Concept Paper on Good Water Governance and Sustainability of Water Supply and Sanitation Service of Kathmandu Valley

-Dr. Madhav Narayan Shrestha WASH Expert 1. Background Access to safe water supply and sanitation services improves public health conditions and is key to achieving the broader poverty reduction. 2.6 millions people around the globe are without access to adequate sanitation facilities and the more than two million children die from diarrhoea each year. The cross-cutting impact due to lack of access to sanitation is indisputable. A child dies every 15 seconds from water borne disease, mother dies in childbirth, menstruating girls skip school because of poor facilities. Annual demand of water for domestic, industrial and commercial use is growing at the rate of 6% to 9% in major towns and cities. The proportional of urban population to the total population increased in Nepal, from 4% in 1971 to 13.9% in 2001 (CBS 2003). If this trend continues, the urban population is expected to reach 26.7% to the total population in 2021.It has, therefore been felt that there is a strong need to develop a policy to specifically address the water supply and sanitation related challenges confronted in urban area..Government of Nepal has developed a Twenty-year Vision (1997-2017) of 100 % drinking water supply and sanitation coverage by 2017. Nepal has pledged its commitment to the Millennium Development Goals. Long time commitments and step-by-step improvements will give successful water management services. It is necessary to mention policies developed by GON for water supply and sanitation sector. In Ninth and Tenth Five Year Plan (1997), HMGN has set the policy of involvement of local governments and private sectors in development of water supply and sanitation, and invited expression of interest in 1999 for lease contract of Kathmandu Valley water supply services to private sector. The government has approved concept of formation of Kathmandu Valley Water supply Authority in 2000, and set strategy policy for operation of water supply services by private sector. The government has invited expression of interest second time again in 2001, for lease contract of Kathmandu Valley Water supply services to private sector. Government has approved policy of management contract of Kathmandu Valley water supply and sewerage operation to the private operator. In 2003, ADB has agreed for institutional reform and management contract of operation and agreement of 15 millions US $ has been made between ADB and GON. The government has formed Kathmandu Upatyaka Khanepani Limited (KUKL) as water utility operator under operating license issued by Kathmandu Valley Water Supply Management Board (KVWSMB) and asset lease agreement between them. Following the reform process the government has invited expression of interest for management contract and approved format of Request for Proposal (RFP) in 2004. Due to insurgency problem and political instability, the dead line for submission of REP was extended up to four times and lastly received only one REP from STWI on 5th December 2005. After evaluation, ADB has given no objection on Technical Evaluation Report submitted by the Ministry of Physical Planning and Works on August, 2006. The government approved for contract agreement with STWI. After change in


political condition, the Ministry did not issue letter of award to STWI and the Ministry submitted proposal of reconsideration for management contract on May 2007. 2. Institutional Reforms Nepal Water Supply Corporation (NWSC) is a fully government owned cooperation responsible for planning, and investing, operation and managing the water utilities, regulation and monitoring for the valley in addition to other municipalities of the country. The NWSC has been facing the challenges over the years of acute shortage of water supply and sanitation in the Kathmandu Valley. Being capital of the country, and centre of all social-economic and political activities of the nation, the government is serious to alleviate the shortage. Water has become a serious problem for the people of the valley both in terms of quantity and quality. The Centre Bureau of Statistics study (2005) carried out in Kathmandu shows that 59% of the surveyed households do not have adequate water supply from the piped water line and on average, water is available only four days a week. Similarly in the case of wastewater treatment system in Kathmandu valley, most of the wastewater plants and equipment are either out of operation or are only partially operational. Big demand of good services in water and sanitation is found everywhere in the valley. Demand driven management seems attainable than supply driven. It is estimated that at present the supply satisfying the demand in the valley supplied area is less than 80 percent in wet season and less than 40 percent in dry season. Substantial improvement in the valley water supply both in terms of water quantity and quality is extremely urgent. To overcome the deplorable state of water supply and sanitation situation in the valley, GON has adopted two pronged strategies of infrastructural development and institutional reform in the water sector of the valley. The infrastructure improvement aimed to augment the supply both in terms of quantity and quality includes diversion of 170 MLD water from Melamchi River through 27 Km tunnel, provision of treatment faculties, strengthening of distribution network by reduction in leakage and provision of equitable water distribution and expanding the distribution network laying new primary and secondary pipelines. The institutional reform aimed to establish a mechanism for representation of municipalities & the public at a policy level, to protect the operating company from political interference in management and operational decisions, to implement an efficient set of tariffs based on the principle of cost recovery, to run operating company in a professional and commercial way, to introduce PSP modality to manage service delivery of operating company, and to develop the capacity to implement improvement programs and Maximize benefits of Melamchi Water Supply Project. The proposed institutional framework for the provision of water supply and sanitation facilities in the Kathmandu Valley has objectives: (a) to make it independent of NWSC and (b) to separate three basic functions namely ownership (planning and investment), operation and regulation (fixing tariff) as shown in Fig. 1.Thus three entities are formed for Kathmandu Valley water supply and sanitation sector namely Kathmandu Valley Water Supply Management Board (KVWSMB), Kathmandu Upatyaka Khanepani Limited (KUKL) and Water Supply Tariff Fixation Commission (WSTFC). These are briefly described as follows. Kathmandu Valley Water Supply Management Board (KVWSMB): The Board has been established under Water Supply Management Board Act, 2063.The Board is a public body responsible for policies and ownership of water service infrastructure. The Board will take over from NWSC the ownership of assets of water
i) 2

