Karnali Province Water Supply Agreement Nepal: Federal Provincial Cost Sharing
7th May 2025, Kathmandu
In a significant step toward improving water supply infrastructure in Karnali Province, the Ministry of Water Supply and the Ministry of Water Resources and Energy Development of Karnali Province have signed a cost-sharing agreement.
Karnali Province Water Supply Agreement
The agreement is part of the Water Supply Governance and Infrastructure Support Project, aimed at enhancing water management in the region.
Agreement Details and Signatories
The agreement was signed today in a ceremony at the Ministry of Water Supply. Mr. Ramakanta Duwadi, Additional Secretary of the Ministry of Water Supply, and Mr. Indradev Bhatt, Secretary of the Ministry of Water Resources and Energy Development of Karnali, represented their respective governments.
Minister Yadav Highlights Importance of Coordination
Minister for Water Supply, Pradeep Yadav, addressed the gathering and highlighted the significance of the agreement. He stated that it would promote better coordination between the federal and provincial governments. He emphasized that the agreement would ensure transparency, accountability, and efficiency in water supply services. Yadav also assured that the government would allocate enough budget to address water supply issues in Karnali.
“This agreement is a model for cooperation between the three levels of government under federalism,” said Yadav. “It reflects our shared commitment to improving water supply governance and infrastructure through cost-sharing programs.”
Commitment to Solving Karnali’s Water Issues
Minister Yadav reassured the people of Karnali that the government would prioritize solving the region’s water supply problems. “I have personally witnessed the challenges in Karnali’s remote areas. We are committed to resolving these issues,” he added.
Provincial Minister Budh’s Confidence in the Project
Bijaya Budh, Minister for Water Resources and Energy Development of Karnali, expressed confidence that the cost-sharing agreement would bring positive change to the province. He acknowledged the region’s historical struggles with water access and underdevelopment. However, he was optimistic that this agreement would address those challenges.
“Karnali has always faced difficulties in development, especially in the water supply sector,” said Budh. “But with this agreement, we will see a transformation in the water infrastructure, benefiting the people of Karnali.”
Project Timeline and Key Areas of Focus
The Water Supply Governance and Infrastructure Support Project, funded by the International Development Agency (IDA), was initiated through a financial agreement signed on July 13, 2022. The project will run until July 15, 2028.
The agreement involves several key areas. These include strengthening water supply governance, building institutional capacity, and improving water and sanitation access. The project also aims to reduce the impact of climate risks on water infrastructure.
Government Responsibilities and Project Components
Under the agreement, the Ministry of Water Supply will oversee the project’s coordination and monitoring. The Department of Water Supply and Sewerage will manage the program activities.
The project is divided into several components. Component 1 focuses on improving institutional capacity in the water supply sector. Component 2 will implement the project’s activities at the municipal level. Local governments will play an important role in carrying out these activities. Component 3 will focus on integrated water resource management, specifically in the Birendranagar Municipality area of Surkhet.
Addressing Climate Risks and Emergencies
The project will also focus on climate-resilient water supply systems. It aims to enhance access to safe drinking water and sanitation while reducing the risks posed by climate change. Additionally, the project will establish emergency response measures to tackle water shortages during crises.
Project Funding and Cost-Sharing Details
The total cost of the project is estimated at USD 100 million (approximately NPR 13.38 billion). Of this, USD 80 million will be provided by IDA as a loan to the Government of Nepal. The remaining USD 20 million will be co-financed by the federal government, provincial governments, and local municipalities.
The federal government will contribute USD 37 million, while Karnali and Sudurpashchim provinces will provide USD 10.57 million. Six participating municipalities will contribute USD 5.7 million to the project.
Key Officials Attend the Ceremony
The signing ceremony was attended by several prominent officials, including Minister Yadav, Minister Budh, Mayor of Birendranagar Municipality Mohanmaya Dhakal, Mayor of Sharda Municipality Prakash Bhandari, and Secretary of the Ministry of Water Supply Premiladevi Shakya Bajracharya. Other notable attendees included the Director General of the Department of Water Supply and Sewerage, Ramkumar Shrestha.
This agreement marks a significant step in improving water infrastructure in Karnali Province. It sets a precedent for future cooperation between the federal government, provincial governments, and local municipalities in addressing the water supply challenges in Nepal.
For more: Karnali Province Water Supply Agreement
