48144 v2 Dia Kathmandu Metropolitan c i t y Kathmandu Metropolitan City The World Bank JANUARY 2001 Ci Dia Kathmandu Metropolitan City Kathmandu Metropolitan City / World Bank JANUARY 200 1 1Pf mv:- ~·!f.:- 2"d February, 2001 Kathmandu is a modernizing city with a glorious history and heritage to be proud of. During the past three years of my tenure, the Metropolis Government has welcomed the challenge of striking a balance between modernization while preserving and nurturing our city's historical characters. In those years, the most I have come to appreciate about Kathmandu is its vitality, its willingness and perseverance to go on against all odds, whatever they may be. It is against this backdrop that I have tried to bring before you our City Diagnostic Report and City Development Strategy. My interactions with the CDS team and their capable counterparts from KMC, during their continuous seven-month effort in the preparation ofthese documents, has given me full confidence in vouching for the usefulness of both the documents. I also take the opportunity to guarantee my administration's unfailing support in following the strategic guidelines that CDS has recommended. I am confident that the City Diagnostic Report will provide necessary insight information on Kathmandu and the City Development Strategy will have paved the way for essential rebuilding and revitalizing activities that our city needs. The documents would have done their job if they find ways to give more impetus to the vitality of our city, because, that is what will keep our city moving and ever vibrant. ~­ Keshav Sthapit Mayor tfir.t if. ~~We:" (i1fl'), ~~,~~' (~-~), ~~'t~'t~ (ifiiQifil(l ~), ~'for;'(oV'-'I~:i/'lo, ~if. ~'e;~o~ ~ : kmcmayor@mos.com.np, ~ llf!m' if. c;~"'· ~ ifiiMI~ ~ dJ=t',J.l ~nd guidarice of . M~:··Keshav Sthapit,Hon.:Mayor and:Mr,. Bi~ttr Main~li~,Jjqn:·o~J;: Mayor o.f}CMC. '~-;~ ·; ABOUT counterpart and WR Conmltrmt Team) !'he 'City Diagnostic Report' CDR for Kathmandu comments and to exam1ne the critical cross- Metropolitan City (KMC) was prepared over July sectoral i<.:sues. 2000-J:muary 200 I. The CDR has been prepared cxci!Jsivcly hy a leam ofnational consultants with The chapters presented arc the finn! outcome of valuable inputs fl·om KMC counterpart team as intensive exercise by the consultants and the KMC' well as timely suggestions fl·om the World B:mk counterpart team. together with a series of field experts. The ten chapters in CDR provide a meetings at the community level, specially in the comprehensive overview of the sectors they cover. case or squatter settlements. A number of findings They were prepared with a view to provide of the sectoral papers are also based on review of b8ckground in formation on KMC's existing existing literature. for vvhich due acknowledgements situation to the readers and development agencies have been given by the authors. so !hal they may deploy their resources to problem areas through crystallization ol'project assistance This di 10000 ~o~ 1 4 15 34 Source: 1\ntional census 1971, 1981, 199]: Dmft 1\athnwndu \'all~~- Dcwlnpmcnt Plnn 2020, 1\\TDC, .July,2000. Note: Significnnt reduction in the projected gro\\"Lh mtc of the YallcyYDCs pmtly due to the urban bias of tllc Component cl!ld l::\ method used for popul~ttion projection. 14 URBAN PLANNING Panchayats ( 1988) and Snowy Mountain Engineering in the census, migration could account for almost 31.1 Corp ( 1990) have also tended to remain on the lower percent of the urban population. side. The average household size of the urban population of 1.3.1.4 Population Density in Kathmandu Kathmandu Valley in 1995-96 was 5.1 persons which Metropolitan City was marginally less than the national average. In the same year, sex distribution of the valley's urban The Draft Structure Plan for Greater Kathmandu had population was 51.5% male and 48.5% female while estimated the overall gross population density in 1987 the literacy rate stood at 77.9%. The higher percentage to be about 60-65 persons per hectare. Overall net of males in the Valley's urban population is probably densities were estimated to be 104 ppha for due to the greater number of males who come to the Kathmandu and 116 ppha for Lalitpur. In the same valley in search of employment and education. year, the Infrastructure Assessment Report for Kathmandu and Lalitpur Nagar Panchayats prepared by the same study team found 6 out of 33 wards of 1.3.1.3 Migration in Kathmandu Kathmandu City had densities exceeding 500 ppha Metropolitan City with ward 23 having the highest density of 1273 ppha while 5 out of 22 wards of Lalitpur had densities in In the past migration had been a major source of excess of 500 ppha with the highest density of 1119 population increase in the Kathmandu Valley. Large-scale ppha registered in ward 14. migration had been observed after the 1960s because of Government policies which tended to centralize services Based on 1989 aerial photographs, the Kathmandu Valley and economic opportunities within the Valley. Regulating Urban Development Plans and Programs had divided Growth (IUCN, 1995) had stated that in 1981, migrants Greater Kathmandu into 5 zones with net residentia·l comprised 11.1 percent of the valley's urban population. densities ranging from 850 ppha in the core areas to 140 In 1991 migration had accelerated with migrants ppha in zone I, 80 ppha in zone 2, 40 ppha in zone 3 and constituting 19.4 percent of the urban population. 5 ppha in zone 4. The study assumed that the city could Kathmandu Development Plan 2020 had also estimated attain through densification a net residential density of that migration accounted for about 37.5% of the 200 ppha or a gross residential density of 170 ppha for population growth of the Valley during 1981-91 whereas the city. The study noted that rapid growth would occur it accounted for about 52% of the population increase of during the earlier stages of development but this would Kathmandu Metropolitan City during the same period. taper off after a density of about 70 ppha had been reached. KMC was the main destination of the migrants. In This was because road fronting lots would be quickly comparison migration was moderate in Lalitpur and very developed leaving large undeveloped areas at the back nominal in Bhaktapur. Bhaktapur had in fact experienced with difficult access. net outrnigration during the period. From the 1991 census it was found that the overall ln 1993 ICIMOD roughly estimated the floating gross density of KMC was about 84 ppha, (see table population of the valley to be 50,000. Labour employed 4 ). Densities in the I 2 wards of the city core ranged in manufacturing is generally not enumerated in the local from 419 ppha in ward 22 to I 067 ppha in ward 27. population by the national census. The 1995IUCN study Eight wards from the city core area had densities in estimated that if the floating population and the migrant excess of 500 ppha, (see fig. 3). Comparing this to labour were added to the migrant population enumerated the data presented in the 1987 Structure Plan, it appears that emigration had occurred in the most Table 3: Migration into the Cities of Kathmandu congested wards but less congested city core wards had experienced density increases. Densities dropped Cit}' 1981 % 1991 % off abruptly in the remaining wards. Three wards had Kathmandu 29,127 78.4 83,511 83.7 densities ranging from 150-200 ppha of which two L.alit~ur 6,397 17.2 14,787 14.8 were older city extensions to the north and south of Bhakta~ur 1,610 4.4 1,439 1.5 the core area and the remaining one was also the Total 37,134 100 99,737 100 Source: Population Census {unpubl!shed) as presented 111 Regulating Cirmnh, relatively old settlement areas of Bag Bazaar, Putali 1995. Sadak and Dilli Bazaar to the east of the city core. l5 ...... 0"1 .. I \ fig. 3 ..,.-- , __ ,. \ WARD-WISE I ;- r.J 1 " I POPULATION DENSITY () I I .I '1. I I 8 I 1991 I B \.,.... ___ , , " -1 \\ ~ I \ " ._...... I 0 ' I "" : ·---. I ·>= r "" ""' G) 1.. • _ _ _ _ _ _ _ ...,. ..,. 9 ... : r.>...1 ~- ..... ..-" ( z \ ~ • . : 3 g '\ ) "' I ¢ 0 (/) "' . \ '(. "' I ~L 1 1.5 2~m I 16 · .- .. : I I" -. ::! 'j : ;,.·, :"·.: « I I "" Scolo () ·-· .. ··-. ; m \ .- .. -:.,. J ) ' ; . : 4 , J- , I . -··· ~, ;::o R / l': ,;' ,·. m6 ~- I 0 __ , I ~ }/ Legend <- ·,. 'Y~J .s= ..· .' L I Ill' IJIIIJ lllll ],1 ·~. ~ 1-35 Ward Indicator 1 1 ' . / KMC Boundary •' . ,/ '\\/' Ward Boundary ~ >400 Population per ha ; 1 ; /:_ ·. I ~ 150-200 -~J - , m , •• • : p~ ... · .G._ .... =-----.! OJJII 100-149 00,' : '. f-: ---c--~- - - - - - - - \ ' i . .. ' ~. . J' l E::3 50- 99 m _. ', I II •.. ', (... ·I? ¢P J c=J <50 .. .1 ,' \ ..... .~-~· J ' ..... "- .-- . ,. .'1 ... "'::-,---- _.J ,,-- .. - , ... '----·l--q .'------.<~--~· / \ -~· ~-------_,' I " ry ..... ...__ . . / I " I ........ \ 35" \ KATHMANDU CITY ' .. .... J \ I DEVELOPMENT STRATEGY I "' .... I Source: Kathmandu Metropolitan City \ I nformalion & Communicatio~ Department - "............ i Geographic Information System Section URBAN PLANNING corresponded to low-rise low-density development. Tablle 4: Area, Households, Population and Population There has been a gradual process of densification in Density by Wards of Kathmandu many of the wards, generally in decreasing order from Metropolitan City in 1991 the city center to the periphery, but the true extent and Ward Area in No. of Population Population the intensity of this process can only be properly No. ha. Houserwlds Density ppha determined after the actual enumeration of the ward 1 138.4 1555 8731 63.09 populations in subsequent studies or census. A 2 81.3 1804 9163 112.71 population update is not expected before the forthcoming 3 329.7 2756 14347 43.52 4 324.1 3086 15337 47.32 2001 national census~ 5 79 1691 8646 109.44 6 366.8 3292 17509 47.73 Currently the city's infrastructure has fallen far short of 7 153.5 3810 19797 128.97 population growth, limiting to some extent the natural 8 253.8 1607 7756 30.56 process of densification. However, if these could be 9 301.9 3209 16516 54.71 sufficiently upgraded and extended together with a 10 156.8 3375 16000 102.04 11 183.9 1814 10055 54.68 concomitant improvement in the transportation system, 12 51 1774 9940 194.90 densities within the city wards could still be increased 13 213.3 2774 14746 69.13 s'lbstantially to accommodate a significant proportion 14 302.9 3655 18425 60.83 of the future population growth. 15 316.5 3838 19627 62.01 16 437.4 4121 21286 48.66 1-!alcrow Fox et a! in its Kathmandu Valley Urban 17 65.7 2263 11605 176.64 Development Plans and Programs (KVUDPP) had cc 18 18.9 1428 8081 427.57 cc 19 15.5 1284 7588 489.55 projected that in 2000 much of Greater Kathmandu cc 20 15.7 1702 8920 568.15 within the ring road, except for institutional areas, open cc 21 15.4 2343 12383 804.09 land and river flood plains, would have a gross urban cc 22 18.8 1288 7884 419.36 density of 100-139 ppha or higher. Only the outer fringes cc 23 10.2 1580 8711 854.02 of the metropolitan areas, mainly the western and cc 24 8.9 1044 6288 706.52 northern fringes, were expected to have lower densities. cc 25 10.3 954 5744 557.67 Core areas were expected to maintain average densities cc 26 4 766 4248 1,062.00 cc 27 7.6 1417 8112 1,067.37 of 700 ppha while the relatively earlier settled areas cc 28 6.8 845 5077 746.62 outside the core areas of Kathmandu and Lalitpur were 29 218.6 3885 19179 87.74 expected to have densities of 140-1 70 ppha. The areas cc 30 25.4 1974 11079 436.18 outside the ring road to the south of Lalitpur and along 31 103.7 2260 12455 120.11 ~the Kathmandu-Bhaktapur transportation corridor were 32 128 3339 14613 114.16 expected to attain gross densities of 3 0-79 ppha. 33 85.7 3636 17025 198.66 Similarly, areas of Kathmandu outside the ring road and 34 232.1 3375 16000 68.94 35 395 2532 12000 30.38 along the arterial roads were expected to have densities Total 5076.6 82076 424873 83.69 of 100-139 ppha. These areas were Bouddha, Bansbari, Sourec:K~fC; I louschold nnd Popu ::Ilion, CBS c.:cn.sus 2048. Balaju and Kalanki. As expected, densities in the airport cc- c1ty core l\otc: The toted mu-d populntiou lk~\iatcs slightly from census d:tttl b<.:cuusc popuh1- and Pasupati areas were projected to remain low. In tion figures for wnrds .14 nnd J5, wh1ch wc:rc formed odtcr the census, \\"ere general cstinwtcs. reality, the actual urban densities in Greater Kathmandu ~~ ~ ~ are expected to be much higher since the population Six wards, the areas to first experience urban expansion, projections were significantly underestimated by had densities of 100-149 ppha while~ 8 wards, which were 1-!alcrow Fox et al. As per the population projection of areas subsequently urbanized, had densities of 50-99 the KVTDC study, Kathmandu City is expected to attain ppha. Five wards at the fringes of the city had densities a gross average density of about 144 ppha in 2001. If less than 50 ppha with wards 8 and 35 having the lowest Halcrow Fox's assumptions that the city can attain gross density of about 30 ppha. Both these wards had large average densities of 170 ppha are accepted, the city will areas occupied by the airport and Pasupati area, which not be able to accommodate more than 150,000 restricted urban expansion. additional population after 2001. It can generally be surmised that apart from the historic KVTDC in its proposed draft Development Plan 2020 city core and the early settlement areas, the density for Kathmandu Valley had noted that a large proportion patterns of many of the city wards ofKathmandu in 1991 of the expected population growth could be 17 CITY DIAGNOSTIC REPORT accommodated within the existing urbanized areas if could be achieved by opening up landlocked parcels of high-density developments were to be established at land, which still exist at various locations within the city, selected locations with good transportation linkages and through land pooling or guided land development infrastructure services. The study had proposed such programs. Policies could simultaneously be formulated developments at the intersections of the main radial roads to encourage high-density development in the form of and the ring road. KVTDC had specified that it was high-rise apartments and commercial buildings at desirable to maintain a gross urban density of not less selected locations. As suggested by the KVTDC study than 300 persons per hectare which could be achieved suitable locations for such developments could be the through housing policies that encouraged the areas close to the intersection of the ring road and the development of multi-owned apartments over the current main atierial roads. These policies in conjunction with practice of detached owner built and occupied houses. the development of a central business district, which was It can be concluded that if such a policy could be proposed by the KVUDPP study and is under successfully implemented, a significant amount of consideration by KMC, could help relieve congestion additional population could be absorbed within the in the city core as well as prevent the erosion of its tax existing urban areas through densification alone. base. It must be noted, however, that these programs cannot be effectively implemented in the absence of a comprehensive land use plan and the attending 1.3.1. 5 Prospects and Limitations of regulations as well as programs to concurrently improve Population Growth in KMC infrastructure and transportation services. Although the population growth rate of KMC had been In view of the fact that much ofKMC has already been quite alarming in the past, registering 6% growth rate built up and urban growth has spilled over into the between 1981-91, this is expected to reduce significantly surrounding VDCs, the city must consider annexation in the future mainly because of the emergence of other of the contiguous urbanized and urbanizing VDCs as a urban centres that will help to draw migrants away from distinct possibility in the near future. In fact, the inclusion Kathmandu as well as the limited land available within of most of the VDCs of Kathmandu District, except those the existing KMC areas to accommodate additional to the south and west ofKi1iipur Municipality, to create population. By itself, population growth does not pose a larger Kathmandu Metropolitan District would be even much of a problem. ln fact, population is a valuable more practical as the city would have additional land to resource that is necessary for the economic growth of plan for essential services which are currently the city. As larger manufacturing industries are unavailable and to accommodate its future population decentralized to other urban centres and Kathmandu growth in planned settlements. Thus, if KMC takes specializes in service industries and information proper measures to increase the overall density, promotes technology, it would be necessary to attract entrepreneurs high-density developments at selected locations and and people with higher skills who could contribute to expands its municipal borders, it should be able to easily the creation of jobs and wealth in the city. Policies to manage the expected population increase of the future. restrict population growth could often be counterproductive and bring about economic slowdown. To retain the tax base of the city it will also become 1.3.2 Growth of Kathmandu City imperative to house the growing population within its municipal boundaries. Thus the challenge to the city is 1.3.2.1 Early Urban Expansion Trends not to restrict population growth, but to manage the growth in a planned manner. The earlier settlements of Kathmandu Valley were normally located on the drier, less fertile elevated flat A study of the density patterns suggested that densities lands, locally referred to as "tars", in order to preserve were quite low outside the city core. The city is expected the fertile agricultural land along the valley's numerous to have a gross density of about 144 ppha in 200 I. The river flood plains. Until the Malia period Kathmandu KVTDC study has suggested to maintain a density of City remained as a compact settlement surrounded by not less than 300 ppha which means that if effective agricultural land. After the Gorkha conquest the physical policies to encourage densification could be development of the Valley was greatly influenced by implemented, much of the future population could be the construction of new palaces outside the city core. absorbed within the existing urban area. Densification This practice was most prominent during the Rana period 18 URBAN PLANNING URBAN EXPANSION TREND IN KATHMANDU VALLEY fig. 4 1984 1991 2000* 2015 KATHMANDU CITY DEVELOPMENT STRATEGY Source: Kathmandu Valley Urban Road Development, JICA, 1993 • Kathmandu Valley Development Plan 2020. 2000 19 roads especially at Balaju, Maharajgunj and "' Jaulakhel. Different stages of urban growth in the valley are shown in Fig. 4. Although the first urban development plan had been introduced in 1976, it had little effect in promoting planned development of the city. Unclear zone boundaries, vague allowable land uses and weak implementation led to laissez faire planning. Resource constraints prevented the Government from playing a proactive role in the development process. Instead, land development was carried out mostly by brokers and individual landowners. Unplanned Urbanization Urban expansion tended to be haphazard and unplanned and concentrated mainly along when palaces were built to the north, northeast and east existing roads as ribbon developments, leaving large of the Kathmandu City. A road network system was pockets of inaccessible and unserviced areas in between. developed linking these palaces to the city core and to In many instances urbanization was occurring even in each other. Over time small settlements grew around the absence of infrastructure, which was often provided the palace complexes and the land made accessible by only after the development process had been well the interconnecting roads became the areas to be first established. Regulation of! and development was further developed following the political changes in the country hampered by the fact that building permits and land after 1951 (Department of Housing and Physical registration/sub-division were conducted by different Planning, 1969). agencies which made little etiorts to coordinate their activities. Urban growth of Kathmandu outside the historic city core area occurred in the 50s and 60s mainly to the east and northeast, along Bag Bazaar, Dilli Bazaar and Putali 1.3.2.2 Urban Growth in the 80s and 90s Sadak in the east and towards Lazimpat and Maharajgunj in the northeast. These were generally low-density linear By the 80s and the 90s, urban growth of Greater developments along existing road networks but without Kathmandu was taking place generally in the north-south adequate infrastructure services. At the time of the direction. This was mainly due to the fact that much of preparation of The Physical Development Plan for the the easily accessible land had already been urbanized Kathmandu Valley in 1969, Kathmandu city was and the land bordering on the west was undulating and confined to the highlands between the Vishnumati River difficult to develop while the airport and the and the Dhobi Khola in the east-west direction and Pashupatinath area impeded expansion to the east. between Bagmati River and Maharajgunj in the north- Although pockets of inaccessible land still remained south axis. Low intensity urbanization had occurred in undeveloped within the municipal areas, unregulated the periphery, leaving large interstitial areas of ribbon developments along the principal arterial roads undeveloped land within the city areas. had extended beyond the city limits into the adjoining village development committees (VDC). The city had Urbanization gained further momentum during 1970- no jurisdiction over developments occurring beyond its 80 when low density urban expansion spread to outlying borders in the VDCs. The Statutory Plan dating back to well drained tar lands with easy road access such as 1976 also did not cover areas beyond the municipal Bansbari, Teku-Kalimati, Baneshwore-Battisputali, etc. boundaries as a result of which the Kathmandu Valley These new developments were occurring beyond the Town Development Committee, the agency solely Vishnumati River on the west and Dhobi Khola on the responsible for planning and regulating urban east. The ring road; which was constructed in the mid- development of the Greater Kathmandu area, did not 70s, gave further impetus to urban expansion as more have the legal basis to control urbanization in the VDCs. areas were made accessible. Developments accelerated In fact, many activities, which probably would not have at the intersection areas of the ring road and the arterial been permitted in the city, tended to locate just outside 20. URBAN PLANNING enforced. Today, urban growth has permeated into much of the flood plain areas ofBagmati, Vishnumati and Dhobikhola. Interestingly, the Kathmandu Valley Urban Development Plans and Programs (1991) had foreseen the inevitability of this trend and had accepted and given continuity to this process in their proposal as an alternative to uncontrolled urban sprawl along the city periphery where infrastructure servicing would be difficult and expensive. Because of the high land value and demand for urban space and the rationale for maximizing efficiency of urban land, it is difficult to visualize, in hindsight, how without outright land acquisition, the municipal boundaries in order to circumvent the urbanization could have been prevented in the requirements of building permits. This was the time agricultural and low lands within the city areas. when many industries were set up along the Kalanki- Thankot and Kathmandu-Bhaktapur transportation Environmental considerations have forced all the corridor. subsequent plans to propose some form of protection of the river systems. While the earlier plans proposed to A major thrust in urban expansion had also been prohibit developments in the flood plains, the occurring in the east along the Kathmandu-Bhaktapur Development Plan 2020 has acknowledged urban transport corridor. Bhaktapur had long remained a developments in the flood plains as a fait accompli and neglected and relatively stagnant city in the past. Since proposed a setback of 20 metres from the river edge. the 80s, the intervening space between Kathmandu and One of the difficulties experienced in protecting the river Bhaktapur was being filled up with low-density urban domains from encroachment and maintaining uniform development. This process has continued unabated setback along the river edge has been the lack of clear throughout the 90s. demarcation of the river boundaries, especially on the cadastral survey maps. Disputes have often arisen because of the changes in the river courses and without 1.3.2.3 Urban Expansion into Flood Plains proper records of such variations, delineation of accurate river domain has been difficult to establish. This has In the 80s, apmt from expansion into the outlying "tar" greatly handicapped more recent efforts by the lands, development was also concurrently occurring in Municipality to maintain a greenbelt setback along the the low-lying flood plain areas close to the cities. riverbanks. Alarmed at this development, several studies attempted to formulate policies to halt this process. The Kathmandu Valley Urban Land Policy (1986) and the Management 1.3.2.4 Land Development Process in Support for Urban Development ( 1991) recommended Greater Kathmandu policies to be introduced to confine urban development to the tar lands and preserve the low lying productive Because of the Government's limited role in plan agricultural lands. In 1988, the Ministry of Housing and implementation, land development in the urban Physical Planning had prepared a "Land Development expansion areas has been conducted primarily by private and Conservation Scheme" which advocated owners, land brokers or land development companies. preservation of prime agricultural land and conservation Whereas individual landowners and brokers have tended of flood plains and low lands within Kathmandu Valley. to develop residential parcels on a plot by plot basis, the A moratorium for a short period was declared on land companies have developed clusters of plots on relatively sub-division and building construction. However, larger chunks of land. The companies' process has been without a legal basis to prohibit construction in the low a slight improvement over the piecemeal approach of lands and agricultural areas as well as due to intense the individual owners and brokers, however, areas public resistance, these policies could not be legally developed by the companies have been generally too 21 CITY DIAGNOSTIC .·REPORT small to make a profound impact, between 0.25-0.5 ha. development programs have tended to be ad hoc and (IUCN, 1995). The developed land has also tended to not properly coordinated with other city functions. be deficient in road width, infrastructure services and 1 open public spaces. There were more than 250 land The informal land development process had rarely given development companies (Thapa 1995) but few were proper consideration to infrastructure, structural safety found to be active (IUCN 1995). Land development also of buildings or access for emergency vehicles. In view of often tended to be carried out for speculative purposes the fact that Kathmandu lies within the active seismic zone, and served mainly the middle and higher income groups this aspect should not have gone unattended. However, (Thapa 1995). With the recession in the land market in the laissez faire planning of the past had led to a situation the past few years, most of the land developers have whereby the existing deficiencies could not be rectified suffered losses or been driven out of business. Very without extensive demolition or redevelopment. The recently private business groups have shown interest in National Society for Earthquake Technology (NSET, developing large housing schemes. A joint venture of a 1999) had estimated that in the event of a large earthquake local business house and an Indian housing company is in the Valley, almost 60 percent of the buildings and 95 currently constructing an apatiment complex at Bagdol percent of water pipes could be severely damaged. About in Lalitpur. This type of planned area development does half of the valley bridges and more than 10 percent of result in more efficient urban land use and similar paved roads could also be rendered unusable. Areas projects, especially those aimed at lower income market, without access to emergency vehicles could face major need to be promoted in the future. difficulties in times of calamity such as fire or earthquake. NSET had advocated proper implementation of building In the absence of proper plans and regulatory measures, codes and land use plans which incorporated seismic past land development process has tended to be very issues such as provision of open spaces in urban areas inefficient. As a corrective measure the Town and prohibition on development of areas susceptible to Development Act 2045 (1988) was enacted after which liquefaction or earthquake induced landslides. The fact the Government had a legal basis to intervene in the that much of the urbanized areas of Kathmandu falls under land development process. Three strategies were areas most prone to liquefaction and the city is severely proposed for developing land for housing and other uses: deficient in open urban spaces makes implementation of site and services, guided land development and land such policies all the more imperative. pooling. Site and services necessitated the acquisition of private land and was the less preferred model because of high public resistance to land acquisition due to the 1.3.2.5 Urbanization beyond Municipal long process involved and the Government's Borders umealistically low compensation rates. Site and services programs were carried out at Kuleshwore for civil Since the 80s and 90s, urban growth has extended beyond servants and at Gulfutar and Saibu for the general public. the Kathmandu Municipality borders along the main radial Guided land development (GLD) was carried out roads. In the coming decades much of the areas of the throughout most of Greater Kathmandu by DHUD, surrounding VDCs is expected to be urbanized. excepting the city core areas. With limited intervention, GLD did help to open up areas which had no access to The 1995 study by IUCN had found about 37 percent of roads. The drawback of GLD was that there was no the VDCs of Kathmandu and Lalitpur as well as 24 provision for concurrently incorporating land use and percent of the VDCs ofBhaktapur to have urban to semi- infrastructure development and relied on the cooperation urban character. If the trends were allowed to continue, of landowners to provide access. Many GLD programs could not be implemented because of the non co- Table 5: Urbanized VDCs of Kathmandu Valley operation ofthe landowners, especially those with road fronting lots. The third program introduced was land Total VDCs Urban to Semi-Urban VDCs pooling, which was a definite improvement over GLD 1994 % 2010 % for sites which were relatively undeveloped. Land Kathmandu 65 16 36.9 32 49.2 pooling has been implemented with relative success at lalit~ur 24 9 37.5 16 66.6 Gongabu, Dallu, Lubhu, KaJVal Vinayak. However, in Bhaktaeur 21 8 23.8 16 76.1 the absence of an overall land use plan, these land Total 110 33 30.0 64 60.0 Source: [{cgul~ltin.C: (irmnll: K::ltlllH::lndu \'i:!llcy, JUCX, 19()5. 22 ~ Municipalities ~ VDC Having Projected Population ~ >10,000 in 2021 c rill VDC Having Projected Population ;:o. u...L.J >10,000 in 2011 OJ r--1 VDC Having Projected Population )> L__l <10,000 in 2021 z '1J r )> VDCs WITH PROJECTED z .Z POPULATION z 0 2.5 5 7.5 10km EXCEEDING 10,000 G) f¥¥#\ii#i&RW%!1 W W&ffi@¢1# mwJ Seolo KATHMANDU CITY DEVELOPMENT STRATEGY N Source: Kathmandu Development Plan 2020 w. CITY DIAGNOSTIC REPORT The trend of urban expansion into the surrounding VDCs gives rise to several problems. The urbanization process tends to be unplanned and without accompanying infrastructural developments and the city does not have the jurisdiction to regulate such growth. Whereas, the residents enjoy the many facilities and services provided by the city, it becomes difficult to include them in the development process and bring them into the tax system of the city. Given the current situation, it is highly improbable that the individual local bodies, mainly the other municipalities which have been enjoying Unplanned Urbanization in surrounding VDCs certain levels of autonomy, would be willing to be merged into a single large entity, despite it predicted that about 60 percent of the Valley VDCs the many planning advantages it may have. However, would be urbanized by 2010. many smaller VDCs could be more willing to be annexed by a larger municipality in the hopes that such a merger A few adjustments were made in the municipalities and would bring about improved services and investments. VDCs of the valley prior to the 1997 elections. A few wards of KMC were readjusted to create two additional wards, bringing the total to 35 wards. Two new municipalities of 1.3.2.6 Current Urbanization Pattern Kirtipur and Madhyapur Thimi were formed by combining eight adjoining VDCs of Kathmandu District and five An imprint of Greater Kathmandu's current growth VDCs ofBhaktapur District respectively. As a consequence pattern resembles the shape of an octopus. Urbanization the total number of VDCs within the Kathmandu Valley has extended upto Thankot in the west, Budhanilkantha was reduced from 11 0 to 99. in the n01ih, Jorpati and Sundarijal in the north-east, Bhaktapur in the east, Lubhu and Godavari in the south- The KVTDC study had projected that in 2001 four VDCs east and Chapagaon in the south. Without a including Jorpati of Kathmandu District would have a comprehensive policy to plan and regulate urbanization, population in excess of 1O,OOO.ln 2011, 15 VDCs including this process is expected to continue, especially in the 7 VDCs ofKathmandu District were expected to have more east once the Valley is linked to the eastern part of the than 10,000 population and by 2021 this munber was country by the Banepa-Sindhuli highway. expected to increase to 34 of which 17 were expected to be from Kathmandu District, (see fig. 5). Although population The Kathmandu Urban Land Policy ( 1986) had predicted by itself is not a true indicator of urbanization, high that if prevailing trends of urban growth were allowed population levels in the VDCs tend to correspond closely to continue without appropriate action to check the to the urbanization patterns. This relationship is growth, about 60 percent of the entire valley (about corroborated by a general examination ofthe current trends. 34,000 ha.) would be urbanized by 2020. A consequence of the unchecked urban expansion has been the loss of The problems related to development spillover from the cities fertile agriculture land, environmental degradation of to the VDCs and the lack of coordination and overlapping the valley, depletion of water resources, poor and jurisdictions and responsibilities had been well recognized deficient infrastructure, improper disposal of industrial in previous studies. The National Urban Forum 1995/96 had and domestic waste and pollution of air, water and land. suggested the creation of an agency, which would prepare plans for the entire valley and would have the authority to plan, coordinate and monitor development works within the 13.2. 7 Infrastructure Services Valley. The Forum recommended the formation of three Municipality Districts to replace the existing local The Nepal Water Supply Corporation (NWSC) IS governments. There had also been a suggestion for the responsible for water supply in KMC. NWSC's supply creation of a single metropolitan district for the valley. in the wet season is 120 mld and 80 mid during the dry 24 URBAN PLANNING season (Lumanti et a!, 2000). Much of the Greater in Lalitpur and 6 km. in Bhaktapur (DOR, 1998). The Kathmandu's 270 km. of pipeline is estimated to be over roads in the city core are narrow and not designed for 50 years old resulting in losses of about 40% of total vehicular traffic. Excluding a few roads, much of the supply(ICIMOD, 1993). Per capita consumption in 1992 urban roads are narrow and traffic congested. The mix ranged from 145 lpcd among high-income group to 45 of slow and fast moving traffic, bottlenecks at certain lcpd among low-income group. Some city core areas locations, increase in vehicles, encroachment on the consumed as low as 14 lcpd, primarily due to roads etc. are contributing to increased traffic congestion. unavailability of water (EMAG, 1992). Water demand No effort has been made to link land use and was expected to reach 213 mid in 2001 (Lumanti et al, transportation planning. For further details, refer section 2000). The widening gap in the supply and demand of on transportation. water has resulted in increasing shortages. Private tanker services and individual deep wells have helped alleviate some of the shortage but the problem is not expected to 1.3.2.9 Growth of Slums and Urban be resolved until the Melamchi Project comes on line, Squatters probably sometime in 2006. Another unfortunate and unforeseen development of the The 1992 study by EMAG had estimated 17% of continued unplanned urban expansion has been the households in Kathmandu and 34% of households in marginalisation of the urban poor. Currently, the percentage Lalitpur to be served by sewerage system. More than 2/ of Kathmandu's residents whose incomes were below the 3 the capacity of the existing sewerage system is poverty line was estimated at 12-15% of the population estimated to have been lost due to siltation. Sewage from (Lumanti eta!, 2000). The urban poor lived either in slums, the network is discharged directly into the rivers. The squatter settlements or rental accommodations. The slums, stabilization ponds at Sundarighat and Kodku, designed which were legal establishments, were found to be generally to treat the sewage from Kathmandu and Patan, were inhabited by low caste people whereas the squatter never brought into operation. settlements were more heterogeneous (Lumanti, 2000). Other low-income groups such as day laborers, hawkers Drainage problems are increasing in the city mainly and unskilled or semi-skilled factory workers tended to live because of developments in low-lying areas, destruction in rented rooms. or blockage of natural drainage channels and increased run-off from more paved areas. About 25% ofhouseholds Urbanization had resulted in escalating land prices, in Greater Kathmandu reported flooding problems. building costs and rentals, putting land and housing beyond the reach of the urban poor. As many of the old The expansion and improvement of infrastructure houses in the city core area which had been providing services has always remained far behind the physical sub-standard but cheap rental housing were falling into expansion of the city, resulting in inadequate or even disrepair or were being renovated and converted to total absence of services. Infrastructure development is commercial use, many of the displaced people were a major tool to guide urban expansion. However, due to forced to squat on public land and buildings. About 67% lack of integration of services based on a rational land of the estimated 18000 squatter population had built use plan, backed by institutional capacity for settlements on previously vacant marginal public land, implementation, as well as poor coordination among the especially along the river banks, while 25% of them were concerned agencies, infrastructure has tended to follow believed to be occupying public buildings, mostly public rather than guide developments. The concept of shelters around temples or riverbanks (Lumanti et al, privatization of services as well as relating service charge 2000). The squatter settlements which numbered 17 to quality of service has also not been applied, resulting communities in 1985 had grown to 65 settlement areas in inability to recover development costs. For a more in 2000, most of which were located in Kathmandu detailed account refer section on municipal services. Metropolitan City. There have been very little efforts in the past to provide low-income housing to accommodate such people. The Kathmandu-Lalitpur Structure Plan had 1.3.2.8 Transportation estimated there were about 1480 ha. of guthi or trust land in the valley, much of it within or close to the towns, In 1998, there was a total of 612 km. of urban roads in some of which it had suggested using for low income the Valley, inclusive of 431 km. in Kathmandu, 175 km. housing and urban open space. Whereas, the current 25 CITY DIAGNOSTIC REPORT estimate of the squatters does not appear large in Development Plan was prepared in 1973. This plan comparison to other neighboring cities of the SAARC consisted of a coloured map but without backing data region, this is a growing phenomenon which needs to and documents. The 1973 plan was further elaborated be addressed timely before it reaches alarming in the form of detailed land use plans and accompanying proportions. For further details refer chapter on housing regulatory measures to prepare the Kathmandu Valley and squatter settlements. Town Development Plan 1976 which was the first legally adopted planning document for Kathmandu and Lalitpur. The 1976 Plan comprised of a series of policy documents 1.3.3 The City Development Plans approved at different times by the Cabinet. Although the series of documents appeared as an incoherent 1.3.3.1 The Physical Development Plan for method of representing integrated urban plans and the Kathmandu Valley policies for the city, they were attempts to fill in the shortcomings in the plans during later periods. As the The Physical Development Plan for the Kathmandu city was still at an early stage of development, the 1976 Valley was prepared by the Department of Housing, Plan encompassed mainly the Greater Kathmandu area Building and Physical Planning in 1969 with technical lying within the ring road. The Plan's regulatory assistance from the UN. It was the first study to introduce functions were, however, limited to building bulk the concept of regional development and undertake a control. It had demarcated urban areas into various zones comprehensive study of the Valley. The Valley was but these had not been translated into cadastral survey considered as a single planning unit and a land use plan maps, which were the legal documents for land was proposed for Kathmandu-Lalitpur for the next 20- transaction and sub-division. This led to confusion 30 years. One of the alternative regional approaches was regarding zone boundaries. Without specific zoning the development of Bhaktapur as a secondary urban node ordinances to precisely specify the nature, type and and revitalization through dispersal of services and intensity of activities, land uses often tended to be facilities ofthe outlying settlements of the Valley. conflicting and incompatible. Urban development often occurred without the attending infrastructure services At the time of the study the city was confined to the since plans or standards for infrastructure services did highlands between the Vishnumati River and the Dhobi not exist. Despite its many shortcomings, the 1976 Plan Khola. As the plan proposed to preserve valuable still remains the statutory plan for Kathmandu and agricultural land of the Valley, priority was given towards Lalitpur. absorbing much of the population growth through densification within the existing peripheral urban areas and accommodating future growth in the urban expansion 1.3.3.3 Kathmandu Valley Physical areas identified on the highlands to the west of the Development Concept, 1984 Vishnumati River. No new residential developments were proposed east of the Dhobi Khola or beyond Bansbari to After 1981, urbanization spread fmther to the tar lands the north. Zoning and infrastructure development were at the city peripheries along the arterial roads such as recommended to be used to direct and encourage growth Bansbari, Bouddha, Koteshwore and Kalanki-Thankot towards the designated areas. The historic city core was in Kathmandu, Saibhu-Bhainsepati and Sunakothi in designated as special preservation zone. Despite the Lalitpur and along the Kathmandu-Bhaktapur transport opportune moment to operationalize the Plan and regulate corridor. Probably, recognizing the need to accommodate urban growth in a planned manner while the city was still the growing urban population in compact planned in its early stage of development, the Government did not settlements instead of allowing unplanned urban sprawl formally adopt the Plan. beyond the city limits and to overcome some of the shortcomings of the earlier Plan, the Kathmandu Valley Physical Development Concept, 1984, attempted to 1.3.3.2 The Kathmandu Valley Town revise the 1976 Plan and introduce zoning regulations. Development Plan Its main goal was to develop Kathmandu into an important center of administration, trade and tourism. It Drawing heavily from the 1969 Plan and after revising proposed urban expansion to be confined to the it to incorporate the proposed ring road around physically feasible areas within Greater Kathmandu and Kathmandu-Lalitpur city, the Kathmandu Valley Physical aimed to develop new planned settlements at Thankot- 26 URBAN PLANNING Mahadev, Chaulakhel, Saibhu-Bhainsepati, Champi, land developments to be restricted, the study proposed Idolmatatitar (on the way to Lubhu), Dibyeshwori compensation at fair market price to the landowners for (Lokanthali and areas west of Thimi) etc. The zoning their land or for the loss of development rights. It proposal still remained vague and difficult to implement. advocated flexible land use zoning which could easily The Plan was not officially endorsed and therefore could acc01mnodate developments dictated by market forces not be implemented. and economic trends but which would preclude developments harmful to the society or environment. It also recommended densification for more efficient 1.3.3.4 Kathmandu-Lalitpur Structure Plan infrastructure servicing. As it had accepted the developments already occurring in the flood plains, it During the period of hectic growth during the 70s and proposed restriction only on areas actually prone to 80s, two plans were prepared for the Greater Kathmandu flooding and to release all other areas for development. Area, the Kathmandu-Lalitpur Structure Plan (1987) and The Infrastructure Assessment Report ofKathmandu and the Kathmandu Valley Urban Development Plans and Lalitpur Nagar Panchayats prepared by the Management Programs (1991 ). Technical assistance for the former Support for Town Panchayats (1988) had estimated was provided by UNDP and the World Bank while the actual areas prone to flooding or having severe drainage latter was supported by the Asian Development Bank. problems as 232 ha. in Kathmandu and 89 ha. in Lalitpur The 1987 Plan recommended consolidation of urban or about 6 percent of the urban areas. To enable servicing areas and protection of fertile agricultural lands and river of these low lying areas the Plan proposed the flood plains. It called for the preparation of a revised construction of trunk sewers along the river banks with land use plan, detailed area plans, zoning regulations a treatment center located beyond the Chobar Gorge. and infrastructure guidelines and standards. The Plan The study suggested developing the areas within the ring was not officially approved and could not be road as residential areas and developing certain areas implemented. beyond the ring road for wholesale and industrial uses. New large or polluting industries were to be prohibited from locating within the valley. To release land from Ll3.5 Kathmandu Valley Urban unproductive urban use, it recommended relocation of Development Plans and Programs existing institutional uses such as the army, jail, local and branch offices. It also proposed the development of The Kathmandu Valley Urban Development Plans and a new central business district encompassing areas of Programs had the goal of developing Kathmandu Valley Darbar Marg, Jamal, Kamaladi, Bag Bazaar and Putali as a government center and as a center of culture, tourism Sadak to relieve pressure of business and commercial and historic preservation. The 1991 Plan recognized the activities from the city core. Unfortunately, neither the limited ability of the Government to intervene in the 1987 nor the 1991 plans were officially endorsed. development process and thought it prudent to direct Nonetheless, many of the strategic recommendations of and regulate prevailing growth trends, instead of opting the Kathmandu Valley Urban Development Plans and for other strategic options such a satellite towns or Programs continue to remain relevant. growth corridors. It proposed to link as well as control urban growth through planned infrastructure development. It accepted the development of flood plains 1.3.3.6 Revised By-laws for Greater close to the city and proposed to preserve well-irrigated Kathmandu prime agricultural land outside the city limits, mainly to the south east of the Valley. In view of the ineffectiveness of the statutory plan in regulating urbanization in a planned manner and the The 1991 Plan had identified lack of coordinated plans, constant failure to get the revised city development plans programs and resources as one of the main constraints approved by the government, the Kathmandu Valley to planned development. It had also determined that the Town Development Committee decided to bring about people's ability and willingness to pay for infrastructure greater regulatory control on building activities through services was very low. Without infringing on the people's the revision of the building by-laws of Greater right to develop their land, it recommended indirect Kathmandu in 1994. The jurisdictional area was once control of land use by controlling the provision of again limited by the legal plan to the municipal infrastructure. But whenever land had to be acquired or boundaries of Kathmandu and Lalitpur cities. Provisions 27 ;, v' ,)• ,' DJ;t>,GNOSTI.C: REPORT were made in the by-laws to restrict development on Department of Housing and Urban Development, also land without road access or having an area of less than simultaneously reorganized as the Department of Urban two and ahalfannas (approximately 855 sq.ft). In order Development and Building Construction, is in the to encourage densification and vertical growth in areas process of preparing a 20 year strategic plan for the entire other than the historic zones, building height controls valley. The Plan is expected to provide a broad were replaced by floor area ratio (FAR) controls. Planned framework to the municipalities and VDCs for the area development was encouraged with mandatory preparation of detailed land use plans and local area provisions for open spaces. A revised land use map and plans. The vision of the Plan has been stated as land use regulations were also provided as attachments developing Kathmandu Valley into a cultural, tourism but these served only as a guideline rather than and capital region with a vibrant economy, geared to mandatory provisions. The new by-laws had the potential compete with other regional cities. This regional role to encourage densification and concentrated for the Valley had also been forwarded earlier by Joshi developments at selected locations, however, inability (Joshi 1997). The Plan is still in the draft stage. Some of to upgrade and expand infrastructure, relatively low FAR the policies forwarded are densification and in-fill and lack of special incentives for planned area development instead of uncontrolled sprawl, provision developments failed to overturn the prevailing pattern of infrastructure to guide development of desired areas, of low density urban sprawl. high density development nodes in major road intersections along the ring road, promotion of mixed land use within the city and location of industrial 1.3.3. 7 Regulating Growth: Kathmandu activities to the peripheral areas. The Plan has also called Valley for broad regional policies aimed at economic deconcentration, urban containment and regional In 1995 IUCN undertook a study of the Kathmandu planning approach to manage urban growth of the Valley. Valley with a view to provide policies for regulating the unplanned urban sprawl and protecting forest reserves, prime agricultural land, open spaces, cultural and historic 1.3.3.9 Nepal Urban Sector Strategy sites, river banks and environmentally fragile areas. It recommended the preparation of a valley-wide land use The Nepal Urban Sector Strategy, which is in the final plan along with the implementation of an integrated stage of preparation, is being prepared by DHUD with infrastructure development program. To relieve pressure technical assistance from ADB. The study has tended from the core areas of Greater Kathmandu, it suggested to focus more on strategies and policies applicable to de-concentrating development activities to the peripheral the overall urban sector ofthe country and has specified areas. It recommended private sector involvement in only a few policies for the Kathmandu Valley. The draft planned area development and housing and proposed document has specified heritage and tourism as strategic using guthi land for this purpose. It proposed the focus areas for the Kathmandu Valley and has proposed planning institutions to be strengthened and simple basic preparing a comprehensive land use plan for the Valley by-laws to be prepared and implemented in all the non- with the participation of all stakeholders. Other policies municipal areas. Despite its many useful are prohibition on polluting industries and control on recommendations, the study was not officially endorsed urban growth. by the Government. 1.3.3.1 0 Institutional Strengthening of 1.3.3.8 Development Plan 2020 for the Kathmandu Metropolitan City Project Kathmandu Valley Since September 1999, the Asian Development Bank The current state of urbanization of the Valley and the has been assisting KMC to implement the Institutional limitations imposed by the defined jurisdictional areas Strengthening ofKMC Project. The Project's objective of the different local bodies had necessitated a valley- is to improve KMC's overall organizational competence, wide planning exercise. The Kathmandu Valley Town increase its effectiveness in mobilizing and managing Development Committee under the Ministry of Housing its fmancial resources, and improve its capacity to deliver and Physical Planning, recently reorganized as the urban services. It is expected that the institutional Ministry of Physical Planning and Works, and the strengthening of KMC as proposed by the Project will .· 28 URBAN PLANNING allow the city to gradually assume responsibilities and transportation. As a consequence, the city has grown in functions as a local govenunent as empowered by the a haphazard manner with little consideration for the Local :Self Governance Act. The Project duration is till official plan. end 2000. Giv~tn the limited resources of the government and KMC to undertake large urban renewal and redevelopment L3.3,ll The Kathmandu Valley Mapping programs, much of the urban development of the past Program must be taken as fait accompli. However, considering the ineffectiveness ofthe 1976 Plan to ensure planned physical The Commission of European Communities (CEC) is growth of the city, KMC needs to urgently prepare and providing financial and technical assistance to KMC to obtain approval for the implementation of a revised land implement the Kathmandu Valley Mapping Program. use plan for the city, together with the attending zoning The Project commenced in May 1999 and is expected regulations, detailed area plans, infrastructure and to continue till April2003. The Project aims to improve transportation improvement programs. The plan would the planning and implementation capabilities of KMC be guided by the broader valley-wide plans but would be by establishing an Information Systems Unit using more responsive to the specific issues and requirements Geographic Information System (GIS) and Data Based of the city. New large-scale developments would probably Management System. It will also help to prepare be difficult to initiate within the existing municipal area. integrated action plans, a strategic plan for Kathmandu, Such developments would have to occur in areas targeted city center upgrading action plan, city core heritage for future urban expansion beyond municipal boundaries. action plan and solid waste management action plan. Within the city area, improvements would have to be made phase-wise and on a smaller scale. Aerial photographs of the Valley are expected to be taken shmily which will be used to update the city's GIS and DBMS. The Project is currently in the process of 1.3A land Use . nmg preparing an integrated action plan for the city to identifY ward-level priority projects for incorporation in the 13A.l Land Uses in Kathmandu Valley forthcoming annual programs of the city. Once the Project completes its ongoing data collection and Agriculture use has been the predominant land use in analysis process, it will be in a strong position to review the Kathmandu Valley, followed by forests and and revise the CDS being prepared under the current grasslands. Over the past decades urbanization has KMC/World Bank initiative. encroached upon "tar" agricultural land and more recently on more fertile agricultural land along the river flood plains closer to the developed areas of the city. It 13.3,12 Outcome ofPast Planning Exercises has also spilled over into adjoining VDCs converting agriculture land to urban use. Agriculture land of the Despite the continuous production of revised urban Valley had reduced from 41,950 ha. in 1984 to 33,308 development plans for Greater Kathmandu, it is rather Table 6: Kathmandu Valley land Utilization unfortunate that government approval to implement them 1984 1 1994 1 2000 2 was not forthcoming and the land Use Area (ha) % Area(ha) % Area(ha) % Urban 3096 4.8 8378 13.1 9193 3 13.8 statutory plan for KMC Agriculture 40,950 64 33,308 52.1 27,570 41.4 continues to be the 1976 forest/Grassland 19,439 30.4 20,945 32.7 20,677 31.0 Kathmandu Valley River 479 0.8 583 0.9 496 0.7 Development Plan. The 1976 Others (aiq~ort/~ond etc.) NA 336 0.5 310 4 0.5 Plan is not only out of date, it Abandoned land NA 414 0.7 NA Rural Settlement5 NA NA 8404 12.6 lacks clear zoning regulations Total 63,964 100 63964 100 66,655 100 and demarcations and does not 1 Source: Regulating Growth~ K~1thnwndu \~dley; IUC::\: 1995. have any specific programs to 2 Source: Dmft Development Plan 2020 for Knthmnndu \'nllcy; J(\'TDC; 2000. J lncluclcs 2593 ha. of llC\\ residential dc\dopmcnt in \l)Cs \\'hich are mainly mban sprawl coordinate land development Cm·ers transportation only. Consists predominantly of tn1ditionnl \illage settlcmctJts. with infrastructure and 29 ha. in 1994 and 27,570 ha. in 2000. Urban land had Table 7: Kathmandu Metropolitan City land Use 1995 increased correspondingly from about 3096 ha. in 1984 to 8378 ha. in 1994 and 9198 ha. in 2000. land Use Area in ha. % Mixed residential/commercial 3273.6 64.5 Because of differences in the calculation of the total Commercial/industrial 82.6 1.6 area of the Valley, the increase in the percentage of Institutional 239.2 4.7 Transport (airport/bus terminal) 166.3 3.3 land under urban use between 1994 and 2000 does not Others (vacant/open land, appear very significant. However, there has been a real VIP area, squatter) 1314.3 25.9 increase in urban land use by about 820 ha. during the Total 5076 100 period. Halcrow Fox et al had estimated that the net Source: Cities Dnta Book, 1\J\!C. 2000. area under urban development would be about 10,128 ha. in 2010 and 14,332 in 2015. Considering the fact area within the city limits had already been developed, that the study had quite significantly underestimated with residential land forming the predominant use. the future population of the Valley, it could be assumed Institutional use also covered quite a significant amount that the estimated urban land use during the projected of land. The KVTDC study had identified about 150 ha periods would be much higher. Similarly, ICIMOD had of urban land under military occupation. If lower order estimated that if current trends were allowed to government institutions could be decentralized and the continue, additional urban land requirement between central jail, military and police units relocated to outlying 1991-2001 would be about 5286 ha, an area almost areas or outside the Valley, substantial area of! and could equal to the existing urban area. To counteract such be released for crucial urban developments such as low trends ICIMOD had recommended enhanced cost housing, apmiments, recreational areas etc. Only densification and expansion of urban area with about one-fourth of the city appeared to remain concomitant provision of adequate infrastructure and undeveloped. lfhowever, public open spaces, VIP areas institutional/recreational and open spaces. and squatter settlements were deducted, the actual open undeveloped space would be much lower. These The Development Plan 2020 (KVTDC) had estimated probably comprise mostly areas within the city still that if a gross density of 300 persons per hectare could without proper access and areas more difficult to develop be achieved within the existing urban areas, the demand along the river flood plains. for urban land in the next 20 years would be slightly over 3600 hectares. However, considering the difficulty Comparing the current development of KMC with the in effecting public perception about apartment housing land use proposal of 1984, which is a slight revision of and overturning the current trend of owner occupied the 1976 Plan, it is interesting to note that developments single housing, demand for urban land will probably be have far exceeded the provisions of the Plan, rendering much higher than envisaged. it ineffective and out of date. The Plan proposed to retain low density residential developments in the areas developed since the 70s such as Tahachal, Kalimati, 1.3.4.2 Land Uses In Kathmandu Baneshwore, Lazimpat, Maharajgunj, Bansbari, Metropolitan City Chabahil, Bouddha, areas south of core Patan city etc. It proposed to retain agricultural use along the Bagmati A study undertaken by MSUD in 1989 had determined flood plain from Pashupati to the Manohara confluence, that only 62% of Kathmandu municipal area and 52% the Bagmati flood plain at Sankhamul, northern reaches of Lalitpur municipal area had been built up. Quite a of the Vishnumati and Dhabi Khola flood plains and significant proportion of open land within the city the Bagmati flood plain west of San epa. The proposed probably comprised of pockets of undeveloped land low density areas-density had not been defined but was restricted from being developed due to lack of access. assumed to be less than 100 ppha- have turned into This can be surmised from the fact that urban expansion medium density areas with pockets of relatively higher had already been occurring in the peripheral areas even density development. Similarly, the river flood plains while chunks of undeveloped areas was available closer have been mostly built over. Incidentally, the areas to the city center. targeted for accelerated urban development after 1991 by the Kathmandu Valley Urban Development Plans and A more recent study by Kathmandu municipality Programs were the same flood plain areas proposed by indicated that during the intervening period much of the the 1984 Plan to be preserved and the proposed low- .30 density areas south of Patan city. Whereas, the total use regulations, lack of coordination between the residential/commercial area proposed for the Greater planning agencies and the Department oflndustry which Kathmandu area was 4204 ha., 3273 ha. had already issued industrial licenses as well as the tendency of been taken up for residential purposes in Kathmandu owners to set up industries in their own land, industries alone in 1995. Land designated for uses other than came to be located arbitrarily, without due consideration residential had already been converted to residential use. for surrounding uses or infrastructure capacity. As a In other words, the Plan which continues to serve as the consequence location of many industries resulted in guiding document for urban planning of Greater incompatible land uses and environmental distress. Kathmandu does no': incorporate the current changed When building permits became more difficult to obtain situation and is in need of urgent revision. for industries within the urban areas, the industries started locating beyond the ring road to circumvent the regulatory process. Although today industries can be 1.3,4.3 Land Uses for Industries found scattered all around the ring road, they are more concentrated along the highways leading towards Although Greater Kathmandu has served as the major Thankot and Bhaktapur. administrative, economic and service center of the country, because of environmental considerations, there The Industrial Promotion Board had also attempted to appears to be limits to the extent of industrial activities regulate industrialization in the Valley. The category A which could be allowed in the Valley. This has been industries which were considered to be larger and more well recognized by all the previous plans and studies as polluting were not allowed in the Valley although well as the report of the committee which reviewed the existing ones were permitted to continue to operate but 1991 plan where it had been recommended that large with restriction on expansion of activities. Less polluting industries should be prohibited from locating inside the category B industries were permitted in the Valley but Valley. The studies had suggested only small to medium they were required to be located beyond at least 5 km. scale industries, which would not adversely effect the from any settlement with a population in excess of 1000. environment, to be allowed in the Valley, preferably in This policy appeared impractical, as the industries would well-defined favorable locations for efficient be forced out to the Valley rim where infrastructure infrastructure servicing. Meanwhile, recognizing the servicing would be prohibitive. Halcrow Fox et al importance of a thriving economy to sustain the city, suggested locating these industries in areas closer to the the KVTDC plan has proposed to establish high-tech city exclusively zoned for industries. One of the areas it industries in Kathmandu as a substitute for the larger had proposed for establishing a new industrial estate was manufacturing industries which would be relocated the then undeveloped agricultural land beyond the ring outside the Valley. road between the Bagmati river and Dhobighat. The area has witnessed increased residential development in Earlier, industrial estates had been created in Kathmandu, recent years and probably would not be a suitable area Lalitpur and Bhaktapur to accommodate industrial today. establishments. However, because of lack of strict land 1.3.4.4 Prospects and Constraints for Future Land Use Planning in KMC Because of the absence of clear zoning regulations in the statutory plan for KMC, only certain aspects of building bulk were regulated with no control over the use of the buildings. This had resulted in mixed land use development which was generally acceptable, except in certain instances, where incompatible uses were introduced but no legal basis existed to prevent their establishment. In the future it would be CITY DIAGNOSTIC REPORT advisable to maintain simplicity and to specify minimum of the city and radially along the major arterial roads in number of land use zones. It would also be quite an unplanned manner. reasonable to continue with the past trends of mixed land uses, however, in the future it would be necessary One of the difficulties of regulating conversion of to identify those uses which would be considered agricultural land to urban use is the existing practice of incompatible and would be prohibited in the specified designating all land uses, including urban land, zone. Existing incompatible uses would have to be according to its agricultural productivity rather than its gradually phased out or relocated to zones where such actual use. To provide legal distinction between urban uses were permitted. Similarly, industrial enterprises and agriculture land, there is a need for the land would have to operate in industrial estates or areas administration and land survey offices to specifically designated for industrial purposes, located in the have a separate land use designation for land which is outskirts of the city. As the city currently does not possess under urban use or is intended to be developed as urban large undeveloped land, it would have to either land in the future. Regulations could then be introduced coordinate such programs with the adjacent VDCs and to permit urban development only in areas designated municipalities or expand its jurisdictional area. for urban use and any future conversion of agriculture land would be contingent upon its approval through a Given the fact that much of KMC is already developed comprehensive planning exercise justifying such and residential use comprises the largest land use in the changes. city, substantial changes in land use would be difficult to envision in the future. Almost one-fourth of the city's land use in 1995 comprised vacant/open land and land 1.4. PlANNING LEG~SlATIONS taken over by VIP area, squatter settlements etc. In IN THE DEVELOPMENT OF KMC reality, the city suffers from an acute deficiency of open recreational areas. Currently, large areas within the city 1.4.1 Town Development Committee are being occupied by the military and the police or by Act 2019 government institutions that have little central functions. If those units of these institutions, which do not Various legislations were enacted at different times to specifically require an urban setting, are relocated to implement urban development programs. The Town suitable locations outside the city, their land could greatly Development Committee Act 2019 (1963) was one of help to fulfill the shortage of space requirements for the first Acts to establish Town Development recreational purposes and low cost housing. In addition, Committees (TDC) which were authorized to initiate all guthi land within KMC needs to be identified and urban development programs. TDCs were established those that are no longer serving useful purpose could by HMG for any town or administrative unit whenever also be used to provide vital urban services. In view of the need arose for such a committee. As none of the the regular seismic activities and the severe shortage of towns were technically and administratively capable of open space faced by the city, it is imperative to plan for preparing and implementing physical development and develop open areas within easy access of the city plans, they were assisted in this work by the Department dwellers. If need be, the city may even have to acquire ofl-Iousing, Building and Physical Planning (DHBPP), private land to maintain the required spatial distribution only after the Department itself had improved its of open spaces as per the norms. planning capabilities in the early 70s. One of the major concerns of all the previous plans has been the continuous conversion of agricultural land for 1.4.2 Town Development Plan urban use. This, however, is an inevitable part of the Implementation Act 2029 urbanization process and cannot be avoided if the city is to grow both physically and economically. From the The Town Development Plan Implementation Act 2029 planning context, rather than restrict any further (1973) was enacted with the primary aim of establishing conversion of agricultural land, it would be more regional centres in each of the development regions of appropriate to identify agricultural land which would the country. The physical development plans were be most suitable for conversion to urban use and direct prepared by DHBPP and Town Planning Implementation future expansion only to such areas. Currently, urban Committees (TPIC) were formed to implement the growth has encroached on agriculture land on the fringes plans. The Kathmandu Valley Development Plan 1976 32 URBAN PLANNING was prepared and the Kathmandu Valley Town and to the District Development Committees, earlier Development Committee (KVTDC) and TPICs for the known as District Panchayats through the Decentralization three towns of the Valley were established as per this Act. Act 2039 (1982). Where Town Development Committees The 1963 and 1973 Acts were later repealed by the Town already existed, the new Acts created overlapping Development Act 2045 (1988) but the TDCs and TPICs authorities and duplication of functions among the were permitted to function until new committees could agencies. In reality, none of the towns or DDCs were be formed as per the new Act. The Kathmandu Valley capable of preparing comprehensive urban development Development Authority proposed by the 2045 Act to plans on their own and therefore most of their development replace KVTDC and the TPICs could not be realized and efforts had been limited to implementing local projects as a result the KVTDC and the three TPlCs continue to and infrastructure on a piecemeal basis. The function under the 1973 Act as per this special provision. Decentralization Act has been annulled by the Local Self This less than satisfactory situation has hampered the role Governance Act 1999, which authorizes the DDCs to and authority of KVTDC and the TPICs. It has been develop settlements and markets in rural areas. infonned that a new Act is under consideration which proposes to merge KVTDC with the Kathmandu Valley Town Development Council and upgrade its role to that 1.4.5 Town Development Ad 2045 of an organization which will prepare valley-wide planning and development guidelines and monitor The Town Development Act 2045 (1988) empowered the compliance by the individual local governments. It is also reGrganized TDCs to prepare and implement land use plans. learnt that the new Act proposes to abolish the TPICs The Act also provided a legal basis for the TDCs to and transfer the responsibility of preparing land use plans intervene in the land development process through guided and regulations and monitoring their implementation to land development, land pooling and sites and services the respective municipalities. programs. In the case of Kathmandu, the KVTDC and the TPICs continued to function under a special provision of the previous Act and was responsible for physical planning 1.4.3 land Acquisition Ad 2034 of the city. In the absence of adequate manpower and resources most of the municipalities, including KMC, were The Land Acquisition Act 2034 (1977) permitted the unable to fully exercise the authority invested by the Act. government to acquire private land for development It was only in 1994 that building permit functions were purposes by Eminent Domain. However, there was transferred from Kathmandu TPIC to KMC. Monitoring considerable public resistance to land acquisition under of adherence to building by-laws is the joint responsibility this Act because of the lengthy process involved and ofKMC and TPIC but this arrangement has not been very the unrealistically low compensation provided by the effective as each agency tends to assume the other agency government. Although municipalities had the right to will take up the responsibility. KMC has not as yet taken acquire, own and dispose of land, they did not have the on the larger planning functions as provided for in the Act. right to acquire land by Eminent Domain (Culpin et al The Town Development Act has been repealed by the Local 1991). They had to negotiate for the land required for SelfGovemance Act 1999, however, KVTDC and TPIC development purposes. Only after they had failed could will continue to function until KMC fully assumes their they request the Govemment to acquire the designated responsibilities under the new Act. land through Eminent Domain. Land acquisition was then carried out by the CDO on their behalf. The Local Self Governance Act 1998 also makes provision for 1.4.6 Kathmandu Valley Development municipalities to acquire land through negotiations and Authority (KVDA) Ad 2045 payment of fair compensation but does not give them the right to acquire land by Eminent Domain. The KVDA Act 2045 proposed the establishment of a development authority, similar to those of the large metropolitan cities oflndia, which had jurisdiction over all development functions within the entire Kathmandu 1.4.4 Acts for local Government Units Valley. KVDA to be headed by a development commissioner was unique in that it had authority over The authority to prepare and implement comprehensive more than one district. It was responsible for preparing local development plans was given to the municipalities physical development plans and implementing them after through an amendment to the Town Panchayat Act ( 19 82) approval from HMG as well as providing the people of ·CIT'(~ DIAGNOSTIC .