supply facilities inside the valley. The Board will be overall responsible for planning the service improvement and investing funds for them, and has financial responsibility for raising funds to finance infrastructure development and service associated debt. It will not be involved in the operation of the services, implementation of the works and fixation of water tariff. The Board is represented by 11 members, from GON, local Government (Kathmandu Metropolis, Lalitpur Sub-Metropolis, Bhaktapur Municipality, Madhyepur Thimi Municipality, Kirtipur Municipality), Federation of Nepal Chamber of Commerce and Industries (FNCCI), one representative from three District Development Committee (DDC) within valley, representative of Consumer Association operating in the valley, representative nominated of Water/Sanitation service related NGOs and expert nominated from Water Supply & Sanitation field. Assets of the Board transferred from NWSC will be given to KUKL on lease accordance with lease agreement between them. The Board will issues license for the operation of water and sanitation services to KUKL and receive license fee, lease payments, government transfers and donor funding.




NWSC- 1 Management & Operation of water and sanitation services outside Kathmandu Valley

NWSC- 2 Management & Operation of water and sanitation services inside Kathmandu



Assets. Liabilities and Employees

Fig1. Institutional Reform on Water Supply and Sanitation Sector of Kathmandu valley Kathmandu Uptyaka Khanepani Limited (KUKL): This is a public company registered under the Company Act 2063, with objective to undertake and management of the water supply and sanitation system of the valley operated by NWSC and provides quantitative, qualitative and reliable service to the consumer on their full satisfaction at affordable price. KUKL will be responsible for operation and management of water and wastewater services in the Valley. It will operate the water supply and sanitation services under a license and lease agreement with the KVWSMB. KUKL will be responsible for maintenance of all assets received on lease from KVWSMB. The company will issue preference share to KVWSMB against the assets transferred to it and not more than 10% dividend to shareholders if company is able to make profit. The Limited will pay an annual license fee to the Board. The share holders of the company owning with respective initial common shares are GON (30%), Municipalities in the valley (50%) [Kathmandu Metropolis- 30%, Lalitpur Sub-Metropolis- 10%, Bhaktapur Kirtipur and
ii) 3

