessmentandpreparedness rapidly urbanizing.Thereisnolandusezoningenforcedin Building Codeinallmunicipalities,includingVDCsthatare contractors. TheissueistostrictlyimplementNational conduct trainingprogramsforengineers,masons,small- within themunicipalityboundary. Themunicipalitiesalso • • Economic Status: Social Status: Related Issues: Institutional Status: water supplyetc. national seismic standardforlifelinefacilitiessuch asbridges, building codeisnotestablished prominently. Thereisno the relationshipbetweenmapping, planning,landuseand in Nepal. population withweakeconomicstatusinmanyurbanareas poverty. Thisshowslowlevelofresiliency inmajorityof population arevulnerableandcaneasilybepushedinto while 27%arebelowpovertylevel;nearly41percentofthe survey inRatnanagarMunicipalityChitwanelucidatedthat decrease inresiliencyofurbanpopulationtodisasters.A 2010/11. Theriseofpovertyinurbanareaisanindicator areas ofNepalincreasedfrom9.55in2004/05to15.46 the percentofpeoplebelowpovertylineinurban been undertakeninearnest. both preandpostdisastersituations,nosucheffortshave targeted communitybaseddisastermanagementplansfor most partinactive.Whilethereisthescopeforpreparing residing intheparticularward.Theseforumsremainfor group withlegalstatus,whosemembersarethelocalpeople municipalities, 403haveWardCitizenForum,whichisa Economic Status: Economic Status: Social Status Social Status Related Issues: Related Issues: Institutional Status Institutional Status DRM frameworklagsthelinkage withothersectorsand Even thoughDRMhasbeenincorporatedinPeriodic Atpresent,outof806wardsin58

Based onthedataofCBS(2012),

Disaster Managementcomponent

• Rapid depletion of open spaces in urban area with urban (Biochemical oxygen demand) are the quantitative indicators, expansion in marginal lands such as steep slopes, flood plains while its color, smell and condition are the visual indicators. and other hazardous areas has increased vulnerability of the According to WHO standards, the level of DO and pH should people. be more than 5 mg/l and between 6.5 and 8.5 respectively. Data shows that Mahakali River at Pancheswor has DO of 5 • The local governing bodies lack post disaster preparedness mg/l and pH of 8.8.Bagmati River in Kathmandu is plans, such as reconstruction and debris management, which aggravated by nauseous smell and sludgy brown water. The is critical for speedy recovery to the society from a disaster. major causes of water pollution is direct disposal of household • Local level efforts in disaster preparedness and sewerage pipeline to the river, dumping of solid waste in management are not enough. To facilitate a coordinated the river banks, and disposal of hospital and industrial waste effort at the national level a National Disaster Risk without any detoxification treatments. Management Authority may be needed. Land Pollution • The Periodic Planning Guidelines should be updated Land pollution in urban areas is a result of un-systematic linking risk sensitivity with land use planning. dumping of solid waste in open spaces and river banks. As • Operational Guidelines for code compliance and monitoring only six out of 58 municipalities have sanitary landfill site, of apartment, hospital, schools and other institutional dumping in available open spaces and river banks is sought buildings need to be prepared and operationalised. as alternatives. • A multi-hazard approach that deals with different types of Visual Pollution disasters through physical, social, economic and institutional Visual pollution in urban areas is caused by hoarding boards perspectives needs to be pursued and dangling wires, which is an eyesore. Huge advertisement 2.5.1.2 Urban Pollution boards on the roof top of the houses, and dangling cluster of wires along the streets not only hampers aesthetics of the Urban development has meaning only when the urban envi- city but also pose danger to the people. ronment is healthy, i.e., free of pollutions of all kind. Urban Environment Management Guideline (UEMG) categorizes Major Issues pollution as air, water, land, sound and visual. However, • Unchecked vehicle exhaustion level. these guidelines are still inactive amidst degrading urban environment. • Brick kilns and other industries in/around urban areas. Existing condition • Direct disposal of sewerage pipeline into the rivers. Air Pollution • Direct disposal of hospital and industrial waste in the river. The state of air pollution in urban areas, especially in major cities provides cause for concern. Concentration of Total • Haphazard disposal of solid waste along roads, river banks Suspension Particulate (TSP) and Particulate matter less than and open space. 10 micrometer (PM ), two major indicators of urban 10 • Management of electric, telephone and cable wires pollution, is higher than the permissible standards in most urban areas (CBS, 2013). According to WHO standards, the • Coordination of concerned agencies and municipalities level of TSP and PM10 for ambient air quality is up to 230 2.5.2 Natural Environment μg/m3 and 70 μg/m3 respectively. However, data show that the level of TSP in Nepalgunj is 2222.5 μg/m3, followed by The sustainability of urban environment depends on the Janakpur with 2019.5 μg/m3. For Biratnagar, it is 1024.3 extent to which elements of the natural environment such μg/m3 and Pokhara is with 118.5 μg/m3. Similarly, the level as greenery, agriculture and forestry are promoted and 3 planned within the cities so that water and energy footprint of PM10 for Janakpur is 1820.9 μg/m , for Biratnagar is 961.4 μg/m3 and Pokhara is 90.2 μg/m3 (Annex 4).The major is reduced, pollution and its health effects are minimized, there is a respect for the social scale, and the diseconomies sources of TSP and PM10 are identified as vehicle exhaust, road dust re-suspension and brick kiln factories. Situation of scale are kept within manageable limits. in medium and large Tarai municipalities seems worse. Unfortunately, urban development in Nepal has played havoc Water Pollution with the natural environment, and urban planning and management has largely ignored the historical experience The major indicator of water pollution in urban areas is the Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions of agropolitan cities where natural environment was very Existing Urban Development Conditions Existing Urban Development Conditions state of its rivers. Dissolved oxygen (DO) and BOD much a part of the urban scheme of things.

33 34 34 34 34 34 Existing Urban Development Conditions Existing Situation Existing Situation 2.5.2.1 UrbanAgriculture 2.5.2.1 UrbanAgriculture terms ofarea 1990 and2012,i.e.,anaverage lossof0.5%or400hain reported tohavedeclinedfrom 58.4%to47.4%between rate. TheagriculturalareaintheKathmanduvalleyis Agriculture landinurbanareasisdecreasingatanalarming municipalities includingKathmanduwerefooddeficitareas. national soybeanproduction.In2001,17%ofthe paddy, 3.3%ofmaize,2.3%wheatand4.5%total (MoA, 2012).Also,thevalleycontributes1.9%ofnational vegetables and3.5%oftotalpotatoproducedinthecountry urbanized regionsinNepal,produces4.6%ofthetotal considerable eventoday. KathmanduValley, oneofthemost agricultural surplus,andthepotentialremains The earlyurbangrowthofKathmanduwasbasedonits Kathmandu valley. Tarai urbanareas,29%intheTarai and13%inthe population inthehillsandmountains,38%Inner agriculture wasthemajoroccupationof46%urban urban areascanbereckonedbythefactthatin2001 the urbanareasinNepal.Theimportanceofagriculture 32.2% oftotalemployedeconomicallyactivepopulationin Agriculture providesdirectandindirectemploymentto States aswellChina. horticultural productsinmajorurbanregionstheUnited agriculture hasbeenamajorproviderofvegetableand buildings, parks,garbagelandfills,etc.Peri-urban promoted inrooftops,vacantlots,peripheralareasofpublic management. Urbanandperi-urbanagriculturecanbe health duetogreenery, andhelpimprovelandurban savings inland,energyandwaterresources;betterpublic production; providelivelihoodfortheurbanpoor;leadto price; helpconverturbanwasteintoresourceforfood reduce transportcostsoffoodimportsandhencethe urban agriculturecanensuresomedegreeoffoodsecurity; urban areasfromoutside.Promotionofandperi- loss ofcroppedareaandtheneedforimportingfoodto a concerninurbanplanning.Urbanizationisleadingto urbanization asfoodsecurityisincreasinglyrecognized (UPA) isseenasanelementofecologicallysustainable Gupta et.al.,2014).Urbanandperi-urbanagriculture developing countriesinrecentdecades(Mougeot,2005, gaining increasingattentioninbothdevelopedand concern ofurbanplanninginNepalbutthisfieldhasbeen Urban agriculturehasnotbeenregardedasalegitimate Existing Situation 2.5.2.1 UrbanAgriculture fragmentation is evidentinurbanareaswhere thepercent Based ontheNLSS2011 data,agriculturalland Existing Situation Existing Situation 2.5.2.1 UrbanAgriculture 2.5.2.1 UrbanAgriculture

of thevalleyannually(Genesis, 2013). Major Issues Major Issues Existing Situation Existing Situation 2.5.2.2 UrbanForest 2.5.2.2 UrbanForest building codes,urbanagriculturelandbanking,etc.). planning andmanagementconcepts(greenareasgreen can fulfillfoodrequirementsofthecity. leading tourbansprawlandlossofagriculturallandthat land inperi-urbanareasareconvertedintobuildableplots, nearly aquarterofsuchhouseholds.Moreover, agricultural of agriculturalhouseholdswithlessthan0.1hamakeup institutions topromotesuchdevelopments. space byinformalsettlements. private sector, citizen’s forum,etc.forpromotionofUPA. • • • • • Most municipalitiesdonothave anyspecificplans,programs between municipalauthorities and otherrelatedorganizations species. Urbangreeneryand forestry requirescoordination People’s preferencewasforsmall, lessbranchyandattractive bengalensis andFicusreligiosa buttheyarehazardous. common speciesarethereligioustreespecies-Ficus and 213,250treesrespectively. (D&B,2011)Themost forest ofPokharaandBharatpurshowanestimated285,500 elements ofeachindividualurbanarea.Studieson Urban forestsandgreenery, however, havetobeimportant respectively. Kathmandu andPokharavalley, thecoverageis3%and10% 30% oftotalmunicipalareainmountainregion.Incase 22% and17%oftotalmunicipalarea.Similarly, itcovers In hillandTarai municipalities,forestscoveranaverageof value totheplaceandattracttourists.(Sharma,2013). provide openandsocialrecreationalspaceforpublic,add diversity, addtobeautificationandaestheticsofthecity, help controlerosion,moderatetemperature,preservenatural provide greenery, reducepollutionandbalance CO2level, urban landuseandplanningprocessinNepal.Urbanforests Urban foresthasnotbeenadequatelyintegratedintothe • Major Issues Existing Situation 2.5.2.2 UrbanForest system, marketstofacilitateurbanagriculture. boundaries. recycling citywaste,floodcontrol,anddelimitationof Major Issues Major Issues Existing Situation Existing Situation 2.5.2.2 UrbanForest 2.5.2.2 UrbanForest Support servicesforpossibleagriculturecrops,information Policies supportingurbanandperi-urbanagriculture Partnership betweenlocal/regionalgovernmentsandthe Land encroachmentalongtheriversandpublicopen Integration ofurbanagricultureintolanduse Promote UPAinurbanfringeareasassociatedwith and activities to address the issue of urban forests in spite Box 2.5: Open Spaces- Definition of the fact that people’s perception on urban forestry as a way of improving urban environment is encouraging (D & B, Open spaces as understood as parks and gardens at the 2011). neighborhood scale that have dual role of social and Major Issues environmental purposes. They are basically un-built land at city and ward level that provides breathing space through • Lack of urban forest management policy and regulations. the presence of nature within the concrete jungle. However, Major policies of forest conservation are focused on rural these parks and gardens themselves can be a combination areas. of green and grey space that have specific design components to cater multiple functions for different age groups. These • An integrated approach is lacking to promote and support spaces need to be at a walkable distance from the urban forest promotion and conservation programs. neighborhood and of adequate size depending upon the • Haphazard urban growth, encroachment of land and lack density and size of the neighborhood. of enforcement of land use policies is an impediment in the process. Their major function can be play area for children and adults. It can serve as an area for relaxation and informal activities • Role of the municipalities in promotion and preservation of with a level to reclusion, however with presence of formal or urban forest not well clarified. informal supervision to maintain safety in the area. It can • Lack of mechanisms and incentives to encourage people cater to community functions or can be a place for learning. to plant trees in private land. Apart from physical activities, these areas should be designed 2.5.3 Social Environment to encourage and maintain homogeneity in the community 2.5.3.1 Urban Amenities: Open Spaces through social interactions, hence increasing the quality of life both physically and socially. Open spaces and parks in urban areas serve three major Table 2.13 %designated open space coverage in purposes – they are the lungs of the city and provide breathing municipalities spaces, they improve the physical, social and psychological Municipality Areas Coverage (%) health of the city as they enhance not only the city’s aesthetics and beauty but provide spaces for social interaction and Birgunj 0.33 recreation and contribute to the livability of a city, and they Kathmandu 0.48 also serve critical purposes of evacuation during disasters Lalitpur 0.06 particularly during earthquakes. Parks and open spaces are Biratnagar 1.49 Source: Periodic Plans of Municipalities integral components of the urban landscape, and the larger In neighboring India, Delhi has 20 % of its area as open the proportion of parks and open spaces the better the space. Planned city of Chandigarh has 35%, and even prospects of a city. Equitable access to open spaces by all congested Mumbai has 2.5 % (Express, 2011). In must be the prime guiding principle in urban planning. Kathmandu 0.48% of open space is insignificant to serve Indeed, the form of the urban landscape must evolve from the city. this concern. However, in Nepal the issues of open spaces WHO and FAO recommend a minimum availability of 9 meter2 in urban areas has largely remained ignored in both in the per person of green open space for the city dweller. Based policy discourse as well as the practice of urban development. on the Periodic Plan of the municipalities, in Kathmandu 2 2 Existing Situation the availability is 0.25 meter per person and it is 4.34 meter per person in Dharan. The proportion of open space in major municipalities shows Existing Policies a bleak picture. In Kathmandu and Lalitpur 0.48% and In By-laws of Kathmandu Valley, community open space is 0.06% of municipal area can be categorized as open space. reserved as an integral part of any land measuring 0.25 The situation is similar in Terai municipalities. Area under hectare or more for the use of the community. open space is clearly insignificant and needs priority attention. Existing by-laws have the following provision for community open space for planned residential zone: a. For 5 to10 ropanies 5% of total land area Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions b. For 10 to 25 ropanies 4% of total land area

35 36 36 36 36 36 Existing Urban Development Conditions 2.5.3.2 UrbanArt,Architecture andCulture 2.5.3.2 UrbanArt,Architecture andCulture Major Issues Major Issues cities respectively. of theMetro-cityareainSub-metropolitanandMetropolitan open spacetobe2.5%oftheSub-metrocityareaand5% DUDBC (2013),suggeststheminimumareaofdesignated open space.ThePlanningNormsandStandardssetbythe upon thetypeofinstitutions.Therestshallbeallocatedas coverage ofthebuildingrangesfrom40to50%depending prescribed zones.Forinstitutionalbuildings,theground depending uponthesizeofplotanditslocationin the groundcoverageofbuildingrangesfrom50to80% surface and30%areotheropenspaces.Inresidentialplots, land asopenspace,ofwhich20%areaisfor provision: Apartmentplotsneedtoprovide50%ofitstotal VDC ofKathmanduValley(2008)makesthefollowing laws forconstructionwithinmunicipalitiesandurbanizing In termsofopenspaceswithintheplots,Buildingby- and regulations. provisions arefragmentedandembeddedwithinotherpolicies policy regardingurbanopenspacesandparks.Theexisting governance. largely tounmonitoredencroachment,areflectionofpoor open spacesinKathmanduvalleyandothermajorcitiesowes Encroachment ofopenspacesisamajorissue.Declinein citizens. and reflectthe artisticandculturalachievements ofits Cities throughhistoryhavebeen theharbingersofcivilization • • (Periodic PlansoftheMunicipalities) projects inKathmanduValleyisasfollows: The landallocatedforopenspacesinthepooling 2.5.3.2 UrbanArt,Architecture andCulture • Major Issues the planningprocess. factors thatshouldalsobedefinedanddesignedtofacilitate time distancewithrespecttoresidentialareasareothercritical 2.5.3.2 UrbanArt,Architecture andCulture 2.5.3.2 UrbanArt,Architecture andCulture Major Issues Major Issues T T T T T There isnoinventoryandmonitoringofopenspace. able 2.14 able 2.14 able 2.14 able 2.14 able 2.14 Sn. Project The typesandhierarchiesofopenspaceswithincities At thenationallevel,thereisnoclearandunambiguous 5 3 2 1 6 4 Nayabazar Nayabazar Gongabu Gongabu d. For>100ropanies2.5%oft c. For25to100ropanies3.5%oftotallandarea Sainbu 24.58 3.18 12.9 12.9 3.18 24.58 Sainbu Lubhu 13.5 0.58 4.3 4.3 0.58 13.5 Lubhu Liwali Liwali al 0 . 7.0 1.4Dallu 20 % ofopenspaceallocatedinlandpoolingprojects % ofopenspaceallocatedinlandpoolingprojects % ofopenspaceallocatedinlandpoolingprojects % ofopenspaceallocatedinlandpoolingprojects % ofopenspaceallocatedinlandpoolingprojects Land (ha) (ha) Land 44.25 44.25 33.45 14.33 Total Total (19.97 ropani=1hectare) Open Space 1.17 1.17 0.72 (ha) (ha) 1.6 otal landareas % of open open of % spaces spaces 3.6 3.6 3.5 5.0 Major Issues Major Issues Existing Situation Existing Situation 2.5.3.3 CommunityOrganizationandY 2.5.3.3 CommunityOrganizationandY tangible andintangiblecultureduetochangein development, inbothexistingandnewurbanareas. preservation ofheritageandcultureinurbanareas. • the developmentofcities. events bothtraditionalandmodernareanintegralpartof promotion ofmuseums,artgalleries,theatres,music,cultural of culture,artandarchitecture.Preservationheritagesites, cities havetobefacilitatedcontributethedevelopment appreciated asintegralpartofurbandevelopment,thenew as Kathmandu,Lalitpur, Bhaktapur, Janakpuretc)hastobe While theheritage,artandarchitectureofoldercities(such unprecedented achievementsoftheKathmanduvalley. contributed totheerosionofvalueswhichled of culturalsymbolismandrisingconsumerismhaveall increasing congestionandtrafficwithinthecitycore,loss urbanization andurbansprawl,increasingmigration, traditional organizationandusageofspace.Rapid valley isreflectedinitsculture,art,architectureandthe society. ThedistinctivenessthecivilizationofKathmandu Art andculturearealsoindicatorsofthewell-being the municipalitytoaddress issuesofthecommunity. At Community BasedOrganizations (CBO),whoworkcloselywith community levellikeTole LeadOrganization(TLO)and the particularward.There are otherorganizationsat legal status,whosemembersare thelocalpeopleresidingin annual plans,programsandbudget.WCFisagroupwith Committee toempowertheroleofcitizensinformulating Ward CitizenForum(WCF)andIntegratedPlanFormulation Program (LGCDP),municipalitiesaresupportedtocreate Under LocalGovernanceandCommunityDevelopment internalize thisownership. participatory planningisadvocatedasamechanismto communities, andparticularlytheyouth.Inclusive their citiesbutalsotheincreasedownershipofby the cities’emphasizenotonlyroleofpeopleinshaping The notionsof“inclusivecities”,‘justcities’and‘rightto • • • • Major Issues Existing Situation 2.5.3.3 CommunityOrganizationandY road expansionandotherinfrastructuredevelopmentprojects. due tourbandevelopmentprojectsandcommercialcomplexes urban areas. Major Issues Major Issues Existing Situation Existing Situation 2.5.3.3 CommunityOrganizationandY 2.5.3.3 CommunityOrganizationandY Support innovationofart,architectureandcultureinnew Integrate art,architectureandcultureasapartofurban Weakening ofinstitutionsforthepreservationhistoric Encroachment ofheritagesitesandhistoricmonuments Link economicincentives(suchastourism)withthe guthi outh outh outh outh outh system. present, out of 806 wards in 58 municipalities, 403 have Kathmandu Metropolitan Police Range and 10 each in Ward Citizen Forum, However, these forums remain for the Lalitpur and Bhaktapur Ranges. Toll free telephone numbers most part inactive. and free SMS system are also functional. The police personnel have been mobilized in proportion to the population. The National Youth Policy 2009 has defined youth as population average standard is 1:200 populations but in case of group between 16 years to 40 years (MoYS, 2009). Youth Kathmandu Valley, the rate is 1:500 (Nepal Police, 2011). population comprises nearly half (48.7%) of total urban Traffic police deals with managing traffic flow and minimizing population. Based on National Youth Policy 2009, Ministry traffic accidents. of Youth and Sports is implementing programs in 17 sectors such as in education, social security, health, human A total of 964 traffic police are mobilized in Kathmandu trafficking control, youth empowerment, employment and valley (Nepal Police, 2011). Tourist Police is a special unit leadership development etc focused on youths. However, of Nepal Police, established in 1979 AD working Ministry of the existing cities are not youth friendly in terms of availability Culture, Tourism and Civil Aviation, Tourism Industry Division. of open spaces, sports facilities and entertainment (Sharma, The main responsibility is to look after the welfare of tourists 2013). while they are in Nepal. The tourist police are mobilized in major tourist areas. Community police came into existence Some efforts have been make cities more youth friendly. from 2051 BS (1994) as a pilot project in Kathmandu Valley. Sports infrastructure are planned for all the 58 municipalities. Currently, they are mobilized in 141 different places in 75 Similarly, various national sports competition, Special and districts (Nepal Police, 2011). Para-sports are being organized. But mobilizing the Street lighting is an important aspect of urban security, as communities and the youth in urban planning and well as vehicular and pedestrian traffic at night. This development process remains a daunting task. Major Issues consideration is absent from most urban areas due mainly to inadequate energy supply and management. • Employment creation in urban areas remains a major Major Issues challenge. The prevailing political situation of Nepal has • Lack of integration of urban security in urban planning. led youth to migrate for employment abroad. About 15% of the total absentee population in 2011 originated from urban • Major focus on policing of public spaces, lack of urban areas of which 77% were in the age group 15-34. design considerations.

• Need to encourage participation of community in urban • Lack of appropriate street lighting. planning, so that their needs and issues are incorporated in 2.6 Urban Economy the process of development with their participation in the decision-making process. The demographic and economic characteristics of urban areas • Lack of youth friendly orientation in urban planning provide a picture of the urban economy. 2.5.3.4 Urban Security 2.6.1 Economically Active Population, Employment, and Occupational Structure Urban security deals with multi dimensional challenges. It includes physical, financial, political, and social security as Economically active population above 10 years make up 36% well as security of the public. In case of urban planning, of urban population. But only 34% is usually active (23% providing a sense of security in public spaces and male and 11% female). Around 44% are economically neighborhood is a major concern. inactive, of which males account for 16% and females 28%. Existing Situation Agriculture, forestry and fishing accounted for almost a third of the total urban employment. Wholesale, retail trade (17%) Nepal Police provides security through its various arms such and manufacturing (14%) are the other two important as metropolitan police, traffic police, tourist police and employment sectors (Fig 2.10). But the urban sectoral community police. Metropolitan police is functioning only employment varies a great deal among urban areas. In larger in Kathmandu. In Kathmandu Valley for security urban areas trade and services are the prominent sectors of considerations CCTV has been installed at 102 major junctions employment followed by manufacturing. and additional 1000 installation is in process (Sharma, 2013). The CRVs (Control Room Vehicle) are stationed around the Based on the available data on occupation structure, 41% Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions crime prone areas. There are 50 CRVs in of population in still depend on Existing Urban Development Conditions Existing Urban Development Conditions

37 38 38 38 38 38 Existing Urban Development Conditions 2.6.3 ConsumptionandPoverty 2.6.3 ConsumptionandPoverty 2.6.2 HouseholdSavingsandBorrowings 2.6.2 HouseholdSavingsandBorrowings Fig 2.10:Currentlyemployedpopulationaged15+byindustriesin Fig 2.10:Currentlyemployedpopulationaged15+byindustriesin urban areas urban areas Fig 2.10:Currentlyemployedpopulationaged15+byindustriesin urban areas below povertylevel comparedto50%inGulariya. poverty levelbyurbanareas.Pokhara has1.3%ofpopulation NPR 76,924inPokhara.There isalsoawidedifferencein areas withthelowestNPR25,069 inSirahaandthehighest is awidedifferenceinpercapita consumptionamongurban capita consumptioninurbanarea isNPR43,578.Butthere line inurbanareaswas10%2003/04.Theaverageper is ontherise.Thepercentofpopulationbelowpoverty to 25.2%nationally. However, povertytrendinurbanareas 15.5% ofurbanpopulationisbelowthepovertylinecompared Nepal LivingStandardsSurvey(2010/11)showedthat Kathmandu, Pokhara,andLalitpurhavethehighest. Malangawa haveverylowlevelsofborrowingswhereas such asDasharathchand,Dipayal,Jaleshwor, , accounts for70%oftotalurbanlending.Smallareas 42% ofthetotalnationallending.Kathmanduvalley of allurbansavings.Urbanareascontributearound40- Kathmandu andPokharavalleystogetheraccountfor80% Urban areasaccountfor46%ofallbankdeposits. 0.1%. 42% and42.9%respectively, whileagricultureholdsonly and manufacturingaremajoroccupationsthatcompriseof trade. However, inKathmanduMetropolitancity, services In ,34%arelaborworkersand20%engagedin as well. Ratnanagar (37%)andLekhnath(71.5%)municipalities holds thehighestpercentofoccupationinPanauti(42%), and 11%areinpublicadministration.Likewise,agriculture their occupation,9%havemigratedforforeignemployment agriculture andnearly24%undertakewholesaletradeas 2.6.3 ConsumptionandPoverty 2.6.2 HouseholdSavingsandBorrowings Fig 2.10:Currentlyemployedpopulationaged15+byindustriesin Fig 2.10:Currentlyemployedpopulationaged15+byindustriesin urban areas urban areas 2.6.3 ConsumptionandPoverty 2.6.3 ConsumptionandPoverty 2.6.2 HouseholdSavingsandBorrowings 2.6.2 HouseholdSavingsandBorrowings Fig 2.11: Fig 2.11: Fig 2.11: Fig 2.11: Fig 2.11: Fig 2.12:%Share oftotalremittancereceivedbyurban areas Fig 2.12:%Share oftotalremittancereceivedbyurban areas Fig 2.12:%Share oftotalremittancereceivedbyurban areas Fig 2.12:%Share oftotalremittancereceivedbyurban areas Fig 2.12:%Share oftotalremittancereceivedbyurban areas 2.6.4 Remittance 2.6.4 Remittance largest recipients. Biratnagar, Ramgram,Janakpur)combinedtogether arethe in termsofurbanregionsTarai municipalities(suchas oriented remittanceisthesinglelargestrecipient.However, Kathmandu MetropolitanCitywith6.3%oftotalurban around NPR1.1billion. remittance receivedbythemunicipalitiescomesouttobe income (aroundNPR4billionin2013).Theaveragesumof Kathmandu cityisthehighestrecipientofremittance is justaround15%ofthenationalremittanceincome. The amountofremittancereceivedbytheurbanhouseholds for allNepalesehousehold). around NPR80,000perhousehold(NPR9,245capita among recipienthouseholdswithaverageremittanceof remittance anditcomprisesof31%householdincome around 56%ofthehouseholdsreceiveoneorotherform Nepal LivingStandardSurvey(CBS,2011)estimatedthat 2.6.4 Remittance 2.6.4 Remittance 2.6.4 Remittance Per CapitaConsumptionofthedefinedurbanregions Per CapitaConsumptionofthedefinedurbanregions Per CapitaConsumptionofthedefinedurbanregions Per CapitaConsumptionofthedefinedurbanregions Per CapitaConsumptionofthedefinedurbanregions 2.6.5 Competitive advantages of the urban Similarly, along Biratnagar-Dharan corridor, highest LQ based regions in terms of manufacturing on output and employment is in ‘Electrical, machinery and establishments apparatus’ industry, which is 4.58 and 5.38 respectively. Locational Quotient (LQ) Analysis: Along the Birgunj corridor, highest LQ based on output and employment fall under ‘Tanning and leather products’ that Locational quotient is a measure that quantifies the relative is 2.39 and 3.12 respectively. In both Biratnagar and Birgunj concentration of an industry or a cluster of industries in a corridor, ‘Textile’ industry provides maximum number of region relative to the national average. LQ value greater than employments. 1 is normally taken as an indicator of such concentration. A Along Nepalgunj corridor, two highest LQs based on output higher LQ is generally taken to be indicative of (i) relative fall under ‘Basic metal’ and ‘Chemical and chemical products’ advantage of the industry in that region, and (ii) potential industries, which is 1.54 and 2.29 respectively. ‘Other non- regional export orientation of that industry. LQ is derived on metallic mineral products’ provides highest number of the basis of total value of output and employment reported employment, whose LQ based on employment is 1.67. In in the district level data from the Census of Manufacturing Pokhara, ‘Wood and products of woods except furniture’ Establishments 2006/07. industry has highest LQ value based on output that is 6.02, Based on LQ of Kathmandu Valley, the maximum value of which is followed by ‘Furniture, jewellery, sports goods and output is generated from ‘Radio, television and other NEC’ products with LQ value of 5.04. ‘Machinery and communication equipment’ and ‘Publishing, printing and equipment’ provides maximum number of employment. reproducing media’ industry, which is 9.87 and 6.68 2.6.6 Non-farm Activities and Manufacturing respectively. It means, total value of output of Communication Employment in Urban Areas industry is almost 10 times more than the national average. Highest LQ based on employment also falls under same Analysis of non-farm activities (NFA) and manufacturing industries that are 4.13 and 3.19 respectively. ‘ employment in urban areas (WB/AusAid 2012) based on Labor Textile’ industry provides highest number of employment that Force Survey 2008 and Census of Manufacturing Industries is twice the national average. In Hetauda, highest LQ (2007) shows the following: basedon value of output and employment fall under ‘Chemical • Share of NFA relative to overall employment in urban areas and chemical products’, which is 6.57 and 3.96 respectively, is 60%, for Kathmandu valley it is 80%. and ‘Other non-metallic mineral products’ industry provides highest number of employment. Table 2.15 Locational Quotient value of the industries with relative advantage in Region/Urban areas. Region/Urban area LQ values Industry with relative advantage

(i) Output – 9.87 (i) Radio, television and communication equipment Employment – 4.13 Kathmandu (ii) Publishing, printing and reproducing media (ii) Output- 6.68

Employment – 3.19

(i) Output – 6.02 (i) Wood and products of wood and straw and cork except Employment – 5.73 furniture Pokhara (ii) Output – 5.04 (ii) Furniture, jewellery, sports goods other NEC (iii) Employment – 6.15 (iii) Machinery and equipment

(i) Output – 6.57 (i) Chemical and chemical products Employment – 3.96 Hetauda (ii) Output - 3.26 (ii) Rubber and plastic products (iii) Employment – 3.13 (iii) Paper and paper products

(i) Output – 4.97 (i) Furniture, jewelry, sport goods and other NEC (ii) Output – 4.56 (ii) Wood and wood products Chitwan (iii) Employment – 2.39 (iii) Other non-metallic mineral products (iv) Employment- 1.23 (iv) Paper and paper products Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions

39 40 40 40 40 40 Existing Urban Development Conditions of 9and12%respectively. of serviceemployment.Financialservicesandtourismaccount Public administrationandsocialserviceaccountsfor25% dominated bysmallwholesaleandretailtrade(over50%). centre foranextendedeconomicregion.Servicesectoris accounts for70%ofNFA. Urbancoreplaystheroleofservice regions. employees ishigherinKathmandu valleythaninother valley, CentralTarai andEasternTarai). Proportion ofservice concentrated in3clusterssimilar toNFA (ie.,Kathmandu • • • estimated employment478,000. (iii) CentralTarai (19%) comprisingofBirgunjandhinterland, hinterland, estimatedemployment446,000, (ii) EasternTarai (15%)comprisingofBiratnagarand employment 632,000, (i) Kathmanduvalley(25%ofurbanNFA) estimated surrounded byhinterlandofsmalltowns,ruralareas: Servicesectoremployment inurbanareasisalso

Mid Mid Far westand Tarai Three mainclustersofurbanNFA includingurbancentres Service sectoristhelargestcontributortoGDPand eagn ordr (i) Nepalgunj Corridor Dhangadi Corridor Biratnagar-Dharan Birgunj Corridor Birgunj etr aa (i) Western Tarai Central Tarai Central Tarai atr aa (i) Tarai Eastern Corridor Corridor (iii) (ii) (i) (iii) (ii) Employment- 1.79 (ii) 5.38 Employment – (i) Employment – 2.32 Employment – (ii) (i) (iii) (ii) 2.94 Employment – (i) (ii) 3.23 Employment – (iii) (ii) 3.12 Employment – (i) (ii) 2.52 Employment –

Output – 2.03 Output – 4.58 – Output Output – 3.62 Output – Output 3.09 – Employment 2.27 Output – 2.79 Output – 4.56 – Output 2.66 – Employment 1.4 – Output 2.39 Output – Output – 2.19 Output – Employment – 2.17 – Employment 2.43 Output – Output Output – 2.86 2.86 – Output 3.63 Output – Output – 2.29 Output – 2.52 – Employment 1.54 – Output Employment – 1.92 – Employment

– –

6.34 7.65

(i) (ii) (ii) (i) (ii) (i) (iii) (ii) (i) (i) (ii) (iii) (ii) (i) (iii) (ii) (i) (i) (iii) (ii)

• • • and vicinityofBiratnagarinEasternTarai 15%. employment; vicinityofBirgunjintheCentralTarai, 17%; Kathmandu valleyaccountsfor40%ofmanufacturing complimentarity ofmanufacturingandNFA. which mostlyshowadecliningtrend.Thereis share ofagro-processingemployment (37%). garment, andtextiles.Pokhara incomparisonhasalarger much smallershareofagro-processingandlarger Compared tootherurbanareas,Kathmanduvalleyhasa 19%.garment; 18%textiles;and19%agro-processing. 30% paper, mineral,plastics,chemicalsandwood; manufacturing employmentis14%machineryequipment; industrial production.Thecompositionofurban (handicrafts) manufacturingaccountsforabout60%oftotal in non-municipal,ruralareas.Also,labourintensive

Therearethreemainclustersofmanufacturingindustries: Manufacturingischaracterizedbysmallscaleindustries

Textile machinery and apparatus Electrical, Wearing apparel, dressing and apparel, dressing fur and dying Wearing Furniture, jewelry, sport goods and other NEC NEC other and goods sport jewelry, Furniture, metalBasic Wood and wood Wood products Tobacco fuel and refinedpetroleum nuclear products Coke, Other non-metallic mineral non-metallic mineral products Other and wood Wood products Metal Basic Other non-metallic mineral non-metallic mineral products Other and wood Wood products products chemical and Chemical and leather Tanning products Other non-metallic mineral non-metallic mineral products Other andPaper paper products Chemical and chemical products products chemical and Chemical metalBasic Fabricated metal products, except machinery machinery except products, metal Fabricated Overall, nearlyhalfofmanufacturingemploymentislocated

2.6.7 Major Considerations 2.7.1 Existing Scenario Investment - Demand Analysis In view of increasing rural-urban migration, the role of urban The investment needed to fulfill the existing infrastructure areas in the generation and expansion of employment deficit in 58 municipalities is calculated to be a staggering opportunities and in increasing productivity and creation of NRs 372 billion.The investment need has been calculated wealth is going to be critical in Nepal’s development efforts. for the infrastructure deficit based on existing and desirable That would also provide the major justification for the state of municipalities (Annex 5). The infrastructure investment increased amount of infrastructural investment required in includes cost for new roads construction, upgradation of urban areas. Regional resource specific strategies are called existing roads, piped water supply connection, construction for to build on the comparative and competitive advantage of toilets, electricity connection, solid waste collection and of urban areas. Urban economies also need to be inclusive management, storm drainage construction and sewerage particularly in the context of increasing poverty trends in connection. The prevailing rates are referred for calculations. urban areas and the likelihood of increased refugees to urban It shows that of major portion of investment, 60% is required areas for reasons of disaster and climate change. for new road construction and existing road upgradation. 2.7 Urban Investment and Finance Investment need has been forecasted by TDF for urban area based on sampling of periodic plan of few municipalities. The total investment need is calculated to be NPR 45-50 Municipalities are under tremendous financial strains to keep billion. pace with increasing infrastructural needs and upgrade their quality and improve overall service delivery. The potential resources in the municipalities are yet to be mobilized to address the financing need of the cities. Besides, the institutional capacity of municipalities to mobilize potential resources remains limited.