• REPORT the Valley with basic services. Unfortunately the Act Act appears to have adequately empowered the was never brought into effect. municipalities to raise taxes and implement urban development programs. However, the Act does not specifically address the role or transgression of the 1.4.7 Municipality Act 2048 responsibilities and jurisdiction of other agencies that currently own and continue to operate and maintain The Municipality Act 2048 (1991) had given urban services which fall within the purview of KMC individual municipalities the authority to adopt and as per the Act. The Act is vague about the necessity, implement plans, implying that it could formulate and time frame or modality of transfer of urban services to implement urban development plans on its own. KMC which tends to create confusion regarding KMC's Previous Acts had bestowed these functions to authority to coordinate and regulate development KVTDC in Kathmandu and to TDCs in other activities within its area. The larger municipalities such municipalities. The Municipality Act was not clear as Kathmandu and the four sub-metropolises which on how to coordinate or apportion responsibilities possess greater financial and human resources have among the agencies with overlapping authorities. This relatively better capabilities to incrementally assume confusion in the Act did not have to face legal scrutiny such responsibilities but smaller municipalities and as none of the municipalities were capable of VDCs will have to continue to rely on the Government independently undertaking urban planning and for technical and financial support in the foreseeable infrastructure development functions. One of the future. Currently, without technical and organizational negative impacts of this Act had been the erection of strengthening of the various departments, even KMC, building structures in valuable public land and open the foremost city of the country, lacks the capability to spaces by the municipalities for commercial purposes, independently prepare and implement city development disregardful of plans or planning norms (IUCN, plans as envisioned in the LSG Act. 1995). This Act has been annulled by the Local Self Governance Act which gives municipalities similar rights to prepare their own town development plans. 1.4.1 0 Prospects and limitations of the legislations for Urban Development of KMC 1.4.8 DDC and VDC Act 2048 Currently, urban planning of KMC is governed by The DOC and VDC Acts 2048 empowered these local several Acts, which empower different agencies to bodies to prepare physical development plans for sub- undertake similar planning activities. This duplication urban areas and individual villages respectively. of work and overlapping responsibilities has tended to Resource constraints and technical limitations had lead to confusion and shifting of responsibilities and virtually incapacitated these local bodies from eventually to inaction. KVTDC is the agency directly undertaking any planning works. Nevertheless, as the involved in the planning of Kathmandu but since 1988 DOC's jurisdiction extended to the municipalities in the it exists and functions not on the basis of a strong and district, conflicts sometimes arose between the DOC and separate Act but on a special provision that continues the municipalities, especially in the use of natural to revive an Act that had already been repealed earlier. resources and public lands. These Acts have been The recent moves to create a new Act to upgrade repealed by the Local Self Governance Act. KVTDC and increase its planning jurisdiction to cover the entire valley and concurrently abolish the TPICs appears to be an attempt to assign separate roles for 1.4.9 local Self-Governance Act 2055 KVTDC and the municipalities of the valley. As per the proposed new arrangement KVTDC will prepare The Local Self-Governance Act 2055 (!999) has strategic plans to guide developments in the valley specified that the preparation and implementation of while the task of preparing detailed land-use plans, area physical development plans is a mandatory function of plans, zoning regulations etc. will be the responsibility the municipalities. In addition, the municipalities have of the individual municipalities. This arrangement, if to implement housing programs, install and maintain realized, will allow KMC to be directly involved and infrastructure services, issue and monitor building be primarily responsible for the planning activities of permits and develop open and recreational spaces. The the city. 34 URBAN PLANNJNG In the past, land acquisition for development purposes under the Ministry of Works and Transport. As low through eminent domain had been very unpopular priority was given by the Ministry to housing and urban because· -of the unrealistically low compensation planning, a separate Ministry of Housing and Physical provided. In the future, as provided for by the Local Planning was established in 1987 and the department Self Governance Act, it would appear appropriate to was split into the Department of Housing and Urban negotiate for additional land requirements rather than Development (DHUD) and the Department of Buildings resort to land acquisition through Eminent Domain with DHUD primarily responsible for implementing the except in very critical situations and even then policies and programs of the ministry related to the urban compensation at fair market value would have to be sector. DHUD is supported at the regional level by provided. Where restrictions are expected to be offices of the Regional Directorates and at the district imposed on developments, which unfairly affect the level by District Offices. As none of the municipalities livelihood of the landowners, compensation for loss were technically capable of preparing and implementing of development rights would have to be provided. urban development plans on their own, DHUD and the· Intervention in the land development process through Regional Directorates were and continue to be involved land pooling and guided land development, as in assisting the municipalities in this task. Kathmandu provided for by the Act, appears to be the suitable Valley Town Development Committee is currently and acceptable form of developing pockets of responsible for the physical development planning of undeveloped land within the city which needs to be Kathmandu and Lalitpur Cities. Very recently the continued in the future. Ministry has been reorganized as the Ministry ofPhysical Planning and Works and the two departments under it The Local Self Governance Act has given KMC have been amalgamated into the Department of Urban ample scope to develop detailed land use plans and Development and Building Construction. The subsidiary planning regulations for the city. The Act does not, units under the Department continue to function as however, repeal the provisions of earlier Acts that before under the unified Department. cause duplication of works and overlapping responsibilities with other agencies. Therefore, a system needs to be developed whereby coordiriation 1.5.2 Ministry of local Development is ensured in the works of all the agencies that operate within the municipality and their work is The Ministry of Local Development is responsible for carried out as per KMC's plans and programs. Close the management of local governments at the district, coordination also needs to be maintained with municipal and village level. The Ministry designates KVTDC so that the city's plans and programs are the chief executive officers and other key officials consistent with the overall plans of the Valley. Land who are responsible for the overall executive to be developed as urban land needs to be categorized functions of the municipalities, inclusive of all as such and not in the agrarian context of land development programs. Although the designated productivity and registration and sub-division of officials are accountable to the respective mayors, urban land needs to conform to planning norms of since the Ministry is their parent organization where the city. Issuance of industrial permits also needs to they eventually hope to further their careers, often be coordinated with KMC's plans. Before proceeding their actions tend to favor the Ministry rather than to exercise the rights given by the LSG Act, however, the municipalities they are working for. This KMC needs to strengthen and upgrade the units sometimes tends to create administrative bottlenecks responsible for the planning of the city. and works against the interests of the municipalities. The frequent changes of the key officials also adversely affect the continuity and effectiveness of 1.5. ORGAN;ZATIONS INVOLVED various municipal programs. The arrangement of ~1\l CITY DEVElOPMENT seconding staff to the municipalities may have been justified earlier when the municipalities were weak 1.5.1 Ministry of Physical Planning in funds and manpower. With the changing scenario and Works of municipalities assuming greater authority and responsibilities, there is a need for the creation of a Earlier urban planning was undertaken by the separate cadre ofmanagement staff to look after the Department ofHousing, Building and Physical Planning affairs of the municipalities. ,GJTX DIAONOSTIC REPORT 1.5.3 Kathmandu Valley Town the new organizational set-up will be given the reluctance Development Committee and Town of the central government agencies in the past to cede Planning Implementation Committees authority as well as revenue sources to the local governments. The Kathmandu Valley Town Development Committee (KVTDC) along with Town Planning Implementation Committees (TPIC) for Kathmandu, Lalitpur and 1.5.4 District Administration Office Bhaktapur were established under the Ministry of Works and Transport and the Department ofHousing, Building The District Administration Office under the Ministry and Physical Planning to implement the Kathmandu of Home is the agency responsible for law and security Valley Development Plan 1976. Unfortunately, the Plan in the district. Together with the municipalities, the office did not cover the entire Valley as suggested by the name is responsible for the protection of public open spaces of the organization, but was limited mainly to the area and public properties. Because the police is directly enclosed by the ring road. At the time of establishment controlled by the office, it provides the last resort action of KVTDC and the TPICs the municipalities of the in developmental control. Valley had very little technical and managerial capabilities and had little involvement in either plan preparation or implementation and monitoring of the 1.5.5 Kathmandu Metropolitan City plan. The Town Development Act 2045 repealed the Town Development Plan Implementation Act under The Mayor along with the Deputy Mayor, the Chief which KVTDC and TPICs were formed, however, since Executive Officer and the different departments under the Act to create the Kathmandu Valley Development the Kathmandu Metropolitan City Office are responsible Authority which was supposed to replace them could for the management of the Kathmandu Metropolitan not be officially enacted, the organizations were allowed City. The policies, programs and budgets of KMC are to continue to function under a special provision of the approved by the Metropolitan Council and Board prior Act. This has tended to constrain the functioning of the to their implementation. The City Planning Commission organizations. The TPIC has handed over the function is an independent advisory body which assists the mayor of issuing building permits to the Urban Development and the KMC Office in various aspects of urban planning Department ofKMC, otherwise the rest of the planning and management. The KMC Office is presently divided and monitoring responsibilities remains with KVTDC into twelve departments of which the Urban and TPIC. Development Department and the Public Works Department are most closely related to urban planning It had been informed that a proposal had recently been of the city. Coordination is weak among the departments forwarded to the Government recommending and the staffs also seem to. be deprived of continued Kathmandu Valley Town Development Committee to career development opportunities within the KMC, be strengthened and upgraded to the Kathmandu Valley which has affected their morale and motivation. As Town Development Council which would be primarily dedicated and motivated staffs are the key to the success responsible for preparing strategic plans and planning of city management, adequate incentives and career guidelines for the entire valley. The existing TPICs for development opportunities need to be provided within the three larger municipalities would be abolished and KMC organization. Refer chapter on institutional the authority and responsibility for preparing detailed development for further details on the organization and land use and local area plans for the cities, conforming functioning ofKMC. to the larger valley plan, as well their implementation and monitoring would be devolved to the individual municipalities. The Council is expected to coordinate 1.5.6 City Planning Commission of KMC and monitor and, if necessary, assist in the preparation of the detailed plans of the municipalities and VDCs of The City Planning Commission was set up as an advisory the Valley. The Council would also penalize body within KMC a few years ago along the lines of the municipalities whose plans contravened its planning National Planning Commission to plan, coordinate and guidelines. While at first glance the proposal appears to monitor the works of the different departments ofKMC. be quite practical, it remains to be seen how effective Given the lack of coordination among the departments URBAN .PLANNII\!G and their weak linkages and capabilities, the Planning Sections have remained more or less inactive, establishment of such a Commission appeared timely content to leave the responsibility of preparing and and justified. However, necessary cooperation from the implementing city development plans to the concerned Municipal Board and the departments is the key to the government line agencies. No significant work apart success in CPC functioning and any discrepancy in such from the land pooling at Naya Bazaar has been mechanism can create inefficiencies in the CPC. undertaken by UDD. KMC is currently in the process Ultimately, the KMC will be deprived of the many of building up a capable planning and information unit benefits of CPC. Currently, no other department exists under the Kathmandu Valley Mapping Program, but to fulfill the role of a think-tank as well as planning and there appears to be little coordination or consultation monitoring cell of KMC other than the CPC. between KVMP and UDD. UDD remains uncertain Unfortunately, CPC is not as active and influential as it about how the KVMP units will eventually be merged once used to be. with the Department. 1.5.7 Urban Development 1,5,8 Public Works Department of KMC Department of KMC The Public Works Department (PWD) is responsible for The Urban Development Department and the Public planning, implementation and maintenance of Works Department are the units closely related to urban infrastructure within KMC. However, apart from planning activities. The Urban Development Department managing some of the works completed by KMC in 1999 is divided into the Building Permit, Transportation under the Municipal Infrastructure Improvement Project Planning and the Urban Planning Sections. The and minor works undertaken in some of the wards, it responsibility for issuing building permits was has not been able to function properly because of transferred from the TPIC to KMC in 1994, following financial and manpower constraints. Much of the city's which it has become the major activity of the infrastructure are owned, managed and maintained by Department. There is, however, an overlapping of the concerned Government line agencies who rarely authority with TPIC regarding monitoring of consult KMC in planning and operational matters, except construction works to ensure compliance with the for Nepal Water Supply and Sewerage Department of approved plans and building by-laws. KMC often makes which the Kathmandu mayor happens to be the site inspections when construction has reached the damp chairman. Even if the government was willing to hand proofing height, to determine if the floor plans are as over the city infrastructure to KMC, PWD in its present per approved plans, but .its monitoring activities are state would not be able to take on the responsibility. It limited thereafter. After relinquishing the building permit would appear more prudent to take on the responsibility activity to KMC, the TPIC has also tended to remove only after the management capacity of PWD had been itself from much of the enforcement responsibilities. As adequately strengthened. a result building by-laws are often flouted. Provisions exist to stop or demolish construction which is For the planned growth of the city it is inevitable that unauthorized or which does not conform to the by-laws, there should be coordinated development of urban land, however, the means or the will to exercise such rights is infrastructure and transportation. The UDD and PWD are often weak. KMC's City Police also does not have the presently too weak to look after any of these functions, legal authority to exercise the powers ofthe civil police. let alone coordinate their future actions. There is some Therefore, if violators do not willfully rectifY or remove inter-departmental linkage between the two departments unauthorized works, the city has to seek the assistance of KMC, however, in the absence of concrete citywide ofthe CDO who would then mobilize the civil police to programs, their ability to coordinate and regulate urban take necessary action. The inability of KMC to take development in KMC is rather limited. timely actions against illegal constructions has tended to give the people the impression that the city's regulations can be easily compromised, resulting in the 1.5.9 Ward level Organizations of KMC proliferation of illegal constructions. The Ward Office is a key functional unit ofKMC and Meanwhile, in the absence of enough financial or the primary point of contact for citizens. Each ward manpower resources, the Transportation and the Urban has a committee which is headed by the Ward Cl"fY DIAGNOSTIC REPORT Chairman, elected from the ward. The wards are 1.5.11 Prospects and limitations of allocated small amount of funds by KMC with which KMCs Institutional Capacity to the wards initiate various local development works. Undertake Planning Functions Many wards have formed User Committees and neighborhood improvement committees known as "Tol The current organizational set-up ofKMC does not give Sudhar Samitis" which identify and participate in it the capability to independently take up the neighborhood improvement projects, many on an comprehensive planning functions of the city. However, equitable cost sharing basis. Earlier, subject to the with improvements in its finances, there is a possibility Board's approval of programs and availability of funds, for the city to strengthen and upgrade its entire each ward had been allocated a sum ofRs. 1.5 million organization. Although the City Planning Commission irrespective of area or ward population. In the future is not active at the moment, its role as a central planning, funding is expected to correspond to approved coordinating and monitoring unit ofKMC will become programs rather than on a uniform basis. The ongoing even more crucial when the city decides to take on the Integrated Action Planning under the Kathmandu responsibilities of preparing and implementing detailed Valley Mapping Project is expected to facilitate the city development plans. Therefore, there is an urgent identification of future ward level projects to be need to strengthen and reactivate CPC. implemented by the city. If properly mobilized, the wards could prove to be an effective medium through If the proposal to upgrade KVTDC and demobilize the which most of the local level projects could be TPICs is approved, KMC will be compelled to assume implemented. the responsibilities of preparing and implementing urban development plans for the city. The Urban Development Department and the Public Works Department ofKMC 1.5.1 0 Different Central and local will have to be strengthened with more qualified staff level Government Agencies Involved and their works will have to be closely coordinated. The in KMC Kathmandu Valley Mapping Program is currently in the process of improving the planning and implementation According to a recent study undertaken by the ADB capabilities of KMC and establishing an Information assisted ISKMC Project, apart from various NGOs Systems Unit using GIS and a data based management and private sector groups, there were more than 22 system. The Project has recruited technical experts who government ministries and departments which were, would be involved in the preparation of various strategic in some way or the other, currently involved in and action plans for the city. If after the termination of providing various services to the city, which as per the Project these trained manpower and the ISU could the Local Self Governance Act 1999 were the be assimilated into UDD, KMC's planning capabilities primary responsibility ofKMC. Despite the fact that could be greatly enhanced. almost all the city's infrastructure is presently owned and managed by the government line agencies, there Currently, the enforcement capabilities of KMC are is very little coordination among them. The agencies hampered by the fact that UDD doesn't have a separate normally operate according to their own priorities unit to oversee the regulatory aspects of planning. As a and agendas and sometimes have certain overlapping consequence violations of planning and building bye- functions. This often leads to duplication of works, laws are quite common. Commitment to initiate action incompatible actions and even to disputes among against the ongoing violations is also not strong. agencies. In the past the Kathmandu Valley Town Therefore, the establishment of such a unit, backed by Development Committee, chaired by the Minister of strong enforcement capabilities including equipment and Housing and Physical Planning and secretary level manpower, would go a long way in ensuring compliance representation froP1 the different ministries, was to prevalent regulations. A clear policy could also be established to ensure proper coordination between formulated to address past illegal constructions. the planning and other line agencies. Infrequent Whereas, demolition could be recommended for all meetings of the Committee and token representation constructions encroaching illegally on public land, such from the ministries failed to improve the situation. action for lesser infringements such as unauthorized 38 URBAN PLANNING constructions in privately owned land would result in As its long term goals, the Plan has proposed to develop unnecessary economic loss. A system could be Kathmandu Valley as a cultural and tourism center, introduced to impose fines for such construction at a increase urban-rural linkages and develop smaller urban rate higher than the current market value so as to centres to generate employment opportunities. In line discourage similar infringements in the future. Many with the national housing policy, it has advocated of the pending decisions on unauthorized constructions developing the housing sector by providing land and could thus be resolved through the regularization of physical infrastructure and affordable housing. these constructions. KMC could also benefit financially in this process. Some of the relevant objectives of the Plan are to promote planned urbanization by initiating integrated Various possibilities exist to mobilize ward-level physical and social infrastructure development; to organizations in city development activities. Past strengthen the urban sector's role as centres of national experience has shown that close public interaction and production and employment generation; to mobilize involvement is forthcoming in small ward-level projects resources from the private sector as well as the Town that have more tangible effects on the community. In Development Fund towards infrastruCture the future the city ,nust adopt a more decentralized development and affordable urban housing. The Plan approach and as far as possible carry out the community aims to develop alternate urban centres and increase level development programs through the ward urban-rural linkages and to assist the municipalities conunittees and organizations. in planning until they are financially and administratively sound. 1.6 VISION AND fUTURE Some of the specific policies for Kathmandu Valley PROSPECTS fOR URBAN are to consider the entire valley as a single planning PlANNING IN KMC unit, upgrade squatter settlements, develop a few of the adjacent urban settlements of the Valley, extend 1 .6.1 Government Policy on Urban land pooling programs and implement environmental Development improvement programs along the main river belts. The Government had acknowledged the importance of urban centres in national development since the Fourth 1.6.2 Vision Proposed for Greater Plan (1970-75) when regional development policy was Kathmandu introduced. Subsequent Plans have focussed on balanced regional development and complementary urban rural Previous studies as well as the current 9th Plan have linkages and have stressed on the promotion of pla1med all stressed the need for Kathmandu to be developed urban development to generate economic development into an administrative, cultural and tourism center. and employment. There also seemed to be an implicit understanding that Kathmandu should be accorded special status as a The current policy of the Government on urban capital city and large manufacturing and polluting development has been spelt out in the Ninth Plan (1997- industries should be discouraged from locating within 2002). The Plan has recognized some of the shortcomings the Kathmandu Valley. Alternatively, service and light in previous government efforts such as lack of an industries should be promoted in the future. Cognizant integrated development policy for the Kathmandu Valley of the developments occurring in the rest of the world, and poor coordination and duplication of works among the Development Plan 2020 has proposed the concerned agencies; inadequate physical services in diversification to information technology. Considering urban areas; poor urban-rural linkages; inadequate efforts the importance of Kathmandu as a cultural and political by the Government as well as the private sector to resolve center as well as the physical limitations and the housing shortages; lack of control on land sub-division environmental consequences of uncontrolled and expansion into flood plain areas; unclear and urbanization of the Valley, the vision proposed earlier overlapping duties and responsibilities of the town by the various plans continue to be relevant. Recently, development committees and the local governing bodies KMC has envisioned establishing Kathmandu as a and the ineffective functioning of the Kathmandu Valley regional sports and convention center. Given the Development Council. emergence of Kathmandu as an important city in the Cl~y __DIAGNOSTIC REPORT South Asian region, the vision to host larger regional control over such developments which have grown activities appears rational and achievable. without reference to any plans or planning norms. Little efforts have been made to coordinate land use with infrastructure and transportation services and the 1 .6.3 Stakeholders~ Vision for development activities of the various agencies, causing Kathmandu Metropolitan City many areas of the city to be deficient in these services. Much of the flood plain areas have already been built Because oftime constraint, a common all-encompassing over. This type of spontaneous and unregulated vision for KMC could not be formulated during the development has been occurring over the past few decades stakeholders' workshop. Nevertheless, brief vision and has covered most ofthe city area. Given the resource statements or key phrases for some of the individual constraints of the city and the legal and administrative sectors were developed by the respective focus groups. complexities involved, there appears to be limited These were: possibilities to undertake large urban renewal or redevelopment works to rectify the mistakes of the past. o Cleanest and healthiest city in Nepal o Economically sound and managerially capable city Despite the planning failures of the past, possibilities to government to provide quality urban services and make small but marked improvements in the city's natural facilities to the maximum satisfaction of city and built environment through proper planning still exist. dwellers Preparation of a new detailed land use plan and zoning o Clear strategy, well planned city and housing for all regulations for the city and their strict implementation o Well managed safe transportation are bound to reduce many of the cunent problems and bring about more planned and coordinated developments With respect to urban planning, the stakeholders' vision of buildings and infrastructure. The revised plan could of KMC could be phrased as "a well planned, clean and encourage densification and concentrated developments healthy city with adequate housing, good transportation at selected locations through appropriate zoning and sub- and infrastructure services managed by a strong and division regulations and building bye-laws. Private sector capable municipal government". involvement and cost recovery mechanisms could be introduced for infrastructure services so that resources could be generated to extend these services to other areas 1.6.4 Constraints and Opportunities and urban expansion could be controlled and guided by for Planned Urban Development of infrastructure developments. The revised plan would the City need to cover the municipal areas as well as all the VDCs to be included in the proposed Kathmandu Metropolitan One of the biggest constraints to planned development District, and at the minimum the adjacent VDCs that of the city has been the shortcomings and ineffectiveness are urbanized or rapidly urbanizing and need to be of the statutory plan for the city. The plan is outdated annexed by the city at the earliest. and totally irrelevant in the present context. Without a revised and updated city development plan, the city does Because of its unique setting in the valley and sharing not have a blueprint to guide development activities. The of borders with other municipalities, KMC shares many responsibility for preparing and implementing physical of the services with them and has common problems development plans has always remained a central and issues. Some of these problems can only be tackled government function with only peripheral involvement through collaborative efforts and require valley-wide of KMC. This arrangement had earlier been generally strategies. KMC, being the largest and most developed accepted by KMC primarily because it had never had city, needs to take leadership of any such collaborative the institutional capability to independently take on such efforts among municipalities and VDCs in the future. res pons ib il ities. Strategic development plans for Kathmandu Valley will be prepared by KVTDC to serve as guidelines for all The lack of proper plan as well as weak implementation the local bodies. KMC can obtain technical assistance has resulted in haphazard unplanned growth of the city. for urban planning from KVTDC whenever required. Developments have already spilled over beyond the KMC has already initiated the formation of an informal municipal boundaries into areas which have not been grouping of valley municipalities to discuss common incorporated in the plan. As a result the city has no legal problems and strategies. This forum can be given a more 40 URBAN PLANNING. permanent status and used for coordinating development b) Lack of urban planning and urban land use activities of the valley in the future. categorization, c) Failure to dismantle structures built on public land and road corridor, Kathmandu as the capital city and center of administrative, d) Failure to strictly enforce building construction tourism and economic activities is bound to continue to norms, grow in importance not only nationally but also regionally. e) The failure of the land registration office to have a This is defmitely going to result in continued investment separate category for urban land, in the city by the government and the private sector. The f) Lack of coordination among development agencies, city's financial condition is expected to improve g) Lack of access for fire brigades and emergency considerably after the new tax and fee collection system services, is fully introduced. The Local Self Governance Act has h) Lack of coordination between KMC's strategy and empowered KMC to prepare land use plans for the city. the development strategy of Kqthmandu Valley, i) Institutional weakness. At the same time KVTDC is also in the process oflimiting its planning responsibilities to the overall Valley and During focused group discussion it was noted that transferring the responsibility of preparing detailed city Government policies existed on urban population but development plans to the respective cities. This provides these were not being seriously implemented. KMC with the opportunity to initiate the preparation of a Similarly, there was a city development plan for new land use plan for the city. Greater Kathmandu, however, the plan had not been periodically updated and urban developments during The Urban Development Department and the Public the past decades had occurred in contravention of Works Department are not as yet technically capable of many of the provisions of the plan. Weak preparing and implementing the new land use plan for implementation of the plan and poor supervision had the city. With improved finances KMC can gradually resulted in encroachment on public land. There was strengthen its organization to take on the expanded agreement that the earlier plan lacked adequate zoning functions. KMC has the added advantage of absorbing regulations and as a result had failed to regulate urban the staffs and information System Unit of the ongoing land use. The different agencies involved in planning KVMP into the planning departments after the completion had not properly coordinated their actions. Similarly of the Project, as a result of which the departments should the city had not coordinated its activities with the be able to function as more capable units. overall plan for the Valley. KMC's institutional capacity to plan and manage urban development was As KMC's institutions are gradually strengthened and very weak. The vision proposed by the focused group their management capabilities are improved, in time they for urban planning was "A well managed city, and should be able to take over many of the local level housing for all". functions and services currently being operated and maintained by government and semi-government The Stakeholders' Workshop had come up with vision organizations. With much of the city's services directly statements for some of the individual sectors but there under its jurisdiction, KMC will be able to better was insufficient time to coalesce all of them into a coordinate their development in the future, thereby common vision statement for the city. Nevertheless, the ensuring a more effective and efficient management of vision of Kathmandu as an administrative, cultural and all its urban sectors. tourism centre as proposed by previous studies needs to be assimilated with some of the sectoral visions to prepare a final vision statement for the city. This vision 1.7 CONCLUSIONS OF THE FIRST would determine the appropriate strategies for the STAKEHOLDERS! WORKSHOP development of KMC. Only few of the issues on urban planning were highlighted during the Sakeholders' Workshop. Among 1.8 SUMMARY Of ISSUES ON these were: URBAN DEVELOPMENT a) Lack of Government policy to control urban Most of the issues on urban development can be divided population, into four broad categories which are listed as follows: Ci'fY PIAGf:\!OSTIC> REPORT 1.8.1 Planning and Infrastructure of supervision of public land. There is also a lack of policy on urban squatter settlements. a) Urban development in KMC is occurring in an unplanned and haphazard manner without i) Current practice by land registration office of consideration for coordinated infrastructure designating land use only according to agricultural servicing. There is a tendency of infrastructure to productivity makes it difficult to legally demarcate and follow rather than guide urban development. Many distinguish between urban and agriculture land and to new developments are occurring in areas with regulate urban encroachment into agriculture land. inadequate or no infrastructure. b) The statutory land use plan dates back to 1976 and 1.8.2 Institutional Problems is no longer effective in promoting planned development of KMC. The plan lacks adequate a) The Government has been the primary agency zoning regulations, sub-division controls, local area responsible for the preparation and implementation plans or standards for infrastructure development of urban development plans. Its ability to tackle and the zoning boundaries are vague. Insufficient problems of urban development has been constrained by lack of resources, lack of coordinated attention has been accorded to the implementation plans and programs and conflicting interests of aspect of the plan. The Government has not endorsed various government agencies which tend to give subsequent revised and updated plans. priority to their own programs rather than to the overall plans ofKMC. Unclear and overlapping roles c) Haphazard urban expansion has been occurring and responsibilities tend to cause duplication of beyond the municipal borders and outside KMC's works and sometimes to incompatible actions or jurisdiction. KVTDC is also unable to regulate such disputes among agencies. developments because of the absence of approved plans for areas outside Greater Kathmandu. b) KMC's ability to independently prepare and implement plans is hampered by resource and d) Lack of zoning regulations and weak monitoring has manpower constraints. Present organizational set- resulted in undesirable mixing of incompatible land up of KMC's Urban Development Division is not uses. capable enough to take up full-fledged planning functions. Similarly the Public Works Department e) Lack of Government or municipal initiative in urban lacks the resources to take on citywide infrastructure land development and housing has led to low-density development works. There appears to be weak residential development by individual landowners coordination between UDD and PWD and other and brokers, resulting in inefficient land use and departments under KMC. infrastructure services. c) KMC's current role in urban development has been f) A few initiatives by real estate developers to develop limited mainly to issuing building permits and relatively larger parcels of land have not given monitoring building construction up to the plinth adequate consideration to planning and level. Monitoring and land pooling functions overlap infrastructure standards. Low FAR has discouraged with the responsibilities of the Town Planning large planned area developments as it makes such Implementation Committee. efforts economically unviable. d) There is little coordination between the planning g) There is little control on industrial locations due to agency, the land registration office and the lack of zoning regulations and tendency of Department of Industry. As a result land industrialists to circumvent the requirements of development does not conform to proper planning building permit by locating outside the municipal or infrastructure standards and industries need not areas. obtain approval from the planning agency. Currently, urban land continues to be categorized on the same h) Squatter settlements have emerged along river banks basis as agricultural land whereas its economic value and marginal land because of increasing rents and derives not from agricultural productivity but from unaffordable housing and land prices as well as Jack non-agricultural urban use. 42 URBAN PLANNING e) KMC's ability to take action against unauthorized c) The Government has been unable to control construction has been hampered by the lack of clear development in areas prone to natural and man-made legal mandate to take action against offenders. The hazards. The city lacks adequate and easily City Police also does not have legal authority to take accessible open spaces which serve as safety zones any police action and KMC needs to seek assistance during seismic occurrences. from CDO to take action against violators. A separate unit to oversee the regulatory aspects of d) Cultural heritage sites are being threatened by planning does not exist. uncontrolled urban developments. f) Urban development has been hampered by the lack e) The city is suffering from poor waste management of political commitment and determination to and increasing air, land, water and noise pollution. implement approved plans and policies. Investment in the urban sector as well as monitoring of the plans f) Lack of adequate legislation for protection of the and policies have also been weak. environment has led to untreated sewage being directly drained into the rivers. 1.8.3 People~s Participation in Planning 1.9 CONCLUSIONS AND a) Limited involvement of the public in the planning RECOMMENDATIONS process has resulted in inability to obtain strong public acceptance and support for the city plans and From the very outset, the only officially approved land planning regulations. This public apathy along with use plan to date for Greater Kathmandu was an weak monitoring has made it difficult to regulate incomplete document. Although it had designated developments as per the plans. various land uses for the city, the zone boundaries were vague and had not been transferred to the cadastral b) There is strong public resistance to land acquisition survey maps, which were and continue to be the legal by the government for urban development process basis for land registration and sub-division. The plan because of the very low compensation provided. also did not have any zoning regulations to control use ofland. Nor did the plan have any specific programs to c) Ability and willingness of landowners to contribute integrate land use planning with infrastructure and to infrastructure developments is low even though transportation development. As a result the plan failed they benefit from higher land prices. Absence of cost to provide the comprehensive framework for the recovery mechanism in infrastructure developments development of the city and served mainly as a tool for has led to resource constraints to expand such issuing building permits. Because of weak programs into new areas. implementation even this basic function could not be effectively regulated and quite a significant amount of d) There is little control over developments occurring construction works have contravened the byelaws. in prime agriculture land and river flood plains Decades of such laissez-faire planning have resulted in because of lack of regulations as well as lack of unplanned haphazard growth of the city, inefficient use compensation for loss of development rights. of urban land and services and virtually no control over / the intensity and type of land use which often has led to the undesirable co-mixing of incompatible land uses. 1.8.4 Environment· Whereas much of the population growth ofKMC could easily have been accommodated within the existing areas a) The city has inadequate open urban space for parks of the city through densification and accessing the and recreation. Newly developed areas also lack landlocked areas, urban expansion had occurred public open spaces while existing open areas are unchecked into the low lying flood plain areas, outlying poorly managed. fertile agriculture land and adjacent VDCs. While the city center continued to be congested and faced gradual b) Overcrowding and congestion is occurring in the city deterioration, low density development with randomly core. Gradual deterioration of existing housing stock located pockets of undeveloped land was proliferating has given rise to slum conditions. 43 CITY oiAGNOSTIC REPORT in the outer areas, making infrastructure servicing difficult As provided for by the Local Self Governance Act, and expensive. Little effort had been made to coordinate KMC needs to take the lead role in the preparation the works of all the different agencies involved in and implementation of the city development plans as development activities in the city. Agencies often tended well as take ownership and responsibility for all local to work in isolation of each other towards narrow sectoral level functions including future expansion and goals rather than towards a common unified goal. maintenance of all the urban services. This will KVTDC, which was primarily responsible for overseeing provide it with a better opportunity to improve the urban development in the city, had neither the plans nor urban management of the city. Its current financial the legal authority to intervene in areas outside the city and institutional capacity to undertake such a limits. Within the city it did not have the authority to obtain responsibility, however, leaves much to be desired. mandatory cooperation and coordination from the Therefore, KMC needs to take immediate measures different agencies providing services to the city, to strengthen its financial and institutional capacity contributing to the poor urban management of the city. and gradually proceed to take over the facilities and Although KMC had concurrently been legally empowered functions of other organizations. It is anticipated that to independently carry out the urban planning and inputs from a few of the ongoing projects such as development functions for the city, its financial and ISKMC and KVMP will assist KMC in this process. institutional limitations had earlier prevented it from While assuming the total responsibility for city actively taking on these responsibilities. Even today its development, KMC must focus more on overall role in city development continues to be limited and management and supervision of programs and try as dependent on other government agencies. much as possible to involve the private sector in project implementation if it is to avoid creating To counteract the prevailing trends and ensure planned another huge bureaucracy to replace the existing development of the city in the future, the most urgent bureaucratic agencies currently operating the services and essential task is to prepare and strictly implement within the city. a revised land use plan for the city. Unlike the existing statutory plan, the revised plan needs to be complete, KMC, while preparing the revised land use plan, will especially in the regulatory aspects of zoning, sub- need to take into consideration the broad guidelines division and building construction byelaws and provided by KVTDC for the development of the valley. detailed programs for integrated development of land KVTDC as well as the other municipalities and VDCs use with infrastructure, transportation, housing etc. of the valley will have to be closely consulted throughout Furthermore, the plan must take into account the the planning process and the effects of city's programs future land requirements of the city and incorporate will have to be gauged on a larger context. those VDCs it considers suitable for immediate or long term annexation by the city. Densification of the Strategic actions to bring about improved and more city must be promoted at suitable locations through effective urban planning of the city will directly or appropriate policies. The city must make adequate indirectly help to fulfil the broad objectives of CDS. provision of open spaces and planned housing It is anticipated that better planning will inevitably schemes. Land for these purposes could be made lead to a well planned city with good urban services available by relocating government organizations that which will contribute directly to improve the city's do not serve central functions and making use of idle livability. Improvements in institutional capabilities guthi land. Infrastructure expansion must precede will result in good governance while improvements rather than follow urbanization and it must be used in the built environment and services will attract more effectively to guide the urban growth of the city. The investments to the city, which will have a cumulative Plan needs to be reviewed and updated regularly to effect of improving the city's bankability and respond timely to the everchanging urban situation. competitiveness. Table 8: Urban Planning Issues and Implications ISSUES IMPUCAliONS ACTORS 1. Existing statutory plan for KMC is Unplanned haphazard urban growth KMC, KVTDC, VDCs outdated and ineffective in regulating and related stakeholders urban development 2. Lack of coordination between physical 0 Deficiency of infrastructure services KMC, NWSC, NEA, plarming and infrastructure development 0 Inability to control and direct urban growth NTC, private sector 3. Low density urban sprawl with pockets 1:! High infrastructure cost and inefficient use ofland KMC, KVTDC, Ward of inaccessible land within city 1:! Lack of access to parts of city areas Committees 4. Unplanned and non-integrated urban 1:! Unplanned urbanization in VDCs MLD, KMC, DDC, expansion occurring beyond municipal 1:! Erosion of city's tax base VDCs,KVTDC areas into adjoining VDCs 5. Lack of space within existing CJ Deficiency in urban services MLD, KMC, DDC, municipality area for requisite 1:! Inability to make future expansion plans VDCs,KVTDC development purposes 6. Inadequate zoning regulations and 0 Incompatible land uses KMC, DOl, KVTDC, weak monitoring of development 1:! Violation of bye-laws DOS,DLA activities 0 No control on location of industries 7. Land developed by brokers and real D Deficiency of road width, open spaces and KMC, DLR, Private estate developers not according to infrastructure services in developed parcels brokers and developers planning norms and standards 8. Current land registration process based on D No control on urban encroachment on prime KMC, DLA, DOS, agricultural productivity and not according agricultural land KVTDC to actual use or potential for urban use 9. KMC institutionally weak in urban 0 Inability to prepare and implement plans KMC,KVMP planning and urban management l:l Lack of involvement in plmming functions functions D Lack of agency solely responsible for overall urban management 10 Lack of coordination among agencies 0 Unplanned and inadequate provision of services KMC, concerned involved in development activities 0 Poor management of urban services agencies within Kathmandu City 11 Lack of control on industrial l:l Haphazard industrial location KMC, DLA, DOS, DOl establishment D Incompatible land uses 12 Violation of planning and building 0 Encroachment on public land KMC,MLD,DA bye-laws 0 Inadequate access D Unsafe buildings D Unauthorized construction I 3 Lack of people's participation in the D Lack of acceptance and support for city KMC, Ward planning process development activities Committees 14 Inadequate cost recovery for D Deficient services KMC, related agencies infrastructure services D Poor maintenance of services D Inadequate resources for expanding services 15 Lack of open spaces D Public deprived of open recreational spaces KMC,GS,HMG D Absence of safety areas during times of seismic activities J 6.Lack of clearly defined river domain 0 Encroaclm1ent on river domain KMC, DLA, DOS 45 CITY DIAGNOSTIC REPORT BISUOGRAPHY 1. Archer, R. W.; Planning and Guiding Urban Land Development in the Kathmandu Valley, 1988. 2. Center for Economic Development and Administration; Kathmandu Valley Town Planning and Its Impact; 1979. 3. CITIES Data Book; KMC, 2000. 4. Chhetri, P. B.; Urban Planning Practices in Nepal-an Overview; unpublished article. 5. Culpin Planning Ltd. (London), Institute for Housing Studies (Rotterdam), Center for Economic Development and Administration (Kirtipur); Needs Assessment and Policy Review, Preparation of National Shelter Strategy; Shelter Institutions and Legal Framework; 1991. 6. Department of Housing and Physical Planning; The Physical Development Plan for the Kathmandu Valley; 1969. 7. Department of Housing and Urban Development/ Ministry of Housing and Physical Planning; National Urban Forum: Conclusions of the First Regional Workshop for the Kathmandu Valley; 1995. 8. DHUD/ MHPP; Recommended Policies and Strategies for Urban Development, 1991. 9. DHUD/ MHPP; Review of Kathmandu Valley Urban Development Plans and Programs 1991; 1996. 10. DHUD/ADB; Nepal Urban Sector Strategy, Inception Report and Draft Report; 2000. 11. Halcrow Fox and Associates et al; Kathmandu Valley Urban Development Plans and Programs; 1991. 12. HMG/ Kathmandu Valley Town Planning Team; Kathmandu Valley Physical Development Concept; 1984. 13. HMG/ Kathmandu Valley Town Development Committee; By-laws for Kathmandu Lalitpur Municipal Areas and Urban Expansion Areas of Kathmandu Valley; 1994. 14. HMG/ Kathmandu Valley Town Development Committee; Draft Report: Development Plan 2020 for the Kathmandu Valley; 2000. 15. HMG/ IUCN; Regulating Growth: Kathmandu Valley; 1995. 16. Institutional Strengthening of Kathmandu Metropolitan City; Inception Report; 1999. 17. International Center for Integrated Mountain Development; Economic and Environmental Development Planning for Bagmati Zone; Vol. III, Kathmandu Valley Urban Region; 1993. 18. Joshi, J.; Housing and Urban Development in Nepal; 1998. 19. Joshi, J.; Planning for Sustainable Development; 1997. 20. Kathmandu Valley Mapping Program; Overall Work Plan; 1999. 21. Local Self-Governance Act 2055; 1999. 22. Lumanti, NEWAH, WaterAid, Water and Sanitation Program-South Asia; The Water Supply and Sanitation Situation of the Urban Poor in the Kathmandu Valley; Results of a Research Study; 2000. 23. MSTP/ UNDP/ World Bank; Kathmandu-Lalitpur Structure Plan; 1987. 24. MSTP/UNDP/ World Bank; Infrastructure Assessment Report-Kathmandu and Lalitpur Nagar Panchayat; 1988. 25. MSUD; Nepal Urban Development Policy Study; 1989. 26. National Planning Commission/HMG; The Ninth Plan, Human Settlements and Urban Development; 1996. 27. National Society for Earthquake Technology-Nepal/ GeoHazards International (GHI); The Kathmandu Valley Earthquake Risk Management Action Plan; 1999. 28. Nepal Rastra Bank; Household Budget Survey, Urban Nepal; 1999. 29. PADCO; Kathmandu Valley Urban Land Policy Study; 1986. 30. Slusser, Mary Shepherd; Nepal Mandala: A Cultural Study of Kathmandu Valley; 1982. 31. Snowy Mountain Engineering Corporation/CEMAT; Greater Kathmandu Drainage Master Plan Studies; 1990. 32. Tiwari, Sudarshan Raj; The Pattern of Settlements in Ancient Nepal; unpublished Ph.D. dissertation; TU; 1995. 33. Thapa, Kishore; Existing Policies and Programs on Land Development; 1995. 34. Thapa, Kishore; Upgradation of Squatter Settlements in Kathmandu; unpublished Masters Thesis; 1994. URB E 0 MICS Dr. Bhuban B. Bajracharya URBAN ECONOMICS SPECIAUST CITY . DIAGNOSTIC REPORT. UST OF ABBREVIATIONS GDP Gross Domestic Products HBS Household Budget Survey HDI Human Development Index KCDS Kathmandu City Development Strategy KMC Kathmandu Metropolitan City MT Metric Tonne NLFS Nepal Labour Force Survey NLSS Nepal Living Standard Survey NRB Nepal Rastra Bank SAARC South Asian Association for Regional Cooperation SAF South Asian Federation SLC School Living Certificate TIA Tribhuvan International Airport VDC Village Development Committee WTO World Trade Organization 48 TABlE OF CONTENTS List of Abbreviations 48 Table of Contents 49 List of Tables 50 2. URBAN ECONOMICS 51 2.1 Introduction 51 2.2. Context 51 2.2.1 Objectives of the Study 51 2.2.2 Overall Economy and the Context of Kathmandu 51 2.3 Setting The Strengths 53 2.3.1 Capital City 53 2.3.2 Human Development Index 54 2.3.3 Kathmandu's Economy 54 2.3.4 International linkage 55 2.3.5 Employment 55 2.3.6 Employment Sources 56 2.3.7 Income Level 56 2.3.8 Human Resources 57 2.3.9 Educational Institutions 57 2.3 .1 0 Infrastructure 58 2.3.11 Business and Cargo 58 2.3.12 Tourism 59 2.3.13 New Prospects 59 2.4 Constraints And limitations 59 2.5 looking Ahead 60 Bibliography 62 49 CITY DIAGNOSTIC REPORT UST Of TABlES Table 1: Composition of GDP (in percent) Table 2: Annual Percentage Change in GDP and its Components (in percent) Table 3: Custom Revenue from Tribhuban International Airport (Rs. in million) Table 4: Distribution of Household Members by Employment Status (in percent) Table 5: Percentage Distribution of Employed Population by Occupation Group Table 6: Annual Average Per Capita Income by Source (1995/96) Table 7: Annual Average Per Capita Income by Occupation (1995/96) Table 8: Annual Per Capita Income by Decile Groups and Income Distribution Pattern (1995/96) Table 9: Distribution of Population (6 Years of Age and More) by the Attainment of Education Level (Kathmandu) - 1991 Table 10: Urban Economics- Issues & Implications 50 Urban Economics Kathmandu has remained a seat ofpower and an economic power center ever since the beginning ofmodern Nepalese history. In recent years, it has grown at a fast pace keeping pressure upon its limited social and physical infrastructures as well as upon the natural resources. The geographical boundary of Kathmandu Metropolitan City presents a somewhat incomplete picture for assessing the pressure upon its infrastructures in so far as settlements and other establishments are gradually expanding to many near-by Village Development Committees (VDCs). 2.2.1 Objectives of the Study 2 . 1 INTRODUCTION CDS Objectives The principal objective of this Strategy o far the growth of Kathmandu has taken its study is to assist KMC in improving the city's livability, own shape and trend, and planned efforts to competitiveness, bankability, governance, and develop it have been successful in a very limited management capacities. way. The horizontal expansion even to the neighboring VDCs and the tendency towards the vertical expansion The first two objectives bespeak of the need for particularly in the core commercial centers now call improving the environment of Kathmandu to make it a for more systematic efforts. However, these systematic livable and at the same time a competitive place. The efforts need to be streamlined along the requirements remaining three objectives touch upon the of the city. Such requirements are in turn guided by implementation part and indicate the need for building the role and nature of the city under consideration. So, and strengthening institutional and management in this context, it is essential to see how Kathmandu is capacities. growing, what roles it is in, and how it wants to grow in future. Towards this effort, the World Bank, upon Rapid growth of the city is accompanied by the the request of Kathmandu Metropolitan City, has prevalence of urban poor. They consist of, both, mostly provided technical assistance for preparing a migrated people sheltered in slum areas, and the Kathmandu City Development Strategy (KCDS). indigenous local people who could not move along with others primarily because of lack of access to skills, and In this section, an attempt is made to assess the socio- other resources, and at the same time due to social economic features that are likely to lead the city in the exclusions. Hence, the other objective of this strategy future. formulation is to address the problem of urban poor. 2.2. CONTEXT 2.2.2 Overall Economy and the context of Kathmandu Kathmandu, as we have seen, displays a typical example of a haphazard and unplanned growth. To arrest this trend 2.2.2.1 Per Capita and HDI and to give direction to the future growth of the city together with defining a concrete and definite role for Nepal ranks amongst the poorest countries in the world. With Kathmandu Metropolitan City (KMC) towards this a per capita income of about US $ 220, its human venture, the Kathmandu City Development Strategy was development index (HDI) is not that high either. It stands at thought of and formulated. CITY DIAGNOSTIC REPORT 0.463 for 1999, which is low even by the South Asian are the ones concentrated in the urban areas. It is standard. Defming poverty line as Rs. 4,404 per person per observed that these developments in the urban areas are annum, 42 percent of the people are estimated to be below not strong enough to bring down the poverty incidence. this poverty line in 1995,23 percent in the urban area and 44 percent in the rural area. Going by this definition, urban areas Many of the economic activities that developed in the of the Kathmandu Valley have a very nominal population urban areas are in the Kathmandu Valley. The below poverty line- just 3.6 percent. However, it has to be construction boom, establishment of new financial interpreted somewhat with caution for the reason of institutions, new airlines etc. all occur in Kathmandu. It differences in cost ofliving and the composition of food and is therefore not surprising that the urban-based economic non-food items across different regions. activities are more Kathmandu centric. The liberal economic policies vigorously pursued after the political For this particular year when the Nepal Living Standard change in 1990 saw a quick response from the non- Survey was undertaken, per capita income was estimated agricultural sectors located mostly in the urban areas at Rs. 7,690 at the national level. For the Kathmandu (Table 2). The annual percentage change or the annual Valley, it was estimated at Rs. 24,084 - thus showing a growth rates show an increase for these non-agricultural difference of more than three times between the national sectors. On the other, the agriculture sector, which still average and that of the Kathmandu Valley. This largely depends upon the vagaries of monsoon is not difference will be more than four times if comparison is that price sensitive. Its growth rate is in fact found to be made with the region with the least per capita income declining as compared to late 1980's. As a result, rural i.e.the rural west terai. Such difference could be a economy could not make a similar progress. proximate indicator for the reasons of attraction towards the Kathmandu Valley. The reasons for Kathmandu Valley centric economic activities are often attributed to the centralized decision making system. It is argued that even if the socio- 2.2.2.2 Economy economic infrastructures are developed in other parts of the country as well, the centralized decision making Nepal's economy is pre-dominantly agricultural - its has attracted entrepreneurs and major economic activities share in the Gross Domestic Products being still at 40 into the Valley. This tendency rriay not continue for long percent. In 1985/86, it used to be more than 50 percent as the government is pushing the decentralization (Table 1). The decline in the share of the agriculture schemes with letter and spirit, and the local government sector in the GDP is compensated by the increase in the agencies are being gradually equipped with greater shares of financial and real estates, community and social authorities. The Local Self-Governance Act provides thJ services, transport and communication, construction, and local authorities with revenue sources through different manufacturing. It is to be noted that the sectors, which tax measures, which so far used to be with the central have brought about this structural change in the economy, government. Though Kathmandu has a distinct Table 1: Composition of GDP (in percent) Originating Sectors 1985/86 1990/91 1995/96 1999/00** 1. Agriculture, Fisheries & Forest!}' 50.3 47.5 41.2 39.2 2. Mining & Quarr~ing 0.4 0.5 0.5 0.5 3. Manufacturing 6.2 6.3 8.7 9.5 4. Electricit~, Gas & Water 0.5 0.8 0.8 0.8 5. Construction 8.7 9.3 9.9 9.6 6. Trade, Restaurants, & Hotels 10.5 10.5 11.1 11.1 7. Trans~ort, Communication & Storages 6.0 6.6 7.7 8.5 8. Financial & Real Estate 8.8 9.5 9.9 10.2 9. Communi!}' & Social Services 8.5 9.2 10.2 10.6 Agricultural GDP at factor cost 50.3 47.5 41.2 39.2. Non-Agriculture GDP at factor cost 49.7 52.5 58.8 60.8 Total GDP at factor cost 100.0 100.0 100.0 100.0 ~ "'Preliminarv estimate Source: Ecot;omic Sur\'ey. J 999/2000, Ministry of Finance ....... ~ URBAN ECONOMICS Table 2: Annual Percentage Change in GDP and its Components (in percent) Originating Sector/Period 1985/86- 1990/91- 1995/96- 1989/90 1994/95 1999/2000 1. Agriculture, Fisheries & forestry 4.1 1.5 3.5 2. Mining & Quarrying 5.5 5.8 5.9 3. Manufacturing 5.2 14.0 7.4 4. Electricity, Gas & Water 13.9 10.1 8.0 5. Construction 6.5 6.5 4.4 6. Trade, Restaurants, & Hotels 4.4 7.5 4.4 7. Transport, Communication & Storages 5.3 9.8 6.9 8. Financial & Real Estate 5.2 6.4 5.7 9. Community & Social Services 6.7 6.8 5.7 Agricultural GDP at factor cost 4.1 1.5 3.5 Non-Agriculture GOP at factor cost 5.5 8.2 5.7 Total GDP at factor cost 4.8 5.0 4.8 advantage due to a big development gap between it and option. First, heavy investment is needed to develop an other cities, towns and settlements, and is not threatened alternative capital city and such investment will not be due to its preeminent position, it also means that forthcoming in view of the fact that many other priority Kathmandu needs to be more competitive in the future. programs of the government have still not been met. Second, pressure upon natural resources is bound to Liberalization policy, SAFTA, and the Nepal's efforts come everywhere, and on that basis only it is not to join the World Trade Organization (WTO) will require practicable to keep shifting the capital. It has to be a Kathmandu to be more competitive at the regional and strategic decision. So, there is little likelihood of shifting international setting. The role of the central government the capital away from Kathmandu. is gradually getting concentrated upon regulating and monitoring. Different reform measures in financial, real The growth of Kathmandu with all these activities has and external sectors are already in implementation. been made possible by the facilities available in the city Under these policy measures, custom walls have to be and the investment made on these facilities. Moreover, gradually brought down, subsidy and quota to be such investment from private, government, and non- eliminated or brought down to non-existence level, government sectors have taken place in an evolving public enterprises need to be privatized, PEs need to manner over the years. Therefore, investment of such compete with private sector by opening all sectors for scale from various sectors is unlikely to take place in prilvate sector participation. Now, there are no more other metropolitan cities in Nepal. In other cities also, regulated interest rates. Exchange rates are determined investment will increase in a gradual and evolving by the market. All these policy measures invites the manner rather than in an abrupt and autonomous way. private sector to participate more competitively in the The time taken for the rehabilitation of the central market. Though the absence of stability in the policy secretariat after the devastating fire in the Singha Durbar measures, and other uncertainties have yet to energize amply speaks of the difficulty in making a huge the private sector to a desired level, future perspectives investment for creating different infrastructures for a have to be framed along this direction. capital city. So, from an economic consideration, the vast amount of investment needed, in shifting the capital city, will keep Kathmandu as a capital city in a 2,,3 SETTING THE STRENGTHS foreseeable future. 