Regulatory actions and safe guarding Consumers

Employees transfer

License and lease asset agreement


Madhyepur Thimi – 10%], private sector organization (15%) [ FNCCI- 3%, Laitpur Chamber of Commerce - 1.5%, Nepal Chamber of Commerce- 9%, Bhaktapur Chamber of Commerce -1.5%], and employee trust to be paid by the government (5%). The KUKL will be managed and supervised by a seven Board of directors. Four directors are nominated by shareholders (one each from GON, Kathmandu Metropolis, Lalitpur SubMetropolis and private sector) and three independently appointed. Two of the three independent Board of directors will be selected on competitive basis and one will be nominated by ADB until its loan is paid back. The company will also take over the responsibility of infrastructures built by Melamchi Water Supply Project. The service will be continued to be operated by the NWSC deputed staff initially and staffs unwilling to work with KUKL will be returned back to NWSC or given opportunity of voluntary retirement with additional benefits. The KUKL will be headed initially by three international water utilities experts (General Management Advisor, Operational and Technical Management Advisor, and Financial Management Advisor). The international experts will be assigned three key components- providing start-up support for KUKL (operating structure, business processes, financial management and administration), managing the ongoing operations (including prudent use of pilot investment funds and developing and implementing a capacity development strategy that addresses ownership, knowledge transfer modalities and exit or hand-over plan and indicators. Water Supply Tariff Fixation Commission (WSTFC): A Water Tariff Commission Act has been passed by the parliament and GON has formulated with three members Commission. All the commission members, including the Chief Commissioner are appointed on competitive basis. The function of the Commission is to determine water tariff based on commercial principles and set scientific criteria. It is a independent regulator of tariffs for water supply and wastewater services throughout Nepal. KUKL will be required to submit proposals for tariff fixation to the Commission together with its documentary evidence of cost and expenditure and the Commission will scrutinize the proposal, make necessary amendments and approve after a thorough public hearing. It will mmonitor service provided by Service provider to maintain quality It will aassist in the resolution of customer complaints by providing an mediator service to which customers can appeal if the procedures of service provider do not yield a satisfactory outcome. The jurisdiction of the Commission is presently for Kathmandu Valley and it will be expanded later to other municipalities. WSTFC will obtain and publish information relating to services provided by the service provider. Fund is available from regulatory fess from service providers and government transfer if needed.

3. Vision for good water governance and Sustainability of Water Supply and Sanitation Service of Kathmandu Valley: It is necessary to analyze functions, duties and powers of the Board for good water governance and sustainability of water supply and sanitation services. The KVWSMB cause to be operated the services through Service Provider by providing a license to the Service Provider. Service Provider here is KUKL. The functions, duties and powers of the KVWSMB are as follows; (a) To acquire, construct, extend, improve and rehabilitate or cause to be acquired, constructed, extended, improved and rehabilitated the Service System,

(b) (c) (d)



(g) (h)



(k) (l)

To frame the policy relating to use of Service and to execute or cause to be executed such a policy, and to prepare short term and long term plan relating to Service System and execute or cause to execute such a plan, To prevent the misuse of drinking water and protect drinking water from being polluted, and to conduct study, research and survey relating to source of drinking water, distribution of the same and sanitation, To identify the financial sources required for extension and development of Service and receive the same, and to ascertain the financing required for the operation of Service and prepare a plan thereof and to arrange or cause to make arrangement for financial resource, To arrange to get the Tariff rate for provision of Service be fixed pursuant to the laws in force, and to collect or cause to be collected the Tariffs for the Service to be provided to the consumers, and recommend service charge or tariff if approved charge is to be restructured To make or cause to be made necessary arrangement of monitoring for the effective and qualitative service provided by Service provider as per set performance standard or not. If any grievance is occurred to the consumers while providing Service by the Service Provider, to conduct hearing there for and to give appropriate remedy. To issue a license to the Service Provider for operating the Service or cause to be provided the Service by entering into an Agreement. In order to avail the Service within its Geographical Area by diverting natural water from a source out of its Geographical Area, to enter into an agreement with any person for receiving such water. Provided that while diverting water to its Geographical Area from the sources out of its Geographical Area, it may provide reasonable amount to the local body or users of that area against the water so diverted If it requires to acquire the Service System operated by any Municipality or Service Provider at the time of commencement of this Act, it shall undertake such Service System under its ownership by paying reasonable compensation and shall operate and mange or cause to be operated and managed. It is duty of the Board to monitor and supervise the operation of Service System operated by any governmental agency according to Act and operating condition at the time of transfer of such operating system to the Board. Except as otherwise provided for in other laws in force, to regulate, to get approval of necessary strategy plan for groundwater use from GON and control or prohibit the abstraction and use of groundwater within its Geographical Area as prescribed and to issue a licence for abstraction or use of such water to consumer or Service Provider for use and abstract the groundwater within its geographical area assuring of not occurring negative environmental impact. To prepare annual program and budget of the Board, and to approve human resource structure To perform all necessary work to fulfill the aim of the Board, and carry out such other function as required for operation of Service as prescribed.

To fulfill above mentioned functions and duties efficiently for achieving good water governance and sustainability in water supply and sanitation service, the Board must have clear vision on following subjects.


