A cost-sharing agreement has been signed between the Ministry of Water Supply (MoWS) under the Government of Nepal and the Ministry of Water Resources and Energy Development under the Karnali Province Government as part of the water sector governance and infrastructure support project.

The agreement was signed on Tuesday during a program held at the MoWS in Singha Durbar. Joint Secretary Ramakanta Duwadi represented the MoWS, while Provincial Secretary Indra Dev Bhatta signed on behalf of the Karnali Province Government’s Ministry of Water Resources and Energy Development.

Addressing the program, Minister for Water Supply Pradeep Yadav said that the agreement reflects a shared commitment between the federal and provincial governments to promote good governance in the water supply sector and to implement cost-sharing programs for infrastructure development within Karnali Province, ensuring coordination, transparency, accountability, and effective service delivery.

He said, “This agreement is an excellent example of coordination and cooperation among the three tiers of government under federalism. It also represents a joint commitment to promote good governance and carry out infrastructure development through cost-sharing initiatives in the water sector.”

Minister Yadav also assured that adequate budget allocations will be made for the water supply sector in Karnali Province.

Similarly, Karnali Province Minister for Water Resources and Energy Development, Bijaya Budha, expressed confidence that the project agreement signed today would bring significant progress in the water supply sector of Karnali Province.

Budha stated, “Karnali has long remained remote and underdeveloped in terms of development. I believe that the cost-sharing agreement under the water sector governance and infrastructure support project will bring a transformative change in the water supply sector for the people of Karnali.”

The Water Sector Governance and Infrastructure Support Project (hereinafter referred to as “the Project”) is being implemented under a financial agreement signed between the International Development Association (IDA) and the Government of Nepal on July 13, 2022. The project is set to run until July 15, 2028.

Joint Secretary Duwadi, stated that the “Participation Agreement” was signed between the Government of Nepal’s MoWS and the Karnali Province Government’s Ministry of Water Resources and Energy Development to ensure financial participation in the implementation of the project and to facilitate its monitoring.

On behalf of the Government of Nepal, the MoWS has entrusted the Department of Water and Sewerage Management with the responsibility of implementing Components 1 to 4 of the project, ensuring overall management, coordination, and monitoring of all activities under these components.

Under Component 1, programs related to institutional reform in the water supply and sanitation sector will be implemented. Component 2 will focus on providing support for monitoring and implementation to participating municipalities, with project activities being carried out through local-level project implementation units.

According to the agreement, Component 3 will focus on implementing programs within Birendranagar Municipality aimed at reducing climate risks and their potential impacts on water supply and sanitation infrastructure. This will be achieved through integrated water resources management and watershed management approaches.

The agreement was signed in the presence of MoWS, Mr Yadav; Minister Budha; Mayor of Birendranagar Municipality, Surkhet, Mrs Mohan Maya Dhakal (Bhandari); Mayor of Sharda Municipality, Salyan, Mr Prakash Bhandari; Secretary of the MoWS, Ms Pramila Devi Shakya Bajracharya; Director General of the Department of Water Supply and Sewerage, Mr Ram Kumar Shrestha, among others, as stated by the MoWS’s spokesperson and Deputy Secretary, Minna Shrestha.