2.3.1 Capital City Being a capital city, it is a center for executive as well as for legislative and judiciary branches. Likewise, many Kathmandu has been a capital city and it still is. Though constitutional bodies have their offices in Kathmandu occasionally suggestions are made to shift the capital only. So, with all the government and other paraphernalia city elsewhere particularly due to the pressure that has being centered in Kathmandu, it has attracted one and been put upon its natural resources, it is not an easy all, and it has contributed significantly in its growth. CITY DIAGNOSTIC REPORT Capital City means it has some disadvantages, primarily components of GDP. From the expenditure side, GDP in defining the roles of the central level government consists of consumption, investment and government departments and local level government bodies. In the expenses. With an estimated city population of about capital city, central government departments also have 600,000 and annual per capita expenses of about Rs. important roles to play in developing and maintaining 27,250 (HBS, 1999), the total consumption expenditures infrastructures at the acceptable standard in international at the household level can be somewhere around Rs. comparison. At the same time, higher allocation of 16,350 million i.e. US $ 224 million. Assuming this central budget to the capital region invites criticisms. consumption expenditure to be 70 percent of GDP, Such a situation demands a greater role for Kathmandu Kathmandu's gross domestic products can be roughly Metropolitan City. It has got implications with both assessed at Rs. 23,357 million i.e. US $ 320 million (at responsibilities and authorities for resource mobilisation one US $ = Rs. 73). It is just an indicative figure and for KMC. should be used with caution. The other measure of Kathmandu's economy is the 2.3.2 Human Development Index custom revenue from Tribhuban International Airport. The custom revenue from this IQOint constitutes a Kathmandu district has the highest human development significant portion in the total custom revenue though index of0.603 for 1996 as against the national value of showing a large annual variation - from 26 percent in 0.325. Such high human development indicator is a result 1996/97 to 11 percent 1999/2000. In view of the alleged of high life expectancy at birth (67 years), high literacy leakage, such shares can be fairly assumed around 20 rate (70.6 percent), and high income (per capita annual percent. income of NRs. 24,CDO). The status of women is also high with the Gender sensitive Development Index It is to be noted that despite bringing down the custom (GDI) estimated at 0.460 for 1998. The female literacy rates, custom revenue from TIA shows an annual average rate stands at 57 percent. These figures can be expected percentage increase of 16.1 percent in the 1990's. In the to be even higher for Kathmandu Metropolitan City. later years of the decade, it has shown a negative growth primarily because of the weakened tax administration at the airport. The peak collection is reported for 1996/ 2.3.3 Kathmandais Economy 97 when Rs. 2,146 million was collected in custom revenue. It was more than three times the amount Official statistics do not provide GDP estimates at the collected in 1990/91. The custom revenue collection regional and sub-regional level due to which the Gross indicates both its own consumption strength and its Domestic Product of the city is not known. Though it is importance as the trading center. Since air transport is not feasible to estimate Kathmandu's GDP, some ideas preferred for exports and imports, the existence of an on it can be obtained from the trend of some of the major Table: 3 Custom Revenue from Tribhuban International Airport (R.s. in million) Year Target Actual Index Annual Three years TIA's Share in Revenue of Percentage Average of Total Custom Collection Progress Change Percentage Revenue '" Change (In%) 1990/91 1991/92 500 619 563 648 112.6 104.7 15.1 18 19 • ~ ~ 1992/93 726 546 75.2 15.7 14 1993/94 731 1,235 168.9 126.2 36.8 24 1994/95 1,493 1,431 95.8 15.9 20 1995/96 1,702 1,399 82.2 2.2 19 1996/97 1,478 2,146 145.2 53.4 22.4 26 1997/98 2,436 1,446 59.4 32.6 17 1998/99 1,899 1,156 60.9 20.1 12 1999/00 1,509 1,216 80.6 5.2 -15.8 11 Source: Department of Custom, ~linistryof Finance. URBAN ECONOMICS international airport is an important factor for this make it difficult to make a comparison between these phenomenon. two figures. The NLFS has broadened the definition of employment by including such activities like collection of wood for fuel and fetching water in the economic 2 . 3.4 International linkage activities. Whichever definition we take, it is evident that unemployment rate hovering around 10 percent is Kathmandu's importance lies also, in being the only city high and not unusual for an urban center. The NLSS wiith strong international connections particularly has reported that the urban centers of the Kathmandu through air services. International linkages through air Valley obtain just about 3 percent of total income from services have increased both in terms of different agriculture sector. The Household Budget Survey by the international destinations, and number of airliners Nepal Rastra Bank for the year 1995\96 reported an even operating. The international airport at Kathmandu is one lower share of agriculture sector in the total income. prominent factor contributing to this. When 97 percent of total income is derived from non- agricultural sources, and when population growth is high The proposal of an alternate international airport outside at around 6 percent per annum due to migration, Kathmandu can have mixed effects upon the city. demographic and frictional unemployment are likely to Production units like readymade garments and carpets be high. This is visible in Kathmandu too. can get located outside Kathmandu. Likewise, the number of the tourists may also show some decline. The Household Budget Survey (1995/96) reports that However, there may not be a significant decline in the about 58 percent of the employed people are employees number of tourists since only limited accommodation -almost 43 percent in the private sector. Little more than facilities are available elsewhere outside Kathmandu, 23 percent of the economically active population is self- and hence tourists have to be transferred to Kathmandu. employed. For the female population almost 50 percent Alt the same time, there are mixed opinions on further are employees, and their employment status as unpaid expanding the capacity of Tribhuban International family is also high at 32 percent. Airport. Of this economically active people, only about 15 percent The other international linkage is provided by the are engaged in agriculture as against 80 percent at the presence of different international agencies. Apart from national level. About 22 percent in manufacturing and the embassies of different countries and the country processing followed by trade/commerce and related offices of different international organizations, several sectors (21 percent). General laborers constitute little regional offices of these organizations are also located more than 4 percent. , he:re in Kathmandu. The location ofSAARC headquarter in Kathmandu indicates not just Kathmandu's capability Women's participation is also high, with more than 34 to house such institutions but also politically the more percent of the economically active population being amiable status of Nepal in the South Asian perspective. female. Leaving few sectors like transport and The location of these international agencies indicates communication, construction, and legislative/ the availability of transport and communication infrastructures and other facilities from both public and Table 4: Distribution of Household Members by private sectors. Employment Status (in percent) Employment Status Kathmandu Valle}' Male Female Total 2.3.5 Employment Emelo}'er 1.2 0.8 Self-emelo}'ed 25.7 18.5 23.2 The recently concluded Nepal l,abor Force Survey Emelo}'ee 62.0 49.5 57.7 ( 1998/99) points to some interesting features of an (Government) (8.5) (6.9) (7.9) advanced urban center in the Kathmandu Valley. The (Semi-government) (8.2) (5.1) (7.1) (Private) (45.3) (37.5) (42.7) average family size is reported at 4.6, and the current Uneaid famil}' workers 11.1 32.0 18.3 unemployment rate is estimated at 9.6 percent- second TOTAl 100 100 100 highest after the eastern terai region. It is somewhat less Source: Household Budget Sun·ey (1995/96, th~n the estimate by the Nepal Living Standards Survey Ncpnl Rnstra Rani{ in 1995/96. There are some definitional changes, which 55 . CITY., QIAGNOSTIC REPORT management/administrative jobs, their involvement in 2.3.7 Income level other occupations is quite significant (HBS, NRB, 1995/ 96: 37). Both NLSS and HBS report a per capita income of urban areas of Kathmandu Valley at more than Rs. 24,000 per annum. It is interesting to note that near about 25 percent 2.3.6 Employment Sources of the average annual per capita income is derived in kind and of this more than 17 percentage points are the Kathmandu offers a wide range of non-farm employment imputed rental value of the owned house. opportunities. The NLSS has shown that 85 percent of sampled households belonged to the uppermost quintile income group, which helps in creating demand for Table: 6 Annual Average Per Capita Income by Source (1995/96) diverse goods and services. The other non-farm employment opportunities are provided by the ever- Sources of Income Income in Rs in% booming tourism industry. Total Monthly Income 24,561 100 Current cash income 18,632 75.9 wages and salaries 8,667 35.3 A host of other business activities have come up in the enterprise income 5,183 21.1 Kathmandu Valley indicating new business prospects (agricultural) (317) (1.3) and employment opportunities. The consulting activities, (non-agricultural) (4,866) (19.8) private airlines, banking and financial institutions, Property rental income 2,828 1 ~ .5 delivery of social services by the private sector, Pension and assistance 1,586 6.5 specialized services like audit and accounting, joint Other cash income 367 1.5 ventures and foreign direct investment etc. are some of Income in kind 5,929 24.1 Home produced 71 0.3 the business promoted by the liberal economic policies Free of cost 689 2.8 pursued vigorously after the restoration of the multi-party Received as part of pa}'/wages 5 political set-up in the country. It is reported that seventeen enterprise income 940 3.8 domestic, including private, airlines provide direct (agricultural) (911) (3.7) employment to about 5,000 people. (non-agricultural) (28) (0.1) Rental Value of a self-owned home 4,225 17.2 The diverse employment sources can be discerned from Source: Household Budget Survey (1995/96, Nepal Rastra Bank the distribution of the employed population by occupation groups. The highest per capita income estimated for administrative and managerial persons is Rs. 47,534 Table: 5 Percentage Distribution of Employed while that of general laborers is the lowest at Rs. 10,121 Population by Occupation Group only - a difference of more than three times. Occupational Group %of Employed People All Households 100 Professional and Technical 11.5 Table 7: Annual Average Per Capita Income by Administrative and Managerial 4.5 Occupation (1995/96) Clerical 7.7 Agriculture 15.3 Occupational Group Income in Rs Sales and Service 11.8 All Households 24,561 Production 15.0 Professional and Technical 31,981 Construction 20.7 Administrative and Managerial 47,543 Transport and Communication 4.5 Clerical 18,698 General laborers 4.5 Agriculture 20,651 Others 4.5 Sales and Service 25,725 Production 22,156 Source: Household Budget Sun·cy (1995/96, Xepnl Rn.stm Uank Construction 14,504 Transport and Communication 16,334 General laborers 10,121 From this Table, it is evident that there is no, one, Others 25,927 overwhelming occupation in which the employed people Source: Household Budget Sun·cy (1995/96, Nepal Rastm Bank are engaged. 56 URBAN ECONOMICS Per capita income in a way reflects the productivity, and Population Census of 1991 clearly indicates that 35 from this perspective, agriculture has also shown a percent of the total people have an education level of respectable per capita income and productivity. It clearly S.L.C. and above. As the human resource is a prime shows that commercialisation of agriculture yields good factor propelling the development process, such human returns in agriculture. force is bound to take the city much ahead particularly in the atmosphere of liberal economic policies which The highest per capita income indicates the opportunities promote the efficient use of resources. The KMC still that the urban areas of the Kathmandu Valley provide. It is also the reason that competitive and successful people from around the country migrate and stay here. Table 9: Distribution of Population (6 years of Age and more) by the Attainment of Education Level The Household Budget Survey does not indicate a big (Kathmandu) - 1991 gap in the per capita income between different decile Education attainment level Kathmandu city groups. The difference between the lowest decile and No schooling 34,454 (12) the top decile is just aiJout three times. However, in terms Primary (1-5) 66,047 (23) of income distribution it can be seen that the top 10 Secondary (6-1 0) 74,469 (26) percent of households control about 26 percent of the S.l.C. and equivalent 36,682 (13) total income. People at the bottom 40 percent have just Intermediate and equivalent 28,805 (10) about 21 percent of the total income. The inequality and Graduate and equivalent 24,884 (9) Post Graduate and equivalent 8,377 (3) skewed income distribution in the face of a not very Others 31 (-) large gap in the per capita income level suggests a high Level Not Stated 11,654 (4) degree of competition is needed to reach to that level. TOTAL 285,403 (100) Source: Population Census (1991), Central Bureau of SU1tistics. Figures within parauthcsc nf(.) pcrc:entages. Table 8: Annual Per Capita Income by Decile Groups and Income Distribution Pattern (1995/96) Decile Group Annual Percent Percent of has the potentiality for attracting such highly educated Per Capita of Income Population people for various reasons. Income 16,565 3.74 12.42 2 16,806 5.44 12.44 3 14,869 5.53 10.42 2.3.9 Educational Institutions 4 17,006 6.20 10.02 5 24,200 8.63 11.74 Kathmandu has a number of good educational 6 18,342 8.05 9.29 institutions at different levels. There were 599 7 21,529 9.96 9.49 public schools in 1998 with a total of 8 24,022 11.32 8.72 141,903students. With the teachers' strength at 9 29,191 15.10 8.53 10 48,085 26.03 6.93 6873, the student teacher ratio comes to 21:1. In Ali Households 24,561 the Kathmandu Valley, another 151 ,212 students study in private schools. A Study on Cost Sharing Source: Household Budget Sun·ey (! 995/96, Nepal Rtlstra Bank Options for Quality Secondary Education indicated that in 1996/97, out of the seven best performing The per capita income level of the urban areas of public schools in SLC examination from among 76 Kathmandu Valley thus shows the competitiveness of sampled public secondary schools in Nepal, three Kathmandu as compared to the other parts of the happened to be from Kathmandu, one happened to country. be from Lalitpur district- so altogether 4 from the Kathmandu Valley itself. Though Kathmandu has only one university, a host of colleges affiliated 2.3.8 Human Resources with four universities are operating in the city. Apart from the humanities and management stream, If we are to observe a breakdown of the literate people, many engineering colleges have recently started. there is a strong concentration ofhighly educated people Now, the country can produce 4 to 5 thousand in the Valley, more so in the metropolitan area. The engineers in a year, and more than 50 percent of CITY DIAGNOSTIC REPORT them will be from Kathmandu Valley alone. The the peak of 12,000 MT in 1993 and recently gone down private initiatives in establishing these institutions to about 8,000 MT in 1998. The incoming air cargo is indicate the demand for these subjects. around 6,000 MT. The presence of the international airport in Kathmandu has prompted some of the exportl oriented production units in the Valley. Carpet and 2.3.1 0 Infrastructure readymade garment production units were established in different parts of the city. However, for different Kathmandu's growth is facilitated by the presence of well reasons, their production has gone down considerably, established if not well maintained infrastructures. It has a and many such units were closed down. Mostly these good road network with other parts of the country. Arniko two export oriented industries are established in the Rajmarg connects Kathmandu with Tibet the autonomous Kathmandu Valley, the other industries polluting the region of China. Of late, its economic importance has environment and existing in the Valley are brewery and significantly improved with the emergence of Khasa in distillery, cement, feed, soap and chemicals, solvent oil Tibet as a prime business center. Besides, tourists are and vegetable ghee, marble, quarrying, textiles etc. But moving to Lhasa via this highway. Kathmandu has thlly experiencing a transfonnation re-evaluate their continuation in the Valley. in providing utility services. Delivery of utility services is gradually being made commercial and institutional. Kathmandu is an important business center, though it is Nevertheless, there is still a great leap forward required not possible to estimate the business establishments to meet the demand of a modern day metropolitan- both currently working in the city, it can be guessed that it for providing utility services and making payments goes well into the thousands. Near about 20,000 firms through banking institutions. are registered under the Company Act. However, it is not quite clear how many of them are actually working. The construction of buildings of different qualities at the One rough estimate suggests the survival rate to be about private sector, though criticized as unproductive investment, 25 percent, and accordingly, about 5,000 firms can be has also greatly reduced the public housing problems which expected to be operating throughout the country under would otherwise be a headache for the government. At the the Company Act. More than 50 percent of this is same time, it has facilitated the stay of foreign nationals. expected to be in the Kathmandu Valley. Besides, there are business units registered under other different acts such as Partnership and Agency acts. So, anywhere 2.3.11 Business and Cargo between 8,000 to I 0,000 units can be expected to be operating from the Kathmandu Valley. It can be assessed The other business oriented activities have their also from the fact that almost all the banking and non- reflection in the outgoing air cargo, which has reached banking financial institutions have their principal URBAN ECONOMICS business center in Kathmandu. One important Kirtipur has several world heritage sites known for their development in the business sector is the institutional grandeur, rich art works, and cultural activities. Besides, change towards a more organized and better-managed the surrounding areas of the Kathmandu Valley attract institutional set-up. However, the pace is not enough. people for the Himalayan range and natural splendor. The private sector in Nepal is fragmented and many of Apart from these scenic attractions, Kathmandu as a 'city' the organizations come together to secure a monopoly has also started attracting visitors for different purposes hold. Corporate culture and good corporate governance such as business, conferences, sports, a small 'hop' for need to be vigorously promoted for making the private Tibet bound visitors etc. sector of Kathmandu competitive not only within Nepal but also in the regional and international context. This is absolutely necessary to enhance the management 2.3.13 New Prospects strength. As we have seen earlier, the strong human resource of the city coupled with equally good communication 2.3.12 Tourism infrastructure can promote the prospects of information technology in the country. Though the government has Number of tourists is growing at an annual rate of 8 a policy of promoting software development in the percent. Apart from the number of tourists reaching the country, it is not quite sure about its location. Earlier, 500,000 mark, the number of hotels and hotel rooms some initial works were taken to develop an IT park are also showing a steady rise. The number of hotels outside Kathmandu. The private initiatives towards the has risen from less t~an 100 in 1988 to 325 in 1997 in software development industry have made some the Kathmandu Valley. There are four 5-star hotels in significant strides ahead and could work as a foundation Kathmandu. The total number ofbeds has gone up from for a more organized effort. 6,125 to 16,681 in the same period. Tourism and business activities have attracted various international airliners The other advantage for Kathmandu lies in it being an into the country, and at present more than a dozen important capital city of one of the South Asian international airliners are operating their services in countries. The SAARC Secretariat is in Kathmandu, and Kathmandu. Concerning tourism, Kathmandu is it also symbolizes the acceptance of Kathmandu as an gradually emerging as a regional destination. In view of advantageous location for undertaking regional opening of Tibet for tourism, Kathmandu is in an even activities. Such regional activities relate to business, more advantageous position. sports and culture, politics and administration. Of recent, Kathmandu has shown its potentiality for hosting In 1998, Nepal received about 464,000 tourists. Of this, international level sports activities with the successful almost 400,000 tourists entered Nepal through conclusion of the 8th. SAF Games, and the first ever Kathmandu. That means, 86 percent of tourist entering international cricket event in the country. The tourism Nepal by air come to Kathmandu. Assuming about 3 growth in the Valley has increased accommodation days of average stay in Kathmandu, it has an estimated facilities considerably. So, sports facilities for 1.22 million days of tourist stay. It amounts to about US professional games could be an attractive proposal for $ 35 million of tourist spending in Kathmandu on the Kathmandu. Weather, political acceptability, security, assumption of spending of US $ 30 per day i.e. NRs. accommodation facilities are some requirements with 2,562 million (at the current rate of US $ = NRs. 73). which Kathmandu is already endowed. The tourism activities of this scale are evident from the tourism services and other tourism infrastructures in the Valley. The tourism spending in the Valley could be even 2.4 CONSTRAINTS AND higher as the trekking arrangements and bulk purchases UMITATIONS for them are all made here. At the same time, Kathmandu is a small valley These tourists come to Kathmandu for various purposes surrounded by mountains. Despite good road networks - from sight seeing to business to conferences. and air routes, the entry and access to the Valley is always Kathmandu has good tourism prospects - cultural found to be technically challenging. So, there is a tourism, business visits, conferences, and small treks in proposal for an alternate international airport outside the and around the Valley. The city of Kathmandu including Kathmandu Valley. This will not only help in lowering 59 CITY.· DIAGNOSTIC REPORT the pressure upon Kathmandu but also require it to be 2.5 lOOKING AHEAD competitive. Future prospects for the city have to be thought of both The other constraint is posed by the limited water supply. in terms of sectors and programs, and the implementation Demand for water is increasing due to the increase in capability. While doing so, we should not be guided by population and the change in lifestyles. The growth of the past only, and hence some unconventional thinking industries requiring huge volume of water is simply not should also be encouraged. Besides, Kathmandu has to possible, and there is pressure to shift the existing be evolved not just in the context of Nepal, but also in industries out ofKathmandu due to the scarcity of water. the regional and international contexts. Though Melamchi water can be expected in the foreseeable future, its industrial use is less likely to be From the past tourism has shown a great prospect in feasible due to the fast growing consumption need and Kathmandu. The tourist attractions together with the the cost of supplying water. development of the tourism infrastructures can provide a still greater impetus to its growth. Since Kathmandu Of recent, Kathmandu has experienced a rapid is the most convenient gateway to Lhasa, Tibet, which expansion, and it is mainly horizontal expansion is emerging as a tourism destination, Lhasa bound extending to the near-by Village Development tourists are likely to increase in the years to come. This Committees. Such growth has put pressure upon the growth in tourism can be further promoted by physical infrastructures particularly upon the water promoting sports activities. Some of the professional supply and sewage facilities. Despite the increase in the sports such as cricket and golf can be promoted in number of vehicles the length of urban roads have Kathmandu by greater coverage through satellite virtually remained the same. So, even at this early stage television. of development, a necessity is felt to restrict the number of vehicles. Information technology and computer software development are two promising economic activities that Besides these physical limitations, there are are coming up throughout the world. Their demand is institutional limitations in the form of inadequate ever increasing. As it does not put much pressure upon authorities within the Kathmandu Metropolitan City, natural resources, these activities are even more ideal. unclear relationship between the Center and local Similar other industries having minimal impacts upon government agency, and KMC's own organization. the natural resource are the assembling industries. Though there are classification of municipalities, its reflection in the responsibility and authority is not Trade and business are the two major activities taking defined. Therefore the provisions that may be required place in Kathmandu Valley from time immemorial and for a small VDC and municipality could be very they still have more prospects. However, its nature restrictive for KMC. As is indicated earlier, the central will not remain the same, and moreover, Kathmandu level government ministries and departments play their needs to be visualised as a regional trade center. Now, roles in the development of a capital city thus the the business needs to be more organized, and also responsibilities are often overlapping. It becomes conform to the international norms. The private sector particularly critical when resources do not get to the also needs to come out from the traditional and hands of the KMC, and individual ministries and conservative cocoon of doing business at the departments express their difficulty in allocating more 'individual level'. More organized efforts at the resources to the city in their own programs. 'industry' level have to be made for keeping the quality at a competitive level, taking the benefit of economies It could be a critical constraint in a broader context as of scale, understanding and disseminating the well. The central government is finding it increasingly international norms. Understanding and moving along difficult to manage and enhance the quality of education the macro perspective of the business environment and health facilities provided by the public institutions. and preparing for it is absolutely essential for the The role of the local government is not yet clear, and private sector to grow into an internationally the central government has not been able to devise any competitive sector. Now, with the technological modus operandi to pass on some of these advancement in transport and communication responsibilities and resources to the local government bringing all the countries closer, no country can institutions. camouflage itself from international competition. URBAN ECONOMICS Table 10: Urban Economics Issues and implications ISSlJES IMPLICATIONS ACTORS Need for identifying the role, and make Keep up and promote competitive edge based on HMG, KMC, CBOs, Kathmandu and the country competitive in the states of technology and economic Donors particularly the international context. relationships multi-lateral. Inadequate investment and inefficient Inefficiency in production process and increase HMG, KMC, private physical infrastructures in cost of production sector including joint ventures, Donors particularly multi-lateral. Resource crunch with KMC Poor infrastructure, environmental problems, HMG, KMC and private and poor service delivery sector Weak implementation capacity ofKMC Poor service delivery, poor revenue collection, HMG, KMC and donors unruly city development Limited role ofKMC in development Sterile image as local government bodies HMG,KMC 0 0 0 acttvtttes 61 CITY DIAGNOSTIC REPORT BIBLIOGRAPHY CBS (1996), Nepal Living Standards Survey Report- 1996, Vol. I: Main Findings, Central Bureau of Statistics, Kathmandu. CBS (1997), Nepal Living Standards Survey Report - 1996, Vol. II: Main Findings, Central Bureau of Statistics, Kathmandu. CBS (1999), Nepal Labour Force Survey- 1998/99, Central Bureau of Statistics, Kathmandu. DoE (2000), School Level Educational Statistics of Nepal - 1998, Department of EducatioP, Ministry of Education and Sports, Bhaktapur. ICIMOD (1993), Economic and Environmental Development Planning for Bagmati Zone, Vol. III: Kathmandu Valley Urban Region, A: Assessment of Current Conditions, B: Plan and Programmes, ICIMOD, Kathmandu. METCON (1999), Cost Sharing Options for Quality Secondary Education in Nepal, a report prepared for Secondary Education Development Project, Kathmandu. Ministry of Tourism and Civil Aviation (1998), Summary of Tourism Statistics. NESAC (1998), Nepal Human Development Report- 1998, Nepal South Asia Centre, Kathmandu. NRB (1999), Report on Household Budget Survey- Urban Nepal, Nepal Rastra Bank. World Ba'1k (2000), World Development Report- 2000/200 l: Attacking Poverty, World Bank. INSTITUTIONAL DEVELOPMENT Dr. Dev Raj Adhikari INSTITUTIONAL DEVELOPMENT SPECIAliST ~i~';; :t: '':: crrY'';,DIAGNOSTIC ,RgPORT ':., "J~>~~~,''~ <' ~' "',~ c:; UST OF ABBREVIATIONS ARC Administrative Reform Committee CDS City Development Strategy CEO Chief Executive Officer CPC City Planning Commission DCSI Department of Small Scale Industries DOC District Development Committee DI Department of Irrigation DOI Department of Industry FNCCI Federation of Nepalese Chamber of Commerce and Industry GWRDB Ground Water Resource Development Board HOM Department of Hydrology and Meteorology KMC Kathmandu Metropolitan City LSGA Local Self-Government Act 1999 MC Metropolis Council MLD Ministry of Local Development MLJPA Ministry of Law, Justice and Parliamentary Affairs MLRM Ministry of Land Reform and Management MLT Ministry of Labour and Transport MOF Ministry of Finance MOH Ministry of Health MOH Ministry of Home MOI Ministry ofindustry MOPE Ministry of Population and Environment MPPW Ministry of Physical Planning and Works MTCCA Ministry of Tourism, Culture and Civil Aviation MWR Ministry of Water Resources NEA Nepal Electricity Authority VDC Village Development Committee we Ward Committee WEC Water and Energy Commission INSTI"fUTIONAL DEVELOPMENT ' TABlE Of CONTENTS List of Abbreviations 64 Table of Contents 65 List of Tables- 66 3. INSTITUTIONAl DEVELOPMENT 67 3.1 introduction 67 3 .1. I Background 67 3 .1.2 Historical Perspective of KMC and Decentralisation in Nepal 68 3 .1.3 A Brief Introduction of the CDS in a Broader Perspective 68 3.1.4 Activities 70 3.2 The Context 70 3 .2.1 Background 70 3.2.2 The mandate 70 3.2.3 CDS Objectives and its Interrelation to Institutional Development 70 3.2.4 Stakeholders 71 3.3 Existing Institutions Responsible for City Development Activities 77 3.3 .1 Background 77 3.3.2 Institutions Involved in the City Development Activities 78 3.4 Review of Existing Policies, Ads and Regulations in the City Development Perspective and CDC in Particular 80 3.4 .1 Background 80 3.4.2 Policies, Acts and Regulations 80 3.4.3 Facilit2ting Implementation of CDS 86 3.5 KMC as an Institution 86 3.5.1 Background 86 3.5.2 Organisation and Management of the KMC 86 3.5.3 KMC: Foundation, Capacity and Performance 91 3.6 Arrangement of Institution in the Context of CDS 100 3.6.1 Introduction 100 3.6.2 Foundation: Issues 100 3.6.3 Capacity: Issues 100 3.6.4 Performance: Issues 100 3.6.5 Issue-Action Matrix: the Gate Way to Vision 101 3.7 COS Management and Institutional Strengthening Costs 101 3. 7.1 Introduction 101 3.7.2 CDS Steering Committee 101 3.7.3 Financ1al and Human Resource Needs 101 3.7.4 Accounting and Audit 102 3.7.5 Risk Factors in Implementing CDS 102 3.7.6 CDS Can be Implemented 103 3.7.7 Monitoring and Evaluation of CDS 103 3.7.8 Training for Electoral and Staff 104 3.8 Conclusions 104 Bibliography 109 ...6s·· liST OF TABLES Table 1: Financial and Human Resource Needs Table 2: Institutional Development - Issues and Implications Institutional Development The policy ofdecentralisation implies the process for transferring authori(v and responsibility to local bodies in the formulation, implementation and effective management ofdevelopment plans and projects with active participation of the local people. However, effective involvement of the people in development activities will be largely guided by the national constitution, rules and regulations, motivation, honesty and democratic prlnciples. 3 . 1 INTRODUCTION 3. to determine the required financial resources to the local elected bodies; and 3.1.1 Background 4. to recommend on personnel administration of local elected bodies. l ith the advent of democracy in 1990,roles l of the central and local government After a rigorous exercise and series of meetings the institutions have substantially changed. The Committee made several policy recommendations which Interim Government completed the task of making are to be implemented in the future suggesting a new Nepalese constitution. In course of implementing the role for the local elected bodies such as the Village new constitution a number of administrative problems Development Committee, the Town Development were witnessed in the policy making and implementing Committee and the District Development Committee. agencies. Many faulty administrative legacies of the However, even after the recommendations of the ARC Panchayat regime continue to be in practice even after and formulation of the new Local Governance Act the the arrival of the new constitution. Some of these are: a situation of the local elected bodies have not been highly centralised system of administration where high improved as expected. Since the Kathmandu Town level decisions are imposed on the lower level, and there Development Committee has been renamed as the is a lack of commitment and responsibility in carrying Kathmandu Metropolitan City (KMC) it is taken as the out official tasks. All ministries, departments, local local body rather than the local elected government. government offices and local elected bodies have Some major initiatives and projects currently have been inherited the traditional way of doing things. This has taken to strengthen KMC institutionally are; Institutional created a lot of confusion among the administrators and strengthening of Kathmandu Metropolitan city politicians about who are policy makers and who are (Agricultural Development Bank); implementing the real implementers. Realising this fact the first elected corporate accounting system in KMC(RUDO/ USAID) government of Nepal constituted the Administrative and The Urban Governance Initiative Programme to Reform Committee to revamp the prevailing support KMC in good governance (UNDP). These administrative system, procedure and mechanism of the initiatives are going on piecemeal basis rather than an outdated Panchayat legacy. One of the objectives of the integrated package. Committee was to strengthen the local democratic process and speed up local development activities. To Perhaps, KMC needs to build up its operational capacity achieve the above objectives the Committee decided to to keep up with the growing demands for urban services work on: and to keep pace with the growing problems of its rapid urbanisation and the associated implications for the 1. to make guidelines to devolve power of the central management ofland, service delivery, housing, cultural/ government to the local elected bodies on issues natural heritage conservation and management, such as drinking water, health and education; environment management and so forth. Realising these 2. to determine relation between local government facts the proposed City Development Strategy (CDS) offices and the local elected bodies; aims to enhance its competitiveness and governance of DIAGNOSTIC .REPORT0 • """' KMC. However, in the lack of institutional reform and submitted by the Ranadhir Subba. However, the main client-response services of KMC, the above objective problem was its implementation due to the lack ofhuman will probably remain unfulfilled. It is therefore, one of resources to formulate plans and programmes and to the main aims of the CDS is to strengthen institutional monitor the development activities at the local level. In development and governance of KMC in an integrated addition, because of the attitudes ofthepower holders at way. the centre, who either ignored or did not share power with the local political and development organisations, the decentralisation efforts of the past remained a futile 3.1.2 Historical Perspective of KMC exercise. In fact during the Rana and Panchayat regimes and Decentralisation in Nepal the whole government machinery and forces were used to counter the pressures of the oppositions and never KMC was established in the name of "Safai Adda" permitted to develop the local elected bodies during the Rana regime after the "Bhotahity order" by institutionally. the then Rana Prime Minister ,Chandra Samsher JBR in 190 I. It had two levels- upper and lower levels. The After the restoration of democracy in 1990 the Village upper level was responsible for the administrative works and District Panchayat was renamed as the Village and where as the lower level was for cleaning the city. District Development Committee. With a view to make Representatives were nominated by the Rana local elected bodies active in the development process, government. The total number of representatives were a policy of decentralisation was envisaged in the Eight- 18 in Bhim Samsher,s time. In 1918, two Plan ( 1992-1997) to delegate development authority and Municipalities- Kantipur and Patan-were established responsibility to the local bodies. In 1998 a high level (Source: Municipality Section of the MLD). During this Decentralisation Committee was constituted under the regime there were no administration rules to regulate chairmanship of former Prime Minister Sher Bahadur employees working in different organisations. All Deuba. The Committee recommended the need for the government forces were centralised, keeping people Local Governance Act- 1998, subsequently the Local away from development activities. The basic concern Governance Act was promulgated in 1999. However, of the Ranas' was patronage and membership of the the act was implemented without prior institutional institutions rather than merit or efficiency (Blakie et al., preparation of the Municipalities including Kathmandu 1983). Metropolitan City. When the Regime was overthrown in 1950 the new political model adopted in Nepal was parliamentary 3.1.3 A Brief Introduction of the CDS democracy under the aegis of the constitutional monarch. in a Broader Perspective After the revolution in 1950-51 the Panchayati Act-1951 was enacted which made provision for five In the year 1991 the population of KMC was 421,258 municipalities in Kantipur, Biratnagar, Patan, Bhaktapur registering a growth rate of 6% in between 1981-91. If and Birgunj. In 1953 the new act known as the Nepal this rate continues it is expected that the population of Kingdom Municipality Act was constituted, adding two KMC will reach 1,011,105 in the year2011. Thus, there more municipalities- in Bhadrapur and Tansen (Palpa). will be problem of unplanned urbanisation resulting in However, after the royal take over by King Mahendra a the inefficient use of the lands. Currently, there are about party less political system (known as Panchayat system) 10 Ministries and 15 associated Departments directly begun. The Constitution of the Kingdom ofNepal-1962 or indirectly involved in planning, governing and for the first time envisaged the idea of decentralisation. providing services in Kathmandu valley only. They all Since the advent of a single party system different have different objectives, priorities and in some cases, commissions were constituted to initiate the process of conflicts due to the lack of clarity of their jurisdiction decentralisation in the country. During the 1960s three and authority. commissions reported on decentralisation, namely, Biswa Bandu Thapa Commission, Bhoj Raj Ghimire There is a growing problem of transportation and traffic Commission and Jaya Prakash Commission. The management in the KMC. In Kathmandu, there is 270 provisions were made to constitute a Village and District KM length of road, on which, per day, 17,000 vehicles· Panchayat. Afterward in 1982, for the first time, the and about 80,000 motor cycles travel. If the current Decentralisation Act was enacted based on the report growth rate of vehicles at 7 percent continues, the ····INSTITUTIO(\IAL ,DEVELOPMENT number of vehicles will reach 2,88,000 by the year 2020. There are a varied number of development activities gomg Moreover, the increasing population and the increasing on with community approach in KMC. Such activities number of vehicles brings various problems related to include infrastructure development, preservation of traffic, roads and other activities in KMC. Some major heritage and culture, and services related to education and issues related to the transportation management are:a public health they are primarily carried out through lack of effective co-ordination within various units of government and non-government and local initiatives. the: line Ministry, overlapping of functions between They are also involved in many other sectors such as different agencies and the lack of management of environment, slums and squatters, street children, women physical and public transport factors. and children rights and equity activities. However, there are problems with regard to co-ordination of activities Of the total urban population, about 20 percent are and communications among these institutes. sheltered in an area of about 5,076 hectares of the KMC an::a. In a study conducted by the IUCN in 1995 it was One of the fundamental problems ofKMC is its inability estimated that there were 80,246 households in KMC. to mobilise resources. KMC needs sources for funds for It is estimated that in the year 2001 the total population making administrative and capital expenditure. With the ofKMC will reach 729, 690 and thus require 137,677 abolition of octori tax system it cannot meet the above houses. However, there will be a deficitof33,160 houses expenditure so there is a problem of widening the by the year 2001 creating a great housing problem in resource gap,and as a measure, with the enactment of the city. In addition, there are about 2,031 households Local Self-Governance Act 1999 municipalities and with a population of 11,862 settled on public land as Metropolis are authorised to collect taxes and fees. squatters. Although KMC has taken initiative to work However, the lack of proper institutional arrangements on this problem, due to the lack of clarity of policies is making it difficult to manage urban economy and city among various government agencies. It has no total finance for KMC. In addition there is no co-ordination institutional arrangements to undertake this function. in the revenue collection activities of the government and metropolitan. The heritage of the historic city of Kathmandu contains important values ofhistorical, scientific, socioeconomic From the above presentation it is clear that KMC has to and other significant aspects. They carry more value for be prepared to face environment, community, heritage the future rather than the present. Realising this fact, conservation, land management and housing related KMC is involved in conserving its heritage by instituting problems in the near future. In this direction, the role of a separate department namely Heritage and Tourism CDS (City Development Strategy) is paramount to cope Department. The Kathmandu Vision-2020 aims to with the future by addressing the above said challenges involve youth for the conservation and preservation of on a package basis. The current CDS is prepared with the valley's cultural heritage. There are a number of the approach to be an effective mechanism to assist cities studies and documents including UNESCO's, The in identifying KMC's issues, constraints, opportunities Master Plan for Conservation of Cultural Properties in and formulating a vision for the city, along with a Nepal-1978 addressing the management of significant concrete action plan for implementation. Broadly, the cultural and heritage property. However, it is necessary CDS aims to address the following issues: to develop national-local and non-governmental organisations to preserve our cultural heritage properly. a) Municipal finance; There is therefore an urgent need for trained manpower b) Urban economics; to institutionalise the heritage management properly. c) Participatory planning and community development; In KMC problems of water pollution, water supply apd d) Institutional development and strengthening; sanitation, drainage system and solid waste management e) Municipal and environmental engineering; are accompanied by its urbanisation process. KMC has f) Housing and slum/squatter upgrading; and to manage about 300 Metric Tons of solid waste per g) Decision support information system. day. There are many organisations working in the environment sector in Kathmandu. Since KMC is This part of CDS aims to work on strengthening its authorised to administer the proper management of so lid institutional development. The activities to be carried waste, co-ordination among the various institutions is out in this work are mainly for the implementation of imperative to improve KMC's environment. CDS. The main objectives of the study include: ·• Dlnf}~:·ntAGNO.S;[IG> R~PORT ·'\,::--, a) To analyse the institutional development context 3.2.2 The Mandate of the KMC; b) To examine institutional characteristics of the KMC; After the people's movement in 1989 a favourable c) To develop institutional framework for the climate for decentralisation began. The new constitution implementation of CDS; and of Nepal has made provisions for basic human rights d) To estimate and assess financial and human and democratic freedom. According to the Constitution resource needs to operationalize the proposed of the Kingdom of Nepal 1990 "It shall be the chief CDS. responsibility of the State to maintain conditions suitable to the enjoyment of the fruits of democracy through wider participation of the people in the governance of 3.1.4 Activities the country and by way of decentralisation, and to promote general welfare by making provisions for the This study includes the following activities: protection and promotion of human rights, by 1) Review the current organisational structure of maintaining tranquillity and order in the society". In this KMC and its local bodies; background, it is the responsibility of all related 2) Study the. current problems on networking of stakeholders and institutions, no matter whether they are activities with government and non government government, non-government agencies or private sector, organisations; to support KMC to grow into an efficient and capable 3) Analyse the capability of local political leaders local governing body to attain the following objectives: (KMC representatives) and staff to promote transparency and better understanding of KMC's I) To mobilise financial resources and maintaining problems; of its books of account; 4) Assesses the present institutional capability to 2) To plan and execute physical development determine whether the number, qualifications, planning; background and training of staff are commensurate 3) To employ, manage and utilise quality staff; to provide the necessary outputs in a timely manner 4) To solve environmental problems resulting from required by the KMC; mismanagement of solid waste, drinking water and 5) Develop institutional development strategy pollution; 6) Risk analysis 5) To develop Kathmandu as a city of culture and 7) Recommending M&E for CDS heritage, supporting education and sport; 8) Estimation of budget for the institutional 6) To manage and maintain roads and other subsidiary development of KMC. activities; 7) To encourage local citizens, NGOs and private In the next chapter the context of institutional sector to participate in the activities ofKMC; and development will be discussed. 8) To solve increasing population, housing and poverty problems in the future. 3.2 THE CONTEXT The proposed CDS attempts to address the objectives said above. 3.2.1 Background In this chapter the broad objective envisaged in the 3.2.3 CDS Objectives and Its proposed CDS and its interrelation to institutional Interrelation to Institutional development will be discussed. In this context Development stakeholder analysis, identification of institutions responsible for relevant city development activity, As described in the draft, Kathmandu City Development examination ofKCM as an institution will be made and Strategy TOR 'the principal objective of proposed CDS discussed in the chapter. Finally, a SWOT analysis is for Kathmandu is to assist in improving KMC's livability, presented in the context of CDS to know the internal competitiveness, bankability, governance and strengths, weaknesses and external opportunities and management capacities by jointly working with various threats of KMC. national and local-level stakeholders and bilateral/ '· - ' ' INSTITUTIONAL DEVEl_OPMENT multilateral development partners, in order to utilise the D Monitoring, supervising and supporting local limited resources efficiently through a holistic and governments at district, town and village levels; participatory CDS formulation process'. It is clear form D Promoting community development and the above objectives that the success of CDS primarily mobilisation and integrated rural development; depends on the ownership and participation and thus o Conducting research and training relating to local requires a rational institutional model advocating development and co-ordinating local development efficiency and responsiveness through decentralisation. programmes; D Formulating decentralisation policies and programmes and its implementation; 3.2.4 Stakeholders D Determining the boarder limit of village, city and district; In case of KMC the main stakeholders are the 0 Promoting works for the development of village government ministries, departments, local citizens, women and local technology. <10tels, travel and environmental protection associations, business communities, urban poor communities, slums/ Being the line ministry of the KMC, its roles and squatters communities, local NGOs and INGOs. The responsibilities are highly inter-linked with the MLD. aims of stakeholder analysis is to understand their Without proper co-ordination and networking of their relations with KMC and to examine their interests in activities it is difficult to solve local level problems. In KMC. addition, there are special projects undergoing that are related to the activities of the KMC. 3.2.4.1 Judiciary 10.2.4.3 Ministry of Physical Planning There is a three tier Herarchy of courts in the Kingdom and Works (MPPW) of Nepal: There are two different but interrelated functions of a) Supreme Court MPPW. The Ministry is responsible for legislation and b) Appellate Court planning in the sphere of land use, water supply, c) District Court sewerage and sanitation as well as pollution control. It administers the provision of financial assistance and The Supreme Court is the apex court in the judicial support to municipalities through the Town Development hierarchy. All other courts are under the Supreme Court. Fund Board (TDFB). The Department of Housing and The extraordinary power rests in this court. Any Nepali Urban Development (DHUD)men's recently renamed as citizen may file a petition in the Court to have any law Department of Urban Development and building or any part thereof declared void on the ground of construction (DUDBS) looks after the physical planning inconsistency with the Constitution. with Human settlements and Environment division. The Department of Water supplies and Sanitation (DWSS) In some cases there are provisions to appeal in the and Water Supply Corporation (WSC) handle water Appellate Court and District Court in case any citizen is supply and sewerage. The Kathmandu Valley Town not in agreement witl-t the decisions made by the KMC. Development Planning Committee (KVTDC) has been In addition, there should be co-ordination between these constituted to co-ordinate urban physical planning and courts and the Law and Litigation Department ofKMC. development. The Ministry has the obligatory responsibilities for raising awareness, conservation and improvement of environment, develop skills and 3.2.4.2 Ministry of Local Development capacities of local bodies towards minimizing, (JI;fLD) controlling and managing pollution, towards restoring healthy environment and formulating legislation, The main functions and responsibilities of the MLD regulations, standard guidelines and procedures to include; regulate and enforce implementation measures. o Formulating national policies relaring to local development including administering and co- The main responsibilities of the Transportation Ministry ordinating local bodies; include: alignment and construction of roads and bridges and their maintenance, as well as associated storm drains KMC and NEA can work together with a view to supply throughout the country. The construction Engineers have electricity to the KMC area. to develop sensitivities to the environmental dimension in their professional applications to make effective use of the resources as well as to safeguard against 3.2.4.6. Ministry of Industry (MI) environmental damage. Providing essential infrastructure services to the newly located industrial Ministry of Industry is primarily responsible: districts. Improvement and construction of roads, and highways in KTM valley and outside and selection and D To formulate industrial policy with a view to provision of parking spaces in various parts ofthe valley. economic growth for import substitution and export promotion; I:J Making policy to encourage private sector for the 3.2.4.4 Ministry of Population and development of industries and growth of export; Environment (MOPE) D Developing environmental standards to minimise its negative impact on public health; MOPE is primary responsible for: D Formulating and execution of national level The Ministry has a separate Environment and manpower planning and development policies; Technology Transfer cell which looks at the policy D Establishing networking at the time of related to the workings of the industrial pollution control. implementing population and environment policies The management agency of the industrial pollution I:J Preparing Acts, Regulations and Guidelines ; control project and the liaison and co-ordinating unit of CJ Conducting surveys, studies and research; energy efficiency project are supporting the cell. The D Disseminating information and carry out publicity; Department of Industry (DOl) and, the Department of o Monitoring and evaluating programs; Cottage and Small Scale Industries (DCSI), each has an o Developing human resources; environmental cell. The main functions of these cells o Acting as a national and international focal point are to enforce the discharge standards; to critically in the domain of population and environment. examine EIA and IEE; to issue permit to the industries; and to monitor the discharges. KMC has to co-ordinate various matters relating to population and environment with the Ministry to run long term and sustained programmes. 3.2.4. 7Ministry of Labour and Transport The objective of the ministry is to work out a meaningful 3.2.4.5 Ministry of Water Resources (MWR) balance between the demand and supply of labour and act towards reducing magnitude of unemployment as Ministry of Water Resources is responsible for making well as safeguard the basic rights and well being of the and executing policy to conserve and cover water labour. It has a mandate for institutional provision and potentialities, pollution, as well as its proper and effective legislative measures to regulate employment exchange utilisation. The different offices executing water resource with effective information center, determine labour functions under the Ministry are: the Water and Energy absorbing provinces, promote self- employment Commission (WEC) for research advice and policy - operations with technical assistance and financial stetting on water resources; the Department ofirrigation incentives as well as provide tax concessions to those (DI) for irrigation development; the Groundwater enterprises making investments to promote skill Resource Development Board (GWRDB) for capabilities of the works. groundwater investigation and exploitation; and, the Department of Hydrology and Meteorology (HDM) for collecting hydrological and meteorological data. 3.2.4.8 The Ministry of Finance (MF) The Nepal Electricity Authority (NEA) deals with It prepares and controls government budget and has a hydropower development. The Authority makes policies mandatory role in the instrumentation of taxation and for the production and utilisation of water resources and financial conditioning in support of all government distribution of electricity in the country. In the future activities. Ministry of Finance has become imperative INSJITUT]ONAL DEVELOPMENT . in broadening the understanding for the pursuit of raising 1:1 Developing and suggesting new laws as per needs; the local governments in self- functioning and self- o Providing legal suggestions; contained manner. KMC needs assistance and support to implement its MOF is one of the crucial Ministries for formulating currently available rules and regulations from the national level economic and financial policies. Its main ministry. The role ofMLJPA is to draft the current Local responsibilities include: Governance Act and Regulation. a) Formulating and implementing national economic policies; 3.2.4.10 Ministry of Tourism, Culture and b) Preparing HMG budget; Civil Aviation (MTCCA) c) Controlling and monitoring foreign currencies and administering HM G fund; The main roles and responsibilities of MTCCA are as d) Making necessary provisions relating to public follows: loan; 1:1 Formulate national level tourism, culture and civil e) Formulating policies relating to money, banking aviation policies; and insurance, revenue collection and 1:1 Promote the tourism industry, travel and trekking administration, salary, allowances, travel agencies and other agencies relating to travel, allowances and pension for all different services tourist guide and hotel management training and in the Civil Service; mountaineering and liasing with and getting the f) Maintaining public accounts, carrying out co-operation of international agencies involved in economic analysis of the country and administering tourism; foreign aids; 1:1 Promoting collection, protection and conservation g) Signing agreement with friendly nations or of archaeological objects archaeological international agencies relating to grants and loan. exploration and excavation and research of national history. With the introduction of Local Self Governance Act 1991 KMC is allowed to collect revenue from various sources The Tourism Board the Ministry is responsible for the from within the KMC area. In many cases it requires formulation and implementation of tourism policies in proper coordination with the Ministry to mobilize the country. revenue. In addition, the Department of Customs and VAT Offices can provide information on various revenue coUection matters to the KMC with a view to collect 3.2.4.11 Ministry of Health (MOH) revenue from the local sources. In such a context, the ministry is advised to consider transference of The main functions ofMOH are as follows: responsibility for essential services to the municipalities D Formulating national level health policy; and agree to a revenue sharing arrangement between 1:1 Researching, planning, and developing health HMG and local authorities by authorizing the services; Municipalities to impose new forms of direct taxes and 1:1 Formulating health policies regarding health and thus enlarge its own source of income. nutrition education, health related training, environment health programme, family planning and mother and child welfare, population control 3.2.4.9 Ministry of Law, Justice and programmes; Parliamentary Affairs (MLJPA) 1:1 Formulating policies relating to research, production, quality, abuse, price, distribution, sales, MLJPA is primarily responsible for: and export import of medication; 1:1 suggesting, drafting and reviewing national code, o Research and development of preventive, ordinance, rules and orders; protective and curative medication of allopathic, 1:1 Conducting research relating to existing Nepalese homeopathic and Unani treatment system. law, international law, judicial system and administration; The Health Service Department, as a main part of the 1:1 Reviewing and improving the existing laws; MOH, is concerned with reducing infant mortality rate, CITV. J:)IAGNOSTIC · 'R.EPORT controlling birth rate and expanding the life expectancy for maintaining law and order in the country, preventing of the people. Similarly, many hospitals in the area of and investigating crime as per the existing law and KMC are located under the ministry. Functions ofKMC's controlling vehicular traffic and issuing driving license Health Department, although not overlapped, is closely among other things. KMC has its own Re-enforcement related with some of the functions ofMOH in the KMC department whose personnel are trained by the Nepal area. Police. The Chief District Office (CDO) is a locally authorised body for maintaining peace and security in the District. KMC has to operate together with the CDO 3.2.4.12 Ministry of Land Reform and with relation to the peace and security of the KMC's Management area. The main functions and responsibilities of the MLRM comprises: 3.2.4.14 District Development Committee a) Formulating national policies relating to land reform administration and management; The DDC has amembereach from nine llakas (a political b) Formulating policies relating to land revenue, land boundary within the District), a Chairman and Vice registration and Guthi Sansthan; Chairman, who are elected indirectly by the VDC c) Promoting land survey and conducting geodetic leaders. The DDC Secretariat is headed by the Local survey, preparing topographic maps and aerial Development Officer (LDO), who is deployed by the survey. MLD. The LDO is responsible for executing local development activities and co-ordinating other local Land Survey Department and Land Revenue Department development bodies. can provide enough information about land ownership, area and revenue collecting methods. Th~ documents The District Development Committee is responsible for which are kept in these departments are useful to get implementing decisions made by the District information about land management within the area of Development Council. In· addition, its main function, KMC. duties and rights include: o Formulating, implementing, monitoring and evaluation of district level agricultural policies and 3.2.4.13 Home Ministry programmes; D Formulating drinking water plans for the rural The Ministry is responsible for enforcing law and order areas in the district; ofthe Kingdom. Its other functions include: Q Formulating, implementing, executing, distributing Q Providing central security services for the residence and repair and maintenance of district level hydro of central secretariat, ministries and chief of electric and other energy projects; constitutional bodies; D Formulating works and transportation policy and D Formulating policies relating to control of implementing them at the district level; explosives, traffic control, citizenship, control of D Construction, repair and maintenance of roads government vehicles, vigilance of foreigners and under its authority; deportation, immigration, embarkation/ D Conservation of government and unregistered disembarkation, natural disaster relief operation, lands in the district; registration of vital information, fire fighting, drug o Making policies relating to the welfare of women, abuse control and other functions not assigned to children and the disabled; other ministries; o Formulating plans relating to forest, plant Q Announcing public holidays, urdi and public resources, bio diversity, land conservation; functions; D Recommendation for the establishment of schools Q Protection of international boarders, government on priority basis; houses. o Recommendation based on the viab:e reasons for opening and closing schools; The Police Head Quarter is its central level line D Assisting in running schools by supervising and organisation administering police force at national as monitoring their activities; well for the Kathmandu valley area. It is responsible D Determining wage rate of the labour INSTlTU~fbNAL DEVELOPMENT a Executing programmes relating to abolition and D Birth and death registration rehabilitation of child labour; D Construction and transportation D Documentation, conservation and protection of D Social welfare culturally and religiously important places, 1:1 Drinking water and electricity heritage, language and arts; D Environmental health and improvement o Development of industrial estate in the district; D Fire prevention D Planning and management of district level health 1:1 Administrative and miscellaneous clinics, hospitals, health centres and Health units; and After the promulgation of LSG Act 1999 this Act has a Protection, conservation, expansion, and utilisation been repealed. However, provision ofLSG Act have yet of district level natural, cultural, historical and to be fully introduced. tourism resources; KMC has to co-ordinate with DDC m the 3.2.4.16 Village Development Committee implementation of above said matters. As described in the Local Self-governance Act 1999 the main functions, duties and rights of the VDCs are the 3.2.4.15 The Mtmicipality following: D Executing and motivating agricultural The Municipality is an elected body, constituted in the development programmes including local Haat town/ city area. The municipal board comprises of the Bazar , animal husbandry and pharmacy; Mayor, Deputy Mayor and Elected Ward Members. The D Preparing drinking water project, executing and number of wards depends on the size of the Town/ City. maintaining the project; D Preservation and maintenance of water bodies; The Municipalities of Kathmandu, Patan and Bhaktapur 1:1 Formulating rural road planning, executing it and are the major providers of municipal urban services. repairing and maintenance of roads and bridges; They are elected bodies constituted under the 1:1 Establishment of pre-primary schools and give Municipality Act, 2048 (1991) and are governed by permission to establish the same; municipal boards or councils which comprise of the D Supervision and management of schools; elected ward chairman, presided over by a mayor or 1:1 Establishment and execution of library facility at chairman and assisted by a deputy mayor. Executive rural level; responsibilities are vested in the mayor. The day-to-day 1:1 Providing scholarships for the disadvantaged administration is under an Executive Secretary, a communities, women and rural poor; government official appointed by MLD. The executive D Construction of community buildings, rest houses Secretary has 2 or 3 assistants who are generally along and public toilets; functional lines such as tax and revenue collection, 1:1 Preparing land use plan ; building permits, planning and engineering, sanitation, 1:1 Establish and run hospitals, clinics and health posts; administration and accounts, litigation, and inspection. 1:1 Formulating and executing programmes relating Major activities of the Municipalities include: street to primary health education, cleaning and refuse cleaning; collection of wastes from the interiors up to management; skips; maintenance of water supply pipes; cleaning mud D Executing and motivating to execute forestation and blockages in sewer manholes; approval of septic programme; tanks; minor surface drain construction; street lighting; o Assisting in herbs farming; city management; building permits; and, some health D Formulating programmes relating to forests, plant, and sanitation related activities, bio diversity and soil conservation; D Preservation and promotion of culture and heritage; Under the municipality Act 1991, the responsibility D Promotion of tourism and industry; assigned to the municipalities can be put in the following D Working as a motivator to develop small scale categories: industries; D Protection of monuments and public places D Managing the development of local human D Urban planning and development resources, employment, and self employment D Health and sanitation opportunities at the rural level. 