I) Water Resource Management and Monitoring: There are various issues such as watershed protection, water resource monitoring, water balance, unaccounted for water, water conservation and institutional support that have the largest impact on water resource management and monitoring The should develop strategies focusing these issues. a) Watershed Protection: Surface water resources used in the valley are from Shivpuri watershed management Project area, Nallu Khola, Basuki Mul, Chhhare khola, and Mahadev Khola. Shivpuri, Chhahare Khola and Mahadev Khola watershed lies within watershed management area or forest reserves and are thus protected. But others are not within watershed management area or forest reserves. Therefore the Board should make mechanism to control and regulate riverhead forests of the surface sources as well as protection measure of the sources. b) Land Use Planning: Surface water resources in the valley appear to have been exploited to the maximum. As a result, the groundwater resources continue to be exploited to meet the steadily increasing water demand. Aquifers used for supplying water are generally located within densely populated area. NorthEastern zone of the valley is most favorable area for recharge. The rechargeable zone is nowadays highly urbanized and having concrete jungle. Groundwater levels appear to be receding at a rapid rate. It is time to develop Land use planning at least for sustainable water resources. c) Hydrological and Meteorological Data Centre: Hydrological and Meteorological information system of the valley is not satisfactory. It is essential to place gauging stations in the streams in urban area so that continuous stream flow data could be collected and used to estimate availability of water during four seasons and it would be the basis for wastewater assimilation studies that are required to determine wastewater discharge criteria. Meteorological stations within the valley help vital role to predict stream flow and help for flood management. Management of the water resources and institutional reforms to control use of the water resources are desperately needed to stop the deterioration of water quality in the valley. d) Water Balance Model and Water Conservation Program: According to the report Water Balance for the Bagmati River Basin in the Kathmandu Valley (HYM, 1993), there was an average negative water balance of 63000 cubic meters per day in the Kathmandu Valley. Groundwater resources are over exploiting (more than safe yield). And recharge quantity of runoff is reducing rapidly. After Melamchi Project completion, this will not be major problem. But the Board has to tackle water supply problem for almost five to six years. The Board must work on Water Balance Model of the Valley and should develop decision making tools based on it. A comprehensive study of surface water influences on shallow aquifers and complete water balance with the help of surface and groundwater resource data of the valley has to be done. Basically it is difficult to ask people to conserve water when they have so little to begin with. All services must have metered and customer will pay for the water used. Then policy of water


conservation will be effective. Scientific increased in water tariff is an effective means of getting customers to conserve water. e) Assessment of O&M Practice including UFW and levels of service: It has been observed that operation and maintenance of the system are not carried out an acceptable manner due to shortage of fund and technical advancement. It certainly gives more UFW and economical hardship. The greatest problem is the inability to provide water continuously at as adequate pressure. And another major problem is failed to supply a safe water supply. The Board has to monitor O&M practice and develop mechanism to assess the level of service. f) Assessment of Potential for Surface Water Storage: A water resource that has not been fully used is the high volume of water in Khola and rivers in the valley during wet season. This could be used far more extensively. Various storage reservoir schemes have been proposed in Final Report of JICA (1990). It has been mentioned that total maximum yield estimated from Balkhu Khola, Sundarijal (Bagmati River), Kodku Khola, Lele Khola and Nakhu Khola is 53 million cubic meter. The Board should be more serious about surface storage program. II) Groundwater Management: As mentioned earlier in portion of duties and power, the Board has to regulate, control of the use of groundwater resources minimizing negative environmental impacts. It is immediate need to develop sound management practices for the use and regulation of the groundwater resources within the valley. Despite repeated recommendations from groundwater experts, there is no institutional responsibility for groundwater monitoring in the valley. Following steps are proposed for groundwater management. a) Perform groundwater registration survey: Groundwater is obtained in the valley from dug wells, hand pump wells, rower pump wells, shallow and deep tube wells, springs and spouts. There were 363 inventoried shallow and deep wells including public supply, hotel, industrial, government/institutional, and embassy wells. (Metcalf& Eddy, Inc 2000). This inventory must be updated. The Board, thus, initiate on Inventory program of Well Registration Survey (WRS). b) Perform groundwater monitoring: Groundwater abstraction is being done from shallow and deep aquifer in the valley. Static water levels in shallow aquifer are shallowest in Bansbari and Manohara well fields of the Northern Groundwater District (NGED). It is found that static water levels are almost shallowest along river channel of Central Groundwater District (CGWD). It shows that shallow aquifer is not much used, where as Static water levels in deep aquifer wells are deepest in Basnbari, Manohara and Bhaktpur well fields of the NGWD, and Lagankhel, Thimi area of CGWD. Dynamic water levels in shallow aquifer wells are deepest in NGWD and CGWD. It shows low transmissivity. Dynamic water in deep aquifer wells are found deepest in NGWD and CGWD also, but shallow in Southern Groundwater District (SGWD). It reflects that deep aquifer in NGWD and CGWD is heavily exploited, while not much use in SGWD. Over the last 20 years, static water levels have declined by 15 to 35 meters and dynamic water levels have declined by 5 to 69 meters in deep wells. Therefore, groundwater


