The Asian Development Bank (ADB) is to give an $80m loan to Nepal for the Kathmandu Valley water supply improvement project.
The project will expand piped water access to more households, reduce water losses in the distribution system and raise the financial and asset management capabilities of agencies overseeing the sector.
Works under the project include the construction of additional bulk transmission systems and reservoirs, the rehabilitation of water distribution networks, increased household connections and the provision of 24-hour supplies in at least 10% of the targeted service area.
A comprehensive non-revenue water reduction and asset management plan designed to minimise purchase and maintenance costs will also be introduced.
ADB's South Asia Department urban development specialist Manoj Sharma said that the project will prioritise underserved areas and poor sections of Kathmandu Valley's population.