75 CITY DlA:ONOSTIC .REPORT 3.2.4.17 National Planning Commission as a backbone of decentralisation. Priority is given for the institutional development of local elected bodies to Headed by the Prime minister, this is one of the apex make them more responsible by involving them in the national planning body consisting of 5 members. It works local development and construction activities. During in close co-ordination with the relevant ministries in the plan period efforts are being made to implement the developing national level plans, policies, programmes, following policies to institutionalise the decentralisation and priorities. The main responsibilities of the system among the local governing bodies: Commission include: o Formulation of national level plans; a) Development oflocal elected bodies institutionally; 0 Co-ordinating the implementation of the national b) Co-ordination and integration oflocal development level plan among regional and local level offices programmes; and supervising development works; c) Strengthening capacity oflocallevel organisations; o Evaluating development projects and making the d) Development of institutionalised participatory necessary recommendations to the Council of development process; Ministers; e) Mobilisation of Users' Committees and Non- o Estimating Nepal's internal and external resources government organisation; including manpower; f) Transparency in the performance of local bodies; o Monitoring state of environment and deciding on g) Participation of women and disadvantaged measures to be taken to preserve the balance communities in the decision making process; between environment and development. h) Making government machinery responsible and accountable to the local elected body. The Eighth and the current Ninth Plan, documents some important guidelines on the decentralisation and The aims and policies of the Ninth Plan is a guiding institutional development oflocal political bodies. These map for the initiation of institutional development of have been provided below. KMC with a view to implement CDS in the future. The Eighth Plan During the Eight Plan political decentralisation was 3.2.4.18 Federation of Nepalese Chamber recognised as the best means to remove obstacles to of Commerce and Industry (FNCCI) development. The Plan's document mentions that decentralisation goes beyond the concept of formal FNCCI formulates policies on urban development and government and involves the freeing of local non- co- operates with the government for implementation. governmental and private organisations as well. The role It has sub- committee on Environment and Technology of the government is therefore not to dictate but to Transfer. The FNCCI also promotes the awareness support the development activities of non-governmental programs on mitigation measures in their industrial organisations. Realising the importance of local establishments. government the Eighth Plan envisaged to support and assist all development activities implemented by the A number of non- government organisations like Green people at their own initiative and to seek to develop the Camp, Nepal Environment Journalists are working as local government as well as non-government interest and pressure groups. The advocacy of these organisations involved in such activities. To realise the organisations is for the enforcement of discharge above objective the Plan made the policy to upgrade the standards and relocation of some industries. working capacity of the local bodies under the leadership oflocal representatives. The Plan emphasised three main policy improvement measures, they were, institutional, 3.2.4.19 NGOs and INGOs policy level and operational. NGOs started to function in Nepal from the early' 60s in The Ninth Plan the form of welfare associations such as Family Planing One of the objectives of the Ninth plan is to make local Committees, Nepal Red Cross Society etc. In a more elected bodies institutionally capable of making coordinated manner, NGOs started only after the themselves accountable to the local people. The Plan constitution of the Social Service National Coordination emphasises the importance of the local governing unit Council Act in 1977 by His Majesty the King. Under li\lsl'rruTioN.AL'DE:vELOPMENT·· the SSNCC, there were six sub- committees, which MLD and KMC. In addition, proper conservation and included Health Service, Handicapped Service, Child maintenance of heritage and culturally important places Welfare, Community Service, Youth Activities, and is necessary for the airline business. Women Service. The entire social I voluntary organisation need to be registered under the council. In There are 6 five star hotels within KMC. Similarly there 1982, a full-fledged ministry was set up in the name of are many four and three star hotels whose business, to Ministry of Labour and Social Welfare, whose function the larger extent, depends on a clean environment, was to be a link between the NGOs (through SSNCC) culture and heritage and prompt service delivery and the government regarding the social welfare activities of the KMC. programme in the country. Similarly, more than 95 percent of travel and trekking Afler the restoration of democracy in 1990, when the agencies are located in Kathmandu. They are concerned registration process was liberalised, the numbers of with the KMC service delivery and functional activities. NGOs have dramatically increased. By 1994, NGOs affiliated with the Social Welfare Council alone, stood Airlines, hotels and travel agencies, are and will be, good at l,942. NGOs have also gained their capability and sources of revenue for the KMC if it succeeds in resources with the support of other IN GO's working in providing prompt and quality services to them. Nepal. More than 7000 NGOs and 80 INGOs are operating in 3.2.4.21 Diplomatic Missions and Donor the Kingdom of Nepal (Social Welfare Council, 1995). Agencies About 1000 of these are located in the Kathmandu Valley. Similarly, according to the Nepal Institution A number of diplomatic mission and donor agencies Manpower Directory 1994, in 1992 there were 55 INGOs reside in Kathmandu valley. There are 17 multilateral based in Kathmandu Valley. donor agencies and 11 major Bilateral Donor Agencies. Many of these agencies are interested in the work of Since KMC has to deliver its services to different wards KMC. Proper coordination and net working with these relating to health and sanitation, environment, housing, donor agencies could be beneficial for the KMC. The settlement of squatters and slums and so on it is World Bank, EU, UNDP, US AID and ADB are (expected to serve a population of about 729,690 in involved in the various programmes of KMC. 2001 ). Thus, it is difficult to deliver such services only with its current organisational structure. It is imperative to develop a network with many of the NGOs and 3.3 EXISTING INSTITUTIONS: INGOs to participate in delivering services to the RESPONSIBLE FOR CITY citiizen in the above social matters. Moreover, NGOs DEVELOPMENT ACTIVITIES and INGOs are working as pressure groups against KMC's and HMG's health, sanitation and 3.3.1 Background environmental policies. There are a number of institutions engaged in the city development activities. Some are ministries, some are 3.2.4.20 Airlines/Hotels/Travel Agencies departments and some are donor agencies. Unless and until there is an operational co-ordination among these There are 16 airlines conducting international flights and institutions there will be duplication of roles which will 8 airlines making local flights to different national and create problems of networking in the various socio- international destinations. All airline offices are economic activities at the city level. Realizing this fact, concerned about the increasing environmental problems in this chapter various institutions are identified which dm;: to the mismanagement of refuse collection and are working in line for the development of the city in disposal practice, which is the joint responsibility of the Kathmandu valley. 3.3.2 Institutions involved in the City Development Activities S.No. INSTITUTION FUNCTIONS AND ACTIVITIES 1. Ministry of Local Development Formulation of national policies relating to local de- velopment including administering and co-ordinating local bodies. 2. Ministry of Physical Planning and Making physical planning, road management at the Works national level, constitution of Town Development Committees 3. Ministry of Tourism and Culture Formulating national level tourism, culture and civil aviation policies 4. Ministry of Water Resources Making national policies on water resources 5. Ministry of Population and Envi- Formulation and execution of national level manpower ron1nent planning and development policies. 6. Home Ministry Formulating policies relating to control of explosives, traffic control, citizenship, control of government ve- hides, vigilance of foreigners nd deportation, immi- gration, embarkation/ disembarkation, natural disas- ter relief operation, registration of vital information, fire fighting, drug abuse control and other functions not assigned to other ministries. 7. Ministry of Education Pre-primary schools, support for other schools, scholar ship for disadvantage community and adult literacy programme. 8. National Planning Commission Making economic development planning and formu- lating decentralisation policies and programmes for the planned period. 9. District Administration Office Maintaining Law and Order, rent fixation, recovery of municipal dues from the defaulters and non payers and amounts of irregular expenses as per the Audit reports. Committee for determination of schedule of rates for various construction works and wage rates for labour. 10. District Road Office Road extension and improvement of roads under the Department of Road 11. District Police Office Maintaining Law and Order and Traffic management 12. District Revenue Office Land registration, land revenue collection. 13. District Tax Office Collection of different types of taxes other than those collected by the Excise Office. 14. District Land Reform Office Solve land dispute cases, issue of land ownership cer- tificate. 15. District Maintenance Survey Office Surveying, plotting and registration of land 16. District Court Office Provide judgement on dispute cases 17. Town Development Committee Physical plan formulation, development of buildings, roads and prescribe standards for other activities suit- able for the town. 18. Nepal Water Supply Corporation Drinking water supply, development of sources and distribution, provision of public taps, pipe line exten- sions, drainage, sewerage construction and manage- ment. .. .. IN$TITUTIONAL DEVELOPMENT S.No. INSTITUTION FUNCTIONS AND ACTIVITIES 19. Nepal Electricity Authority Street lights, line extension and maintenance. 20. Town Development Fund Board Provide grants and loans for Municipal infrastructure and income generating projects. 21. District Development Committee Functions, responsibilities and duties relating to agri- cultural development, hydro electricity, works and transportation, land reform and land management, women and disabled, forests and environment, edu- cation and games, determination of wage rates, irri- gation and landslides, communication, development of language and culture, small scale industries and health services in the district level 22. Private Housing Companies and Develop and provide developed plots and houses in Land Development Companies urban areas. 23. Urban Development through Technical and financial support under Nepal German Local Effort Project co-operation project for supporting urban planning and Municipal organisational structure development programme in collaboration with MLD and MHPP and TDFB for loans and grants programme for Mu- nicipalities. 24. Chamber of Commerce and Management of stock and retail trading, price control Industry and commodity price list publication in the municipal areas. 25. Federation of Nepal Chamber of Protecting rights of business and industrial commu- Commerce and Industry nities, advising government in the commerce and in- dustry related matters. 26. The Kathmandu Valley Mapping Commenced with the technical support from the Programme (KVMP) Commission of European Communities (CEC) to improve the planning and implementation capabili- ties of KMC through the establishment of an Data Based Management System, develop participatory planning approach to prepare integrated action plans. 27. Institutional Strengthening of With the technical support of ADB the project aims Kathmandu Metropolitan City to improve the overall organisational competence of KMC, increase the effectiveness of KMC in mobilising and managing its financial resources and improve KMC's capacity to deliver urban services. 28. RUDO /USAID Programme To provide training support and to help KMC imple- ment corporate accounting system. 29. The Urban Governance Initiative Supported by the UNDP focusing on good gover- nance in environmental management and is support- ing the Information Department of KMC. 30. Nepal Urban Sector Strategy Th(:": ADB provided a technical assistance to HMG to prepare the Nepal Urban Sector Strategy. 31. Kathmandu Valley Development Plan The Kathmandu Valley Town Development Commit- tee (KVTDC) is in the process of preparing the Kathmandu Valley Development Plan 2020. 32. Housing Finance Committee Constituted under Ministry of Physical planning and works provides housing loans to the local citizens 79 CITY DIAGNOSTIC REPORT S.No. INSTITUTION fUNCTIONS AND ACTIVITIES 33. Department of Building Making design and drawing of government buildings, making building codes and criteria 34. UN Park Committee Under MPPW to make park beside Bagmati rivers 35. Kathmandu Valley Town Develop- Preparation and execution of land use development ment Committees plan and housing plan 36. Water and Sanitation Board, HMG Preservation and maintenance of water bodies 37. Kathmandu Valley Development Established under KVDA Act 2045. Its main func- Authority tion are to develop the entire Kathmandu Valley in a planned manner, to formulate and implement physi- cal development plans, and to provide the people of the valley with basic services. However, this is not operating currently. 38. Kathmandu Urban Development A multi-sectoral project designed to improve the ur- Project ban environment and productivity through an inter- action of the implementation of physical development works and policy development with particular empha- sis on local resource mobilisation. 39. Pashupati Area Development Established to conserve, protect and develop Pashupati Trust Nath Temple's surrounding areas. 40. Solid Waste Management andRe- The Centre is established aiming to improve the solid source Mobilisation Centre waste management in the valley, and formulating poli- (SWMRMC) cies relating to the enactment of solid waste manage- ment projects. From the above presentation it is clear that there are 3.4.2 Policies, Acts and Regulations many institutions involved in similar areas from socio- economic development to environment problems which There are different policies and legislation which have are in keeping with KMC's activities .. It is imperative made, or are making, provisions for the development of for the KMC to coordinate its activities to develop its KMC and its environment. service delivery capacity among other institutions too. I. The constitution of the Kingdom of Nepal 2. Administrative Reform Commission-1991 3. Land Management Act 1967 3.4 REVIEW OF EXISTING POUCIES, 4. Nepal Environmental Policy and Action Plan ACTS AND REGULATIONS IN THE (NEPEP) 1993, CITY DEVELOPMENT PERSPECTIVE 5. Aquatic Animals Protection Act, 2017 ( 1960), AND CDS IN PARTICULAR 6. Solid Waste Management and Resource Mobilisation Act, 2044 ( 1987), Regulation 2046 3.4.1 Background (1989), 7. Pashupati Area Development Trust Act, 2044 From the presentation in the last chapter it is clear that (1987), there are many institutions involved in activities for the 8. Kathmandu Valley Development Authority Act, city's development, many of which intersect and overlap 2045 (1988), in practice. The fundamental challenge for KMC is how 9. National Environment Act 1992 to work in coordination with these agencies. fn this chapter 10. Water Resources Act, 2049 (1992), and Water different policies, acts and regulations will be reviewed Supply corporation Act which directly or/and indirectly makes provisions for 11. Industrial Policy Act 1992 management and development of Municipality. 12. Local-self Governance Act and Regulation 1999 80 INSTITUTIONAL DEVELOPMENT ( 3.4.2.1 The Constitution of the Kingdom of Nepal: b) Health Related: 1990 clause 25 (4) states that "It shall be the chief D Establishment, execution and management of responsibility of the State to maintain conditions suitable health centres and health posts to the enjoyment of the fruits of democracy through D Family planning and population education wider participation of the people in the governance of D Prevention and treatment of viral diseases and the country and by way of decentralisation, and to epidemic promote general welfare by making provisions for the D Environmental health protections and promotion of human rights, by D Others related to the pubic health maintaining tranquility and order order in the society". It provides a clear mandate for the decentralisation of c) Housing and Physical Developments Related: authority, responsibilities and resources to the local D City drinking water (up to 50,000 people) political bodies. D City area drainage system D City development planning In addition., time to time Directives are issued by the D Housing development (in the less developed areas) HMG which also affect the functions ofMunicipanities. D Refuse collection management D Environment conservation 3.4.2.2 The Administrative Reform Committee 1991: CJ Development of green belts, parks and recreation Realising the need to give some of the authorities of the centres government to the local elected bodies, Administrative Reform Committee 1991 (ARC 1991) made the d) Internal Information and Management Related: following recommendations to devolve: D Registration of births and deaths CJ Fire brigade a) functions that are to be delivered by co-operating D Management of local markets and co-ordinating local government offices, partially owned government organisations and non- e) Forests and Environment Related: governmental organisations; D Controlling watershed areas and soil erosion with b) functions that are to be delivered by utilising local local participation skills, resources and capacities available at the local level; f) Miscellaneous c) functions that are to be delivered according to local D Fire brigade and slaughter house arrangements conditions and imperatives by using different work CJ Supervision of religious places, temples and public processes and methods; areas. d) functions that are to be delivered according to willingness of the local people by being Moreover, the following major recommendations have accountable to them; been made to guide the formulation of the Local e) services that are to be delivered in the integrated Governance Act by the ARC report: form at the local level and; f) functions which can be accomplished only with 1) According to the ARC repmt although District the help and participation of the local people. Development Committee is granted as a focal point of all elected bodies on different levels, all ARC made clear recommendations for the delivery of functions and responsibilities in the municipal area the following functions by municipalities: should be autonomously executed by the concerned municipals. The ARC report clearly mentions that a) Education and Culture Related: while making acts, provision should be made to D Adult literacy programmes authorise Municipals for making decisions; and D Management of pre-primary and primary education formulating and implementing M&E ofMunicipal o Assistance and promotion of middle and high planning. schools 2) There is a need for a planning unit at the Municipal D Development of sports and physical health level. Employees should be trained and developed o Establishment, execution and management of to make plans and to execute it properly. HMO libraries and clubs 81 CITY DIAGNO$TIC REPORT > has to take responsibility to strengthen the plan The act provides for the establishment of Solid Waste execution capacity of the local governing agencies. Management and Resource Mobilisation Center 3) With a view to make the Municipal financially (SWMRMC) as an autonomous body. It is empowered strong, in addition to a certain percentage of central to establish special waste disposal facilities and direct tax, it is necessary to authorise municipals to collect producers of such waste to use it. The center also advises additional land tax in urban areas. local authorities. 4) With a view to make decentralisation effort successful and effective it is essential to select Solid Waste Management Act, Sec.3.1 function of the qualified employees and to build up their morale Center, some of which are as follows: and attitude. Efficiency of employees depends on o Plan, implement and monitor activities regarding the selection of qualified persons, opportunities for waste management; career development, provision for appropriate o Construct and maintain physical infrastructure training and system of rewards and punishments. It required for waste management, with the assistance is therefore, necessary to constitute a Service of municipalities if necessary; Commission for Local Elected Agencies. To make o Provide containers at appropriate places and on the local agencies services more effective it is request for collection of waste; necessary to: institutionalise employees recruitment, o Make provisions for transferring and proper selection, transfer and promotion systems; make disposal of collected waste without polluting the employee service permanent and make provisions area; for pre-service and service training. o Produce briquettes, compost and Bio-gas from 5) In all cases, tre Executive Officer should be waste; deputed from the line Ministry. o Make provisions for recycling waste; o Categorize and manage hazardous waste; 3.42.3 The LandManagementAct (1967) emphasises 0 Conduct research activities on waste management; the need to develop a physical plan for the Kathmandu o Provide technical assistance, training, and create Valley, and a Master Plan for Drinking Water and public awareness in individuals, institutions and Sewerage where initiative needed to be taken in terms the general public; of having a firm will at the decision making level. o Construct public toilets, slaughter houses and bathing places where necessary; 3.4.2.4 Nepal Environmental Policy and Action Plan, o Use mass media to mobilize public participation (1993) the most recent environmental policy document in solid waste management' and, developed by HMG realises and proposes the urgent o Co-ordinate the activities of various agencies. need for an action plan for urban and industrial development: WSC and SWMRM Acts have legal coverage. SWMRC o Provide legal measures to prevent and control air/ Act is exhaustive and empowered to control waste water pollution; disposal but these plans are very weakly implemented. o Improve effici')ncy of water allocation among The solid waste management is referred to three competing needs; agencies: (I) Municipality (ii) NWSC, and (iii) 0 Reduce constraints facing NGO's to promote SWMRC. community based development; and ; 0 Integrate environmental consideration with 3.4.2. 6 Pashupati Area Development Trust Act is development objective as well as economic authorised to provide sewerage management as a pollution incentives to encourage environmentally benign control measures and to also manage water supply, water activities. sources and sewerage systems, etc. It is empowered to regulate a planned development of the area, and demolish 3.4.2.5 Solid Waste Management Act makes any object for this purpose. The Act is limited to the provisions for managing accumulated solid waste protection, conservation, and management of the properly and to be used as a resource itself. Pollution environment of only a small part of the Bagmati River. generated from the solid waste needs to be controlled to ensure protection of public health and maintain essential 4.2. 7 Kathmandu Valley Development Act aims to health service facilities. reconstruct, extend and develop towns with reference 82 ;_;;-·,· '" INSTITUTIONAL DEVELOPMf:.!'JT to accommodate the population pressure and urban and a reliable drainage/ sewerage network in different growth within Kathmandu Valley. Essential services and parts of the country to maintain public health. emerging facilities are made available to the people in common through a planned physical infrastructure. This Act established the Nepal water Supply Corporation Health support facilities are emphasised in income (NWSC) as the legal authority, authorising it to set and generation undertakings for the common people in a enforce water fees, prosecute illegal connections and sustained environment. prevent misuse of drinking water within 12 towns, over which it has jurisdiction. It assigns responsibility to the 3.4.2.8 National Environment Act defines, Solid waste, Nepal Water Supply Corporation for providing urban Emission/ Effluent, Bio- diversity, National Resources, water and sanitation, controlling water pollution and, Environment, Pollution, Conservation, Initial empowers and directs the NWSC to build and maintain Environment Examination (lEE), Environment Impact urban sewerage systems. Assessment (EIA) and designates to the "Ministry of Population and Environment" as the concerned executing The Industrial Policy Act, 1992 lists air pollution prone authority. In the act there is provision for appointing an industries, such as cement, brick and stone crushing, as Environmental Inspector who is responsible for " industries affecting public health and environment", minimising and controlling pollution and processing the and requires them to obtain permission for their papers enclosed with IEE/ EIA Reports. To enforcethese establishment, extension and diversification. rules the Inspector is authorised to fine to the obstructing party an amount not exceeding RS. 50,000. Industries in "A" category will not be allowed to be located in the Kathmandu Valley, including the cement industry. 3. 4.2.9 Water Resources Act is an important legal However, if an industrialist wishes to establish "A" type instrument to give absolute recognition to the state's category industry the licenses may be issued on the ownership and control of all national water resources. It condition that an effluent treatment plant will be installed. authorises the government to issue water rights/ permits or Category "B" industries, which includes the brick industry, licenses for water resources development to agencies in must be located at least 5 km away from the city area and any sector as covered by the Act. But the use of resources other densely populated areas. Licenses for both categories for drinking waster, domestic and group or community "A" and "B" industries will be issued on the condition irrigation purposes which enjoy the order of priority under that they have to operate without giving any trouble to the Act, are absolved from requiring licenses. others and without causing environmental pollution. Furthermore, it empowers the government to prescribe 3.4.2.11 Local Self-Governance Act and Regulation and enforce standards and pollution limits in order to comprises the following principles and policies of maintain the quality of water resources (Sec. 19.1 ). it decentralisation : also prohibits the pollution of water resources by any 1. Devolution of power, responsibility, means and means, which exceeds the prescribed pollution tolerance resources; or limits, including the discharge of industrial wastes, 2. Building and development of institutional potions, toxic or hazardous chemicals etc. The absence mechanism of appropriate institutional authority and procedures to 3. Devolution of power to collect and mobilise means enforce these laws could make the legislation ineffective. and resources 4. Local bodies to be oriented toward establishing a The Ministry of Water Resources exercises the control of civil society water resources. The agencies responsible for drinking 5. Arrangement of effective mechanism to make local water supply need to be licensed by MWR to operate their bodies accountable to the people drinking water supply services. In such a situation any rules 6. Encouraging private sector for participation. being developed may complicate the problem. The rules presently being developed by the water sector line agencies There are five parts and 286 sections in the Act. The will have to address these jurisdictional issues. five parts are: introduction; provisions relating to Village Development Committee; provisions relating to 3.4.2.10 Water Supply Corporation Act is promulgated Municipality; provisions relating to District to 'establish and activate the Water Supply Corporation Development Committee; and provisions relating to to provide for and manage a clean drinking water system General Provisions of the local bodies. 83 ' ' ~i, : '<:' .DIAGNQSTIC RE8QRT In the first part there are definitions of the different judiciary rights, formation of Moderation Committee, terminology used in the Act. In the third part provisions list of Moderator, use of rights, process of decision relating to Municipality/Metropolitan are discussed. It making, procedures used for legal cases, rights to appeal starts from section 72. and implementation of decisions. Chapter I: This chapter states methods of determining Chapter VI: In this chapter the process of plan city territory, division of Wards, changes in the territory formulation and execution is discussed. and constitution of Ward Committee. Formulating Plan: To formulate a plan for the coming Chapter II: In this chapter provisions relating to the year it has to prioritise and select those plans: Municipal Council, such as, its fmmation, tenure of its members, qualifications of membership and Cl Which is productive and result oriented; disqualification of members. Cl Which can assist to increase employment, income and living standard and assist in reducing poverty; Chapter III: In this chapter the provisions given relate Cl Which can be implemented with minimum costs to the formation of municipality, self-governance, tenure and with maximum people participation; of members, oath of office, resignation process of the o Which can be executed by local materials, Mayor and Deputy Mayor, qualifications and resources and skills; disqualification of members, declaration of property and Cl Which can provide direct benefits to women and classification of municipalities. children; Cl Which conserve and promote environment protection. Chapter IV: In this chapter des,cription of meetings and working procedures have been given, for example that Follow directives: The municipal however, has to the meeting oft~e Ward Committee will be held, at least, follow directives from HMG and DDC while preparing once in a month. In case of the Municipal Council, the such plans. Similarly planning should have to be Mayor has to call meetings at least twice in a year. The formulated based on the demands for projects of WCs, Secretary of Municipal will function as the Secretary of UCs, and NGOs. the MC. The majority is 50 percent of the total number of members who attended the Meeting. Decisions in the Periodical plans: Each Municipality needs to formulate a meetings are made by asking each member to express periodical plan for at least five years for the development his or her vote verbally at his or her respective turns; by of its area. This planning has to be approved by the MC. asking to rise hands for and against the resolution; and This plan includes sectoral programmes. by grouping the members in two groups, persons voting for the resolution in one group and the persons voting Plan Formulating Process: The Regulation also against the resolution in the other. The Secretary is provides the detail plan formulation process for responsible for recording the decisions taken at the formulating the plans, which include: meeting in the minute-book and getting it signed by the D Estimation of the amount to be derived from the members present in the meeting. resources of the Municipality; D Estimation of the grant from DDC; In the Regulations, there are further provisions for the o Estimation ofthe amount to be received from DDC; formation of sectoral committees, such as, Infrastructure Cl Estimation of the resources to be received from and Construction Development Committee, Agriculture, sectoral bodies; Forest and Environment Committee, Population and D Estimation of the resources to be received from Social Committee, Organisation and Administration financial and semi-governmental bodies; Committee and Water Resources and Land Committee. o Estimation of the resources to be received from Similarly, the municipal can form Advisory Committees national and international non-governmental with a view to provide necessary opinions, advises and organisations and associations recommendations on any subjects within the working Cl Estimation ofthe amount to be received from other areas on which the Municipality has requested for. persons or institutions. Selection of the project: Project selection is based on Chapter V: In this chapter the judiciary rights of source maps and feasibility study reports. Only those municipalities are presented. Under this chapter, projects, which are favourable to environmental INSTITUTIONAL DEVELOPMENT preservation and protection, are selected. Maximum o Whether or not the particulars, bills receipts, people's participation and local labor contributing documents of the expenditures have been duly kept; projects are also selected. Once the cost is estimated of the project, the project is selected on a priority basis. The Auditing: The Municipality has to audit its books of Municipality is reasonable for informing the local people account. The MC will select the Auditor. After the final of the selected projects sothat they are aware of the audit it should be submitted to the Account Committee projects and its location. including the financial statement. Coordination During policy and program formulation, Chapter- VIII: The chapter includes provisions relating coordination has to be done with government, non- to taxes, fees, service charge and building constructions. government and donors on following issues: The Act and Regulation makes provisions and provides rates of land revenue and house and land tax, rent tax, D To avoid duplication of investment of municipality enterprise tax, vehicle tax, integrated property tax, and concerned line agencies. entertainment tax, commercial video tax, parking fee o ComplementarJ coordination among the investors and service charges. D To maintain the roles of the consumers between the both sectors Provisions Relating to Employees: In chapter 1 of part o To identify the system that maintains the benefits 5, provisions are made on vacancy fulfillment, of the local citizen's operation, time frame and disqualification of candidate and formation of vacancy implementation of various activities. fulfillment committee. The Secretary, as per the decision of the concerned local body, appoints the candidate Plan Implementation; Municipality level programmes recommended by the vacancy fulfillment Committee. whether it is from municipality source, district development grant, HMG grant, national or international II. CDS Perspective: A local body may appoint any NGO grants have to operate under a financial person in the technical post, of the approved list of mobilisation system. Once the project is selected, an posts, on contract. According to the provision in the operational calendar has to be prepared and maintained. Regulation any employee, appointed for the first time No NGO's activities are allowed to be implemented shall be put on a probation period of one year. In without the municipality's census and agreements. chapter 2 of pmi 5 provisions are made for the transfer, promotion, the service period required for promotion, Execution and Mana;sement: The Secretary has to make basis for promotion and rights for appeal. Chapter 3 project execution schedules. The Secretary implements describes regulations for punishment, stoppage of these plans in co-ordination with the Ward Committee. remuneration increment, removal or dismissal from Projects which are directly relating to the people are to service, authority to impose penalty, procedures relating be: implemented by the local NGOs. to punishment, actions of suspension, end of suspension, appellate authority, procedures for appeal, Project Review and Evaluation: Each project needs to be sending of appeal and getting remuneration and reviewed and evaluated. There should be a quarterly allowances if reinstated in the service of the local body. review of municipal level projects. In this context the In the next part provisions are made for different leaves. Municipality has to constitute a Supervision and The last chapter of this part has provisions for Monitoring Committee comprising ofthree members. The remuneration, deputation, training, resignation, Committee supervises and monitors the following matters: compulsory retirement, work performance evaluation, Dashain allowance, conduct of employees, employee D Whether or not the project is being implemented welfare fund, treatment allowance, additional financial as per the determined calendar; assistance and gratuity. o Whether or not a regular supervision has been made by the technician; In pmi six The Regulation makes provisions for transfer, o Whether or not the works have been done as per establishment of sectoral section, oath of office, the fixed standard; procedures of certification of relationship, procedures o Whether or not there is progress in the for granting approval to build cinema hall, delegation implementation in proportion to the expenditures of powers, bi-laws may be framed, guidelines may be incurred in the project or programme; framed and repealed and saved. 85 cri.Y 'oiAGNosT!c. REPORT 3.4.3 Facilitating Implementation of Executive Officer. Organisation structure of the KMC CDS comprising of 12 departments and 33 sections. The Mayor is the head of the KMC elected directly by the Since CDS is a programme package including various people of the 35 Wards in the KMC. One Deputy mayor, dimensions of city development it can not be implemented one Chief Executive Officer, Department Chiefs and without a proper legal base and institutional capacity. Section Chiefs support his day-to-day work. Currently, Thus, the success of CDS is only possible when there are there are 2,475 staff (This figure also includes the total clear rules and regulations, missions, objectives, number of ward level staff) working from the executive institutional capacity and capacity to perform effectively. officer level to the lowest sweeper or equivalent level. There are many provisions in the Act which principally Similarly four ward Members (including one women empower all the municipalities of the country to act member) represent each Ward Committee (WC) and one autonomously. However, due to the poor resource Ward Chairman elected directly by the people. mobilization capacity of the municipalities they have to be dependent on the local development fund of the government. This trend extends control of government a. Metropolis Council machinery over the activities of Municipality. The Metropolis Council (MC) is one of the vital With the analysis of above policies, acts and regulations organisational body ofKMC. Members of the MC include it is clear that there are overlapping in the roles and the Mayor, Deputy Mayor, elected body of the WC and a responsibilities of other institutions with the KMC. There minimum of 6 or a maximum of 20 nominated members are no clear cut demarcations of roles of the municipality from within the KMC territory, representing women, over the authority in roads, water resource management disadvantaged and backward communities. The detailed and collection of taxes, fees and charges. Whereas the functions, rights and duties of the MC as stated in the KMC's authority demands for a local government status Local Self Governance Act 1999 (LSGA) are as follows: from the act, it is not stated anywhere in the act to 1) To pass the budget, plan programmes as submitted recognize a local body as the local government. It means by the Metropolis; that there is a difference in the basic philosophy of the 2) To pass tax, fee and charges proposal as proposed Metropolitan management between the KMC authority by the Metropolis; and the government. 3) To pass proposals relating to taking loans or selling fixed assets or transfers; 4) To discuss the discrepancy that are mentioned in 3.5 KMC AS AN INSTITUTION auditors report and direct the KMC to clear the discrepancy, if any; 3.5.1 Background 5) To pass positions created, salary, allowances and other facilities to be provided to employees from In this part of the chapter, current organization and its internal sources; management of the KMC shall be examined with a view 6) To direct the Metropolis after evaluation of the to implement CDS. After evaluating the current Metropolis administrative functions; institutional framework a SWOT analysis will be made 7) To direct the Metropolis after the evaluation of to understand the internal strengths and weaknesses and development works within the territory of the external threats and opportunities of the KMC. Metropolis; 8) To pass regulations of the metropolis; 9) To evaluate whether or not the directives given in 3.5.2 Organisation and Management connection to the proper arrangement and of the KMC mobilisation of the amount collected from grants or other sums by HMG and from the taxes and The Metropolis Council is an apex body of the KMC. fees, have been properly followed, and to give the At the top of the management hierarchy the main bodies necessary directives to the Metropolitan; are the Metropolis Board, Advisory Board, Office of 10) To issue necessary directives, subject to the Act the Mayor and Deputy Mayor and Office of the Chief and Regulation, in order to remove the hurdles that Executive Officer. In addition, there are other offices may arise in the functioning of the metropolitan supporting the Council, Board, Mayor and Chief and Ward Committees. ------- I Improved Organizational Structure Kathmandu Metropolitan City Office --jAccount Committee and other committees J L--------r------~ Ad·iisory Board Different Committees JPnotocol & Mayor's Secretariat J I Jury 1-'1ann1ng commission 1--- _ .... ..1 Deputy Mayor Public Health Dept. Urban z Health Section /) -1 '(=i c -1 Food & Drug 5 Section -~ ·_:r :,~ < m r Total Departments ""d Sections: I "0 Pmpo sed structure: Previous structure :."U No. of Department- 12 No. of Department- 11 s: No. of Section = 33 No. of Section = 43 m z :-I ;r~ . ·. . . . . . b~~§NoSTIC . In the last two I three years there has been substantial 3. To implement or cause to be implemented decisions progress in the handbg of Council meetings. However, made in the Metropolitan and the Metropolitan there are still many problems to be solved: council a. The Councils meetings are not timely held and it 4. To supervise and control or cause to be supervised is difficult to manage two meetings in a year. and controlled so of Metropolitan daily b. Instead of making guidelines for the future administration development of KMC the meetings are held in an 5. To make recommendation as referred to in the act extremely political background keeping the 6. To take care and repair and maintain or cause to development agenda behind the scene. be cared and repaired and maintained c. During the meeting, many of its members are Metropolitan's fixed and variable property concerned with the sum of the budget rather than 7. To make necessary arrangement to formulate and the nature of the development programmes. For plan a budget other works, too, the Committee focuses on the 8. To allocate functions to ward members input rather than the output. 9. To settle or cause to be settled the unsettled d. The decisions made by the committee is not amounts as seen from the auditing, and the amounts properly followed, given as advance from the Metropolitan 10. To co-ordinate or cause to co-ordinate the governmental, non-governmental and financial b. Accounts Committee organisations within the Metropolitan area. An Accounts Committee, has been constituted to report during the council meeting informing them about the e. Functions, Duties and Power of Deputy collection of capital as estimated in the budget, execution Mayor of the programme as stipulated in the annual budget and on the matters of regularisation, realisation and The following are the main functions, duties and power settlement of the unsettled and irregular amounts. In of the Deputy Mayor pursuant to this, it is the duty of all concerned to make available the documents demanded by the Accounts o To work as an acting Mayor in the absence of the Committee and to be present and give one's own advice Mayor and to exercise the powers of the Mayor and opinion at the Accounts Committee. It has to conduct during the time of working as the acting Mayor meetings, maximum number being six, in one fiscal year. o To take part at the meetings of Area-level Service Centres o To carry out other functions as prescribed by the c. Advisory Committee Metropolitan or the Mayor. Advisory Committee constituted according to LSGR Act-1999 consists of members from different social, f. Functions, Duties and Powers of academic and technical backgrounds. The main duty of Members the Committee is to provide necessary opinions, advise and recommendations on various subjects within the Following are the functions, duties and power of working areas that the KMC has requested for. members as prescribed in the Act: 1. To formulate and submit ward level development works in the Metropolitan d. Functions, Duties and Power ofthe Mayor 2. To manage to sent feasible planning from Users' Committees and NGOs after making discussion at Functions duties and power of the Mayor as describe in the ward level the Act is presented below: 3. To submit the particulars as per demand relating to ward 1. To call meetings of the Metropolitan Council and 4. To assist UCs and NGOs to select and formulate Metropolitan planning 2. To keep or cause to be kept books of accounts and 5. To make recommendation as referred to in the a~t other documents securely 6. To assist to manage supply 7. To assist the Mayor in the formulation of plan and 4. To document programmes that have been executed programme ofthe Metropolitan by the User Committees and NGOs; 8. To submit the roaster of the plans and programmes 5. To maintain books of account : income and prepared by the Community Based Organisation, expenditure, auditing, clear discrepancies, and Association, and consumer committees to the collect or cause to collect the amount of Metropolitan through Ward Committee cliscrepancy in pursuant to the act; 9. To carry out other functions as prescribed by the 6. To incur within the limit of the budget, sanctioned Metropolitan or Mayor. with a view to implement decisions; 7. To account and conserve fixed and variable property of the Metropolitan; g. Functions, Duties and Power of Ward 8. To supervise and control the a\.iivities of the employees Members deputed fromHMG and employees ofthe Metropolitan; 9. To be present in the Metropolitan meeting. The following are the main functions, duties and powers 10. To maintain a record ofthe population status within of the ward members: the Metropolitan territory; 11. To be present in the Metropolitan and MC l. To assist the Ward Committee in various works Meetings, make minute of decisions, keep relating to the development and conservation of decisions register and verify decision; our heritage and culture, and other natural 12. To take administrative control ofthe Metropolitan staff. resources; 2. To assist the Ward Committee in formulating programmes and action plans and to implement i. City Planning Commission these programmes and action plans; 3. To notify the Ward Committee whether the City Planning Commission is another important part of construction work within its territory is as per the the KMC responsible for providing expert services to rules or not; the KMC, its plans and policy implementation, assisting 4. To notify the Ward Committee on the status of the elected representatives in many ways and monitoring contract work or user committee or the departmental performance and activities. The main development work executed in Amanat; objectives of the CPC are as follows: 5. To assist the collection of taxes, fees and charges 1. To manage expert services for KMC as sanctioned by the Metropolitan Council; 2. To play a role of bridging gaps between the policy 6. To assist the Ward Committee to keep the ward making body and the executing body clean and healthy to live in 3. To assist departments and sections in implementing 7. To assist the Ward Chairman in the formulation of plans and assurance of results the plans and programmes of the Ward; 4. To assist departments and sections to take up their 8. To carry out publicity works to inform the local role effectively people about the needs, importance and the utility 5. To assist KMC's elected representatives and of the projects conducted by the Ward, in executive body when presenting to the connection with their implementation. international, regional, national and local forum 6. To monitor departmental performance and activities 7. To facilitate downward and upward h. Functions, Responsibilities and Rights communication of KMC of the Secretary Since its formation it has played a vital role in making The functions, responsibilities and rights, of the plans and policies for the KMC. Secretary include: 1. To perform all the administrative works under the Other important components of KMC include Account direction of the Mayor; Committee, Advisory Board, Protocol and Mayor's 2. To execute the city development programmes Secretariat, Deputy Mayor Secretariat and Audit Unit. under the direction of the Mayor; 3. To maintain books of accounts of all the The main functions of the KMC include: finance, expenditures related to the development work; physical planning and development, environment and ,, ' ,; • crry Dl.l\GNOSTIG REPORT sanitation, education and sports, works and transport, 5. Culture: health, social welfare, industries, tourism and others. The functions under this heading include: maintaining records about the religious and culturally importance places in the KMC with a view to preserve and maintain j. Functions, Duties and Rights of KMC those places. The conservation, promotion and utilisation of heritage matters, language, religion, art and culture According to the LSG Act 1999 KMC's functions and of the KMC territory. The Department of Heritage and duties are categorisec as follows: Tourism is responsible for such functions. 1. Finance: 6. Works and Transport: KMC has to prepare the budget, plans and programmes Under this category the main function includes: construction and present it to the Municipal Council for its final and maintenance of roads belonging to the KMC, execution, approval. According to the Financial Act of HMO it has management, registration and control of parking areas for to maintain books of accounts and related documents to buses, rickshaws and push carts. In the KMC, Department keep the amount of income and expenditure up to date. It of Works and Department of Urban Development are is authorised to collect taxes, fees and other charges. responsible for executing these functions. Currently, these responsibilities are under the jurisdiction of the Finance and Revenue Department of the KMC. 7. Health: The main health related functions include: establishment 2. Physical Development: and management of hospitals, clinics and health posts, The Act clearly authorises the local authorities to prepare formulation and execution of family planning, and execute land use development and housing plans. vaccination, population education and public health In addition, KMC is responsible for the management of programmes and monitoring the sale of consumer goods drinking water and sewerage, development of public and necessity items which are publicly hazard. Such recreation areas, construction of public toilets and functions are currently executed by the Department of development of green areas within its territory. Currently, Public Health of the KMC. the Department of Public works and Construction and Department ofUrban Development ofKMC collectively 8. Social Welfare: undertake some of these functions. Social welfare related functions are mainly: burial of unclaimed deceased, caring for orphans and executing 3. Water Resources, Environment and Sanitation: programmes for the welfare of women and children. This The major functions under this category include: function is undertaken by the Department of Social preservation and maintenance of water sources, planning Welfare of the KMC. and execution of irrigation facilities, control and prevention of flooding, controlling and maintaining water, air, and noise 9. Industry and Tourism pollution, protection of forests and vegetation, executing The main functions includes: promotion small and health and sanitation awareness programmes, managing medium scales industries and conserving and expanding solid waste disposal system and the generation and natural, cultural and tourism resources in the city area. distribution of electricity in the KMC area. Currently some The Department of Tourism and Heritage of the KMC of these functions are executed by the Department of is responsible for the promotion of tourism and industry Environment and Department of Public Health. in the city. 4. Education and Sport: 10. Others: The main functions under this heading include: The Act provides 26 different functions and duties under establishment and management of pre-primary schools this heading. The main functions include: preparation or permitting the establishment and management of such of by laws by the Municipality, protection of barren and/ schools, supporting schools for the development of or unregistered lands, promotion of trade and commerce, education and sports, providing scholarships for the maintaining population and housing statistics, preparing disadvantaged community of the area, executing for natural disaster and calamities, birth and death programmes on adult literacy and informal education. certification and registration, managing street lighting, These functions are currently undertaken by the honouring distinguished delegates and controlling rabies Department of Social Welfare. and executing income generating activities. 'rNSTITUTIOj\1}\L IJEVELQI?MEI\j:P '<' k. Departments, Sections and Staffing in KMC capacity. The type of activities it carries out, and the way they are selected and prepared, defmes it. Performance is Tht~reare 12 Departments and 33 sectious of the KMC. also defined by the relevance of activities, particularly in Currently, the total number of staff is 2,14 7 (Institutional meeting the challenge of the city and its citizen. Strengthening of KMC: ADB TA 3185 NEP) . The organisation chart is presented below. In the forthcoming part of this report KMC is analysed on the basis of its foundation, capacity and performance. S.I'J. Departments No. No. After describing KMC as an institution in these three of of perspectives, a SWOT analysis will be presented. The Sections staff analysis of KMC's internal strengths, weaknesses and 1. Social Welfare 3 10 external opportunities and threats are based on the above 2. Administration 4 65 three broad organisational characteristics. 3. Public Works 5 56 4. Enforcement 3 114 5. Finance 2 92 3.5.3.1 KMC's Institutional Foundation 6. Public Health 2 62 7. Law and Litigation 3 24 MissionMsion: KMC has a long history, of about 99 8. Revenue 2 39 years. It has started its long journey from a 'Safai Adda' 9. Information and Communication 3 27 to "My Legacy, My Pride, My Kathmandu" during this 10. Solid Waste and Environment 3 1433 time period. However, there are no clear goals and lL Culture, Heritage and Tourism 7 objectives ofKMC. In fact it is unclear what it wants to 12. Urban Development 3 56 achieve on a planned and objective basis. Although there are provisions for making short-term and periodic plans, There are some other functional units which act as it fails to make these plans on time. Only a yearly plan Protocol and Mayor Secretariat, Deputy Mayor is prepared and submitted in the Council meeting, which Secretariat and Secretary's Secretariat. These units is also difficult to hold, in time as stipulated in the Act. function as the priva;e offices of the Chiefs. KMC authorities and staff argue that KMC is a local After presenting the organisational context of KMC, it government whereas the government argues that it is is important to explore its various strengths, weaknesses, only a local body. The line ministry argues that to be a opportunities and challenges. local government it has to be self-sufficient in all respects. Legally, KMC is a local body. 3 . 5.3 KMC: Foundation, Capacity Due to the lack of goals and mission, local politicians and Performance are inter{"<;ted in the short term political and economic outputs and benefits. It is working to solve the problem Three main basis of institutional analysis are: foundation, on a piece meal basis and improve the organisation for capacity and performance. With a view to explaining long run benefits. In such a situation it is natural that issues relating to the institutional development of KMC, politicians always seek temporary and short-term in the next chapter these three characteristics are selected. solutions for the problems. It is because of this reason that KMC's problems cannot be solved, and even if they 1) Foundation: The foundation of KMC is the basis on are solved their effect will be just marginal. which it establishes an identity and defmes its functions. It consists of the purpose and goals, legal base and constituency. Legal Base: The legal base of KMC is the Self- Governance Act. It has to work in conformity to the Act 2) Capacity: The capacity ofKMC is the central element and Regulation. All its powers are derived from the determining its functioning. This starts with the leadership, Parliament and there are no general competence laws financial, human and material resource needed to carry except Local Autonomous Governance Law and out its mission and be an effective organisation. Regulations allowing the KMC to do things autonomously. Functions, duties and responsibilities of 3) Performance: The performance ofKMC is determined the Metropolitan, Metropolitan Council, different by the results achieved with the foundation and the Committees, Mayor, Deputy mayor, Members and Ward 91 :,',o:\'1/'·:,· ,·>; ' ',. c '·,.: ' ,',/'·J:"",'.'\, ' : 'O.IAGNOST!C,,;REPORti', ',>>h><>,•c Committees are clearly defined in the Act and Development Committee Act 2013 which provisions Regulation. How~ver, there are no clear cut provisions intersects with the provisions ofLSG Act and Regulation. about the responsibilities of the electoral and staff. Some of the rules and regulations are contradicting and KMC is the member of the Federation of Municipality. intersect each other. According to the current Act its status is recognised as the local elected bodies rather than local government. Metropolis Board is not sufficiently monitoring the Thus, instead of making independent decisions it performance ofKMC. The Advisory Board is not strong understands and accepts its responsibilities as a local body enough to advise the Mayor. It is only a provisional body of the government. In the absence of a comprehensive where people are have ceremonial positions instead of legislation for KMC it is difficult to handle problems from supporting the KMC policy level. There is no clear-cut a capital city prospective and to maintain its position of responsibility and accountability of different Boards and autonomy and independence while working closely, as a Committees. responsible social partner with the government and other non-government agencies. City Planning Commission, which was the main think tank body for planning KMC 's activities is almost Constituency: KMC extends its services to a population defunct. It was a professional body which provided of about 421,258 (as per the census of 1991) which is valuable support to the Mayor and Metropolitan. growing at the rate of 6 percent in the 35 Ward However, some elected members and staffhad expressed Committees. From each Ward Committees there are some reservation on its roles and working style. Many five representatives. There are clear rights, duties and argue that the CPC had two weaknesses: first, its responsibilities of these WCs. Members are also clear members' began to interfere in the day to day functions about their functions, duties and responsibilities as are ofline executive body and second, it failed to recognize defined by the Act. In addition, a number ofNGOs are the role of KMC's staff in the planning process. involved in implementing KMC functions at ward level. Currently, many members of CPC have left office. In Private sector is interested in the areas such as bus park addition, there is no proper documentation of CPC management, solid waste management and in the activities. It is difficult to know about its formation order, construction activities. A number of government activities and future plan from its office. ministries, departments and offices are located in the KMC area. Similarly, its services are required for Whereas the Act :1as provided many roles and cleaning the city by dumping 300 tones of garbage, to responsibilities, KMC still has to do a lot of home work increase national revenue by satisfying its stakeholders to develop working procedures to implement it in making it more friendly, clean, livable and a practice. Whereaas in the LSG Regulation it is clearly competitive city of the future. It has to accommodate stated that local body are authorised to make their own not only its current population but also plan for its bye laws , in the lack of a clear frame work, which has territorial expansion to accommodate more people in to be provided by the Ministry, they are not able to the future. formulate such bye laws. Moreover, in the absence of proper modus operandi, authority of the KMC remained SWOT Analysis: Foundation unused. Mechanisms of using KMC's authority and power Strength: provided by the Act needs to be redesigned and CJ A long history of its establishment restructured to work effectively and efficiently in the CJ Self-governance Act and Regulation future. In other words, KMC has to be very receptive for CJ Clearly defined functions, duties responsibilities the use of power and authority given by the Act. Furthermore, after the introduction of the Act there are Weaknesses: confusions in the functions, roles and responsibilities of CJ No explicit objectives KMC and other Acts, Rules and Regulations. There are CJ No periodic plan for five years duplication of functions and activities between KMC and CJ Short term approach to get benefit other government agencies in the areas such as CJ Ineffective Board, Committees and advisory bodies construction and maintenance of roads, water resource and Commission management, housing planning and collection of taxes, CJ No clear cut internal rules and regulations fees and other charges. There is an example of CJ Lack of accountabilities ',,, " INSTrHJTlONAL:DE\f.~LOPMENT Opportunities: Public Works and Transportation, Ministry of Water D To work in the capital city perspective Resources, Ministry of Health and Ministry of Tourism and Culture. Since these ministries have their own Threats: departments and local offices within the city it is one of o No proper direction for city development the challenges for the KMC to work in co-operation o Lack of recognition it to work as the local with them. government D Increasing city population Furthermore, KMC has no mechanism to enforce its o Possibility of territorial expansion in the future authority and power without proper co-ordination with the government Ministries, departments, offices and authorities. This makes it difficult to collect financial 3.5.3.2 KMC's Institutional Capacity resources. No clear cut direction of relations exist between HMO and KCM in co-ordinating roads and Leadership: KMC has no clear and straightforward transportation, refuse collection, street cleansing public governing structure with defined roles and health and power distribution. There is still a domination accountabilities for its bodies, committees, members and of the government agencies in the development activities staff. At all levels of the organisation accountability has at the city area. not been well established for both political and executive personnel. There is a state of confusion prevailing in There is no co-ordination between the local political the relation between: the Mayor and Deputy Mayor, representatives and the KMC employees. A sense of co- Advisory committees and staff, Committees and staff, operation is lacking between ward level representatives Department heads, Ward Committees and Advisory and divisional heads. However, neither the central KMC committees, Ward Committees and KMC staff. In such office has any proper mechanism for ward level a situation it is difficult to predict how decisions are to participation nor do the divisional heads seeking ward be made and executed at the different levels of the KMC. level co-operation for programme implementation. In Leaders at different levels are not seen to be committed fact, the working style of the KMC employees, to their posts. The relation between the Mayor and consultants and other specialist staff is completely De:puty Mayor and within their secretary level is not centralised and individualistic. In such a situation even satisfactory. if the Act makes provisions for decentralisation it's implementation is less feasible with the present Politically the KMC is divided into different ideology institutional strength. groups. This has made it difficult to make timely decisions for organisational and planning matters. One The Secretary solely dominates administration. Among party electorate attempts to dominate the others, keeping the staff, Chief of Administration, Public Works and aside their goal of city development. The impact of such Environment Department are relatively busy and feelings has been clearly seen on the development and powerful in comparison to the other administrative chiefs environment management capacity of the KMC. and staff. It is difficult for the KMC to undertake its functions Resources: In this part issues related to resources are without the close co-ordination and consultation of divided into three section: ministries, departments and other government offices located in the KMC. Matters about whom to report to in I. Human: the hierarchy is unclear, similarly, what the relation Human capacity is the skill, knowledge and experience should be between the CEO and the Mayor's personal of the elected members, staff and consultants to plan, assistant is unclear as well. The activities of the organise, motivate and coordinate the activities and Department of Public Works, Department of Urban resources of the KMC. As said earlier elected members Development and Department of Environment have to are politically divided into various groups and this has be closely related with this organisation. It cannot act affected the capability of the elected members. without the proper co-ordination of the government agencies such as Ministry of Local Development, Executive level employees must have a clear vision on how Ministry of Land Reform and Management, Ministry of to manage the divisions. There is a need to improve the Law, Justice and Parliamentary Affairs, Ministry of current capability of all division chiefs to tackle their specific tasks. Political representatives should on the capacity of the ward member without any proper ward level these staff. There should not be any sign of favouritism for members' programmes. any section, division, individual or group of person or staff within the KMC system ,to allocate its scarce resources. There is no proper financial information system providing facts on various resources in the city. Revenue Some stakeholders argue that the KMC has neither the collection is not effective due to the lack of information capacity to make dialogue with the government nor the about the taxpayers. It needs to make proper plans to skill to manage public utilities within its areas. Thus, bring the city dwellers in the tax bracket in the near there is a need to develop skill and knowledge of current future. The public is not motivated to pay tax in the human resources to match with the KMC's current present unclear provisions of the government. In fact it requirements. With the current style of management and has to revamp whole system of financial resource HR process it is difficult to make a systemic mobilisation with new policies and programmes. If the improvement at the KCM. It requires a systemic present system prevails, it will be very difficult to work development mechanism where each and every member in the future to meet the budget requirement. In addition, can use this to bargain for power from the government unless and until KMC is not be financially independent and to build confidence among the local citizens that it it will be difficult for it to emerge as a local government. can deliver services that are better than other government agencies. There are records of financial irregularities, the Audit Committee is not formed and Accounts are not audited The motivation and morale of the KMC staff is low. on time. The KMC administration is basically concerned Some are working very hard where as some are drawing with spending rather than planning, budgeting, salaries just by sending their authority letter. Jobs and maintaining proper books of accounts and auditing. In responsibilities are not allocated properly. many cases the CEO endorses activities which are not inconsistent with the current rules and regulation. Neither There is no system of evaluating performance with a the Line Ministry is concerned to establish a minimum view to distinguish a performer from a non-performer. economic disciplinary measure to check any sort of As a result the system of reward and punishment hardly illegal financial operation nor the KMC to develop and exists. There are still many divisional chiefs who are follow financial disciplinary rules. There are instances either temporary or on contract, 90 per cent of its of attempting to give false impression of the real state employees are de-motivated with the present working of affairs by the line ministry and other responsible style, environment and conditions. There are no career authorities to convince the donor agencies, otherwise. development opportunities for the line staff. Very few In other words, initiatives are directed just to satisfy of the employees see a desirable future in the KMC. donor agencies instead of the current reality. Volunteers, consultant and youths working in co- III. Material Resources ordination with KMC are not satisfied with it's function, KMC lacks basic material infrastructure such as land there is no proper co-ordination between them and the fill sites, office buildings and vehicles. Besides, there KMC staff . The staff views that any project level are problems of basic construction materials, tools and activities should be undertaken under the umbrella of equipment. It needs at least 125 container for maintaining the KMC and with the involvement of KMC line staff the flow of refuse collection. In fact with the current and departmental chiefs. material infrastructure it is difficult to work smoothly. Employees are asking for office transportation. due to II. Financial Resources the lack of vehicle facilities it is difficult to supervise, The KMC severely lacks financial resources to execute monitor and reinforce different functions of the its plans and programmes. Although it made a budget Departments. of more than 100 million rupee, it faces difficulties in covering the expenses of administration and other core Organisation: It has a new organisation structure activities from its own resources. The dependency on comprising of 12 Departments and 33 Sections. foreign or governmental assistance is increasing. There Functions of all Departments and Sections are also is no broad level support from the people to raise funds formulated and provided to each Department and for the KMC. It also fails to keep its administrative and Section. From a review of its new structure it seems that overhead costs under control. It allocates a budget to this is a vague structure. The number of departments are so many that it exceeds the principal of public There is no authorised and permanent unit for administration. Many stakeholders argue that establishing re:lations with the other counterpart Departments are not the requirement ofKMC but rather agencies, foreign donors, intemational agencies and so the personal interest of the: leaders and staff to make a on. As a result many programmes undergoing in the city huge organisation. According to them, these departments are not properly co-ordinated with the KMC. In addition, can be put together for the: sake of efficient management the absence of a proper networking mechanism in the of the KMC by keeping its functions as it is. KMC office makes it difficult to develop a operational relation with many foreign agencies, local NGOs and The work systems and procedures are sti II very lNGOs. traditional, rules and regulations are not clear, the values and norms of the organisation are not maintained. In Without proper co-ordination with the government it is fact there is no corporate management system to use the difficult to work closely with other government offices. resources efficiently and effectively. Recently, under the There are many rules and regulations which overlap with technical assistance the ADB, institutional strengthening the KMC's functions. There are some international of the Kathmandu Metropolitan City is going on. It has projects undergoing and to some extent it is successful stated its goal as " improving the capabilities of in sharing resources, information and expertise. It is Kathmandu Metropolitan City for efficient, responsive working in the direction of increasing private, NGOs and sustainable urban management in the Kathmandu and IN GO's participation in its activities to minimise its Metropolitan area". Some experts and elected members limitations and extend services to all of its wards. have shown their interest in this project, many experts and staff harbour their doubts on the implementation of KMC as an organisation lacks mechanism to encourage the reports given by this project. In fact, there are about grass root participation, there is no two-way 58 studies already undertaken in the KMC which are communication between KMC's authority and the noil properly reviewed and implemented. general public on matters such as tax collection, refuse collection and other local level problems. The ward level The current management systems and functions ofthe KMC electorate are not satisfied with how the departments in are very reactive in nature. Jobs are not properly distributed the KMC are working. The programme approach plans and authorities are at the centre. The CEO is seen issuing a requires to carry out KMC's activities at the Ward Level litre of petrol and very few Departments Heads and staff and clarify one another's responsibilities. However, at have enough work to do furthermore, there is no co- this level some progress has been observed for the ordination of work among the divisional chiefs. implementation social and developmental activities in the participation of the Tole Sudhar Committes and other Many studies have been undertaken in the past to users groups. strengthen its institution and improve KMC's organisation for the betterment of its citizen. However, There is no professionalism in the management of the due to the lack of proper implementation initiatives and KMC. The CEO is appointed without considering his or M&E, recommendations of various expert committees her knowledge and skills on urban sector planning and were either neglected or not at all implemented. In the development. Many stakeholders argue that, whoever cunent situation it is difficult to intemalise any change appointed these officers were primarily concerned with programme just by undertaking a study. Even for the the government's interests rather than KMC's interests. implementation of the CDS there is need to make an This is natural, because they have the opportunity to appropriate institutional arrangement, otherwise the develop their careers in the ministry and not at the KMC. success of CDS is doubtful. On the other hand, the line ministry itself has not realised the need for stability of KMC's executive management. There is no mechanism of co-ordination, execution of In case of change in the line ministry, it directly impacts plans and programmes to manage day to day activities. the tenure of the Executive Officer (EO). The present EO is the sixth one in the tenure of the current Mayor. This In fact it has no up-to-date or a comprehensive city plan trend has always constrained the KMC to emerge as a that brings together its mission, its specific objectives, professional organisational body. its development programmes and its financing. There are always problems during the planning and decision There is a lack of effective information and making time. communication. There is no Data base to manage KMC effectively. Unless and until the KMC develops its own CJ There is no system of performance management reliable data base it will be difficult for it to increase the and evaluation. operational effectiveness and efficiency of the 1:1 Lack of official transportation facility for the departments. A brief introduction of departments and employees. their respective issues are discussed below. CJ The system of reward and punishment is needed urgently. IV. Departments o Lack of career development opportunities for a. Social Welfare Department employees. The main responsibilities include community social CJ Lack of incentives and motivation to work for welfare through disaster management, community employees. development, job promotion, education and sport. These CJ Department needs to strengthen its administrative functions are divided among three major sections. There functions and implementation capacity. are 10 employees working in the Department. Some of o There is a need to co-ordinate sectional works of the major issues of the Department are the following: the Department. 