monitoring program (GWMP) must be formulated based on historical water level data c) Design of Optimum Well Spacing Pattern: It has been found that high percentages of wells are failed due to close spacing between wells, poor design and installation, and unplanned pumping schedule. The Board should formulate optimum well spacing pattern and development program (OWSDP) with facility of digital spatial mapping by GPS and GIS. The Board should introduce advanced drilling techniques for technically sound and cost effectiveness. d) Develop Conjunctive Use: The NWSC, major groundwater users of the valley, is using about 62 % of total groundwater abstraction, more during dry season and less in wet season. Surface water and groundwater are used conjunctively for water supply, but there is no designed optimal conjunctive pattern. The Board should consider designing Optimal Conjunctive Use Program (OCUP). e) Develop Groundwater Well Licensing and Tariff System: Legislation is required to regulate the exploitation of the groundwater resources in the valley as well as to put measures in place to protect and improve the quality of such resources. Existing wells that use motor-driven pumps should be subject to registration and licensing. New wells should be licensed before construction. License should consider of scientific tariff structure depening upon location, depth of water to be abstracted, quantity of water to be abstracted and period of abstraction. Permissible quantity of abstraction should be regulated depending upon place and period of abstraction. Thus the Board should develop Groundwater well Licensing and Tariff system (GWLTS) considering all important parameters affecting groundwater management. III) Wastewater Management Program: According to 2006 UNDP Human Development Report, one dollar invested in sanitation will result in an eight dollar return. It is indeed need to determine the shortcoming in the existing wastewater facilities planning, development and operations effort. There are several key issues with sanitation development in the valley, such as continuous growth of population, polluted water resource, contamination, and health risks. The government has failed to adopt and implement a wastewater master plan for the valley. This has lead to the extremely polluted condition of the rivers and Kholas in the valley. There are fundamental reasons of failure to act decisively on wastewater issues such as, lack of funds to undertake large-scale construction program for collection and treatment of total wastewater, overlapping of responsibilities among government agencies, and government agencies with conflicting roles. In order to improve situation, the Board should set following actions. i) Establish single authorized unit or agency to handle wastewater situation within valley ii) Establish priorities for wastewater master plan and prepare updated master plan. There are many studies on wastewater system. Main sewerage master plan is Greater Kathmandu Drainage Master plan study (Snowy Mountain Engg. Corporation, 1990).


iii) Establish effective wastewater management system which considers tariff structure, funding, qualified human resources, private sector participation, and ‘Polluter Pays’ policy. iv) Establish regulations/standards with enforcement plan v) Develop Improvement Plan: Septic tank registration and cleaning standards, Industrial users program, river side latrines for urban poor with treatment facilities IV) Water Rights: Water right is a prerequisite for effective water governance. Water rights are legal rights to abstract and /or use water in natural sources (e.g. river) not the putative ‘right to water’. Water resources are finite. For known water resources, key tasks of water governance must include the allocation/re-allocation of water among different users sectors and also among different users. Many countries faced with increased demand for increasing scarce water resources have undertaken reforms to introduce ‘modern water rights’. Modern water rights specified the quantity that may be abstracted and/or used (by volume or share of available resources). Rights are established on the basis of a legal instrument (e.g. license permit, consent). Unless water consumption is reduced out of finite resources, only thing is rationally allocate what water is available, and creating clear and secure legal entitlements to use the water. Water Resource Act 1992 empowers the state as owner of all water, and has the right to regulate who may and may not use water resources, how, where and in which order of priority. It can also expropriate water resources used by public without paying compensation. The first preference is given to drinking water and domestic use, followed by irrigation, agricultural uses and other uses. Citizens have rights to use and manage water but not to own water resources, and their rights can be terminated at will by the state at any time. There are untapped foothill water sources within the valley and government is still unsuccessful to use those sources due to weak implementation of the water rights. Thus, the Board must develop clear vision and implementation policy regarding water rights or develop public awareness program on these issues. V) Rainwater Harvesting System: Rainwater harvesting system is potentially very effective during wet season. The system can be used as supplementary source. At least the rainwater harvesting system can be used for large roof area such as industrial or commercial buildings, business complex etc. The Board should develop vision to utilize the Rainwater Harvesting System as supplementary source for large roofed area. VI) Leak Management: Recent studies estimate UFW to be from 30 to 40% of the production. Conditions observed in the distribution system indicate that many customers bypass or remove water meters to increase flow to their homes, thus billed water is not accurately measured. The Board should include leak reduction as performance indicator to Service Provider (KUKL). VII) Recycling of Baghmati River Water: There is substantial volume of water in Bagmati River downstream of Chovar through out the year. The quality of water however is very poor with more organic and inorganic pollutants. As