Box 2.6: Foreign Direct Investment

Based on the data of FY 2011/12, in total 2335 numbers of industries in 54 districts of Nepal have Foreign Direct Investment. The total foreign investment in various sectors mounts to NRs 75,150 millions. They include industrial production, service, tourism, construction, energy, agro based and mining. Based on the data of MoI (2011/12), ‘Service’ sector has the highest number of FDI funded industries, which is followed by ‘Industrial Production’ and ‘Tourism’ Sector. In addition, only 2% of the total industries with FDI are in ‘Energy’ sector. Nevertheless, in terms of investment, the highest flow is in ‘Industrial Production’ sector, which is followed by ‘Energy’ sector. ‘Energy’ sector has the least number of industries with FDI; however the amount of investment is quite high. Fig 2.13 : Sectoral Composition of FDI (% share) FDI with NRs 27,279 millions followed by Lalitpur and FDI has provided major employment opportunity in ‘Industrial Kaskidistrict. Districts such as Dhankuta, Parbat, and Production’ sector, which is 80,180 (49% of total FDI Darchula received least FDI, which is mostly concentrated employment) in numbers. It is followed by ‘Service’ (22%) in central and western regions. Disparity in FDI also reflects and ‘Tourism’ industry (16%). the imbalance in the overall development of the nation.(Map Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions As per MOI 2011/12, Kathmandu district has the highest 2.6)

41 42 42 42 42 42 Existing Urban Development Conditions adilst HH Total Sewerage km Storm Drainage km Landfill site HH with electricity HH with PipedHH with WS Upgraderoad ext. New Roads Urban there isnorationaldistributionofinvestmentwhichhas than thecontributionofurbansectortoGDP. Further, The outlaybythecentralgovernmenthasbeenmuchless deficit formaintainingandupgradingurbaninfrastructure. The abovemapindicatesthatthereisasignificantinvestment MAP 2.6 MAP 2.6 MAP 2.6 MAP 2.6 MAP 2.6 T T T T T able 2.16 able 2.16 able 2.16 able 2.16 able 2.16

Infrastructures

Toilet HH DISTRICTWISEDISTRIBUTIONOFINDUSTRIESWITHDIRECTFOREIGNINVESTMENT DISTRICTWISEDISTRIBUTIONOFINDUSTRIESWITHDIRECTFOREIGNINVESTMENT DISTRICTWISEDISTRIBUTIONOFINDUSTRIESWITHDIRECTFOREIGNINVESTMENT DISTRICTWISEDISTRIBUTIONOFINDUSTRIESWITHDIRECTFOREIGNINVESTMENT DISTRICTWISEDISTRIBUTIONOFINDUSTRIESWITHDIRECTFOREIGNINVESTMENT

Investment- ForInfrastructureDeficitfor58municipalities Investment- ForInfrastructureDeficitfor58municipalities Investment- ForInfrastructureDeficitfor58municipalities Investment- ForInfrastructureDeficitfor58municipalities Investment- ForInfrastructureDeficitfor58municipalities

Unit HH HH km km

000000 616 6 18,759 26 96,146 10,000,000.00 20,000,000.00 500000 755 0 7,318 10 37,505 15,000,000.00 10,000,000.00 Rate 0000 ,3 05 338 0.5 1,731 10,000.00 30,000.00 1,000.00 781 0.2152 5,000.00

in

Rs.

Required investment havenotbeenexplicit. not beenforthcomingandpoliciestoencouragesuch sector investmentinurbaninfrastructuredevelopmenthas exacerbated regionalimbalancesinresourceallocation.Private Investment 372,935 151,973 75,129 75,129 9,018 652

(mil)

Percent 100% 0.2 20 41 2

Per

capital (in 72,764 14,658 29,652 1,760 127

Rs.)

cost

Revenue Analysis 2.7.2 National Resource Allocation for Urban Development Sector The revenue base of the municipalities is very weak. Out of total local income (2.25 billion), taxes and service charges Public investment has been the main resource for urban together make up around 83% (Annex 6). The largest share infrastructure development. In the current fiscal year 2016- of revenue is provided by service charges (around 41% of 2017, national resource allocation (budget) for the urban total income) levied by the municipalities to provide different development sector is about NPR 59 billion—which shows three-folds increase when compared with the budget of FY kinds of services. Second major source of local income is 2013-14 (see Table 2.17a). The budget has increased mainly property tax which contributes around 18% to the total from the inter-government fiscal transfer (IGFT) at MoFALD, municipal income. Land and housing tax and property tax and added urban development projects in DUDBC. also contributes 8% and 6% respectively. Due to low revenue base, the capacity of the municipalities for development At “per capita” basis, urban development sector budget activities is limited. Municipal expenses are highly dependent shows only marginal increment. This has reached to NPR on grant. In 2011/12 nearly 70% of municipal revenue 4,726 (USD 47) from NPR 4,421 (USD 44) during the accrued from grants (5.3 billion out of 7.6 billion) (Annex period (see Table 2.17b). Overall, the urban sector bud- get is about 2.6 % of GDP and 5.6 % of National 7). BudgetBudget—an increase from 1 % of GDP and 3.9% of na- Some municipalities have started mobilizing resources under tional budget in 2013-2014. partnership with people i.e. cost sharing in infrastructure projects especially urban roads, toilets and drains. Dharan 2.7.3 Prospects for Resource for Developing and Butwal municipalities were the first to champion the Urban Roads idea. Of the total investment requirement of NPR 2,453 billion, Central government often select cities for implementation of almost 60% of cost (NPR 1,461 billion) is incurred for relatively large size projects under donor support and are developing road including both upgrading (the existing one) executed mainly by government departments and its regional/ and building new road. It means for the next 15 years; each year investment requirement for urban road will be NPR 97 district offices. Biratnagar storm water drainage and sewerage billion. project financed by ADB is one such example. The overall revenue growth trend is positive, though the trend of internal Of this, about one-third (35%, NPR 34 billion) is required revenue growth is not satisfactory. The growth of conditional for upgrading and about two-third (65%, NPR 63 b) is for grant is relatively higher, which is indicative of declining developing new road. This allows upgrading of 3,397 km of fiscal choice of municipalities. road, and developing 3,173 km of new road every year for the next 15 years. In both cases of upgrading and new, Expenditure Analysis more than half of the road length (56 %) is to meet the deficit compiled due to lack of timely intervention, and 44 A significant share of municipal expenditure of 4.8 billion is % is to meet the new demand generated by new service incurred as capital investment (about 72% of total standard and population. However, resource that may be expenditure) and current expenditure is only 28 % of total available for road (as outlined in the following table) combining expenditure as of FY 2011/12. The detail of expenditure is investment of government agencies, municipalities, and community at best meets the cost of road upgrading only. shown in Annex 8. However, the trend in expenditure is inflated by ADB line of investment in few selected cities. The resource gap will still prevail to meet the development There is a long list of municipal functions, which are actually cost of new road. To fill this void, the participatory land development methods like land pooling become critical. For considered as unfunded responsibilities. Sharing of functions instance, 1000 hectares of land pooling project—with 20 % among central and municipal governments should be fully land use dedicated for road tends to create 222 km of new based on sharing of funding sources based on the principle road with average width of 9 m. Similarly, 200 hectares of of subsidiary. land pooling creates 44 km of new road, while 20 hectares of land pooling creates 4.4 km of new road with average Under Local Self Governance Act (LSGA), taxing authorities width of 9 m or 5.7 km of new road with average width of 7 are assigned to these local bodies but limited for setting the m. Planning intervention with Guided Land Development— tax rate on themselves. LSGA, however, initially was still in which is a collaborative instrument becomes helpful to se- contradiction with 23 other Acts of which 10 minor ones cure right of way (ROW) and open new community access. were harmonized later. And the private sector implemented planned real estate de- velopment also becomes valuable. Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions

43 44 44 44 44 44 Existing Urban Development Conditions T T T T T able 2.17a able 2.17a able 2.17a able 2.17a able 2.17a IF 13.1 works it primarily as DWSS, include not does budget MWSS Note: IGFT NS 0.27 NWSC DDCP oet 4.84 DUDBC MISDP Project IAP 0.73 0.27 Ra or 0.392 0.26 5.99 0.69 0.23 0.96 Road Board DOLIDAR Melamchi UN BIP Park KVDA UGDP RUDP CUDP 10.55

MoPIT MWSS MoUD DUDBC Total DOR LGCDP development project Infrastructure Urban MoFALD PID KVWSMB PPURP DCIP HPCIDBC excludes municipal source own revenue (OSR)comprising of tax, fee,other and recurrent income ** MoFALD (6%) budget billion hasto 1.05 be read NPR with caution—as account Project only Town small New proportion billion financed 0.67 of LGCDPNPR budget Government goes the account to And municipalities, project one (4%). supported while Bank it World the while (18%), billion 3.12 ADB NPR account (22%)—where projects 3 billion 3.79 supported NPR account projects supported Bank World the and ADB which, In (87%). billion 17.12 * In this fiscal year 2016-17, MoUD’s total urban development budget is 20.08 NPR billion. Of this, DUDBC’s share is NPR Ministries/Department analysis (source: Reviewof NUDS, 2015)

T T T T T rend ofNationalResourceAllocationforUrbanDevelopmentSector rend ofNationalResourceAllocationforUrbanDevelopmentSector rend ofNationalResourceAllocationforUrbanDevelopmentSector

rend ofNationalResourceAllocationforUrbanDevelopmentSector rend ofNationalResourceAllocationforUrbanDevelopmentSector

STIUEIP SPIADP

IUDP IUDP BRR ICP NT

2.276 7.972 9.82 2013 20.07 Annual

(49%) ‐

(11%) (40%) 2014

Government in non-municipal/rural areas. Therefore, it is excluded from th from excluded it is Therefore, areas. non-municipal/rural in 15.62 13.46

7.45 2.602(6.6%) Resource 2015 39.132

(19.1%)

(39.9%) (34.4%) ‐

2016

Allocation

in

NPR 20.69 20.08 3.442 14.9 2016

Billion 59.112 0.052 0.067 12.28 ** 0.54 1.36 1.36 1.05 0.61 3.05 3.43 0.64 0.19 0.35 0.67 0.40

* 3.9 8.0 (25.2%)

‐ (34.0%) (5.8%)

2017 (35.0%)

is is Table 2.17b Sectoral Budget Indicators

Unit Year 2013‐2014 2016‐2017 2021 2031 Urban population person 4,523,820 12,485,148 14,362,275 19,220,805 Urbanization Level % 17 44 47 54 GDP NPR Billion 2,000 2,200 Government Annual Budget 516 1,049 (% of GDP) NPR Billion (26%) (48%) Sectoral Budget NPR Billion 20 59 Sectoral Budget/Total National % 3.9 5.6 Budget Sectoral Budget/ GDP % 1 2.6 Sectoral Budget per Capita NPR 4,421 4,725

Table 2.17c Prospects of Resource for Developing Urban Roads

Government Contribution in NPR billion Total Beneficiaries/ Grand DUDBC MoPIT MoFALD Municipalities KVDA NPR Communities Total billion contribution in NPR NPR billion Billion 8.5 5.3 5.3 8.33 0.75 28.18 8.45 36.63 (23.2%) (14.5%) (14.5%) (22.7%) (2.1%) (77%) (23%) (100%) @ 50 % of Dedicated Assuming town @ 30 % of @ 50% of @ community departmental DOR and infrastructure average OSR per average contributes annual “locked NRB development annum NPR annual average 30% of in” budget of budget for fund is 7.27 b plus budget of the cost against NPR 17 b is road dedicated for average IGFT per NPR 1.5 the government spent on urban road annum NPR b is spent investment roads 20.5 b of 217 on roads municipalities spent on roads

Note: * Average Municipal OSR is calculated by taking FY 2016-17 as the benchmark—with OSR per capita at NPR 550 and population with new annexed area 5,942,028 for 58 established municipalities. For the next four years OSR per capita is increased by 5% to NPR 578, and by 7% to NPR 636 for the next 10 years. The increment of OSR per capita by 5 % and 7 % is kept to reflect the national economic growth. Population is projected to grow by Compounding AGR of 2.8%. As for 159 new municipalities, OSR per capita is taken 30%, 50%, and 80% of 58 municipalities for the first 5 years, second 5 years, and third 5 years respectively. This is done to reflect the early development state and preparedness needed in the case of new municipalities. Population is projected similarly as 58 municipalities by Compounding AGR of 2.8%. The OSR per capita is kept constant with the year 2013-14—reflecting on the disturbances caused by April 25, 2015 earthquake and subsequent trade with India. The OSR per capita for FY 2013-14 is calculated by dividing the OSR of this year by population. In FY 2013-14, OSR for 58 established municipalities is NPR 2,657 million. While population in 2013 is projected to be 4,839,476 (population 2011: 4,523,820, AGR: 3.43 %). This results in OSR per capita to be about NPR 550.

Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions

45 46 46 46 46 46 Existing Urban Development Conditions financing isagoodoption,whichmakesmunicipalities the presentinvestmentneedofanycity. Here,debt It isobviousthatfinancingneedalwaysbiggerthan developing inaslowpacebutwithgrowingprospects. Debt financingforexpansionofurbanfacilitiesis Financing T Financing T Urban InfrastructureDevelopmentusingDebt Urban InfrastructureDevelopmentusingDebt Financing T Urban InfrastructureDevelopmentusingDebt Financing T Financing T Urban InfrastructureDevelopmentusingDebt Urban InfrastructureDevelopmentusingDebt Intergovernmental FiscalT Intergovernmental FiscalT 2.7.4 InvestmentandFinancingMechanism 2.7.4 InvestmentandFinancingMechanism plan. making bymunicipalitiesthemselvesforinvestment contributes inenhancingtheleverageofdecision unconditional grantshouldbeincreased,which them achoiceininvestmentdecision.Thevolumeof transfer asunconditionalgrant,whichactuallygives municipalities getonly9%revenuethroughcentral preparing budgetandprograms.Currently, of totalrevenue)putsmunicipalitiesinadilemmawhile The ever-growing volumeofconditionalgrants(38% to beunsatisfactory. meet policygoals.Inreality, theseresultswerefound to designcredibleincentivesencouragecities in financialcapacitiesofdifferentcitiesandd)ability flows whichcanbeleveraged,c)balancingdifferences investments; b)providingacreditworthybaseofcash predictability thathelpscitiesplanlongterm system hasmanybenefitsincludinga)providing and objectiveorientedintergovernmentaltransfer unconditional grantsfromcentralgovernments Currently, municipalitiesreceiveconditionaland Intergovernmental FiscalT 2.7.4 InvestmentandFinancingMechanism Intergovernmental FiscalT Intergovernmental FiscalT 2.7.4 InvestmentandFinancingMechanism 2.7.4 InvestmentandFinancingMechanism Box 2.7:AutoVillage-Butwal Box 2.7:AutoVillage-Butwal Operate andTransfer (DOT)model. Theautounitoperators The PPPmodelundertakenfor theprojectisinDevelop- (STIUEIP, 2014). modality hasbeenundertaken foritsimplementation project isNRs277million.Public PrivatePartnership(PPP) parking facilityandothers.Thetotalestimatedcostofthe reusable liquidwaste,wastewatermanagement,vehiclepay management, stormwatermanagementof as watersupply, electricity, roads,publictoilets,solidwaste The projectplanstoimproveinfrastructureoftheareasuch 13 BatteryServices,72MotorPartsWorkshopandothers. already beenleasedforestablishmentof75AutoWorkshop, hectares withnearly400plots,outofwhich368plotshave as ModelAutoServiceCenterinNepal.Itspreads9.5 which iscurrentlybeingimprovedthroughSTIUEIPproject Auto Village-Butwalhasbeeninoperationsince15years, Box 2.7:AutoVillage-Butwal Box 2.7:AutoVillage-Butwal Box 2.7:AutoVillage-Butwal ool ool ool ool ool ransfer ransfer ransfer ransfer ransfer . . . Aclear . . . financing contributiontototalrevenueisonly1%. municipalities isstillverylowalthoughoveralldebt is extremelylow. Theborrowingcapacityof the practiceandvolumeofdebtfinancingatcitylevel financing schemes-about20years.Despitethiseffort, urban roadstocitybusterminalsforlongterm several urbaninfrastructureprojectsrangingfrom development throughloansandgrants.Ithasfinanced in publicsectorforfinancingurbaninfrastructure Town DevelopmentFund (TDF)istheonlyorganization from facilityusersdependingontheirfuturecashflows. that investmentwillberecoveredfromservice-fees revenue streambydesigningtheprojectinsuchaway able tofinancebeyondthelimitoftheirpresent lessons forthefuturePPPprojects aswell. it isintheinitialstage,outcomes ofsuchprojectwillbe contract willendby2041after 25yearsofoperation.Though is intendedtobecompleted by December2015andthe automatically transferredtothe localgovernment.Theproject partnership contractperiod,theautovillagewillbe as pertheirlevelsofco-investments.Aftertheend infrastructures /facilitiesandsharestherevenuebenefits private partnershares,operatesandmaintainsthedeveloped assistance, loan,and/orshareinvestments.Further, the facilities. Theco-investmentofothersourcesshallbegrant building, developingandimprovingtheinfrastructures Under theDOTmodel,privatepartnersco-investon Butwal Municipalityisthepublicpartnerofproject. legally recognizedcompanyundertheCompanyAct2006. in thevillageareprivatepartner, withregisteredand Alternative Financing revenue, whichislesslikely. municipalities enhancetheirexistingrecurrent Municipal borrowingcapacitycanbeenhancedifall the lastfiscalyearfinancialdatais795.4milliononly. Total borrowingcapacityof58municipalitiesas responsibility allocationofforce-majeurecases. ensures properriskallocation,benefitsharing,and and legislationaboutPPPframeworkconditionsthat urban facilities.Atpresent,thereislackofclearpolicy infrastructures andO&Mcontractforoperationof financing toolslikePPPindevelopmentof A coupleofmunicipalitieshaveinitiatedalternative 2.7.5 Key Issues in Urban Financing On the other hand, many key urban revenue sources do not Deviation between Policies and Practices have the capacity to yield additional revenue in proportion to the rate of inflation, the rise in personal incomes and the Taxing authority assigned to municipalities under LSGA 1999 growth of the urban population. In some cases, property and regulation 2000 is poorly implemented and adopted. As taxes are regressive and, hence, they may not be effective indicated above, the LSGA contradicts existing acts. The instruments for redistribution and attainment of equity. MoFALD initiated transfer of performance based grants by Low Institutional Capacity/Framework implementing Minimum Conditions and Performance Conditions Measures-MCPM. This has created logical base for providinggrants based on municipalities’ performance. In spite of investment made in capacity development for However, many municipalities could not perform well after municipalities, the following weaknesses remain on the path several years of MCPM practice. Besides the performance of sustainable financing. These include: based transfer system, ministry continued with other unconditional grants from reserve fund. This has undermined • Shortage of qualified staff and lack of technical and MCPM compliance by municipalities. administrative capacities to plan, implement, operate and Growing Gap of Financing and Funding maintain urban infrastructure facilities; • Municipalities are facing ever increasing funding and Inefficient delivery due to overlapping/unclear financing gap due to following reasons: implementation mandates of implementing agencies; a. low volume of fiscal transfer systems from the central • Insufficient legal and administrative frameworks for PPP; government, • Lack of capacity for transparent and reliable planning and b. very low level of municipal revenues from taxes and fees, procurement processes, and improved/accrual accounting c. burden of unfunded responsibilities; and system in municipalities; and d. limited access to loans and other forms of debt financing. • Eroded accountability image due to lack of elected council In most cities and towns, the tax base of urban authorities is in municipalities. very small and the tax revenue is quite inadequate to meet Limitations and Contingent Factors their expenses. While most cities depend largely on incomes derived from Integrated Property Taxation (IPT) and service The impediments to improving urban infrastructure financing are: charges, the central government controls the more lucrative revenue sources such as income taxes, VAT and business a. Large number of municipalities and towns are small and taxes. Most cities, therefore, have no choice but to depend, financially weak; to a large extent, on allocations from the central government, b. Lack of strong domestic capital markets, undeveloped which are generally inadequate. municipal credit institutions

c. Asymmetrical decentralization and possible retrenchment of central transfers once federal restructuring is undertaken. Table 2.18 Debt Analysis of 58 Municipalities Description of debt analysis Amount in Nepalese Rupees

A) Total Recurrent Revenue 4640.86 million/annum

B) Total Recurrent Expenditure 1459.26 million/annum C) N et Operatin g Surplus 3181.60 million/annum

D) Total Borrowing Capacity (BC) : 25% of 795.40 million /annum Net Operating Surplus (Potential Loan for 20 Years = 15 Billion)

• Class A Borrowers 24 nos. with BC more than 10 million/annum

• Class B Borrowers 27 nos. with BC in between 5 million to 10 million/annum Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions • Class C Borrowers 7 nos. with BC less than 5 million/annum Existing Urban Development Conditions Existing Urban Development Conditions

47 48 48 48 48 48 Existing Urban Development Conditions Development Development Financing andImplicationonUrban Financing andImplicationonUrban 2.7.6 KeyStrategicConcernsinUrban 2.7.6 KeyStrategicConcernsinUrban Fiscal FederalismandRevenueSharing Fiscal FederalismandRevenueSharing Assessing ImplementationCapacity Assessing ImplementationCapacity revenue surplus,saleofassets etc) c. currentrevenuestreams(capital grantsfromGovernment, b. investmentsfromprivatesector, and Partners, intermediariessuch as TDFandmarkets, a. loansfromdifferentsourcesincludingDevelopment • urbanization. c. Unlockinglandvaluesthatariseoutofincreasing b. Transfers fromhigherlevelsofGovernment and a. Taxes anduserchargesfromlocalcitizens, be • restructuring and Nepal isinthemidstofanintensedebateonfederal land fillsite. have accesstobiggerfacilities,forexample,sharedsanitary financing andmakescitizensofsmallmunicipalitiesableto Pooled financingprovidesamechanism,whichleverages possible foruptoNRS15billiononly. Surplus. Debtfinancinginmunicipalitiesfor20yearsis tune of800MillionNRsperannumat25%NetOperating Possible financingforurbaninfrastructurecouldbetothe line offinancingtoimplementwaterandsanitationprojects. municipalities arereceivingfinancingfromGoNunderADB and implementtheprojects.Only29smalltowns4IUDP only fewmunicipalitieshavecapacitytomobilizemorefunds In spiteoffinancingneedsforinfrastructuredevelopment, Development Financing andImplicationonUrban 2.7.6 KeyStrategicConcernsinUrban Fiscal FederalismandRevenueSharing Assessing ImplementationCapacity is likelytobeimpactedbyseveralhigherorderconsiderations. for resourcesharing.Thus,theinfrastructurefinancingpolicy the newprovincesmightcompetewithmunicipalgovernments can andshouldbefinancedinNepal.Thereisalsofearthat debate willhaveastrongimpactonhowurbaninfrastructure maintenance ofexistinginfrastructures. g. Poorlydevelopedmechanismformobilizingfunds infrastructure projects. f. Lackofmechanismsandinstrumentstofinanceurban of municipalcreditinstitutions. d. Institutionalandpolicyimpedimentstothedevelopment Development Development Financing andImplicationonUrban Financing andImplicationonUrban 2.7.6 KeyStrategicConcernsinUrban 2.7.6 KeyStrategicConcernsinUrban Fiscal FederalismandRevenueSharing Fiscal FederalismandRevenueSharing Assessing ImplementationCapacity Assessing ImplementationCapacity Identification ofurbaninfrastructureinvestmentsthatcan Sources ofupfrontfinancingthroughamix sustainably financed sustainably financed sustainably financed sustainably financed sustainably financed sustainably financed decentralization through amixof . Theoutcomeofthis T T 2.7.7 SomeInnovativeFinancingStrategy& 2.7.7 SomeInnovativeFinancingStrategy& (i) Valuecapture: (i) Valuecapture: (v) Focusonidentifiedcitiesandurbanagglomerations (v) Focusonidentifiedcitiesandurbanagglomerations (iv) Nationalprioritytocities (iv) Nationalprioritytocities c c (iii) Mobilizationoffundfromcapitalmarket (iii) Mobilizationoffundfromcapitalmarket (ii) Harmonizeandstreamlinesubsidypolicy/strategy (ii) Harmonizeandstreamlinesubsidypolicy/strategy state hasmaderelativelyhugeinvestment. used astooltocapturethevalueinpartsofcities,where infrastructure, andlanddevelopmentschemesneedtobe betterment leviesandsaleofpubliclandadjacenttoan tax- IPTcapturesthevaluetoaminimumlevelonly. Hence, residents ofotherpartspay. Theexistingintegratedproperty neighborhood residentspayintegratedpropertytaxeslike enhanced landvalueincertainpartsofcity, howeverthe (i) Valuecapture: (v) Focusonidentifiedcitiesandurbanagglomerations development inpolicyformulation. because itdeterminesthepriorityaccordedtourban Articulating theroleofcitiesineconomicgrowthisvital (iv) Nationalprioritytocities to beprovisionedinthestrategy. financing,PPPandbondissueneed consortium (iii) Mobilizationoffundfromcapitalmarket (ii) Harmonizeandstreamlinesubsidypolicy/strategy efficient useoffinancialresources. d. Preparebudgetandmaketransparent,effective c. mobilizeresources;and transfer systems; b. designtransparent,effectiveandperformancebasedfiscal a. increaseownsourcerevenuesatlocallevel; institutions andministries,aswellmunicipalitiesto: • as waterandsanitationurban transport north-south corridorsineast-west highway)orsectorssuch urban growthregions(suchas Kathmanduvalleyorspecific urban development.Prioritycan beindicatedintermsof It isessentialtoidentifyclear priority regionsandsectorsfor T 2.7.7 SomeInnovativeFinancingStrategy& public agencyfromtaxpayers’money(stateresponsibility). Full Subsidytopurelysocialprojectscanbefinancedby is urgentlyneeded. addition tothis,afullPPPenhancementpolicyandlegislation technology intotheproject/sishighlyrecommendable.In wherever privateSPVbringsmoney, knowledgeand Viability GapFunding(VGF)frompublicfundinPPPprojects, income generationispartlypossible partial subsidytoutilitieslikedrinkingwater, cityhallwhere where projectsarebankableorPPPispossible.However, subsidy topurelycommercialurbaninfrastructureprojects (i) Valuecapture: (i) Valuecapture: (v) Focusonidentifiedcitiesandurbanagglomerations (v) Focusonidentifiedcitiesandurbanagglomerations (iv) Nationalprioritytocities (iv) Nationalprioritytocities c c (iii) Mobilizationoffundfromcapitalmarket (iii) Mobilizationoffundfromcapitalmarket (ii) Harmonizeandstreamlinesubsidypolicy/strategy (ii) Harmonizeandstreamlinesubsidypolicy/strategy T T 2.7.7 SomeInnovativeFinancingStrategy& 2.7.7 SomeInnovativeFinancingStrategy& ools tobeConsidered ools tobeConsidered ools tobeConsidered ools tobeConsidered ools tobeConsidered Enhancement ofinstitutionalcapacitycentrallevel The investmentsmadebythestatecreates like through : No state (vi) Service delivery and accountability framework low level of eligibility to guarantee the payback. Thus, financing institutions like TDF tend to finance the bankable Even as the government puts in place a comprehensive projects in general. financing policy, it should also put in place a framework that encourages cities to meet service standards and holds The revenue mobilization effort of municipalities helps to them accountable for non-compliance. A strong accountability increase the number of bankable projects and revenue framework also makes cities realistic in projecting its mobilization can be realized through property taxes. However, investment needs. they may still not materialize until the capacity of the local bodies is raised to a higher level. Although user charges can (vii) Inter Governmental fiscal system be levied upon, there is still the need to raise awareness The inter Governmental fiscal system in Nepal is already being among the people that they cannot have the civic facilities revamped with support from development partners. The fiscal for free. The only way to achieve this is to promote and arrangements between the different levels of the Government regulate “users to pay” principle, which will reduce the gap play an important role in mobilizing additional resources. between revenue and expenditure. (viii) Potential of new funding sources (x) Local revenue enhancement strategy

Commercial borrowing, PPP and use of land as a resource, The potential for revenue generation from efficient together provide a strong framework to finance capital management of local sources often gets underestimated. It investments. The policy should not only explore their full is not uncommon to see vast differences in per capita potential, but should also set up supporting mechanisms to revenues of cities, which are similar in size and in their ensure that the potential is realized. For example, a municipal economic base. Rather than improving the efficiency of local bankruptcy framework provides a good foundation for revenue generation, support from national Government is leveraging commercial finance. Changes in urban planning often seen as an easy alternative. The financing policy should and a transparent framework for land conversions provide a fully explore how local revenue sources (taxes as well as user foundation in which urban land can be used as a financing charges) can be maximized and should set benchmarks that instrument. cities should meet. A proper mix of financing approach (ix) Mobilizing long-term debt financing strategically utilizes own-source revenue, grants, borrowing (loans and bonds), and equity. By leveraging these varied There were never sufficient budget resources available from financing sources and tools against one another, government and donors to expand urban infrastructure municipalities will be in a better position to finance their coverage at a pace that keeps up with rapid urbanization in priority projects to a larger extent. Nepal. There is need to follow common loan - grant policy 2.8 Urban Governance by all donors and that sets one of the basic rules of the game in debt financing. Local governmentsneed to implement sound and transparent 2.8.1 Fragmented Institutional Arrangement financial management practices and demonstrate the Urban Governance and ensuing service delivery is marked creditworthiness of their proposed investments. by fragmentation in the institutional arrangement. The current arrangement has put urban planning and infrastructure Currently, TDF has been able to provide long term loans for development under one umbrella, while urban governance up to 20 years, which are unavailable in the local market. and administration in another. Nepalese commercial banks generally lend up to 5 years, Ministry of Federal Affairs and Local Development (MoFALD) where as TDF has been able to provide municipalities long is the central agency for governance and administration term loans up to 20 years at rates well below the market oversight of local bodies. Minimum Conditions and rate. TDF has also taken significant credit risk that the Performance Measures (MCPM) is a popular score-based commercial banks would not have able to take. Loan monitoring instrument used by MoFALD to monitor local repayment rate was 83%% in March 2014. However, this bodies. Municipalities are also required to create Ward Citizen type of over risk needs to be safeguarded by financing and Forum and Integrated Plan Formulation Committee to investment strategy. empower the role of citizens in formulating annual plans, In principle, municipalities can borrow on longer-term basis programs and budget. Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions from capital market and banks. However, problems lie in the Existing Urban Development Conditions Existing Urban Development Conditions