1:1 Lack of executive vision to run social welfare c. Public Works Department activities within the KMC framework. The main functions of the Department includes: o Team work is lacking . There is no work providing water supply services; planning and environment. Interdepartmental meetings are management of water supply and sewerage; hardly organised. Executive management and construction and maintenance of municipal roads; Department Heads are less interested in running providing electrical services and maintenance; and the departments in co-ordination. design, construction and co-ordination of ward and 1:1 Lack of routine programmes due to financial civil works of the KMC. In addition, it has to monitor problems in the KMC. If local INGOs do not and supervise responsibility of sectional works support its programmes, it is difficult to run the within the Department. Altogether there are 56 department. employees working in Water Supply and Sewerage, D There is no system of performance management Road, Electrical, Maintenance and Ward and Civil and evaluation. The Department Head has no works sections. The main issues of the Department responsibility to evaluate and take control of includes: subordinate employees. 1:1 Although the Department has less table work, the CJ The need for vision to develop the Department as KMC Executive Committee provides employees a system. for table work. The Department needs employees 1:1 Influences of de-stability on Departmental works. to work in the field. CJ Instead of a direct implementing role, KMC only 1:1 Lack of motivation among the employees to work. needs to monitor the works of the divisions. CJ The need for developing the capacity to take more b. Administration Department responsibility in the future. This is one of the crucial departments responsible for CJ The need for encouraging people working in the file maintenance for the personnel and human resource Departments. development in the KMC. Four main sections of the 1:1 The need for logistic facilities to impart its duties department include General Administration, Personnel and responsibilities effectively. and HRD, Ward Co-ordination and Vital Registration. Under this Department there are 65 employees. The d. Enforcement Department main issues include: The main responsibilities of the Department are: to supervise, control and monitor market areas, to 1:1 Although KMC is departmentalised and unitised regulate construction activities and regulate the there are is no place to accommodate the different security of the citizens. The department comprises of sections in the Department. three main sections, namely, Market Management, 1:1 The need for capacity improvement of the Construction Regulation and Central Pool. It employs Department for implementing the given 112 security employees who are trained by the Nepal responsibilities. Police. The main departmental issues include: ·· 1N$TITUTION)\J,: DEVEL()PMENT o Unrealistic span of control between the number of counselling. The Department employs 24 employee in commanders and the number of city police, under its three sections, namely, Litigation Section, Misil 42 commanders there are 72 security City Police. Section and Legal Counselling Section. o The need for appointing Mahila City Police. o Lack oflogistic facilities needed for city patrolling The main departmental issues include: and other security matters. 0 The need for the supply of logistics- vehicle and o Lack of recognition by the government of computer. Metropolis Police. o Training and development of employees. o The need for barrack system to widen security zone D The need for minimising political pressure on legal in the city. and litigation matters. D The need for clarifying Departmental Jurisdiction. h. Revenue Department e. Finance Department The department performs the main responsibilities of The Department basically works for day-to-day financial planning and collecting revenue with a view to mobilise activities of the KMC with a view to record and maintain financial resources for the KMC. It has two sections such the books of accounts. It has to follow government as Review Planning and Monitoring and Tax and Fees Economic Rules and Regulations to maintain economic Collection Sections. The main issues of the Department discipline of the organisation. The three main sections are the following: of the Department include: Store, Accounting and Budgeting and Audit Departments. It employs 92 people CJ Space problem. at different sections. The main issues related to the D KMC has no special vision to mobilise local Department are the following: revenue sources. D Lack of information on potential sources of revenue. o Lack of space for working at the present office. D The need for developing Revenue Information D Lack of clear direction from the top executive System (RIS) for the implementation of revenue management makes it difficult to work. plans and policies. o The need to minimise unnecessary pressures of the o The need for assuring people about the uses of tax executive management. money. 1:1 The need for standardised financial work as per o Lack of infrastructure for the sustained collection the rules and regulations of the HMG. of revenue. f. Public Health Department i. Information and Communication Department The main objectives of the Department includes: to provide This department is responsible for the collection and basic health service to the people, manage health care services dissemination of information required for the day-to- at ward levels, increase public health awareness, co-ordinate day works of the KMC. The three main sections of the health services and others. The two main sections in the Depmiment include: Media and FM Section, Information Department are: Urban Health and Food and Drug. Section and GIS Section. The Department has 27 Altogether there are 62 employees in the Department. It runs employees in its various sections. The main institutional 17 urban clinics and provides health service for about 50,000 issues of the Department are the following: citizens of different wards. The Department is, some how fimmcially self sufficient to run its programmes o The need for vehicle. o The need for using Metro FM commercially for 1:1 The need for Public Health Officers as per the the generation of financial resources. requirement. o The need for improving the watt capacity of FM. 1:1 Lack of manpower to perform section wise. D Inability of the Department to employ 1:1 The need for improving public health quality at professionals. the ward level. A system of sustained training and D Lack of inter-departmental co-ordination. development of the staff is imperative. j. Solid Waste and Environment Management Department g. Law and Litigation Department This is the largest Department employing 1,433 The main responsibility of this Department includes employees in its different sections. The main litigation activities, legal documentation and legal responsibilities of the Department include: management 97 ··CITY. DIAGNOSTIC REPORT of solid waste, protection and maintenance of urban SWOT: Capacity environment and supporting works of environment management in the KMC. The Department has three Strength: main sections- Solid Waste Management Section, Urban D Both elected body and executives are interested to Environment Section, and Mechanical Section. The main develop the city problems of the Department include: Q Expert services and studies are on going to increase capacity Q The need for vehicles for refuse collection. Q The need for a minimum of 125 containers for Weaknesses: making the refuse collection system efficient. D Increasing political distance from central to the o Lack of vehicles for monitoring the Departmental Ward level activities. Q A situation of politics first and development second Q No indication of a solution for the landfill site o Lack of sufficient skills and knowledge of employees problem due to the lack of proper co-ordination and electoral for organisation management between government and KMC. Q Low morale of employees o No proper plan and programme for the involvement D Lack of material resources of the private sector for the improvement of city's D Problems of financial resources current environment. o Lack offinancial infonnation to collect financial resources o Increasing financial irregularities k. Culture, Heritage and Tourism Department o Vague organisation structure The Department is responsible for making plans to o Reactive management functions and structure preserve and maintain heritage sites with a view to make Q Lack of performance evaluation system Kathmandu a culturally rich tourist city. The Department o No data base to manage organisation employs 7 employees. The main issues relating to the Department include: Opportunities: o Chances of co-ordination with government and non Q Lack of skilled and experienced manpower for the government agencies management of culture, heritage and tourism. o Many NGOs and Users' Committees are working Q The need for using heritage sites also for the in the ward level which can provide services to the collection of tax resources so that the maintenance ward people beyond the limitation ofKMC and its costs of these sites can be recovered. ward committees. The need for co-ordination of Department activities D Larger number of population can be brought within with the activities ofGovernment Ministry, Department the revenue brackets of KMC and local offices related to culture, heritage and tourism. D Increasing interest of private sector in the activities of city development l. Urban Development Department This department is responsible for the preparation of Threats long and short term urban plans and programs for the o Difficult to work in co-ordination with different KMC. It has three main sections: Urban Planning, government agencies Building Permit and Transportation Management, the D Overlapping in the activities of KMC and other Department employees 56 personnel. The following are external agencies specially with the government the main institutional issues of the Department. in city development matters. o Effect of government changes in the tenure of the Q The need for a full-fledged study of the urban CEO development activities in the KMC. Q Lack of information for the preparation of long- 3.533 KMC's Institutional Performance term and short-term urban plans and programme. Q Lack of co-ordination of the activities at the Activities: Minist1y level of the City Planning Department and In many of its past activities, such as expansions of roads, the KMC's UDD for the formulation of plans and overhead bridges and traffic islands in the city area the K.MC policies and implementation. ensures that its activities are in consistent with the peoples' feelings. However, due to increasing city population, traffic 93 INSTITUTIONAL DEVELOPMENT and unplanned city development, it has to do a Jot of exercises programmes are not so effective and fail to be properly to convince people that its performance is directed toward executed due to the lack of proper involvement of line making this city liveable in the future. managers. There are grievances from citizens on how promptly and Once activities are completed there is no system to honestly KMC acts to provide services in the city. In evaluate the impact of these activities in the quality of many cases, although it is simple to manage, KMC's city life. current staff and authority are careless when delivering the services fairly, honestly and promptly. SWOT: Performance Relevance: In the last few years it has made some progress m Strength: realising the importance of conservation of heritage and o Programmes and projects are ongoing for the culture of the city. However, there is less concentration organisational reform of the KMC in its plans and programmes to combat urban poverty, o All politicians and staff are motivated to work for vulnerable groups, urban unemployment and public- the development of Kathmandu city private sector participation. Its activities are not relevant o Organisational basis for implementing its plans to attract the participation of INGOs and NGOs, city and programmes in different wards youths, and user groups. It has to ensure their participation with proper ward level programmes. Weaknesses: D Lack of accountability of elected members and staff There are many lNGOs and NGOs in the city which can in many respect support the execution ofKMC's local level programmes. D Lack of planning for involving different Specially it can execute, using the strength of such local stakeholders in the process of city development institutions, some major programmes of public health D Lack of a monitoring and evaluation system and sanitation, environment, education, women and D No mechanism to implement plans and children health and adult literacy programmes. There programmes are many INGOs who are interested in co-ordinating D No workable relation between Mayor and Deputy with the KMC in local problem areas. Similarly, private Mayor in KMC sectors are interested in participating major programmes such as transportation management, maintenance of Opportunities: water supply and sewerage systems, power supply, refuse D A number ofNGOs and users groups are available collection and other activities. to implement KMC's plans 0 Donors are interested in participating in the city Effectiveness: development activities The work processes and mechanisms of the KMC administration is not transparent so as to making elected Threats and executive personnel accountable towards their works. o Increasing population, traffic congestion and poor Some initiatives are being taken for governing KMC with roads an institutional approach. However, in the lack of a clear o Increasing environmental problems cut mechanism of implementation, M&E and feed back o Development and mobilisation of community systems, not much can be expected in the coming days. o Heritage conservation D Housing and squatter settlements Due to the lack of a performance standard it is difficult for o Difficulty in combating urban poverty, vulnerable the KMC to monitor and evaluate whether its plans are groups, urban unemployment and public- private executed in consistence to its mission/objectives or not. sector participation o Difficult to replicate project findings that A number of donor assisted programmes are ongoing at were developed outside the organisation of the KMC. Many stakeholders argue that these KMC 3.6 ARRANGMENT OF INSTITUTION capacity is not enough to undertake CDS activities. IN THE CONTEXT OF CDS Capacity includes financial, human and material resources. The main issues identified relating to KMC 3.6.1 Introduction capacity are the following: In the first stakeholders' Workshop vision of institutional Issues: development it has clearly identified KMC as the " I) The need for making Mayor powerful. capable organisation and manpower to manage the 2) The need for minimising the political distance services, facilities and physical infrastructure of the city among the elected to plan and execute city to the maximum satisfaction of the city dwellers". development activities. Similarly, the Workshop also identified some major issues 3) The need for enhancing the current knowledge and which are also included under the headings of foundation, abilities of the administrative and elected personnel capacity and perfonnance. Moreover, issues also include 4) The need for a detailed financial plan to manage the personal views of the Mayor, Deputy Mayor, Ward sources and uses of funds Chainnan and heads of department ofKMC. These issues 5) The need for establishment of management and are very important for the purpose of implementation of financial information system CDS in the future. Unless and until KMC deals with these 6) The need for controlling increasing financial issues with proper strategies and action plans it will be irregularities difficult to implement CDS programme. Realising this 7) The need for using services ofNGOs, local clubs and fact, this chapter is divided into two main parts. The first other user committees to enhance the capacity ofKMC part explores issues where as the second part presents 8) The need for proper M&E and reporting system. issues to achieve the above mentioned institutional vision. 9) The need for making the organisation structure very effective 10) The need for involving private sector in the 3.6.2 foundation: Issues collection and mobilisation of financial resources 11) The need for reviewing acts, for example, relating Without a strong foundation it is difficult to establish an to transportation, roads, water resource, sanitation, identity and defme functions of the KMC. The Foundation housing planning and local development ministries comprises of three main components: mission and to increase the co-ordination of the KMC with other objective, legal base and constituency. The main issues government bodies identified after SWOT analysis are presented below: 12) The need to improve physical and material infrastructure of the KMC 13) The need for appointing a CEO for a fixed term Issues: 14) The need for establishing a data base system 15) The need for evaluating performance 1) The need for clearcut vision of KMC. 16) The need for institutional arrangement to increase 2) The need for explicit objectives ofKMC feeling of ownership in devlopment works 3) The need for revision for in the provision of Acts 17) The need for dissemination ofknowledge and skills and regulations. 4) The need for clarity on whether KMC is a local body or local government 3.6.4 Performance: Issues 5) The need for a longer term perspective of city development Its foundation and capacity determine the performance 6) The need for making Board, Committees, Advisory of KMC. Only plans for the performance is a futile bodies very effective exercise without structuring a sound foundation and 7) The need for making the elected and administrative capacity. There are some issues relating to the KMC' staff accountable at work issues, presented below: 3.6.3 Capacity: Issues Issues: Without being a capable organisation KMC cannot 1) The need for making staff and elected body function in its constituency properly. The traditional accountable 100 2) The need for involving line staff in the project 3.7 CDS MANAGEMENT AND management and implementation INSTITUTIONAL 3) The need for developing mechanism to contact the STRENGTHENING COSTS KMC's stakeholders 4) The need for involving local NGOs and users 3.7.1 Introduction committees in the performance process from the centre to the grass root level Implementation of CDS in the KMC is a very challenging 5) The need for support agency at the local level to as well as risky task. Besides strategies for change and train local NGOs and communities action plans, there are some important factors which effect its effective and efficient implementation. 3.6.5 Issue-Action Matrix: 3.7.2 CDS Steering Committee Effixts ofissues need to be identified and strategies and action plans have to be outlined with a view to facilitate the The CDS will be implemented for the most part by implementation of CDS in the KMC institutional set up. the CPC of the KMC. The CPC will impart its responsibility through the Planning, M&E and Administrative Dept. of the KMC. It will have the 3.6.5.1 Foundation overall responsibility for its co-ordination, and for this purpose a CDS Steering Committee has to be set up The current institutional foundation needed to be comprising of the Mayor and Deputy Mayor, the CEO, revamped in the context of CDS. Measures are presented two chairmen of the Ward Committees, Chief of in the form of action plans to reach to the associated Planning, M&E and Administrative Division, two strategies. (See foundation: Issue-Action Matrix Table representatives from the local NGOs and users' Annex: 1) committees and two experts. The Member of Secretary of the Steering Committee will be the chief of the Planning , M&E and Administrative Dept. For this 3.6.5.2 Capacity: Leadership, Resources purpose the current Administrative Department and Organization should be completely revamped. The Steering Committee will be responsible for the following Presented in the following Matrix table are the main activities: issues, effects, strategies and action plans for the improvement in the capacity ofthe KMC. (See Capacity D Integrating the activities of the different Issue-Action Matrix Table Ammex 2). Departments and Ward committees by establishing a mechanism of co-ordination D Solving any problem concerning CDS accounting, 3. 6. 5.3 Performance budgeting, and procurement procedures D Forwarding requests for timely disbursement to the Performance of the KMC mainly depends on its Bank foundation and capacity. Thus, without working on D Preparing and submission of progress report under issues relating to foundation and capacity it is difficult the request of the Bank to iincrease the present level of performance. In addition D Overall co-ordination of project activities. to the action plans described in the following matrix tables, performance improvement depends on the action 3. 7.3 Financial and Human Resource plans shown in performance issue action matrix. (See Needs Performance: Issue-Action Matrix Table Annex 3) The regular expenditure has to be made by the KMC. The CDS has to assist in institutional development, at least, in the following matters: (See Financial & Human Resource Needs Table) Table 1: financial & Human Resource Needs PARTICUlARS REASONS AMOUNT (NRS) Payment of expert services Socio-economic expe1i, Technicians, environmen- 72,00,000 talist services (5 experts for 4 years at the rate of Rs. 30,000 per month) Management and financial 50 computers and other logistics (furniture, print- 1,50,00,000 information system ers, CPU) Training and management MIS, Corporate finance, leadership, general man- 15,00,000 development agement and project management Developing Monitoring and 10 computers, logistic, and training 10,00,000 Evaluation System Restructuring organisation Strengthening Planning, Monitoring, Evaluation 20,00,000 structure and Administrative Division. Recruitment of highly qualified staff to work on I planning and M&E, purchase of 10 computers for monitoring and evaluation of different sectarian programmes under CDS. Construction of building to Construction of 50 rooms building, surrounding 4,50,00,000 accommodate all depart- wall and buying furniture ments and divisions in a single building Office vehicles for staff Two buses and 5 motor cycles 25,00,000 Seminar and workshop Increase awareness, maintaining financial disci- 20,00,000 pline, administer the CDS. Total 6,90,00,000 3.7.4 Accounting and Audit responsibilities idle or will remain hidden for the sake of political interest. A separate CDS account, clearly indicating the various 2. Status and levels in KMC administration is more sources of receipts and expenditures by functional impmiant than the roles and responsibilities. There categories for their respective programme components, are conflicts in the organisation over the roles of needs to be maintained by the Finance and Account Dept. the Ward Committee, administrative staff, advisory The CDS account should be audited annually in committees and other line administration staff. accordance with HMO rules and regulations. 3. There is need for a good relationship between the mayor and deputy mayor and members representing different parties to strengthen the 3.7.5 Risk factors in Implementing CDS KMC in the future. Similarly, if changes in the government effect the tenure of the secretary this During my field visit some risky practices were noticed will result in instability. In such circumstances it is in the KMC which, if it remains will make it difficult to risky to implement the CDS. implement CDS: 4. With the current capacity of the KMC it is difficult to develop new projects, planning or other Decision making and problem solving practices are exercises to implement the CDS. Implementation influenced by political motives. In such a situation of CDS requires a socio-economist, an if any mistakes or problems occur in the KMC and environment expert, a legal analyst and an it has political implication, either it will be independent auditor (who should be very highlighted excessively keeping other independent from the Board) and strong leadership 102 in the administration who can lead and mediate assists the concerned authority to assess the relevance, with the goven- ment agency. efficiency and effectiveness of the CDS, together with 5. The government representative and the KMC its impact on stakeholders. The Monitoring and representative have to sit together to clarify their Evaluation Section of the Planning Department will do roles. If, not there will always be tension between evaluation of the CDS. The result of M&E will be the government and the KMC in the directly provided to the CPC. implementation various services which currently belong to the government and which KMC sees as Monitoring is a continuous surveillance over the its responsibility. implementation of the programme to ensure that the input 6. Many stakeholders view that projects in the past deliveries, work schedules, targeted outputs and other in KMC were just "face saving" at the time of its required actions are proceeding according to plan. It economic crisis rather than a meaningful plan for ensures continuous and effective implementation of the future. If this CDS is just used as a political programme and activities with sufficient information and agenda then there is a great risk in the success of feed back relating to the critical activities. It should be this project. considered as a major part of the KMC information 7. To implement the CDS in the KMC requires some system needed for making decisions in relation to the sort of "CDS Management Contract" within the CDS. A successful application ofM&E depends on: system of the Kl\AC. If CDS is implemented beyond its line function there is a risk that the project will Q Type of managerial decisions made at different not be a success. levels of the KMC Q The necessary information required to make decisions 3.:7.6 CDS Can Be Implemented Q The method of collecting information Q The availability of required information in a In case risk factors are minimised, there are many reasons prescribed format why this project can be implemented. These are the Q Mechanism to relate the work progress with following: implementation schedules Q The system of identifying problems and resolving 1. CDS is a complete package of a project which is them very important for a city like Kathmandu. The Q Mechanism of co-ordination between functional areas, which this project will address, are really units and the need for information to be shared important for the development of Kathmandu by Q Mechanism of co-ordination between M&E units making this city a fine place to live in as well as and functional units making it comretitive. 2. From the very beginning of the CDS study, the Evaluation is a systematic process which attempts KMC including its line staff, consultants and to find, as objectively as possible, the relevance, stakeholders are involved. All involved have effectiveness and impact of CDS activities in the suggested that this project will be very useful in context of CDS objectives. It is therefore, an the future. evaluation of the CDS activities which is concerned 3. The current leadership seems to be committed to with the analysis of the rational of the CDS this project. objectives, implementation process and the emerging results, and assesses in light of the foregoing, the validity and relevance of project objectives and the 3.:7.7 Monitoring and Evaluation of CDS project effectiveness and efficiency in achieving the intended results. One of the most effective evaluation The monitoring and evaluation system will assist to chart methods is the Participatory Evaluation which the progress of the CDS, the implementation to achieve involves the feedback of information and opinions its objectives, which will enable the concerned from stakeholders and others to the office staff, responsibility centre to take corrective action when during informal and formal meetings and deviations are detec'~ by the system. Further it also discussions. ~03 , err)-:, DIAGNosTic1 '!fi~PbRr ';<~<{' ' 3.7.8 Training for Electoral and Staff submitted to the concerned authority to institutionalise decentralise practice at the local bodies: The Eighth Plan, The implementation of the CDS is based on the ARC and Report of the High Level Decentralisation knowledge and ski!~ of the staff to understand and Committee and LAG Act 1999. However, even after execute it. To some degree, the following training and various efforts in the past, the implementation of the seminar would be of great usefulness to enhance the decentralisation policy is hindered by the inefficient and ability of elected members and administrative staff to ineffective institution of local bodies. execute the CDS. From the above analysis it is clear that the most important dimensions of CDS implementation in the 3.8 CONCLUSIONS KMC perspective is to strengthen its foundation and capacity, to improve the current performance. In this The history of decentralising the central government's respect, the most important part is the role of different authority and responsibilities in Nepal begun after the individuals and institutions and their co-operation and promulgation of The Constitution of the Kingdom of co-ordination from the centre to the ward level. For Nepal 1962. The first decentralisation act was enacted in the KMC particularly, it is important for it to know 1982 based on the report by the Administrative Reform the purpose and means to get results from the CDS. It Commission chaired by Ranadhir Subba. Since then there must have the right foundation and capacity to give has always been a problem in executing decentralisation its best performance. It needs to have a clear mission policies due to the lack of institutional and human resource and solid legal base, to be part of the right factors to plan, program and monitor developmental constituency, and also have good leadership and activity at the local level. After the restoration of adequate resources, if its activities are to have democracy in 1990 three documents were prepared and relevance and effectiveness. 104 'SN j;,~~· ~',5;\,:~,:; :'tf~inihfgS~mh1ar ·: 1 ; '< .·'' ,. ,,<,, jrP ··~:, " Participants :• ,' .<···.,, \ ~ 1. 2. Concept and practice of project management Concept and practice of corporate management For the chiefs of the departments and other subordinate staff ~ 3. Pre- CDS orientation Seminar For the chief of the departments, ward com- mittee members and other subordinate staff ! 4. Project Planning, Monitoring and Evaluation For the staff of planningandM&Edepartment. il ~ 5. Leadership Practices For department heads, ward committeechainnan 6. Office Administration For secretary level 7. Institutional Strengthening For elected and chief staff 8. Capacity Enhancement of Local NGOs and users Committee NGO and users committee. "~ ~. ~WA&JQltt4)jJU1J!:«:h&Ji-t'fiil"h-::~.c:~'.'..> ''• ' .... ''·""" .. .. ,,,.,.,,.,.,,,.,.,,,. . ' "··· • Implementing CDS Monitoring of CDS's lD activities depends on the in three important institutional dimensions that have been observation and verification of the following indicators followed in this study. !Foundation Formulation of clear objectives of the KMC Before implementation of CDS Communication of CDS objectives to the staff and Before implementation of CDS electorate Clarity of whether KMC is a local body or local gov- Before implementation of CDS ernment (To work in the capital city prospective Initiation of formulation of periodic operational Within six months of CDS implementation plan of the KMC Reformation of Advisory body Within three months of CDS implementation Clarification of accountability of the elected and Prior to implementation of CDS administrative staff Capacity Increase interactions among rivalry political factions to Form politically mixed committees to imple- support CDS implementation mentCDS Formation of a fair Vacancy Fulfilinent Committee Before implementation of CDS Implement corporate accounting system Before implementation of CDS Establish management and financial information system Within six mond1S of the project CDS implementation Recruitment of MIS experts Within six month of CDS implementation Formation of an independent Audit Committee Before six months of CDS implementation Restructuring of current organisation structure Before implementation of CDS Development of KMC-private sector committee Before implementation of CDS Construction of KMC building Within a year of CDS implementation Preparing performance contract with CEO Before implementation of CDS Development of DBS After implementation of CDS Introduction of performance evaluation system Before implementation of CDS Formation of CPC wid1 d1erepresentation of line staff of KMC Before implementation of CDS Training for staff and electoral (Ref.7) No.1 ,4,6 in the first six months of CDS No. 2,3,5,7,8 in the next six months of CDS No. 1,4,5 will be repeated in the next year of CDS Performance Making the staff and elected body accountable to Prior to the CDS contract the CDS Developing KMC mechanism to contact different Prior to the CDS contract stakeholders Making complete list of NGOs and their objec- After 3 months of CDS implementation tives operating in the KMC area ,, IN$TITUTIONAL 0EVELOPIVIENT . Table 2: lnsatitutional Development Issues and Implications Foundation: Issue-Action Matrix ISSUE IMPLICATION 1) The need for clear cut vision ofKMC The current vision can not represent city dwellers' willingness to participate in the city development activities o it is difficult to develop follow-on planning and policies based on current vision 2) The need for explicit objectives ofKMC o Always in the state of confusion o Programmes and policies are not in consistence to the vision 3) The need for revision in the provision of 0 Diflicult to work even at the level as the local body Act and Regulations 4) The need for clarity on whether KMC is o Ownership problem a local body or local government 5) The need tor a longer term perspective of 0 Difticult to work on different development activities city development 0 Only peace meal problem solving approach for the shorter term 0 Effect of instability due to changes in the government 6) The need for making Board, Committees, o Diflicult to work on time Advisory bodies very effective 0 No effective control mechanism 0 Increasing fiscal irregularities at work 7) The need for making the elected and ad- o Ditlicult to work as per plans and programmes ministrative staff responsible at work 0 Diflicult to make them accountable o Avoidance of responsibilities Issue-Action Matrix ISSUE IMPLICATION 1) The need for making Mayor powerful in 0 Diflicult to formulate and implement programmes and policies the sense that there should not be diffi- 0 Always Mayor has to select wrong way to bring city electoral in favour even culty in formulating and implementing the just to pass progranune and budget from the City Council real development works. 2) The need tor m.nimising political difter- o Ditlicult to bargain with the govemment with such a divided attitude ences among the elected and plan and o Increasing politicisation in development works. execute city development activities 3) The need to enhance current knowledge o Delay in the implementation of improvement programmes and abilities of the administrative and o Diflicult to bring a status quo elected personnel 4) The need to balance sources and uses of o Diflicult to plan revenue and expenditure funds o Increasing uncertainty 5) The need for the establishment of a man- o Difticult to make management plans agement and financial information system o Difficult to know different sources of funds o Difticult to control and monitor financial activities 6) The need tor controlling the increasing o Degrading images oflocal development political units fiscal irregularities 0 Ditlicult to collect tax, charges, fees from the citizen 107 ISSUE IMPLICATION 7) The need for using the services ofNGOs, 0 Difficult to deliver services in the total constituency local clubs and other user committees to 0 It is difficult to share the fruit of democracy working only at the center enhance the capacity of KMC 8) The need for proper M&E and reporting 0 Very difficult to trace on what is happening and where mechanism 0 Difficult to find the status of different project works in the KMC 0 No coordination of activities 0 No feed back mechanism 9) The need for making the organisation 0 Difficult to manage task perfonnance structure very effective 0 Confusion among staff and elected members in the use of authority and power 10) The need for involving private sector in 0 It is difficult to work alone specially to collect revenue the collection and mobilisation offinan- D It is difficult to reach each segment of KMC without private sector par- cia! resources ticipation 11) The need for reviewing acts to increase 0 State of confusion in executing development activities in city area co-ordination of KMC with other gov- ernment bodies 12) The need to improve physical and mate- 0 Difficult to deliver KMC service rial infrastructure of the KMC D Difficult to maintain inter-departmental co-ordination 13) The need for appointing a CEO for a 0 Difficult to maintain flow of work fixed tenure 0 Difficult to monitor and supervise KMC activities 14) The need for establishing and using data 0 Difticult to co-ordinate and monitor activities within the department base system 0 Overlapping of activities among the departments 15) The need for performance evaluation 0 There is no difference between a perfonner and non perfonner system 0 Difticult to feed back in tenns ofperfonners and non perfbnners 16) The need for institutional arrangement 0 Difticult to develop ownership in the change progranune to increase feeling of ownership in D Difficult to set up a monitoring and evaluation system devlopment works 0 Difficult to convince people 17) The need for dissemination ofknowledge 0 No proper effect of on the current working practices and skills acquired from various pro- 0 What electoral and staff learned while visiting other countries is no properly grams by electoral and stati disseminated for the benefit of KMC. Performance ISSUE IMPLICATION 1) The need for making staff and electoral o Lack of commitment body accountable o Avoiding responsibilities 2) The need for involving line staff in the o Difticult to implement projects because ofless feeling of ownership towards project management and implementation the project process 3) The need for d-eveloping mechanism to o Difticult to know the effectiveness ofKMC plans and programmes contact with KMC's stakeholders 4) The need for involving local NGOs and o Difficult to reach the KMC in each and every area user committees in the process to in- crease performance effectiveness of the KMC from centre to the grass root level 5) The need for using local support agen- o Difticult to implement KMC's programmes in the grass root level cies to train local communities in the de- o Difficult to maintain the already perfonned activities velopment works ~·~. ;, ,:,.,:;. : i' 120 market facilities to the local people some concrete measures such as establishment of 'Haat Bazar' (Public Market) in nearby open land or fixing the timing for local hawkers in a designated area should be enforced. Traffic flow pattern should be studied and 'one way', 'two ways' or 'tidal flow' system should be introduced keeping in view local people's convenience, traffic demand and location of the streets. Similarly, study should also be carried out- for entry of particular type of vehicle, for transportation of goods and people and fixing the timing. With regard to Historical Zone old monuments and temples a separate system will have to be devised in coordination with agencies and Narrow City Core Road local people concerned. concentrate traffic onto the congested central area streets. With a few notable exceptions, of category A and B 4.2.4 Transport Management roads, others within the Ring Road are narrow low grade, and unsuited for major traffic flows. There is a clear Currently there are mainly four institutions involved in need for some additional road links so as to form a the development of Kathmandu Valley transport strategic network linking the main sectors of the city. networks and their management. These are: These roads would reduce the dependence upon the central area. CJ Department of Roads (DOR) D Department of Transport Management (DOTM) The road network within the Municipal area is illustrated D Traffic Police (TP), and on plan (Annex 2) focusing on Greater Kathmandu. D Municipalities. Within the Ring Road there are ten radial roads, which converge to a central area one-way system around Ratna Department of Transport Management (DOTM) is Park/Tundikhel. Road access within the historic core responsible for transport planning, management, policy areas of Kathmandu is severely restricted by the form formulation. DOTM is also responsible for coordination and density of the development and by the available with international agencies relating to management and width of the streets. execution. (See Annex 3). In reality, its function is Access to the surrounding residential areas within the Ring Road is through a series of secondary roads, which are built to inadequate standards of both alignment and width. Access to individual plots within these areas is often tortuous and indirect. Substantial sections of the urban area have minimal, or no, vehicular access. There is very little room to widen the existing streets. Since there is no room for further widening in the existing structure, it is suggested that a street/road inventory be prepared and investment plan for upgrading and maintenance be carried out according to the priority. At the same time, in order to provide .CIJY DIAGNOSTIC REPORT limited to activities relating to permitting route license, City Roads, which are in the range ofRs.60.00 million, vehicle registration and transfer of vehicle ownership. Rs.64.00 million, and Rs. 71.5 million respectively, major While the rest of the works related to traffic are being improvement works are not envisaged. undertaken by two different wings ofNepal Police under the Ministry of Home Affairs, traffic management is In addition, lack of appropriate professional manpower being looked after by Traffic Police and matters related in traffic engineering and deficiencies related to this to driver license are being taken care by a separate wing aspect are being observed, which has led to little exercise of Nepal Police. Although it is defined in the in planning to improve the present traffic system. Lack organizational set-up that Nepal Police is responsible of proper coordination between DOTM and TP has only for matters related to traffic control, its current further aggravated the situation resulting in disorganized functions have been widened to embrace management management in parking system, poor intersections and aspects (See Annex 4). But desired quality of works could disorganized pedestrians movements including messy not be achieved due to lack of trained personnel in traffic vehicle flow pattern. This has consequently affected engineering and management. reduction in road capacity, increase in accidents and in<:.:rease in traffic jams and increased pollution. Although DOTM is responsible for the overall transport management, because of its weak organizational set-up, Under the current Local Self-Governance Act 1999, it has not be able to fulfill its role. Its whole structure Kathmandu Metropolitan City (KMC) has been vested needs to be reoriented and reframed to bring it to work with certain authority among others, activities related in line with the delegated functions. The main reasons to construction and maintenance of road networks other for non-functioning could be attributed to the agency's than those currently under the jurisdiction of DOR. In inability to oversee it's deficiencies and to improve them. the circumstances, there is little scope for KMC to play This has been noticed from the fact, that no efforts have a major role in the transport sector. Given the diverse been made towards improving the present state of affairs nature and requirements of the various elements in the and the tendency is to continue the present practice. This city transport system it is essential that transport is reflected from the expenditures of the last two fiscal development and management responsibilities should years 2055/56 and 2056/57 and allocation of budget in be progressively placed with the main beneficiaries. With this FY 2057/58, which correspond to Rs.21.8 million, this approach urban road networks and their allied Rs.27.4 million and Rs.31.1 million respectively. This functions would become the responsibility of the is just adequate for the normal administrative and Municipalities. overhead expenses. The net result is complete vacuum in Transport Development and Management activities. 4.2.5 Traffic Management and According to the new ministerial set-up, the Department Associated Problems of Roads has been merged with the Ministry of Physical Planning and Works (See annex 5). Nonetheless, its As with transport management, four institutions are major functions remain the same as being exercised involved in traffic management. DOR Planning Section earlier except the Foreign Aid Division is expected to is responsible for design and planning while TP for be under the direct jurisdiction ofthe Ministry. In general Traffic control and DOTM for overall responsibility of DOR is responsible for planning and design, traffic management. In reality, TP is looking after, construction, rehabilitation and maintenance of roads through DOTM delegated authority, overall management of all the road network. On the Planning and Design control including application of one way system, side, although some planning exercise is being roadside parking management, installation of signs, conducted for major roads, valley roads invariably are operation of signals, management of traffic in being neglected. Because of resource constraints only intersections, issuance of drivers' permits, pollution minor works are being taken up from the Government's control, etc. DOR on the other hand, is playing an regular budget. Although some improvements of the advisory role with regard to traffic management, while existing road networks in the valley had been carried KMC is looking after the parking management, street out with the assistance of ADB, World Bank and JICA, cleaning, and to a lesser degree intersection design. None there are large areas still neglected. Considering the of these institutions has a strong traffic engineering expenditure made in FY 2055/56 and 2056/57, and section, which has created chaotic situation in traffic proposed budget for FY 2057/58 for Kathmandu Valley management. 122 URBAN TRANSPORT Peak period congestion is being experienced in the serious and continuous study and intervention of proper central area of Kathmandu. Much of the congestion measures including strict enforcement of law and order. results from conflicts between vehicles and pedestrians, Typical areas where improvements generally are needed from public transp01i vehicles loading and unloading include: improvement of black spots, vehicle testing I on the street, encroachment of footpath by shopowners inspection for road worthiness, driver training, traffic and road space by hawkers and debris, and poorly laid education, publicity, traffic police enforcement, road out junctions. In addition, inefficient traffic engineering safety measure, facilities for pedestrians, even science and laxity in enforcement of traffic rules and considering restriction of vehicles in some roads. regulations have also contributed to the inefficient use ofthe available road space. These conditions will further deteriorate unless facilities are improved for the 4.2. 6.2 Pollution pedestrians and public transport, and improved traffic management techniques are adopted. The main sources of pollution in Kathmandu Valley are: the brick kilns, Himal Cement Factory, vehicular pollution, Vehicular access within the historic core areas of domestic fuel and roadside rubbish and dust. Nepal Kathmandu has been a major problem. Increase in vehicle Environmental and Scientific Services (NESS) has been ownership, and increased use of taxis and delivery measuring Kathmandu Valley's air pollution levels for the vehicles, have further aggravated the conflicts between past ten years. The most recent monitoring results from pedestrians and vehicles. Continued growth has led to NESS show that things are much worse than in 1993. 2 conflicts and environmental pollution. These areas are The conclusion is that Kathmandu Valley air quality is predominantly pedestrian in scale and nature and degrading. The pollution is exacerbated in winter by movement of any big vehicular traffic should be restricted. valley's bowl shaped topography, which creates severe temperature inversion trapping warm, polluted air surface beneath a blanket of colder air during the dry winter 4.2.6 Road Safety and Environment months. While dust is one ofthe main factors contributing to pollution, carbon monoxide and hydrocarbons equally Lack of strong efficient functioning and coordinated are contributing to the increased pollution. ef£)rts by the concerned agencies has resulted in adverse effects being experienced in road safety and pollution. A study of vehicle emission conducted in 1996 has The current situation related to these is given below: depicted a very disturbing picture of Kathmandu Valley with huge emission of carbon monoxide and hydrocarbons accumulating in the air. The increased 4.2.6.1 Road Safety trend of petroleum/diesel based vehicles mainly old buses and trucks and slow moving vehicles, dieselrun Traffic Police has been keeping a record of road tempos and motorcycles are the major causes of air accidents since 1992. The accident record provided by pollution. Observations in Katlunandu Valley, specially the Traffic Police corresponds to 1999 (see annex 6). in dry season have indicated very high roadside air From the review, it reveals that several factors are pollution dominated by particles and odour to a large involved in road accidents. These are mainly pedestrians' extent emitted by highly smoking vehicles of all types. attitude, drivers' faulty actions, poor visibility, faulty Total Suspended Particles (TSP). Particulate Matter less conditions of vehicles and temporary hazard in roadway than lOum (PMI 0) and Sulphur Dioxide (SO) measured - although poor riding road surface and poorly designed by Kathmandu Valley Vehicle Emission Central Project crossings and parking systems have not been recorded, in major traffic sites of Kathmandu revealed that which could also be the causes. Combination of several concentration of TSP, PMl 0 & S02 were well above or even one factor could contribute to any type of the WHO guidelines 3 • Air pollution is not only accident. Although various research works in different considered a health hazard but also helps cause damage countries have identified the areas for improvement to monuments and the ecosystem. Although major steps appropriate to their need, in our context, in view of the to control the pollution from other sources are not yet growth of road traffic and the number of injuries, deaths visible there has been a thrust towards the use of and casualties arising therefrom, it is unlikely that the pollution free vehicles through emission control system, problems of road safety could easily be mitigated without promoting the operation of pollution free electric tempos 2. Ref The article of Mr. Kunda Dixit published in Nepal Times of 28 June- 6 July 2000. 3. Ref Pre-feasibility study by CEMAT Consultants (P) Ltd. for extending trolley bus services within 123. Kathmandu Valley dated June 1999. C.ITY DIAGNOSTIC REPORT and LPG-run vehicles. But considering that buses and In addition, there are three Town Development trucks play a dominant role in transport system other Implementation Committees in Kathmandu Valley. alternative measures such as use of improved gasoline Kathmandu Town Development Implementation quality, regular engine check-up, and also use of Committee is one of them, which is the main planning electricity and LPG run vehicles etc. need to be explored. regulatory body for Kathmandu City. In addition Recently, an Urban Enviromnent Improvement Project Municipal Authorities are not running effectively under the ADB-PPTA program is underway, with the because of conflicting responsibilities, KMC as such has project expected to be completed by October 2001. suffered from limited authority to act without HMG Ministry and agency support and approval. It therefore, It should be also noted that, it is not only the vehicle seems appropriate, for the effective functioning of an condition that creates pollution. Disorganized traffic, institution that instead of having various tiers in the road geometry, and riding quality equally contribute to Government authorities there shall be one agency to pollution. It is therefore necessary to also review these formulate the guidelines and to oversee the work in line aspects while corrective measures are considered. with these, while the execution and implementation are left to the concerned line agencies with clear delineation of functions and authority. 4.2. 7 Institutions Currently, there are five major ministries and 13 These are four levels of institutional involvement in the associated line agencies including three departments planned development of the valley and within each level involved in planning, governing and providing services there are institutions with direct and indirect involvement in Kathmandu Valley. Because of differing priorities as as shown below: well as conflict of jurisdiction and authority, the agencies planning and execution are not well coordinated. The Ministerial Level municipalities, through the Local Self-Governance Act A. Ministry of Housing and Physical Planning - 1999, could prepare and implement urban development currently reorganized as Ministry of Physical activities other than those related to transport Planning and Works (MPPW) effective 6 Baisak development. At the same time, the Act has specified 2057 (18 April2000). that KMC will be responsible for construction and B. Ministry of Local Development. maintenance of roads other than those under the C. Ministry of Works and Transport- reorganized as jurisdiction ofHMG. Despite this, KMC is implementing Ministry of Labour and Transport Management some road improvement activities, but due to while activities related to works have been overlapping of responsibilities between different line transferred to MPPW. agencies, none of the agencies have been able to D. Ministry of Finance. implement the development activities in an effective and E. Ministry of Home Affairs. planned manner. Line Agencies (Other Departments Within Ministry) KMC is not a body instituted through the constitution. A 1 Department of Urban Development & Building It is a body, framed under the Executive authority of the Construction. Government with functions and duties defined by the A 2 Department of Roads Act, under which KMC does not own any urban roads C 1 Department of Transport Management except those constructed through its own resources. E 1 Nepal Police Currently, 12 departments headed by the Mayor have been established to look after various functions (see Government Authorities annex 7). Under the present structure, urban 1. Kathmandu Valley Town Development Committee. transportation comes within the jurisdiction of two (being reorganized as Commission) departments viz. Public Works- mainly concerned with 2. Town Development Committee. the construction and maintenance and Urban Development responsible for traffic management. District & Municipal Authorities Because of the facts described in section 4.2.4, activities 1. District Development Committee related to transport sector are limited. It is therefore 2. Municipalities (Including Kathmandu Metropolitan necessary that Local Self Governance Act 1999 and City) URBAN.TRANSPORT Transport Management Act 1992 be revised, defining With regard to traffic and transport study and the KMC's role in transport sector. implementation, it is recommended to consolidate traffic and transport management throughout the country including Kathmandu Valley and other urban areas. A 4.:3 POUCY detailed study will be carried out and a 20 years transport management master plan for road transport and 4.3.1 Transport Policy accordingly short-term plan will be formulated and implemented. In addition, a master plan for the The Ninth Five -Year Plan (1997-2002) has specified construction of infrastructure of urban transport will be the objectives and policies with regard to development formulated. In such a master plan, the role of of urban transport system. These are: municipalities in construction, maintenance and repair of urban roads, construction of roads to be improved 0 To initiate the concept of multi-modal transport under urban development program, footpath, bicycle network so as to have minimum transport cost for lane, bus stop, parking lot, subway, fly over, over-bridge, import and export. and the development of public transportation system o To carry out suitable road classification in order to reducing environmental pollution will be included. construct, maintain and operate transport structures Remedial measures for problems of passengers transport and services in a sustainable and reliable manner entrepreneur, transp01t worker and pedestrians will be and to implement suitable institutional undertaken. For this purpose, bus route and passenger management/structure by identifying institutional movements study, goods transportation study will be jurisdiction st1ucture and autonomy undertaken. 0 In roads with high traffic density minimum service standard for transportation will be decided and participation of road users in repair and maintenance 4.3.3 Regulatory Measures of roads will be increased through the introduction of toll tax. The Department of Transnort Management under o Sectoral responsibility and accountability need to Ministry of Works and Transport is also responsible for be clarified to develop integrated transport system traffic and transport management, vehicle emission and institutional autonomy. pollution control, road accident prevention and control, o Construction works of new roads in urban areas issue of driver license, vehicle inspection and so on. will be undertaken after preparing manual and Various problems were identified during the discussions making provision in act and rules. with concerned officials of the Department. Some major ones are listed below: With regard to traffic and transport system it has recommended that. o The Traffic Transport Management Act 1992 empowers DOTM to carry out its responsibilities o 20 years transport management master plan will be stated above. But weak organization and lack of formulated after detailed study and accordingly financial as well as human resources have hindered programs will be formulated and implemented. the implementation of the Act. o Special arrangement wi Jl be made for the prevention 0 A strong 'cartel' operates in the transport sector, of road accidents and for ensuring roads and which has been the major obstacle to the smooth transport safety. functioning of the system. This cartelling system is o Suitable programs will be conducted for the use very effective in making any government policy and development of pollution free vehicles. ineffective. Polluting vehicles will be gradually discouraged. o The transport associations and organizations are highly biased towards their own interests. 4.3.2 Traffic and Transport Management Similarly in accordance with the Local Self Governance Considering the problems related to traffic and transport Act, KMC's functions have been delineated. It has also management it is suggested to strengthen the existing spelled out, the procedures for planning, programming institutions, with improvement in their physical facilities. and execution of development activities. Its duties are CITY DIAGNOSTIC REPORT defined. But, the Act does not provide the legal authority cent HMG/N resources. For the Kathmandu Valley City to function on the "oad sector currently under the Roads, out of the anticipated expenditures of Rs. 71.5 jurisdiction of the Government. As a result, its role under million, Rs 21.5 million is provided through HMG/N the present situation, in this sector is very limited. resources and Rs. 50.0million from loan (which is 70 per cent of the total). It reflects that major development works depend mostly on donor agency's assistance. 4.3.4 Transport Sedor Investment While looking at the KMC's current revenue and expenditure breakdown prepared by Ministry of Local The construction and development of main road network Department, in February 2000 there is very little room in the country was largely dependent upon foreign aid for further investment in transport development and assistance. Most sections of the strategic network activities. However, with delegated authority under Local were built and subsequently maintained with the Self Governance Act 1999, some additional revenue involvement of bi-lateral or multi-lateral agencies. could be expected. Unless detailed exercise is carried Funding had been either in term of direct grant, grant- out it is difficult to forecast the amount that couldq be aid or soft-loans. An analysis of the road sector budget allocated for development works. for the current fiscal year (FY 2057/58) has provided an overall view of the anticipated expenditures divided into Recently DOR has proposed 'establishment of a self- Regular and Devel Jpment and the level of donor sustaining fund for road maintenance' as a policy option involvement is presented in table '4' which illustrates envisioning a self- sustaining system ensuring adequate the main headings and division of funding sources. The fund to keep the maintenance process continuously break down of the development budget shows 33 per ongoing in a plmmed manner. The Nepal Roads Board cent grants, 28 percent loan and the remaining 39 per (NRB) Act, which is still in draft form, is to create a Table 4: Budget Provision (Rs. in '000) Activity Actual Revised Proposed Expenses Estimated 057/58 055/56 056/57 (2000/01) (1999/00) (1998/99) ROAD TRANSPORT Total Total Total HMG Grant loan Regular Overhead expenses of Dept Div. 114,841 128,408 153,375 153,375 Road Maintenance 39,466 30,000 30,000 30,000 Sub Total 154,307 158,408 183,375 183,375 Development National Highway 413,552 457,033 985,5 70 293,270 436,500 255,800 Sub-Highway 642,311 802,701 13,52,720 527,620 504,500 320,600 Tourist Div Road (Paryatan Marga) 11,727 12,670 31,000 6,500 7500 17,000 Urban Road Kathmandu Valley Urban Road 59,997 64,000 71,500 21,500 50,000 Maintenance & Rehabilitation 31,84,708 22,89,246 18,47,520 659,820 544,900 642,800 Pulharu (Bridges) 322,533 6,08,726 697,400 386,700 136,600 174,100 Others Project 66,860 85,255 157,075 91,675 37,400 28,000 Other Transport 977 980 1,500 500 1000 Bisnumati Link Road 1,800 17,000 16,000 1,000 Other Development 175,770 87,860 27,633 60,277 Sub Total 48,11,063 45,87,366 53,37,055 20,91,445 17,47,033 14,98,577 TRANSPORTATION MANAGEMENT Regular 16,903 18,651 21,093 Development 4,926 8,742 10,000 Sub Total 21,829 27,393 31,093 Source: MOF' 126 ;,'FF, l.JR\?A,J',l.X~NSPORT public- private management board. The Act provides addressed in order to promote a more efficient road cost sharing mechanism between NRB and KMC, system meeting the needs of the user. according to which, of the total maintenance cost 35 percent will be borne by the Municipality and the It is important for the Government to review the role of remaining 65 percen+ by NRB. the road system in the light of development needs and available capacity. To fully pursue this objective, the For the purpose of financing by the NRB all the Districts transport requirements without a road connection must and lUrban Roads will be under the ownership of the also be assessed. It is also important that provisions be local Government. However, the proposed NRB- Act made to promote a greater direct contribution by the road- does not spell out the ownership ofKMC. Hence, there user towards the costs of providing and maintaining road should be a Road Act, which should specify the KMC's infrastructure. For success, this increased contribution road ownership for the purpose of financing by NRB. must be related to a guaranteed level of service from the Unless this becomes effective, the fund created by NRB roads. What is dear is that roads must no longer be may not be effectively used for urban roads. Until such considered in isolation. The focus of government should time, as the Road Act is amended and adequate revenues be on service delivery in relation to need and the most are generated from its own activities, the Government cost-effective means of providing the service should be should provide necessary funds through its annual applied. In many cases this will entail an integrated budgetary provisions. approach to the provision of transport services. The demand of the urban areas and immediate environs 4.3 . 5 Finandng from Private Sectors is not only for transport infrastructure per se but, more importantly, for a high level of service to support and There are relatively few opportunities for the encourage an increase in economic activity and to mobilization of private sector funds. Any investor will enhance personal mobility in relative comfort and safety. want to see that the project is potentially beneficial and These demands have to be met cost effectively and under that, there is a guarantee and contractual certainty. For conditions of rapidly expanding population growth. road projects specially there are various risk factors, which tend to discourage private participation. As would be expected, traffic in Kathmandu is also increasing substantially and is accompanied by the Major portion of required funds for maintenance will associated problems of congestion and pollution. be made available from N epa! Road Board (NRB). Once Although it is difficult to accurately determine the enacted, this will bring some relief for allocation in numbers and increase of vehicles a feel for the problem maintenance fund, which in tum will help provide more can be obtained from the increased trend. Special funds for the construction works. planning and control measures are urgently needed to reduce congestion and improve the urban environment. 