the river flows on, the water quality improves naturally. Few kilometers downstream from Chovar, the flow in the river is quite substantial and treatable for water supply. However as moves downstream, the pumping head to deliver this water to the valley will increase. A feasibility of this option should be carried out by the Board or KUKL. VIII) Exploration of Deeper tubewell: Many study reports on hydro-geological condition of the Kathmandu Valley interpret that there are plenty of deep groundwater in deep core zone of Kathmandu Valley. It is suggested for feasibility study on the exploration of deep groundwater below 1000m. Nowadays it is possible to explore deep groundwater below 1000m with advanced drilling technique (being used in China, Russia, etc). This could be new area of possibility for groundwater resources. IX) Demand Driven Management Approach: Demand driven management seems attainable than supply driven management. Water demand management is alternate tool to cope with scarcity of water supply. It gives methods of optimum use of even single drop of water with full satisfaction to the customers. This approach will significantly reduce quantity of demand. The Board should develop this approach for sustainability of service. X) Development and Management Strategy Plans: The Board should develop following development and Management Strategy plans. a) Strategic Business, Asset Management and Capital Investment Plan: The Board may need to develop new infrastructure works or may arrange necessary fund to KUKL for infrastructure development for efficient operation of water supply and sanitation service, which will add to asset value as well as in lease fee. KUKL may acquire purchase or construct facilities, plants, machinery and other assets for the purpose of providing the service and the Board owns these assets. The Board has to give approval after technical and economical viability analysis of the proposal submitted by KUKL for new infrastructure development. Because the Board is responsible for arranging funds for such new infrastructure development. The Board may give certain development fee to KUKL. Hence, the Board has to develop Strategic Business, Asset Management and Capital Investment Plan critically. b) Consumer Service and Pro-poor Service Management Plan: As the recently released UNDP Human Development Report stresses that poor people lack access to safe water and basic sanitation not because there is not enough water, but because the institutions set up to manage those issues are simply not meeting that challenge. For the poor people, KUKL will establish a Low Income Consumer Support Unit (LICSU) with objective of improving the service provided to low income households. KUKL will submit proposal on consumer service and propoor service management plan. The Board, then, has to review and give approval. So the Board should develop this plan for betterment of consumer and urban poor. c) Management of Information System (MIS): The Board should develop consumer oriented MIS including on-line information of facilities and service within Valley. GIS should be incorporated in this system. All information about


water supply and sanitation service should be placed in MIS and should be easy access to each and every customer. d) Service Outsourcing Plan: The Board should have Service Outsourcing Plan and implementation of the plan might be done by KUKL. For example, meter reading work, service leak repair work, billing and water quality testing work etc. could be outsourcing to the private sector. e) Research and Development Plan: The Board should have Research and Development plan for delivering effective and quality service in water supply and sanitation services. f) Documentation on Service Standard: The Board should develop service standard including operation and maintenance standard, quality operating standard and water quality standard. These standards means a standard of performance that should be develop in accordance with internationally accepted techniques in the water industry including standards and indicators of the International Water Association. The standards should protect the interests of the Board and in accordance with the applicable law. The service standard should mention assurance of availability of water supply and, assurance of water quality in distribution system and treatment facility before and after Melamchi Water Supply Project commenced. Parameters considered of water quality standard for network must minimize chemical and bacteriological risk. The standard chart must consider chemical water quality standard and bacteriological water quality standards. The quality standard must include residual chlorine, ammonia, E-coli, and total coliform bacteria, The Board should develop wastewater service standards including operation of wastewater treatment plants. 4. Vision on Post Melamchi Water Resource Management: After Melamchi Project commenced, mathematical and physically based models are to be developed decision support system with all possible constraints for optimal use of water resources of the valley. The Board will need to develop Water Resource Management Decision Support System (WRMDSS). Method of developing of WRMDSS is shown in Fig.2. Geographical Information System (GIS) should act as a platform for developing various models. Input and outputs of the models are shortly discussed below.