49 50 50 50 50 50 Existing Urban Development Conditions 1 (SWMTSC) havealsocometo bealignedunder MinistryofFinance (MoF)andMinistry ofFederalAffairs andLocalDevelopment (Mo form aseparateMinistry ofWater SupplyandSanitation (MWSS).Town DevelopmentFund(TDF) andSolidWaste ManagementTechnica Since 2015December 24,DepartmentofWaterSupply andSewerage(DWSS)otherwater supplyagencieshavecometobe detached these institutional resourcescanbringgreater synergy: departments ontheotherhand remaindivided.Intandem, Municipalities ontheonehand andMoUDitssectoral Moreover, humanandcapitalresources ofMoFALD and processes andlimitsofvoluntary cooperationandcoordination. municipalities hasbecometedious withthebureaucratic programs—specially undertaking upscaleprojectswithin As aresult,implementationofpolicies,plans,and and urbaninfrastructuredevelopmentinitiatives. MoUD inundertakingthecomprehensiveurbandevelopment arrangement tendstoseverelyimpedetheeffectivenessof lacking. coordination mechanismslinkingthesetwoministriesremain functions inthesameurbanspacebutinstitutional MoFALD andMoUDtendtoundertakecomplementing for theurbandevelopmentsector. Thus,twoministries MoUD hasanannualbudgetofaboutNPR20billionallocated different urbandisciplines.Forthisfiscalyear2016-17, a poolofengineers,architects,andplannersspecializedin they ownandcontrolsubstantialamountofland.MoUDhas to beinfluentialstakeholderwithinthemunicipalspaceas Development Committees(TDCs).Insomecases,TDCstend Valley DevelopmentAuthority(KVDA)and262Town oversight onregionalplanningauthoritylikeKathmandu different organizationalentities.MoUDfurthermorekeeps and BuildingConstruction(DUDBC),about7other now remainsdefeated. detached, theveryobjectiveswithwhichMoUDwascreated— DWSS, NWSC,TDF, andSWMTSChavingcometobe under MoFALD andthecriticalimplementingarmsnamely is throughMoUD.However, amunicipalitystillbeingaligned umbrella asstipulatedbyNationalUrbanPolicy2007—that planning, planimplementation,andfinancingunderone objectives weretobeachievedbymainstreamingurban and increaseurbanproductivityopportunities.These manage urbangrowthandissues,improveenvironment things tofosterplannedurbanizationanddevelopment, In 2011,whenMoUDwasformed,theaimamongother 2.8.2 ProblemofCoordination arms the localbodies.MoUDoperatesthroughitsimplementing Generally, MoUDperformsthesefunctions collaboratingwith development, newtownsandgovernmentbuildings. functions suchasurbanandregionalplanning, management, andhousing.MoUDalsocarriesoutspecialized services suchaswatersupply, sanitation,solidwaste of developingandmanagingbasicurbaninfrastructure small townsandmarketcentres,butundertakesfunctions deals withthesameurbanspaceincludingmunicipalities, On theotherhand,MinistryofUrbanDevelopment(MoUD) municipalities. budget ofaboutNPR20.69billionallocatedfor experts andengineersforFY2016-17,ithasanannual centres suchasLDTA. MoFALD hasapooloflocalgovernance Agriculture Road(DOLIDAR),humanresourcetraining (LBFC), DepartmentofLocalInfrastructureandDistrict It alsokeepsoversightonLocalBodyFiscalCommission municipalities and3157VillageDevelopmentCommittees. 75 DistrictDevelopmentCommittees(DDCs),217 rural development.MoFALD undertakesitsfunctionsthrough including deputationofChiefExecutiveOfficers(CEOs),and fiscal transfer, humanresourcedevelopmentoflocalbodies bodies, decentralizationanddevolution,intergovernmental to federal(re)structure,delineationofboundarieslocal MoFALD isresponsibleamongotherthings—forissuesrelated 1 comprisingnamely, DepartmentofUrbanDevelopment 1 This fragmentedinstitutional urban infrastructureprovisioning. structures, capabilities,andplanningapproachestoimprove orientation asopposedtostatusquoinorganization divisions inurbangovernanceandmanagementrequirenew infrastructures. Theselayeredauthoritiesaswellsectoral responsibility oflandpolicy, propertyacquisition,andphysical responsibility ofsettlementdevelopmentpolicyandjoint While thefederalleveliscontinuedwithexclusive infrastructures suchaslocalroad,watersupplyandsanitation. space, andassignsresponsibilitiesofprovisioningbasicurban the firsttimeroleofmunicipalitiesingoverningurban managing urbanaffairs.Italsoacknowledgesexplicitlyfor (2015) tacitlyempowerstheprovincelevelwithroleof development ofphysicalinfrastructures,theConstitution inventory andjointlyoflandpolicy, propertyacquisition)and (through exclusiveresponsibilityoflandmanagement, infrastructures. Withauthoritytoexercisecontroloverland authorities pertainingtourbandevelopmentand to furthermagnifywiththegreaterdivisionofconstitutional Issue ofurbandevelopmentsectorcoordinationisexpected completion oftheproject. however, isthatthecoordinationdisappearsafter limitation oftheprojectlevelcoordinationmechanism, remains thedebtmanagingintermediaryagency. The project implementation.Town DevelopmentFund(TDF) DUDBC, whileMunicipalityisentrustedwiththetaskof Project CoordinationOffice(PCO)remainsattachedto agencies includingMoFALD andtheprojectlocalbody. The and representedbyamongothersofficialsfromothercentral Committee atthecentre—whichischairedbyMoUDsecretary institutional coordinationmechanismincludesSteering Governance andDevelopmentProgram(UGDP).The Urban EnvironmentImprovementProgram(UEIP)and building projectsinseveralmunicipalities.Theseinclude urban infrastructuredevelopmentandmunicipalcapacity project level.MoUDhasbeenundertakingsomelargescale Despite these,effortsareontoforgecoordinationatthe the prospectofitsgreaterpotential. urban institutionalresourcestoremainunderutilized,despite service delivery. Consequently, theselimitationshavecaused improve municipaltechnicalcapability, performanceand a decade. due totheabsenceofpolitical representationformorethan handicapped inundertakingmajor developmentdecisions government forrevenue.Municipalities arefurther few municipalities,mostcontinue torelyonthecentral municipalities ratherthanpre-empted responses.Exceptfor are limitedorhavebecome forcedmeasuresinmost bye-laws, buildingcode,urbanplanningnormsandstandards management. Enforcementofbuildingregulations,planning as solidwasteordealwithissuessuchdisasterrisk still lackbasicorganizationalstructuretomanageworkssuch municipal organizationandcapability. Mostmunicipalities But, muchoftheplanimplementationsuffersfromweak municipal integratedactionplans(IAP),andperiodicplans. support tomunicipalitiessincethe1990sprepare DUDBC. DUDBChasbeenprovidingtechnicalandfinancial development worksthroughitsimplementingarmnamely and itcarriesoutmuchneededurbanplanning MoUD employstheman-powercapableofdoingtheseworks, urban planninganddevelopmentworks.Onthecontrary, capacity toconfrontthecomplexurbandynamicsandpursue Municipalities ingenerallackthetechnicalexpertiseand 2.8.3 Technical Capability FLD) respectively. l SupportCenter fromMoUDto 2.8.4 Problem of Planning and Managing But rest of the TDCs are inactive and ineffective due mainly Urban Agglomerations and Corridors to lack of resources in pursuing their objectives. These problems notwithstanding, the DUDBC flagship project such Legal basis is also inadequate to manage and govern large as New Town Development rely on TDCs for much needed urban regions comprising of urban agglomerations, clustered legal basis to control land use, enforce building regulations, city region and urban industrial corridors involving several and facilitate project implementation. The current TDC local bodies, although Town Development Act 1988 may organizational structure—which relies on a more provide necessary legal basis. Kathmandu Valley Development administrative, coordinative and regulatory role—is Authority (KVDA) Act 1988 is limited to the Valley and it inadequate to deal with volatility and specialized knowledge enables the Valley to be viewed as one planning unit. of land market needed in the context of new town However, the present relations between KVDA and local bodies development. The relevance of TDCs have also been tends to be loose, as local bodies are not obliged to comply questioned where municipalities have been created or exist. with the KVDA plan and regulations. This voluntary nature The role of TDCs is often looked with skepticism by the local of cooperative planning and non-compliance of regional bodies—as TDCs are feared to interfere in the local affairs. planning goals and regulations by the local bodies is one of 2.8.5 Ministry of Urban Development (MoUD): the reasons behind weak implementation of region-wide plans An Overview such as the Long Term Development Plan of the Kathmandu Valley and other regional plans. Ministry of Urban Development (MoUD) was established on The past efforts to have legislation backed conjoint May 18, 2012. In its inception, the principal mandate of MoUD was formulation, implementation, monitoring, and planning—in which regional plan and standards are complied evaluation of policies, plans, and programs related to water in the local (municipal) plans or vice versa in a mandatory supply, sanitation, solid waste management, urban manner—through Kathmandu Valley Physical Planning Act development, housing, and building construction. The has failed, as this legislation could not get the parliamentary Ministry’s Vision Paper (2013) aspires for a vision of “planned, approval. The Physical Planning Act which would in general clean, and beautiful cities with adequate physical define the roles of regional planning authority, local bodies infrastructures and amenities.” as well as their relations—to manage larger urban space Current Institutional Arrangement also has not received government approval and remains in a limbo. The new federal setup of governance, once it is In December 29, 2015, the Government detached water finalized, is expected to redefine the role of the central and sanitation sector from MoUD, and established a separate government in local affairs. International practices indicate Ministry of Water Supply and Sanitation (MWSS). MoUD’s that local urban affairs generally come under the purview of financing arm—that is Town Development Fund (TDF) has the state or provincial government; the role of the central also come to be under the fold of Ministry of Finance (MoF). government is limited to preparation and enforcement of Solid Waste Management Technical Center—which provides policies and standards in the areas of critical concern, technical support to municipalities on management of facilitating coordination and undertaking large scale Sanitary Land Fill Site (SLFS) and solid waste management in general is now detached from MoUD and is under Ministry specialized urban infrastructure investment. This means that of Federal Affairs and Local Development (MoFALD). MoUD the existing institutional and legal arrangements between is now confined to limited scope of urban development, the central government and the municipalities will have to housing and building construction only. be thoroughly reviewed. New Role and Mandate Town Development Act 1988 has been activated to form regional planning authorities like Pokhara Valley Town The Government’s Work Division Regulations (2015) (source: Development Committee and Surkhet Valley Town Nepal Gazette dated December 29, 2015) is the principal Development Committee. Both these TDCs keep valley wide document that delineates the role and mandate of the planning oversight encompassing administrative boundaries government ministries. The Regulations among others of several local bodies. Elsewhere TDCs are formed to provide mandate the scope of work of MoUD to the followings: planning needs as well as manage growth of small towns • formulation, implementation, monitoring, and market centres. All these TDCs have DUDBC Division regulating, and evaluation of policies, plans and Chief or its technical representative as the member programs of urban development and urban secretary—and through DUDBC Division Office, TDCs derive infrastructures required technical support. At present, only a few of the • implementation, coordination, monitoring and Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions TDCs among 262 are active and have their permanent income evaluation of physical plans and programs of Existing Urban Development Conditions Existing Urban Development Conditions sources. These TDCs have managed to employ their own municipalities and urbanizing places human resources. 51 52 52 52 52 52 Existing Urban Development Conditions Current OrganizationandStaffing Current OrganizationandStaffing policy policy Singhadurbar SecretariatReconstructionCommittee. Convention CenterDevelopmentCommittee,and(ix) Dhobhikhola CorridorImprovementProject(viii)International Training Center(vi)UNParkDevelopmentCommittee(vii) Development FinanceCompanyLimited(v)Town Development (iii) NationalHousingCompanyLimited(iv)Nepal DUDBC (ii)KathmanduValleyDevelopmentAuthority(KVDA) It keepsoversightoverninedifferentorganizationsnamely(i) (31%) aretechnicaland49(69%)administrative. including 14sections.Ithastotal71staffs—ofwhich22 Planning (iii)HousingandBuilding(iv)Administration Foreign AidCoordination(ii)UrbanDevelopmentandPhysical Ministry has4divisionsnamely(i)Planning,Monitoring, Current OrganizationandStaffing Matters includinglandusepolicy, province, andlocal. management atthethreelevelsofgovernment—federal, 20, 2015dividestheauthorityoninfrastructuresandland The ConstitutionofNepal(2015)—promulgatedonSeptember local level. Basic sanitation,watersupply, andlocalroadareconfinedto and provinciallevelwatersupplyarelimitedtolevel. Land management,landinventory, provinciallevelhighway, industry arethejointauthorityoffederalandprovincelevel. water supplyandsanitation,propertyacquisition,landpolicy, are confinedtothefederallevel. policy, policy policy Current OrganizationandStaffing Current OrganizationandStaffing T T T ra hrct r te charac Urban T T infrastructure able 2.19 able 2.19 able 2.19 able 2.19 able 2.19 • • • • ran Urba national transportationpolicy, andnationalhighways urban roadsexcludingstrategic disadvantaged groups management ofunplannedsettlements,urban settlement development and urbandevelopment programs relatedtourbanization,urbanlanduse formulation andimplementationofpolicies,plans Urban InfrastructureConditionIndex Urban InfrastructureConditionIndex Urban InfrastructureConditionIndex Urban InfrastructureConditionIndex Urban InfrastructureConditionIndex aiain % of HH with access to flush or ordinary toilet municipality the by collected waste of % Management Waste Solid Type Housing Sanitation % of HH with access Connection toElectricity piped water supply Water Supply Coverage Road Topped Hard od est Ratio lengthbuildable into of roadKm. the of area in DensityRoad Indicator Measure Measure Indicator Weightage settlement development settlement development settlement development settlement development settlement development Physical infrastructure Physical infrastructure Physical infrastructure, Physical infrastructure Physical infrastructure % of HH with RCC roof lighting of source as the electricity % of using HH municipality the in road of length total to the road topped of black % of length KmSq. % of wards with >10ppha density Remarks Remarks Annual Budget Annual Budget urban infrastructuredevelopment urban infrastructuredevelopment urban governanceandadministrationthroughMoFALD. and infrastructuredevelopmentsupportedbyMoUD,while and inevitable. management, urbantransport,andenergyisnecessary, supply, sanitation,sewage,drainage,solidwaste urban infrastructuredevelopment sweeping empowermentofMoUDtoundertakean city developmentevermoredifficult.Forawayforward, development. Thisimpedestorealizethegoalofplanned and oversightoftheMinistrytoleadcoordinatedpath fragmented setupofurbanspace—butweakenedauthority given theemergenceofmultitudesstakeholdersand has cometoberestricted.Thislimitationisallthemorevisible coordinated urbaninfrastructureplanninganddevelopment effectiveness. TheeffectivenessofMoUDtoundertake implementation capabilitiesvis-à-visoperationalefficiencyand authorities andoversightsconstraintheMinistry’svital from itsorganizationhasimplications—asfragmented The splitofMoUDanddetachmentitsimplementingarms in December2015. which isabouttwo-thirdofitsconsolidatedbudgetpriorsplit year 2016-2017,MoUD’sannualbudgetisNPR23.7billion— total annualbudgetwasNPR819.5billion.Inthisfiscal share was4.4%,whileDUDBC’s80%.Government’s budgetwas NPR35.4billion,ofwhichtheMinistry’sown NPR 8.84billion.Beforesplitofwaterandsanitationsector, For FY2015/16,Ministryhadatotalallocatedbudgetof • • • 2.8.6 MajorIssues Remarks Annual Budget at theprojectlevel.Lackoftechnicalexpertiseandcapacity. though theysharesameurbanspace.Temporary coordination urban infrastructuredevelopment urban infrastructuredevelopment Remarks Remarks Annual Budget Annual Budget

2.7UrbanLivabilityIndex: 2.7UrbanLivabilityIndex: 2.7UrbanLivabilityIndex: No coordinationmechanismsbetweenMoFALD andMoUD 2.7UrbanLivabilityIndex: 2.7UrbanLivabilityIndex: Legal basisinadequatetomanageandgovernlargeurban Fragmented institutionalarrangement—urbanplanning comprising ofwater

0.15 0.15 0.05 0.15 0.15 0.20 0.05 0.15 0.10 integrated integrated integrated integrated integrated

region such as clustered city region and urban industrial Urban character is the percentage of number of wards within corridor comprising several local bodies. the municipality with population density more than 10 ppha. The value for municipality with all wards having density more • Inadequacy of KVDA Act 1988—voluntary nature of than 10ppha (i.e. 100%) is set as 100. Similarly, the value cooperative planning. for national urban average 63% is set as 50 and for • Town Development Act 1988—inadequacy to deal with issues municipality without any wards with density more than of New town Development. 10ppha is set as 0. (Annex 9.b)

• Federal (re) structuring and its implications for urban Road density is computed as ratio of length of road in km to governance, particularly the relations between the central buildable area in sq km of the municipality. The value for government and the municipalities 15 km/sq km road density and for 0 km/sq km is set as 100 and 0 respectively.(Annex 9.c) Similarly, condition of hard 2.9 Urban Infrastructure Condition Index topped road is calculated as percentage of length of black topped road to the total length of road in the municipality. As a preliminary attempt and for the sake of comparison of The value for 100% hard topped road and for national urban urban character and infrastructure conditions of average (i.e. 25%) is set as 100 and 50 respectively. (Annex municipalities an Urban Infrastructure Condition Index (UICI) 9.d) has been created. Water supply coverage is calculated as percentage of HH The urban infrastructure indicator includes road density, with access to tap and piped water within a municipality. hard topped road, water supply coverage, electricity The value for 100% and 25 % coverage is set as 100 and50 connection, sanitation condition, housing type and solid respectively (Annex 9.e). Similarly, electricity connection is waste management in municipality. While urban character calculated as percentage of HH using electricity as the source includes percentage of urban area within municipality (i.e. of lightning. The value for 100 % and 75 % electricity ward density > 10 ppha density). coverage in the municipality is set as 100 and 0 respectively Computing UICI (Annex 9.f). Likewise, sanitation is computed by percentage of HH with access to flush or ordinary toilets in the Each indicator is given certain weightage based on their municipality. The value for 100% access and 75% access importance in urban development (Table 2.20). Water supply is set as 100 and 0 respectively (Annex 9.g). Further, coverage and road condition (linkage) of the municipality housing type is calculated by percentage of households with are the basic indicators of development, thus are assigned RCC roof in the municipality. The value for municipality with highest weightage i.e. 0.20 each. They are followed by with 100% households with RCC roof and National Urban other basic services such as electricity connection, sanitation Average (i.e. 45%) is set as 100 and 25 respectively (Annex and solid waste management indicators with 0.15 weightage 9.h). Finally, solid waste management is measured as each. These indicators show the existing condition of basic percentage of waste collected by the municipality. The value services and infrastructures in the municipality. Similarly, for 100% and 0% collection of waste is set as 100 and 0 0.10 weightage is assigned for urban character and 0.05 is respectively (Annex 9.i). The values for all municipalities is allocated for housing type indicator.(Annex 9.a) computed by interpolation for all indicators based on the Table 2.20 UICI for Kathmandu Metropolitan City set values. Indicator Computed Value Weightage Index value of UICI (out of 100) Indicator

Urban Character 100 0. 10 10

Road Density 100 0. 15 1 5

% of hard topped road 80.1 0. 05 4

Water Supply Coverage 80 0. 20 1 6 91 Electricity Connection 93.2 0. 15 14

Sanitation 95.7 0. 15 14 .4

% of Pakki House (RCC roof) 73.5 0. 05 3.7 Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Waste Collection 90.8 0. 15 13 .6 Existing Urban Development Conditions Existing Urban Development Conditions

53 54 54 54 54 54 Existing Urban Development Conditions Data Sources Data Sources (Biratnagar, Janakpur, Birgunj,Bhairahawa,Nepalgunj) (i) Bordertownsthrivingontrade, servicesandindustrialization influenced by: of Nepal’surbansystemin thepost1950periodwas and long-distanceentrepottradeinNepal.Theorientation autonomous urbansystembasedonproductiveagriculture Historically Kathmanduvalleyexemplifiedtheonly resources anddisseminationofinnovationstechnology. and contributestotheeffectivemobilizationofproductive integrated systemiseconomicallyefficient,spatiallyarticulate systems derivesfromthefactthataregionallyandnationally economic activitiesinpotentialareas.Theinteresturban policy environmentthatfacilitatesthedevelopmentof extent towhichtheseresourcesaremobilized,and(iv)the people, goodsandservices,(iii)regionalresourcesthe production potential(ii)thecomplimentarilyinflowof road infrastructurethatlinksmajorsettlements,andareasof the growthofurbansystemare(i)networkandquality and services,capitaltechnology. Thefactors thataffect as thedataregardingsolidwastecollectionisnotavailable. Dipayal SilgadhiandTriyuga arenotincludedintheranking for thetimebeing.ThefourmunicipalitiesRajbiraj,Khadbari, only 8points.Further, productivityhasnotbeenconsidered Butwal andBhaktapur. Gulariyastandslastinthelistwith Kathmandu hasthehighestvalue(Table 2.21),followedby The UICIfor58municipalitiesisshowninAnnex10. structure andothermeasuresofproduction. index canbeexpandedbyincludingindicatorsforoccupational become availablethesecanbeincorporatedintheindex.The per capitaandavailabilityofpublicopenspace supply andconsumptionpercapita,electricity The UICIisfarfromcomprehensiveandasdataonwater Data Sources: distribution andconsumption,movement functioning ofthespaceeconomyintermsproduction, one anotherandcontributingtotheefficientintegrated settlements andtheirhinterlandsfunctionallyinter-linked with An urbansystemisanetworkofdifferentorder waste collectedbymunicipalities topped roadinmunicipalitiesandSWMTSCfor%ofsolid Department ofRoads(DoR)forroaddensityand%hard population densityinmunicipalities.Otherdatasourcesare to toilet,NumberofHHswithpakkiroofandwardlevel HH connectedtogridline,Numberofhouseholdwithaccess (HHs) datasuchasAccesstopipedwatersupply, Numberof Data Sources Data Sources

2.10 NationalandSub-NationalUrbanSystem 2.10 NationalandSub-NationalUrbanSystem 2.10 NationalandSub-NationalUrbanSystem 2.10 NationalandSub-NationalUrbanSystem 2.10 NationalandSub-NationalUrbanSystem The datasourcesincludeCBSforhouseholds of people, goods ii T (iii) (ii) centred) andthecentre(Kathmandu, Pokhara,Butwal, linkages intheregionalurbansystems oftheeast(Biratnagar means enhancedproduction, consumption anddistribution integrated nationalandsub-national urbansystem.This A majorobjectiveofNUDSis topromoteanefficientand through publicandprivatesectors. to induceinvestmentandpromoteeconomicactivitiesboth lack ofidentificationandmobilizationregionalresources the hillhinterland,relativelylowpopulationdensity, and of roadinfrastructurelinkingtownsandmarketcentresinto services isstillveryweak.Thiscontributedbypoorquality distribution andthecomplementaryflowofgoods level ofintegrationintermsproduction,consumptionand the entiremid-westernandfar-western hillregions.Butthe core oftwonascentregionalurbansystemsencompassing economic regionsNepalgunjandDhangadhiconstitutethe hills andTarai. Intermsoffunctional importanceforrespective Damak-Kakadbhitta andthesmallerurbancentresin which functionallylinksBiratnagar-Itahari-Dharan-Inaruwa- The secondistheeasternurban-systemfocusedonBiratnagar Birgunj rectangle. Kathmandu-Pokhara-Butwal/Bhairahawa-Bharatpur/Hetauda- The firsttakesintoaccountthecentralregioncomprisingof two relativelyintegratedregionalurbansystemsinNepal. on roadlinkagesandtheflowofgoodsservicethereare centres ofthesixeconomicregionsarebasedinTarai. Based of theeconomicregionsvaryconsiderablybutcoreurban regions inthehills.Thedynamismandlevelofintegration Kathmandu andPokharaaretheonlymeaningfuleconomic Kathmandu, Birgunj-Bharatpur, Nepalgunj,andBiratnagar. Dhangadhi, Nepalgunj,Siddharthanagar-Butwal, Pokhara, hinterland ofmajorurbaneconomiccentresinNepal,namely, ADB 2007)identifiedeighteconomicregionsbasedonthe road locationsintheeast-westhighway. A2007study(NPC/ south, alongtheborderwithIndia,foothillsandcross- and Pokharaallmajorurbaneconomiccentresareinthe north orientation.WiththeexceptionofKathmanduvalley The settlementhierarchyinNepal(Map)showsasouth- to favorthelatter. the productionpotentialanddemographicshiftcontinues region remainmuchlessdevelopedcomparedtotheTarai as favorable locations.However, theurbanpotentialofhill the impetusforgrowthoftradeandservicecentresin north-south roads,andotherhighwaysinthehillsprovided Since the1970sconstructionofEastWest highway, major Butwal) Break-of bulktownsalongthefoothills(Dharan,Hetauda, often thrivingonadministrativefunctions. rade andservicecentresalongmajornorth-southtrails Bharatpur, Birgunj centred) on the one hand and Major Issues strengthened urban systems centred on Nepalgunj and Two distinct relatively integrated regional urban systems – in Dhangadhi in the mid and far west, on the other. the centre and the east - are discernible on the basis of the It is possible to discern a generalized functional hierarchy of flow of goods and services. The urban system in the mid and settlements based on the major urban/economic centres in far west is fragmented with relatively weak links with the Nepal. Each tier of settlements has an important role to play hinterland. The major challenge is to facilitate and strengthen in the development and the mobilization of hinterland the integration of the urban system in the mid and the far resources. The hierarchy extends from the major economic west with the central urban system comprising Kathmandu- centres of the Tarai and the hills to second and third tier Pokhara-Butwal/Sidhdharthanagar- Bharatpur- Birgunj. This settlements in the Tarai, hills and on to the mountains. There can contribute to the development of a regionally balanced is also significant overlap in the hinterland of the settlements. urban system, and the integration of the economy of the The status of settlement is determined by road access, mid and far west with that of the rest of Nepal. locational advantages and commensurate bulking, distribution and service and often administrative functions. There are some positive trends in the development of the The implications of promoting an integrated national and regional urban system in the mid and the far west. First, as sub-national urban system are that the advantages of a result of hill-Tarai migration the urban potential of the mid settlements in the hierarchy need to be strengthened by and the far western Tarai is enhanced mainly due to the focusing on critical infrastructural investments with the increase in population density. Second, the process of urban potentiality to unleash the comparative and competitive corridor development (Nepalgunj-; Dhangadhi- advantages. Where there are evident gaps in the hierarchy, Atariya) is picking pace with potential for the development it may also be essential to promote selected settlements to of non-farm and small-medium scale industrial development. perform the requisite functions. To build on these trends the major issues for consideration are as follows:

Table 2.22 and Map 2.7 presents a summary of the settlement • Mobilization of regional resources with comparative and hierarchy based on major economic centres and is based on competitive advantages for strengthening regional urban 2007 NPC/ADB study and small towns and market centres systems identified along major road networks (source: DUDBC, 2011 • Quality road access with the hinterland and DWSS, 2009). • Strengthening inter-urban road linkages

• Promoting higher order service functions in provincial and regional economic centres to generate agglomeration economies.

• Strengthening urban planning and governance mechanisms. Table 2.21 Planning Norms and Standards, 2013 has categorized urban area into five classes based on the population. (MoUD, 2013) Category Class Population

Metro City Class 1 > 300,000

Sub-Metro City Class 2 100,000 - 300,000

City (Municipality) Class 3 40,000 - 100,000

Sub-City (Small Town) Class 4 10,000 - 40,000

M arket Center Class 5 50 Shops @ 100m from centre

Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions

55 56 56 56 56 56 Existing Urban Development Conditions

MAP 2.7 SETTLEMENT SYSTEM RELATIONSHIP

Kusumba (T), Noulapur (T), Kusumba bazaar (Sanoshree) bazaar (T), Kusumba Noulapur (T), Kusumba Small towns/ market centres served by second or third tier tier third or second by served centres market towns/ Small centres Martadi (M), Phulbari (T), (T), Pahalwanpur (T), (T), Pahalwanpur (T), Bhajani (T), Phulbari (M), Martadi Narayanpur (T), Kolti (M), Nawagau (H), (H), Markhu (H), (H),Patan (H), Budar Shahajupur (T), Sukhunda (T) [13] (M), Gamgadhi Chhinchu (M), Simikot (T), (M), Manma (M), Bhuregon Dunai (T), (H), Khalanga Jajarkot (H), Musikot Pokhar (T), Maina Kusum (H), (T), (IT), Khajura Puraine (T), (T), (IT), Basapani (T), Basgadhi (T), Gumi (IT), (H), Grute Tribeni (H), Naumule Toli (H), (T), Jaisapur Bidhapur (IT), Babiyachaur (IT), Bandichour (IT), Abalparajal (IT), Tarigaun (IT), Rakam Mehelkuna (IT), (H), Ramghat [32] (H) Karnali LamahiBhaluwang (IT), (IT), Lalmatiya Santipur (IT), (H), (H), Jhadewa (H), Khalanga Pyuthan (H), Ridhibazar Dumre (H), Dovan (T), Pharsatikar (T), Sauraha-Farsatikar (H), Marichour (H), Turang (H), Baletaksar (H), Argali (H), Khudi (H), Dartigau (H), Thwang (H), Mijhing (H),Sulichaur (H), Bhingrikot (H), Narayanpur (IT), Balewa (H), Ghamir (H), Burtibang (H) [25] Maharajgunj(T), Bahadurgunj (T),Konihawa (T), Shankarpur Susta Tripeni (T), (T), Dumkibas (T), Dhakdahi (T), Amurwa [8] (T) Tal (M), (M), Dharapani (M), Pisang Chame (H), Abukhaireni (M),Manang (M), Kuncha (H), (H), Turture (H), (IT), (H), Kuringhat (H), Arughat (H), Karmohariya Bhansar (H), (H), Devghat Kaphal (IT), (IT), Mugling Phaksin (IT), Partihani (IT), Jagatpur (IT), Gitanagar (IT), Meghauli Basantapur(H), (IT), (T),Mangalpur Baruwa Parsadhap (IT), Lothar (IT), (IT), (T), Khurkhure (IT), Gautamnagar Rampur Tandi (IT), (T),Rajahar Galtari (T), (T)[33] Madanpur Narayan (H), Sharada (H), Jumla (M) (M) Jumla (H), Sharada (H), Narayan [4] (H) (), Third tier urban centres directlytier Third connected to centres urban secondurbanor tier centresmajor (H), Jayprithivi (M), Api (M), (M), (M), Api (H), Jayprithivi Mangalsen (H), Dasharathchanda (H), Rajapur (T), (T), (T), Lamki Chuha (T) [9] (T), (H), Liwang Pyuthan (H), Resunga (T), (T), Tilottama (T), Shivaraj (H) [7] (IT), (IT), Chitrawan (T), (H), Bandipur (H), Gorkha (T), Gaindakot (H), Beshisahar (T) Devchuli [8] Krishnanagar (T), Bardaghat (T), Sunawal (T), (T), (T), Sunawal Bardaghat (T), Krishnanagar [4] (T) Sanskritik Gulariya (T), Birendranagar (T), Birendranagar Gulariya (IT), Tulsipur (IT), Kohalpur (T) [4] Second tier centres urban todirectlymajor connected urban and area mainly partly or served by it Amargadhi (H), Dipayal (H), (H), Amargadhi Attaria (T), (T), Tikapur [4] Tansen (H), Sandhikharaka [3] (IT) Ghorahi (H), [2] (H) Dumre (IT), Ratnanagar Kapilbastu (T), Ramgram (T) Ramgram (T), Kapilbastu [2] Urban Centre Hierarchy Urban Centre Hierarchy Urban Centre Hierarchy Urban Centre Hierarchy Urban Centre Hierarchy

Dhangadhi (T) (T) Dhangadhi (T) Butwal (IT) Bharatpur Major urban area (criteria: (criteria: area urban Major pop size, urban% using functions: criteria,10pph economic-commercial. administrative, industrial) able 2.22 able 2.22 able 2.22 able 2.22 able 2.22 1 (T) 2 Nepalgunj 3 5 4 Siddharthanagar (T) 4 Siddharthanagar T T T T T Existing Urban Development Conditions Existing Urban Development Conditions Sn. Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions No. No.