4.4 ANAlYSIS AND Traffic planning and management in the urban areas are IMPROVEMENT MEASURES inseparable from land-use management. As little attention has been paid to the latter, it is not surprising 4.4 . 1 Management System that traffic planning and controls have received, at best, only superficial attention. Consideration now needs to Roads are the dominant mode of transport m be urgently given to progressively introduce both land- Kathmandu and their derivatives are complementary use planning and traffic management together with the and mutually reinforcing to an increasing extent. From attendant legal and regulatory controls. practical and transport cost considerations, roads will continue to carry the bulk of passenger and freight The demand for transport services is greatest in the urban movements. However, it is important to note that the areas especially Kathmandu. This rapidly increasing considerable cost of road transport infrastructure is at demand is leading to serious problems of traffic congestion present, largely borne by the general public through that can only get worse unless mitigating measures are fiscal taxes and is not therefore directly reflected in now put in place. The main interdependent options for the costs to the road-user. This factor needs to be improving urban transport can be summarized as follows. 127 CIT'( DIAGNOSTIC :REPORT o Comprehensive land-use plans should be prepared An urgent need now exists for government to clarity and implemented for the main urban areas and reallocate responsibilities to avoid conflict and to especially Kathmandu. As far as possible, the plans promote accountability. This in turn will require enabling should progressively aim to separate zonal areas. legislation where control needs to be enforced. The Necessary controlling legislation should be passed. concerned institutions should initially identity the main 0 Transport Master Plans including medium to long- issues. The Municipalities should be fully responsible tem1 traffic management measures should be drawn- with support from the other agencies on demand for up for Kathmandu and the principal urban centres. transport provision, transport management, and the level The Plans should include road development and of transport service offered in the urban areas. improvements together with vehicle management and controls covering parking, one-way systems, Roads in the urban areas not only serve as access for loading and unloading operations, limitations on vehicles and pedestrians but also form a conduit for the access. location of public utilities- sewerage, telecomm- o Comprehensive road safety measures should be unications, water and electricity. This dual function drawn-up and implemented for the protection of produces a conflict of interests between: all road-users. These measures should be backed by tighter vehicle controls and a programme of o the requirements of the utilities to extend, improve training and education on safety related issues for and maintain their services that are installed in the drivers and pedestrians alike. The driving test road corridor, and should relate strongly to this programme. D The responsibility of DOR and the Municipalities o Major improvements are needs in public transport to provide and maintain a responsible level of road in terms of reliability, comfort, safety and price. In access at all times. this respect, there is scope for increased involvement of the private sector but government The position is exacerbated by the number of agencies will need to maintain a reasonable degree of involved and the resulting difficulty in effecting the regulatory control in the medium-tenn. Optimum necessary planning, co-ordination, management and use of trolley bus services is possible where electric quality control by these agencies. power is available at commercial rates. On this basis, there would appear to be opportunities for private sector expansion of the trolley bus service 4.4.2 Existing Institutions and Role in Kathmandu. ofKMC The above requirements can only be fully addressed in DOTM is responsible for Public Transport Development the longer-term. However, a start needs to be made now Plan. Lacking capacity in planning, no study has been to improve the rapidly deteriorating situation that exists carried out in transport system and its allied functions by introducing measures on a smaller scale. These in a scientific manner. As a result, deficiency in planned measures should cover the areas noted above and implementation of its related activities has been noted. progressively lead to the introduction of major reforms Similar situation has also been observed in management in traffic management, public transport and road safety. side. It is therefore, felt that there is an urgent need to review its organizational structure and improve it In order to initiate these reform measures, responsibilities according to the need. must be clearly defined and delegated by government. However, at present, there are several government Since various agencies are involved in the planning and institutions concerned with road transport and transport execution process and responsibilities are parceled out management. Apart from the main government body, and are delegated to other agencies as the occasion arises, MPPW/DOR, there is the Department of Transport the transport sector has experienced unplanned, Jess Management (DOTM), the Traffic Police, and the coordinated efforts. Since DOR, TP and DOTM Municipality. These institutions have important roles in functions extend nation-wide their organizational traffic management and road safety but with overlapping structure should be examined and improved on a wider and often conflicting responsibilities. scale. With regard to KMC, in view of the Government's policy that the Local Government should be strengthened o Establish, operate and maintain transportation to look after local affairs, KMC's role in the transport equipment, workshop including street maintenance sector should be widened with adequate provision machinery. through amendments in the current Local Self Governance Act- 1999. While doing so, all prevailing The above functions can be carried out in two ways: Acts related to transport sectors should be reviewed. one, using services of the consultants for most of the Determination on functions of each agency should be planning and design works, while most of those related neatly defined so that clear accountability for functioning to construction and management could be carried out could be addressed. through contracts. Alternatively, these could be executed using KMC's own workforce but this will need a huge A general view of major activities in the transport sector organization and numerous working facilities. that KMC would be subsequently involved in is Alternative measures also need to be examined for highlighted below: effective implementation. For effective program implementation a coordinating Planning and Design committee is suggested made up of Mayor/ Deputy Major, all the ward chairmen, head of PWD, o Preparation of road inventory and conducting studies representatives of Traffic Police, DOTM, DOR and of traffic volume, parking, speed, origin and representatives of local residents. It is proposed that a destination of trips, and determine road/street and regular meeting be held monthly and special meetings transportation means to meet public demand capacity, whenever needed. The objective of establishing such a keeping in view each road network functions. committee is to coordinate all PWD activities and o Determining present and future needs for terminal disseminate information and gather unified views for facilities, and establishing priorities for such increased efficiency and synchronous efforts with full facilities and their installation. cooperation of all agencies concerned. Such arrangement D Coordinating transportation improvement programs will help provide opportunity to line agencies and local with other concerned agencies. communities to participate in the city development plans o Determining the need for improvement and and programs. expansion of road network. CJ Establish standards for the design and construction Since the foregoing task would take time, it is proposed of infrastructure and transportation facilities. that as an interim measure, KMC undertake the following o Prepare detailed engineering drawings and actions. specifications. o Determination oflocation, type, and specifications CJ Organize periodic traffic counts to identify flow of traffic-control devices, their installation and patterns, improve traffic bottlenecks and install operational system. required signs and signals at appropriate places in o Determination of prohibition of curb parking, coordination with Traffic Police and DOR. standing, and stopping. D Undertake traffic control and enforcement of o Establishment of parking regulations, one-way regulations by Traffic Police and Metropolitan City streets, through streets, stop intersections, and any Police (Nagar Rakchhyak) in coordination with other practices or procedures deemed necessary. DOTM. D Enforcement of above two programs. Absence of required study and programs carried out on an adhoc basis have resulted in the chaotic state of affairs Construction and Maintenance in transport management. It is therefore, desirable to carryout detailed study of the present organization o Construction and maintenance of ali road network structure vis-a-vis its functions and improve it according including foot path and other transportation to the needs for effective working environment. As an facilities interim measure to fill up the man power and resource o Supervision of construction of new facilities gap qualified professional personnel could be hired on .. :i!~lty .DIAGNO~>TIC REPORT contract basis or a consulting firm could be engaged. the total cost of transport and overshadowed the Alternatively they could be brought on secondment from derived demand. other department or ministries. D Ad-hoc planning and management- the road system is characterized by a unique combination of various factors. It is therefore, clear that a special approach 4.4.3 Transport Policy to road planning and management system is needed. This has not, unfortunately, been the case in the There is a significant gap between the investment being past and there is now an urgent need for a broad- made in the transport sector and the benefits delivered based strategy for road system management. Roads by the sector. In fact, the potential benefits of the sector should no longer be treated in isolation; the focus as a whole are not being fully realized. Four major must be on service delivery in relation to need and weaknesses have been identified in transport sector this approach should be supported by integrated and development that contribute significantly to this problem. coordinated transport planning. They are summarized below in terms ofthe roads sub-sector A new policy is needed for the future development of since roads are the principal transport mode, however, the transport infrastructure and the delivery of transport weaknesses apply in some degree to all sub-sectors. services. The problems with the existing approach have been broadly identified and these provide the basis for o Lack of relationship between development and defining a medium to long-term goal for achieving investment- with careful planning, investment in a improvement in the transport sector. single road can open up a whole region for development due to the potential influence area of Six interrelated objectives have been identified that are the road. However, the road does not necessarily intended to guide transport sector policy formulation and bring development in itself. For development to take implementation towards achieving the End Goal. place, complementary investments are normally required in other infrastructure such as community 1:1 Decentralize Road Network Administration. development and support through extension 1:1 Increase Implementation Capacity. services, health centres, etc. This essential balance 1:1 Maximise the Benefits from Available Resources. of interrelated investments has not generally taken 1:1 Provide Transport Services Related to Need. place due to weak and fragmented planning. D Obtain a Greater Direct Contribution to Road Costs 1:1 The provision of roads on a supply rather than a from the Users. demand basis- this is principally the result of D Give Due Consideration to Environmental Aspects. political commitments and ad-hoc expenditure on road construction. The supply driven road network All the objectives are mutually supportive and all are has not only increased the burden of maintenance equally important for achieving the End Goal. expenditure but has also contributed significantly to depressing the capacity of government and private sector organisations. 4.4.4 Transport Sector investment 1:1 Loss in serviceability - the unsystematic and wasteful road management practices carried out The breakdown of transport sector development over the years have caused a considerable loss in indicates that roads have received the largest share road serviceability. This has resulted in an increased while expenditure on other modes is comparatively need for costly rehabilitation and reconstruction and negligible. But, in fact, it is fair to say that roads sub- a loss of the capital investment made in the road. sector funding has been characterized by fragmented Due to the loss in serviceability, the roads have financing, weak implementation and inefficient use. impacted adversely upon the road-users. Road These funding characteristics largely derive from safety standards have gone down, while vehicle political expediency and a lack of coordinated operating costs (the significant proportion of total planning at the national level. When these funding transportation costs on high trafficked roads) have characteristics are taken together with the special increased considerably. The generally low level of characteristic of the road system, it is not surprising service provided by the road system has increased that the relatively larger investment in roads has produced poor returns. URBAN TRANSPQRT From the breakdown of the roads sub-sector allocations There is a wide range of legislative, regulatory, fiscal for the past three years two important points can be and similar support that the government will be derived as follows. required to provide for the BOT process. A high- level review of the present legal and constitutional o Routine maintenance should take priority over all requirements that may affect the process should other maintenance activities, however, the budget therefore be undertaken. New statutes will have to for routine maintenance has been steadily declining. be passed and these need to be identified, the legal Over the same period, the total road length under processes instituted, and the standing rules and maintenance has increased by 33%. This indicates regulations within government amended accordingly. a shortfall in spending on essential maintenance and The following issues are of particular concern in this hence, a serious loss in asset value. regard. D Although the development funding has increased by 6% considering the average inflation over that D Enabling legislation and regulatory authority for the period of about 8.5% funding has reduced in real road, which is a national asset, to be built and terms. operated by the private sector. D Special legislation to authorize and control the Domestic resource mobilization remains at a low level application of road tolls by the private sector. and multi-lateral and bi-lateral donor aid continues to D Legislation to acquire land for the project by provide upwards of 60% of funds. The donors therefore eminent domain. have a major role in development projects. D Fiscal authority for the conversion oflocal currency earning into foreign exchange in case of foreign Clearly, changes in the funding of the transport sector investors and the application of special taxation are required. If better returns are to be realised from the regimes. country's scarce resources, three interdependent steps are suggested. An equally important aspect is also to explore the possibility oflocal banks' participation. The Government D Firstly, funding must be more closely related to the should encourage private banks and institutions to capacity to use the funds effectively and efficiently. participate in the funding process.ln the present context, o Secondly, allocations should be made more international-financing institutions are funding transparent and should be determined on a "needs" approximately 60 to 70 per cent of the total cost of the basis to promote not only financial monitoring but, development works. If arrangements could be made for equally, network level performance monitoring. co-financing by local banks through lending process o And thirdly, local government and private sector major cost sharing will be available for local cost capacity needs to be increased. financing from local banks and hence, help to a certain degree for financing development. However, the international donor agencies should play a lead role, so 4.4.5 Private Sector Involvement there will be less chance for default by the recipient. There appears scope for private sector involvement in road infrastructure investment and 4.4.6 Stakeholders~ Views management using the BOT and other processes. However, it must be stressed that the BOT process A stakeholder meeting was held on 25 August 2000 at is not an easy route for the government to take and Kathmandu. In the meeting the Transportation Group it will place heavy demands on the bureaucracy. identified various deficiencies in the current Such a program should therefore start modestly transportation system. These are highlighted below: with one or two small schemes. These can then be used to test the market and build up the necessary capacity in government and the private sector for Traffic Management implementing the process. More ambitious schemes can follow as implementation capacity in o Encroachment of footpath by shop-owners and road both the government and the private sector is space by hawkers and lack of arrangement of timing developed. and space for running their business. Cl Inadequate provision of space area for stopping for CJ Inadequate bus Iaybys to prevent haphazard different type of vehicles. stopping on the road. CJ Reduction of road capacity due to road side parking. D Lack of adequate road crossing facilities for the CJ Lack of parking areas for long route plying vehicles pedestrians. and their encroachment within city area, and D Non-widening of roads in available space, and o Lack of public transportation management. o Deficiency in street lighting in pedestrian crossings and intersections. Infrastructure Development o Lessening of existing capacity due to non widening Coordination of bottleneck roads D Non improvement of road junctions D Lack of coordination in construction and D Lack of coordination in maintenance program maintenance between line agencies such as NEA, CJ Inadequacy of footpaths and their maintenance. Telecommunication and Water Supply Corporation. o Lack of diversion in high traffic density roads. Table 5: Urban Transport - Issues and Implications ISSUES IMPLICATIONS ACTORS 1. Road Development !:! Shortage of short and long-term 0 Poor urban transport management DOR!KMC planning and programming 0 Ad hoc transport rules and regulations 0 Lack of development strategy 0 Increasing traffic congestion bl Inadequate infrastructure facilities 2. Public Transport bl Lack of public transportation o Poor public transport service to users DOTM/KMC/ Private management transport operators 3. Traffic Management 0 Reduction of road capacity due to road 0 Increasing traffic congestion KMC/TP/DOTM side parking 0 Inadequate provi;;ion of space for stopping 0 Difficulty for vehicles to make short for different types of vehicles stopovers 0 Encroachment of footpatl1 by shop owners 0 Reduction of road and footpath capacity and road space by hawkers 0 Lack of parking areas for long route 0 Difficulty for long route commuters to reach plying vehicles and their encroachment the buspark within city area 0 Inadequacy of footpaths and their 0 Pedestrians forced to use roads maintenance 0 Lack of adequate road crossing 0 Pedestrians face difficulty in crossing busy facilities for pedestrians streets 0 Lack of enforcement of traffic rules 0 Haphazard traffic movements and regulations 4. Institution 0 Lack of proper coordination between D Uncoordinated and poor traffic management KMC/MOLD/DOTM/ line agencies DOR!TP 0 Overlapping of functions 0 Difficulty in apportioning clear responsibility 0 Conflict of jurisdiction and authority of different sectors of urban transport 0 Lack of professional manpower D Absence of strong institution and its management capability 5. Finance 0 Unplanned investment 0 Lack of new development works to improve KMC/DOR/Private 0 Financial constraints for development transportation in the city Banks/Private investors works ' ,;;· l'oll< &*s..tot legend oC ;,:::j rr,~l;&tl ''< o<'' ;; Bhadrabas - New Construction G) (2 Lanes) z 0 Ratomato (j) -'-! "'"" Widening 0 (4 Lanes) ::;o ,rn :; ,;'o ·······Widening (2 Lanes) 0 Khoriya :;:u, -l ' MASTER PlAN OF ROAD NETWORK > z 41 KATHMANDU CITY z m 2 3 4km DEVELOPMENT >< Scale ~: gl ~~~~ STRATEGY .. ...I. .:5· Source: Japan lnternati_onal ) z .\~r:i; KATHMANDU CITY z DEVELOPMENT STRATEGY 1"'1"'1 X .. Source: Japan International Cooperation Agency 1 t...;l (JICA) ,)'(~ ANNEX: 3-1 Organization Chart of Department of Transport Management Director General ,' fg{ \)";: I I '•.£;: L.-1 ·• Director Director I I I I I I I I l I Planning& Vehicle Route Mechanical Driver's Traffic Legal Administration Accounts Research Registration Permit & Pollution License Permit Control Section Section Section Section Section Section Control Unit Section Section Mechanical Empty -1 Pollution Control Specialist -1 DSP -1 Inspector -1 (Required Traffic Police on deputation from Nepal Police ANNEX: 3-2 NOTE: Unofficial Translation Department of Transport Management (DOTM) Function, Duties and Rights 1. For getting the transport service operated in an organized and effective way by conducting or getting conducted the study and research on its financial and technical aspect, to decide on the required policy concerning it. 2. To give necessary guidance to the individual, finn, company or institution related to transport service for good management and development of transport. 3. To give guidance to the individual, firm company or institution related to transport service for the transport of goods, as per the priority fixed for goods transport as per requirement. 4. To decide on the required route for the operation of transport service with due attention to passenger pressure and to fix the fares of public transport plying on these routes. 5. To manage to install traffic signs in public places as per international convention. 6. To decide on speed, load and commuter number of vehicles 7. To prepare and decide on the necessary standards for inspection of mechanical condition and feature of vehicles. 8. To fix the subjects and system of examination of drivers. 9. To take any other necessary action for strengthening of transport service. 10. Traffic and transportation planning management and strengthening. 11. Prevention and control of road accidents and implementation of accident rescue system 12. Countrywide comprehensive traffic and transportation study and implementation 13. Vehicle emission pollution control and monitoring and fixing of pollution standards. 14. Implementation of transport security system. 15. Time-to-time interaction among transport owners, entrepreneurs, workers and users and conduction of workshops. 16. Issuance of driver and conductor license. 17. Vehicle inspection and condition monitoring and issuance of road worthiness certificate. 18. Implementation of vehicle registration system and issuance of blue-book. 19. Implementation of road safety audit. 20. Installation of road signs and markings. 21. Installation, operation and maintenance of traffic signals. 22. Improvement of intersections including grade separation. 23. Design and construction of subways and fly over. 24. Computerized traffic control system implementation. 25. Coordination with Customs authorities and Nepal Police. 26. International transport operation and management. 27. Planning of electric transportation system 28. Adoption of principles of3-Es and 3-Cs of traffic engineering (3Es- Engineering, Education and Enforcements; 3Cs-coordination, cooperation and courtesy). 29. Posting speed and weight limits of vehicles 30. Deciding on-street and off-street parking lots and bus stops. 31. Giving permission for excavation of pavements and footpaths. 32. Issuance oflicense for operation of driver training centre, vehicle body building factory and automobile workshop 33. Appointment of transport inspector punishment (by HMG) a. For Violation of purpose of vehicle mentioned during registration, driving license, and exceeding limit of commuter number and goods weight Rs. 500-Rs. 2000. b. For (i) operating vehicles without registration (ii) operating vehicles registered in a foreign country without permission, (iii) changing colour, seating capacity, appearance, engine or chasis without permission, '137. (iv) operating public transport service without permission, (v) operating public transport service without registration (vi) collecting the transport fare exceeding that fixed by DOTM (vii) interrupting the traffic (viii) incurring losses for the vehicle and passenger involved in accidents- Rs. 1000- Rs. 5000. c. For operating driver training center, vehicle body building factory or automobile workshop without permission- Rs 2000 to-Rs. 10,000. d. For violating other provisions of the Act or Rules or issued order- Rs. 200 toRs. 1000. e. For hijacking the vehicle and passengers (i) Fine up toRs. 25,000 (ii) Imprisonment up to 5 Years or (iii) Both (i) and (ii) £ For manhandling driver, conductor, security men, other vehicle staff or commuter, obstructing traffic, damaging vehicle or incurring losses to vehicle or people and goods, carried by the vehicle (i) Fine ofRs. 1000 or (ii) Imprisonment up to one year or (iii) Both (i) and (ii). References l. Traffic and Transport Management Act - 1992 2. Traffic and Transport Management Rules - 1997 3. The Ninth Plan (1997-2002) ANNEX: 4 Valley Traffic Police Organization .,. I w MONITORING S.S.P. STAFF FINANCE ACCOUNT Inspector I <::1 <::1 " }-- S.I + LOGISTIC S.P. .....__ I t AS.T + + -+ PUci\.NNING P.DONISTRATION MOUNTED WOMEN TASK FORCE R&D Dy.S.P. AS.!. POLICE AS.! SPECIAL SQUAD Inspector DyS.P • lr WELEARE ~ JCO'S + OPERATION AREP.S EMISSION DYS.P INVESTIGATION DYS.P-(4) TEST Inspector DYS.P • • INTERNAL SECURITY MGMT CEREMONIES S.I t FESTIVALS ~ SECTORS RECORD f+ Inspector ~ GEN. HIGH-WAY ADMINISTRATION RECORED j-. Inspector SPOT CHECK DOCUMENT OUT- POST • JOCS t- ~ VVJPIVP r- S.I ~ MOVEMENTS [.- PENALTY PENALTY PERSONNEL S.I BEATS ~ VEHICLE f+ r. r MGMT f+ C.LO'S PASS ETC. S.I HIC PEAK D. OS ROOM j.- r.- y.. HOURS 1<011 OPEN ROOM COMM-MGMT I+ . l ANNEX: 5 DEPARTMENT OF ROADS (Organization Chart) Proposed Organization * This unit will be under the Ministry **Two will be combined to one [DIRECTOR-GENg DG-OFFICE I SJ m I I I I 1J FORIGN MAINTENANCE PLANNING DESIGN BRANCH MECHAI>!ICAL 0 ;o. CO-OPERATION BRANCH BRANCH DDG ** BRANCH _-_-I BRANCH DDG DDG **" DDG (Mech.) DDG * I I _j I PROJECT I DIRECTORATE Planning & QUALITY EQUIPMENT FINANCIAL (ADB) BI-LATERL 6 Regional Road CONTROL MAINTENANCE ADMINISTRATIVE ADMINISTRATION 1----- 1----- Programming Unit - CO-OPERATION OFFICE UNIT & SECTION SECTION TTNTT MANAGEMENT SECTION T ADB MONITORING & EQUIPMENT PROJECTS '--- MULTI-LATERAL 25 DRO - EV ALUAT!ON UNIT ROAD UNIT PROCUREMENT CO-OPERATION - & TRAINING OFFICE TTNfT SECTION - CENTRAL LEVEL& MECHANICAL AUDITING GEO TRAINING - ENVIRON!viEHT AL - BRIDGE UNIT CENTRE UHIT BOOK '--- KEEPING 6HEAVY EQUIPMENT ROAD SECTOR DIVISION '--- SILKS & '--- TESU DEVELOPMENT I l DOCUMENTATION UNIT PERSONAL INTERNAL CENTRAL LEGAL& ADMINISTRATION AD MINIS- STORE LAND 8 MECHANICAL TRATION CO!viPEN- OFFICE SAT! ON ' -- --- ANNEX: 6 Accident Record Table: 1 All Accidents Kathmandu, Lalitpur, Bhaktapur (in Percentage) Collision Type Fatal Serious Minor Damage Total HeadO 10 12 5 0 8 RearE 11 5 6 0 3 90deg 1 2 3 0 3 Side 1 2 2 0 2 OverT 6 5 7 0 6 Objl 2 <1 1 0 1 Obj2 3 2 1 0 2 ParkV 1 1 1 0 1 Ped'n 62 64 70 0 67 Aillml 1 0 <1 0 <1 Other 11 4 4 0 4 Total 100 100 100 0 100 67% of accidents involve pedestrian. Accident Record Table: 2 AU Accidents Kathmandu, Lalitpur, Bhaktapur Jn p;ercentage') (/ Driver Error Fatal Serious Minor Damage Total None 22 25 38 0 32 Care 52 23 29 0 34 Fast 19 36 23 0 Close 4 1 1 0 1 Signal 0 1 <1 0 <1 OTake 2 6 3 0 4 Turn 0 1 2 0 2 Sleep 1 6 1 0 2 Other 1 2 3 0 2 Total 100 100 100 0 100 In 32% of the casualties drivers are not responsible. Driver error: careless driving 30% and fast driving 26% cause 56% accident casualties. Accident Record Table: 3 All Accidents I<.athmandu, Lalitpur, Bhaktapur ') m p;ercentage, (J' Casualty Class Fatal Serious Minor Damage Total Ped'n 29 34 38 0 36 Cycle 6 7 00 0 10 Riksh <1 <1 <1 0 <1 Mcyol 18 23 22 0 22 Au toR 3 7 11 0 9 Car 5 8 6 0 6 PickU 1 <1 <1 0 1 Mibus 3 7 4 0 5 Bus 25 10 5 0 8 Truck 8 3 2 0 3 Other 1 2 <1 0 1 Total 100 100 100 0 100 The maximum casualties are of pedestrian (36%) followed by motorcycle riders (22%) and cyclists (10%) Accident Record Table: 4 All Accidents Kathmandu, Lalitpur, Bhaktapur (in Percen.age) Vehicle Owner Fatal Serious Minor Damage Total Govt 0 2 1 0 1 Corpn <1 1 1 0 1 Diplo 1 <1 <1 0 <1 Private 39 49 55 0 51 Public 60 47 43 0 47 Police 0 0 <1 0 <1 "\rmy 0 0 <1 0 <1 Total 100 100 100 0 100 Accident Record Table: 4 All Accidents Kathmandu, Lalitpur, Bhaktapur (in Percentage) Time (HRS) Fatal Serious Minor Damage Total 00/01 3 2 2 0 2 02/03 2 2 2 0 2 04/05 4 5 2 0 3 06/07 9 7 6 0 6 08/09 16 12 9 0 10 10/11 5 10 11 0 10 12/13 8 9 12 0 11 14/15 7 11 13 0 12 16/17 20 13 15 0 15 18/19 12 11 14 0 13 20/21 9 11 10 0 11 22/23 5 7 5 0 5 Total 100 100 100 0 100 35% accident casualties occur during dark hours. Source: Kathmandu Valley Traffic Police. KATHMANDU METROPOLITAN CITY OFFICE ANNEX: 7 lvlE1ROPOLIS COUNCIL A1"',....t"tl1nt c"':Arnm1ttF-P f& ()thPr l":Amm1ttPP~ r AdvisorvBoard ]--{- METROP~A-~entCommittees • I [ . ~~;~ I Proto col & Mavor's Secretarial I I DeoutvMavor r'-ihT Plann-incr I Dffinf.v TvT:=~vnr 1 ~ S:F:r:rP.t.r.ri:=!~- j I -~ecm,;rv-~ I AnrtitlJnit ~ I ~~~~.r.tv~f~ITP.t1ti~-l t AdministratDn Law& ... ., Enforce trent ... Finance ... Revenue + Infurrnati:m& ... Urban + ., Environment ., , , Culture, Publil: ! Ca:rm::o.micatim D>w!opment Pwlic Social WellimD>p Health Deot. Liti~tion Deot. [)Pnt nent ~ Works Dept I D>pt Heritage I Dept. D>pt. D>pt rl & Tourism D>pt General I Market Account& Rev. D>pt AdministratDn Ivhmgement Budgeting Planning Community Section ~ Road 1- D>w!opment y Liti~tion Section Section & Melia& Section H SolidWaste Urban FMSection ~Prtinn !Vbnitoring l Permit 1B~ Sectbn Ivj;ni.Sectnn SeetOn Health H Sectbn Personnel & Comruction HRT) ~Prtirm Store ~ Jnfurrnatnn ~ Mintemrce Regulation ~Prlin·n Tax& SectDn Urban Section Feed& Jvlisil Ml chanica! lliucation& u H ~Prtinf'l Section Fees Collection Planning & Housing H Section H Sports S ectn n y Dr~ SectDn Ward GIS Section SectDn :~i~~; Coordination Section >Ill Section Le~l y I ~ Electrical Section y Urban Disaster Co=eling y Central Environment Ivj;nt. Section Section Pnn1 Traroportatil Secthn n!vl;mt. Vital Sectbn ··~~· Ward Registration &Civil ~·.• Section Works Section ·~f~~ Tnt"1 Demrt.mP.flt.< & Sert.tnm· :~, Pronosed Structure: Previous Structure -1.', '?~ No. ofDep3.rtment=12 No. ofDep3.rtment ~ 11 No. of Section = 33 No. ofSection = 43 Note: *Transportation Mgnt Section Under Urban Development comprises I AE & 3 JEs • Road Section under PWD consists of 1 AE, and JEs and 1 P. 0. BIBLIOGRAPHY: 1. DOR/JICA. The Study of Kathmandu Valley Road Development; (March 1993) 2. HMG/DHUD/ADB. Kathmandu Valley Urban Development Plans and Programmes; September 1991 3. DOR. Development of Kathmandu Valley Transportation System; 4. Traffic Management Plan for the Improvement of Road Around Tuidikhel DORI RACHANA Consulting Engineers March 1997. 5. Nepal Road Board, Administrative By Laws and Procedures and Proposed NRB Act; September 1999. 6. Pre-feasibility Study for Extending Trolley Bus Services Within Kathmandu Valley- CEMAT Consultants; June 1999. 7. Hand Book for Highway Engineers - Harger and Bonney 8. Highway Engineering Hand Book - Woods, Berry and Goetz. 9. Research on Road Safety - Road Research Laboratory; 1963. 10. DOR/AID-WB Priority Investment Plan; February 1997- Wilbur Smith Associates and SMEC Int. (Ltd.) 11. Documentation in Urban Transportation- VIII, IRF World Meeting; 1977. 12. Various Acts and Laws Related to DOTM; 1992, 1997. 13. Towards Safer Roads in Developing Countries - Transport and Road Research Laboratory; 1991. 14. Diagnosis and Design User's Manual- J.B. Raintree; 1987. 15. A Collective Approach for Local Resource Mobilization- Ministry of Local Development and UDLE; February 2000. 16. A Study of Mass Transit System in Kathmandu Valley - Integrated Forum (P.) Ltd. 17. National Transport Policy- Nepal Engineering Consultancy Services Centre Ltd. in association with Centre for Economic Development and Administration; July 1998. 18. An Overview- Rural Transport Sub- sector in Nepal- IT Nepal; June 1998. 19. The Ninth Five-Year Plan (1997-2002) ofHMG/N. 20. Local Self Governance Act, 1999. HOUSING A D SQUATTER SETTLEME TS jun Hada HOUSING SPECIAUST UST Of ABBREVIATIONS ADB Asian Development Bank CBO Community Based Organization CDR City Diagnostic Report DHUD Department of Housing and Urban Development DPW Department of Public Works FAR Floor Area Ratio INGO International Non-government Organization IUCN The World Conservation Union KVTDC Kathmandu Valley Town Development Committee KVTDIC Kathmandu Valley Town Development Implementation Committee KVMP Kathmandu Valley Mapping Programme LSG Local Self-Governance MLD Ministry of Local Development MIIP Municipal Infrastructure Improvement Project MPPW Ministry of Physical Planning and Works NGO Non-Government Organization SWOT Strengths, Weaknesses, Opportunities and Threats TUG! The Urban Governance Initiative UDD Urban Development Department UDLE Urban Development Through Local Efforts UNCHS United Nations Center for Human Settlements 14.6 TABlE Of CONTENTS List of Abbreviations 146 Table of Contents 147 List of Tables & Figures 148 5. HOUSING AND SQUATTER SETTLEMENTS 149 5.1 Introduction 149 5.1.1 Background 149 5.1.2 Housing and Human Settlements: A Historic Perspective in Kathmandu 149 5 .1.3 Spatial and Demographic Growth of Kathmandu City 150 5.1.4 Urban Poverty and Emerging Housing Problems 150 5.2 CDS and Its Objectives 151 5 .2.1 CDS and its Objectives in Relation to Housing 151 5.2.2 Stakeholders Analysis, Participation and Their Concerns 151 5.3 The Context 152 5.3 .1 Housing Markets: Initiatives in Housing Delivery Systems in Kathmandu 152 5.3.2 Housing Stock and Deficit in Kathmandu 155 5.3.3 Dwelling Types and Tenure Structures 156 5.3 .4 Housing Affordability 156 5.3.5 Housing Finance 157 5.3.6 Plans and Policy Framework in Housing Development 158 5.3.7 Institutional and Legislative Framework in Housing 161 5.3.8 Housing Construction Technology 162 5.3.9 Housing Conditions (Physical and Environmental) 162 5.4 SWOT Analysis of Existing Housing Situation 163 5.4.1 Assessing Strengths and Weaknesses in Housing Development in KMC 163 5.4.2 Assessing Opportunities and Threats in Housing Development 163 5.4.3 Summary oflssues in Housing, Slums and Squatter Settlements 164 5.4.4 Goal ard Vision for KMC 164 5.5 Strategic Framework for Housing Development 165 5.5.1 Slum and Squatters Action Plan 165 Annex 1: Stakeholder Identification and Analysis for Housing, Slums and Squatter Settlements 168 Annex 2: Issues and Concerns Raised During First Stakeholders Meeting 170 Annex 3: Photographs of Squatter Settlements 172 Annex 4: Squatter Settlements on Public Land in KMC 176 Map 1: Land Development Sites in Kathmandu Valley 177 Map2: Location of Squatter Settlements in KMC 178 Bibliography 179 UST OF TABlES & FIGURE Table 1: Income Distribution of Households in KMC Table 2: Income Distribution of Households in KMC Table 3: Growth of Squatter Settlements in Kathmandu Table 4: Building Permits for Residential Purpose in KMC Table 5: Housing Affordability Analysis, 1990 Table 6: Housing Affordability Analysis, 2000 Table 7: Institutions Involved in Land and Housing Development at Various Levels Table 8: Slum and Squatter Action Plan Table 9: Housing Development and Management of Slums/Squatter Settlements in KMC - Issues & Implications UST OF FIGURE Chart 1: Growth of Population in Kathmandu • Housing and Squatter Settlements Housing, for a large number ofpeople in the world is the most valuable asset and a signifu:ant commodity ofexpenditure, representing some 15 to 20 percent ofhousehold expenditures. The acquisition ofadequate housing is a basic necessity for all in order to achieve good health, welfare and good quality of life. An inadequate dwelling, absences of water and sewerage facilities contribute to poor health. For some, it is also a place for income generating activities and a location for venturing into a worid of entrepreneurship. Moreover, it is spatial{v fued, making its location relative to jobs, transport networks and public services. Therefore, achieving adequate shelter has multi-dimensional benefits including social, economic as well as environmental benefits. 5.1 INTRODUCTION Jamal) and Lanjagvala (current Lagan) were on the crossroads of the network of trading highways that 5.1.1 Background passed through the area. The Bhimsenthan-Kamalaxi route is still extant along the same alignment in silent arge proportion of urban population in testimony to this day. Alongside of Kathmandu core, to developing countries today are still facing its east, another settlement called Andipringga, now enormous problems fmding adequate housing called Handigaon, was annexed and extended by the with secured tenure, adequate infrastructures and Lichchavis to make their capital city. Deopatan on the serviices at a suitable location. This is not an exception Western bank of Bagmati River was developed as an for growing metropolitan city of Kathmandu with its early Lichchavi religious town. The Lichchavi period current rate of urbanization. also saw the additional settlement ofDaxinakoli-Grama on the South west of Kathmandu historic city core along the riverside at the banks of Bishnumati River. 5.1.2 Housing and Human Gunakamdeva, who is said to have restructured the city Settlements in Kathmandu: A into one settlement, called Kantipura, after placing Historic Perspective doctrinal Goddesses (Shakti-cult) around the general conglomerate of settlements. The City had about 18,000 The history of Kathmandu town is as old as houses during the period of 11th century. The landmark urbanization of the valley itself, which seems to have temple, Kasthamandapa was already in place and it is started about two thousand years ago, during the proto- after this temple that the city has been named. (Tiwari, historic Kirata rule (Tiwari, S.R., CDR, 2000). The S.R., CDR, 2000) earliest settlements within the present area of Kathmandu are supposed to have been established in The stages of growth and development of settlements the area of Pashupatinath to the northeast of and houses in the city can further be defined as Mall as, Kathmandu. Settlements were later established on the the Shahs and the Rana period. Ever since Malia period, tars between Bagmati and Vishnumati Rivers, northeast diverse castes and ethnic groups primarily Newars were of their confluence. The settlements seem to have concentrated in various areas of the city, either in exp:mded because of their importance as trade centers specific sectors or in radial clusters centered from the or due to the efforts of individual rulers during those city core. Lower castes and untouchables (Chyame, periods of time. Kasain, Pode) were on the edge of the communities, particularly towards the two rivers. The communities The small Kirata Settlements of Kathmandu core area of these scheduled castes still exist along Vishnumati such as Yambi (current Indrachowk), Jama (current River corridor. After the Gorkha conquest of the Valley, the Shahs took of 5076.6 hectares, it is expected to have a,population over the city and brought about more physical changes with of 729,690 1 with a growth rate of 5.6~ percent in year construction oflarge houses and new palaces influenced by 2001. The city has experienced a remarkable growth in Muslim and Rajasthani architecture. The construction of its population over the past few decades. The city's numerous palaces within large compounds were key factors population makes it a largest urban center representing in the expansion ofthe greater city area leading to subsequent 20 percent of nation's overall urban population. It is a growth ofhousing for employees around these compounds. tremendous pressure on the capital city to house 20 Groups of various ethnic castes other than Newars continued percent of the nation's urban population given its limited to migrate in the city. Construction of houses extended urban land and infrastructures. towards North, Northeast and East of Kathmandu with road networks linking palaces and city core. Thus accessed, land previously agricultural, opened up sites for new 5.1.4 Urban Poverty and Emerging developments, both for commercial and residential purpose. Housing Problems Poverty is a result ofa long historical process of marginalizing 5.1.3 Spatial and Demographic groups, of social inequality based on a position in the Growtll of Kathmandu City production system. Institutional factors like family background, sex, ethnicity and geographical variations affect Kathmandu Municipality was declared as a metropolitan inequality. The concept of poverty is associated with many city according to the Municipality Act of 1995 and is social indicators along with income distribution and divided into 35 wards of which the old city core consumption patterns. Urban poverty could be defined as encompasses 12 wards. Much of the municipality falls population living in poverty where people are deprived of within the area bounded by Bagmati River and the Ring basic facilities such as water, sanitation, education, and health Road with some expansions along arterial roads at etc. in urban areas. An attempt is made to study the magnitude Balaju, Bansbari, Boudha and Kalanki. Covering an area of urban poverty in Kathmandu. Chart 1: Growth of Population in Kathmandu - - - - ·------~- ---~-- --~--- Growth of Population in Kathmandu 800000 r:: 0 600000 :;:::; ----- --------- -------------------------------- m "5 400000 0.. 150402 a.. 200000 0 +----------------~--- -- - - - - - - - 0 ~-- 1971 1981 2001 Year I '----c--:------::c:-::c--:-=:=-:--::-:-:c::------------ ----~---------~~-----------------_j Source: .libgnr, 1991 and KVTDC, 2000. 1 An estimated population in Draft Kathmandu Vi.1llt~~· Dc\·clopment Plan 2000; Kt1thmnndu Valley Town Development Committee, July 2000. Table 1: Income Distribution of Households of Kathmandu Income Monthly Mean Consumption %of Estimated Quintile Average HH income (Rs/capita per Kathmandu income range Income annum) population 1,114 2,571 0 < 3300 2 1,686 3,893 0.2 3300-4500 3 2,228 5,142 3.3 4500-6200 4 3,097 7,147 6.7 6200-8500 5 6,605 15,243 89.8 > 8500 Source: WaterAid, Lumanri and NEWAI·I, 2000. According to the latest study on water supply and sanitation the City Development Strategy for KMC is to assist in situation of urban poor, about 10.2 % of metropolitan improving KMC's livability, competitiveness, bankability, governance and management capacities by Table 2: Income Distribution of Households jointly working with various national and local level of Kathmandu City stakeholders, bilateral and multi-lateral development partners, in order to utilize the city's limited resources incomeHH Income per %of Quintile Group month in NRs. HH efficiently through a participatory process. It is intended 1 < 3999 7 to provide an overall framework within which KMC will 2 4000-5999 17 synchronize and rationalize various future programmes 3 6000- 7999 17 in a strategic and coherent manner. 4 8000-9999 15 5 10000 - 11999 17 The incorporation of strategic framework for the 6 >12000 27 development of housing markets including housing Source: City Data Book, 2000 finances in KMC is one of the major focuses within the overall framework of CDS. The city at present lacks population is considered poor provided that poverty specific polices and programmes for the underprivileged threshold is Rs. 9,000 per capita per annum. In addition, if and marginal sector of the society and especially for the a household income of Rs. 4000 per month is taken as growing slums and squatter settlements in various poverty threshold, then only 7% of total population is poor locations of the city. One of the objectives of CDS is to as per Table 2. Therefore, it could be concluded from both develop specific action plans addressing slums and the figures that urban poor population constitutes not more squatter settlements in Kathmandu based on participatory than 10% of Kathmandu Metropolitan city's population. interactions among multiple stakeholders, identification This means there are approximately 72,969 people living of the existing issues, constraints and opportunities. in poverty in Kathmandu and it could be assumed that housing conditions of these people are also poor. Therefore, strategic approach to city housing, slum and squatter improvement calls for an integration of two main The conditions of many dwelling units constructed over clusters of tasks: I) establishing a priority agenda of what a period of time in Kathmandu city have been dilapidated housing development issues are and how they will be and they are in the process of deterioration without tackled in the present urban setting of Kathmandu, and adequate maintenance. On the other hand increasing II) identifying and selecting key initiatives and do-able commercialization of prime urban land has reduced actions. affordable residential spaces and increased congestion without adequate floor space for living resulting into formation of slums within the city. At the same time, 5.2.2 Stakeholders Analysis, continued in-migration of low-income people from Participation and Their Concerns peripheral and rural areas in Kathmandu in search ofjobs, reduction of cheaper rental accommodations within the Since stakeholders' participation and ownership are the reach of their job stations, increasing land values and costs key elements of the CDS process, it is important that of building materials, lack of effective land use plan and key stakeholders in housing and urban poor sector are regulation have contributed to the growth in illegal identified prior to their participation. The list of encroachment of public unattended land and buildings stakeholders identified and stakeholders' analysis is and the development of unplanned squatter settlements2 • attached in the Annex 1. The stakeholqers' participation plan included the Stakeholders' Worj(shop, Interviews and Focus Groups Discussions. The experts in housing 5.2 CDS AND ITS OBJECTIVES were consulted, their views and concerns were incorporated in the study. The key stakeholders 5.2.1 CDS and Its Objectives in participated in the First Stakeholders' Workshop and Relation to Housing brought about the issues related to housing, slums and squatter settlements and prioritized them. Similarly focus The City Development Strategy is being prepared to groups discussions was held with representatives of assist KMC in creating a vision to guide Kathmandu urban poor (squatter groups) and Lumanti (NGO ci~y's future actions. The main objective of preparing working with! squatters) to spell out the issues, constraints Squatter settlements arc inhabited sites, often close to arcns of employment in city centers, to which households have no legal titles. and other potentials for improving the living and housing due to delays in land acquisition of privately owned conditions of the poor. The issues identified and concerns parcels coupled with costs of increasing land prices and of stakeholders, during the Stakeholders' Workshop are various other reasons. A review by UDLE (Land attached in the Annex 2. Development Projects in Nepal, 1998) pointed out numerous issues related to land development exercises undertaken by the government. The issues identified are: 5.3 THE CONTEXT o Lack of institutional seriousness, management 5.3.1 Housing Markets: Initiatives in capabilities and constraints of adequate human Housing Delivery Systems in resources Kathmandu o Lack of technical know-how and well worked out plans for project execution Markets for the most part, govern housing production. o Lack of reviewing and monitoring process to People need shelter and are thus willing to invest their evaluate the ongoing projects labor and savings in housing. Private individual owner o Fragmented land ownership and dual ownership builders and brokers largely dominate housing markets creating problems in land assembly in Kathmandu. These markets are neither efficient nor o Absentee land owners and outdated cadastral records equitable, as they do not completely satisfy all housing and maps needs. However, it is seen that housing suppliers in both o Financial constraints owing to low compensation formal and informal sectors are producing a variety of for land owners and lack of effective housing types at all levels of affordability, from rented community participation in the process of land slums and squatters to apartments, often taking acquisition advantage of lax enforcement of regulations in the o Lack of effective co-ordination with other line process. This section studies how formal government agencies for timely provision of infrastructures. and private sectors as well as informal private sectors have contributed to city's growing housing needs. Therefore, all these are the major constraints in effective and timely implementation of land developments projects executed by public sector. 5.3.1.1 Government Initiatives Institutional Housing System is one of the housing 5.3.1.2 Formal Private Sector Initiatives delivery systems by government sector. Housing for government employees, students' hostels, police quarters, Individual private owner builders have, largely army barracks were prior investments by government in contributed for housing supply in Kathmandu. It is the housing and it is still valid today that major investments owner builder who acquires a plot of land, organizes in housing by government sector only caters to the and manages the construction of house and is expanded government employees. During the past two decades, a incrementally over a period of time as both family and number of initiatives were undertaken by government income grows. Therefore, Private Owner Occupied sector to address the housing needs with in Kathmandu. Housing System is predominant in Kathmandu. Rental Housing Sub-system, on the other hand serves about 30- As an executing agency of government, Kathmandu 35% of total municipal population (Regulating Growth, Valley Town Development Committee initiated Sites- IUCN, 1995 and Thapa, K., 1994). Approximately 40 and Services, Guided Land Development and Land %of urban households living in rental accommodations Pooling projects in Kathmandu. Land development sites are relatively poor and facilitated with lower service undertaken by the government is shown in Map 1. These levels compared to owner occupied housing (Rabenau, initiatives included Kuleswor and Dallu Housing B. von. 1990). projects within the municipality and the projects were meant to benefit middle and lower income employees Private owner builders, for additional source of income, of government. For the first time, a six unit appartment produce majority of rental housing units in Kathmandu. housing is also being made by the government in Sainbu Based on the study of 24 cases conducted by Lumanti as a pilot project. Most of the housing projects in 1997, it was found that 40 % of the total income of implemented so far have not been successfully replicated owners was derived from the rent. About 95 % of 152: ,,~ families with an average size of 4.8, rented ·single rooms Housing sector has never been realized as a potential with an average size of 120 square feet. This indicates a economic sector until recently with few of the initiatives serious overcrowding occupancy. The families pay undertaken by private Real Estate Companies. They have approximately 30 % of their total income on rents, and developed land for housing during early 90s which hence they need to find cheaper rental units or share a included land subdivisions with basic services such as smaller space. There is an increasing demand for cheaper road network, water supply main, electricity poles, two room rental units according to the study. drainage and sewer lines (e.g. Tokyo Bazaar in Gongabu Individualistic approach in the supply of rental units by promoted by Kumar Lama Real State Company). Some owner builders thought has a potential, it may not fulfill private sector agencies also built apartments and the increasing demand of rental housing unless formal condominium units to be sold over a period of time at private sector plays a vital role in bulk supply of rental Baluawatar, Chabel and Sanepa areas of Kathmandu units within the city. valley. However, the high selling cost of units, lack of clear policies and acts for promoting attractive schemes lhere is also a need for cheaper rental accommodation to pull buyers and failure to understand homeowners' especially for working women and female students in the preferences made companies keep their units vacant or city. Chronicles often report overcrowding boarding rooms unsold for sometime until recently when the real estate in universities. "Mero Bas", a short-term boarding type value slumped. rental accommodation for destitute women operated with some subsidy by Lumanti has become a solution for poor Currently, the ongoing Kathmandu Residency Project transient women having small tasks in the capital city. of Ansa! Chaudhary Developers is making a move towards establishir1g sustainable real estate industry. The There exists a substantial rental market in slums 3 of units to be transferred for buyers over a period of three Kathmandu. Most slums comprise of permanent years after having paid the cost of unit in an installment structures/houses, originally of good old quality built basis is actually an attractive scheme to buyers as well by private individuals, which became dilapidated and as it is a mean to generate resources for builders to over-crowded over a period of time. The houses are not construct units for a period of construction. The record maintained regularly, although they have their own legal shows complete selling of all units, and proves that titks and deeds. The conditions of these houses vary peoples' preferences have also changed over a period of depending upon whether they are owner occupied or time. Though catering to the middle and upper middle- rental accommodations. Ifthey are owner occupied, they income sections of urban population, this project will have some basic services and infrastructures in place contribute to the supply ofreadymade housing to only a and are reasonably repaired whereas houses with rental small section of Kathmandu's population, who are accommodations normally lack basic infrastructures and actually not in need of housing but rather have invested services with poor sanitary conditions and are poorly as an opportunity for future. The result of the project is maintained or repaired. yet to be seen. Most of the slums are located in the inner city area with poor access. In fact, the houses in these slums are the 5.3.1.3 Informal Private Sector Initiative on1~s ignored during urban renewal process due to in Housing Supply reasons of poor accessibility, disputes over land titles, owners' inability to offord for renewal etc. Some old In Kathmandu city and the peripheral areas, the gap in houses in newar settlements like Sawal Bahal, Lagan, housing supply is partially filled by informal private Tebahal, Hyumat, Chikanmugal, Guchcha Tole, sector through brokers. Land brokers and buyers are two Indrachowk, Yatkha, Makhan Tole, Mahabouddha, key players mainly responsible for opening up new land Ganabahal, Yangal, Handigaon, could be categorized for housing (role merely limited to subdividing land) as slums as reflected by their physical and environmental and sometimes bringing about services to the area such conditions. It is estimated that there are about 50 slums as water supply, road, surface drainage and electricity. in Kathmandu metropolitan city with a population of 40.,000 (Masako Tanaka, 1997). Most of them houses In the report of Halcrow Fox, 1991, it is stated that the primarily migrated labours, petty trade workers or street informal sector opened up more than 1270 hectares of vendors. land for residential purpose in Kathmandu and Lalitpur J. Slums as defined in The Water Supply and Sanitation Situation of the Crban Poor in the Kathmandu \"alley, July, 2000. Slum is a term used to describe old dwellings, which through o\'ercrowding, neglect, and breakdown of supporting sen.ices have deteriorated to insanit:.try and unsafe conditions. It generally denotes the physical conditions of housing regardless of the t)'pe of dwelling tenure. Table 3: Growth in Squatter Settlements in Kathmandu Year No of Settlements No. of Households Population Remarks 1985 17 2,134 1988 24 348 3,665 1990 19 859 4,295 1992 33 1,271 6,355 1996 47 1,783 8,927 1998 49 2,021 10,323 2000 61 2,031 11,862 Includes settlements of adjacent VDCs Sources: Joshi and Bjoness; 1987, Concenwd Citizens Group, Kathmandu Squatter Site Survey; 1990, Flatheim and Skjorestad; 1993, Kishorc Thapa· 1994, Tanaka· 1997 and Lumanti; 2000. ' ' ' Municipalities between years 1971 to 1981. However, and ensure their continued existence. Like in other cities broker's inability to legally assemble parcels of land and of developing countries, Kathmandu has recently been to have control over ownership is the major constraint in experiencing the problems of growth in slums and the informal housing supply process. Due to inadequate squatter settlements. A study conducted in 1997 showed fmancial backing in the absence of formal housing finance that 9000 people were staying in 47 squatter settlements mechanisms, and without knowledge of proper planning, in public lands. Location of some squatter settlements they are forced to supply land parcels in an inefficient is shown in Map 2. In addition there were 3000 people marmer. More often, land plots are supplied to buyers any squatting in old, dilapidated public buildings such as time at buyers' preference with poorly serviced roads and temples, sattal (resting places) built by religious trusts access. This informal land development process is actually (Tanaka, 1997). The number of squatters has almost tripled manifested by inadequate and weak planning guidelines, in ten years and it represents only 2.9 percent of the total regulations, highly complicated and lengthy land population of the city. The annual growth rate of squatters registration procedures and weaknesses of formal land in the city is 12-13 % which seems to be alarming. and housing delivery mechanisms. Out of 11,862 the majority of people living in informal Squatter Housing Sub-system is also one of the squatter settlements on public lands reside along implications of inadequate planning guidelines. It is the riversides. Another study by Kishore Thapa in 1994 process of unauthorized occupancy of land and indicated that about 40 percent of squatters resided in buildings. Many a time, a strong political backing is public buildings (sattals, patis and temples) and 60 always providing support to start up squatter settlements percent lived in public land, which translates to about 7,908 people who are currently living in old patis and sattals around the city. Therefore, the estimated number of squatters in the city is approximately 19,770 inclusive of those living in public buildings and land. The number is close to the figure of 65 communities quoted by Lumanti/Water Aid/ Newah study". The housing conditions of majority of squatter settlements are very poor. More than 80 percent ofhouses in the squatter settlements are owned by dwellers and only 12 percent are 4. A resea_rcl~ on the \V~ter Supply and Sanitation Situtltion of the Urban Poor in the Kathmandu nilley conducted jointly by Lunwnti, WaterAid and Ncwah in Julv 2000. The ~ 1:¥54' report mdJCates there me 3000 squ.attcr families with 18,000 population, most of them live in Kathmandu municipality. · rented out. The built-up areas of houses range from than 75 % of squatter households rely on poor 120 square feet to as large as 1200 square feet. The community toilets, poorly built pit latrines or open building structures are normally temporary made of defecation. bamboos and mud walls, plastic and thatch roofs in newly emerged settlements. As settlements grow older, the structures are more consolidated with 5.3.2 Housing Stock and Deficit in permanent constructions of walls and roofs (bricks Kathmandu and concrete, metal sheets). This has been possible because of the Laissez Faire policy of the government. There were about 53,311 houses or housing units in Kathmandu city during the year 1991 which In terms of services, all households have access to accommodated 80,246 households (IUCN, 1995). 5 It was some form of water supply whether they are sources also stated in the report that 30% of the total houses were from Water Supply Corporation, community stand being rented and 70% of them were more than 30 years posts, bore or tube wells or community storage tanks. old. When closely analyzed, it can be observed that a deficit of about 10,942 housing units existed even then. Based on the record ofbuilding permits issued for residential purposes every year, it can be estimated that there will be 80,398 houses or housing units in Kathmandu city in the year 2001, with 27,087 new units being added during 1991-200 I, assuming that about 80% of the buildings are constructed after the issuance of building permits. Average building permits issued per year is 2500. It is assumed that during the years 1992-93 total number of building permits issued were Typical Settlement along Riverside 2500 per year. Town Development Committee used However, the quality of water for drinking purpose to issue building permits before the year 1992. The permit may be questionable. The level of water supply services was closed for a year in 1994. available to the households is related to the age of settlements. The levels of services in older settlements In the year 2001, the need for housing units for a population are comparatively higher. Less than 25 percent of size of729,690 would be 137,677. Assuming 30 percent households have safe sanitation provisions except for of the houses are being rented, 24,119 additional units few settlements where voluntary groups or NGOs have would be rented with total of owner occupied and rented launched interventions and awareness programmes. housing units ofl 04,517. This will result a deficit of33,160 The awareness programmes have not been successful housing units by the year 2001. This shortage compared to in some settlement due to threats of insecurity. More other mega-cities of Asia is very small in absolute numbers Table 4: Building Permits for Residential Uses in Kathmandu City ~ear 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 Total Building Permits Issued 2500* 2500* 5107 4203 3230 2715 2060 2272 2500* 27,087 Source: Urban Development Department, KMC, number \\ith " is assumed. 5. Regulating Growth: Kathmandu Valley Urban Growth; ICCN, 1995. but lack of appropriate housing programmes in the future Rent-free: Households occupying housing formally would intensify the problem. owned by someone else and who do not pay rent, accounts for 3.4% in Kathmandu (Cities Data Book, 2000). 5.3.3 Dwelling Types and Tenure Squatters: Households occupying unauthorized land and Structures buildings, which account for 2.9% in Kathmandu and among them 12% are paying rents. Housing types in Kathmandu is more or less dealt in the above section. Under the various housing delivery Others: Boarding houses, hostels, and others account systems, there are different types of dwelling units for 2.1 % (Cities Data Book, 2000). including single-family type, multiple family dwelling units, apartments and temporary dwelling units, hostels and other accommodations. About 31.8 % of total 5.3.4 Housing Affordability dwelling units account for single family, 50.2% accounts for medium density multiple family units whereas 18 % Housing affordability is guided by various factors. They are apartments in Kathmandu (Cities Data Book, 2000). are household incomes, households' ability to pay for housing, supply of serviced land plots, availability of At present, there is an absence of actual quantitative building materials, housing construction technology etc. data regarding tenure structure of Kathmandu The house price to income ratio is 10.6 6 for the city of households. Ongoing KVMP would be a source of Kathmandu. This means house price is ten times the information in future as it is currently involved in house annual income of household in average. This also numbering and addressing system. The prevalent tenure indicates the ineffectiveness of housing markets operated structures in Kathmandu in formal and informal private in the city. The housing affordability by households 7 of sector housing delivery systems include; various income groups is further discussed below. Owned: Households with a clear title deed or ownership of the house and land they occupy, which roughly 5.3.4.1 Cost ofLand Develop1'11£nt and Housing accounts for 56.6 %. Issues in Housing Development by Rabenau in 1990 Rental: Households paying rent to landlord who is the analyzed that the cost of serviced plot with shelter in a legal owner of the dwelling unit. This accounts for conventional sites and services scheme is NRs. 613,336, approximately 35% in Kathmandu. as shown in Table 5, which requires a down payment of NRs. 122,667 plus monthly payments of NRs, 7,499 under the terms of loan. To be able to afford loan and the down payment, a household must have an income ofNRs. 30,000 per month. It is also stated in the report that Kathmandu's household income at 90'h percentile was estimated at Rs. 7,499 per month in 1990. Therefore, the income required to afford housing is 4 times higher than 90th percentile. Analysis of some land and housing development projects in and around Kathmandu Municipality over the past years 6. As quoted in City Data Bool{, 2000, which is a single indicntor tlwt gives vnrious information nbout housing markets. It is a rHtio of median free market price of a dwelling unit nnd the median ;mnual household incom(;!. 7. AYerage household size for city is 5.2 as per City o~tta Book, 2000. 8 . The cost exclndes land tnx and land rq;istration fee. whil'h is generally 3-5% of the bnd cost. Table 5: Housing Affordability Analysis, 1990 for Conventional Sites, Services and Shelter Project Particulars Standards Cost in Nrs. Unit Remarks land 127 442,936.00 @ Rs. 1,000,000 per Ropani (509 m 2 ) Infrastructures Minimum basic u5,400.00 Rs. 527 per net m2 Roads and drainage of land. Water Electrici Solid Waste Sewer Shelter 35 105,000.00 @ Rs. 3,000 per m 2 Total 613,336.00 Source: Issues in Housing Development, 1990. Table 6: Housing Affordability, 2000 Particulars Standards Cost in Nrs. Unit Remarks Land 80 625,000.00 m2 @ Rs. 4,000,000 per Ro ani (509 m2 ) Infrastructures Minimum basic 96,000.00 Rs. 1,200 per net @) Roads and drainage m2 of land. (ll Water e Electrici 1!11 Solid Waste ® Sewer Shelter 35 210,000.00 m2 @ Rs. 6,000 per m2 Total 931,000.00 also points out some facts about costs ofland and shelter. cannot afford a decent quality housing in Kathmandu unless significant roles would be played by private and Galfutar Housing Project (Sites and Services) initiated public sectors including individual households, housing and executed by government provided serviced (road, finance institutions and builders in housing sector. electricity and drainage, water partially) land supply at subsidized rate cost8 Rs. 250,000 per plot of size 127m2 during early 90s. Cost of semi-serviced (road, drainage, 5.3.5 Housing finance electricity, communication) land plot of size 127m 2 in Kuleswor Housing Project was Rs. 4000,000, which is Self-financing mechanism is the predominant form of similar to the cost of a serviced plot in Gongabu Land housing finance·in Kathmandu. They are mostly based Pooling during mid 90s. These land development on sources of family savings in the forms of cash or t::xperiences showed that cost of serviced land is 2.5 times convertible assets. Therefore this is intrinsically tied to the cost of raw land. the process of owner-builder housing supply in Kathmandu. Other than that, one of the most common In present context, a 35-m2 house in 80-m2 plot costs forms of formal housing finance mechanism is the loan Rs. 931,000.00 within Kathmandu metropolis. Land cost for bank employees at concessionary rates. This is alone constitutes 78% of the total cost. In such a case, a prevalent in both government as well as private banks. household will have to pay monthly installment of Rs. Before the year 1991, Employees' Provident Fund was 9000.00 provided the loan at interest rate of 16% to be also one of the major sources of housing finance for paid over a period often years. This means a household regular government employees. The amount ofloan that should have at least a monthly income ofRs. 36, 000 so is borrowed in both the cases is however very small and that 25% of income i.e. Rs. 9000.00 would be paid for that contributes only a fraction of housing costs. housing. This indicates that majority except for a small Women's cooperative society also provides· small loans segment of the top 27 % of households (See Table 2) to it's members for house construction 5.3.5.1 Formal Housing Finance Institutions 5.3.5.2 Informal Savings and Credit Initiatives Nepal Housing Development Finance Company, a semi- During the group discussion with representatives private financial institution is a potential institution for of squatter settlements in 14th August 2000, it providing housing credits for owner-builders and housing was known that the community groups had producers. Mobilization of various resources for housing already mobilized about Rs. 1,800,000.00 from as a fmancial intermediary, self-implementation ofhousing their monthly voluntary savings in 45 projects or shares in such programs and making loans communities of low-income squatter settlements. available to individuals or organization for the purpose Small amounts of loans were given to the group of housing are its major objectives. members on a rot"ational basis for house improvements and other emergency needs. This Establishing and expanding land and housing indicates a considerable strength in community development companies, carrying out consultancy savings in housing finance. services in housing sectors, targeting lower-income beneficiaries and providing soft loans of small amounts for middle term with an NGO as collaborators in 5.3.6 Plans and Policy Framework in beneficiary selection are their long-term visions, which Housing Development till date have not been tried out. On the other hand, the company has started providing loans for other purposes Government of Nepal had no formal plans and than land and housing development. The loans so far programmes related to housing until its 6th Five made available by the company were limited to NRs. Year Plan, which gave action to some land 500,000 with an interest rate of 20 percent in a short development programmes to provide housing payback period of five years for the purpose of house provisions for civil servants although Kathmandu construction, maintenance and expansion. The mortgage Valley Physical development Plan was adopted in to credit ratio is 50 percent. 