Water Balance Model (WBM): WBM will be formulated considering all hydrological processes occurring in the Kathmandu Valley basin. These models will be of daily, monthly, seasonally and yearly balanced models so that three strategies i.e. short term, medium term and long term can be formulated and implemented. Water Use Model (WUM): Water Use Model will consider availability of total surface water and safe yield of groundwater. The model will also consider the potential water use for different strategies. Total water demand considering domestic, industrial, irrigation and other recreation activities, will be taken into consider and surplus or deficiently will be calculated. Net water available should be estimated considering total water loss. WUM will be associated with Net evapotranspiration model and its output will be used in accounting water loss. Inter-basin movement of surface water should be considered in the model.



Surplus Water Use Model (SWUM): The surplus water abstracted from WUM will be considered in this model. Possibility of exploring the water use will be focused for valley navigation, recreation and tourism related to water use, commercial fishing, natural aquatic habitat and wetland preservation. Allocation of water for different uses will be optimized. The priority for water use will be as on drinking water supply, irrigation and hydropower development and then water based cultural, recreation and tourism opportunities. Water Pricing and Cost Recovery Model (WPCRM): Total cost of establishment including of debt, full cost recovery for O&M and for future extension to cover the demand needed for different strategies, should be considered in this model. Interaction and participation from user groups is must in this case. Private sector and/or communities involving in the different types of programmes and projects will be considered and expected contribution to economic growth and /or poverty alleviation. The model will give priority to the people who are affected by a project and make arrangement to encourage participating or take ownership. The model will also help to fix up water and wastewater tariffs for different types of users.


Geographical Information System

Water Balance Model (WBM)

Water Use Model (WUM)

Surplus Water Use Model (SWUM)


Optimization on allocation of water

Environmental Sustainable Model (ESM)


Is this environmentally sustainable?



Water Pricing & Cost Recovery Model (WPCRM) Balance Model

Water Resources Development Model (WRDM)


Water Resource Management Decision Support System (WRMDSS) Fig.2. Development of Water Resources Management Decision Support System

Environmental Sustainable Model (ESM): ESM should be formulated with activities interrelated among social development, economic development and environmental sustainability activities. It will consider the conservation, management of natural resources and ecosystems while modifications occurred in these to meet the needs of present and future generation. The model will incorporate environmental database. The environmental database of the valley will consist of information on waterinduced disaster, watershed and aquatic ecosystem. Outputs from the model will help to prepare map of vulnerability zone with aspect of groundwater pollution, floods, landslides and droughts. The risk analysis will be performed and produced risk map of different vulnerabilities of the valley. It will help for water-induced disaster management for the basin. Water Resource Development Model (WRDM): Nowadays water resources development should consider environmental and ecological issues at every level of the processes from policy making and strategy formulation through project planning, design, implementation and operation. Environmental impact analysis considering biodiversity, endemic, rare and endangered spices, and habitat should assess the model. The model formulated for the valley should consider multi-purpose use of resources and optimal allocation of water with environmentally sustainable and should account every possible positive and negative factor, which formulates the important constraints. The model should result in reduction or no incidence of natural and manmade environmental impacts and disasters. This model will be supreme model for the valley and directs all projects activities within valley. Optimizing the net benefit for the valley should solve any conflict or competition to use the resources. Trade-off optimizations technique will be formulated


5. Challenges: KVWSMB may face following challenges. i) Agreement on terms and condition of license for providing water supply and sanitation service ii) Lease agreement for undertaking the service system

Personnel Byelaw under which the employee of NWSC will transferred to The Board and to KUKL iv) Creation of conducive environment for transfer of NWSC to KUKL v) Examining performance standard ( performance Indicator) of KUKL as per license agreement vi) Tariff recommendation to the WSTFC vii) Balance between the interest of consumer and shareholder of KUKL, and between investors and KUKL viii) Unfavorable Political interest 1. Long time commitments and step-by-step improvements will give successful water management services.
2. Reform in utilities management require combination of effective leadership, political will, capability building, accountability, effective institution, financial recovery and affordability, and most importantly, time



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