57 58 58 58 58 58 Existing Urban Development Conditions

Jomsom (M), Hemja (H), Kagbeni (M), Mallaj (H), Rampur- Bihunkot (H), Falebas (H), Tilahar (H), Bhorletar (H), (H), (H), (H), Putali bazaar (H), Byas(H), Beni 6 Pokhara valley (H) Bharatpokhari (H), Partighat (H), Ganapar (H), Jamune (H) [3] (H), Chapakot (H), Rampur (H) [6] Bhanjhyang (H), Ganadhi (H), (H), Hawas (H), Jagatradevi (H), Galyang (H) [17] Amalekhaganj (T), Auraiya (T), Barathawa (T), Baiyarpur (T), Rangapur (T), Gunjbhawanipur (T), Karmaiya (T), (T), Vijaypur (T), Murtiya (T), Pokhariya (T), Rajpur Farhadwa (T), Samanpur (T), Kathariya (T), Vishwa (T), Baluwa (T), Basantapur (T), Belauni (T), Dumarbana (T), Kaliaya (T), Gaur (T), Nijghad (T), Jitpur (T), Chandranigahapur (T), 7 Birgunj (T) Dumriya (T), Gangapripra (T), Garuda (T), Jagatpur (T), Malangawa (T) [3] Hariwon (T), (T), (T) [6] Jaimangalpur (T), Jaitpur (T), Kachaurba (T), Katariya (T), Kolvi (T), Maghopur (T), Majhariya (T), Mangalpur (T), Matihani (T), Parawanipur (T), Parsauni (T), Phulbariya (T), Piparadhikot (T), Rampur (T), Simraunghad (T), Sivanagar (T), Umjan (T) [40] Bhaise (IT), Harnamadi (IT), Hatisude (IT), Hatiya (IT), Jureli (IT), Jyameri (IT), Manahari (IT), Markhu (IT), 8 Hetauda (IT) Thaha (IT) [1] Kulekhani (IT) , Bhimphedi (IT) [2] Phapharbari (IT), Phedi Belghari (IT), Ratemate (IT), Shreedhur Chatiwan (IT), Padampokhari (IT) [13] Barhabese (M), Lele (H), Chapagau (H), Bungamati (H), Khanalthok (H), Dhunche (H), Gajuri (H), Betrabati (M), (H), Lukla (H), Ranipauwa (H), Lubhu (H), Manthali (H), Bhakundebesi (H), Naubise (H), Ramechap (H), Banepa (H), Dhulikhel (H), Sainbu (H), Pharping (H), Shyaphrubesi (H), Thankot (H), 9 Kathmandu Valley (H) Panauti (H), (H), (H), Nilkantha (H), (M) [3] Bajrabarahi (H), Nala (H), Bhatta Danda (H), Chandanpur Bhimeshwor (M) [5] (H), Dhapakhel (H), Godamchour (H), Harishiddhi (H), Imadol (H), Lamatar (H), Nigale (H), Ratamati (H), Siddhipur (H), Sunakothi (H), Taukhel (H), Thecho (H), Thiba (H), Tikathali (H), Baireni Galchi (H) [38] Badabela (T), Bandipur (T), Belha (T), Chaharwa (T), Devpura (T), (T), Karjunha (T), Khajuri Chanha (T), Kuleshwor Dumja (IT), Laxmi Niwas (T), Madar (T), (T), Dhanushadham (T), Jaleshwor (T), (T), Nagaraien (T), Raghunathpur (T), Ratamata (IT), Sarashowr 10 Janakpur (T) (T), Gaushala (T), Katari (IT), Kamalamai (IT) [3] (T), Sarpahi (T), Satosar (T), Tarapatti (T), Yadukuwa (T), Siddhicharan (H) [6] Gol Bazar (T), Bandipur (T), Vishnupur (T), Dudhouli (IT), Kapilakot (T), Khairmara (T), Dumja (IT), Matihani (T), Fulgama (T), Sabaila (T), Sallusaleri (M), Khurkot (IT) [31]

Guruwa (T), Sitan (T), Sukrabare Dargabari Sibagaj (T), (T), Goldhap (T), Rajghad (T), Jhapa (T), (T), Banibagi Bagan (T), (T), (T), Budhabare Charali (T), Garamani Himalichok (T), Pashupatinagar Rake(H), Jamuna (H), Deurali (H), Bajar (H), Nepaltar Puwakhola(H), Bipalate(H), (H), Nayabajar Chisapani (H), Panchami (H), Dasami (H), (H), Dhurbese Pachami(H), Purano Panchami (H), Kanpokhari (T),Kerkha (T), Jhiljhile(T), Dudhe (T), Durgapur (T),Karkichok (T),Bhedmadiya (T), (T), (T),Demravitta (T),Sijawa (T), (T),Gauriganj Campabajar (T),Khajurgachi (T), (T),Banigram (T),Haricha (T),Dagohat (T), (T), (T),Nayabajar (T),Ramnagar (T),Ghusko (T),Chimando barrage (T),Koshi (T),Kalbanjar (T),Jhanjharpur (T),Madhuban (T),Mokraha (T),Chakraghatti (T),Rajabas (T),Jankaspur(T),Pato (T),Phatepur (T),Narghau (T),Bhardaha (T),Kusaha (T),Katauna (T),Malahaniya (T),Thandi (T), (T), Jhumka Bastipur (T),Asanpur (T), (T), (T), Bayerban (T),Bhagwanpur(T), Mohanpur(T), Gobindapur Dewanganj (T), Dhangadhi (T), Gaurad (T), (T), Kalyanpur BhantabariHarinagar (T), (T), aha (T), Hanumannagar (T), Letang (T), (T), Bazar (T), Keraun (T), Fatepur (T), (T), (T), (T), Chakragatti Rajghat (T), Rupani (T), (T), Karsiya Bazar (T), [96](T) Bajar(T),Tankisnuwari Kerkha Basantapur (H), Chatara Ghat (T), Baraha Chetra (T), (T), Chetra Baraha (T), Ghat Chatara (H), Basantapur Ankhibhui (M), (M), Kharang (T), Bayarvan Bhlayatar (T), Pokhari Hedangna Num (M), (M), Saiduwa (M), (M), bazaar (M), Madirambeni(M) [13] Inaruwa (T), (T), Mechinagar Bhadrapur (T), Ilam (H), Suryodaya (T), Kankai (T), Sani-Arjun Pathari- (M), Taplejung Phidim (H), (H), Sanischare (T), Urlabari (T), Rangeli (T), (T), (T), Belabari Sundar-Dulari Koshi-Haraicha Kanchan-Rup (T), (T), Duhavi- (T), Weltar-Bashaha (IT), Triyuga (T), (IT) [20] Myanglung (H), Bhojpur (H), Diktel (H), (H),(H), Diktel Bhojpur (H), Myanglung Khadbari (M), Chainpur (M) (5) Itahari (T), Damak (T), (T), Birtamod (T), [5] (T) Lahan 12 36 80 359 Biratnagar (T)

11 Dharan (T) (1) (H) Dhankuta 12 Tarai T- Tarai, Inner IT- Hill, H- Mountain, M - Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Source: NPC/ADB(2007), DUDBC, DWSS(2009)

59 60 60 60 60 60 Existing Urban Development Conditions

Table 2.23 Major Economic Centres: Locational Advantages, Economic Base and Regional Potential

Economic Centres/Region Locational Advantages Economic Base Regional Potential

Kathmandu valley Capital region; highways linking major Tourism, trade, foot loose Nature, adventure tourism; high value horticultural economic centres and hinterland, manufacturing, handicraft crops; high value low bulk and low environmental Pop. 1,426,641 international air connection impact industries; educational and health services

Pokhara valley Valley location in the mid hills Regional service/trade; tourism Tourism hub, cultural centre; high value crops (fruits, commanding a large service off-season, vegetables etc.); handicrafts and small Pop. 314,281 hinterland; road connection to manufacturing enterprises in tourist related industries. Kathmandu and Tarai

Dhangadhi Nearness to the Indian border and Emerging manufacturing and services Wildlife and adventure tourism; high value crops, non road connection to the east-west centre timber forest products; agro based small manufacturing Pop. 101,970 highway enterprises.

Nepalgunj Nearness to the railhead along the Trade/services centre High value crops; herbs and rare medicinal species, non Indian border; road connection to the timber forest products; agro based small manufacturing Pop. 72,503 east-west highway and the mid enterprises; wildlife and remote location tourism western hills

Butwal Foothill cross-road location along the Trade/services and emerging High value crops (ginger and coffee); citrus fruits; off east-west highway and Siddhartha manufacturing base season vegetables; transportation hub; Pop. 118,462 highway commanding the western hills

Siddharthanagar Nearness to the railhead along the Trade/services; potential tourism Religious tourism; export based industries; trade related Indian border; road connection to the activity; Pop. 63,483 foothills and beyond Recreational (tourism); Service (health and education)Service and (health Recreational (tourism); hub High valuecrops (vegetables, Fruits); industries; activities and agro cross border industries; processing (cultural) tourism Transportation hub; export based industries export based industries hub; Transportation Tourism ; service hub (education and health) etc). herbs crops (tea, value Trade and services; emerging manufacturing potential sector; tourism a but has limited Trade/service hinterland Trade, manufacturing manufacturing Trade, Services/trade Trade/services and manufacturing andTrade/services manufacturing manufacturing, high trading and bulk centre; Industrial Foothills in the Inner Tarai; located located the Tarai; Inner inFoothills along the east-west highway; road and Kathmandu connection to productive large western hills; base agricultural along the railhead the Nearness to road connection to Indian border; highwayeast-west Foothills Foothills in the inner Tarai; cross- east-westalong the road location the and hills highway the location commanding Foothill eastern hills; road connection to east-and highway Biratnagar west Traditional industrial region; nearness region; nearness Traditional industrial border; Indian railhead the the in to hinterland, agriculturally productive to and Kathmandu air connection eastern hills Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Existing Urban Development Conditions Bharatpur Pop. 143,836 Hetauda Pop. 84,671 Janakpur 97,776 Pop. Dharan Pop. 116,181 (2007) NPC/ADB Adapted from Biratnagar Pop. 201,125

61 62 62 62 62 62 Existing Urban Development Conditions Summary Summary Analysis ofurbanenvironmental conditionalsohighlights Gulariya standsatthebottom oftheindexlist. Metropolitan cityhasthehighest valueofUICIwhereas infrastructural conditionof municipalities. Kathmandu municipalities. UICIprovidesatoolforcomparisonof Index (UICI)hasbeenformulatedandcomputedfor58 of variousmunicipalities,UrbanInfrastructureCondition areas. Intheprocessofdetermininginfrastructuralstatus production cannotmeetthebulkelectricitydemandofurban with annualrateofincrement9%.However, therateof of electricityisthehighestinurbanandindustrialcorridors, is apparentandexaggeratedintheurbanarea.Thedemand municipalities. Thepresentconditionofnationalenergycrisis low roadcoverageshowtheruralextentofmost urban areasis3.26km/sqkm,whichquitelowandrelatively key concernofurbantransport.Theaverageroaddensity Inadequate andinefficienttransportinfrastructureisthe growing percentageofsquattersettlementsinurbanareas. concern forurbanhousingsector, whichisevidentinthe settlements andlackofaffordablehousingisthemajor practice controlledwastedumping.Increasingsquatter municipalities, only6havesanitarylandfillsitesand5 households havingaccesstotoilets.Likewise,outof58 households haveaccesstosanitationsystemwith88.2% management arealsocritical.Only56.1%ofurban annually. Theconditionofsanitationsystem and solidwaste NRs 3500isrequired,amountingto75billionperannum supply andsanitationby2017AD,percapitaexpenditureof urban regions.Inorder, toimprovethesituation ofwater quality andquantityofdrinkingwaterisinsufficientinall as comparedto81.2%ofhouseholdsinurbanhill.However, households haveaccesstopipedwatersupplyinurbanTarai in caseofaccesstopipedwatersupply. Only32.9% of housing, transportandenergy. Ecologicaldisparityisevident situation ofwatersupply, sanitation,solidwastemanagement, Deficiency ofurbaninfrastructuresishighlightedbythe neighborhood environment. incompatible landuses,declininglevelofamenitiesand form isbecomingincreasinglydisorganized,mixedwith with thepopulationsizeofmunicipality. Theevolvingurban municipality. Further, itisobservedthatthedensityincreases Kathmandu and2.57pphaaslowestinKamalamai distributed inawiderangewith362.4pphaashighest urban land.Thepresentwarddensityofmunicipalitiesis incomprehensive zoningregulationscharacterizethecurrent market, faultedlandacquisitionandcompensation and form.Landfragmentation,unregulatedurbanland of currentnatureandcharacteristicsurbanland,densities governance, financeandinvestmentthroughanalysis basic dataonurbaninfrastructure,environment,economy, The existingurbanconditionsarereflectedthroughavailable Summary Summary Summary fragmented withrelativelyweaklinkstheirhinterlands. However, theurbansysteminmidandfarwestis the centreandineastbasedonflowofgoodsservices. system, tworelativelyintegratedsystemscanbeobservedin Regarding theexistingnationalandsub-nationalurban of urbangovernance. lack oftechnicalexpertiseandcapacityarethemajorconcern uncoordinated mechanismsbetweenMoFALD andMoUD (MoFALD). Fragmentedinstitutionalarrangement, while urbangovernanceandadministrationinanother and infrastructuredevelopmentunderoneumbrella(MoUD), also vital.Thecurrentarrangementhasputurbanplanning financial conditions,issueofgovernanceinmunicipalitiesis Apart frominfrastructure,environmental,investmentand of municipalrevenueisaccruedfromgrants. accounts toonly30%ofthetotalrevenueandnearly70% mobilized. Ownsourcerevenueofthemunicipalityinaverage is alsoveryweakandrevenuepotentialhasnotbeenfully In thepresentcontext,revenuebaseofmunicipalities on existinganddesirablestateofmunicipalities. NRs 918billionisestimated. investment isestimated,whilefor159newmunicipalities deficit in58municipalities,staggeringNRs372.94billion its GDPgrowthrate. in generatingwealthandemploymentopportunitiesboost to investineconomicdevelopmentofurbanareasthathelps urban centers.Therefore,itprovidesstrongerjustification 30% comesfromtheVDCsatproximitytoorservedby made up33.1%ofnationalGDP(NPC/UNDP2014)and significant. TherecentGDPdatabyCBSshowsurban economy. ItscontributioninthenationalGDPisquite Urban areasareregardedastheenginesofgrowthand Kathmandu and0.06%inLalitpur. municipalities showsableakpicturewithonly0.48%in indicator. Theproportionofopenspaceinmajor etc. Rapiddepletionofopenspacesinurbanareasisakey enhancing socio-culturallike,preservationofopenspaces, includes copingwithdisasters,providingsafetyandsecurity, and fundingmechanismstomanageurbanenvironmentthat The municipalitieslackinstitutionalcapacity, properplanning like anyotherdocumentsitfallsshortinimplementation. document toaddressenvironmentissuesinurbanareas,but Environment ManagementGuidelinescanbeastrong natural, andsocialenvironment.TheexistingUrban the criticalconditionofurbanareasintermsphysical, In ordertomeettheinfrastructural The amountiscalculatedbased Key Points

 NUDS is not limited to physical development, but aspires to attain a qualitative vision for future cities that reflects highest values of a society. Chapter 3  NUDS has set milestones which also serve as development indicators within each theme. INTENDED  NUDS also attempts to estimate investment required to achieve the URBAN SYSTEM desirable conditions set in terms of infrastructure and service delivery. AND MILESTONES  The total estimated investment required for all the municipalities in projected period of 15 years is beyond the capacity of the local body. Hence, the possible sources of funding have been identified. These include the central government, municipality, community, private sector and development partners, each with different share of contribution.

Baneshwar - Babarmahal road section in Kathmandu.ndu. Photo credit: Angad Dhakal, 2014

3.1 Guiding Principles

The conditions in Nepal’s urban areas presented in Chapter 3.1.4 Green: Strategies for urban development should 2 reveal a concern with basic conditions of infrastructure, be guided by three key considerations, namely, keeping the environment, economy and finance of municipalities. These city green, cool, and wet. The thrust should be in saving, conditions fail to convey the qualitative aspects of urban life protecting, promoting greenery – green parks, green open and living. National Urban Development Strategy should spaces, urban agriculture, forestry and so forth. Cities should necessarily be guided by the need to improve current physical promote land use, technology and material that would conditions, but more than that it has to articulate a qualitative contribute to low carbon emission, increase the use of vision of urbanization and urban development for the future alternative energy, reduce the effects of urban heat islands so that cities and towns also reflect the highest values of a and lower ambient temperatures. Similarly cities should society. promote and protect clean water bodies – ponds, wells, rivers, The five underlying and interconnected guiding principles canals that contribute to blue convection and survival of for the National Urban Development Strategy are: aquatic life, and urban biodiversity and contribute to recharge ground water. 3.1.1 Sustainability: The strategies outlined should 3.1.5 Efficient: seek to promote environment, social and economic A sustainable, inclusive, resilient and sustainability of urban development. This means that urban green city can only be one that is efficient, well governed development initiatives should be environmentally sustainable, and effectively managed. Urban development strategy should i.e, should not have negative externalities and should not therefore be guided by three basic concerns of governance: over-stretch the capacity of the environment to sustain itself. enhanced capability and technical competence of local Social sustainability refers to the nurturing and development bodies, institutionalization of a system of transparency and of social capital which minimizes alienation and contributes accountability in the urban planning and development to vibrant social life in the city. Economic sustainability refers process, and a citizen oriented delivery of services and to the promotion of environment friendly economic activities development outcomes. that can be sustained with minimal support from outside. 3.2 Intended National and Sub-National 3.1.2 Inclusivity: Cities have to be socially inclusive Urban System both in terms of ethnicity/caste and gender, and in terms of economic class. Inclusion should be reflected in the space Achieving a balanced and prosperous national and sub-national the city provides for the nurturing and celebration of social (provincial and regional) urban system should be the long term and cultural diversity and the sensitivity particularly to vision for Nepal. This implies (i) strengthening the sub-national disadvantaged and marginalized, and minority groups, and (provincial and regional) and national hierarchy of urban centres the poor and the youth in general. Inclusivity promotes social based upon the regional potential of population and the justice and contributes to equity and balanced development. mobilization of resources, and (ii) investment in the provision The increasing poverty trend in urban areas means that cities and quality of infrastructure and services in consonance with also need to be pro-poor in terms of attending to the needs resource potentialities. A balanced and integrated national and of the poor and addressing their basic concerns of education, sub-national (provincial and regional) urban system would health, housing and transportation etc. contribute to:

3.1.3 Resilience: Resilience refers to both physical • Diversification and specialization of the provincial and regional and social resilience so that cities are safer and adaptable to economy in terms of production and employment opportunities. changes, both environmental and economic. The major focus • Effective and efficient distribution of social and economic of the strategy should be on physical, social, economical infrastructure, services and human resources. and institutional resiliency that is pivotal for mitigating short or long term vulnerability resulting from disaster or the • Effective articulation of political, community, civil society regional/global impacts of climate change. Planning and organizations with respect to their economic, social, cultural urban development should enhance capacity to cope with and environmental aspirations and the quality of urban living. different types of hazards and absorb shocks and risks. • Strengthened production-distribution-consumption linkages Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones between urban and rural areas. Intended Urban System and Milestones Intended Urban System and Milestones

Note: The sub-national system refers to the provincial and regional urban system. 65 66 66 66 66 66 Intended Urban System and Milestones (Provincial andRegional)UrbanSystem (Provincial andRegional)UrbanSystem 3.2.2 3.2.2 3.2.1 3.2.1 (Provincial andRegional)UrbanSystem 3.2.2 3.2.1 regional urban system. of provincialurban centresandtothatextent influencethe hydro-power (inthehills)will also impactthefunctionalrole development ofagriculture, industries, bio-diversityand policies ofprovincialgovernment withrespecttothe advantages ofsmalltownsand marketcentres.Third,the urban hierarchyinsofarasit wouldredefinethelocational basic intra-provinceroadinfrastructure canaffecttheexisting provincial strategyofthedevelopmentandprioritization mobilization ofprovincial/regionalresources.Second,the the locationofsmallandmediumenterprisesbasedon centres willmostlikelypromoteeconomicfunctionsincluding general. Thepoliticalandadministrativefunctionsofthese investments ininfrastructureandurbandevelopment centres designatedtobeprovincialcapitalswillattractpriority urban systemforbasicallythreereasons:first,the for thenationalandsub-national(provincialregional) The federalrestructuringofthecountrywillhaveimplications institutionalized. for upgradingsettlementstomunicipalstatusis centres andsmalltownsaremonitoredanobjectivebasis a system(suchastheproposedCensusTowns) wheremarket occupational structure.Ithasbecomeimperativetoestablish relevant functionalcharacteristicssuchasdensity, contiguity, or municipaldesignationdonottakeintoaccountthemore to thedefinitionofurbanareas.Thecriteriatakenfor A majorconceptualandoperationalproblemiswithrespect national urbansystem. This willhelpachievethegoalofabalancedandintegrated facilitation forthegrowthofsmalltowns. (iii) provincialandregionalresourcemobilization provincial hinterland, (ii) improvedinfrastructurallinkageswiththeregionaland centres, (i) strengtheningthefunctionalbaseofmajoreconomic The policyfocuswouldbeon regionally integrated. system inthemidandfarwestwillbemoreestablished in theeastandcentrewillremaindominant,urban in Table 3.1.Thisshowsthatwhiletheregionalurbansystems economic centresforthemediumandlongtermispresented A tentativeprojectionofpopulationinthehierarchy system. major tasksinworkingtowardsabalancednationalurban of theresourceadvantageshinterlandwouldbe regional flowofgoodsandservicesthroughtherealization regional urbansystems,andstrengtheningprovincial Addressing thegapsinhierarchyofprovincialand (Provincial andRegional)UrbanSystem (Provincial andRegional)UrbanSystem 3.2.2 3.2.2 3.2.1 3.2.1 Federalization andSub-National Federalization andSub-National Defining UrbanAreas Defining UrbanAreas Federalization andSub-National Defining UrbanAreas Federalization andSub-National Federalization andSub-National Defining UrbanAreas Defining UrbanAreas Box 3.1:CensusT Box 3.1:CensusT governance. appropriate changesintheactsconcerninglocalself- settlements thatalreadyhaveaCTstatus.Thiswouldrequire will bethatmunicipalstatuscanonlyprovidedto reclassified fromurbantorural.TheadvantageoftheCT be adynamicclassificationasthesettlementcan unit forthedesignationofCTwillbeVDC.The of Statisticsonthebasiscensusinformation.Thelowest activities. TheCTwillbedesignatedbytheCentralBureau economically activepopulationengagedinnon-agricultural density of500personspersquarekm,and(iii)50% locality withapopulationof5000ormore,(ii) “census town”thesettlementhastofulfillthreecriteria:(i) designated urbanfunctionalcriteria.To bedeclareda for settlementsthatdonothaveamunicipalstatusbutfulfill The designationof“censustowns”(CT)maybeappropriate can beinitiated. as watersupply, sanitation,streetlighting,busparks,etc. for eventualdevelopmentofroadsandinfrastructuresuch such settlementscanbemonitoredandpreliminaryplanning The advantageofsuchasystemwouldbethatthegrowth municipalities. due coursecanattainthestatusofstatutorytownsor monitoring thegrowthoffunctionalurbanareaswhichin it seemsnecessarytodevelopanobjectivesystemof While municipalstatuswillalwaysremainapoliticaldecision, of population. rural characterintermsofdensityandoccupationalstructure newly declaredmunicipalitiestendtoreflectapredominantly to fulfilltherequisitecriteria.Theresulthasbeenthatmost manipulation asanumberofVDCscanbeclubbedtogether The populationsizecriteriaofmunicipalitiesisproneto the centralgovernmentonbasisofpoliticaldecision. municipalities arestatutorytownsgrantedsuchastatusby settlements tofunctionalurbanstatusinNepal.The There isnoformalprocessofmonitoringthegrowth Box 3.1:CensusT Box 3.1:CensusT Box 3.1:CensusT own own own own own

203 1 3,1 23 8,3 46 101,536 101,536 181,450 201,709 8 27, 011 2, 518, 798 density)

GR 5.00 3.43 3.43 3.43 2.70 3.00

20 21 2, 229 6, 210 62, 335 129 ,507 143 ,966 633 ,588 1,84 6,54 1

GR 5.0 0 3.4 3 3.4 3 3.4 3 3.0 0 3.0 0

2011 2011 1,591 1,591 4,621 38,268 38,268 92,433 10 2,75 3 47 1,44 9 1,3 42,6 67

- 9 ,530 3.5 13, 0 443 3.5018,9 63 203 1 3,5 83 13,1 65 158, 702 117, 824 184, 069 136, 992 1 ,572, 723

GR 5.00 3.43 3.43 3.43 2.70 3.00

- 20 21 2, 557 9, 796 97 ,429 84 ,095 131 ,376 104 ,952 1,10 6,15 3

GR 5.00 3.43 3.43 3.43 3.00 3.00

2 011 1 ,825 7 ,289 59 ,813 60 ,021 93 ,767 78 ,094 77 9,21 0

1 1 1 1 1 203 1 225,0 86 267,5 56 266,7 86 139,7 63 114,8 18 2 ,502, 600 5 ,396, 063

GR 6 .00 4 .50 3 .43 3 .43 2 .70 3 .00

202 1 99,75 3 85,43 5 125,687 125,687 172,286 190,413 1, 917, 286 3, 862, 172

GR GR 6.00 4.50 3.43 3.43 3.00 3.00

20 11 40, 648 4.00 60,16 9 4 .00 89,0 65 70, - 183 123,872, 503 5 46 5.50 .50 211,5 46 279,4.50 11 494 4.50 179 5,89 ,974 0 4 ,814 4.5 0 7 ,476 4.50 11,6 10 55, 159 4.50 85,66 0 4 .50 133,0 28 20 ,279 3.43 28 ,413 3.43 39,8 09 5 8,62 3.4 0 115,0 82 3 ,132 74 3.43 71, 197 144,797, 776 4 32 4.00 .00 214,2 39 42 ,637 3.43 59, 738 3.43 83,6 98 155,7 7 87 3.43111 9,36 ,190 3.4 0 3 63, 572 110 ,940 135 ,904 165,9 4 07 4.00112 .00 ,081 245,5 83 37 ,610 3.43 52, 695 3.43 73,8 30 226,5 57 3.43161 ,7013.4 11 3 5,41 1 420,7 4 00 4.00284 .00 ,210 622,7 39 45 ,648 3.50 64, 391 3.50 90,8 30 5 7,36 3.5 6 114,1 80 0 ,920 46 3.50 201 ,125270,23.00 95 3 .00 363,2 54 21 6,3373.00 290 ,739 3.00 390, 729 30 6,45 3.0 1 411 0 ,845553,4 3.00 85 Population of major city (10 ppha density) ward majorcity (10 Population of density) ward(10 ppha Second centre tier ward(10 ppha centres Third tier 1,426 ,641 2,741 ,939 Intended Urban Population Projection (2011-2031) Intended Urban Population Projection (2011-2031) Intended Urban Population Projection (2011-2031) Intended Urban Population Projection (2011-2031) Intended Urban Population Projection (2011-2031)

Valley Valley Butwal Butwal Birgunj Birgunj Dharan Hetauda Hetauda Ja na kpur Bharatpur Bharatpur Bhimdatta Bhimdatta Nepalgunj Biratnagar Dhangadhi Dhangadhi Population Kathmandu Growth Rate Major center TOTAL Urban Urban TOTAL Pokhara valley valley Pokhara Siddhartha Nagar Nagar Siddhartha able 3.1 able 3.1 able 3.1 able 3.1 able 3.1 T T T T T

1 2 4 6 8 3 5 7 9 10 12 11 13 SN.

Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones 1 The accounted population in Table 3.1 is the ward population in a municipality with density of 10ppha and above. In Small Towns and Market Centres, the wards with density of 5ppha and above are taken into account. Population growth rate of 2011, i.e. urban growth rate of 3.43 and national of 1.35 is taken as the base to project population for 2031 in order to achieve a balanced national urban system. The urban population projected for calculation 67 of ‘future investment need’ till 2031 is the total population of the municipality, thus is greater (about 25%) than the projected intended urban population. 68 68 68 68 68 Intended Urban System and Milestones

SN Major center Small towns/Market centres (5 ppha ward density) Total 2011 Total 2021 Total 2031 % of % of urban

2011 20 21 203 1 % of urban % of urban urban pop in cluster Growth Rate GR GR Bhimdatta 1 - - - 50, 178 0.79 73,612 0.8 6 108,0 27 0.94 12

2 Dhangadhi 61,20 1 1.50 71 ,026 1.50 82,42 9 229, 465 3.59 35 6,477 4.16 567,7 53 4.93

3 Nepalgunj 110,835 1.50 128,629 1.50 149,27 9 304, 042 4.76 43 9,924 5.1 4 651,9 28 5.67

4 Butwal 63,05 8 1.50 73 ,181 1.50 84,93 0 326, 452 5.11 45 9,069 5.36 651,7 60 5.66 9

5 Siddharthanagar 48,95 6 1.50 56,815 1.50 65,93 7 183, 014 2.87 25 3,020 2.9 5 353,8 47 3.08

6 Birgunj 222,058 1.50 257,707 1.50 299,08 0 554, 482 8.68 72 3,462 8.44 951,6 44 8.27 16

7 Bharatpur 125,795 1.50 145,990 1.50 169,428 390, 897 6.12 52 6,293 6.1 4 715,3 98 6.22

8 Hetauda 23,95 7 1.50 27 ,803 1.50 32,26 7 98, 570 1.54 13 2,342 1.54 178, 735 1.55

9 Pokhara valley 43,39 3 1.50 50,359 1.50 58,44 4 430, 617 6.74 61 6,371 7.1 9 886, 159 7.70 8

10 Kathmandu Valley 179,042 1.25 202,724 1.25 229,539 2,155,226 33.76 2,858,550 33. 37 3,696,141 32.12 32

11 Janakpur 167,030 1.50 193,845 1.50 224,965 386, 803 6.06 50 9,506 5.95 678, 690 5.90 6

12 Dharan 5,779 1.35 6, 608 1.35 7,557 81, 261 1.27 108 ,050 1.26 143,8 86 1.25 18

13 Biratnagar 469,911 1.35 537,345 1.35 614,456 1,193,824 18.70 1,510,223 17. 63 1,921,923 16.70

TOTAL Urban 1,521,015 1,75 2,03 4 2, 018, 309 6,384,831 100.0 0 8,566,900 100. 00 11,505,892 1 00.0 0 100.00 Population

Total National Population 26,494,504 30,296,560 34,644,225

% of Urban 24. 10 28.28 33. 21 Population

3.2.3 Database and Research on key themes of urban policy and programme development. Paucity of comprehensive urban database and results of It should be made mandatory to maintain, monitor and update research on key urban development issues has been an the data base periodically and make it accessible on both the important limitation in the assessment of current urban municipality specific as well as ministry websites. This also is a conditions and in the formulation of urban development way of making the urban governance transparent and strategies. The first task of National Urban Development accountable to its constituents. Strategy would be to develop a comprehensive urban data 3.2.4. Intended Urban System base. Such a database should include: urban spatial Based on the transportation network (Map 2.5), bus flow (Map demography and population characteristics, functional 3.1), air flow (Map 3.2), trade flow (Map 3.3) and settlement characteristics – number and spatial distribution of wholesale, system relationship (Map 2.7), the concept of polycentric and retail trade, hotels and restaurants; education, health and integrated regions can be envisaged. Based on the analysis, specialized services –, land use and utilization, road and two matured urban systems have been identified as CENTRAL traffic characteristics; drainage, sewerage; solid waste INTEGRATED SYSTEM covering urban centers like Kathmandu, generation and collection; open space and greenery; utility Pokhara, Bharatpur, Butwal, Bhairahawa, Hetauda and Birgunj services; number and distribution of production and and EASTERN INTEGRATED SYSTEM covering Biratanagar, manufacturing units; housing characteristics; squatter and Itahari, Dharan, Dhankuta, Birtamod, Rajbiraj and Lahan. Two informal settlements and characteristics; historic and cultural sub-systems namely Western Sub-System 1 with Dhangadhi as heritage; the state of urban development and governance center and Western Sub-System 2 with Nepalgunj as center institutions including resiliency and disaster preparedness. have been identified as the maturing urban systems of Mid Updating and monitoring of data particularly with respect and Far west regions respectively (Map 3.4). to changes in land use and utilization and spatial development trends and their drivers are tools that can be 3.2.5. Division of Relevant Urban Development used to formulate policies to influence urban development. Authorities in State Structure Also, this will facilitate the formulation of evidence based Division of relevant urban development authorities in state policies and programmes. This requires periodic research structure as outlined in the Constitution of Nepal (2015) (promulgated in September 20, 2015) is shown below: Division of Authorities Relevant to Urban Development Development Division of authorities relevant to urban development Compone nt Federal Province Joint Federal‐ Local Joint Federal‐ Province Province‐Loca l (A nne x 5) (Annex 6) (Annex 7) (A nne x 8) (Annex 9)

Cla use 20 : Cl ause 7: Clause 6: Clause 7: Clause 5: Na tiona l Provincial level Physical Local level Water supply Transportation water supply infrastructure deve lopme nt related services Policy, Rail and pr oj ects na tiona l hig hw ay Cl ause 12 : Clause 18: Clause 13: management Provincial Water supply and Clause 9: Squatter hig hw ay sanitation Basic sanitation se ttlem ent management Infrastructure Clause 11: Local road

Clause 19: Water supply Cla use 29 : Cl ause 16 : Clause 6: Clause 21: Land Use and La nd Property Conservation of Land Settlement management, acquisition water catchment Development La nd inve ntory area Policy Clause 22: Land policy Disaster Clause 17: Clause 20: Clause 9: management Disaster rescue Disaster Disaster and relief management management Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones Industry Clause 21: Industry 69 70 70 70 70 70 Intended Urban System and Milestones (source: municipalities. Allmunicipalitiesaredividedinto4,392wards municipalities, 44districtand205local provinces, withtotallocalbodiescomprisingof8metropolitan concentration ofpowerinoneplace.SouthAfricahas9 and thatofeconomiccapitalistoremovetheexcessive Africa’s GDP. Theseparationofthegovernmentbranches hub ofentireAfricancontinent—producing16%South largest cityofSouthAfricaisthemaineconomicandfinancial greater metropolitanareapopulation7.86m)whichisthe judicial capital judicial capital legislative government branches.Pretoria(2.9million)isthe 51.7 million(2011))showsspatialseparationofthe The caseofSouthAfrica(Area:471,443sq.m,population: in Nepal: valuable whiledesignatingandplanningforprovincialcapital The followinginsightsfromtheinternationalcasescanbe 1.28 million)arethefourbiggest citiesofGujaratandthe (pop 4.46m),Vadodara 1.66m),andRajkot(pop Administrative Capital.WhileAhmedabad (pop5.57m),Surat (area: 5738hectares,population: 206,167)istheState’s The caseofIndianStateGujarat showsthatGandhinagar Box 3.2:CasesofNationalandStateorProvincialCapital Box 3.2:CasesofNationalandStateorProvincialCapital capital Box 3.2:CasesofNationalandStateorProvincialCapital Box 3.2:CasesofNationalandStateorProvincialCapital Box 3.2:CasesofNationalandStateorProvincialCapital Source: Onlinekhabar,2016 , whileCapetown(population3.74million)isthe https://en.wikipedia.org/wiki/ South_Africa https://en.wikipedia.org/wiki/ . However, Johannesburg(pop4.43m, with andBloemfontein(pop747,431)isthe executive ). and reserveareasforfutureofficesstatewideimportance. civic, cultural,businessfunctions,alongwithbusterminus the GovernmentofIndia. high court,governmentdepartments,andofficespacesof complex withgovernmentsecretariat,legislativeassembly, Fourth Third and 10to100pphatthe periphery( location isaround100to150 personsperhectare(pph), is governmentoffices.The urban densityatthecentral services likehospitals,schools etc. Thecity’sbiggestemployer centers includingstadiumsand land usecomponents. recreational areasinthelaterphases.Ithassevenmajor 1970—with significantadditionofparks,greeneries,and phases, andthebasicinfrastructurewascompletedin ter, andresidentialhousing.Thecitywasdevelopedin shopping, communitycenter, primaryschools,healthcen- following theplanofChandigadh.Eachsectorhasitsown The cityhasadoptedsectorplanning— associated functions. nantly anadministrativecenterwithcultural,civic,andother two differentStatesofMaharashtraandGujarat.Itisdomi- as thecapitalofGujarataftersplitBombayStateinto located 23kmNorthofAhmedabad,wasestablishedin1960 maineconomic-financialcenters.Gandhinagar, whichis en.wikipedia.org/wiki/Gandhinagar isresidentialarea, includes shopping,commercial,andwarehouses. First component component First fifth Second Second beingrecreational, seventh includes citycenterwith ). othercommunity includes capital source: https:// source: sixth sports The City of Chandigarh is a union territory of India with the parks, and open space (lungs), education and cultural direct control of the central government and also the institutions (intelligence), road network (circulatory system), administrative capital of two States of Punjab and Haryana. and industrial area (critical internal organ). The capital This administrative arrangement was made in 1966. The complex consists of government secretariat, high court, City was conceived and established after partition and legislative assembly, and university and educational zone. independence of India in 1947, when East Punjab needed The city center includes inter-state bus terminus, parade its capital. The foundation stone of Chandigadh city was ground, district courts, business and shopping center, laid in 1952. The site for the city was selected referring to banks, offices. It has also an industrial area. The city has various criteria, namely (i) central location in the state (ii) an area of 11,400 hectares, and a population of 1.05 availability of sufficient water (iii) gradient for natural million (2011). It was initially planned for half a million drainage (slope is 1%) (iv) proximity to national capital (v) population. It has 47 sectors (super blocks) with dimension natural beauty (located at the foothill of siwalik hill range), of a sector being about 800m*1200m (96 hectare). The and moderate climate. sector contains own school, health center, shops, and places of recreation and worship. Population of each sector varies The Master Plan of Chandigadh was prepared by Le Corbusier from 3000 to 20,000. It has 30 low-density sectors and 17 and his planning team in 1951. The Plan was extended on high-density sectors. The low-density and high-density an initial work carried out by an American firm commissioned sectors are designed for a population of 150,000 and in 1950. The Plan is analogous to human body—consisting 350,000 respectively. It is developed in two phases (source: of capital complex (head), city center (heart), greeneries, http://chandigarh.nic.in).

