2 May 2013: The Asian Development Bank (ADB) approved a $80 million loan to modernize and expand five wastewater treatment plants, and rebuild or lay 514 kilometers of sewers in Nepal. The project will expand the Kathmandu Valley’s treatment capacity from 16 to 90 million liters per day.

The project aims to: increase the percentage of sewage collected from 5% in 2012 to 80% by 2018; increase the number of people connected to a wastewater system from 1.20 million to 1.96 million; raise awareness of hygiene and sanitation in communities and schools; and build government capacity to financially manage and monitor wastewater systems.

According to ADB, the Kathmandu Valley is one of the fastest growing areas of Nepal, and low investment in sewage systems has resulted in the dumping of waste into areas such as the Bagmati River, a trend that ADB’s water and sanitation projects aim to reverse.

ADB has worked with the Government of Nepal to improve the Kathmandu Valley’s water supply and sanitation systems since 2000. In addition to this wastewater treatment project, ADB is constructing a tunnel to bring an additional 170 million liters of water per day into the area. The Government of Nepal and the Fund for International Development of the Organization of the Petroleum Exporting Countries (OFID) are also providing project financing. [ADB Press Release]