1976 in accordance with Town Plan Implementation Act 1973 with the formation of Kathmandu Valley Similarly, Nepal Housing and Merchant Finance Company Town Development Committee. The physical Limited founded in 1995, the only private company development plan also identified three residential dealing in the housing sector, has a vision of providing areas for planned residential development. The 7th wider range of loan amounts in long-term repayment Five Year Plan ( 1986-91) stressed the action periods for all income groups. Though the maximum programmes about basic needs related to shelter, individual loan is limited to 3 million within a payback food and education. The "National Housing Survey" period of 15 years, the higher percentages of loans were was conducted in I 99 I, which indicated the need being issued at amounts of 3 to 5 hundred thousand with of 25,00,000 new buildings to be constructed and a payback period of five years. The rates of interests differ about 732,000 old dwelling units to be upgraded with the amount of loans and the collateral needed is 33 in Nepal by the year 2006. percent of the total borrowed amount. Generally land is used as collateral for acquiring loans for construction of The 8'h Five Year Plan (1992-96) stressed the need houses. For smooth repayment, it has a policty that the for development and supply of serviced residential borrower's income should be three times that of the plots, provision of dwelling units, development of monthly installment of repayments. In spite of having a building research, increase in housing wider vision of long-term loans, they are not yet in development investments, training and technology operation. The loans are only accessible to middle and transfers for promotion of local and low-cost higher middle-income sections of people in the city. construction materials and technology. Although, the 8th plan had recognized upgrading of existing The current scenario of housing fmances whether public dwelling units were more cost effective than or private sector indicates that housing finance is still building new dwelling units, no legal and policy out of reach of the majority of people from the lower- initiatives were undertaken in this direction. It was income brackets. Specifically, the urban poor from slums at the end of 8th Plan that Ministry of Housing and squatter settlements without secured tenure and and Physical Planning came up with a concrete secured jobs are simply excluded from access to any of National Shelter Policy in collaboration with these formal housing finance systems. HABITAT/UNCHS in I 996. 5.3.6.1 National Shelter Policy, 1996 research and evaluation on sectors related to the development of dwelling units. The National Shelter Policy stresses the importance of 1:1 Introducing appropriate and effective laws and housing sector for its role in economic development, regulations with amendments in the existing ones. poverty alleviation and promotion of living standard of [J Preparing database to make decision-making and monitoring peopk The basic concepts upon which the policies have process on shelter development simple and effective. been formulated are: The implementation strategies for fulfillment of 1:1 Creation of favorable atmosphere as mentioned in shelter policy are: the constitution of Nepal ih 1990 in order to fulfill [J The existing shelter construction and production the need of dwelling units in the form of basic need process in the private sector, which relies primarily of the entire people. on the individual owner builder system, will be 0 Need to recognize the important role of dwelling improved and strengthened as needed. units in poverty alleviation and economic [J In view ofthe limited means and resources available development in addition to the role of improving in the shelter sector, the government must play a living standard of the people. facilitating role to make people capable of CJ Shelter to be taken as an integral part ofnation's economic successfully implementing shelter policy. productivity as an accumulated asset and capital. 1:1 Based on the principle of financial self-reliance, the 5.3.6.2 9111 Five Year Plan government should act as an enabler as well as a facilitator for the fulfillment of shelter targets and The 9th five year plan has realized that government alone the private sector should play important roles in cannot fulfill the housing needs of people. Mutual fc)rmal and informal sectors. participation of government and private sector is a must for development of housing sector. As per objectives of the 9th Plan, it has stressed to associate housing Under the above concept, the policies are: development with the overall economic development of the· nation and to strengthen housing system through Increasing the production of dwelling units and institutional development of integrated housing system. repair and maintenance of existing stock. It also focuses on the development of dense residential 0 Increasing the availability of dwelling units of proper areas in geographically appropriate locations. and suitable value and increasing supply of serviced land plots. To identify roles of women in housing (building and D Increasing the necessary basic infrastructure services maintenance), promotion of cost effective and safe houses and facilities and expanding the same. through flow of housing loans, formulation of building D Improvement in the use of building materials and policies and regulations as well as its implementation by construction technology. concerned institutions through Housing Act are other major strategies of 9th Plan. Management of unplanned Promote effective mobilization and allocation of settlements of urban areas, development of integrated financial resources. action plans for provision of infrastructures as well as CJ Mobilizing credit delivery mechanisms for land and extending land pooling programs in appropriate locations housing to be floated at the formal and community of Kathmandu Valley to supply housing plots are also of J,eve!s on an experimental basis. major concern of the 9th Plan. [J Developing the process of cost recovery of public investments in land, physical infrastructures and other services. 5.3.6.3Nepal: National Plan ofAction 1:1 Increasing fmancial self-sufficiency ofthe shelter sector. (Habitat II) Organizational Improvements The shelter sector in the National Plan of Action, 1996 1:1 Clarification of the role of public and private sectors under the guiding principles ofNational Shelter Policies, for implementing National Shelter Policy seeks to adopt an enabling approach and encouragement 1:1 Making necessary institutional arrangements for of the private sector to take a leading role at both formal planning, policy-making, implementation, training, and informal levels. The enabling approach consists of .()RT .. · fiscal incentives, reallocation of resources in government As for technology transfers, theN ational Plan of Action sector, enhancing role of women in housing, review of stresses government institutions to take lead roles in existing legislation and co-ordination between various establishing building materials technology research and range of actors. promotion centers at various levels, both for development of research and for information The objectives of the National Plan of Action for dissemination. The government should also provide tax shelter are: incentives for the use of local materials and technology 0 To increase the supply of affordable serviced for building construction. It is also stated that the housing plots and dwelling units government should take appropriate initiatives for shelter D To create an improved legal and regulatol)' framework sector planning and coordination as well as human D To promote mobilization and effective allocation of resource development. Launching ofhome improvement financial resources schemes including upgradation of slum and squatter 0 To improve the use of the building materials and settlements is also considered as one of the activities for construction technology national and local governments. However, these schemes D To maintain and improve the existing housing stock have not been implemented till date. and 0 To improve the institutional framework for shelter sector 5.3. 6.4 Plans and Policies Related to City In order to fulfill these objectives, various activities and Squatters respective actors have been identified in the plan of action. The Housing Ministl)' has to perform enabling roles by There are no clear-cut policies related to city squatters in sponsoring and promoting public private partnership for Kathmandu. Although the National Plan of Action stated land and housing development programmes for low- to upgrade and manage unplanned settlements, the detail income households. It also has to introduce new laws and plans have never been worked out. The Concept Plan for regulations concerning building codes, apartments and Bishnumati Corridor by Halcrow Fox and Associates, housing cooperatives. So far, the government has only 1991 had proposed relocation of existing squatters along passed the Apartment Act, which came into practice Bishnumati River bed affected by the proposed recently. The building codes have to be developed. The development of the Bishnumati Link road. The proposed building by-laws have to be revised and special regulations relocation scheme included low-income housing project should be developed for Metropolitan cities. It is also in another site nearby which should be supported by stated that the government should promote shelter finance closely related programs such as long term housing loans, mechanisms, however, the plan fails to make specific appropriate saving schemes, lending parameters specially provisions for providing fiscal incentives to private sector targeting the poor or low income households to invest in fmance companies to promote shelter fmance mechanisms income generating activities as well. to reach low-income households. Another policy proposed was upgrading physical conditions including access roads, water supply and sanitation and solid wastes of existing settlements regardless of their absence of security over the land tenure. The demolition of some houses and eviction of squatters of a settlement at Kohiti had also taken place during the implementation of Municipal Infrastructure Improvement Project in 1997. The squatter settlements in some wards were given temporal)' security with house numbers by concerned ward committees and with the Table 7: Institutions involved in land and housing development at various levels : lEVElS INSTITUTIONS ROLES AND RESPONSIBiliTIES At Central e Ministry of Physical Plan- e Policy guidelines, action plans Government Level ning and Works, DHUD 01 Transfer of land titles, registration, cadas- @ Depts. of Land Survey and tral maps, land holding records Land Registration e Line Agencies ® Provision of services At Local Level " KMC(UDD) 0 Implement Land development programmes, building permits, regula- tions, framing bye laws, ® KVTDC/KVTDIC ® Implement Land development programmes, building regulations, by- 111 Private Investors laws 011 Land/Housing Development Programmes ® Financial Institutions e Short term loans with mortgage e Lobbying for housing rights/ improvement of physical environment of slums and ® NGO/INGOs squatters e Raising awareness among local people wards' recommendations they had been able to acquire other line agencies. Though, the Urban Development physical infrastructure services like electricity and water. Department at present is executing Land Pooling exercise Moreover, squatter policies in cities are merely ad hoc with fmancial and technical assistance from ADB, the than concrete. department is not yet capable in terms of its own resources both technically and financially to plan and execute other similar programmes. Lack of adequate information base 5.3.7 Institutional and legislative is also a major constraint. Framework in Housing On part of legislation, the devolution of powers and The current institutional framework for land and housing functions to municipalities as local self-governments is still development in Kathmandu is rather fragmented and unclear, as there exists many inconsistencies in the Local un<;oordinated. There are several government Self-Governance Act itself, which recently came into institutions, private institutions and line agencies practice. However, framing and specifYing ofland use map working without proper coordination in the housing of municipality area and its implementation, preparation sector thereby bringing in duplication and overlapping ofhousing plan and its implementation, carrying out plans of roles and responsibilities. For instance, Kathmandu for provision of infrastructure services and their Vallley Town Development Implementation Committee implementation, carrying out tasks for building permits is executing Land development exercises in the city as within municipality area, framing of building bye-laws, well as KMC is also executing Land Pooling project maintenance of records of municipal population, houses within the municipality. and land, and protection ofbarren and public land are some explicit duties and functions of the municipality under LSG The Urban Development Department of KMC is a sole Act, of which some are overlapped with Kathmandu Valley authority to plan, execute and implement land and housing Town Development Committee and some with Kathmandu development projects in Kathmandu city. Similarly, Public Valley Town Development Implementation Committee. Works Department ofKMC could be directly involved in infrastructure"provisions under the broader guidelines of On the other hand, the present regulation for land and other central government line agencies. Till date, provision housing development is inadequate. There are no special of infrastructures for housing is carried out by government regulations on land development rights, land sub- divisions and land uses. The housing standards are either 5.3.9 Housing Conditions (Physical too high for majority sections of households to afford in and Environmental) which case the owner builders are forced for non~ compliance with local codes and standards. Moreover, The physical and environmental condition of housing lack of accountability and weak enforcements, poor in Kathmandu is briefly overviewed in section 5.3.1.3 mechanisms for monitoring and control on part of the The physical condition of housing could be characterized responsible institutions are major causes for haphazard in terms of typology of the housing construction development of unplanned settlements in Kathmandu. technology. The traditional construction technology (mud-brick wall with tile roofing) has been replaced by The Apartment Act 1997 has, nonetheless, given authority cement !llortar brick walls with concrete roofing with to municipalities and private sectors for investment in mass many additional rooms to be allocated for rental units. housing. The current land ceilings, building regulations It could be said that majority of the owner occupied, and by-laws discourage them benefiting from the act due owner built or purchased houses in Kathmandu are to various restrictive and inappropriate requirements that permanent or semi-permanent with brick cement mortar are uncongenial to investors such as limitations on land walls and concrete roofings. More than sixty percent of holdings, floor area ratios etc. the houses in Kathmandu belong to this category. These houses are connected with, water supply lines from NWSC and electricity lines from NEA. Majority of these 5.3.8 Housing Construction Technology houses have connection to sewerage mains. About 43 % of Kathmandu households are connected to NWSC Housing construction is a low technology labor-intensive sewerage system (Cities Data Book, 2000) and others activity, which requires fairly less imports of raw materials. are served with septic tanks and soak pits. Use of domestically produced materials is one of the major advantages for the building material industries.ln the same The conditions of low -income rental housing is way, absorption oflocal skilled, semi skilled and unskilled comparatively poor with poorer levels of services. Based laborers also contribute greatly to the labor market of the on the study of24 cases conducted by Lumanti in 1997, it city. However, the housing construction technology in the is known that 95% of families with average size4.8, rented capital city has not changed much except for few of the single rooms with an average size of 120 square feet, which higher income group of households. indicates overcrowding occupancy. Only 87 % had piped drinking water supply and 36.2 persons share a toilet. It is Additionally, there is inadequate research on affordable indicated in the study that conflicts with owners on irregular construction technology such as low-cost housing for poor rent increment and forceful evacuation are very common. households. There are no incentives for promotion oflocal Lack of cleanliness and lack of responsibility for low-cost building materials for housing construction such maintenance are also major problems of rental housing. as incentives on building permit fees etc. Aside from this, substantial rental housing units in dilapidated old houses in Kathmandu also suffer from the same physical and environmental conditions of inadequate floor spaces, inadequate services, inadequate light and ventilation. The physical conditions of squatter houses are also very poor. The built-up areas ofhouses range from 120 square feet tb as large as 1200 square feet. The building structures are normally temporary made ofbamboos and mud walls, plastic and thatch roofs in newly emerged settlements, which are very prone to natural and man- mad'e hazards. As settlements grow older, the structures are more consolidated with permanent constructions of walls and roofs (brkks and concrete, metal sheets). Although all households in squatter settlements have acce:ss to some form of water supply whether they are sources from Water Supply Corporation, community stand pos1ts, bore or tube wells or community storage tanks, majority of households served with tube and bore wells are prone to water borne diseases because of leachates and However, lack of co-ordination within institutions and con1tamination of ground water. Less than 25 percent of inability to internalize the projects and programmes are households have safer sanitation provisions in these serious drawbacks and weaknesses due to which the settlements. Open defecation, shared toilets, pit latrines programmes are difficult to sustain. Lack of adequate with unhygienic disposal ofhuman wastes are common. city specific information base regarding housing, lack The: sanitary conditions are even worse because of of technical and financial capabilities and lack of kitchen garden activities such as unsafe keeping of appropriate laws and regulation are attributed to livestocks, (pigs, ducks and hens) for income generating institutional weaknesses ofKMC to undertake housing activities by squatters. development and slum improvement programmes. While the new housing policy and acts made provisions for 5.4 SWOT ANALYSIS OF EXISTING encouraging private sectors, there are multiple private and HCJUSING SITUATION public institutions already working on areas of housing development in Kathmandu, although they operate limited Based on the above context, a SWOT analysis is programmes that do not cater to all economic sections of conducted to identity what the strengths and weaknesses the city population. The private sector should be the city has in terms of housing. To formulate broader strengthened through improved incentives on taxes, vision for housing development in the city, it is also building materials, improved regulations and standards. imperative to recognize the potentials and opportunities There is also strength in infonnal mechanisms of savings that are existing in the city by taking advantage of which and lending for house improvements in low-income city's future housing situation could be envisaged. settlements that need litdeimervemioosand~lmilding, 5.4e1 Assessing Strengths and Weak- 5.4.2 Assessing Opportunities and nesses in Housing Development in KMC Threats in Housing Development Having a separate institu1tionai setup, Urban There is a huge potential for housing development to be Development Department within KMC, could be a seen as prioritized economic sector fotr there is growfug strength of KMC in terms of planning, implementing demand for affordable housing in the city due to continued and monitoring various urban development works in-migration of peopEe J!irom various parts of the comtry. including land and housing development. building There is a potential of utilizing migrated labour forces into co1mtrols and regulations. KMC being able to implement dte oonstrudiion technology J!irom which the city em benefit various donor-assiisted projects; induding WIP, TUGI, As there is a continuous tbreat of encroachment on KVMP indicates increasing confidence andi commfunent ~II, l.lmttended pubEic llmds by sq~ mthe of muniicipaliity over urban improvement initiatives. ~ofproperpoticiesamil weakuenf~ drere CITY .DIAGNOSTIC ,REPORT ~.,' ~, ,<>t~.'~ .; is also potential for exploring public private ventures to bl Norms and standards are not appropriate for prevent further developments of squatter settlementS. Open, equitable benefit of urban poor unused and vacant marginal lands under the jurisdiction of bl Weak enforcement of rules of law and regulations KMC could be protected and developed as low-income residential areas in partnership with private institutions. 5.43.3 Housing Construction Technology Cl Lack of research, development and promotion of Despite the absence of city specific policies and local low cost building and construction technology programmes for slums and squatters, the communities are Cl Lack of policies and fiscal incentives for promotion highly organized and are gradually improving their of low cost housing technology conditions at their own costs, which shows their potential for mobilization into participatory home improvement 5A.3.4 Ho'using Finance programmes. Increasing pro-poor and supportive o Housing finance is inaccessible to majority of urban interventions ofNGOs, CBOs and donor agencies also open households especially the poor avenues for the improvement of slums and squatter o Housing is not seen as a priority sector of investment settlements in the city. There are also equal opportunities by financial institutions for existing fmance companies and co-operatives to invest 1:1 Inadequate housing finance cooperatives and lack in housing development programmes in conducive of programmes to reach urban poor environment, for which KMC could play a facilitating role. 1:1 Lack of fiscal incentives for financial institutions to reach the urban poor sections 5.4.3 Summary of Issues In Housing, 5.4.3.5 Slums and Squatter Settlements Slums and Squatter Settlements o Existence of urban squatters due to unavailability of adequate and affordable housing and land plots The diagnosis of current housing situation and its SWOT as per economic status of citizens analysis reflects various issues pointed out below, which Cl Squatting or unauthorized occupancy of land and need to be seriously addressed. They also incorporate buildings prioritized issues identified by stakeholders. They are: Cl Absence of clear-cut policies on management of urban squatters 5.4.3.1 Serviced Land Plots 1:1 Poor quality of housing units (slums) without 1:1 Cadastral records not updated according to land use adequate infrastructure services change which makes land acquisition difficult for 1:1 Lack of tenure security hindered the development planned development of plots. processes in terms of social, physical, economic as well 1:1 Haphazard subdivision of land plots without as human development of squatter settlement areas adequate services. 0 Lack of programs for upgrading slums and urban 1:1 Housing plots becoming increasingly unaffordable poor settlements and not catering to the demands of majority of urban poor population. 5.4.4 Goal and Vision for KMC o Limited public sector land development programs which are not responding to the increasing demands A well managed capital city with housing for all is of urban poor households a common vision for KMC agreed by stakeholders during the First Stakeholders' Meeting. Tackling the 5.4.3.2 Institutions Legislation and Regulation issues identified and prioritized, a strategic 1:1 Lack of institutional framework with clear-cut approach to realize this common vision for KMC responsibility and accountability (urban development on one hand consists of a series of department, planning department within KMC) recommendations for new housing markets to work 1:1 Duplication of roles with KVTDC (land in the city for the provision of affordable housing development, monitoring activities) units, for improved housing finances that caters to 1:1 Lack of institutional support for public private all economic sections of population, and develop partnership in land and housing sector on the other hand, a series of do-able actions or Cl Lack of adequate laws and regulations (no laws for breakthrough initiatives to upgrade existing slums housing cooperatives, building codes, building and squatter settlements and preventing further standards etc.) growth of new shanties and slums. ' ' HOUSING AND SQUATTER SETTLEMENTS 5.5 STRATEGIC fRAMEWORK fOR 5.5.1 Slum and Squatters Action Plan HOUSING DEVELOPMENT A slum and squatter action plan is developed after a series To enable housing sector to function well in the city, of discussions and consultations with stakeholders. KMC could adopt various operational instruments that Identification of various activities and actors to be stimulate housing demand, facilitate the process of involved are listed below in Table 8. housing supply and help create overall institutional framework for managing housing sector, ensuring adequate access to housing for the urban poor. The issues and implications in housing are illustrated in Table 9. Refer CDS for details on recommended housing strategies. Table 8: Slum/Squatter Action Plan S. No. ACTIVITIES ACTORS INVOlVED 1.. Inventory of existing slums and squatter settlements, gather population, I<:JviC, NGOs, CBOs household and other socio-economic information. 2. Classification of slums as per conditions and determination of the I<:JviC, Professionals, extent of upg:radation reauired Researchers, NGOs 3 l\linimum regulation for rental housing as rental slums are predominant KlviC, house owners, tenants. 3.1 Provision of minimum basic services 0 Access 0 Water supply 0 Electricity D Toilets D Safe disposal of wastes 3.2 Structural conditions to ensure minimum safety factor for users/ten- ants 3.3 Maintenance of building structure as well as other facilities regularly by users 4 Preparation of slum upgrading plans based on point 2 and implemen- I<:J"\IC, NGOs, Slum tation. communities 5 Classification of squatter settlements in terms of their location, ex- Kl\fC, Professionals/ tent of development and safety of site planners 6 Identification of settlements or houses which need to be relocated to KlvlC, line agencies other sites due to development pressures environmental hazards etc. 7 Settlements to be upgraded should be studied in detail of both physi- cal and social characteristics. KMC, NGOs, Researchers I. Prepare settlement improvement plans and programs which include Kc'\1C, NGOs, CBOs 0 Regularization of plots if needed 0 Infrastructure layouts and extensions 0 House improvements/ construction of new structures ). Mobilization of communities/hoouseholds for participatory actions Kl"\IC, NGOs, social workers .0. Mobilization of fmancial and technical resources I<:J"\1C, Donor Agencies, NGOs, Professionals . .1. Provision of tenure security on the basis of long term leasehold or I<:J"\1C, NGOs, Legal collective ownership experts, communities 12. Low cost alternatives affordable to users (squatters) should be devel- I<:J"\fC, Professionals/ oped and implemented such as standard communal facilities (shared planners, CBOs toilets, community taps and wash areas) B. Prepare alternative plans such as land sharing9 in commercially viable I<:J"\IC, professionals and sites for example Ramhiti, Shankhamul and project feasibility to be private consultants 9 Lllltd sharing is an option for squatters carried out in Thailand wh~rc squatted lund is shared between land O\\lter and squatters. Part of land commercial!,·,iable is sold ·;, ·' · ,· and developed into commercial use while squatters are re.housed in hnter portion of land \\ith densification ~Is smaller plots of 20 sq mts in size ar~ sold to each 165.; households. Cross subsidy is gh'en through selling of commercial plots and long lerm pnyraent period for plots of land. \. ·· Table 9: Housing Development and Management of Slums/Squatters in KMC- Issues and Implications ISSUES IMPliCATIONS ACTORS Serviced Land Plots 1. Cadastral records not updated as 1:1 Difficulty in land acquisition process for KMC (UDD) to take leading actio per land use change and land use planned development of plots in co-ordination with KVMP plan not being indicative. 1:1 Difficulty in regulating building control and Department of Survey, Department o town development control. Land Reform, KVTDC 0 Investment potential not identify and inappropriate land valuation '~ ~ 2. Haphazard development of land 0 Expensive service provisions, inefficient MPPW/DUDBC, KMC (CPC,UDD) ,, t@ without adequate or no and incompatible land uses Professionals, consultants, Lin e ~ infrastructure services and lack of 1:1 Overburdening pressure on limited agencies machinisms to govern/regulate infrastructure and unhealthy/unsanitary living land subdivision. condition 3. Housing plots becoming 1:1 Urban middle and low-income households KMC taking lead to regulate Private increasingly unaffordable, limited are forced to live in low rental and shared bu i Iders/ deve topers, DUDBC public sector land development accommodation without adequate services KVTDC, MLD, Private developers progran1s not catering to majority 1:1 Increase in informal land development, financers, Line agencies of urban middle and low-income encroachment of public land and buildings households for unauthorized use. 4. Shortage of dwelling units Overcrowding and pressure in existing units KMC taking lead to regulate Private builders/developers, MPPW/DUDBC Line agencies, Financers, house owne rs Institution and legislation 1. Inadequate institutional capacities, 1:1 Functions ofUDD are limited to issuance of KMC in assistance with trainin g lack of clear-cut responsibilities building permits institutions, DUDBC, donor agencie s and accountability 1:1 Difficulty in planning and implementing urban development works due to lack of financial and technical resources 1:1 Some building constructions are not conforming to existing codes and standards due to lack of accountability 2. Lack of adequate laws and 1:1 Haphazard development KMC to play facilitating role, regulations (housing co- 1:1 Poor tax base Department of Law, DUDBC, operatives), inappropriate codes 1:1 Unaffordable to maintain standards for low- Department ofland revenue and land and standards income families and therefore non- survey, Private institutions, compliance with regulations Professionals and specialists, 1:1 Bureaucratic delays and hassles for private Cooperatives finances, Communities developers to undertake land and housing development activities Housing Construction Technology KMC, DUDBC, RONAST, RECAST, 1. Lack of research development for Practice of costly construction technology IOE, Research Institutions, NGOs and the promotion of low-cost whether or not it is required resulting to Professionals, Private builders, Use o f technology for innovative ineffective use of resources researches from Indian Institutions infrastructures, innovative through scholars building construction and innovative housing processes. SSUES IMPLICATIONS ACTORS lousing Finance Limited formal housing finance 0 Urban poor families cannot borrow from KMC, Central Government (War d institutions operating in the city and formal institutions, informal credits are more committees), NGOs, Finane e policies are unfavorable to majority expensive and capital sum if borrowed are institutions, Donors, Communities of lower income families, majority insufficient for house construction for them. Households of loans available are for other purposes than housing development. s,I urns and Squatter Settlements Lack of infrastructure services and Health hazards to inhabitants, threats of fire, KMC, Department of Law, DHUD substandard rooms in rented slums quakes and other hazards. Tenants, Owners in inner city areas 2 Growing squatters and continued 0 Threats of further encroachment to unused KMC, MPPW, Ward committees unauthorized occupancy of public public land and buildings Squatter Communities, Private sector land and buildings due to absence 0 Obstructions for development other Donors, Federation of Squatters of clear cut policies regarding programmes on those sites Department of Land Reform urban squatters 0 Threats of eviction to squatters '· Lack of tenure security due to 0 Threats of eviction hindered physical and KMC, Land Survey department illegal occupation social development process in squatter Squatter (CBOs), Communities settlements resulting into substandard houses, NGOs, Donors, Line agencies poor quality of infrastructure services DUDBC [J Lack of development programmes for upgradation of houses and services .... 0'\ 00 ANNEX 1: . Stakeholder identification and Analysis for Housing, Slums and Squatter Settlements 0 )>( Q S.No. STAKEHOlDERS WHAT IS THIEIR INTEREST IN CDS ? VVHAT 00 THEY EXPECT FROM A OJS? WHAT MIGHT THEY BRING TO CDS? :a.· 1. Mayor,KMC Ownership, involvement. Common Vision, Strategic guidelines Commitment for implementation. ~~~~~ and job descriptions for KMC. '0 2. KMC Department Head Ownership and involvement. Strategic guidelines for KMC. Access to information, commitment for ::::0 (Urban Development implementation. m; Department) (5::' 3. Ward Chairs (KMC) Ownership and involvement. Strategic guidelines for KMC. Concerns, issues, local level information, ;om -L identification of activities, programmes. 4. Bimal Rizal, Planner Ownership and involvement. Strategic guidelines for KMC Access to information. (KMC, UDD) 5. Kishore Thapa, Planner Involvement to address city-housing issues. Strategic guidelines for KMC, city Access to information, suggestions on (KVMP) specific data and information CDS outcomes, professional inputs. 6. P. S. Joshi (Co-ordinator, Ownership and involvement. Common Vision, Strategic guidelines Access to information, commitment for CDS) and iob descriotions for KMC. implementation. 7. Prafulla Pradhan, Inclusion for housing for urban poor (slums/ Strategic guidelines for KMC, for other Professional inputs, suggestions on pos- Planner squatters) in CDS actors. sible squatter strategies. 8. Laxman G. Rajbhandari Involvement to address planning and hous- Strategic guidelines for KMC. Access to information (Planner, UDLE) ing issues in CDS. 9. Iswor L. Joshi, Planner Involvement to address planning and hous- Strategic guidelines for KMC. Suggestions on CDS outcomes. (UDLE) ing issues in CDS. 10. Ms. Sumitra Gurung Involvement to address slums, squatter Strategic guidelines for KMC, solutions Access to information about housing de- (Chairperson, Lumanti) housing, women's accommodation, rental- for urban poor housing issues, rental livery systems, women housing altema- housing issues. housing issues. tives. -~ ~---·-· -- -- - STAKEHOlDERS I INTERESTS I EXPECTATIONS -- --·- - - - I ~----- POTIENliALS I 11. Ms. Lajana Manandhar Involvement to address slums, squatter Strategies for urban poor and squatter Access to information about slum and housing issues, co-operation and partner- settlements for their improvement. squatter housing in KMC, interaction ship with KMC. with squatters, site visits, initiating group discussions. 12. Representatives of squatter Bring squatter housing issues, issues of se- Strategies for management of squatter Participation, information and co-opera- settlements ( 15) curity of tenure. settlements within KMC and action tion. plans for their improvement. 13. Real Estate/Private Builder Involvement to address planning and hous- Strategies for more private sector in- Information about private land develop- (Kumar Lama/ Kathmandu ing issues in CDS. volvement in land developments. ment projects. residency) Sarju Shrestha 14. (Managing director, NH &MF) Involvement to address Housing finance Strategic directions for KMC and pri- Access to information about NH&MF issues, problems of accessing loans for mass vate finance institutions for operating operating strategies. housing, lending housing loans for poor. housing loans for poor, strategies for tax incentives. 15. Mr. Puma Kadaria Involvement to address planning and hous- Strategic guideline for KMC Information ing issues in CDS. _j :r: - - - ---- ---- - -- - -- -- 0 c (j) list of Representatives of Squatters in Focus Group Discussion Conducted on 14th August 2000 z G) )> I. Indra Bahadur Gurung 6. Balkrishna Pandey z 0 2. Lakpa Lama 7. Ganesh Rana (j) 0 3. Bimala Tamang 8. Shubha Bahadur Thapa c 4. Deepak Rai 9. Dala bahadur Lama ~ -1 5. Hukum Bahadur Lama I 0. Lal Bahadur karki\ m ;o (j) m -1 -1 r m s: m ,Z -1 (!): ANNEX 2: Issues and Concerns Raised During first Stakeholders Meeting Causes 4. Availability of housing for various income groups '9n~f~ytic~l~qtmsi~~d · · stanoards; happa.Zard · 99nsttgqtions!~ 6. Unplanned development ofhouses Lack of physical development plan, poor enforcement of rules Lprovision 6f serviees;~nd housing rights '·,:-<"''·' ,' ' :- 11. Solve squatters problem through stakeholders Need to integrate [ consensus squatters to support informal economy of city r·.:n 12. Management of squa:ttet~yroblems ._·. Unmanag~d squatters .. resulting to unhealthy Jiving conditions [ 13. How to improve conditions of KMC squatters [ 15. Poor housing conditions l Lack of loan provisionto construct economfcaLhousing'facilities 171". ' REPORT. ANNEX 3: Photographs of Squatter Settlements Squatter Houses at Ramhiti Squatter Houses at Ra.mhiti ····HOUSING Al'JosouAtiiR:sE;rrLENlEMTS· ~,,, .,,,$._,.,_~·: River Banking for Flood Protection in Squatter Settlement River Banking for Flood Protection in Squatter Settlement Informal Transactions of Land Taking Place Squatting in Temple Squares HQUSING.AND.SQUATTERSETTf£MENT.$>vc ,, .) •• :.'"~· '< '1(,:::; Community School at Ramhity Access with Drain at Center Inside a Squatter Settlement ANNEX 4: Squatter Settlements in Public land within Kathmandu Metropolitan City, july 2000 S.N. Name of the Settlement Ward no. Yr. Settled Population No. of Households 1 Subigaon 6 1988 244 46 2 Ramhity 6 1971 1130 126 3 Mahankal 6 1978 70 14 4 Dhungan, Faika 1 1979 80 19 5 Pathibhara 4 1995 2000 187 6 Maiju Bahal 7 1981 135 27 7 Kumarigal 6 1993 65 13 8 Radhakrishna Chowk (Baunedhara) 3 1983 106 18 9 Mitra park 7 1992 35 7 10 Bulbulae, Chabahil 7 1996 45 9 11 Kalopul, Chabahil 7 1994 30 6 12 Kalimati tole 8 1968 35 7 13 Til ganga 9 1981 95 19 14 Sinamangal, Pragatitol 9 1971 120 24 15 Chadani tole 9 1971 355 71 16 Gairi Gaon, Sinamangal 9 1996 105 21 17 Tilegada 9 1978 30 6 18 Shantibinayak Nagar 10 1988 180 36 19 Devin agar 10 1988 230 46 20 Palpakot jadibuti 35 1987 120 24 21 Nakati, Sinamangal 35 1992 65 13 22 Anamnagar 32 1994 80 16 23 Bishalnagar 4 1981 70 14 24 Chandole, Tunaldevi 4 1969 35 13 25 Khadipakha 3 1981 570 114 26 Dhumbarahi 4 1981 30 6 27 Ranidevi 29 1988 30 6 30 Dhikure, Tiligtar 3 1988 110 22 31 Ranibari, Samakhusi 3 1988 45 9 32 Samakhusi 29 1982 90 17 33 Sangam Tole, Samakhusi 29 1977 155 31 34 Kumaristhan 16 1993 390 74 35 Balaju 16 1976 625 125 36 Baipas 16 1986 180 38 37 Kuria Gaon 11 1981 65 13 38 Sorhakhutte 16 1982 30 6 39 Kalimati Dol 13 1982 330 56 40 Sanogaucharan 5 1981 30 6 41 Bhatbhateni 6 1994 55 11 42 Kalimatisthan 7 1975 95 19 43 Bansighat 11 1988 495 91 \ 44 Hyumat 12 1993 220 44 45 Buddhajayanti Marg 16 1993 150 30 46 Siddhartha Vanasthali 8 1994 45 9 47 Tankeswor 14 1993 185 37 48 Swayambhu 14 1993 65 13 49 Dhaukhel 14 1981 200 40 50 lazimpat Ranibari 29 1992 130 26 51 lamatar, Gyaneswor 131 26 52 ' Pingasthan 1995 24 8 53 Dhumakhel 15 1971 216 39 54 lnaya Tole 19 1977 302 62 55 Ramghat 19 1980 164 32 56 Shankhamul 10 1971 545 96 Total 11162 1888 Source: Lumanti, 2000 Map 1 KATHMANDU VALLEY /-.._,::._-:----............_ ""- ,~~- ~ __./"'-...........~......."""~- ........ ~__,...,....._r"":""'1 ·. f ·. ' ' . ··. --, I(~ JbCll"gGun KunagBun .~- ··\ / ' ~ •· ...,_ Ch,.unegau• ~ -"''-"~'\,_ LAND DEVElOPMENT SITES ,/'i """"'"':"'. . S.~l~ J Simi> .-~-, ' .. -- '. ' ___ ,/~ .... ----- p..,. -~ ""- ....J ··, ~rrm~ ·~. 1 .... / Jhu~& , LEGEND } ..... OGVI~ ( ~ Budhlllnrlalmntha ~~ MuUri'larklll_ S.."'are_... \ ~ cJ: . I (' . ' .. .·- ··-; Valley Boundary (. r~ : ~ Ob~sli Tcrld~Olgaun _( ._ Gagalphed1 cna.OO Bha~J~ng r \ - -· • ~. ' ' \ .,\ _ 1l P.:lutung . I Olumkhet ' Swfd:ari)al . -~ Dh•""'"''" I -~""""\......,. Watershed Boundary ~ ·-·· . .._.. J __ ['~ __...__.. r " ...- • 1 A _,~ •. , .' " T "- ' Srranchaur ) \ ....... _ Gokh't ' j . r _E'u" A - .1 Bhcrletar ' Road '\ .Jmmoc~- ·- · """'' P-·~~iil~~i/13mo _· -~ -[ .._ ,._!'h... / River and Streams --""'"~ Nairnk,etnan ~-·, ~ L, " ~>~·~:;:!.~ Mtllhllll'fl"fg~wu ~ ~ _ { Physical Development Sites ~ ~ i . . \ ; ~'-.. • J_ , o•"'\ / ·' 'f 1 H ,~1'1 1 ' r-' .----~""-·:..- } / ~. . . . . ,- - Mu/psm $_15neri z 0 Cl) ,, 0 c 2:'; --I m ;tJ (f) m -1 --I r KATHMANDU CITY m DEVELOPMENT STRATEGY s: m Km5 0 5 10Km z -li Source: Kethmandu Development Plan 2020 (f) t• Wt P! ii!WJJZiP •Mii '-c'....;. 'o:i '"' Squatter Settlements in KMC Map2 #.,.,, C":t, w =r ~ ~-·! '( ....Ut· 'o: -~-~ 4Ail &tiih )> G) z 0 (/) -1 0 ;;o m lJ 0 :::o· -i Legends KMC Boundary Road ~ River/streams 111 Squatter Settlements Kathmandu City Development Strategy Map Source: KVMP, KMC GIS section BIBliOGRAPHY 1. Bjoness and Joshi; Housing for Urban Poor, 1987. 2. Christian James; Housing Finance for Developing Countries, 1980. 3. DHUD, HMG-Nepal; National Plan of Action, 1996. 4. Dongol, Jun; Policy Measures for Upgrading Squatter Settlements in Kathmandu, Unpublished Thesis, 1998. 5. Flatheim and Skjorestad; Squatting of the Poor In Kathmandu - Survey and Strategies, 1992 and the Case Study of the Kohiti Squatter Settlement, 1993. 6. Halcrow Fox eta!.; Kathmandu Valley Urban Development Plans and Programme: Concept Plan for Bishnumati Corridor, 1991. 7. Joshi, Jibgar; Housing and Urban Development in Nepal, 1991. 8. Joshi, Pradhan and Heinrichs; Report on Workhop of Housing and Urban Development Task Force for the 8th Plan, 1989. 9. Kathmandu Squatter Site Survey, 1990. 10. KMC; Cities Data Book, 2000. 11. Lumanti, WaterAid and Newah; The Water Supply and Sanitation Situation of the Urban Poor in the Kathmandu Valley, 2000. 12. Ministry of Law and Justice, HMG-Nepal; Local Self-Governance Act, 1999. URC - Lumanti; Legal Provisions on Housing Rights, 1999. 13. Ministry of Law and Justice, HMG-Nepal; Apartment Act, 1997. 14. MHPP/HMG-Nepa1; National Shelter Policy, 1996. 15. Ministry of Public Works, Transport and Communication; The Physical Development Plan for the Kathmandu Valley, 1969. 16. Nepal: Urban Sector Strategy, Inception and Draft Report, 2000. 17. National Planning Commission/HMG-Nepal; The Ninth Plan, Human Settlements and Urban Development Section, 1996. 18. Nepal Housing Finance Company Limited; Annual Reports, 1995, 1996, 1997, 1998 and 1999. 19. Pradhan, P.M. S.; Squatting in Public Buildings, 19_. 20. Rabenau, B; Issues in Housing Development, UDLE, 1990. 21. Tanaka, Masako; Conditions of Low Income Settlements in Kathmandu: Action Research in Squatter Settlements, 1997. 22. Thapa, Kishore; Upgradation of Squatter Settlements in Kathmandu, Unpublished Thesis, 1994. 23. Thapa, Kishore; Existing Policies and Programmes on Land Development, 1995. 24. The World Bank; Housing: Enabling Markets to Work, A World Bank Policy Paper, 1993. 25. Urban Land Development in Nepal: A Review, 199_. MU ICIPAL SERVICES Sanjeev Bajracharya MUNICIPAl ENGINEER CITY DIAGNOSTIC REPORT liST OF ABBREVIATIONS ADB Asian Development Bank BOD Biological Oxygen Demand CEDA Center for Economic Development & Administration DOR Department Of Roads EU European Union FNCCI Federation Of Nepal Chamber Of Commerce and Industry. INGO International Non-Government Organization IUCN The World Conservation Union JICA Japan International Cooperation Agency KMC Kathmandu Municipal Corporation KVDC Kathmandu Valley Development Council KVMP Kathmandu Valley Mapping Program KVUDPP Kathmandu Valley Urban Development Plans & Programs MDC Municipality Development Council MoF Ministry of Finance MPP&W Ministry of Physical Planning and Works MI Ministry of Industry MLD Ministry of Local Development MWR Ministry of Water Resources NEA Nepal Electricity Authority NGO Non-Governmental Organization NPC National Planning Commission NWSC Nepal Water Supply Corporation SEECON Social, Environmental And Engineering Concern SWMRMC Solid Waste Management and Resource Mobilization Center UDLE Urban Development Through Local Efforts WB World Bank WHO World Health Organization 182 MUNICIPAL SERVICES TABlE OF CONTENTS List of abbreviations 182 Table of Contents 183 List of Tables 184 6. MUNICIPAl SERVICES 185 6.1 Existing situation 185 6.1.1 Municipal Institutional Capability 185 6.1.2 Existing City Profile 186 6.1.3 Staff Level In the Organization 186 6.1.4 Coordination With The Central Government 186 6.1.5 Urban Areas of The Kmc 186 6.1.6 Coordination With Agencies, INGO/NGO 187 6.1.7 Road Network 187 6.1.8 Network 187 6.1.9 Road Accessibility 187 6.1.1 0 Metropolitan Area Roads 187 6.1.11 Road Maintenance 189 6.1.12 Roads and Bridges 189 6.1.13 Traffic Conditions 190 6.1.14 Constraints with the Urban Area 190 6.1.15 Central Area Congestion 190 6.1.16 Kathmandu City Traffic 191 6.1.17 Institutional Constraints 191 6.1.18 Construction Capacity and Contractors Capabilities 191 6.2 Water Resources And Supply 192 6.2.1 Water Resources 192 6.2.2 Water Supplies 193 6.2.3 Drainage and Sewerage 195 6.2.4 Solid Waste Management 196 6.2.5 Eletricity: Streetlight 199 6.2.6 Greening 200 6.3 future Trends 202 6.3.1 Municipal Institutional Capability 202 6.3.2 Road Networks and Management 202 6.3.3 Water Resources and Supply 203 6.3.4 Drainage and Sewerage 203 6.3.5 Solid Waste Management 203 6.3.6 Electricity: Streetlight 204 6.3.7 City Greening 204 6.4 Gaps and Weakness 204 6.4.1 Institutional Capability 204 6.4.2 Road Network 204 6.4.3 Water Resource and Supply 205 6.4.4 Drainage and Sewerage 205 6.4.5 Solid Waste Management 205 183. ¢1TY J;)IABNosrrc REPORT 6.4.6 Electricity: Streetlight 205 6.4.7 City Greening 205 6.5 Problems and Issues 205 6.5.1 Institutional Capability 205 6.5.2 Road Network 206 6.5.3 Water Resources and Supply 206 6.5.4 Drainage and Sewerage 206 6.5.5 Solid Waste Management 206 6.5.6 Electricity: Streetlight 207 6.5.7 City Greening 207 6.6 SWOT Analysis 208 6.6.1 Municipal Institutional Capability 208 6.6.2 Road Networking 209 6.6.3 Water Resources & Supply 210 6.6.4 Drainage and Sewerage 211 6.6.5 Solid Waste Management 212 6.6.6 Electricity: Streetlight 213 6.6.7 City Greening 214 Biblography 218 UST OF TABlES Table 1: The KMC at a Glance Table 2: Operation of Service Sectors Table 3: Road Classification within KMC Table 4: Traffic Flow in the Major Roads of KMC Table 5: Average Monthly Discharge (m3/s) of Rivers in the Valley Table 6: Groundwater Extraction for Various Uses ('000/day) Table 7: Water Availablity Table 8: Population Served by Piped Connection. Table 9: Consumer Survery, W/S Table 10: Industrial Water Use Table II: Non Domestic Demand Table 12: Non NWSC Water Use Table 13: Wastage of Water Table 14: Efficiency of Sewerage Table 15: Electricity Sub-stations and Capacities Table 16: Municipal Services -Issue and Implications 184 Municipal Services The current trend ofdecentralization ofcentral authority to the local authority has already started empowering the local authorities. Building the capacity ofthe local authorities and promoting good governance principles such as participation, transparency, accountability, rule of law, equity and efficiency are pre-requisites for city development. 6.1 EXISTING SITUATION long-term vision for KMC has not yet been defined so it is difficult to suggest an organizational structure. The Cm·rent Status municipality needs to develop an effective and efficient operational procedure and adopt policies, which will ocal Development, Physical Planning and address the urban problem. The legal framework should Works, Population and Environment, Water spell out an appropriate fiscal mechanism. The Resources, Industry, Agriculture, Forestry, municipality must be consistent not only in its approach Education, Tourism, and Finance are the Ministries. to set goals on blue print, but also on delivering basic More than fifteen sectoral Department and three District services to the public. Evaluation of achievements should Development Committees are involved in governing, be undertaken frequently to see what has been achieved planning and managing Kathmandu Metropolitan City. and also to determine how to overcome the emerging problems. The Stakeholders' active involvement is the Besides the government authorities, civil societies, key to promote and sustain developmental programs in NGOs and some private companies are also involved in Kathmandu Metropolitan City. the process of developing Kathmandu Metropolitan City. They provide an opportunity to the citizens to be involved Kathmandu's sewer system for both storm water drainage in the process of city development. In the past few years, and sewerage has been combined; Research shows that the media, including print media and FM radio stations about 15 percent of the residents' sewerage are connected have been playing a vital role in raising public awareness. to the sewers. Many illegal sewerage connections into the storm water drains are common. So far, there is no municipal mechanism or department of Sewerage to tap Sectoral Status these illegal occurrences. Although KMC has wastewater treatment plants located at Sundarighat and Balkumari This section deals with the present situation of the these are not functional at the moment. As a result, waste services provided by KMC in the following fields. The from the drains and the sewers join the Bagmati River major relevant sectors are, the Municipal's institutional without any treatment. Recently, Kathmandu Metropolitan capability, road network and management, water City (KMC) has constructed two small wastewater resource and supply, drainage and sewerage, solid waste treatment plants based on environment friendly wetland management, electricity, street lighting and the city's technology. The Municipal sectoral services are described scenic beauty. It also explores the problems & issues below in chronological order. faced by KMC at the moment. Most of the Municipal services are inter-dependent and 6.1.1 Municipal Institutional Capability inter-linked. It is therefore not possible to have a good drainage system without good solid waste management. Department of Urban Development was created in 1993 The key to successful management is the coordination within KMC to undertake the urban development and integration of the physical infrastructure, along with activities. Following are the structures and activities the social, financial and organizational resources. A related to urban development in KMC. 0 Co-ordinate with Government, Non-Government with proper evaluation of staff. Job description for each Organizations and International Organization for the staff in the departments is not clear. Some departments implementation of urban development activities have been established but they lack functional capacity. within the Metropolitan City. The possibility of merging departments and sections o Assist and co-ordinate with line agencies involved is very high considering their work nature and in the urban development activities, such as Nepal responsibility. Electricity Authority, Water Supply and Sewerage, Roads, Public Health, Education, Tourism etc. o Implement urban development plans and programs ofKMC 6.1.4 Coordination With The Central o Issue completion certificate for the completed urban Government development Projects. o Issue building permits in accordance with the There are four levels of organisations currently building bylaws. involved in the planning and management of the o Implement the numbering of houses in the Kathmandu Metropolitan City, namely, Central Metropolitan City in a planned way Government Ministries, the Departments, Kathmandu o Operation of long & medium distant buses through Valley Town Development Committee, Chief District bus terminals. Officers offices (district office of central government o Operation of city buses in the Metropolitan City. and district development committees) and Kathmandu o Implement guided land development and land Metropolitan City. pooling schemes in the Metropolitan City. o Kathmandu Valley Development Council (KVDC) is an Management of parking comers in the Metropolitan City. autonomous council comprising of locally elected KMC is exploring the oppmiunity of cooperation in the representatives from three Municipal District Councils international arena. This has helped KMC to share and (MDC), supported by a technical officer who is exchange ideas and experiences on matters related to responsible for strategic planning and management of different aspects of urban management. the entire Valley. The municipalities and District Councils are each responsible for their presently defined 6.1 .2 Existing City Profile areas. Both are autonomous locally elected organizations Table 1: The Kathmandu Metropolitan City at a Glance: with their own technical staff who are responsible for planning and management, but under the guidance of Administrative Area (kms): 50.8 Total city population (1991) the KVDC. The necessary technical staff for KVDC and Density (person/hal (1991) 84 the Municipalities are transferred from the central Infant mortality (per 1,000 population) 66.78 government or recruited independently. Average Income US$ 222 Hospital Beds per 1 ,000 4.93 Dust/Suspended Particles (uglm3) 375 6.1.5 Urban Areas of The KMC Water/Sewerage coverage 60 Electricity service coverage 100 Telephone service coverage 80 Kathmandu Metropolitan City is connected to the rest of the country by the Tribhuwan Highway in the South - West via Naubise -Mugling and Naubise -Hetauda. Naubise is the entry point. The Arniko highway 6.1 .3 Staff level In the Organization connects North -East to China, through Dhulikhel and it is the only inland route for Nepal-China trade. Workload for the staff in all departments of the KMC Basically Dhulikhel also caters to the tourists of the is not consistent. Staff levels and positions in the Kathmandu Metropolitan City. The northwest part of department are unclear. Transfer of staff without the the Kathmandu, Bidur municipality (Trishuli) is also knowledge of his/her supervisor is a common an important settlement for tourism. It is through this phenomenon and staff placement is very haphazard. area that trekkers go to Ganesh Himal and other Job security for the staff is a perpetual issue. The mountain areas. department and sections have found it difficult to quantify the workload, as there is more staff than Kathmandu Metropolitan City is highly developed in the actually needed. There is no internal system ingrained infrastructure such as roads, communication, health, and 186 MUNICIPAL SERVICES education in comparison to other municipalities in Nepal. 6.1.9 Road Accessibility The only international airport ofNepal is in Kathmandu. It is the hub of commerce, tourism, trade and government Kathmandu Metropolitan roads comprise of a series administration. of radial roads converging to the core area. Most of the core areas are off limits to vehicular traffic during The drainage system often fails to function because the the day and most ofthe densely developed areas have public in Kathmandu, throw their refuse into the drains a one way traffic system. Traffic volume is very high and block them. The responsibility of the Department in the heart of Kathmandu Metropolitan area. A survey of Roads ends with the construction of drains for the conducted for KVUDPP showed that in a 16-hour main roads which creates a problem sometimes because period more than l 09,400 vehicles entered into central the adjoining houses, which are below the level of the Kathmandu. The central area of KMC has a dense drains, do not get connected to them. Very often, it is network of narrow roads whereas the peripheral not clear who is responsible for clearing and maintaining region has fewer but comparatively wider roads. the man-made or natural drainage channels. Local people expect the municipality to do this job, but the municipality, usually does not have the financial 6.1.1 0 Metropolitan Area Roads resources for this work. There is approximately 274 km of motorable roads within Kathmandu Metropolitan City as shown in Table 6.1.6 Coordination With Agencies, 3. These data have been abstracted from the current Road INGO I NCO Statistics, Department of Roads (DoR). It does not include minor local access roads within the urban areas Different functions and responsibilities of the KMC of Kathmandu. departments I section and the Government agencies involved in the operation ofthe service sectors are shown in Table 2. Road access within the historic core areas of both Kathmandu and Patan is severely restricted by the density ofthe haphazard development ofhouses and by 6.1. 7 Road Network the narrow width of the streets. There is approximately 705 km of vehicle roads within Access to the surrounding residential areas around the: Kathmandu District, as shown in liable 3. These data the Ring Road is through a series of secondary roads, have been abstracted from the current Road Statistics, which are built, generally, to inadequate standards 1998 of DoR. It does not include minor local access in terms of both alignment and width. Access to roads within the urban areas. Only the National individual plots within these areas is often winding Highways, Feeder Roads, Distript Roads and Urban and indirect and substantial sections of the urban Roads within the district of Kathriiandu are included. area have minimal vehicular access. A detailed inventory of the road network within the Ring Road has identified a network of 140 km of motorable 6.1.8 Network roads within this area- excluding roads that had a purely "access" function. DoR has classified roads The Tribhuwan Rajmarg is a strategic national route, linking into five surface categories and six width categories, Kathmandu Valley from the west at N agadhunga and defined as the number of Janes available to traffic in connecting it to most parts of the country including India. each direction. The surface categories adopted are The other major route out of the Valley is the Amiko as follows; Rajmarg, which joins the valley to the eastern part ofNepal, certain districts in the north and Kodari at the Tibet border. o Un-surfaced, poor condition, low speeds only o Surfaced, not maintained, speed reduced by poor Ring Road has been built around the urban areas of surface Kathmandu and Patan, connecting the radial routes and D Graveled, moderate speed, except in local poor spots providing the opportunity for the traffic to by-pass the D Asphalt surface, not maintained, moderate speed only congested inner urban areas. The Ring Road D Asphalt surface in good condition, high speed approximately follows the line of the Municipal Boundary. possible 187 cmv DIAGNOSJIC REPORT Table 2: Operation of Service Sectors S.N Function Responsible Depart- functions of Other ment/Section of K MC Government Agencies 1: Physical Development 1.1 Preparation and execution of Kathmandu Valley Town De- land use development plan. velopment Committee. 1.2 Preparation and execution of Kathmandu Town Planning housing plan implementation Committee 1.3 Planing, Design and construe- Dept of public Works con- NepalWater Supply Corpora- tion of operations of water structs some. tion (NWSC),HMG and drainage 1.4 Operations of water and Dept of Sanitation is taking drainage responsibility for operations of KMC's investment only other are handled by NWSC. 1.5 Maintenance of water and Dept of Public Works is taking Nepal Water Supply Corpora- drainage responsibilities for maintenance tion (NWSC).HMG of KMC's investments only. Others are handled by NWSC. 1.6 Development of green areas, Dept of KMC, Greenery Park Development Commit- parks and recreation areas section tee. 1.7 Construction and operation Dept of Public Works is re- Nepal Water Supply Corpora- of public toilets. sponsibilities for maintenance tion (NWSC), HMG. of I<:MC's investments only Therese is handled by NWSC. 1.8 Building control Dept of Urban Develop- Kathmandu Town Planning ment Implementation Committee. 1.9 Construction of community Dept of public Works, Build- Building Dept of the .Ministry of buildings ing Section. Housing and Physical Planning. 2: Water Resources and Sanitation 2.1 Preservation and mainte- PWD Water and Sanitation Board. nance of water bodies. HMG. 2.2 Sanitation Programmes PWD Nepal Water Supply Corporation. 2.3 Solid Waste Disposal. Solid West Department SWMRMC/MLD 2.4 Generation and distribution Nepal Electricity Authority. of electricity. 3: Works and Transport 3.1 Construction and maintenance Dept of Public Works is re- Dept of Roads is responsible of municipal status roads sponsible for earthen roads for black top roads. 3.2 Bus parks and parking areas Dept of public Works is re- Dept of Roads is responsible sponsible for earthen roads for black top roads. 3.3 Registration and control of Dept of Transport Man- push carts and Rickshaw agement. 4. Miscellaneous 4.1 Tree planting Parks and Green Section 4.2 Slaughter houses Dept of Public Works 4.3 Street lighting Ward Committees/Dept of Public Works 188 , '" I· '· .. MUNICIPAk $~RVI~ES I i, '< ·'<-,/' ·· 0 Category D: all other roads, not normally maintained Table 3: Rgad Classification within Kathmandl! Metropolitan City Km. by the Municipality. Classification Pitch Gravel Earth Total There are approximately 100 km of Category A road ~~ational Highwa}'s 21 0 0 21 within the Valley; 110 km of Category B and 70 km of Feeder Roads (Major) 17 0 0 17 Category C roads and the remainder are Category D F'eeder Roads (Minor) 39 3 43 Districts Roads 36 90 67 193 roads. Urban Roads 332 67 32 431 Total 445 160 100 705 The mixture of fast and slow moving vehicles in the - Source: Department of Roads 1998 traffic stream and poor behavior of the drivers plays a crucial role. Moreover, the pedestrians' irregular walking habits, people dumping debris at the roadside, Of the" width" categories, two were defined as per its encroachment of road space by shop-owners, hawkers Jane capacity in each direction. According to the and haphazard parking have further made the situation convention adopted, the 0.75 lane implies that vehicles worse. At the same time, ineffective enforcement of must slow down to allow the oncoming traffic to pass, vehicle loading regulations has also resulted in excessive and the 0.50 lane implies that vehicles must stop to allow damage to the pavements, which contribute to the high the oncoming traffic to pass. maintenance cost. 6.1.11 Road Maintenance 6.1.12 Roads and Bridges Maintenance of roads within Kathmandu is generally the The Asian Development Bank (ADB) has resurfaced responsibility of the Department of Roads. However, the and resealed off approximately 117 km of roads within DoR has a number of conflicting priorities in regard to Kathmandu Valley, as part of the Second Road the allocation of resources. In particular, the DoR must Improvement Project. The project includes five of the provide emergency maintenance and repair to the main radial roads within the Valley, sections of the Ring strategic national road network. Road, and around 22 km of City Road within the Ring Rvad. Expenditure on road maintenance comes mostly from the Capital Works and Development Budget, The World Bank I IDA has funded the reconstruction of with only a small proportion spent on covering four bridges within the Valley as part of the Flood potholes and doing patchwork. The DoR has Rehabilitation Project. The project includes the categorized roads within the municipal area into reconstruction of two bridges within the urban area of four groups for maintenance; the higher categories Rata Pull across the Dhobi Khola and Showa Bhagwati receive priority treatment: across the Bishunamati River, which were damaged or D Category A: main access roads with street lighting, road markings and signs; roads of ceremonial importance or for VVIP movements; o Category B: important roads within the city; bus routes, main commercial streets; D Category C: lesser roads, not necessarily asphalt, but provided with some maintenance; and 189 CITY DIAGNOSTIC REPORT collapsed during the earthquake of August 21st 1988, as a result of population growth and the expansion of both these bridges have local importance. the urban areas. The Japanese Government has arranged a grant for the reconstruction of six bridges with the possibility of more 6.1.14 Constraints With The Urban Area funding for future bridge sites. The replaced bridges within the urban area are three bridges across the Dhobi The overall development strategy for the Kathmandu Khola and one on the Bishnumati. The remaining two Metropolitan is visualized as such, that the additional are the bridges on the Sankhu Road, 9.4 km and 11.2 population growth will be accommodated within the km from the Ring Road. existing urban area and only limited expansion will be made onto the immediately adjacent land. The Ring Road The bridges within the urban area are fully and properly has a 10-meter pavement width plus generous reserve integrated with the local road network and access routes. along most of its length, and will have adequate capacity Replacement of the bridge at Dalu across the Bishnumati to accommodate future traffic volumes. Elsewhere, (presently used for foot and cycle traffic only) has lead outside the Ring Road, new access roads will be required to an increase of traffic into the congested histqric core for longer-term service of the major areas of expansion. of Kathmandu. The alignment for these roads should be identified and safeguarded until development takes place. 6.1.13 Traffic Conditions 6.1.15 Central Area Congestion The number of vehicles operating in the KMC will continue to increase at around 6 or 7 percent per annum Moderate levels of peak period congestion are currently and motor- cycles up to 14 percent. Overall traffic levels experienced in the central area of Kathmandu; traffic can be expected to continue to increase at 10 percent volumes can be expected to increase, resulting in p.a., representing a doubling of the present volumes in deteriorating traffic conditions. Present congestion less than 10 years. Public transport demand has increased results from the conflicts between vehicles and at the rate of 10 per cent p.a. and will continue to grow, pedestrians, or from public transport vehicles loading Table 4: Traffic flow in the major roads of KMC S.No Routes Bus Minibus Trolley Safa Total Queue Tempo Kirti~ur- Ratna~ark 2533 7933 0 288 10754 2 Dakshinkali - Ratna~ark 1420 2791 0 168 4379 3 Ratna~ark- Baudha- Joq~ati - Thali 7860 6748 0 378 14986 4 Ratna~ark- Air~ort- Maharajgunj- Gongabu 4978 4274 0 189 9441 5 Ratna~ark- Chabahil- Sundharijal 3816 3425 0 0 7241 6 Ratna~ark- Purano Baneswor- Chabahil 8122 6973 0 528 15623 7 Ratna~ark- jor~ati Sankhu 3516 2409 0 0 5925 8 lagankhel - Ratna~ark 10666 8450 0 1404 20520 9 Patandhoka- Ratna~ark 12745 0 0 1350 14095 11 Nara}'anthan - Maharajgunj - Ratna~ark 649 4397 0 624 5670 13 Bhakta~ur - Koteswar - Ratna~ark 20050 24849 0 18 44917 14 Bhakta~ur- Koteshwor -Tri~ureswar 4763 1410 11349 0 17522 15 Bhakta~ur- Koteshwor- Lagankhel 0 6915 0 24 6939 16 Bhakta~ur- Puranobato - Ratna~ark 19309 28388 0 0 47697 17 Thankot- Sahidgate 1379 6699 0 486 8564 18 lagankhel - Koteshwor- Gongobu 0 5598 0 0 5598 19 Ratna~ark- Balaju 0 6258 0 1392 7650 Total 89061 127517 11349 6849 234776 Note: Taxi nnd J<:lectro bus are not included. 190 MUNlCIPALSERVICES and unloading on the street. The poor lay out of the major ongoing construction and upgrading projects controlled junctions also contributes to the inefficient i.e. reconstruction and other bilateral road maintenance use of the available road space. and construction programmes. These programmes can consume and use staff and resources from other activities. 