3.3 Milestone for Urban Development Sector 3.3.1 Indicators for a Balanced and Prosperous “Vision 2030: Balanced and Prosperous National Urban Urban System System” is a singular—consolidated milestone for the urban development sector. This incorporates (i) achievement of a. national and sub-national (provincial and regional) urban set milestones regarding physical and institutional primacy index (two City and four city index) development within each thematic area, and (ii) enhancement b. provincial and regional level of urbanization in the quality of urban living which includes urban c. number of settlements of each hierarchy environment, provision and quality of infrastructural, d. population and area served by each settlement economic and social services, and citizen’s perception of e. inter- and intra-provincial and regional urban migration the quality of urban living. The achievement of a balanced f. GDP of provincial and regional urban centers and prosperous national urban system hinges on the g. growth rate of small, medium and large urban areas coordinated and integrated efforts of the key agencies of the government dealing with transport infrastructure, h. number and growth of higher and specialized social and economic functions in large urban areas environment, health, education, communication, commerce and industries, agriculture and biodiversity resources, energy i. number and growth of large, small and medium enterprise (output, employment) in addition to the Ministry of Urban Development. Five years milestone j. number, mileage and standard of intra-provincial and regional highways and roads Policies, plans, guidelines and regulations in place for k. number, mileage and standard of inter-provincial and improved investment and systemic planning for urban regional highways and roads development. Ten years milestone l. volume of the flow of intra-provincial/regional and inter- provincial/regional trade and services Plans, projects and programs operationalized with increased m. citizen report card for cities. investment in urban development with strengthened inter- urban and urban rural linkages. Fifteen years milestone Urban centers with improved infrastructure, healthy environment, efficient management and vibrant economy. Intended Urban System and Milestones

71 72 72 72 72 72 Intended Urban System and Milestones Map 3.1 Map 3.2

SETTLEMENT SYSTEMRELATIONSHIP -BUSFLOW SETTLEMENT SYSTEMRELATIONSHIP -AIRFLOW SETTLEMENT SYSTEM RELATIONSHIP - TRADE FLOW SETTLEMENT SYSTEM RELATIONSHIP

Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones Map 3.3

73 74 74 74 74 74 Intended Urban System and Milestones

Map 3.4 INTENDED URBAN SYSTEMS 3.4 Milestones for the Sub-Sectors

3.4.1 Urban Infrastructure E. Energy Investment Milestone • 100% HH connected to reliable provision of electricity • • NPR 9,300 per person of annual investment in the Diversified sources of electricity other than hydropower development of basic urban infrastructure wherever possible A. Water Supply and Sanitation F. Information Technology Connectivity

• 100 % of household with access to piped water • Fiber optics IT connectivity and use of “smart” concepts, in terms of use of technology and planning, in new planned • 100 lpcd in urban ward, 65 lpcd in rural ward towns • Sewerage (20% of total road length) in the urban core of the city • High speed internet availability at competitive prices in 80% of large and medium towns • Storm water drainage in 60% of total road length • 100 % HH with own toilets • Computerized information and service provision with respect • 50 % of existing houses and 100 % of new constructions to all utilities in all urban areas with in-built rainwater harvesting system and with • Operational land information system equal emphasis on the provision of groundwater 3.4.2 Urban Environment recharge B. Transportation A. Circulation

• 7.5 km/sq.km of road density for existing municipalities • Assured walkability in core urban areas and business and 5 km/ sq km for new municipalities . districts • 80% of roads in existing municipalities and 50% in new • Provision of cycle lanes along major intra-urban transport municipalities to be paved. arteries • 50% of population using public vehicles as main mode of B. Open Space transportation • 2.5% of land as public open green space at ward level • 80 Km/hour travel speed in inter-urban connectivity (maintained, monitored) in existing urban area • Transport facilitation standards (like bus park) • 5% of land as public open green space at ward level C. Housing (maintained, monitored) in new urban area • 50% of new residential area to be developed through land C. Safety, Resiliency readjustment process • 100 % municipalities with Disaster Risk Management Plan • 15% of the total requirement of housing through organized (DRMP) to increase resilience and preparedness for housing (both private and public sector) possible risks • Private/cooperative sector supplying housing for the poor • Community based safety oversight in all urban core areas in large towns D. Art, culture and Architecture • Housing price/Annual income ratio =10 to 15 • • Stop informal and squatter housing Historic and evolving cultural heritage preservation and promotion plans in all urban areas • 0 % of squatter settlement in urban areas D. Solid Waste Management • Designated public spaces for museums, theatre, arts in medium and large urban areas • 100 % HH waste collected in urban areas 3.4.3 Urban Economy • 100 % municipalities with own or shared sanitary landfill site • 70% contribution of urban areas to national GDP • 100 % municipalities with SWM unit • 75% of population engaged in non-agriculture activity in large and medium urban areas Intended Urban System and Milestones

75 76 76 76 76 76 Intended Urban System and Milestones Box 3.3:TheConceptofa“SmartCity” Box 3.3:TheConceptofa“SmartCity” living living mobility mobility elements ofacity. Smart lives andlivelihoods.Smartnesscanalsobeincorporatedin far astheyminimizeenvironmentalcostsandcontributetobetter travel, mixofjobsandsocialgroups)arealsosmartcitiesinso in thecityroadnetwork,designofbuiltupareastominimized designs, non-pollutingpublictransport,bi-cyclelanesintegrated orchards-, waterrechargesystems,energyconservingbuilding into theurbanfabric,withenoughgreenarea–parklands,forest, resiliency ofcommunities.Naturalcities(integratingfarming impact ofclimatechangeandcontributestotheenvironmental of biodiversity, helpsreduce carbonfootprint,mitigatesthe and preservesthenaturalenvironment,allowsforprotection is asmartcitybecauseitreducesambienttemperature,protects design ofacityastheelementsthatmakecity. Agreencity to problems.However, smartnesscanbeasmuchpartofthe of findingsmart(efficient,cost-effective,sustainable)solutions are someofthekeyfeaturessmartcities.Smartnesscomprises and wisemanagementofnaturalresourcestoensuresustainability augmenting humanandsocialcapitaltopromoteinnovation, communication technologytoimproveefficiency, focusin Viena UT2007).Highinvestmentininformationand 70 medium-sizedcitiesinEurope(CentreforRegionalScience, factors and74indicatorshavebeendevelopedappliedto of administration).To assessandrank“smartness”atotalof34 participation, transparency, serviceforcitizensandfunctioning resiliency, housing,tourism), and living life, social/ethnicplurality, opentotheoutsideworld), citizenry, qualityofsocialinteractionandintegrationinpublic environmental protection), carbon footprint,sustainableresourcemanagement, natural conditions,climate,greenery, minimalpollutionand traffic andenhancemobility), sustainable transportsystemsthatreducepollution,improve mobility addition harness solarelectricity, usesolarheaters.Smartroads,in development that disregardstheurbandispossessed andthe communities andexclusive, privilegedenclave-centric been critiquedforitsfocus onthemiddleclass,gated and regulatepollutionso on.Smart cityconcepthasalso Box 3.3:TheConceptofa“SmartCity” labour market,integrationwithinter/nationaleconomy), entrepreneurship, competitiveness,productivity, flexibilityof are seenashaving6characteristics: participation ingovernment.IntheEuropeanUnion“smartcities” mobility, reducecarbonfootprint,andenhancepublic (ICT) tobetterdeliverpublicutilities,improvetransportand associated withtheuseofinformation,communicationtechnology “Smart city”hasbeeninterpretedinvariouswaysbutisgenerally living living mobility mobility Box 3.3:TheConceptofa“SmartCity” Box 3.3:TheConceptofa“SmartCity” (social cohesion,qualityoflife-culture,health,safety, (local, internationalaccessibility, availabilityofICT, to goodroaddesign,usetechnology tomanagetraffic houses collect/harvestrainwater, smart people smart people smart people ( smart people smart people smart people smart environment smart environment smart environment smart environment smart environment smart governance smart governance smart governance smart governance smart governance smart economy smart economy smart economy smart economy smart economy qualified, educated (innovation, (attractive (political smart smart smart smart smart smart smart smart smart smart Case StudiesofSmartCities Case StudiesofSmartCities Hong Kong’ Hong Kong’ Nice Nice Portal toenhanceandrevitalizelocaltourism Portal toenhanceandrevitalizelocaltourism city’s abilitytoservevisitorsandlocalbusinesses. Luxor isout-reachingnewtravelers,whichhasenhancedthe historical sitesandlocateservicesinLuxor. Withthisportal, visitors touseasinglemobileapplicationtakevirtualtoursof In 2012,theLuxorMobilePortalwaslaunched,whichhelped guides, hotels,restaurants,transportation,andotherservices. visitors toexperiencethecitybymakingiteasyfindtour daily visitors.Thecitywantedtomaximizeopportunitiesofits segments ofitseconomyasitwelcomesapproximately12,000 Luxor inEgypthastourismindustryasoneofthemostimportant and equitableplacestolivein. opportunities. Smartcitieshavefundamentallytobeinclusive multitude ofruralpoorwhomigratetourbanareasinsearch Hong Kong’ be translatedinthecontextofNepal. smarter andsimplewaysofplanningforefficientcitiesthatcan urban areas.Someenlistedcasestudiesaretheexamplesof infuse componentsofsmartcitiesinitsnewtownsandemerging Urban developmentinNepalneedstoexploreopportunities telecommunication, transportation,andwaterwastewater. energy, health,payment,publicsafetyandsecurity, help inmakingcitiessmart,namely:economy, environment, The SmartCityCouncilhasidentifiedfollowingninesectorsthat Case StudiesofSmartCities Nice Portal toenhanceandrevitalizelocaltourism is abundantlyavailableandreduce demandduringwintertime. the system,whoplaycentralrole byconsumingmostwhenenergy compartmentalised” model,consumers areanintegralpartof homes, co-housing,industry, transport,etc.).Inthisnew “de- the gridfromamultiplelocal productionsources(individual in twodirectionsthatgivespace toinjectrenewableenergyinto to theconsumer. Smartgridsmakeitpossibletotransmitenergy networks weredesignedtotransmitelectricityinonedirection interchange ofnewdistributedenergyresources.Traditionally, open, interconnectedsysteminwhichbalanceisachievedthrough production-heavy methodofloadmanagement.Itintroducesan business modelthatreplacescentralizedone-waysystemandits Carros, Francesmartgridsandcitieshasledtoanew in othernationsalso. transactions. WithsuccessofOctopusCard,ithasbeenreplicated aged 16to65usesthecardsthatgenerate12milliondaily of HongKong.Roughly95percentKong’spopulation Octopus cardsareincirculation,nearlythreetimesthepopulation parking meters,servicestations,etc.Today, morethan20million systems, whichwaslaterusedinsupermarkets,restaurants, It wasinitiallydesignedtocollectfaresforlocalmasstransit and innovativepaymentsystemtoencourageuseofmasstransit. offline systems.Themainobjectivewastoadoptedconvenient value smartcardformakingelectronicpaymentsinonlineor 1997, HongKonglaunchedtheOctopusCard,areusablestored- Hong Kong’ Hong Kong’ Nice Nice Portal toenhanceandrevitalizelocaltourism Portal toenhanceandrevitalizelocaltourism Case StudiesofSmartCities Case StudiesofSmartCities grid projectforanenergyefficientcity grid projectforanenergyefficientcity grid projectforanenergyefficientcity grid projectforanenergyefficientcity grid projectforanenergyefficientcity s OctopusCardthatencouragesmasstransit s OctopusCardthatencouragesmasstransit s OctopusCardthatencouragesmasstransit s OctopusCardthatencouragesmasstransit s OctopusCardthatencouragesmasstransit

In thetownof The cityof

In Existing and Evolving Urban System of Nepal and its Regional Setting (Schematic Map 3.5)

Regional setting of Nepal places it between two giant nations, These urban hubs have triggered development of industrial India and China. Bilateral relationship and physical linkage and residential towns along north-south highways that have between the two countries has significant implications for evolved as urban growth corridors. Of these corridors, national development of Nepal, if it is able to harness the Biratnagar-Dharan, Birgunj-Hetauda and Bhairahawa-Butwal benefits. China is preparing to extend its rail network from have significantly grown as mature urban sub-systems. Also, Shigatse to Kerung, near the Nepal-China border in Kodari. proposed Kathmandu - Tarai fast track connecting the The road under construction between ‘Rasuwagadhi and proposed international airport at Nijgadh with Kathmandu Baireni Galchi’, significantly reduces travel time from border can strengthen the urban system of the central region. town to Prithvi Highway. It also opens doors to enhance Evolving urban centres in the inner tarai region have greater tourism due to easier linkage with Lumbini. potential for development as they serve the large northern hinterland. Kodari and Rasuwagadhi transit points can serve as dependable all-weather linkage between India and China. The evolving urban system of Nepal also highlights locations Rasuwagadhi is at an altitude of 2000m as compared to the for strategic investments which can create development border pass of Nathu la in Sikkim, India, which is at an ripples (multiplier effects) in respective regions. For the purpose of NUDS, infrastructure is broadly classified into 3 altitude of more than 4300m. Nathu la operates only between categories, namely basic services, higher order (social, April and October. Opening of Rasuwagadhi can spur the economic and large scale infrastructure that can be development of Baireni Galchi, Bharatpur, Hetauda, Butwal shared)and strategic infrastructure, which help to unleash and Lumbini which can develop as a hub for Chinese tourists the development potential of the region. Investment is and benefit from increasing regional trade. prioritized to urban corridors and valley regions that play Based on connectivity with India, five regional cities namely pivotal role in promoting development of a regional urban Birgunj, Biratnagar, Bhairahawa, Nepalgunj, and Dhangadhi system in addition to its economic development.Also, have emerged as major urban hubs along the southern belt. investment for basic services has been streamed for all urban These cities not only serve as major trade centers of the areas. Investment especially in strategic infrastructure is country, but have emerged as centres of higher order urban prioritized for the north-south road corridor linking India functions like major transportation and communication hubs. and China to optimize investment outcomes.

3.5 Investment Requirements for Urban Infrastructures

The need of investment for future development extends Urban population projection is a difficult task because of a beyond fulfilling current deficit in infrastructure, but should number of factors - conditions and constraints in the capture infrastructure demand of the future population. availability of infrastructural facilities and services, Investment is needed to unleash the potential of the urban employment prospects and economic opportunities, area and its hinterland, based on its comparative advantages, educational and health facilities, the security situation, etc. to increase its economic productivity. Therefore, future – that influence the dynamics of urban growth. However, investment required for urban development is a sum of the based on present prospects some cities like Kathmandu (valley investment needed to meet current deficit, as well as as a whole), Pokhara, Itahari, Bharatpur, Butwal are likely investment needed to realize the potential and consequent to continue to attract population. future demand. For purposes of population projection for the next two 3.5.1 Population Growth and Future Projection decades existing municipalities have been categorized into four different growth bands. The municipalities having During 2001 to 2011, Nepal witnessed 3.43% growth in current growth rate of more than 3% are in the high band urban population. There was an addition of 1.18 million in and an average annual growth of 3.5% is expected in these the population of the 58 municipalities. On average, the towns. In the medium band are municipalities with expected municipalities experienced a growth of 2.6% within growth rate of 2.5%. Similarly, municipalities in the low designated municipal boundaries. One-third of the growth growth band are expected to grow at a rate of 1.5% growth. was in the five municipalities of the Kathmandu valley alone. (Table 3.3) Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones

77 78 78 78 78 78 Intended Urban System and Milestones This schematic map aims to show the complex road networks, urban regions,

TO LHASA G URBAN SYSTEM OF NEPAL AND ITS REGIONAL SETTING (SCHEMATIC) settlements, evolving urban systems and regional setting of Nepal in a simplified & BEIJING form. This map is not in scale and the locations are relative, hence should not be ´ interpreted in terms of ground distance, existing topography and terrain.

Zhongba Lhatse !( !( !( !( Baga (Mansarobar) Shigatse CHINA !( Tingri

!( Gamba CHINA !( Kerung

Dinggye CHINA !( Zhangmu !( (! (! (! (! (! Kodari Lamabagar/Lapchegaun Kimanthanka Olangchungola/Gharila (! Lo Manthang Rasuwagadhi Hilsa Simikot Gamgadhi BHUTAN Burang !( (! (! (! Chame (! INDIA (! (! (! Barhabise Tinkar Dhunche !( Nathula (! Jomsom Bhimeshwor Gorkha Dhadingbesi (! ") ") ") ") ") Bidur Dudhkunda Dharchula Api(Darchula) Chandanath NEPAL Jiri Geyzing ") "/") (! ")(! ")(!(Salleri) !( (Jumla) Dunai Chautara ") Khadbari ")Taplejung !( !( Gangtok ") Sundarbazar ") ") ") (! Shadananda Jayaprithivi (Martadi) Beni Dolalghat ") ") Melamchi ") Okhaldhunga INDIA ") Manma (! (! Manthali Ramechhap Jajarkot Pokhara ") Kathmandu ")(! ")(! Chainpur ") Rakam Chaur ")")") ") ") Valley ") ") Madi Dashrathchanda Amargadhi Burtibang Valley Byas Dumre Mugling ")")") ") ") Almoda Mangalsen Karnali Jhari "/Dhulikhel Khurkot Basantapur Daduwachok !( Kalimpong !( ")(! ")(! ")(! ") ")!( ") (! ") ") !( ")(! !( ")(! ") ")(! ") ") ") !( (! !( ")(! ")") ") ") ") (! (! ") ") ") (! ") ")(! (! !( Pithoragadh Patan Dipayal Saphebagar Narayan Musikot Baglung ") ") ")") ") Kashikhanda Ghurmi Diktel Bhojpur Pakhribas Myanglung Lekhnath ")")") ") ") Liwang Bandipur Baireni (! Panauti ")(! ") Sharada Galchhi Chhaimale ") Birendranagar Dang Dhankuta Deumai Surkhet (Salyan) ") ") ") ")Tamghas ") Parshuram ") Valley Pyuthan (! Malta Udaypur Valley Waling ") Thaha Sindhuli Ilam ")(! (Jogbuda) Tulsipur ") Dudhauli Valley Pashupatinagar ")(! (! Budar (! (! (! Valley Katari Chatara ! ") ") ") ") Ghorahi Rampur ") ") ") ") ") (! ") Dharan ") ( !( (Chhinchu) Tripur Ridi ") ") Hetauda (! Chhatiwan Sani- !( Nainital (! Tansen ") Chitwan ")(! Letang Darjeeling Devchuli ") Arjun GUWAHATI Tanakpur/ Ghoda- Lamki- Buddha ") Valley Valley Chandra ") Siliguri G Banbasa Bhimdatta "/ ghodi Chuha Bansghadi Kohalpur Chanauta Batika Butwal Sunawal Nigahpur Mirchaiya Lahan Rupani Inaruwa Itahari Damak Birtamod !( ")(! ") ") ") ") ") ") ")(! ") ") ") ") ")(! ") ") ") ") ")(! ") ") ")(! ") ") ") ") ")(! ") ") ") ") ") ") (! ") ") ") ")(! ") ")") ") ") ") ") ") *#")(! !( Attariya Lamahi ") Kawasoti Ratnanagar Nijgadh ") ") Gol bazar ") Dodhara ") ") ") ") Garuda ") ") Shiva-Satakshi Kakadvitta ") ") Tikapur ")Chitrawan "/ ") Sabaila ") Chandani Belauri Dhangadhi Nepalgunj Ramgram Pokhariya Janakpur Siraha Biratnagar Rangeli Bhadrapur ") ") ")(! ") ") ") ") ")(! ") ")"/ ") ")(! "/ ") ") ") ") ")(! ") ") ") ") ") ")(! ") ") ")(! "/ ") ") !( Krishnanagar *# *# *# Pilibhit Punarwas Rajapur Sanoshri Gulariya Kapilbastu Lumbini Bhairahawa Narayani Maadi Birgunj Gaur Malangawa ") Rajbiraj TO DEHRADUN !( !( !( !( !( Jaleshwor !( Gauriphant Nanpara !( Jogbani

/DELHI Barhni Nautanwa Raxaul Pupri G

G Gorakhpur Ayodhya !( !( TO DELHI Shahjahanpur (Faizabad) Katihar !( !( !( Bareilly BANGLADESH !( !( Muzaffarpur Darbhanga (! Lucknow INDIA

G Allahbad Varanasi Patna Bhagalpur TO AGRA/DELHI (! Kanpur (! (! (! !( Dhaka !( Physical Planning and Urban Development Division Ministry of Urban Development NATIONAL URBAN DEVELOPMENT Singhadurbar, Kathmandu STRATEGY (NUDS) 2014

Urban Settlements Strategic Investment International ") High Medium !( Adjoining Markets centers Existing Municipalities:58 (MN) !( Kolkata Priority Priority (! Chittagong !( ") New Municipalities:72 (MN) (Level 1,2,3 based on population) (! ") Recently Added Municipalitites:61 (MN) Large scale infrastructure Railway (Existing broad gauge) !( New Towns (NT) *# Inland Clearance Deport (ICD) Railway (Metre Gauge) INFRASTRUCTURE ORDER "/ LEGEND SETTLEMENT TYPE OF INFRASTRUCTURE ! Other Urban Centers Special Economic Zone (SEZ) Railway (Proposed) BASIC HIGHER ORDER STRATEGIC Water Supply Intra-City Connectivity Mass Transit System and Border Towns (UC/BT) Road (Nepal) !( ") ") ") ! NT, MN, UC,BT Basic Services Urban Regions EW Highway Road (International) Sanitation Urban Transport System—City Bus, Parking Facility Inter-City Connectivity Drainage and Sewerage Urban Energy Regional Bus and Freight Parking Facility and Terminals Proposed MidHill Highway Border Connection Road EC Basic Services Evolving Urban Regions (EUR) Solid Waste Management City Hall, Exhibition center Airport Postal Road Housing Recreation—stadium Information and Communication Technology Facility Identified Urban Valleys and Corridors Border Connection Non Motorable EUR Basic Services & Higher Order Shared Infrastructure KTM-Tarai FastTrack Paved Urban Road City Parks and play grounds University and Research Centers—Knowledge Hub Matured Urban Regions (MUR) India East-West Corridor Power Specialized Medical Centers Other Road MC Basic Services & Higher Order Shared Infrastructure Tele-communication International Convention and Exposition Center Evolving/Future Urban Corridors (EC) Earthen/Under Construction Other Highways Integrated Urban Energy System MUR StrateticStrategic Infrastructure Infrastr. Maturing/Matured Urban Corridors (MC) Planned Road India Golden Quadrilateral Inland Clearance Deport/ Dry Port Table 3.2 Municipalities in different Population Growth bands2 during 2001-11 >5% Damak, Itahari, Madhyapur Thimi, Pokhara 4 to 5% Bharatpur, Kirtipur, Butwal, Banepa, Birendranagar, Tulsipur, Byas, Dhangadhi 3 to 4% Ghorahi, Kathmandu, Tikapur, Tansen, Lekhnath, Baglung, Gaur, Malangawa, Lalitpur 2 to 3% Kalaiya, Janakpur, Bhimdatta, Dhankuta, Triyuga, Bidur, Nepalgunj, Gorkha, Rajbiraj, Dhulikhel, Hetauda, Ratnanagar, Inaruwa, Dharan, Lahan 1 to 2% Gulariya, Birgung, Siddharthanagar, Khadbari, Biratnagar, Kamalamai, Siraha, Waling, Mechinagar, Amargadhi, Ramgram, Ilam, Bhaktapur, Kapilbastu, 0 to 1% Narayan, Panauti, Jaleshwor, Diapayal Silgadhi, Putalibazar, Bhimeswor, Bhadrapur <0% Dasahrathchanda

TTTable 3.3 Population Projection for Different Growth Bands Growth Population Growth Population Ratio Existing Proposed Exi sting Projected Type

200 1-11 2011-31 2011 2021 20 31 20 11 20 21 203 1

Hi gh 3.0% 3.50% 2,8 73,5 35 3,5 96,1 19 5,046 ,177 56% 53% 56 %

Medium 2 .0% 2.50% 96 7,68 9 1,1 31,5 23 1,529 ,818 19% 1 7% 17 %

Low 1.0% 1.50% 1,0 62,7 03 1,6 08,3 81 2,199 ,038 21% 24% 24 %

Zero 0 % 0 % 22 1,36 9 440,98 3 251, 805 4% 7% 3%

Total 3.2% 2.8% 5,1 25,2 96 6,7 77,0 05 9,026 ,837 10 0% 1 00% 100 %

TTTable 3.4 Urban Population including New Municipalities

Existing Projected Growth 2011 2021 2031 rate Nepal Population 26,620,809 30,789,678 35,919,562 1.47% Urban Population 10,769,449 14,362,275 19,220,805 Existing M unicipalities (58) 5,125,296 6,777,005 9,026,837 2.80% New Municipalities (159) 5,644,153 7,585,270 10,193,968 3% Rural Population 15,851,360 16,427,403 16,698,757 Urban Population 40% 47% 54% Existing M unicipalities (58) 19% 22% 25% New Municipalities (159) 21% 25% 28% Rural Population 60% 53% 46%

The net population gain in the next two decades is expected be designated as urban area though there may be several to be 2.8% per annum. The total population of 58 municipalities. Similar situation may prevail in Pokhara municipalities in Nepal is expected to reach about 6.78 Valley or Dang Valley in future. million in 2021 and 9.03 million in 2031.The municipalities Besides, the government has announced 159 municipalities falling in high growth band would take up about 60% of in 2014/15. The population in these settlements is 5.64 the total urban population. It is likely that in future quite a million in 2011 and is expected to reach 10.19 million in number of adjoining VDCs will either merge with the existing 2031. The total urban population of 217 municipalities by municipalities or will obtain separate municipal status. For 2031 is expected to reach 19.2 million or 54% of the total Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones example, the entire area of Kathmandu valley will ultimately population (Table 3.4). Intended Urban System and Milestones Intended Urban System and Milestones 2 Population based on the 2011 census excluding institutional population 3 Details of existing population and future projection of existing and proposed municipalities appear in Annex 17a, 17b & 29 797979 80 80808080 Intended Urban System and Milestones * 3.5.3 ExistingStateofUrbanInfrastructure 3.5.3 ExistingStateofUrbanInfrastructure municipal populationisnoturban(Table 3.5). ppha. Basedon10pphacriteriaoverathirdofpresent municipalities, 20municipalitieshavedensitieslessthan10 4.5 pphainKhadbariMunicipality. Outof58old ranging from205pphainKathmanduMetropolitanCityto 3.5.3 ExistingStateofUrbanInfrastructure 4 length incaseof58municipalities. sewerage provisionisevenlesswithonly9%oftheroad municipalities and7%incaseof159municipalities.The drainage isavailableononly13%oftheroadsincase58 one thirdoftheseroadsareblacktopped.Provisionstorm is stilllessthantheminimumrequiredandonly assessed throughninedifferentparameters.Theroaddensity The existingstateofurbaninfrastructureingeneralis Population density relevant withrespecttoprovisionofinfrastructure. 10 pphaascriteriaforurbanareas.Thisisparticularly designation althoughNationalUrbanPolicyhassuggested Population densityisnottakenasacriteriainmunicipal 3.5.2 3.5.3 ExistingStateofUrbanInfrastructure 3.5.3 ExistingStateofUrbanInfrastructure 3.5.23.5.23.5.23.5.2 Persons per hectareofthe buildable areaexcluding steepslope (>45%),river/pond andforests.Population basedon the2011c d Unit Cost Cost Unit muns.) (159 Deficit Deficit (58 muns.) muns.) (159 Baseline muns.) (58 Baseline level Desired T TTTT 10 to 25 ppha <10 ppha ppha <10 25 to 50 ppha 50 to 100 ppha ppha200 to 100 >200 ppha e T TTTT able 3.5 able 3.5 able 3.5 able 3.5 able 3.5 tails in able 3.6 able 3.6 able 3.6 able 3.6 able 3.6 Annex18a, PopulationDensity PopulationDensity PopulationDensity PopulationDensity PopulationDensity

Municipalities havingdifferentpopulationdensityin2011(58municipalities) Municipalities havingdifferentpopulationdensityin2011(58municipalities)

Municipalities havingdifferentpopulationdensityin2011(58municipalities)

Municipalities havingdifferentpopulationdensityin2011(58municipalities) Municipalities havingdifferentpopulationdensityin2011(58municipalities) Existing stateofurbaninfrastructure*(58municipalities) Existing stateofurbaninfrastructure*(58municipalities) Existing stateofurbaninfrastructure*(58municipalities) Existing stateofurbaninfrastructure*(58municipalities) Existing stateofurbaninfrastructure*(58municipalities) 4 18 inthemunicipalitiesvariessignificantly, a & 2 & 1 municipalities) municipalities) Km/Sq. KmKm/Sq. uaiaa,Rmrm ulsipur, Waling Ramgram, Tu Putalibazar, Gorkha, Gulariya, Kamalamai, Kapilbastu, Khadbari, Lahan, Lekhnath, Narayan, Amargadhi, Bhadrapur, Bhimeshwor, Bidur, Byas, Dasharathchanda, Dhankuta, Dipayal, Tikapur, Triyog Mechinagar, Nepalgunj, Panauti, Pokhara, Ratnanagar, Siddharth Nagar, Siraha, Tansen, Ghorahi, Hetauda,Ilam, Baglung, Bharatpur, Inaruwa, Bhimdutta, Birendranagar, Itahari, Dhangadhi,Damak, Dhulikhel, Gaur, Jaleshwor, Janakpur,Biratnagar, Birgunj, Butwal,Kalaiya, Dharan, Kirtipur,Malangawa, Rajbiraj Lalitpur Bhaktapur, Banepa, Madhyapur Thimi Thimi Madhyapur Banepa, Kathmandu Density Density 5.0 (159 (159 5.0 7.5 (58 (58 7.5 Ro 2.42 2.42 1.25 2.58 6. 6 2 a 4 d d (New) (New) Rs Length (km) Length (km) municipalities) municipalities) Rs. 10 million 10Rs. million 44,912 (159 (58 206,643 (Upgrading) (Upgrading) . 20 million 20. million 23,021 23,021 21,891 13,044 13,044 Road Road 7,599 Rs. 30,000 Rs.10,000 Rs. 5,000 5,000 Rs. Rs.10,000 30,000 Rs. HH with HH with Piped Piped 5 9 0 6 7 11% 36% 47% 10% 25% 19% 38% 42% 80% 55% WS WS additional VDCsonDecember14,2014. of addedarea58municipalitiesthatwereupdatedwith 25). Thesameassumptionshavebeenusedfortheanalysis are derivedbasedonpopulationdensitycriteria(seeannex were declaredin2014and2015,theassumptionsforanalysis infrastructure condition.Forthe159municipalitieswhich The analysisof58municipalitiesisbasedontheexisting holds (Table 3.6). of solidwastecollectioncoveringonly44%thehouse- municipalities. Thesimilarsituationisobservedinthecase households arestillnotconnectedwiththeelectricityin58 holds stilllacktoiletfacilitiesintheirhouseand10%of tity isfarbelowstipulated The situationofwatersupplyintermsqualityandquan- 159 municipalitiesisevenworseasshownintheTable 3.6. holds haveaccesstopipedwatersupply. Theconditionof Similarly, incaseof58municipalities, only55%ofthehouse- HH with HH with Toilet Toilet 100% 48% 52% 81% electricity HH 100% 100% 47% 47% 53% 90% 44% 13% 13% 44% 90% wi th th Rs. 1,000 1,000 Rs. collection levels.About20%ofthehouse- 80% 73% SW 7% Rs. 10 M 60% of road Drainage Drainage Stor length 53% 53% 7% m ensus Rs. 15M 20% of road Sew length in core city 20% 0% 9% erage erage 3.5.4 Desired Level of Urban Infrastructure 33.5.5..55.5 FFundinguundingnding Requirement (Existing State) A tentative cost estimate required for bringing all the existing Minimum desirable state of urban infrastructure for existing municipalities to the minimum desired level of infrastructure has municipalities and new towns are envisaged on the basis of the norms been made. The cost is based on the conditions and parameters prepared by DUDBC and a review of the norms suggested for the prevailing in 2011. Accordingly NRs. 372,935 million (or NRs. small Indian cities. Details are provided in Annex 19a, 19a1, 19b & 33. 72,764 per capita) would be required for bringing infrastructural standards to desired levels in 58 municipalities. About 60% of the cost would be required for the upgradation of existing roads and the extension of new roads. Municipality wise details are given in Annex 5, 20 & 28. Table 3.7 Requirement to meet existing deficit of 2011

Existing (58) New Municipalities (159)

Investment Percent Per capital Investment Percent Per capital cost Required (mil) cost (in Rs.) Required (mil) (in Rs.)

