Water tariffs in the Kathmandu Valley have been increased, to allow the government to award the tunnel construction contract for the large-scale Melamchi Water Supply Project. A tariff rise was a precondition for funding of the project by the Asian Development Bank.

The rate for households using more than 10,000 litres of water a month has gone up from Rs. 50 to Rs. 55 (US$ 0.72 = € 0.55), while consumers using less than 5,000 litres a month pay Rs 27.50 (US$ 0.36 = € 0.28) and community taps cost Rs. 1188 (US$ 15.50 = € 12) a month. Heavy users like hotels and industrial companies face an increase of 30.76%. The rates for tanker water are Rs. 1100 (US$ 14.30 = € 11.10) for 5,000 litres and Rs. 1800 (US$ 23.40 = € 18.20)for 10,000 litres. People without a metered connection now have to pay Rs. 432 (US$ 5.60 = € 4.37) a month, as opposed to the previous rate of Rs. 360.

The Water Supply Tariff Fixation Commission (WSTFC) has instructed Kathmandu Upatyaka Khanepani Limited (KUKL), which is responsible for supplying water in the Valley, to install meters on unmetered taps within a month. According to the KUKL, there are more than 30,000 consumers without a meter connection in the Valley area.

Related news:

• Nepal, Kathmandu Valley: increases in water tariffs expected, Source South Asia, 15 Dec 2008;
• Nepal, Kathmandu Valley: Melamchi Water Supply Project to be completed within five years, Source South Asia, 02 Sep 2008

Web sites:WSTFC; Melamchi Water Supply Project

Source: Kantipur / NGO Forum, 14 Jan 2009

Tags: financing, south asia, water distribution