A €40 million water and sanitation project is proving too expensive for poor communities in small towns in Nepal, according to watchdog NGOs.

The NGO Forum for Urban Water and Sanitation says in a report that water tariffs are more than twice as high in project towns than in Kathmandu Valley. “The provision of compulsory 50 per cent contribution to the project by the water user communities has made it virtually impossible for the poor to benefit from the service.”

The Asian Development Bank put up $35 million (EUR 26.5) towards the $53.9 million (EUR 40 million) Small Town Water Supply and Sanitation Sector Project in 40 to 50 small towns. The rest was split between the Nepal government, water users and local government.

Binod Neupane, deputy manager of Nepali Town Development Fund, admits to problems but denies that the project is a total failure. “I don’t think it will be so difficult to make it a success if all the stakeholders work together.”

Related news: Nepal: new bills for water privatisation tabled, Source, 03 Nov, 2006

Contact: NGO Forum for Urban Water and Sanitation, Nepal, e-mail [mail to]; Mr. K. R. Panday, Asian Development Bank, e-mail [mail to]

Source: The Himalayan Times, 02 Dec 2006; South Asia Media Net, 03 Dec 2006

Related document:Small Towns Water Supply and Sanitation Sector Project (ADB).

Tags: financing