New Roads 151,973 40.8 29,652 379,895 41.4 67,308

Upgrade ext. road 96,146 25.8 18,759 189,947 20.7 33,654

HH with Piped WS 9,018 2.4 1,760 10,159 1.1 1,800

HH with Toilet 1,731 0.5 338 4,515 0.5 800

HH with electricity 652 0.2 127 1,698 0.2 301

Landfill site 781 0.2 152 1,179 0.1 209

Storm Drainage 75,129 20.1 14,658 216,636 23.6 38,382

Sewerage 37,505 10.1 7,318 113,968 12.4 20,192 Total 372,935 100% 72,764 917,997 100% 162,646

Table 3.8 Funding gap to meet future demand till 2031

Infrastructure 58 municipalities 159 municipalities Total (in Million) (in Million) (in Million) New Road 1 014 48 318 482 419, 930 U pgrade ext. road 6418 1 159 241 223, 422 HH with Piped WS 602 0 8517 14, 537 HH with Toilet 115 6 37 85 4,9 41 HH with electricity 435 14 24 1,8 59 Landfill site 521 9 88 1,5 09 Storm Drainage 5015 1 181 615 231, 766 Sewerage 2503 6 95 544 120, 580 Total 248,948 769,596 1,018,544 Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones

818181 82 82828282 Intended Urban System and Milestones On thebasisofabove,fundrequirementatinterval of5yearsshallbeasfollowed:(ReferAnnex22a,22b) to thesizeofcityowingfactthatdemand population. Priorityleveliskeptatincreasingtrendaccording has beensetaccordingtothetypeofcityonbasis The priorityinvestmentforthenext15yearsi.e.till2031 3.5.7 34) & 3.9. (Annex21a,21b the municipalbuildingsandbusparksareshowninTable total fundingincludingfutureincreaseinpopulationandfor a newbusparksorcompleterenovation.Therequirementof moderate condition.38municipalitiesthereforeeitherrequire have theirownbutonly14ofthemareingoodand6 rebuilt. Regardingbusparks,32outof58municipalities renovation works;andsomemayrequiretobecompletely office complex,butmostofthesebuildingsrequiremajor bus parks.Mostoftheexistingmunicipalitieshavetheirown municipality shouldhavetheirofficepremisesandthecity Besides abovemunicipalinfrastructure,every Requirement) FundingRequirement(IncludingFuture 3.5.6 Grand infrastructure and unleashing potential Softcost required as % for basic Priority Years' 20 to Percent Requirement Total to Percent Million) In (Rs. Total MunicipalitesNew (159) Existing Municipalites (58) 100,000 to 200,000 200,000 to 100,000 >200,000 100,000 to 50,000 50,000 to 20,000 20,000 < Grand management andsafeguard Sub total 3: Soft Cost: Project preparation, Sub total 2: Unleashing Potential Sub Parks Bus Street Light Buildings Municipal Municipal Infrastructure (2031) Table 3.9 Table 3.10 Table 3.11

Total 1: Basic Urban Infrastructure Infrastructure Urban Basic 1: Total

Population

total Total Priority Investment

(in Total investmentrequiredtomeetdeficitanddemandofmunicipalitiesby2031

City Type andPriorityLevel Priority fundrequirementformunicipalitiesfromyear2016 to2031

Million)

City Type

B D A C E

xsigMncplts(8 NwMncplte 19 Total (mil) New Municipalities (159) Existing Municipalites (58) 981,201 Existing Municipalities (58) New Municipalities New (159) Municipalities (58) Municipalities Existing 146,846 166,871 667,484 621,883 311,491 41,286 262,929 262,929 132,770 130,159 2016-21 2,962 1,353 48,562 20% 20% 9% of thetotalinvestmentrequirement.(Table 3.10) towns havinglessthat20,000populationwillachieve60% expected toachieve100%whereasthesameforsmall This means,theinvestmentrequirementofType Atownsis category, themaximumtargetshall hence be40%only. than 20,000.SincethenewtownsdonotfallintoAandB the minimumtargetsetis20%forpopulationofless target forthenext15yearshasbeensetat60%onlyand 70% to90%.Similarly, forthenew townsthemaximum medium townsshallhavethetargetsthatrangebetween 20,000 populationshallhavethetargetof60%only. The 100% oftherequirementwhiletownshavinglessthan the populationgreaterthan200,000istargetedtoachieve population densityareas.Theexistingmunicipalitieswith infrastructure oftenbecomesunderutilizedinthelow terms ofcapitalinvestmentandO&Mrequirement.The urban infrastructuremaynotbeviableinsmalltowns urban infrastructureishighinthelargecities.Moreover, all

100% 100% 90% 80% 70% 60% 464,539 20 394,394 394,394 195,239 1 70,145 99,155 30% 30% 13 21-26 %

2,624,159 1,785,142 1,687,593 446, 392,731 89,824 5, 2, 722 003 285.5 770,634 2016-31 657,323 325,398 331,925 663,85 1,1 232,018 113,311

50% 50% 21%

50% 30% 60% 60% 40% 20% 3,605,358 2,452,626 2,309,476 1,546,664 539,576 131,110 613,157 1,314,646 650,796 8,684 3,356 100% 100% Total 43% 0

3.5.8 Sources of Funding

Since the infrastructure investment requirement cannot be may contribute around 5% of the total investment requirement. met by the internal resources of the municipality, the major Further 5% would be contributed by the community and private contribution (about 60%) is proposed from the government sector. The involvement of community would be on the water through fiscal transfer. The development partners may be supply, inner urban roads, drainage and sewerage whereas expected to contribute up to 30% while the municipality the private sector may be involved in the construction of bus parks and other infrastructure services through PPP. Table 3.12 Sources of fund for the first five year of planning GoN Municipality Com munity Private Dev. Total Sector Partners Existing Municipalites (58) 78,095 6,508 3,254 3,254 39,048 130,159 New Municipalites (159) 79,662 6,639 3,319 3,319 39,831 132,770 Soft Cost 29,137 2,428 1,214 1,214 14,569 48,562 Total (Rs. In Million) 186,895 15,575 7,787 7,787 93,447 311,491 Percent to Sources of Fund 60% 5% 2.5% 2.5% 30% 100%

Following the above annual government outlay to meet infrastructure development and upgrading, distribution of government fund source for first five year of planning is expected as follows: Table 3.13 Sources of fund under government source for the first five year of planning

2016‐17 2017‐18 2018‐19 2019‐20 2020‐21 Total

Existing Municipalities 7,810 11,714 15,619 19,524 23,429 78,095 New Municipalities (159) 7,966 11,949 15,932 19,916 23,899 79,662 Soft Cost 2,914 4,371 5,827 7,284 8,741 29,137 Total 18,689 28,034 37,379 46,724 56,068 186,895 Percent to Requirement for 2016-21 6% 9% 12% 15% 18% 60% Percent to Government's Fund Source 10% 15% 20% 25% 30% 100% Box 3.4: Justification for Allocation of Financial Resources In the projection of allocation of resources for the respectively. The total grant received in these fiscal years development of urban infrastructure, the government funding was Rs. 35,229 million and Rs. 47,311 million; that is estimated to be at 60% of the total requirement and the constituted around 11% of the total revenue. Around 1/3rd funding by the development partners would be around of the grant was spent for the capital expenditures. Similarly, 30%.This assumption is based on the existing pattern of in 2012-13 the total expenditures in the infrastructure was government revenue and expenditures on the Rs. 39,012 million and in 2013-14 it was 50,943 million, infrastructure;as shown in the table. which constituted 26% and 28% of the total capital grant from the development partners including foreign government. The total revenue of the government in FY 2012-13 and FY For the current fiscal year this grant is estimated to be around 2013-14 were Rs. 333,172 million and Rs. 401,840 million 36%. Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones Intended Urban System and Milestones

83 84 84 84 84 84 Intended Urban System and Milestones 3.5.9 3.5.9 3.5.9 ment requiredtofulfilldeficit anddemand. The totalcosttounleashpotential is25%oftotalinvest- and Jaleshwor(18%). that havelowpotentialareTriyuga (18%),Kamalamai(18%) Tikapur (32%)andDhangadhi(32%).Themunicipalities investment tounleashitspotential,whichisfollowedby highest potentialinallfivesectors,hencerequiremajor The resultsshowthatKhadbarimunicipality(35%)hasthe of theexistenceunidentifiedpotential. and 4%outof5%10%respectively, forthepossibility potential inthesectorshavebeenallocatedminimum2% data intheprocessofcalculation,districtsthatshowno sum inordertogetarealisticfigure.Acceptinglimitationof unleashing thepotentialislimitedtolessthan40%oftheir existing deficitanddemandishigh,investmentfor future investmentneed.Asrequiredforfulfilling should beaddedtothetotalinvestmentmeetitsactual required tomeetdeficitanddemandofanurbancenter to 35%.Itmeansmaximumof35%thesuminvestment 5%, Tourism= 5%,Hydropower=5%isallocated,thattotals score. ForAgriculture=10%,Manufacturing=NTFP= given 10%,whilelessthan5%contributionis such thatsectorwithmorethan5%contributiontoGDPis contribution offiveidentifiedsectorstothenationalGDP, Weightage forcalculationofpotentialisbasedonthe project locationsinvariouspartsofthecountry. that hasidentifiedandproposedpotentialmajorhydropower potential isbasedonthedataofNepalElectricityAuthority ODOP thatalsoincludespersonalexperiences.Hydropower potential wasbasedonvarioussources,liketourismboard, identify thepotentialofdistrictsinitsNTFPproducts.Tourism districts. OneDistrictProduct(ODOP)wasusedto Quotient todeterminesurplusmanufacturingoutputofthe Established 2008datawasusedtocalculatetheLocational products ofthedistricts.Similarly, Census ofManufacturing the LocationalQuotienttodeterminesurplusagricultural Ministry ofAgricultureDevelopmentwasusedtocalculate For agriculture,dataonagricultureoutputof2013from of investmenttomeetthedemandunleashpotential. more thanoneurbancenter, thenthey requiresamepercent either concentratedordependenton.Also,ifadistricthas the hinterlandofurbancenters,wherethesesectorsare assumption thatpotentialofthedistrictis districts intherespectivesectors.Theanalysisisbasedon segregated atthedistrictleveltoidentifypotentialof and hydropowerwereconsideredavailabledata manufacturing, non-timberforestproduct(NTFP),tourism hinterland. Fivesignificantsectorsnamelyagriculture, areas isbasedonthecomparativeadvantagesofits Investment requiredforunleashingthepotentialofurban 159 municipalities. (RefertoAnnex23). palities isNRs 166,871Millionsand446,285 Millionsfor ment requiredtounleashthe potentialof58oldmunici- 3.5.9 3.5.9 Investment forUnleashingPotential Investment forUnleashingPotential Investment forUnleashingPotential Investment forUnleashingPotential Investment forUnleashingPotential

The totalinvest- Infrastructure Infrastructure 3.5.10 JustificationofInvestmentonUrban 3.5.10 JustificationofInvestmentonUrban through directincomeandcapital gains. through directincomeandcapital gains. Economic returnofinfrastructure investmentissubstantial Economic returnofinfrastructure investmentissubstantial ing standards. ing standards. Investment oninfrastructuresincreasesproductivityandliv- Investment oninfrastructuresincreasesproductivityandliv- economic conditions andpolicies,political stability, work of returnmaybeaffectedbya hostoffactorssuchasoverall through directincomeandcapital gains. Economic returnofinfrastructure investmentissubstantial ricultural sectorwhichdominates theruralhinterland. municipalities. Onlyabout35%ofGDPcomesfromtheag- hydro-power, tourismandagriculture. tribute tothegrowthofothercriticalsectorsnamely duction, consumption,recreationandinnovation,cancon- being atransactiveandtransformativespaceforliving,pro- only theprosperityofurbansettlementwhich,byvirtue (LDC) toaDevelopingCountry(DC)by2022.Moreover, itis sire ofgraduatingNepalfromaLeastDevelopedCountry being formulatedforthepostMDGstage,andnationalde- All by2017,SustainableDevelopmentGoals—whichare things includeMillenniumDevelopmentGoallikeWaterfor achieving nationaldevelopmentgoals—whichamongother ture iscrucial.Thiswillalsohavepositiveramificationfor tem. Therefore,judiciousinvestmentonurbaninfrastruc- our visionofabalancedandprosperousnationalurbansys- flict andinsecurities.Thisonlymeanssetbackinpursuing if allowedtocontinue,arelikelytriggermoresocialcon- also cometoprevailinmosturbanareas.Thesedistortions, sult, poverty, marginalizationandgrowingsocialdividehave land andunleashingtheirdevelopmentpotential.Asare- also becomedisincentivesforgrowthofsurroundinghinter- ernment. Thefailingeconomicgrowthofurbanareashas growth”— withincreasingdependencyonthecentralgov- and liveuptoexpectationsofbecoming“engines to createdesiredeconomicandemploymentopportunities most urbanareas.Consequently, urbancentershavefailed behind, thusleadingtodeclineinoverallqualityoflife such asbusiness,health,andeducationhaslargelyfallen basic services,privateinvestmentforhighendfunctions environment. Intheabsenceofprioritizedinvestmenton basic urbaninfrastructures,amenitiesanddegrading The currentstatusofurbanareasisassociatedwithlack Infrastructure 3.5.10 JustificationofInvestmentonUrban from theVDCsthatareinproximitytoa is generatedfromthemunicipalitiesandabout30%come roads amountstoonly1%ofGDPwhileabout35% sanitation, solidwastemanagement,housing,andurban investment onurbaninfrastructuressuchaswatersupply, have bettereconomicgrowthprospects.Atpresentpublic opportunities. Urbanareaswithbetterinfrastructurealso the manufacturingsectorandcreationofemployment ment oninfrastru transportation costandmanufacturingaswell.Invest- incidence ofdiseases.Improvedroadconditionreducesthe ply, sanitationmayincreaselaborproductivitybymitigating ing standards. Investment oninfrastructuresincreasesproductivityandliv- through directincomeandcapital gains. through directincomeandcapital gains. Economic returnofinfrastructure investmentissubstantial Economic returnofinfrastructure investmentissubstantial ing standards. ing standards. Investment oninfrastructuresincreasesproductivityandliv- Investment oninfrastructuresincreasesproductivityandliv- Infrastructure Infrastructure 3.5.10 JustificationofInvestmentonUrban 3.5.10 JustificationofInvestmentonUrban Improvedinfrastructuressuchaswatersup- cture providestheeconomicstimulusfor

nd servicedbythese Although magnitude environment and labor productivity, rate of return is found reflected in thematic goals and targets—with a planning to be 23% in the World Bank supported urban development horizon spanning for the next 15 years (2016-2030). projects (1974-92). Similarly, financial rate of return of Altogether, there are 17 SDGs and 75 Nepal specific investment on water and sanitation is found to be 9%, water operational targets. Among these targets, raising GNI per supply 6%, and sewerage 8%. capita to USD 2,500 by 2030 from USD 772 in 2015 is the most pivotal one. It means that the implementation of Tax income is mainly generated in the urban areasareas. According SDGs may require about double the cost of graduation plan. to the economic survey of 2011-12, the total tax revenue was 13.2 % of GDP, compared to total government expenditure It is in this backdrop that NUDS and its enforcement holds of 23.5 % of GDP. This reveals that more than half of the enormous significance for guiding and accelerating the government expenditure is raised through taxation—which urban sector investment and contributing to the graduation is mainly generated in urban areas. With increased goal. NUDS’s emphasis on phased provisioning and productivity and living standards resulting from increased improving quality of basic urban infrastructure services in urban infrastructure investment, tax revenue is likely to all urban centers including investment on high end social increase further. and economic infrastructures especially in the large regional cities and on high speed inter-urban connectivity that also Role of NUDS in graduation of Nepal from LDC to middle- links hinterland is expected to provide an important income country by 2030. The Graduation Plan (NPC 2014) foundation to stimulate both the service and industrial to transform Nepal to a Developing Country (DC) from LDC sectors—two important pillars of graduation goals. Indeed, by 2022 was a national aspiration of paramount importance. basic service is the fundamental input to the city’s Three vital criteria that determines this graduation includes functioning and productivity. Only the productive places (i) Gross National Income (GNI), which needs to reach USD based on efficient and accessible infrastructure services hold 1502 by 2021 (ii) Human Asset Index (HAI) measured among greater potential to transform their comparative advantages others by percentage of nourished population and adult lit- and become competitive. eracy rate, and iii) Economic Vulnerability Index (EVI) mea- Furthermore, ensuing strengthened governance and sured among others by access to international market, share capacities of local bodies including management of urban of agriculture in GDP and coping capacity to natural disas- land—with the enforcement of NUDS will have positive ters. The Plan notes that Nepal has already met EVI and is ramification on improving both service delivery and creating likely to meet HAI by 2022. However, it lags behind attain- enabling environment for urban economic activities to thrive ing the GNI threshold. Given the limited time and resources, on. Such competitive urban areas in turn can entice both the national economy needs to grow at a formidable rate of private as well as foreign investment and turn into engines 9.2%. This means need to bolster investment on strategic of growth. Therefore, investment on urban infrastructures and catalytic sectors to meet the graduation goal. The Plan and enforcement of NUDS are major catalysts in the estimates the graduation cost to be around NPR 9,697 bil- graduation effort. NUDS has estimated investment lion (USD 96 billion). requirement of NRs 2,453 billion in basic infrastructures The newly embraced Nepal’s Sustainable Development Goals by 2030 to achieve more improved conditions. It means an (SDGs) (NPC, 2015) is embedded to the social aspirations urban infrastructure investment of NRs 980 billion by 2021— of MDGs (2000-2015) and economic aspirations of the which is a little above than 10 % of the total investment of Graduation Plan. In its vision, SDGs aspires to transform NRs 8,683 billion required in the service and industrial Nepal to “an inclusive, equitable, and prosperous middle- sectors in the same period (NPC, 2014) for the Graduation income country by 2030 with the spirit of a welfare state”. Plan to succeed. Thus, NUDS is expected to serve as a It aims to reduce all forms of poverty across the social groups, critical instrument to complement the future graduation effort class and geographical regions and promote human of the country. development with low vulnerability and higher human security. SDGs is primarily a strategic framework of national aspirations Intended Urban System and Milestones

85 86 86 86 86 86 Intended Urban System and Milestones strengthens economicandfunctionalbaseoftheseurban national andregional/provincialurbansystemthat development intendstoachieveabalancedandprosperous which censustowncanbeawayforward.Urban graduation ratherthananad-hocpoliticaldecision,for so thatdelineationisbasedonurbancharacteristicsand issue thatneedstobeinstitutionalizedinaformalsystem However, designation ofurbancentresisinitselfacritical development efforts. the strategiesreflectandcapturethesevaluesinurban sustainability, inclusivity, resilience,greenandefficient; highest valueofasociety. Guidedbyfiveprinciples,namely to attainaqualitativevisionforfuturecitiesthatreflect NUDS isnotlimitedtophysicaldevelopment,butaspires the identifiedissuesandattaindesirablecondition. benchmarks andformulatestrategiestohelpinaddressing develop strategicvisionforkeyurbansectors,establish issues thatneedtobeaddressedbyNUDS.NUDSaims the pathofurbanizationinNepal.Itunderscorescritical existing conditionofurbancentresraisesconcernsover regions withmaturingurbansystem.However, analysisof integrated systemasmaturedandMidFarwestern Existing urbanlandscapeshowsCentralandEastern Summary 2031 isstaggeringNRs.2,453billion required forallthemunicipalities,botholdandnew,by development potential.Thetotalestimatedinvestment future demandsofgrowingpopulationandunleashthe fulfilling existinginfrastructuredeficit,topositivelyattain aspiration ofintendedurbansystem,whichextendsbeyond and servicedelivery. Investmentisakeytoachievethe achieve thedesirableconditionssetintermsinfrastructure NUDS alsoattemptstoestimateinvestmentrequired and socialservices. environment, qualityofinfrastructure,economicproductivity of qualityurbanlifethatencompasses thematic sectorsandmilestonesthatmeasureenhancement which alsoserveasdevelopmentindicators,withineach and socialenvironment.NUDSthushassetmilestones, delivery systemandmaintainambientphysical,natural linkages, establisheffectiveandefficientinfrastructure centres withstrengthenedinter-urban andurban-rural contribution. development partners,eachwithdifferentshareof government, municipality, community, privatesectorand sources offundinghasbeenidentifiedasthecentral requirement inprojectedperiodof15years,thepossible the capacityoflocalbodytomeetinvestment . Asitextendsbeyond Key Points

 National urban development strategy is formulated with a time horizon of 15 years.  To improve the urban system, strategies include strengthening urban-rural linkages; upgrading inter and intra-provincial/regional road connectivity standards; facilitating small towns in realizing their comparative advantages; and creating infrastructure for “smart” towns in priority locations. Chapter 4  To upgrade urban infrastructure, the strategies seek to increase national resource allocation on urban infrastructure development; promote private sector investment; orient strategic investment for shared infrastructure; and build URBAN national/local institutional capacities for infrastructure development and service delivery. DEVELOPMENT  Major strategies for improving urban environment include promotion of multi- hazard approach to deal with disasters and climate change; promotion of urban STRATEGIES AND agriculture; promotion of innovative art, architecture and culture in new urban areas; facilitation of community and civil society organizations. ACTIVITIES  Strategies related to urban economy are geared towards enhancing the contribution of urban areas to the GDP and strengthening the economic base of urban areas so as to cover aspects of economic development, investment and finance.

Urban development strategies guided by five basic principles – sustainability, inclusivity, resilience, green and efficiency. Diagram source: NUDS, 2017

SUSTAINABILITY

URBAN GOVERNANCE

URBAN URBAN INCLUSIVITY SYSTEM INFRASTRUCTURE RESILIENCE

URBAN URBAN URBAN FINANCE DEVELOPMENT LAND

URBAN URBAN ENVIRONMENT ECONOMY

URBAN INVESTMENT GREEN EFFICIENCY (Asset & technology) (In service delivery)

Major Issues: Major Issues:

• • Major Issues: that needtobeaddressed. There aresomecommonissuesrelatedtotheurbansystem the desirableconditionswithineachtheme,andcoor- and governance.Thepurposeofthestrategyistoindicate infrastructure, environment,economy,investment andfinance, development ofthenationalurbanstrategyare It isinthiscontextthatthecriticalthemesconsidered spatial patternsofproduction,distributionandconsumption. development totheextentthattheymakeanimpacton strategies pursuedintheurbansectorinfluence of nationalandregionaleconomicdevelopment.The Urban developmentisthespatialmanifestationofprocess mid-west andfarwest national, provincialandregionalurbansystems area, tierdistributionissue)andfragmented(disintegrated) Major Issues: Major Issues:

4.NationalUrbanDevelopmentStrategy 4.NationalUrbanDevelopmentStrategy 4.NationalUrbanDevelopmentStrategy 4.NationalUrbanDevelopmentStrategy 4.NationalUrbanDevelopmentStrategy 4.1UrbanSystem 4.1UrbanSystem 4.1UrbanSystem 4.1UrbanSystem 4.1UrbanSystem Weakinterandintra-regionallinkagesparticularlyinthe Unbalanced(allurbanareadonotservethesurrounding potentials development context and built and endowed with in accordance cities promoteunique identity of S2. Plan,design and provincial capitals. urban centresfuture and services in major regional higher level functions and IdentifyS1. and facilitate system urban regional) and cial rovin (p national nationalStrengthened and sub- Desirable Condition Strategies Strategies

cities under City"One Identity" One concept. Enhance infrastructure and economic competitiveness of complementarity among cities of region and province development potentials, and to increase the functional Prepare plans of citiesin consistencywith theidentified institutions. to invest inthe developmentof infrastructure and government and/or provide incentives to the private sector Prioritize infrastructural investment through the institutions. of higher order/specialized education healthand provincial capitals with respect to the demand and supply Identify gapmajor in regional urbancenters National sub-nationaland (provincial and regional) urban primacy regional) Quality of connectivity (intra-provincial standards National sub-nationalhierarchy and of urban centres services and goods Sub-national (intra-provincial potential development unleash to a city of investment coordinated of degree and Quantity economic functions: health, education,Growth wholesale, of provincial manufacturing, capitals etc.)and regional cities (with higher order socio-

Activities/Inputs Activities/Inputs • society. dynamic articulationoftheheritage,ideasandvalues of thepolitical,socialandculturalspaceitprovidesfor by itselfhasnomeaningunlessitiscomprehendedinterms a political,socialandculturalconstruct.Thephysicalspace urban areaisnotmerelyaphysicalconstruct,itasmuch aspects, thereisalsoanappreciationofthefactthat this approachplacesemphasisonthephysicalplanning major issuesandachievethedesirableconditions.While dinated policydirectionsthatneedtobepursuedaddress • (location specificnicheagriculturepotential,bio-diversity) Mobilizingregionalresourcepotentialforurbangrowth Urbanprimacyandimpendingfederalre-structuring / regional Indicators

and

and inter-provincial

Urban SystemStrategies Urban SystemStrategies Urban SystemStrategies Urban SystemStrategies Urban SystemStrategies / einal region FNCCI MoLRM, MoWSS, MoF, MoUD,MoPIT, MoFALD, municipalities provincial agencies, and relevantMoUD, federal and FNCCI/CNI Board, Investment MoUD, MoIC,Nepal sector provincial agencies, Private federal relevant and MoUD, Lead/Supportive Agency / and inter-provincial and regional)

flow of flow

/

89 89 89 89 89 Urban Development Strategies and Activities 90 90 90 90 90 Urban Development Strategies and Activities S7: Createinfrastructureforsmartcities/towns S7: Createinfrastructureforsmartcities/towns S1: Indentifyandfacilitatehigherlevelfunctions S1: Indentifyandfacilitatehigherlevelfunctions S3: Upgraderegionalandinter-urbanroadconnectivity S3: Upgraderegionalandinter-urbanroadconnectivity S5: Facilitateintermediateandsmalltownstorealize S5: Facilitateintermediateandsmalltownstorealize S7: Createinfrastructureforsmartcities/towns S1: Indentifyandfacilitatehigherlevelfunctions S3: Upgraderegionalandinter-urbanroadconnectivity S5: Facilitateintermediateandsmalltownstorealize and mobilizationofregionalresourcepotential S6: Strengthenurban-rurallinkagethroughidentification S7: Createinfrastructureforsmartcities/towns S7: Createinfrastructureforsmartcities/towns S1: Indentifyandfacilitatehigherlevelfunctions S1: Indentifyandfacilitatehigherlevelfunctions S3: Upgraderegionalandinter-urbanroadconnectivity S3: Upgraderegionalandinter-urbanroadconnectivity S5: Facilitateintermediateandsmalltownstorealize S5: Facilitateintermediateandsmalltownstorealize

potentials comparative advantages and small towns torealize their S5. Facilitateintermediate and advantages and potentials revive andrealize comparative catalytic urban centres, to help Janakpur Rajbirajand as the major in southern Tarai towns like Marga) infrastructure and standards S4.Improve connectivity (Hulaki standards connectivity Upgrade S3. Urban SystemStrategies Urban SystemStrategies Urban SystemStrategies Urban SystemStrategies Urban SystemStrategies services inmajorregionalurbancentres services inmajorregionalurbancentres standard standard their potential their potential services inmajorregionalurbancentres standard their potential services inmajorregionalurbancentres services inmajorregionalurbancentres standard standard their potential their potential Strategies Strategies prioritize investmentsconnectivity to upgrade in digitalEstablish connectivitystandards and (provincial), or central government prioritize investment inupgradingthrough district cars,cable water ways, etc.)standards and inter-regional/provincial)and connectivity(road, Establish sub-national (intra-regional/provincial participation with the private sector. and develop local economic development plans in localtheir comparative/competitive advantages Facilitate and support small towns to identify privatethe sector intowns. economic development plans in participation with competitive advantages anddevelop local toidentifytown theirlocal comparative/ facilitateIdentify, and supportsouthern Tarai urban/rural corridors. Activities/Inputs

private sector participation with the sectoral agenciesin Local bodies, MoUD and Local bodies. MoUD, MoFALD, TDC, Private service providers MoI, Nepal Telecom, provincial/local bodies MoUD, MoPIT/DoR, Lead/Supportive Agency

Major Issues: Major Issues:

infrastructures • • Major Issues: sector asawholethatneedtobeaddressed. But therearesomecommonissuesrelatedtotheinfrastructure Each thematicareainurbaninfrastructurehasspecificissues. • Major Issues: Major Issues:

system. nationalsub-national and urban capitals with the development of IntegrateS9. future provincial functions outside the valley de-concentrateand incompatible functions in the Kathmandu Valley tourismand friendly economic S8. Promote environment, heritage information system) transportation, infrastructure and technology driven energy, towns/cities (costeffective, efficient, CreateS7. infrastructure for “smart” S6.Strengthen urban-rurallinkage all areas urban in provision service and infrastructure quality Basic Inadequate government Limited 4.2 UrbanInfrastructures 4.2 UrbanInfrastructures 4.2 UrbanInfrastructures 4.2 UrbanInfrastructures 4.2 UrbanInfrastructures Lack ofsystembasedperiodic private sectorinvestment private sectorinvestment private sectorinvestment private sectorinvestment private sectorinvestment Strategies Strategies Desirable Condition Condition Desirable investment investment investment investment investment onurbaninfrastructure

onurbaninfrastructure

maintenance maintenance maintenance maintenance maintenance strengthening intra-provincial linkages. proposed provincial capitals with focus on Plan and prioritize infrastructure development in incentives/disincentives for de-concentration Develop operationalize and specialized functions outsideKathmandu valley Develop priority areas ofde-concentrating as one urban region operationalize the concept of Kathmandu valley Review, formulate, institutionalize and infrastructure and physical development plans. prioritize thedevelopment ofrequisite highway, and major tourismpotential areas to east-west the along nodes strategic at towns and inprovincial capitals,ten mid-hill new towns, towns/cities andinitiate phased implementation Developthe operational concept“smart” of Promote and facilitate rural-urban value chain hinterland. realize the identified resourcepotential of the Prioritizeand invest critical on infrastructure to Identifyresource potentialof hinterland

of

Citizen Report Card Index Condition Infrastructure Urban Activities/Inputs all urbanareasandforeconomic classes) • • rather thanaregionalviewwithmultiplesettlements planning andimplementation;focusonindividualsettlement •

Weak Inadequate Lagging institutional capacity institutional capacity institutional capacity institutional capacity institutional capacity institutional coordination institutional coordination institutional coordination institutional coordination institutional coordination institutional coordination infrastructurecoverageandaccessibility infrastructurecoverageandaccessibility infrastructurecoverageandaccessibility infrastructurecoverageandaccessibility infrastructurecoverageandaccessibility Indicators Indicators to deliverinfrastructureservices KVDA, MoUD, MoFALD privatesectorsand provincial agencies, with relevant federal, MoUD in association Municipalityand Sectoral agencies,DDC agencies and TDC MoUD, DoR, sectoral industry, energy, etc.) forestry, tourism, agencies (agriculture, LA: DDC/Sectoral bodies provincial andlocal MoUD, proposed relevant agencies association with KVDA in and MoUD relevant agencies association with MoUD andKVDA in Lead/Supportive in infrastructure Agency Agency (in

91 91 91 91 91 Urban Development Strategies and Activities 92 92 92 92 92 Urban Development Strategies and Activities performance investment infrastructure improve planning and implementation to S16.Ensure increased efficiencyin deliveryservice and infrastructure development for capacities institutional national/provincial/local Build S15. and development inclusive urban infrastructure planning S14. Fac through clustercity approach large urbanregion corridor and higher order/shared infrastructures in S13. strategicMake investmenton appropriate norms andstandards services in all urban areas—based on S12.Provide basic infrastructure higher order infrastructures investment bothon basic services and S11.Promote private sector deliveryservice development, maintenance and allocation onurbaninfrastructure S10. Increase national resource

