1. Kapil Dev Gyawali Urban Sanitation and Hygiene Advisor
Opportunities and Challenges of PPP in Nepal: Learning from Municipal Practices in Water and Sanitation
Kapil Dev Gyawali
Urban Sanitation and Hygiene Advisor
WASH Expo
National Water Supply and Sanitation Training Centre, Nagarkot
18 March, 2015

2. Acknowledgement
Public Private Partnerships for Urban Environment (PPPUE)
Pokhara Sub-Metropolitan City Office
Butwal Municipality Office
Dharan Municipality Office
Western Regional Hospital
Chandannath Municipality Office
Marigold Concern Pvt. Ltd., Butwal-12, Rupandehi
Pokhara Waste Management Pvt. Ltd., Pokhara-8, Kaski
Ramnagar Tole Sudhar Samittee, Butwal
Krishnamandir Tole Sudhar Samittee, Jumla
Sulochana Sunar, Jumla
Biogas Plant Nirman Upabhokta Samittee, Dharan
Shree Khanepani tatha Sar-safai Upabhokta Samittee, Dharan

3. Presentation Flow Relevance of PPP in Water and Sanitation
PPP in Urban Water & Sanitation - Nepal
Legal & Institutional Arrangements for PPPs
PPP Practices in Municipalities
Lesson Learned
Opportunities and Challenges of PPPs

4. Relevance of PPP in Water and Sanitation
Water & Sanitation: Purely Public Goods
Management: Responsibility of Public Sectors
Ground for excludability- Pay for use
Existence of citizens demand
Space of private investment & profit making
In PPP, public sector can regulate contracts such that pro-poor aspects can be incorporated, such as, cross-subsidy, differential pricing, etc.

5. PPP in Urban Water & Sanitation - Nepal
Legal and Institutional Arrangements
Municipal Level – Several Practices
Concept of Water Management Board & Companies (KUKL) in KTM & Secondary Towns

6. Legal & Institutional Arrangements for PPPs
Legal & Policy
LSGR 1999 (first amendment-2006) provisioned “PPP Promotion Committee" in each local body
PPP Policy (for Local Bodies), 2004 and PPP Guidelines (for Local Bodies), 2005
Private Financing in Build and Operation of Infrastructures Act and Rules 2006, 2007
National Urban Water Supply and Sanitation Sector Policy, 2009
PPP White Paper, 2011
PPP Provisions in SWM Act, 2011
Sanitation and Hygiene Master Plan, 2011
Institutional
Environment Section as PPP Focal Point in MoFALD
PPP promotion Committees in Municipal offices
PPP trainings by government agencies like LDTA, UDTC, National Administrative Staff College

7. PPP Practices in Municipalities

8. Ramnagar Community Composting and Recycling Project, Butwal
(Practice of the PPP model in local level waste processing)
Implementi ng Agency
Butwal Municipality Office through Ramnagar Tole Sudhar Samittee
Contract Period
5 years
PPP Model
Build Own Operate (BOO)
Private Operator
Marigold Concern P Ltd., Butwal-12, Rupandehi
Key Date
Initial Contract Date- November, 2010

9. Municipal Waste Management in Pokhara Sub-Metropolitan City
(Practice of the PPP model in citywide solid waste management)
Implement ing Agency
Pokhara Sub- Metropolitan City Office
Contract Period
2 years
PPP Modality
Management contract
(Sharing of 20 % revenue from tariff collection with PSMC)
Private Operator
Pokhara Waste Management Pvt. Ltd.
Pokhara-8, Kaski
Key Date
Initial Contract Date- October, 2008

10. Use of PPP Arrangements at WRH, Pokhara-Solid Hospital Waste Management

11. Implementing Agency
Western Regional Hospital
Contract Period
2 Years
PPP Modality
Management contract
(Revenue sharing on sold recyclables)
Private Operator
Pokhara Waste Management Pvt. Ltd.
Pokhara-8, Kaski
Key Date
Initial Contract Date- January, 2012

12. Before
After(Treatment Center)

13. Public Toilet Management- Chandannath Municipality, Jumla
Implementing Agency
Chandannath Municipality Office through Krishnamandir Tole Sudhar Samittee
Contract Period
2 Years
PPP Modality
Management Contract
Private Operator
Sulochana Sunar
Key Date
Initial Contract Date- November, 2014

14. Community Biogas and Solid Waste Management, Sarduline, Dharan
Implementing Agency
Dharan Municipality Office
PPP Model
BOO(Build, Own and Operate)
Private Operator
Biogas Plant Nirman Upabhokta Samiti (a community based organization)
Revenue Stream
Tariff collection per user house against gas use

15. Swastika Gauraha Drinking Water Project, Dharan -13
Implementing Agency
Dharan Municipality
PPP Model
BOO (Build Own and Operate)
Private Operator
Shree Khanepani tatha Sar-safai Upabhokta Samiti (a community based organisation)
Revenue Stream
Tariff collection per month per user house against water use

16. Lesson Learned
Pro-poor aspects need to be incorporated in PPPs right from project conceptualization
Partnership with community organizations are effective in benefiting targeted groups
CCI’s play an important role in PPPs engagements in their capacity as motivators of potential private sector players
Developing specific policy and legal framework for PPP financing from financial institutions is necessary
No investment type PPP in Water and Sanitation: Model investment PPP projects is essential as confidence building measures
Seed Grant/Viability Gap Fund is very important in the success of PPP
Need to establish PPP institution within DWSS

17. Opportunities and Challenges of PPPs
Legal and institutional set up
Understanding and demand
Proven better services in sanitation through Private Sector(PS)
Municipalities nos. have increased to 191 that creates enormous opportunity to PS
Govt. alone can not invest / needs private sector to supply services
Challenges
Municipal Employees – duties more administrative, less developmental
Business communities in confusion on how to partner with government and the ways to secure profit and security

18. References
Compendium of PPP Practices in Municipalities 2012: Public Private Partnerships for Urban Environment
Glimpse of PPP 2012: Public Private Partnerships for Urban Environment
Presentation on Practices in PPP-Nepal Experience, June 2012: Purusottam Man Shrestha, NPM, PPPUE/MLD/UNDP/Nepal

19. THANK YOU