The ministry has selected Biratnagar and Birgunj sub-metropolis and Butwal municipality to develop infrastructures so as to increase their resources through tariff collection. [break]
“We are assisting three two sub-metropolitan city and a municipality to develop infrastructure and other facilities so that they can mobilize more revenue,” Kamal Raj Pandey, joint secretary at the MoPPW, told myrepublica.com.
Asian Development Bank (ADB) has, in principle, agreed to provide an assistance of $60 million for the purpose. The government is also investing 20 percent of the total cost of the project which is estimated at $90 to 95 million.
“We are also requesting OPEC Fund for International Development (OFID) -- a multilateral development finance institution established by members of Organization of Petroleum Exporting Countries (OPEC),” Pandey added.
Urban Environment Improvement Project (UEIP) will concentrate on improving road transportation, water supply, waste management, market center development in the municipal areas.
“Municipalities can´t be expected to increase resources until they are capable of mobilizing more revenue through different services to the residents. So the project will focus on developing infrastructures in the municipalities,” said Pandey.
Concerned municipalities will have to bear certain portion of the assistance through revenue mobilized from the new infrastructure and facilities developed under the program.
Under the first phase of the project, the government had selected Bidur, Bharatpur, Ratnanagar and Hetauda municipalities and a municipality in Kavre district on the basis of their periodic development plans, population, potentials of revenue collection and repayment.
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