Strategies ilitate integrated and and integrated ilitate

Devise andoperationalizepolicies for the Center (UPDC) to at undertake DUDBC project Operationalize of urban policy, plans, and programs Unit (USEIU) at MoUD to guide implementation Establish Formulate proposals to fill in the gaps in infrastructure service and delivery Review and map institutional capacities andgaps process groups/classes) integrate and in the planning planning (by geographic locations, disadvantaged Identify inclusive concerns in infrastructure order/shared infrastructure and time-bound plan Develop and prioritize the nature of higher higher order/shared infrastructure Specifythe nature of strategic investmentin clusters Identify urban regions and corridors and city infrastructure basic Monitoring, updating andreportingstate the of all-purpose wiring,cables and pipes project for underground ductsystem for laying of and support local bodies to implement a pilot Prepare design andimplementation guidelines areas infrastructure and plan for provision in all urban Define norms, standards andquality of basic investment urban infrastructure on Provide incentives for the private sector for development infrastructure allocation of budgetary resources for urban least of capital% 1.5 budget infrastructure project planning and design to at Increase national budget allocation for urban Municipal Project Readiness Prepare andinstitutionalizeGuidelines for bank planning, projectpreparation, createand project

Urban Sector Efficiency Improvement

Urban Planning Development and Activities/Inputs Activities/Inputs

relevant agencies agencies relevant localMoUD, bodies and Nepal Investment Board MoF with MoUD, FNCCI/CNI, NPC/MoF, MoUD NPC/MoF/MoUD/DUDBC MoUD/DUDBC/Municipalities MoUD/DUDBC MoUD andlocalMoUD bodies andrelevantMoUD agencies agencies relevant localMoUD, bodies and Lead/Supportive Agency Lead/Supportive

4.2.1 4.2.1 Major Issues: Major Issues: 4.2.1 • • Major Issues: Major Issues: Major Issues: 4.2.1 4.2.1 Poorcoverageofpipedwaterwit Wastewatertreatmentplantsnotinplaceorfunctional Storm water drainage along black toppedurban road treatment on-site rest and feasible where system Sewerage % HHhaving owntoilet100 Sanitation Compliance of Nepal Water Standard Water Safety Promotion of rain water harvesting andrecharge Protected and sustainably managed freshwater sources Water Security wards) rural in system supply water Neighborhood Community/ Access watersupply topiped wards; inurban (100% ward)rural Per capita consumption (100 lpcd in urban ward, 65lpcd in Water Provisioning emergency purposes purposes emergency storage facilities in place for S22. Build community water Standard Water Nepal in place assure to system monitoring S21. Internalize regular produce deliver and safe water S20. Strengthen system to Water Safety spaces recharge provisions in public S19.Institutionalize water permit system harvesting inwater the building S18. Institutionalize in-built rain sources water S17. Protect and manage fresh Water Security W W W W W ater SupplyandSanitation ater SupplyandSanitation ater SupplyandSanitation ater SupplyandSanitation ater SupplyandSanitation Strategies Strategies Desirable Condition h sub-standardwater for emergency purposes Plan and build community water storage facilities quality from consumer inplace water on system reporting and awareness Public where necessary rectified and tested regularly samplesare Water place in system Functional water treatment plants and monitoring recharge water for locations strategic facilitate ecologicallyIdentify and public spaces. Provide incentives to allow water recharge in local incentives harvesting at household and communitylevel with Building permit for system protection and management of watersources Delineation of sources and legal basis for quality Activities/Inputs • HHs withouttoiletandsanitationfacilities of water harvesting toprovision tied system permit building municipal All deforestation, encroachment Status of watershed extentafforestation,– of of HH% with access to public taps ward accessof HH with % watersupply inurban topiped capitaPer Consumption Ratio Ratio of black topped with storm water drainage Functional waste water treatment facility HH withtoilets % monitoringNDWQS provision ofrainwater Indicators Local bodies agencies MoWSS relevant and MoWSS and municipalities MoFSC MoUD, MoWSS, municipalities and MoWSS MoUD, MoFSC with MoWSS Lead/Supporting agency agency Lead/Supporting

93 93 93 93 93 Urban Development Strategies and Activities Strategies Activities/Inputs Lead/Supporting agency

Water Provisioning S23. Augment investment in Tariff to be based on the depreciation, MoWSS and relevant increasing coverage and quantity of operation and maintenance cost; also to cover agencies water supply the cost of assets in case of loan components Unbundling production and distribution of S24.Facilitate and encourage private water wherever feasible MoWSS and private sector sector involvement in water supply Water purchase agreement Sanitation Link incentives – such as provision of design/construction approval by the local S25. Enhance awareness and MoUD, MoWSS and government – with building HH toilets. incentives for building toilets municipalities Special cases – community toilets for landless people S26. Augment investment in Co-financing mechanism involving government MoWSS, MoUD, local building waste water treatment and beneficiaries and community participation bodies system

 4.2.2 Solid Waste Management   Major Issues:  Lack of sustainable long term approach to solid Poor collection of solid waste and open dumping practice waste management Desirable Condition Indicators

100% HH waste collection in urban areas (10 ppha) % of HH waste collected in municipalities

Sanitary landfill site provisioned by the municipality or Provision of sanitary landfill sites cluster of municipalities 3R (Reduce, Reuse, Recycle) system practiced in all System practiced. municipalities Proportion of potential waste reduced, reused and recycled

SWM Unit/ Capacity development in all municipalities Functional SWM Units in municipalities

Strategies Activities/Inputs Lead/Supporting agency

Solid waste collection

S27. Encourage community led waste Encourage/facilitate segregation of waste at Municipalities, ward level segregation and collection (entity/HH) HH level committees/TLO MoFALD (SWMTSC), S28. Promote public-private partnership Create model of waste reuse and recycle at Municipalities, Civic groups, in waste collection and management HH level that can be replicated private sector Sanitary land fill Site

Identify feasible location for land-fill site S29. Adopt sanitary landfill site as MoFALD (SWMTSC), and transitional strategy to reach condition of Construct model landfill sites that exemplify municipalities 3R. standards for its operation and management for three ecological regions. 3R: Reduce, Reuse, Recycle

S30. Promote/mandate 3R at household Create full-fledged operating model of 3R MoFALD (SWMTSC), and community level. including composting at HH/community level Municipalities, TLO, WCF Urban Development Strategies and Activities and Strategies Development Urban

94 Strategies Activities/Inputs Lead/Supporting agency

S31. Incentivize private sector to reuse and recycle waste through appropriate Establish institutional and legal basis for Municipalities, MoFALD technology reuse, recycling (SWMTSC), private sector

SWM unit in municipalities

S32. Establish dedicated and Municipalities with capacitated SWM unit in all Establish SWM unit in all municipalities MoFALD (SWMTSC) municipalities support S33. Delineate institutional Review existing framework and introduce responsibility and accountability at MoUD, MoFALD central level with respect to SWM appropriate reforms.

4.2.3 Transportation Major Issues:

• Road density and standards not internalized in urban land • Standards and quality of inter-urban connectivity use planning not yet established. • Sustainable urban public transport system not in place

Desirable condition Indicators

Intra-Urban Adequate road infrastructure (7.5km/sq.km in core and Road density in urban core and expanding areas. higher in urban expansion areas) % coverage of road per sq. km.

Provision of sustainable urban public transport services Population served by sustainable urban public transport in cities with population more than 100,000. services

Inter- Urban Average design and travel speed (connectivity to major Provision of better quality inter-urban connectivity urban areas)

Lead/Supporting Strategies Activities/Inputs agency Intra-Urban Encourage land use based transport development in urban MoUD and DoR areas S34. Integrate land use and Formulate supportive building by-laws in coherence with transportation in town and town and city plans (high FAR near public transport route, regional planning land use which generates/attracts more visitors and traffic Municipalities in higher accessible locations) MoUD, MoPIT Periodic monitoring of land use and transportation

interface Activities and Strategies S35. Develop institutional Develop sectoral coordination mechanism between MoPIT, mechanism and capacity to MoUD and MoFALD MoPIT, MoUD and address issues related to MoFALD Build transportation orientation within MoUD urban transport and land use S36. Provide hierarchically Identify roads of different hierarchy based on traffic balanced urban road volume/ridership within urban limits. DoR, DoLIDAR, infrastructure in coordination Municipalities with DoR and DoLIDAR. Expand/upgrade roads to meet the standards

95 Urban Development 96 96 96 96 96 Urban Development Strategies and Activities Major Issues: Major Issues: Major Issues: economic weakersections) • 4.2.4 Housing Major Issues: Major Issues: infrastructureprioritizedregions in S39. Provide high speed inter-urban Inter management plan S38. Prepare transportation transport urban public sustainable S37. Promote informalsettlements Reduced/regulated iii) safe housing and adequate ii) affordable, i) Housing that is: friendly buildings economic and ovative, environment inn Promote S42. housings group of dards stan Regulate S41. (economically EWS the weaker to sing hou strata)provide S40.Encourage private sector to Lack ofaffordable,adequateandsafehousing(including

Urban

Strategies Strategies Strategies Desirable Condition

in urbanareas. ecologically sensitive and vernacular construction and technology building material vernacular and sensitive ecologically Develop model and promote practices of environment friendly design building Researchfor innovative, economic and and standards regulations and Review, update group monitor housing sectors private encourage to etc. provisioning land/infrastructure facility package: Review and incentive relevant develop and urban form. urban form. ribbon development servicewith tracks and alternative Regulateland use along inter-city trunk corridor to manage objectives development urban promote to railway) Align inter-city transportation strategy (including proposed and regions prioritized infrastructure urbanin centres Conduct feasibility study of inter-urban transportation management and road safety Preparelocal parking management planfor traffic (cyclepeople) differently-able walkways for tracks, also through andNMT standards guidelines Promotion of non-motorized transportand pedestrianization SMC and/or Metropolitan LRTConduct BRT, route and study MRT for planning and in city public transportation Reviewto empower institutional mechanismto people capacity, design regulatecentric high of transport provision through public Improve existing

Activities/Inputs Activities/Inputs • population Number of andsettlements, squatter % of squatter ofcodesadoption building capita per area floor andIncome housing price ratio Increasing %ofsquattersettlementsinurbanareas

Indicators Indicators MoUD, IoE/TU IoE/TU MoUD, sector privateMoUD/Municipalities, agencies MoUD, MoLRM and relevant Lead/Supporting DoRailways DoR, MoUD, MoUDDoR, Municipalities MoUD, municipalities MoUD, DoTM, DoTM DoTM MoUD, DoR, MoUDDoR, Lead/Supporting agency

agency

Strategies Activities/Inputs Lead/Supporting agency Facilitate private sector for affordable rental Relevant government housing through provision of incentives and agencies, MoUD facilities (Incentives: easier permit process, facilitation in land consolidation, taxation abatement S43. Discourage squatter Facilities: facilitating development and settlements and encroachment on access to infrastructure provisions such as public land roads, utility lines, etc.

Municipalities, TDC, adjacent Prepare inventory and map of public land and VDCs and relevant agencies ensure its monitoring and protection

S44. Promote People’s Housing Create institutional and legal basis and and encourage and facilitate co- incentives for facilitating the cooperative operative mechanism for the sector MoCPA, MoUD production of housing for EWS. Promote People’s Housing with livelihood activities S45. Encourage and facilitate Review existing policies, law and create production of serviced land institutional and legal basis to facilitate and MoUD, municipalities, private through public-private/community encourage schemes such as land pooling sector partnership through community/private sectors

4.2.5 Energy  Major Issues  Inadequate and unreliable energy supply for urban Inadequate energy efficiency and green energy needs. Desirable Condition Indicators

100% access to reliable power supply (electricity) for all % households with access to reliable power supply urban activities including alternative energy sources

Energy efficient building design and construction Percent of new construction complying with energy efficient design

Strategies Activities/Inputs Lead/Supporting agency Develop incentives to promote solar S46. Promote optimal use of solar energy in urban areas MoE, Nepal Electricity energy for all purposes Authority (NEA) Establish mechanisms to sell/share surplus power to the national grid

S47. Develop pricing mechanisms for Implement differential pricing at peak MoE, NEA large institutions and lean hours for large institutions Activities and Strategies

S48. Promote passive design, and use Prepare models and guidelines, and of energy efficient building materials disseminate designs for energy efficient MoUD, IoE/TU construction for all ecological regions

S49. Promote hydro-power Prioritize hydropower projects in development that is oriented towards Ministry of Energy/NEA consideration of urban locations urban centers

97 Urban Development 98 98 98 98 98 Urban Development Strategies and Activities

Major Issues: Major Issues: 4.3.1 UrbanSafetyandResilience 4.3.1 UrbanSafetyandResilience Major Issues: 4.3.1 UrbanSafetyandResilience municipalities • • cultural environment.Theextenttowhichthesocio-cultural environment ofurbanareasbutalsothenaturalandsocio- Urban environmentencompassesnotmerelythebuilt-up development andmanagement Major Issues: Major Issues: 4.3.1 UrbanSafetyandResilience 4.3.1 UrbanSafetyandResilience environment ecologically sensitive, and clean and healthy urban Physically aesthetic, socio-culturallyinclusive, vibrant, areas. urban resilient and safe culturally and environmentally Physically, socially, economically, monitorthem in all urban areas mechanisms to enforce and with learnt lessons of basis the on guidelines and planning by-laws and regulations building code, building strengthen to review EstablishS52. settlement integrated safer Promote S51. including climate change indealingapproach with disasters multi-hazard Promote S50. 4.3 UrbanEnvironment 4.3 UrbanEnvironment 4.3 UrbanEnvironment 4.3 UrbanEnvironment 4.3 UrbanEnvironment Building codesnotinplaceorenforcedall Internalization ofsafetyandresilienceissuesinurban Desirable condition Strategies

system of periodic of system Desirable Condition

Monitoring system that checks status of defined indicators indicators defined of status checks that system Monitoring settlements of location guide/prohibit that guidelines Operating schools and hospitals like buildings community of distribution and Numbers Data availability (hydrological data, water source,etc.) andearly warning systems inplace areasand safe community shelters, water reservoirtank, enforcement ofbuilding code Urban areas withoperating brigade, fire number and distribution ofdesignated evacuation

building code/regulations/guidelines planningand by-laws technicalIncrease capacityof local the bodiesto enforce code/regulations/guidelines andplanning by-laws Conduct periodic review of building Regulations Building and Code Integrate National the complementarity Buildingbetween excludingrisk prone environmentally and sensitive areas safer locations greaterhaving advantages—while comparative in only development infrastructure urban and settlement Allow infrastructure and settlements urban on (NAP) Plan Adaptation National Formulate different ecological regions Generate information on climate changein urban areasof plans development Incorporate in urban disaster riskcomponent management and prepare multi-hazard map of all urban areas rapid appraisal hazard Develop identify to technique hazards existing building regulations inareasall available urban based areas on information,and risk high identifying mapping resource sensitive risk Prepare Urban environmental indices (to be developed) and andclean healthy aspects urban of areas report cardCitizen on the physical, socio-cultural and ecological, different ecologicalregion • • environment determinesthelivabilityofanurbanarea. and naturalenvironmentisenhancedbythebuilt-up Low levelofresiliencetodifferenttypeshazards Lack ofinformationonclimatechangeinurbanareas Activities Indicator

Indicators Indicators

and MoUD bodiesLocal and MoUD bodiesLocal Municipalities MoUD and Lead/Supporting Lead/Supporting agency agency

M M 4.3.3 UrbanAgriculture 4.3.3 UrbanAgriculture 4.3.2 UrbanLand,Air 4.3.2 UrbanLand,Air M 4.3.3 UrbanAgriculture 4.3.2 UrbanLand,Air Lack ofintegration ofurbanagriculturein urban landuseplanningand managementconcept. • Major Issue: M M 4.3.3 UrbanAgriculture 4.3.3 UrbanAgriculture 4.3.2 UrbanLand,Air 4.3.2 UrbanLand,Air urban areas all in pollution of standards S57. Comply with set to reduce vulnerability civic bodies based volunteerism on capability theof community and S56. Build and awareness bodies local and government the of capacity adaptive and preparedness S55. Enhance DRM for framework S54. Establish institutional disaster any better after Build back S53. setstandards of air, water, noise and land pollution Improvement ofurban environment in meeting existing Increased levelofpollutionandlackcontrolmechanisms ajor ajor ajor ajor ajor I I I I I ssue: ssue: ssue: ssue: ssue: Strategy Strategies Desirable condition , V , V , V , V , V at ward levelto implement UEMG inall municipalities projects pilot develop to bodies local encourage and Facilitate and Standards Management Guideline (UEMG), 2011 andPlanning Norms Review, update and implement Urban Environment isual andW isual andW isual andW isual andW isual andW

community organizations andcommunityorganizations civic bodies appropriate implement drillsPlan periodic and through civic bodies and communities and tools tools for and building capacity infrastructure educative aterial, m awareness Prepare andthe local government bodies human Enhance resource and institutional capacity of Develop capacity buildingtools and training programs function after anyimmediately disaster financing for institutionalmechanisms the to framework capacity, adequate Develop legislative and base their and actors key roles responsibilitiesand andfor during any disaster identifying Procedures Operating Establish institutional buildings structuralMonitor changes and thefunctional in levelhousehold technicalProvide support forsafer building practices municipalities provide retrofittingto services buildings and technicalcapacity enhance of public & private for retrofitting guidelines Prepare areas urban all in planning by-laws code/regulations/guidelines and periodic building and regulation, use ofland monitoring enforcement andatory m Facilitate laws that be can understood at grass root level Prepare simplified building guidelines and planningby- ater Pollution ater Pollution ater Pollution ater Pollution ater Pollution Activities/Inputs Activities/Inputs

framework and Standing and framework Budget allocated to projects guided UEMGby standards Monitoring of pollution levelsto with comply set Activities Activities

Indicator

at Municipalities Municipalities and MoST MoUD,

Lead/Supporting agency agency Lead/Supporting MoUD, MoHA, MoUD, MoUD Municipalities and MoFALD, MoUD, and Municipalities bodies, WCF, TLO, Civic MoHA, MoUD, Relevant agencies and Municipalities Lead/Supporting agency

99 99 99 99 99 Urban Development Strategies and Activities 100 100 100 100 100 Urban Development Strategies and Activities M M Major Issues: Major Issues: 4.3.5 UrbanFacilitiesandAmenities:Open Spaces 4.3.5 UrbanFacilitiesandAmenities:Open Spaces 4.3.4 UrbanForest 4.3.4 UrbanForest M spaces’ Major Issues: 4.3.5 UrbanFacilitiesandAmenities:Open Spaces 4.3.4 UrbanForest • forest promotionandconservationprogram. Lack ofintegratedapproachtopromoteandsupporturban M M Major Issues: Major Issues: 4.3.5 UrbanFacilitiesandAmenities:Open Spaces 4.3.5 UrbanFacilitiesandAmenities:Open Spaces 4.3.4 UrbanForest 4.3.4 UrbanForest New urban area: 5% of land at ward level. ward land at 5% of area: urban New levelat ward land area: 2.5% of urban Existing areas minimum forest cover in urban S59. Promote/maintain products horticultural and vegetable food, for S58. Promote urban agriculture hazards. urban areas to improve urban environment and reduce in forest of utilizationand Management, expansion vegetable food, and products horticultural Urban Agriculture supplementing urban fordemand ajor ajor ajor ajor ajor Lack ofstandarddefinitionandaccounting‘open I I I I I ssue: ssue: ssue: ssue: ssue: Strategy Strategy Strategy Strategy Desirable condition condition Desirable Desirable conditionDesirable Desirable condition Agriculture Office (DAO) municipal plan,with technical supportfrom District Urban agriculture asstrategic a component within Norms and Standards focusing on urban agriculture ManagementGuideline (UEMG), 2011andPlanning Review, update, implement Urban Environment Norms and Standards focusing on urban forests Management Guideline (UEMG), 2011 and Planning Review, update, implement Urban Environment urban areas Identify suitable areas for promotingforest cover in Activities/Inputs Activities/Inputs Percentage of open space at wardof space level at open Percentage areas urban in space open and land government of Inventory from areas urban Percent demand of and vegetable of methorticulture products Agricultural land stock in urban areas Percentage of in of urban coverage Percentage areas forest • Lack ofmunicipallevelinformation Indicator Indicator Indicators Indicators Indicator Indicator

Municipalities, DAO Municipalities MoUD, MoAD and Municipalities Municipalities MoUD, MoFSC and Lead/Supporting Lead/Supporting agency

agency agency Strategy Activities/Inputs Lead/Supporting agency

S60. Promote/maintain Review, update and implement Urban Environment MoUD and minimum stipulated open space Management Guideline (UEMG), 2011 and Planning Municipalities in urban areas Norms and Standards 4.3.6 Urban Art, Architecture and Culture Major Issue:

Nurture, foster and/or induce art, architecture and culture as an important aspect of urban development Desirable condition Indicators

Vibrant traditional art, architecture and culture in urban Number of tourists areas. Number of cultural activities/events

Innovations in art, architecture and culture in new urban Proportion of municipal budget spent on cultural areas. activities/events

Strategies Activities Lead/Supporting agency

S61. Rehabilitate historical Incorporate art, architecture and cultural MoUD, MoCTCA, DoA, and buildings preserving their traditional elements and perspective in building by-laws municipalities façade but with modern amenities and land use. and functions (with adaptive re- use).

S62.Document and develop heritage Develop urban regeneration programs based sites, routes, museums tied with Tourism Board, DoA, MoUD on heritage value, that is tied with local local economy of historical areas, in and municipalities economy, in a visitor friendly way. visitor friendly way.

Prepare guidelines to encourage innovations S63. Promote innovation of art, in art, architecture and culture in new urban Municipalities, MoCTCA, architecture and culture in new areas that incorporates local and surrounding MoUD, Local artists urban areas. cultural/natural assets.

4.3.7 Community Organization and Youth: Major Issues:

• Lack of community participation in urban development. • Lack of youth participation in urban planning • Inadequacy in urban development that addresses needs of special groups Desirable Condition Indicators opment Strategies and Activities and Activities opment Strategies

All urban wards with TLO, CBO, WCF Number of active TLO, CBO, WCF % of youth in TLO, CBO, WCF Youth participation in planning and community development activities. Number of youth focused programs

Mainstreaming GESI in urban development GESI institutions in place Urban Devel 101 102 102 102 102 102 Urban Development Strategies and Activities 4.3.9 UrbanHealth: 4.3.9 UrbanHealth: 4.3.8 UrbanSecurity: 4.3.8 UrbanSecurity: • Major Issues: 4.3.9 UrbanHealth: Major Issue: 4.3.8 UrbanSecurity: • Lessawarenessonenvironmentalhealth • ln-equityinaccesstourbanhealthservices and management • 4.3.9 UrbanHealth: 4.3.9 UrbanHealth: 4.3.8 UrbanSecurity: 4.3.8 UrbanSecurity: development special groups in urban S66. Address issues related to development in urban activities focused Support youth S65. wards. TLO, CBO, WCF in all urban Form activelyS64. engaged public sp ace and neigh borhood borhood neigh and ace sp public spatialdesign elements in S68. Practice appropriate mechanisms security S67. Develop community Safe secure and public spaces and neighborhoods environment of urban areas Goodhealth of urban citizensand healthy living Limited urbanhealthamenities Lack ofintegrationurbansecurityinplanning Strategies Strategies Strategy Strategy Desirable Condition Desirable Condition Desirable

io rojects. p pilot incorporatingappropriate design elementsPrepare model public space neighborhoodandand initiate public spaces to safety. of ensure the Surveillance incorporate the participation of special groups Review Initiate designyouth offocused activities implementexisting and Review guidelines. inventoriesUpdate in existing municipalities. municipalities. innew TLOs, of formation Prioritize

existing planning and GESIguidelines to Numb er of public spaces with surveillance mechanism mechanism surveillance with spaces public of er Numb % % road of with length street lighting neighborhood level Number and distribution of security alert mechanism at public space of and enjoy-ability on cleanliness the Report Card Citizen’s Citizens’ active participationin socio-economic activities Activities Activities Activities Activities Indicator Indicator

Indicator Indicator MoUD, IoE/TU and Policing agencies MoHA, Municipalities Municipalities MoUD, MoFALD, CBOs,WCF TLO, Municipalities, CBOs,WCF TLO, Municipalities, Lead/Supporting agency Lead/Supporting agency Major Issues: Major Issues: 4.4UrbanEconomy 4.4UrbanEconomy Major Issues: 4.4UrbanEconomy • employment • Major Issues: Major Issues: 4.4UrbanEconomy 4.4UrbanEconomy Increasingincidenceofurbanpoverty. Inabilityofmunicipalitiesingeneratingwealthand health conditionshealth S70. amenities health urban adequate S69. Promote establishment of opportunities. opportunities. growth that creates wealth and employment of vibrant quality economy a urban and with Productive

Improve environment Improve tive advntages local, regionalandprovincialcompara- S72 Buildcompetitivenessbasedon vincial EconomicDevelopmentPlan mentation ofLocal,RegionalandPro- S71 Facilitateformulationandimple- Strategy Strategy Desirable Condition

Operationalize Urban Health Policy and action plan healthy urban settingsurban healthy and community driven awarenessprogram fordeveloping institutionalEstablish support school for mechanism urban health centers and hospitals in urban plan for provision locationEarmark space and adequate of Activities municipalities of GDP % of urban poor urbanpoor of % employment) Employment ratio (employment, unemployment and under- occupation, non-agricultural in active population Economically • SluggishrateofGDPgrowthinurbanareas. Indicators

MoUD/Municipalities MoUD/Municipalities MoUD/Municipalities MoHP, Lead/Supporting agency agency Lead/Supporting

103 103 103 103 103 Urban Development Strategies and Activities 104 104 104 104 104 Urban Development Strategies and Activities S75. Alleviate urban poverty urban economy mainstreaming of informal S74. Emphasize disaster affected urban centers. historic core areas and the urban regeneration program in S73. Plan implementand advantages provincial comparative based on local, regional and S72. Build competitiveness Economic Development Plan Regional and Provincial implementation of Local, S71. Facilitate formulation and Strategies Strategies

Formulate Local, program following focused group discussion poor prioritizing tourban focused (CDP) Program Development Community targeted Implement mapping urban poor—through poverty profile and/or poverty Identify socio-economic, spatial characteristics of workers. sector informal for programs Design informal economic activities Provisioning of space and time for specified regeneration through incentive structures Promote public/private investment regeneration Formulateguidelines and basis for urban comparative advantages. Promote investment to trigger realization of Prioritize infrastructure development accordingly advantages through supportive policies identify local, regional and provincial comparative Facilitate local/regional/provincial sector development component in partnership with private and regions including entrepreneurship for small municipalities towns, Plan Development transportation) Pro-poorurban planning (housing, infrastructure,

capacity building trainings andorientation

Regional Activities/Inputs

and Provincial

authorities

in urban

Economic

to

MoUD, Municipalities Municipalities MoUD, Municipalities, private sector agencies relevant MoUD, Municipalities, private sector sector supported by MoUD. Municipalities andprivate municipalities MoCPA , MoUD, PAF, Municipalities sector groups Municipalities andinformal Municipalities, private sector Lead/Supporting

agency agency

Major Issues: Major Issues: 4.5UrbanInvestment 4.5UrbanInvestment Major Issues: 4.5UrbanInvestment • • Major Issues: Major Issues: 4.5UrbanInvestment 4.5UrbanInvestment southern tarai towns and inner-tarai and in under-developed regions of regions west far and mid of areas S80. Increase investment inurban community contribution of beneficiaries/ roads—while also ensuring KVDA, Municipality for urban including DUDBC, MoPIT, MoFALD, agencies government of budget S79: Optimize and urbancorridors projectsin clustered urbanregions for strategic urban infrastructure S78. Channelize guiding investment services in all municipalities improving basic infrastructure S77. Make phased investment for sector government including the private all sectoral agencies and layers of involving areas urban in investment S76. Enhance coordinated 15 years (2017-2031) from the present NPR4,646. increasing to at least NPR 9,300 per person per annum withinthe next Strategic and adequate public investment onurban infrastructures Uncoordinated anddispersedinvestment Investment deficitforurbaninfrastructures(publicand private) Strategies Strategies

proportion of annual Desirable State State Desirable

Banepa Municipality regions. Janakpur, Lahan,Rajbiraj, Panchkhal,Dhulikhel and and valleys Sindhuli and Udaypur Surkhet, Dang, in PrepareDevelopment Planandprioritize investment continuously updated, put into implementation, and monitored Investment Plan on Urban Infrastructures is prepared/ Rasuwa corridors Narayanghat-Mugling-Gajuri-Nuwakot- Khurkot, Panchkhal-Dhulikhel-Banepa-Panauti-Bhakundabesi- corridors, Sindhuli-Ramechhap-Dolakha-Lamosangu- Nepalgunj-Kohalpur, Dhangadhi-Attariya-Bhimdatta Hetauda,Taulihawa-Siddharthanagar-Butuwal, region,Biratnagar-Dharan, Birgunj- Udaypur andLahanvalleys, Chitawan-Ratnanagar Kathmandu valley, Pokhara valley, Dang valley, development of urban regions and corridors: forPlan strategic infrastructure projects for integrated regional cities and provincial capitals Improvement Programsbeginning (UEIP) with larger Develop and implement Urban Environment development investment as stipulated by NUDS Government approval for sustained urban Activities/ Inputs • Lagging investmenttothebackwardregions annum infrastructures measured ininvestment per Government investment inurban

Indicators Indicators local bodies MoF/NPC/provincial and and local bodies MoUD, TDC, provincial MoUD/DUDBC authorities/agencies concerned Investment Board, MoUD, Nepal municipalities government, concerned MoUD, provincial Lead/Supporting agency 105 105 105 105 105 Urban Development Strategies and Activities 106 106 106 106 106 Urban Development Strategies and Activities Major Issues: Major Issues: 4.6UrbanFinance 4.6UrbanFinance Major Issues: 4.6UrbanFinance infrastructure provision • Inadequateprivatesectorparticipationinbasic town level • Increasingnumberofunfundedresponsibilitiesatcity/ match withexpenditureassignmentsoflocalbodies • Inter-Government FiscalTransfer (IGFT)inadequateto Major Issues: Major Issues: 4.6UrbanFinance 4.6UrbanFinance investmentto urban areas S82: Prioritize demand driven provisionservices of promoting growth urban and new towns for and centers administrative district/local towns, border centers, market towns, small strategic S81. investment Prioritize in government S83. Optimize by IGFT Self-reliant financially and solvent urban systems Strategies Strategies Strategies Strategies Desirable Condition including approval and implementation Prepare guidelines for submission of local body proposal Prepare criteria for the selection of local bodies competitiveness of local bodies channelsinvestment based ondemand and Earmark urban national development program that “smart” towns and model village concept and market towns small incorporating centers strategic Identification, planning initiating for in investment incorporating “smart” city concepts the highway-rail link east-west along towns by strategic for plans investment develop and Identify Hulaki Road by incorporating “smart” city concepts Highway the Mid-Hill along new and along towns for Sustained implementation of the plans for new 10 towns municipalitiesno borrowingthat havecapacity. municipalities/small towns/market centers or grantProvide financing basic for infrastructure in new governments/urban areas Streamline expenditure assignment to local bodies land Devolve transaction fee registration to urban areas Optimize through transfers central unconditional grants projects Reduce conditional grants and limit it to large scale Activities/Inputs Activities/Inputs %increase of private sectorinvestment areas as IGFT % Expenditure of municipalities/urbanAssignment to of % Source Own (OSR) inRevenue total municipal revenue • Weakborrowingcapacityofsmallmunicipalities/towns taxes and • Revenuepotentialofmunicipalities/urbanareasfrom readily available • Accesstoloanandotherformofdebtfinancingnot fe es notrealizedandmobilizedfully Indicators Indicators MoUD/DUDBC local bodies MoUD, provincial and MoUD/DUDBC MoFALD/MoF MoFALD/MoF Lead/Supporting agency Lead/Supporting agency agency

commodity much as an economic asalso a social commodity as road urban S87: Emphasize involvementsector instruments including private through alternative financing investment S86. Mobilize institution financial intermediary strong through financing municipalitiesdebt to S85. of access Improve areasurban of (OSR) Revenues Source Own of mobilization Enhance S84. Strategies road asroad asocial commodity loan andprevalent Review grant emphasizingpolicy urban to areas implement them municipalities/urban support and viable projects fromPPP projects aspilot areas Select urban methods financing for guidelines internalize and Prepare capacity borrowing have that Authority/TDC to financing TDF Initiate (ADB/AIIB/WB etc) donors TDF, by GoN, policy grant loan common implement and Prepare intermediary institution. of financial tomake equity TDF strong Enhance it Maintain current expenditure up to 25% of the total revenue mediumPrepare framework local term for budget bodies urban areas in management Internalize strongdatabase system with ICT for revenue etc. registrationfees, permit fee, licensingfee), betterment tax), profession tax, entertainment tax, advertisement tax, exclusive for base payers/tax tax of coverage full ensuring place all municipalities/urban areas with monitoring system in in RIAP Plan- Improvement Revenue Action Institutionalize base) resources enhanced (for boundaries of municipal re-delineation review and periodic Conduct the basethe revenue of expand municipality to Local Guideline Administration Formulate Revenue rule mobilization body local revenue and revise Review

taxes (like Property tax/land tax, vacant land tax, vacant land tax/land tax, Property (like other

Activities/Inputs Activities/Inputs non ‐ taxes

(like service fees, service (like

value

capture

,

municipalities and MoFALD municipalities and MoFALD/LBFC MoFALD/MoUD municipalities and MoFALD/LBFC MoFALD/LBFC MoF/MoUD/TDF MoF/MoUD/TDF municipalities MoUD, MoFALD/MoF MoUD MoF/TDF, MoUD MoF, MoUD TDF/MoF, Municipalities Lead/Supporting agency Lead/Supporting

107 107 107 107 107 Urban Development Strategies and Activities 108 108 108 108 108 Urban Development Strategies and Activities 4.7UrbanGovernance 4.7UrbanGovernance Major Issues: Major Issues: • Major Issues: • multiple agenciesonurbaninfrastructures • • 4.7UrbanGovernance levels function) and developmentfunction)MoFALD (governance Major Issues: Major Issues: 4.7UrbanGovernance 4.7UrbanGovernance urban development projects strategic andlarge-scale urban infrastructure and integrated undertake to MoUD Empower S90: projects urban development and urban infrastructure policies, planning,designing and implementation of guidance to provincial and localbodies on urban to MoUD provide sustained technical support and S89: Strengthen the existence, role, and capacity of basic amenities and service delivery local bodies, local multiple provincial and sub-regional significance benefiting regulation, implementation and ofproject of includethe provincewide planning,coordination, “coordinative” nationaland regional significance beyond province; implementation of strategic large-scale projects of technical assistance, and planning and policy preparation, coordination,regulation, level S88: Stress primarily Service delivery and EffectiveEfficient Gove

Coordination betweenMoUD(urbanandregionalplanning Lack ofPhysicalDevelopmentandPlanningAct Inadequate technicalexpertiseandcapacityatmunicipal Fragmented characterofurbanspaceandmandates

and level

functions and

functions role

to include national sectoraland Desirable Condition Condition Desirable of

provincial Strategies Strategies “facilitating” and to includeprovisioning of

“implementing” rnance and Infrastructure

level

role

and

of

functions

federal

role

of

to to management, urban land development. sewerage, drainage, solid waste urban water supply, urban sanitation, transport, urban energy, urban housing, for integrated development of urban Regulation Division Work government’s Clarify role mandateand ofMoUD inthe service delivery improve infrastructure provisioningand and provincialpolicies, plans, and development plans according tonational implement physical,periodic, strategic Support local bodies toprepare and policies, strategies, and plans management plans according to national guidelines, development and growth implement provincial urban policies, coordinate, review, approve, and Support provincial agencies to prepare, guidelines administrative and legal documents and government’s the in roles Clarify Minimum Conditions andPerformance Measures (MCPM) place Coordination mechanismbetween MoUD MoFALD and in Standards ofService Provision inadequate new towns regions (valleysandcorridors) and locallevels • • • • • Inadequatelegalbasistomanageandgovernlargeurban Needtoclarifyroleandfunctionsoffederal,provincial Voluntary natureofcooperativeplanning;KVDAAct1988 Lack ofumbrellaUrbanDevelopmentAuthorityAct Inadequacy ofTown DevelopmentAct1988todealwith Activities/Inputs Indicator OPMCM/MoUD municipalities agencies, and provincial MoUD, government provincial MoUD, and Office (PPMO), Monitoring Procurement Public Lead/Supporting agency agency

programs programs and research based policies S95. Facilitate and Committee authorities Powered High form measure, transitional a As local bodies. of multiple consisting corridor region and managing urban large legal current for the basis Improve S94. development of urban areas long term abasisfor as plans town Make S93. urban development programs and projects undertake to municipalities Empower S92. sector policy,strategy and programs monitoringthe in implementation of urban joint inter-ministry and ensure coordination to MoUD at (HPCMC) Committee Monitoring and S91: Establish High Powered Coordination upscale urban infrastructure projects projects infrastructure urban upscale sharesequity of municipalities to implement with (SPV) Vehicle Purpose Special Form S98. land developmentprojects implementing and Towns New developing for monitoring and coordination basis, legislative specific to provide (TDC) Committee Development Town Strengthen S97. delivery service improve to citizens urban and state between mechanism accountability Social Devise S96.

