Concept Paper on Good Water Governance and Sustainability of Water

Supply and Sanitation Service of Kathmandu Valley:

-Dr. Madhav Narayan Shrestha

WASH Expert
mnshrestha@mail.com

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

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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.
i) 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

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 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 KVWSMB WSTFC

Regulatory actions and safe

Employees transfer
License and lease

guarding Consumers
asset agreement
Transfer

NWSC- 1 NWSC- 2
Management & Management &
Operation of water Operation of water
and sanitation and sanitation
services outside services inside
Kathmandu Valley Kathmandu KUKL
Valley
Assets. Liabilities
and Employees
Fig1. Institutional Reform on Water Supply and Sanitation Sector of Kathmandu valley

ii) 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

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 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 Sub-
Metropolis 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.
iii) 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,

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(b) 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,
(c) 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,
(d) 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,
(e) 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
(f) 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.
(g) To issue a license to the Service Provider for operating the Service or cause to
be provided the Service by entering into an Agreement.
(h) 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
(i) 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.
(j) 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.
(k) To prepare annual program and budget of the Board, and to approve human
resource structure
(l) 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.

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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. North-
Eastern 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

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 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

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 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).

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 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

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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 pro-
poor 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

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 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.

i) 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.

ii) 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.

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iii) 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.

iv) 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 Water Use Model Surplus Water Use

Model (WBM) (WUM) Model (SWUM)

Optimization

Environmental
Optimization on
allocation of

Sustainable Model
(ESM)
water

No Is this
environmentally
sustainable?

Yes

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 Water Pricing &
Water Resources
Cost Recovery
Development
Model (WPCRM)
Model (WRDM)
Balance Model
(WBM)

Water Resource Management Decision

Support System (WRMDSS)

Fig.2. Development of Water Resources Management Decision Support System

v) 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 water-
induced 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.

vi) 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

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 iii) 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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