Government of Nepal and the World Bank Launch $100 Million Water Sector Governance and Infrastructure Support Project

The Water Sector Governance and Infrastructure Support Project was jointly launched by the Honorable Minister of Water Supply, Abdul Khan and World Bank Country Director for Maldives, Nepal, and Sri Lanka, Faris Hadad-Zervos.

The $100 million project, of which $80 million is financed by the World Bank and $20 million from government counterpart funding, will help Nepal improve the delivery of water and sanitation services and promote integrated water resources management. Aligned with Nepal’s federalism principles, the six-year project puts the municipalities at the forefront of project planning and implementation with a focus on strengthening service delivery and institutional capacities.

“In the context of climate change and federalism, delivering improved water supply and sanitation services and integrated water resources management are critical for economic and social progress. Strengthening sector governance and capacity at the federal, provincial, and local levels to improve institutional and regulatory reforms will be the key drivers to achieve this,” stated Abdul Khan, Minister of Water Supply. “The project complements the Government of Nepal’s existing programs in transitioning the sector service delivery to the municipalities as provided for under the Local Governance Operation Act 2017.”

The project will be implemented in six municipalities of two provinces: Birendranagar and Sharada municipalities in Karnali Province; and Dipayal Silgadhi, Bardogoria, Joshipur, and Janaki municipalities in Sudurpashchim Province. Both the provinces have low access to water supply and sanitation services, and a higher incidence of poverty, and are vulnerable to climate change.

“This project will help promote green, resilient, and inclusive water supply and sanitation services to over 400,000 people while providing employment opportunities and skills training to women in the water and sanitation sector,” stated Faris Hadad-Zervos, World Bank Country Director for Maldives, Nepal, and Sri Lanka. “With our continued collaboration with the development partners and the private sector, the World Bank looks forward to supporting the Government of Nepal in strengthening federalism through improved capacity in delivering water and sanitation services to targeted local communities.”

The project agreement for the Water Sector Governance and Infrastructure Support Project was signed in July 2022 by the Government of Nepal and the World Bank.