Strategies Strategies

Review and undertake Review needed reforms implementation and its approval Ensure municipalities. for new plans prepare existing plans and Review specific more MCPM to make modify and criteria Broaden projects. development undertake to municipality the of capacity technical Build development and town planning. inphysical municipalities facilitate and Support support Strengthen the HPCMCwith necessary budgetary HPCMC Operationalize regionKathmandu of Bus Rapid Transit (BRT) in the maturedurban as such of project upscale implementation Pilot Projects Pooling Land and Town to New implement TDCs and authorities Development Resource ofPlan the selected Assessand prepare Institutional and Human ofpolicy and plan impacts to audit measure social and and project, program of performance monitor to audit public hearing making, and design, inproject public plan policy state’s in voices citizen’s Institutionalize hub knowledge tanks)(think data as centre institutes and research urban national of establishment Support development urban aspectsin various of experiencesknowledge and international and of regional sharing Facilitate organizations in collaboration with the academic and private research urban for arrangement Build institutional plans between coordination and development planning, Synchronize Act Prepare

and enact Urban Development Authority Development Urban enact and Activities/Inputs

municipalities MoFALD, MoUD, municipalities MoFALD, MoUD, OPMCM/MoUD MoPIT MoUD/MoFALD/ MoUD/DUDBC stakeholders with relevant municipalities MoUD, partners development sector, the in working NGOs universities and MoUD, stakeholders relevant with MoUD Lead/Supporting agency

109 109 109 109 109 Urban Development Strategies and Activities 110 110 110 110 110 Urban Development Strategies and Activities Major Issues: Major Issues: 4.8UrbanLandManagement 4.8UrbanLandManagement • Major Issues: 4.8UrbanLandManagement • • mechanism Major Issues: Major Issues: 4.8UrbanLandManagement 4.8UrbanLandManagement system Regularized/transparent market land urban and use land land serviced including where feasible mechanism compensation Efficient Efficient acquisition land system thresholds andstandards environmental and infrastructure land Establish useS102. with control System (LIS) Information Establish internalizeand Land S101. Market Land implement and project land governmentthe shows intent to acquire mechanism specified for period,once price freezing Establish land S100. compensation land of urban EstablishS99. judicious valuation for Acquisition Land Dominance ofinformalityinurbanlandmarket Inadequate landacquisitionandcompensation Land fragmentationandpubliclandencroachment

Strategies Strategies Desirable Condition Desirable Condition Prohibit incompatible land use land incompatible Prohibit facilities,etc. sports palace, workshopsparty and factories, schools, markets, super as such uses land particular from resulting issues environment urban address to Protection (EPR) Environmental Rules Revisit use control land for standards and threshold environment enforceinfrastructure and Prepare and parcels tosell and buy ofinformation system land based availability of Facilitate private sectors in establishing web- urban dynamics reflect to system record land and cadastral Improve measurement Improveaccuracy/reliability of land Prepare and enforce relevant law andguidelines Prepare land valuation guidelines

Environmental Protection Act(EPA) Activities/Inputs • • • and implementation Availability Availability web-based Land Systemof Information Time taken to cases acquisition complete Absence ofurbanlandusepolicy Inequitable benefitsharingfromurbandevelopment Inadequate landusecontrols(bulk,densityandusage)

Indicators Indicators

and

bodies Municipalities, local MoUD, MoSTE, MoUD, municipalities builders and developers private MoLRM, bodies, local MoLRM, local bodies MoLRM Office Administration MoLRM, District MoLRM Lead/Supporting agency

land increasepossession publicprivate of schemes—as alternative means to banking, and land swapping large scale land pooling, land S105. Prioritize implementation of meet futureland demand with adequate urban land reserve to subjected rural periodic to revision S104. Classify land as urban and land for preserving critical agricultural S103. Build incentives /disincentives Classification /Land Zoning Agriculture Strategies Strategies pooling legislation on land development including land banking, land swapping and review the current Prepare guidelines and legal basis for land adequate resources Development Fund Revolving of DUDBC—with Review and augment the existing Land revision classification, Prepare guidelines and legal basis for Use Policy regulating minimum plotsize inline with Land Prepare policy guidelines and legal basis for fragmentation, andnewdevelopment to discourage agriculture landsub-division, Formulate legal basis forregulating urban land use Activities/Inputs MoUD, MoLRM, DUDBC DUDBC MoLRM, MoUD, municipalities DUDBC, MoLRM, MoUD, MoLRM MoUD, Lead/Supporting agency agency 111 111 111 111 111 Urban Development Strategies and Activities 112 112 112 112 112 Urban Development Strategies and Activities

4.9 MASTER FRAMEWORK: URBAN DEVELOPMENT STRATEGY

Vision 2031: Balanced and Prosperous National Urban System

Time Frame Short Term Goal (5 Years) Mid-Term Goal (10 Years) Long Term Goal (15 Years)

Urban Development Goal/Impact Enhanced quality of urban life

Urban Development Outcome Improved investment and systematic planning for urban development based also on clustered city approach

Urban System Plans and programs in place with identified urban Strengthened inter-urban and urban- Strengthened regional urban system potentials with improved connectivity rural linkages with regional connectivity

Assured basic infrastructure in all Coverage of basic infrastructure in deprived Basic infrastructure in all municipalities municipalities. Increased investment in municipalities. Increased investment in higher in place. Increased investment in higher Urban Infrastructure higher order infrastructure in large order/shared infrastructure in prioritized urban order/shared infrastructure in prioritized municipalities, urban regions and regions and corridors. urban regions and corridors. corridors.

Updated UEMG, Plans, and building by-laws UEMG, Plans, and building by-laws Assured organizational/institutional Urban Environment together with GESI guidelines, DRM/resilience together with GESI guidelines, capacity and inputs for improved urban

THEMATIC AREAS THEMATIC AREAS component in place. DRM/resilience component operational. environment.

Urban Economy Local Economic Development Plans (LEDP) in LEDP reviewed and made operational in LEDP process institutionalized in all municipalities with high resource potential. prioritized municipalities. municipalities. OUTPUTS

Investment Increased national budget and investment for Increased investment in strategic Sustained investment in strategic urban infrastructure development. projects and prioritized locations. projects and prioritized locations.

Policy, plans and investment instruments in place Optimum OSR with increased access to Financing to optimize IGFT, enhance OSR and access to Self-reliant and solvent urban centers. debt and alternative financing models. financing.

Governance Defined roles and responsibilities of the ministries/agencies coupled with reforms and increased organizational capacity in place with MECHANISMS established collaborative mechanisms and efficient infrastructure delivery.

Land Management Legal basis, policies and guidelines in place for Land acquisition mechanism, LIS and Institutionalized land acquisition, LIS land acquisition, LIS and land-use regulation. land-use regulation fully operational. and land-use regulation.

Summary Summary Summary capacity; provision ofhierarchicallybalanced urbanroad and developmentofrelated institutional mechanismsand and transportationinurban as wellregionalplanning is proposed.Thestrategiesinclude integrationoflanduse Furthermore, abroaderperspective onurbantransportation dedicated andcapacitatedSWM unitinallmunicipalities. reuse, recycle)athousehold/communitylevel;andestablishing strategy withtheaimofpromotingandmandating3R(reduce, management; adoptingsanitarylandfillsitesasatransitional collection; public-privatepartnershipinwastecollectionand include focusoncommunity-ledwastesegregationand collection coverageisproposedforurbanareas.Thestrategies In termsofsolidwastemanagement,complete augmenting investmentinwastewatertreatmentsystems. facilitating privatesectorinvestmentinwatersupply, and standard; promotionofcommunitywaterstoragefacilities; internalizing regularmonitorsystemtoassurewaterquality strengthening systemtoproduceanddeliversafewater; institutionalizing waterrechargeprovisionsinpublicspaces; harvesting withinthebuildingpermitsystem; management offreshwatersources;integrationrain are proposed.Thestrategiesincludeprotectionand provisioning, watersecurity, safetyandsanitationcoverage Regarding WaterSupplyandSanitation,minimumwater capacities forinfrastructuredevelopmentandservicedelivery. a clustercityapproach;andbuildnational/localinstitutional investment forsharedinfrastructureinurbanregionsthrough services aswellhigherorderinfrastructure;orientstrategic development; promoteprivatesectorinvestmentonbasic national resourceallocationonurbaninfrastructure For theinfrastructuresector, thestrategiesseektoincrease and regional)urbansystem. provincial capitalsinthenationalandsub-national(provincial functions intheKathmanduvalley;andintegratingfuture environment, heritageandtourismfriendlyeconomic infrastructure for“smart”citiesinprioritylocations;promoting towns inrealizingtheircomparativeadvantages;creating infrastructure inkeyTarai urbancentres;facilitatingsmall provincial/regional urbancentres;improvingconnectivity standards; facilitatinghigherlevelfunctionsinmajor upgrading interandintra-provincial/regionalroadconnectivity Strategies include–strengtheningurban-rurallinkages; strengthen thenationalandsub-nationalurbansystem. For theurbansystemsector, thenationalobjectiveisto levels ofthegovernmentandprivatesector. for eachleadandsupportiveagencieswithinthedifferent strategy isbackedbyanumberofactivitiesrecommended infrastructure, environment,economyandfinance.Each achieve desirableconditionineachmajortheme– time horizonof15years.Strategieshavebeenconceivedto National urbandevelopmentstrategyisformulatedwitha Summary Summary support inthe formulation andimplementation oflocaland finance. Thestrategiesforeconomic developmentinclude cover aspectsofeconomicdevelopment, investmentand strengthening theeconomic base ofurbanareassoasto enhancing thecontributionof urbanareastotheGDPand Strategies relatedtourbaneconomyaregearedtowards to theurbanenvironment. organizations areamongtheotherstrategiesproposedrelated in newurbanareas;facilitationofcommunityandcivilsociety areas; promotionofinnovativeart,architectureandculture sites aswellmuseumstiedwithlocaleconomyinoldurban stipulated openspaceinurbanareas;preservationofheritage agriculture; maintenanceofminimumforestcoverand local communitiesandcivicbodies.Promotionofurban risk andvulnerabilityatalllevelsofgovernmentaswell enhancing awarenessandpreparednesstodealwithdisaster in landuseregulations,buildingcodesandby-laws; and climatechange;internalizationofresilienceperspective promotion ofmulti-hazardapproachtodealwithdisasters compliance withsetstandardsofpollutioninurbanareas; of landandenvironmentalpollution.Majorstrategiesinclude resilience, culture,agriculture,forestaswelltheproblems cultural environmentbringinginissuesofurbansafety, Urban environmentincorporatesnaturalaswellthesocio- materials. promotion ofpassivedesignandenergyefficientbuilding urban locations,promotionoftheoptimalusesolarenergy, development ofhydro-powerprojectsinconsiderationthe objective intheenergysector. Thestrategiesinclude adequate, reliable,efficientandgreenenergyisthemajor partnership havebeenproposed.Similarly, provisionof of servicedlandthroughpublic-private/community the economicallyweakersections,andfacilitateproduction cooperative mechanismsfortheproductionofhousing squatter settlementandencroachment,encourage environment friendlybuildings.Strategiestodiscourage housing; andpromotionofinnovative,economic economically weakersections;regularizestandardsofgroup facilitation oftheprivatesectortoprovidehousing objective oftheurbanhousingsector. Strategiesinclude Provision ofaffordable,adequateandsafehousingisthe transport infrastructureisalsoproposed. prioritized regionstheprovisionofhigh-speedinter-urban management standardsandplansforurbanareas.In transport; andpreparationofcomprehensivetransport infrastructure; promotionofsustainableurbanpublic 113 113 113 113 113 Urban Development Strategies and Activities 114 114 114 114 114 Urban Development Strategies and Activities through strongfinancialintermediaryinstitutions;and revenue ofmunicipalities;improvedaccesstodebtfinancing fiscal transfersystem;enhancedmobilizationofown-source include thedevelopmentofanoptimizedinter-governmental the objectiveofstrategiesinurbanfinance.Major Creation ofself-reliantandfinanciallysolventurbanareasis and promoteurbangrowth. administrative centresandnewtownstoprovidebasicservices prioritized investmentinstrategicsmalltowns,marketcentres, underdeveloped regionsofinnerTarai andsouthernTarai; investment inurbanareasofmidandfarwest clustered urbanregionsandcorridors;increased focused investmentforstrategicinfrastructureprojectsin improving basicinfrastructureservicesinallmunicipalities; involving allsectoralagencies;phasedinvestmentfor Strategies includecoordinatedinvestmentinurbanareas increased toatleastNRs9,300perpersonannum. national resourceallocaionforurbaninfrastructurewillbe The investmentstrategyisbasedontheassumptionthat informal urbaneconomyandalleviationofpoverty. regeneration programmesinhistoriccoreareas;mainstream provincial/regional comparativeadvantages;promoteurban and landswappingschemes. and implementationoflargescalelandpooling,banking basis forurban/rurallandclassificationwithperiodicrevisions; for preservingcriticalagriculturalland;provisionofalegal infrastructure andenvironmentthresholds;buildincentives of alandinformationsystem;usecontrolsthrough upon thegovernment’sintenttoacquireland;establishment land valuationandcompensationmechanism;pricefreezing land market.Thestrategiesincludecreationofajudicious compensation mechanism,andregularizationoftheurban development ofanefficientlandacquisitionand Urban landmanagementstrategiesareorientedtowardsthe mechanisms inurbangovernance. and programmes;institutionalizesocialaccountability regions andurbancorridors;facilitateresearchbasedpolicies areas; improvethelegalbasisformanaginglargeurban town plansasabasisforlong-termdevelopmentofurban MoUD; inter-ministry coordinationandjointmonitoring; make Strategies includestrengtheningtheroleandcapacityof infrastructure forurbanmanagementandservicedelivery. is tocreateanefficientandeffectivegovernance instruments. 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National Planning Commission (NPC) and UNDP, 2014. Nepal Human Development Report 2014. Kathmandu: National Planning Commission Nepal, United Nations Development Programme. NUDS APPROVAL PROCESS

The inception of National Urban Development Strategy (NUDS) began in 2013. Although the draft report was prepared in 2015, the urban scene of the country went through some major changes during the finalization phase of NUDS. Hence, the cabinet approval process of NUDS in 2015 was halted. To accord the necessary changes, the document has been revised and updated before its approval on 22nd January, 2017. A schematic diagram that explains the cabinet approval process of NUDS is presented below.

20th September, 2015

Promulgation of Constitution

13th August, 2015 23rd August, 2015 Proposal sent by MoUD Economic and to Cabinet for final Infrastructure Cabinet Meeting approval Committee

15th October, 2015 Back to MoUD for revision in line with changed urban and institutional setup

REVISION

15th October, 2015 to 6 th November, 2016

th NUDS document revised 7 Novem ber, 2016 13th November, 2016 Proposal sent by - Revision in line with MoUD to Cabinet Cabinet Meeting changed urban and for final approval institutional setup

12th December, 2016 Economic and Infrastructure Committee

- Presentation held

22nd January, 2017

Cabinet: Economic and Incorporation of Sub-committee formed Infrastructure comments and under the Secretary of Committee feedbacks received OPMCM and comprising from respective secretaries of MoF, - Final Approval ministries and NPC MoUD, MoPIT, MoLRM, MoFALD & NPC LIST OF CONTRIBUTORS Revision and Preparation of Final NUDS Document (2015-2017)

Steering Committee

S. No. Name Institutions/ Organisations Designation

1 Secretary Ministry of Urban Development Chairman 2 Joint Secretary National Planning Commission Member 3 Joint Secretary Ministry of Finance Member 4 Joint Secretary Ministry of Federal Affairs and Local Development Member 5 Joint Secretary Ministry of Culture Tourism and Civil Aviation Member 6 Joint Secretary Ministry of Industry Member 7 Joint Secretary Ministry of Land Reform and Management Member 8 Joint Secretary Ministry of Physical Infrastructure and Transport Member 9 Joint Secretary Ministry of Science, Technology and Environment Member 10 Joint Secretary Ministry of Forest and Soil Conservation Member 11 Joint Secretary Ministry of Energy Member 12 Joint Secretary Ministry of Information and Communications Member 13 Director General Department of Urban Development and Building Member Construction 14 Director General Department of Water Supply and Sewerage Member 15 Chairman Association of District Development Committee Member 16 Chairman Municipal Association of Nepal Member 17 Executive Director Town Development Fund Member 18 Representative Federation of Nepalese Chambers of Commerce & Industry Member (FNCCI) 19 Chairman Nepal Land & Housing Developers' Association Member 20 Chairman Regional and Urban Planner's Society of Nepal Member 21 Planner Representative Institute of Engineering ( Urban Planning Department) Member 22 Joint Secretary Physical Planning and Urban Development Division Member Secretary

Working Group

Name Institutions/Organizations Designation

1 Mr. Shambhu KC Ministry of Urban Development Joint Secretary 2 Ms. Ramita Shrestha Ministry of Urban Development Senior Divisional Engineer 3 Mr. Prabin Shrestha Ministry of Urban Development Engineer 4 Mr. Saugat Thapa Ministry of Urban Development Engineer 5 Ms. Barsha Chitrakar Ministry of Urban Development Urban Planner Consultant

Contributors for the preparation of NUDS Document

S.N. Name Professional Background/Contribution in NUDS

1 Mr. Shambhu KC Mr. KC is the Joint Secretary at Urban Development and Physical Planning Division, Ministry of Urban Development, Government of Nepal. He holds LLB from Tribhuwan University, Nepal, M.Sc. in Engineering (Civil) from People’s Friendship University, Russia and M.Sc. in Urban Management from Asian Institute of Technology, Thailand. As a coordinator of the working group for the revision of NUDS, he has led the NUDS secretariat team at the ministry and has contributed in the cabinet approval process of the document. 2 Dr. Mahendra Subba Dr. Subba is currently involved at Urban Planning and Development Center, Department of Urban Development and Building Construction as a consultant of Asian Development Bank (ADB). He is a former Joint Secretary of Ministry of Urban Development. He holds Dr.ing from Norwegian University of Science and Technology, Norway. He led the NUDS secretariat team (2013-2015) as a Joint Secretary and contributed in preparation of draft report. He has led the revision of NUDS with analysis of updated data and information. He has been involved in the process of finalization of strategies and activities. 3 Ms. Ramita Shrestha Ms. Shrestha is the Senior Divisional Engineer at Urban Development and Physical Planning Division, Ministry of Urban Development, Government of Nepal. She holds M.Sc. in Urban Ecological Planning from Norwegian University of Science and Technology, Norway. As a member of the NUDS secretariat, she has been involved in analyzing the revision and updating information and feedbacks received from various ministries. 4 Ms. Barsha Chitrakar Ms. Chitrakar is working as an Urban Planner at the Ministry of Urban Development, Government of Nepal. She holds a double Master’s Degree in International Cooperation and Urban Development from Technical University of Darmstadt, Germany and International University of Catalunya, Spain. She has been involved in the finalization of the document.

Preparation of Draft NUDS Document (2013-2015)

Steering Committee

S. No. Name Institutions/ Organisations Designation

1 Secretary Ministry of Urban Development Chairman 2 Joint Secretary National Planning Commission Member 3 Joint Secretary Ministry of Finance Member 4 Joint Secretary Ministry of Federal Affairs and Local Development Member 5 Joint Secretary Ministry of Culture Tourism and Civil Aviation Member 6 Joint Secretary Ministry of Industry Member 7 Joint Secretary Ministry of Land Reform and Management Member 8 Joint Secretary Ministry of Physical Infrastructure and Transport Member 9 Joint Secretary Ministry of Science, Technology and Environment Member 10 Joint Secretary Ministry of Forest and Soil Conservation Member 11 Joint Secretary Ministry of Energy Member 12 Joint Secretary Ministry of Information and Communications Member 13 Director General Department of Urban Development and Building Member Construction 14 Director General Department of Water Supply and Sewerage Member 15 Chairman Association of District Development Committee Member 16 Chairman Municipal Association of Nepal Member 17 Executive Director Town Development Fund Member 18 Representative Federation of Nepalese Chambers of Commerce & Industry Member (FNCCI) 19 Chairman Nepal Land & Housing Developers' Association Member 20 Chairman Regional and Urban Planner's Society of Nepal Member 21 Planner Representative Institute of Engineering ( Urban Planning Department) Member 22 Joint Secretary Physical Planning and Urban Development Division Member Secretary

Working Group

Name Institutions/ Organisations Designation

1 Girija Prasad Gorkhali Ministry of Urban Development Joint Secretary 2 Postha Raj Dhungana Ministry of Urban Development Under Secretary 3 Krishna Murari Neupane Ministry of Urban Development Under Secretary 4 Tika Ram Pandey Ministry of Urban Development Under Secretary 5 Rajendra Nepal Ministry of Urban Development Under Secretary Senior Divisional 6 Kabindra Bikram Karki Ministry of Urban Development Engineer 7 Suresh Chandra Acharya Ministry of Urban Development Under Secretary 8 Mani Ram Singh Mahat Town Development Fund Director Residential Workshop Participants, June 13-15th 2014 Name Institutions/ Organisations Designation

1 Kishore Thapa Ministry of Urban Development Secretary Ministry of Federal Affairs and 2 Gopi K. Khanal Joint Secretary Local Development 3 Suresh P. Acharya Ministry of Urban Development Joint Secretary 4 Dr. Mahendra Subba Ministry of Urban Development Joint Secretary 5 Dr. Pitamber Sharma Team Leader

6 Girija P. Gorkhali Ministry of Urban Development Joint Secretary 7 Postha Raj Dhungana Ministry of Urban Development Under Secretary 8 Mani Ram Singh Mahat Town Development Fund Director 9 Suresh Chandra Acharya Ministry of Urban Development Under Secretary 10 Padma K. Mainalee Ministry of Urban Development Senior Divisional Engineer Department of Urban Development 11 Ravi Shah Senior Divisional Engineer and Building Construction 12 Monika Maharjan Ministry of Urban Development Engineer 13 Saroj Basnet NUDS Consultant Consultant - Urban Infrastructure 14 Dr. Kiran P. Bhatta NUDS Consultant Consultant - Urban Economy 15 Yogesh P. Shrestha NUDS Consultant Consultant - Urban System 16 Daya Ram Pandey Ministry of Urban Development Engineer 17 Pragya Pradhan Ministry of Urban Development NUDS Secretariat – Urban planner 18 Arun Poudyal Ministry of Urban Development NUDS Secretariat – GIS Expert 19 Kesha Shrestha Ministry of Urban Development NUDS Secretariat – Infrastructure planner Thematic Workshop’s Presenters Name Institutions/ Organisations Topic Themes 1 Padma Sundar Joshi UN Habitat Understanding Urban Poverty in Nepal: Economy Issues and Challenges 2 Hemanta Dawadi Federation of Nepalese Chambers of Impediments for the Growth of Secondary Sectors in Urban Areas Commerce & Industry (FNCCI) 3 Kiran Prasad Bhatta NUDS Consultant Comparative Analysis of Productive Potential (Industrial) of Urban Areas

4 Sarita Maskey Department of Urban Development Planning for Resilient Cities: Challenges and Possibilities and Building Construction

5 Dr. Bharat Sharma Expert Overture on conservation of Urban Natural Environment Environment 6 Sudha Shrestha UN Habitat Inclusive Cities: Social Dimension; Issues, Challenges and Prospects Kathmandu Valley development 7 Dr. BhaiKaji Tiwari Urban Regeneration: Problem and Authority Prospects

8 Rajendra Giri Expert Review on Urban Policy, Legislations and Institutions 9 Kalanidhi Devkota MUnicipal Association of Nepal ;+3+ Lo ;+/+ rgfdf :jfoQ /fhwfgL ;x/ Governance tyfgu/;/sf/sf] ] ;+a+ }w} fgLsAoj:yf 10 BalKrishan Niraula Ministry of Urban Development Assessment of Legal Framework for Urban Development Department of Water Supply and 11 Keshav Bista Over view of urban water supply Sewerage and sanitation

12 Surya Man Shakya Ex Director SWMTSC Solid Waste Management in Urban Areas: Challenges and Possibilities Urban Mobility & Urban Infrastructure 13 Bhushan Tuladhar Un Habitat Development :Challenges & Opportunities Sundar Shyam 14 Dept. of Electricity Development Urban Energy : Implications on Shrestha Urban Development and Vice Versa Department of Urban Development Urban Infrastructure Financing & 15 Mani Ram Gelal Role of External Agencies and Building Construction (Challenges & Opportunities) Private Sector Financing in Urban 16 Radhesh Pant Investment Board Infrastructure: Problems and Possibilities Investment Ministry of Federal Affairs and Local 17 Raghu Ram Bista Urban Financing System in Nepal Development Mani Ram Singh Perspective on Urban Financing: 18 Town Development Fund Augmenting Urban Resource Base Mahat (Challenges and Prospects) Land Acquisition for the Urban 19 Laxman P. Mainali Nepal Law Commission Development: Problems and Solutions 20 Min Man Shrestha Nepal Land and Housing Company Private Land Market Urban Land Use Planning in Nepal: Land 21 Umesh Malla Urban and Regional Planner Current Status, Issues and Prospects Girija Prasad 22 Ministry of Urban Development Government Sponsored land and Gorkhali Housing Development

23 Dr. Surya Acharya Expert Linkages 24 Saroj Basnet NUDS Consultant Towards the preparation of Urban Infrastructure Strategy 25 Pushkar Pradhan Expert Impediments to the Development of a Balanced Urban System 26 Dr Yagya B karki Expert Population Dynamics and Urban System Growth in Nepal 27 Yogesh Shrestha NUDS Consultant Nepal Urban Development Strategy: Intended Urban System

Contributors for the preparation of Draft NUDS Document

S. N. Name Professional Background/Contribution in NUDS

Mr Sharma is currently the Chairman of Resources Himalaya Foundation. He holds 1 Dr. Pitamber Sharma PhD from Cornell University, USA. As a team leader, he has guided the process of formulation of NUDS and in shaping its outputs.

Mr Subba is the Joint Secretary at Ministry of Urban Development, Government of 2 Dr. Mahendra Subba Nepal. He holds Dr.ing. from Norwegian University of Science and Technology, Norway. As a coordinator of the working group, he has led the NUDS secretariat team at the ministry and has contributed as a writer.

Mr Basnet is the Managing Director at WELINK Consultants (P) Ltd. He holds MSc. 3 Saroj Basnet Urban Planning from Institute of Engineering, Nepal. He has contributed as Expert Consultant: Infrastructure in the preparation of NUDS. Mr Shrestha is the Director at NEST (P) Ltd. He holds MSc. Urban Planning from 4 Yogesh Purna Shrestha Institute of Engineering, Nepal. He has contributed as Expert Consultant: System in the preparation of NUDS. Dr. Kiran Prasad 5 Mr Bhatta is a free-lance consultant and holds his PhD from Tottori University, Japan. Bhatta He has contributed as Expert Consultant: Economy in the preparation of NUDS.

Mr Dhamala is the director at Eco-Code Nepal. He holds MSc. Urban Planning from 6 Kumar Dhamala Institute of Engineering, Nepal. He has contributed as Infrastructure Planner in the preparation of NUDS. Mr Gorkhali is the Joint Secretary at Ministry of Urban Development, Government of 7 Girija Prasad Gorkhali Nepal. He holds MSc. In Engineering (Infrastructure Planning) from University of Stuttgart, Germany. As a member of the working group, he has contributed in formulation and calculation of Urban Infrastructure Condition Index (UICI).

Mani Ram Singh Mr Mahat is the Director at Town Development Fund, Nepal. He has Masters in 8 Mahat Geography from , Nepal. As a member of the working group, he has contributed in writing the section on Urban Finance in Chapter 2 and 4. Mr Mainalee is Senior Divisional Engineer at Ministry of Urban Development, Padma Kumar Government of Nepal. He holds M. Arch in Human Settlement from Katholieke 9 Mainalee Universiteit Leuven, Belgium.As a member of the NUDS secretariat; he has been involved in conceptualization of NUDS, coordinating and conducting thematic workshops and finalization of report.

10 Pragya Pradhan Ms. Pradhan is working as Planner consultant at the Ministry of Urban Development, Government of Nepal. She holds Master's Degree in Urban and Regional Planning from

University of Hawaii, USA.As a member of NUDS secretariat, she has been actively involved in the process of conceptualization and formulation of NUDS. 11 Arun Poudyal Mr. Poudyal is working as the GIS specialist consultant at the Ministry of Urban Development, Government of Nepal. He holds MSc. in Geo-informatics from University of Twente (ITC),The Netherlands. He has been involved in design and development of spatial database, GIS analysis and mapping of different thematic sectors of NUDS. 12 Kesha Shrestha Ms. Shrestha is working as the Data Manager at the Ministry of Urban Development, Government of Nepal. She holds Master's in infrastructure Planning from University of Stuttgart, Germany. She has been involved in collection, management and analysis of Statistical and qualitative information in different thematic sectors of NUDS 13 Barsha Chitrakar Ms. Chitrakar is working as a Planner consultant at the Ministry of Urban Development, Government of Nepal. She holds double Master's Degree in International Cooperation and Urban Development from Technical University of Darmstadt, Germany and International Cooperation in Sustainable Emergency Architecture from International University of Catalunya, Spain. She has been involved in analysis of statistical and qualitative information of NUDS. 14 Samjhana Shah Ms. Shah is working as Publication Expert at the Ministry of Urban Development, Government of Nepal. She has contributed in designing and publishing of the final document.

Ministry of Urban Development Brief Introduction Ministry of Urban Development was established on May 18, 2012 by the Government of Nepal. The ministry deals with formulation, implementation, monitoring and evaluation of policies, plans and programs related to housing, building construction and urban development. The ministry's vision is to have planned, clean and beautiful cities with adequate infrastructure and amenities. Its mission includes developing clean and beautiful cities, affordable housing and safe buildings.