6.1.16 Kathmandu City Traffic Especially for the planning, programming and imple- There is a need of some additional new road links to be mentation of routine and periodic maintenance activities, constructed within the urban area or expand the existing extensive manpower inputs are required for inspections road lanes. Due to traffic congestion and flow, it is vital and pavement survey work. Lots of time and effort goes to fl:>rm a strategic network linking the main sectors of into the administrative procedures to produce annual the city. These linking roads will reduce the dependence records of the road and pavement conditions before and upon the central area. after the maintenance works. With the gradual change from upgrading and reconstruction programmes to more routine and periodic works, the workload of the field 6.11.17 Institutional Constraints staff will certainly increase in the coming years. In order to implement routine and periodic maintenance work in combination with the implementation of new 6.1.18 Construction Capacity and road construction, a couple of institutional constraints Contractors Capabilities will play an important role in the planning and implementation stage. The most important promulgation The contract business in Nepal for road construction cunrently foreseen on the strategic road network are and road maintenance is relatively new. The vast majority summarized as follows: of bituminous paved roads in Nepal were only recently constructed (last 20- 25 years), for this reason, there is Financial Constraints: The financial constraint i.e. late no established contract business with experienced approval of annual budgets and I or late transfer of budget contract firms in Nepal. Contractors have no financial money to the DoR Divisional offices will result in back up, project staff, and equipment. The contractors delayed implementation and incomplete work at the end usually do not have permanent staff and the heavy of the financial year. It has been noted that during the equipment. There is a lack ofroad building equipment. past few years actual implementation of the annual The contractors use manual labour instead of the required programmes were sometimes 20-30 % short of the mechanical inputs for site clearance, grading spreading planned programmes. Factors other than delayed budget and watering of sub-base, base-course and materialized transfers also adversely affect the implementation of the actual scheduled works. with the increased maintenance activities combined with the extensive ongoing new construction and reconstruction works, there is a short-term shortage of staff, to plan, design, implement, supervise and administer road maintenance and construction works. The Department has commitments for some of err¥ DIAGNOSTIC REPORT payment etc. Limited availability of road building appears that Sundharijal is a good source for surface equipment on rent from the Department of Roads often water. leads to delays in implementation and late completion of road. Contractors sometimes have to wait a long time The water use from the Bagmati and its tributarie~, to receive the rented equipment for a limited time from particularly during the dry period, is extensive and the Department. unqualified and it makes it difficult to establish the relationship between rainfall and runoff. A reasonable quality of water is available in the metropolitan, 6.2 WATER RESOURCES AND SUPPLY particularly during the rainy season, which can be stored for winter use. During winter and spring months 6.2.1 Water Resources (October to June), there are not many run-offs in the valley rivers; a large quality of run-off during these Surface water is from river run off and floods. The months is the household sewerage and industrial main sources of water for the rivers are rainfall and effluents. the spring flow. The annual basic rainfall in the Kathmandu Valley is an average of 1,900 mm. The monsoon rainfall pattern, (80% occurs in between June 6.2.1.1 Groundwater and September) imposes natural limitation on the quantity of available surface water throughout the Based on the hydrological formation of various whole year. There are eleven water supply systems in characteristics including river deposits and others, the the Kathmandu Valley: nine in Kathmandu & Lalitpur Kathmandu Valley is divided into three groundwater and two in Bhaktapur. The total storage capacity of zones: a) northern zone, b) central zone and c) southern these systems is 27.65 million liters the current supply groundwater zones. is 105.3 mid in the wet season (surface water 88.3% and groundwater 11.7%) and 70.8 mid in the dry Northern Groundwater Zone: The northern season, of which sur:ace water contributes 65% of the groundwater zones cover Bansbari, Dhobikhola, total and the rest 35% is from the groundwater. Gokarana, Manohara, Bhaktapur and some principal water supply wells ofNWSC are situated in this area. In The drinking water supplied to Kathmandu is from this zone, the upper deposits are composed of Sundharijal Mahankalchour System, Balaju System, unconsolidated highly permeable materials. The coarse Saibhu System, Sundarighat System, Nakhu Khola sediments are however inter-bedded with fine Chapagaon System, Doodh Pokhari System, Lunkot impermeable sediments at many places. The northern System and Mahadev Khola Systems. The distribution groundwater zone has a comparatively good recharging network in the metropolitan is extremely complicated capacity. since it has been expanded without any plans to meet the increasing water demand and the expansion of the Central Groundwater Zone: The central groundwater distribution area. zone includes the core city area of Kathmandu Metropolitan and Lalitpur Municipalities. Impermeable It appears that the average monthly discharge ofBagmati stiff black clay, sometimes up to 200 m thick is found at Sundharijal and Nakhu River at TikaBharav is similar. here along with lignite deposits. Subject to this layer The average annual discharge at Sundharijal remains at there are unconsolidated coarse sediment deposits of! ow 1,933 mm, which is about 67% of the total rainfall. It permeability. The recharging capacity is low due to stiff Table 5: Average Monthly Discharge (m3/s) of Rivers in the Valley Bagmati Bishnumati Naku Tika Bagmati Sumlharijal Budhanilkanth Bharav Chobhar Average 1.07 0.46 1.09 15.5 Absolute Maximum 8.82 1.92 35.98 254.4 Absolute Minimum 0.13 0.01 0.01 0.3 Source: Stranley InternatiOiwl, cum/s = 86.4 million liter a dny 192 MUNICIPAL SERVICES Table 6: Groundwater Extraction for Various Uses Table 8: Population Served by Piped Connection ('0001/Day) Connections Nos. Persons/ Population Shallow Deep Total (July-Aug 1997) Connection P1rivate(lndustry/ hotels/embassies 3,802 5,119 8,921 Metered/Non- metered HMG/N Institutions 286 2,945 3,231 Stand~osts 96,436 7.4 713,626 NWSCWells 39,242 39,242 1,275 146.6 186,150 Others 286 583 869 Total 899,776 Total 4,374 47,889 52,263 Source: Avcrnge of Binnie nne\ JICA figures Source: Stanley International. Existing water supply from NWSC ground water supply impermeable layer The confined groundwater is is limited to an average of 15 mld, which can be increased probably non-chargeable and stagnant. to an average of 25 mld as a short-term solution. Additional supplies from the Saibhu system, Nallu Southern Groundwater Zone: The southern groundwater Khola, Kwanglang, Kulindah and Matatirtha-Bosan zone is located in the geological line between Kirtipur, Khola schemes have been taken. Godawari and the southern hills. Thick impermeable clay formation and low permeable elementary gravel Is common here and the aquifer is not well developed. 6.2.2.1 Distribution System Water is supplied to the Kathmandu Metropolitan urban 6.2.1.2 Groundwater Recharge and areas and some rural areas of the valley from reservoirs. Extraction The supply is intennittant with most of the areas being supplied with drinking water for 2 to 3 hours in the morning Groundwater recharging is generally poor in the overall and 1 to 2 hours in the evening, particularly in the wet scenario, however, only the northern aquifers are well season. In several areas it is often less than one hour a day located for recharge, which is higher in the monsoon and during the dry season water supply is reduced to even season. There is about 52 million liters of water extracted half an hour every alternative day. This is due to water per day of which 8.4% are from shallow wells and 91.6% management rather than water supply from the reservoirs. from deep wells. The distribution network is extremely complicated, since it has been expanded without any plans to meet the 6.2.2 Water Supplies increasing water demand and expansion of the distribution areas. The network consists of pipes, which are up to about The Metropolitan City water supply scenario depends one hundred years old. There is about 491 km of pipeline on many factors such as population growth, per capita of sizes varying from 800 mm to 20mm in diameter. The consumption, effect of high water tariff, yield from condition of many of these pipes has deteriorated. surface sources, implementation ofMelamchi, Manohara and other small sources development works. The leakage and wastage of water is one major problem for the distribution system. NWSC reported 40% water Table 7: Water Availability loss due to leakage and wastage. If the supply situation Supply Available Condition to% of NWSC Table 9: Consumer Survey, W/S Consumers Wet season Dry Season Good 19% 6- 24 hrs 4- 24 hrs Fully Plumbed% Yard Tap% Standposts % Sufficient 15% 6- 8 hrs 4- 6 hrs Poor 49% 3- 4 hrs 1 - 2 hrs 1996 2000 201 0 1996 2000 2010 1996 2000 201 0 No water 15% 0.5- 1 hrs 0 - 0.5 hrs 35 40 50 45 42 37 20 18 13 No response 3% 35 40 so 45 42 37 20 18 13 25 53 22 Source. Consumer Survey, SILT and orne, 1997 25 27 so 53 55 37 22 18 13 193 CITY Dt~(3NOSTIC' REPORT Table 10: Industrial Water Use reported 92,295 consumer houses. 1991 Census Industries No. Total Total NWSC reported a household size of 5.4 in urban areas of of no. of Water Water Kathmandu Valley. Other studies have reported factories employees Use (Mid) Use (Mid) consumers per NWSC connection, which varied from 6.54 to 9.6. Such a significant difference Carpet Industries 1,670 182,500 11.00 1.65 Textile Industries 925 15,769 3.70 0.55 may be due to the disparity in the defmition of Cocoa Cola & household size and consumers I connection and Pepsi Cola 3.80 exclusion of floating (temporary) population in Wool spinning, census. Distillery and Breweries 0.40 Total 18.50 2.60 6.2.2.4 NWSC Connections improves due to additional water supply, the leakage Inconsistency in connection figures reported by NWSC rate may rise to an even higher figure. There has been (97,711) and SILT/DPRC (78,546), led BTW (1998) to an acute shortage of water supply in the urban areas of conduct spot checks at 6 different areas and found Kathmandu City since the last decade. Several studies NWSC connection numbers were reasonably close to have been undertaken for improving the situation but the actual connections in the sample area. Considering only a few recommendations were implemented. NWSC connections and persons per connection from Binnie (1988) and JICA studies (1990), the population served by NWSC is estimated to be 899,776 as shown 6.2.2.2 Current Supply Condition in Table 8. Currently NWSC is serving about 1.0 million people through more than 100,000 private connections and 6.2.2. 5 Category And Proportion Of 1,300 public standposts in Kathmandu valley. The supply Consumers during the wet season is about 120 mid, which reduces to 80 mid in the dry season. Leakage is thought to vary Per capita consumption varies with the category of from 30% to 40% of the supply. Average domestic per consumers and their total demand proportion, there are capita consumption is estimated at 50 lpcd to 70 lpcd. three categories of NWSC consumers, fully plumbed, yard type (just a tap inside the premise) and public The water supply scenario is deteriorating due to the standposts users. Non-domestic consumers are not insufficient supply of water to meet the increasing significant. There was no direct measure of the numbers demands of the rising population. The shortage of of consumers in each category before the consumer supplies is attributed to: high population growth, delays survey. Estimate of proportion of each category made in implementing development programs for more by various studies is summarized in Table 9. supplies, leakage through old pipes and connections, and decreasing yield from the wells. 6.2,2.6 Non-domestic Demand There is inequitable distribution of the limited available supplies. Consumer survey ( 1997) has reported on four Many industries and institutions have their own ground categories of service condition, which are namely good, water supplies. Previous studies have done surveys on sufficient, poor, and no water in NWSC service area. some industrial demands. The total water use in industries Percentage of consumers under these supply conditions and supply hours are estimated as shown in Table 7. Table 11: Non Domestic Demand Year Non-domestic Demand as% of Domestic Demand 6.2.2.3 Household Size and Consumers 2001 12.0% Per Connection 2006 15.0% 2011 18.0% Census (1991) reported 110,956 households in the urban areas of Kathmandu valley while SILT/DPRC (1997) 194 MUNICIPAL SERVICES based on the survey of manufacturers is shown in ii. Domestic demand Table 10. The domestic consumption with unavoidable wastage inside the premises is estimated as following: Almost all industries have their own groundwater sources and only few depend on NWSC water. Estimated non- domestic demand is about 5% of the domestic demand and 6.2.3 Drainage and Sewerage is estimated to increase as shown in Table 11. 6.2.3.1 Drainage It is to be noted that non-domestic demand is not likely to be met before Melamchi is brought into the Drainage is a significant problem in Kathmandu. The Kathmandu Metropolitan. The 821 shallow and 5,499 concerned agencies have not taken into account the deep tube-wells operated by private owners, besides 27 seriousness of water logging in most of the core area. deep tube-wells run by NWSC, the commercial, About 25% of the households in Kathmandu often get instJitutional and industrial water use from non-NWSC flooded due to inadequate drainage. Kathmandu City sources has been estimated as shown in Table 12. has a network of existing drains or sewers, which are designed as either separate or combined systems. At present, only road drains are in function exclusively for 6.2.2. 7 Leakage stormwater drainage purposes. Drains for stonnwater transmission are connected and discharged directly into There is wide variation in the level of leakage in the nearest natural drain or watercourse, running north NWSC system ranging from 25% to 60% of supply. from south of the city. Considering the low pressure in the pipe mains and intermittent supply, the current leakage is expected The existing stormwater drainage systems are inadequate to be low. To arrive at a reasonable leakage for the present population pattern in most of the core assessment, the area with a particular supply condition city areas of Kathmandu. Their implementation is is further sub-divided into sub-areas and supply hours uncoordinated, and many networks remain incom)Diete. in these sub-areas are reasonably assumed. Road kerbs, channels, inlets and storm drains are ;m Considering that longer hours of supply leads to integral part of the system but during storms run offfrom higher pressure in pipes, leakage rate for a particular roads is not efficiently drained out. The combined supply hour is also reasonably assumed. Current drainage systems in the core areas are capable of carrying leakage is estimated at 39 mld and 27 mid, which out the stonn water flows, but the effectiveness has been corresponds to 32.3% and 30.5% of the total supply, reduced due to siltation, inadequate gutters and inlets during the wet and dry seasons respectively. The and lack of maintenance. assessment is based on the number of connections, supply conditions qnd leakage rate, which are all Over the past two decades, Kathmandu has been subjective, accordingly leakage figure can be physically expanding with the inflow of population. considered as indicative only. In the past, there were virtually no settlements along the flood plains of Bishnumati River, Dhobi Khola and Bagmati River. But at present 50% of the flood 6.2.2.8 Seasonal Variation In Demand plains have already been occupied by residential buildings. Seasonal variation based on consumer meter reading records have adopted the seasonal variation on demand as follows: 6.2.3.2Sewerage And Sewage Treatment i, Peak Factor Sanitary conditions of Kathmandu Metropolitan City The peak flow factor of the existing intermittent supply are hazardous and extremely poor with rivers and is about 6 to 12 times average daily flows as the drains heavily polluted with sewage. Sewerage consumers take their supplies in 2 to 4 hours each day. systems and sewage treatment plants do exist in It has adopted an average peak flow factor of2.1 for the Kathmandu metropolitan but very few of households distribution system design. are connected to these systems. The rest of the 195 ClTY DIAGNOSTIC REPORT households use on-plot facilities, shared facilities, Table 12: Non NWSC Water Use public toilets, or riverbanks and open spaces. Whereas the central areas of Kathmandu have a comprehensive Industries/Area Water Consumption from system of sewers, predominantly combined, however, Non-NWSC Tube-wells (MlD) the peripheral areas are not generally well served. The Shallow Deep Total metropolitan sewage has been carried up to the wells Tube Well 1. Caq~et/Textiles 3.349 1.640 4.989 Kirtipur pumping station and discharged directly to 2. Hotels 0.279 1.764 2.043 the Bagmati River. There is no system to link the old 3. Gas (Deet. of Mines) 1.636 1.636 sewers on the eastern side of the Bishnumati river 4. Rural Water sueely 0.206 0.144 0.350 which discharges directly into the river. 5.Hoseitals/Sociallnstitutions 0.080 0.787 0.867 6. Food 0.042 0.997 1.039 i. Sewerage 7. Manufacturing 0.133 0.650 0.783 8. Embassies 0.068 0.068 A combined storm water and sewer system, which is 9. Army/Police 0.162 0.162 50-70 years old, exists in the core area, which directly 10. Schools 0.216 0.216 discharge into the Bagmati River. It is estimated around 11. Others 0.286 0.583 0.869 17% of the households of the metropolitan are being Total 4.374 served by the existing sewerage system. About 60% of the depth of old sewers are still clogged with settled sludge and other debris, lowering their capacity to 40%. facultative and one maturation pond. Due to damaged The flows from these sewers get discharged directly into main pipes, most ofthe sewage discharges directly into the river during the dry season. This constitutes serious the river. The sewerage system is widely considered to health and culture hazard as people are culturally inclined be totally unsatisfactory and rehabilitation is being to use river water as holy water. planned as the reason for its failure is often attributed to the public misuse of the system. There are four sewerage treatment plants with a total design capacity of about 17 million liters per day: iii. Storm Drainage Dhobighat sewerage plant (15.4 mid). Kohoku (1.1 mid), The original storm drainage system has gradually been Salleri (I mld) and Hanumante (50,000 Lid). These converted, informally, into a combined system. There plants are practically non-operational and require are strong theoretical arguments in favor of a separate rehabilitation. They have the capacity to treat sewerage system, but it may be unrealistic in the core areas. The produced by around 55,000 people on a year round basis. different views on this issue have still yet to be resolved. Since the existing sewerage treatment plant is not There is a need for a clearly defined policy in the core sufficient to treat all the sewerage to a desirable quantity, city areas on combined systems as the present systems there is urgent need for expansion of sewage treatment make it more difficult to treat effluent. It is not clear as plant in order to keep the water bodies clean. to who is responsible for urban drainage. Department of Roads, NWSC and the Municipalities all seem to have Many people do not make any distinction between the their roles to play, but their objectives differ. DoR for sanitary sewer and storm water drains. Household pipes example is concemed mainly with the protection of their often flow out into the sewer trunk causing obstruction roads (the main roads) rather than urban drainage. to the flow of sewerage. Collectors are randomly split for house connection, causing leakage and erosion of the pipe. Sewer pipes are often used for disposing of 6.2.4 Solid Waste Management solid wastes, which block the pipe. The curved and winding streets ofthe newly developed urban fringe face There are a few studies that have been done on a great difficulty in sewer lihe extension. the characteristics of Kathmandu's waste in the past. Further more, the data are not comparable ii. Wastewater Systems over time because the nature of the waste vary on . From the cities of Kathmandu Metropolitan, collected the time and place of sample collection and sewage are transported through the Bagmati and methods that have been adopted. Although the Bishnumati rivers towards stabilization treatment pond nature of waste varies according to the living units at Dhobighat with a flow of 15 mid. The plants standards of the community, municipal waste in consist of two anaerobic ponds, followed by one Kathmandu can generally be characterized as MUNICIPAL SERVICES •····· Table 13: Wastage of Water Type of Consumer 1997 2000 2005 2010 lPCD % lPCD % lPCD % lPCD % Fully Plumbed 157 25 160 27 168 46 175 50 Yard Tyee 102 53 105 55 111 40 116 37 Standeosts 45 21 45 18 45 14 45 13 ~pulation Served 953,159 1,127,611 1,459,239 1,648,985 Total Domestic Demand (Mid) 99 123 188 225 Average Domestic Consumetion (I[Jcd) 103 109 129 136 having high organic content, high density and fairly high waste, commercial waste, hospital waste, industrial waste moisture content. CEDA in 1989 study estimated 78% and dead animals. Some of the non-municipal waste is of waste as biodegradable in Kathmandu. Similarly recycled by the private sector and usually contains few according to waste samplings conducted by an NGO, contaminants. Most ofthe agricultural waste is recycled which manages waste from 200 households in Teku and by the farmers themselves and is therefore not a major its neighborhood, consists of approximately 75 percent concern. Furthermore, the area of farmland in the city is organic matter. decreasing rapidly. The amount of yard waste is, however, slowly increasing. A survey conducted by the Solid Waste Management and Resource Mobilization Center in May, 1988 found The main sources of commercial/industrial waste in that the density varied between 330 and 430 kg/m3 and Kathmandu Metropolitan City are restaurants, vegetable/ the moisture content of the waste from six locations fruit markets, slaughterhouses, carpet industry and varied between 39 percent and 58.7 percent. garment industry. Restaurant waste, which mainly consists of biodegradable waste is usually dumped with In 1999 a baseline survey conducted by SEECON the municipal waste or taken by pig farmers in small domestic consulting firm, reported that 3 I 0 tons of waste quantity. Among waste from slaughterhouses, the bones was generated per day in the Kathmandu Metropolitan and skins are recycled but the abdominal waste from City, in which organic waste comprised nearly 57%, slaughtered animals usually ends up in the municipal inorganic materials comprised 35% and the rest was 8%. containers or is dumped on the riverbanks. Fruit/ The: figures clearly suggest the: high potential of organic vegetable market waste is usually dumped in containers. solid waste composition of Kathmandu. The solid waste Waste from the Kalimati vegetable market is taken generation at Kathmandu Metropolitan City is nearly 210 straight to the Landfill site, while waste from the tons from households, 89 tons of waste is from shops and Kuleshwor Fruit Market is now composted to some restaurants and ll tons from institutions and organisations. extent. Some of the waste from carpet and garment The Waste disposal practices in the Kathmandu industry is recycled while many are dumped in containers Metropolitan City is as follows: or riverbanks. o 52% of waste is disposed directly onto the streets, Medical waste from hospitals and nursing homes is a o 22% of waste is disposed at the KMC container or major source of concern because of its hazardous nature. in the tractor, The Teaching Hospital, Norvic Hospital and Patan o 4% organic waste is being made into compost in Hospital have their own Incineration plants. While a few the household, nursing homes burn their waste in crude incinerators, o. 8% of waste is collected by door to door services, most of the other hospitals and nursing homes dump it o 5% of recyclable waste is sold directly from the with municipal waste in containers. It is estimated that sources, and approximately 700 kg of hospital waste is generated in o 10 % of remaining waste disposal is unknown. Kathmandu each day. 6.2.4.1 Non-municipal Solid Waste 6.2.4.2 Management The city of Kathmandu Metropolitan generates large Currently KMC is the main agency responsible for quantities of non-municipal waste such as agricultural managing Kathmandu's waste with 1,317 staff 197 CITY DIAGNOSTIC REPORT members engaged in solid waste management, of this Table 14: Efficiency of Sewerage number approximately 1200 is sweepers. In KMC the 35 ward offices are responsible for waste collection. Months Seasonal Months Seasonal Each ward office is assigned a tractor or a tipper and Factor Factor 20 to 30 sweepers. The waste at the roadside are january 76% july 100% cleaned by sweepers, loaded on to tractors or tippers, February 79% August 99% and taken to the Teku Transfer Station. From some March 87% Seetember 98% wards, the waste is taken directly to the landfill site. Aeril 93% October 92% KMC also has an agreement with private firms to start Ma}' 97% November 84% door-to-door collection of waste in wards 13, 14, 15, june 99% December 78% 18 and 5 ofKMC. Residents normally deposit their waste at the roadside Teku transfer station was built in 1984 along with or in an open public place. The KMC containers are two other transfer stations, one on the way to the picked up and taken to the landfill site. Some people, airport and other at Imadole, Gorkho in Lalitpur. however, dispose their waste in vacant plots or other This was done in consideration of the volume of hidden areas. These waste dumping sites are usually waste generated in Kathmandu and Lalitpur. Due in areas that are difficult to access by the KMC staffs, to airport obligation from civil aviation and as it the result being that the waste usually does not get was within the range of 13 Km radius from the picked up. Kathmandu Metropolitan City has recently International Airport, the transport station was started experimenting by composting waste from closed in 1988. The Imadole transport station of slaughterhouses, fruit markets, and domestic waste, Lalitpur is not in operation since 1992 because of on a small scale. KMC has also started scrap-buying haphazard waste handling by the SWM&RMC staff centers (20 of these centers are around KMC) where resulting in strong' objections from the local people can sell recyclable scrap. community. Teku transfer Station is presently not in operation (lack of proper maintenance) and almost all the waste is being transported through 6.2.4.3 Transfer Station the window yard of the compost plant. None of the responsible organisations has recognized the double The Teku Transfer Station is located in ward 12 in the handling of waste for transfer to landfill site. southern part of the city at the junction of the Bagmati and B ishnumati rivers. The transfer station is spread over 2 ha of open land along the Bishnumati River. Currently, however, only about half the available land is being used for waste transfer. The rest is being used as a transit yard for buffaloes before they are slaughtered. The window yard of compost plant (presently known as Teku Transfer Station) receives approximately 250 m3 of waste per day. This waste is unloaded on to a concrete platform where scavengers gc through it to collect recyclable waste. During the German funded Solid Waste Management Project the platform was used for fermentation of waste into compost. Currently the platfmm is used mainly for the transfer of waste and parking of vehicles. 198 MUNICIPAL SERVICES 6.2.4.4 Landfill Site 6.2.5 Electricity: Streetlight From the transfer station, the loader reloads the waste A 220-volt electricity supply is available in the area of into the big miller (20 cum capacity) or into the tipper Kathmandu Metropolitan City. Short outages are trucks, which takes it to the landfill site located 13-km frequent and considerable voltage fluctuation occurs. northeast from Teku. Currently the site receives Despite this, electricity supply is not a major approximately 600m3 of waste every day. Gokarna is a infrastructure deficiency. However additional generating canyon type landfill site, which was developed and capacity is required nationally and bulk sub-station processed by the SWM&RMC project in 1986. Between capacity requires increment in the valley. With increasing 1993 to 1994, the landfill was closed for about one and population and hence demand for electricity half years due to opposition from the local community. (approximately 10% p.a.), the supply situation is likely Since 1994, there have been numerous occasions when to decline before it gets better. Distribution is generally the landfill has been closed due to local community overhead and many conductors are not insulated. Cables problems. The landfill does not have a liner but the waste are powerful in a variety of different types and heights is compacted by bulldozers and compactors and then of poles (concrete, metal and timber), due to space covered with approximately 30 em of soil immediately. restrictions transfonners are also generally mounted on Landfill gas is released through gas vents. A pond has poles. been constructed to collect and treat the leachate. The Gokama landfill site is already full and now, temporally, Street lighting is generally inadequate, however the main the bank of the river is being used for the final disposal traffic routes on the periphery of the core area have of waste. designed street lighting systems using sodium lanterns. With the core area streetlight schemes, in other areas In a series of experiments at the Go kama landfill site, it lanterns have been placed on poles supporting cables was found that a layer of refuse 1.5 meter's deep, but many are in need of rehabilitation. Ordinary domestic compacted and covered with soil, could absorb rainfall bulbs with shades have been erected either on existing for several weeks. Thereafter produce a leachate poles or on buildings in many places. equivalent to about one third of the annual rainfall in that area, which was 635 mm. This leachate was 20-30 The normally accepted standard of illumination is not times as strong as settled sewage, having a BOD of 6000- achieved in a majority of streets, which should be 7000 mg/liters and contained organic carbon, considered as a serious infrastructure deficiency, ammoniacal and organic nitrogen, ammonia, chloride particularly as streetlights in the core city is the and sulphate. The leachate continued for several years, responsibility of metropolitan. NEA has installed but in less than three years pollutants had declined to a lighting on the major VVIP roads. very low level except for sulphate. A 132 Kilovolt national grid served from 14 power generating stations, which can deliver 242 megawatt. The 66 kV, 33 kV and 11 kV systems feed upto 400-volt supply to consumers. Features of electricity supply, demand and consumption in the Metropolitan are: Cl Average 50% of the nation's annual electric power is consumed in KMC, of which 89% is hydropower and remainder 11% is diesel generated. Cl There is one small, diesel power operated, station in the valley and remainder is located outside the valley. The valley is served 199 CITY DIAGNOSTIC REPORT generally from the 13 2 kVand 66 kV systems, mainly located around the valley's edge. D Approximately 100% of the population in the metropolitan have access to the electricity supply system. c D The current consumer number in different categories m Kathmandu is 132, 826 domestic, 426 commercial, 2,284 industrial and are all metered. D Demand has been growing at an average of 10% per annur:1 over the past 5 years in the KMC. Problems relating to capacity generation and bulk sub- o The maximum demand in Kathmandu is station capacity are due to the delay in implementing approximately 100 MW and the bulk substation new power generating stations. The NEA has benefited capacity is 161.3 MW. in the past from a number of projects supported by D Systems are predominantly overhead and local international financing institutions, further the World substations (11 kV/400 V) are normally mounted Bank supported 'Power Efficiency Project', aimed on poles in the dense urban areas. primarily at consolidating supply in the valley, is to commence shortly System substations and capacities are listed in Table below: Street lighting in the metropolitan is very poor. Street lighting is the responsibility ofKMC, but it is NEA that Table 15 : Electricity Sub-stations and Csapacities has erected some streetlights on the major roads. It has an innovative scheme whereby it plans, designs, installs Power Station Capacity (Mw) and pays for two-thirds of the capital cost of street 1. Panauti 2.400 2. Trishuli 21.000 lighting. The remaining one-third of capital cost will be 3. Sunkosi 10.050 recovered by electricity charges paid in a timely manner 4. Gandaki 15.00 by the beneficiaries. Concerning street lighting in the 5. KL1 60.000 core area, the traders have associated with NEA to 6. Kl2 32.000 provide street lighting, example is a few successful cases 7. Devighat 14.000 in Thamel area. 8. Marsyangdi 69.000 9. Sundharijal 0.600 10. Pokhara 1.088 11. Surkhet 0.345 6.2.6 Greening 12. Seti(Pokhara) 1.500 13. Tinau 1.024 Recreational facilities such as parks, gardens, zoo, view 14. Hetauda (diesel) 14.470 sites, and picnic spots are always essential for the public 242.477 so that they can enjoy them in their holidays. Moreover, Sub-stations (Psep) Capacity (Mw) greenery contributes towards the improvement of the 1. New Teku 18.000 city environment directly. The hills surrounding the 2. New Bhaktapur 10.000 valley have mountain peaks that provide magnificent 3. lainchaur 2*18 views. Kathmandu valley has a few recreation sites in 4. New Chabel 2*18 natural settings but the Kathmandu Metropolitan covers 5. New Baneshwor 18.000 Source: 1\'EA only Balaju, Ratna park, Bhugol park, Panchayat Raj at 200 MUNICIPAL SERVICES J ayanti and Bhrikuti Mandap within its territory. The available space for parks/gardens in KMC is insignificant in comparison to the huge population (425727). The total garden parks have an area of3.06 sq.kms within its 500-meter influence zone serving only 15.53 percent of the total population. The increase of catchment area up to 1000 m. provides accessibility to only 36.66 percent of the total population. Parks/gardens provides facility within 500mcatclunentzonetowards 1,4, 11, 16, 19,20,21, useless for fishing and other recreations they even pose 22, 24, 25, 27, 30, 31 and 32. However, the wards 2, 3, a health risk to the surrounding community. Pokharis 5, 6, 7, 8, 9, 10, 12, 13, 14, 26, 28, 29, 34 and 35 have are used as rubbish dumps, and they become polluted no access to these facilities. and smelly and turn into health hazards instead. 6.2.6.1 Open Space And Greenery 6.2.6.3Lack of Greening Plan and Policy Unplanned urban growth has caused the city to become No organization has taken the lead in promoting the a concrete jungle with very few open spaces. Many development of the city's greening. Kathmandu traditional open spaces such as riverbanks, ponds and Metropolitan does not have any overall policy or chowks are also being encroached upon. Most of the projection on city greening, or any information on the remaining spaces are not managed properly and often availability of recreation space. The Metropolitan is converted into garbage dumps. As a result, there are very responsible for maintaining parks and other recreation few areas where urban residents can relax, enjoy nature, spaces, and have undertaken some greening process such play and breathe fresh air. Recently, Kathmandu as Thapathali, Maitighar, Minbhawan, Airport, Teku, Metropolitan City and some NGOs, together with the Gaushala, Kalimati, Bagbazar, Jamal, Kingsway, stakeholders have started to build small parks and gardens Jawalakhel, Chabahil, Ratnapark, Tinkune, Maharajung in some areas of the city including traffic islands. Traders etc, thereby creating pleasant green towns and cities. and squatters occupy existing parks and open spaces in the towns, which leaves less space for recreation. The The main problem lies in the fact that there are no clear children and teenagers have no space to play football & strategies and divisions of responsibilities among the other games and are forced to play in the streets. central government or at the municipal level for the provision and maintenance of recreation space. The Municipality has yet to establish definite policies on the 6.2.6.2 Fresh and Clean Water Areas provision of recreation space, greenery, and bylaws for the implementation of the policies. Areas of fresh water in towns such as rivers, lakes, Pokharis and fountains are pleasing to the eyes and give The Government should facilitate main institutions like a sense of space and peacefulness. Clean-lakes in towns Guthis to operate the public places since most of these can be used for recreation, such as swimming, boating open spaces belong to Guthis and are not used, as they and fishing. The water bodies help to cool the air in the should be. In the past, the local Guthis were main hot summer months. ,Polluted urban lakes are not only institutions, which owned land and facilities in urban CITY DIAGNOSTIC REPORT areas. The Guthis lend their facilities to the public for Kathmandu Valley Development Council (KVDC) is an various purposes but are gradually dying out due to lack autonomous council comprising of locally elected of management within the Guthi system and lack of the representative, supported by a technical office with support from the government. responsibility for strategic planning and management of Kathmandu. The necessary technical staff for the Municipalities is transferred from the central 6.2.6.4 Presure on Metropolitan City Public government. The objective is to equip the local Land government with professional staff, however this has yet to happen. Public land is not used wisely for the beneflit of the community, especially in a situation where land is under development pressure. Public land is required to make 6.3.2 Road Networks and Management the environment vibrant. The Government policy, rules and regulations are Municipalities are always under pressure for public land inadequate, regarding the financing and allocation of in the following areas: appropriate funds for city road maintenance and upgrading. Coordination between concerned agencies o Roads, bridge and drainage, is lacking when dealing with the arising street o Public latrines and urinals, problems. o Disposal of garbage and rotten materials, o Landscaped areas, parks, gardens and other green areas, Huge congestion at the junctions within the city one- o Slaughter houses, way system seems to be a big problem. The present D Parking areas for vehicles, constraints in the road networks and management is due o Recreation grounds, stadiums, hospitals, to public ignorance and the number of secondary roads dispensaries, created in the metropolitan city by local community. D Tree planting on road sides and at other suitable places, The maintenance of roads in the metropolitan is generally o Parking places for vehicles and other transport services, the responsibility of the Department of Roads, except o Ponds, wells and other water features, "D" category as this is the municipality's responsibility. o Education facilities and playgrounds etc. Even category 'A' VVIP roads under the DoR are not suitable for smooth vehicle movements. A number of 6.3 FUTURE TRENDS bituminous layers patch the same potholes every year. It is already recognized that the rehabilitation of "A" 6.3.1 Municipal Institutional Capability category roads are prerequisite, however, the DoR has a number of conflicting priorities in regard to the allocation Some departments, functioning in the capacity of of resources. departments in the municipality, do not match the defined role of the departments. There are many sections, which Public transport vehicles loading and unloading on the are just lingering without doing any significant work. street at any time is common in the city. Tt is due to the Some departments are highly loaded with a specific task insufficient length and width of roads in comparison to though they have great potential for focusing on other the traffic flow and inefficient traffic control. The number areas as well. Consequently all the staff within the of vehicles is increasing every year where as the roads department are being mobilized to meet that specific task remain the same. only. Like wise, other departments undertake projects on section basis ignoring other se~tions. It means that The vehicle pressure every year demands additional new no system has yet been developed to capitalize each road links to the city road within the urban area and department's scope. They have been established, but their expansion of the existing road width to cope with the scope has yet to be exploited. Due to lack of co- traffic congestion and flow. Traffic management in ordination among the departments, there is overlapping Kathmandu City indicates that there is no system to and duplication in program implementation. control the traffic flow. It is due to the overflow of vehicle 202 MUNICIPAL SERVICES on constrained road lanes and lack of technology on sewers and connect their toilets to the nearest and traffic management. most convenient drain. 3. Most of the drainage does not follow the natural topography and building developmenJ in the low 6.3.3 1Water Resources and Supply land is now expanding towards urban development resulting in localized flooding. 1. The Sundarijal (Mahankalchour) system is the 4. There are four seweragetreatment plants with a total largest water system providing more than 45% of capacity of about 17 million liters per day; Dhobighat, the present supply of water in KMC. lt is estimated Kohoku, Salleri and Hanumante. These p!ants are not that there is about 30% water leakage and no in operation. With rehabilitation these plants will have precautionary measure has yet been taken to reduce the capacity to treat the sewerage produced by around the wastage of water. 55,000 people on a year round basis. 2. Bishnumati Khola and Mahadev Khola system 5. The sewers have to be routed close to the banks of supply 10.8 mld in the wet seasons and 5.6 mld in the Bagmati, Bishnumati and Dhobi Khola. the dry seasons. It's efficiency has been reducing Neighboring areas above the elevation of the sewer every year in terms of quantity and quality due to may be served at nominal additional cost. the lack timely rehabilitation of the treatment plant. 6. For future, the Dhobighat sewage treatment plant 3. The purification capacity of the river has been can receive short-term flows, from Kathmandu with decreasing and can no longer digest the increasing the necessary repairs and maintenance. pollution load. 7. Previous survey has determined pocket areas in the 4. The static groundwater level in the well fields has Kathmandu Metropolitan, which urgently require declined due to large scales of extraction of clearing of the blockage of storm drains. groundwater. The water level has fallen between 6 8. In future, along Tukucha Icnv PIAGNosTic REPoRT Table 1: Stakeholders' Analysis STAKEHOlDER NATURE/INTERESTS EXPECTATIONS POTENTIALS FROM KMC FOR KMC UNESCO Preservation and Conservation Implementation of proper Funds for conserva- of the four monuments zones controls for new develop- tion and Technical of KVWHS within KMC ments in heritage areas support for design and conservation action and implementation of actions IUCN Interest in the conservation of Commensurate actions Small funds for con- built environment servation/ strategy implementation Dept of As legal custodian of archeo- Implementation of proper Technical advice, joint Archeology logical and other tangible artis- controls for new develop- action for conserva- tic heritage under the Ancient ments in heritage areas tion, mediation with Monuments Act and for respon- and conservation action HMG on heritage sibilities accruing thereof, to- and take full responsibil- matters wards protection, preservation ity for heritage of 'local' and conservation of heritage importance Guthi Samsthan As a legal administrator of tmst Development and invest- Joint development properties ofheritage monuments ments in its properties, re- actions and coordi- under various traditional guthis vival of public participa- nation and resource and the heritage element itselfand tion in cultural activities, management responsible for maintaining the el- repair and maintenance ement as well as organizing ritu- als and festivals required for their socio-cultural sustenance Dept. of As urban development depart- Cooperation and coordi- Policy and Planning Housing and ment, involved in urban poli- nation in housing and ur- and implementation Urban cies, planning and regional ban development activi- support (technical) Development planning aspects of the valley ties and activities at heri- and the town tage sites KVTown Regional development and val- Co-operation in imple- Technical and Development ley wide plan/ policy adherence mentation execution support Committee Ward Chairman As people's representative and Financial and technical Local support, com- part oflocal administration inter- support munity participation ested both in preservation ofheri- and local heritage in- tage as well as local development ventory and protection Nepal As a public-private develop- Support to tourism inter- Business & private sec- Tourism Board ment board, promotes and fa- est in heritage conserva- tor support to heritage cilitates development of cul- tion/ protection of tourist conservation &manage- tural tourism sites ment of sites KV Preservation INGO with direct interest in Community led proposals Funds and technical Trust providing resources for joint for fund raising and ac- support may be action in conservation of monu- tions sought ments HERITAGE CONSERVATION STAKEHOlDER NATURE/INTERESTS EXPECTATIONS POTENTIALS FROM KMC FOR KMC NEPAl HERITAGE As a volunteer society, it serves Active conservation Help in awareness SOCifTY a watchdog function and also and joint action building, voluntary aims to assist in conservation technical assistance through awareness building and marshal business suppor~ KATHMANDU Volunteer awareness building Forum assistance Youth mobilization 2020 in youth for heritage and con- for cultural revival and servation heritage sensitivity JYAPU Volunteer consortium of Guthis Support for conserva- Wide specific commu- MAHAGUTHI for revival of religious and tion of intangibles of nity participation ritual practices I pride develop- cultural practice ment GUTHI: An active Monastic Guthi that Duplication in other Specific monastic and CHHUSHYA has successfully mobilized its monasteries religious group sup- BAHAl traditional and new resources port for conservation/duplication FEDERATION Local NGO consortium brings Backup and ward level Local responsibility Of coordination between local support sharing for WHS-MZ SVAYAMBHU NGOs/participation and insti- management I funds M&C tutional assistance COMMiTTEE DAFAGROUP Conservation of singing tradi- Financial I institutional Elderly involvement in tion/ support for conservation understanding cultural conservation of pati, sattals etc HANDICRAfT Individual citizen seeking em- Allow public space use Citizen employment/ PEDDlER ployment in tourism for business cleanliness manage- ment HANDICRAfT Heritage area business and sup- Planning action I train- Potential contributor SHOPKEEPER ports local skill employment I ing to craftsmen to local financing of improvement of site visitor activities I training numbers support to skill trades HOTH Heritage based business inter- Promotion Heritage Financial support to OPERATOR est Conservation I zoning conservation/ promo- support tion TOUR Heritage based business inter- Promotion Heritage Financial support to OPERATOR est Conservation conservation/ promo- tion' 235 CITY DIAGNOSTIC REPORT 7.5 PROBlEMS AND ISSUES 36 (d) Lack of local awareness and appreciation of maintaining heritage ambience Problems and issues on cultural heritage were x. Issues related to limited interpretation of heritage discussed in the first stakeholder workshop. First and buildings (smarak or murta sampada) alone as foremost, concern was expressed for conservation and heritage preservation ofheritage. The problems of institutional xi. Issues related to conservation of intangibles coordination, lack of proper preparatory inventories, (amurta sampada)- such as festivals, rituals, the failure of the institution of the Guthi, lack of language, music, songs, bhajans etc. proper understanding and awareness about the culture xii. Issues relating to conservation of dhunge dhara itself and development pressures were key reasons (recessed pit stone water conduits) and their cited as being responsible for the currently poor status sources. of conservation and preservation. The various issues xiii. Lack of study and research on heritage and its raised may be broadly grouped into four headings and importance - lack of appropriate educational and are listed below: awareness campaigns XIV. Lack of involvement in conservation and reduced 7.5. 1 Conservation I Preservation of traditional cultural practice by the younger Heritage generation (a) Non-compliance to building regulations by new (e) Lack of inventory constructions at the WHS, particularly at xv. Need of intensive investigation of historical and Hanumandhoka Palace Square and Boudda archeological heritage and their identification monument zones xvi. Need to consolidate various inventories and making 1. Issues of compromise between development it available in user friendly fonnat pressures and conservation needs at WHS zones xvii. Need to make inventory of intangibles such as ii. Issues pertaining to private buildings enveloping festivals, bhajans, rituals, etc heritage sites iii. Issues of planning strategies to relieve heritage areas (f) Dying traditional skills of development pressures - counter polarity xviii.Lack of sufficient skilled workers to undertake development I etc. conservation IV. Issues relating to offsetting development rights at xix. Loss of 'originality' in conservation/reconstruction heritage sites and appropriate reimbursement works undertaken locally due to lack of appropriate v. Issues of pedestrian attitudes. knowledge and skill (b) Lack ofco-ordination between various agencies 7.5.2 Heritage as a Resource for involved in the conservation ofreligious and cultural Capitalization (Heritage Based heritage. Tourism) VI. Issues of management of conservation or sharing responsibility of conservation I preservation (g) Visitor Entry Fee between Department of Archaeology and Guthi xx. Uncoordinated application of Visitor entry fees Corporation. xxi. Undefined state of who has the authority to collect VII. Issues related to lack of community participation fees or what agency is responsible. in heritage conservation xxii. No direct contribution of heritage dependent industries or institutions such as Hotels, (c) Lack of sufficient investments in conservation Restaurants, Handicrafts Shops, Travel Agencies, viii. Issues of conservation of the Guthi system Cultural Perfonnance centers, Money Exchange, (Resurrecting private I community Guthis) etc. towards heritage conservation and management IX. The drying out of traditional resources for costs conservation such as Guthi funds and land and lack of efforts to mobilize contemporary (h) Tourism based Employment resources (Detailing NGO I CBO participation, xxm No data on Heritage Tourism as an employer I involving tourism industry in conservation, etc.) employment generator for the city residents to meet the gap xxiv. No direct benefit to the immediate 'community' HERITAGE CONSERVATION xxv. Lack of city based museums 7.6 CHAllENGES AND POSSIBIUTIES: (i) Expenditure of heritage revenue Loss of cultural heritage in Kathmandu valley may be xxvi. Lack of clarity in use of heritage revenue ascribed to thre.€ basic reasons - (a) pressures of xxvii. Need to spend resources on development, (b) loss of cultural practice in the parent a. Conservation and presentation of physical group and lack of understanding of its importance and heritage (monuments and sites, routes of relevance by the traditional inhabitants and the heritage, river side heritage, etc.) immigrants alike, and (c) loss of traditional sources of b. Support for preservation of festivals, rituals, funding and institutional set up or the Guthi. The key music, songs etc. challenge to KMC's strategic vision of transforming itself c. Enabling actions (for earnings and into a "Capital with a Living Cultural Heritage" would employment) e.g. training, marketing, be the continuing development and population pressures promotion, public education that the growing capital city would have to sustain for the immediate future and also on a medium range. In the long range, we may forecast that the unprecedented 7.5.3 Image of the Town high growth rate of Kathmandu city may be slowed down to some extent, if the nation is able to sincerely affect a (j) A city with a living Cultural Heritage decentralized governance and a dispersal of development xxviii. Need to conserve heritage buildings and other and social services facilities. But for two decades or tangibles more, Kathmandu city will have to absorb most of the xxix. Need to conserve character of heritage areas such immigrants to the valley, with a small share going to as streets and squares Lalitpur and Kirtipur towns. In such a situation, the xxx. Need to fully regenerate and conserve cultural successful heritage strategy must be aimed through activities such as festivals, rituals etc. careful application of planning options that would divert xxxi. Need to rehabilitate and use traditional urban mercantile economic development to outside the heritage services such as Dhara, khyos, Patis and Sattals areas of the core and wards nos. 4, 5, 6, 7 and 15. As the heritage areas are also physically the densest sections, (~)Modern city with living Cultural Heritage conscious creation of economic development counter- xxxii. Policy for private heritage buildings poles is quite possible and feasible. Economic diversion xxxiii. Policy of city core and Development right would also potentially lengthen the building replacement reimbursement period in the heritage sites. Revitalization of the Guthi xxxiv. Policy for new development areas system as well as the cultural rejuvenation must of xxxv. Policies for public development works necessity be taken as a slow process and that too, if at xxxvi. Policies of planning all successful, will remain to a very small scale. Therefore, all the past causes of heritage loss will remain active and demand directed policy action. 7.5.4 Heritage I Culture as an Environment for living of the People It has already been pointed out that KMC has suffered the worst loss of heritage as compared to other four towns xxxvii. Heritage for the continued well being of the in the valley. In terms of heritage environment and people, increasing awareness towards heritage tourism potential, Kathmandu faces the strongest xxxviii.Assisting deliberately in cultural transformations competition from Bhaktapur and also from Lalitpur. and practice of culture Comparatively, Kathmandu, however, enjoys xxxix. Augmenting Citizen value of Heritage comparative advantage from all the rest in that it has xl. Community participation in conservation large pockets of wide diversity built heritage and also xli. Arresting further loss of heritage due to private most of the tourism services are concentrated within its development central part. With four monuments of WHS KV within CITY DIAGNOSTIC REPORT regulations, while the other fa9ade controls like openings and exposed brick requirements are slowly being respected. Although, the general blame for the situation has often been put on the private citizen and his lack of sensitiveness to heritage requirements, the situation is also a result of the controls not properly satisfying the development needs of a changing society. Just as heritage needs to be conserved, so also the residents living in the heritage area need to the KMC, one secular, one of Hindu and two of Buddhist move with the times and enjoy their development rights. religious association, as well as the river Ghats heritage Since, development potential and consequent right of from the most ancient to the most recent historical- economic exploitation is a complex function of service cultural periods, it has truly diverse sites to offer. It is availability and proximity to other types of economic also equally important that popular new sites such as zone, the diffusion of potential economic exploitation Thamel and Jhochhen have no equals in the valley. KMC may be strategically used to reduce propensity towards could enhance this strategic advantage by further tall constructions. Since it would not be in the in~~erest diversifying the attractions and also taking advantage of the vitality of the area to reduce beyond redemption, of its cosmopolitan nature. For example, the Rana that would ultimately lead to slum formation in heritage palaces, such as Keshar Mahal, can provide an entirely areas, the experiments in transfer of development rights unexpected new attraction to the western tourist. (TDR) being successfully tried in Hong Kong etc. may be more handy in helping adherence to architectural and With the widely dispersed physical heritage, both height controls in such areas. TDR as a planning tool movable and immovable, it is virtually impossible or offers a different kind of easy maneuver to create unlikely that institutional approach and application alone business counter poles at a safe distance from heritage will be able to bring about significantly better protection zones and for KMC too this can be capitalized with and conservation of heritage. Lack of community advantage. participation and their distancing from the heritage in the past are obvious bottlenecks for improvement to the For heritage conservation, institutional and legal situation. However, in the past few years, one has been weaknesses will be constrains of another kind. The observing a growing positive attitude towards physical weakness of the Guthi Corporation, the weaknesses in heritage and this could be capitalized as an opportunity the AMP act 1957 and its revisions, the 'built heritage' of significant dimension for conservation. Strategic oriented government institutions and their governing nurturing of the nascent situation should be a conscious rules and regulations threaten to continue to hamper guiding principle for enduring conservation. development of a heritage focused core. The most vexing problem at the monument zones listed in KVWHS or others of national and city importance is 7.7 INSTITUTIONAl the incompatibility of privately built replacement ARRANGEMENTS AND GAPS structure with the heritage ambience of the site or buildings not confonning to the 'building codes' in force Institutions, in general, derive their existence out of the in the areas. The main problem that has remained is the legal enactments of the nation, which, in the case of tendency to construct buildings taller than allowed by cultural heritage, are summary provisions under the 238 HERITAGE co~$ERVATION Ancient Monuments Protection Act, 1956, Guthi of sites, responsibilities for conservation, responsibilities Samsthan Act, 1964 and Municipality Act, 1992 and of developmental works and authority for revenue their revisions. Under the last act, Section 63 .I (L) generation, etc. add up to debilitating proportions. It is requires municipalities to preserve historic and religious seen that only the Guthi Samsthan Act requires that places, and to promote their importance and reputation. institution to act towards sustaining and maintaining Its Section 15.2(H) requires them to also make land-use cultural practices as explicitly stated by donors in the and town development plans. The responsibilities for past. However this is limited to 'Raj Guthi' only and other implementation of legal provisions under the Ancient Guthis such as 'Chhut Guthi' and 'Niji Guthi' are left to Monuments Protection Act are vested in the Department unguided private action, and most of the latter have of Archeology (Ministry of Tourism and Culture) and virtually ceased to exist. the Chief District Officer, the latter working under the Ministry of Home. These provisions require The KMC organizational set up provides the municipalities to issue building permits for new buildings 'Heritage and Tourism' department, which is in its or alterations at heritage sites on permission of DOA. formative stage and not sufficiently built for Although the Local Governance (Decentralization) Act handing the vast works associated with the makes Municipality an autonomous administrative department. KMC may, however, use any institution, it is located under the Ministry of Local institutional/technical support provision (see Development. The town development function, which stakeholder map above) of the various departments enables any planning intervention to cause heritage and NGOs and INGOs. 37 However, all the preservation, is, however, located under the Ministry of government departments are not legally required Transport and Public Works and its Department of to assist in or act directly for the implementation Housing and Urban Development. The split in the of KMC's policies, plans and programs. departmental responsibilities between technical support (DHUD) and management support (MLD) for We can, also, see a glaring gap in institutional m1micipalities have brought about their own difficulties. provision for conservation of intangible cultural The right to raise resources from heritage in the context elements. As a matter of fact, Section 63.1 (L) of of cultural tourism may be interpreted to rest with the Municipality Act omits rei'erence to properties of municipality. There is little or no 'legally established' aesthetic, cultural or social importance. This will linkage of Ministry of Tourism to cultural heritage. make preservation of even physical heritage components such as private residential courtyards, The conflicts between Local Governance Act, wells, stone water conduits etc. contestable Municipality Act and AMP act in terms of ownership legally. \. CITY DIAGNOSTIC REPORT Table 2: Heritage Conservation - Issues and Implications Conservation I Preservation of Heritage ISSUES IMPLICATIONS ACTORS/DONORS Non-compliance to building regulations by new Discordant visual backdrop with DHUD(HMG) I DoA(HM G) constructions at the WHS, particularly at changing fa9ade and Increasing height IKVTDCIKMC Hanumandhoka and Boudda monument zones I Issues of private buildings, Conflict of pertaining to private bmldmgs enveloping heritage sites building materials Issues of compromise between development Change of usage of private buildings in DHUD(HMG), KVTDC, pressnres and conservation needs at WHS zones I WHS monument Zones, Loss of KMC offsetting development rights at heritage sites and development right of private citizen appropriate reimbursement Issues of development pressure in heritage areas Change to incompatible use, Loss of KVTDC I KMC I HMG ambient visual environment and (Sectoral Departments) encroachment of heritage spaces Issues of pedestrian atitudes towards heritage sites Loss of monuments by vibration, KVTDC I KVUDPI ADB Limited access to residents, No through movement Issues of management/sharing responsibility of Loss of investment, Conflicting signals HMG, DoA(HMG), conservation I preservation between DoA and GC I to general public, Loss of heritage GS(HMG), KMC NHS Lack of co-ordination between various agencies involved in the conservation of religious and cultural heritage Issues of lack of community participation in Distancing of community from its KMC, NHS, Kathmandu heritage conservation I Lack of local awareness heritage and its operation, loss of 2020, WB, EU (poverty and appreciation of heritage ambience I Lack of meaning of heritage to daily life and Alleviation) involvement of youths in conservation and in limited institutional capacity in the traditional culture context of profuse heritage Lack of sufficient investments in conservation I Loss of heritage, priority tends to go to FSMCC I GCB I NHSI Drying out of traditional resources for peak edifices and of national JMG, NTB, HMG (Seeton conservation such as Guthi funds and land and importance, neglect of heritage oflocal, Departments), UNESCO, Lack of efforts to mobilize contemporary resources community and clan significance UNDP Issues of conservation of the Guthi system Loss of capacity to conserve NHS, KMC, Kathmandu 2020 Issues of limited interpretation of built heritage Reduced meaning as a living heritage KMC, DoA, GS, EU (smarak or murta sampada) I Need to make inventory of intangibles such as festivals, bhajans, rituals, etc, Issues related to their conservation Issues relating to conservation of dhunge dhara Loss of heritage, free water supply to KMC, DoA, DWSS, WB, (recessed pit stone water conduits) and their sources. poorer section of society and loss of NORAD drainage capacity Lack of study and research on heritage and its Continued loss due to lack of KMC, TU, DoA, UNESC<) importance- Need for investigation/identification knowledge of historical and archeological sites Lack of inventory I Need to consolidate various Continued loss due to lack of listing KMC, Wards inventories and protection Dying traditional skills I Lack of sufficient skilled Loss of skill capacity to conserve, Loss KMC, Wards, NHS workers to undertake conservation I Loss of of employability 'originality' in reconstruction works f!ERIJAGE CONSERVATION. . Heritage as a Resource for Capitalization (Heritage Based Tourism) ISSUES IMPliCATIONS ACTORS/DONORS Visitor Entry Fee, uncoordinated application I Harrassment of Tourists, Difficulties in KMC,SCDC undefined authority or associated responsibility travel and trade No direct contribution of heritage dependent Overexploitation and loss KMC, NTB, Individual industries, e.g. Hotels, Restaurants, Handicrafts Businesses Shops, Travel Agencies, etc. towards heritage conservation/management Tourism based employment I Lack of data on Disorganised capitalization of culture KMC, NTB, Individual Heritage Tourism as a!). employer I employment and tourism at individual level, over Businesses generator for the city residents I No direct benefit exploitation of tested options to the immediate 'community' Lack of city based museums I Lack of unique Reduced competitiveness KMC, NTB, Bilateral attractions Donors, KVPT Image ofthe Town Issues of developing KMC as a city with a Living Increased relevance to people I KMC, EU, NORAD, IUCN Cultural Heritage Augmented potential for heritage tourism Issue of heritage buildings in private ownership I Loss of heritage at private level DoA, KMC, Wards Arresting further loss of heritage to private development Heritage I Culture as an Environment for Living of the People Developing Heritage for the continued well being Increased Relevance for people KMC, Donors (poverty of the people alleviation), KVPT Deliberate cultural transformations and practice of Recognition of change needs KMC, Local Clubs, IUCN culture Community participation in conservation I Reduction of community and NHS, Kathmandu 2020, Augmenting Citizen value of Heritage individual distancing from heritage Institutional Development Donors Making a Modern city with living Cultural Increased relevance for people and KMC, DHUD, KVTDC, Heritage their changing aspirations Do A 241 {\~ ·N CALENDAR OF FESTIVALS IN KATHMANDU VAllEY ANNEX: 1 1901AD 1958 BS 1999 BS 1942AD Regular Name "·iO Date Tithi Date Festival Tithi Date Date Festival -1,:- -< ~'· ;~ :-";(/ j Mar. 21. chaitrasudi 1 Chait 9 chovanhava :CJ 27. chaitrasudi 8 Chait 15 ( Aadinathsnan) Machhindra Ratha yatra > GY Apr.3. chaitrasudi 15 Chait 22 Vaukot devi yatra z: ;o (lhutisnan) Balaju Mela (/) 5. baisakhbadi 1 Chait 24 Vuganhava jatra at hadigaon -1 baisakhkrisna13 Baisakh1. mon .13.Apr. Bhaktapure 0 Viswodwojvanjanam ;:o' 18. baisakhbadi 14 Baisakh 6 Matritirtha yatra baisakhkrisna 14 Baisakh2.tue .14.Apr. Srimahakali : IJ. m ---------·--- Mahalaxmi ratra 0 baisakhkrisna 30 Baisakh3.wed .15.Apr. Matatirthasnanam ~ /Sri Brahmani ratra 19. baisakhsudi 1 Baisakh 7 Vugayata baisakhsukla 1 Baisakh4. Thu .16.Apr Chhumaganesh ratra Bhakta~ure baisakhsukla 2 Baisakh5.Fri .17.Apr. Sri Vairab Vadrakali ratha yatra Bhaktapure baisakhsukla4 Baisakh7.Sun .19.Apr. lalitpattane Matsyendra natha Ratha yatra baisakhsukla8 Baisakh12.Fri .24.Apr. Sripashupa terdamanarohanam Ma~ bais Oct.27. aswinsudi 15 Kartik 11 Katinpunhi, Sigapunhi kartikkrisna14 Kartik22.Sat. .7.Nov Swantichahre N Nov.11. kartikbadi 30 Kartik 26 Mahpuja __ __ ____ Tihar, Dipavaii w ""' N t CAlENDER OF FESTIVAlS IN KATHMANDU VALlEY Q .. 1901AD 1958 BS 1999 BS 1942AD Regular Name ~; Date Tithi Date Festival Tit hi Date Date festival jatra at Hadigaon d .26. kartiksudi 15 Mangsir12 Sakimalapunhi ·s:;:· G) Dec.5. margabadi 10 Mangsir 21 Guheshori yatra Mangsir18.Thu. .3.Dec. z margakrisna14 Mangsir22.Mon. .7.Dec. Balachahre 0 .19. margasudi 8 Push 5 Bakhunmada Mangsir30.Tue. .15.Dec ~· .25. margasudi 15 Push 11 Thinlapunhi Push7.Tue. .22.Dec Yomaripunhi 0 jan.4. poushbadi 10 Push 21 Chilladishi Push17.Fri. .1.jan. Dishipuja ;::o poushkrisna14 l"ush21.Tue. .5.Jan. Ukhuchahre m .17. poushsudi8 Magh 4 jamanhavam Push29.Wed. .13.jan. ~>. Machhindrasnan -:rl o' .21. poushsudi 17 Magh 8 Muswadhuli __ Magh5.Mon. .18.jan .23. poushsudi 14 Magh 10 Milapunhi poushsukia15 Magh8.Thu .21.Jan Changu n. Haigu, Bhktpr Hanuman tirthasnan maghkrisna14 Magh22.Thu .4.Feb laichahre Basantapanchami Feb.15. maghsudi 7 Falgun 4 __ lagalachuy v~:'7t}:;_,::;,:-,'/;, INVENTORY OF DHUNGE DHARAS 38 ANNEX: 2 S.No. Name & location Year Built Built By Code & Status 1 Tangal Gairidhara 6th Centu!I Amshuverma 1.1 Good 2 Nandikeshor Naxal 14th Century 3.1 Good 3 Tindhara Pathsala 14th Century laxminara:zan 8.1 Poor 4 Narayanhiti 15th Centul)' 9.1 Good 5 Dhobichowr lazim~at 8.2- 6 Dhobichowr lazim~at 2.2- 7 Bhatbhateni Ren. 18th Century 4.4 Fair 8 Dhumbarahi 18th Century 4.5 Poor 9 Handigaon Ukalo 16th Century Palsinga Praja~ati 26.5 Fair 10 Panchedhara Handigaon 14th Century Ren. Dhir Sums her Bir Sumsher 28.5 Poor 11 Saty:anarayan Handigaon 10th Centul)' 32.5 Fair 12 Naxal Bhagabati 1 7th Century: 39.5 Fair 13 Sifal 19th Century: 40.5 Fair 14 Boudda 1 7th Century: 2.6 Fair 15 Boudda 19th Centul)' 3.6 Fair 16 Tinchule Boudda Mahankal 19th Centul)' 4.6 Poor 17 Tinchule Boudda Mahankal 16th Century: 5.6 Good 18 Boudda 18th Centul)' DadhiBuda 6.6 Poor 19 Chabel 18th Century Siddhiman Karnel 2.7 Poor 20 Chabel 15th Centul}' Community 6.7 fair 21 Chabel 18th Century 7.7 Poor 22 Chabel Chakra~ath 18th Centu!I Ren Bisnumani Achal}'a 8.7Good 23 Chabel Chakra~ath 20th Century: 9.7 Good 24 Chabel Ganesh 17th Century Siddhiman Kamel 10.7 Poor 25 Jay:abageswori NS 508 Jay:asthiti Malia 5.8 Poor & 26 Bhubaneswori 15th Century: 27.8 Poor 27 Bhubaneswori Deveattan 16th Century: 29.8 Fair 28 Bankali 18th CenhJI)' 34.8 fair 29 Battis~utali 18th Century: 4.9 Good 30 Battis~utali NS 968 Thakusing Bharo, Hari Bharo 6.9 Poor 31 Pimbahal Battiseutali 16th Century: 7.9 Fair 32 Battis~utali 19th Centur~ Purne Dhobi 8.9 Fair 33 Battis~utali 18th Centul}' 9.9 Fair 34 Sinamangal 18th Century: 11.9Good 35 Harjantole 18th Century: 13.9 Good 36 Battiseutali 19th Century: Goeal Bhatta 15.9 Fair 37 Koteswor 18th Century: 1.10 Fair 38 Koteswor, Mahadevsthan 18th Century: 7.10 Poor 39 Koteswor Mahadevsthan 19th Centu r~ 8.10 Fair 40 Koteswor 19th Centur~ 12.10 Good 41 Minbhavan 20th Centul)' Bhim Sumsher 13.10 fair 42 Baneswor BS 1980 Kulbahadur Mali 16.10 Poor 43 Baneswor 18th Century: Padamdwoj Thaea 17.10 Poor 44 Mahadevsthan Baneswor 19th Century: 18.10 Poor 45 Dhobidhara Baneswor 18th Centur~ Fattebahadur Sardar 19.10 Fair 46 Battiseutali Baneswor 19th Century: 20.10 Fair 47 Kohiti 15th Century 82.12 Fair 48 Chhauni BS 1939 juddhabir 4.13 Fair 49 Svayambhu Dallu 15th Century 1.15 Poor 50 Dallu 14th Century 3.15 Fair 51 Dallu 17th Century: 4.151'oor 52 Dailu 17th Century 5.15 Fair 53 Vhuikhel Svayambhu 1 7th Century: 9.15 Poor 54 Svayambhu 18th Century: 26.15 Fair 55 Balaju 19th Centul)' Rambahadur 3.16 Poor 56 Balajutar 19th Centu!I Machabhai Maharjan 12.16 Fair 57 Nay:abazar Ganeshthan BS 1998 Bishnukumari Shrestha 23.16 Fair 58 Sohrakhutte, Pakanajol BS 1864 Ka~ardar Bhotu Pandey: 33.16Poor 245 ::J!~t~;,:.• prr~;~:plA~&osTic.·. ~~tQ~T; 59 Sohrakhutte Pakanajol 15th Centu rz 36.16 Poor ~ 60 61 Sohrakhutte Pakanajol Pakanajol BS 1919 NS 837 Dhirjanarazan Bilekha 39.16 Fair 48.16 Fair I·~ 62 Kaldhara Pakanajol 15th Centurz Dhinnarazan Dhobi 49.16 Good 63 Kaldhara 19th Centu rz Communi!}' 51.16 Fair 64 Dhalko 1 7th Centu rz 1.17 Fair 65 Dhalko 1 7th centu rz 2.17 Fair 66 Dhalko 19th Centul}' 3.17 fair 67 Dhalko 17th Centurz Beti 4.17 Poor 68 Dhalko 19th Centul}' Tirthaman 5.17 Fair 69 Dhalko 18th Centurz 7.17Fair 70 Dhalko 20th Centurz Ananda 9.17Poor 71 Dhalko 2oth Centu '}' Tejman 10.17 Poor 72 Dhalko 19th Centul}' 11.17 Fair 73 Dhalko 20th Centul}' 12.17Fair 74 75 Dhalko Dhalko 19th Centurz 20th Centu '}' 14.17 fair 15.17fair 1 ·~ g 76 Chhetra2ati Dhalko 2oth Centurz Simhabir 26.17 fair 't: # :?§i 77 Tamsieakha 18th Centurz 4.18 Poor 78 Tamsieakha 15th Centurz 6.18 fair 79 Kzatahiti Tamsieakha 19th Centurz 7.18 Poor 80 Tamsieakha 19th Centul}' 8.18 Poor 81 Tamsieakha 18th Centurz 10.18 Fair 82 Bhurungkhel 19th Centul}' Debender Dhobi 11.18 Poor 83 Bhurungkhel 18th Centurz 12.18 Poor 84 Tamsieakha 18th Centu rz 29.18 Poor 85 Maruhiti 16th Centul}' 1.19 Good 86 Dhokatol Maruhiti 19th Centul}' 5.19 Poor 87 Damaitol 16th Centurz 20.19 Good 88 Dhokatol 16th Centurz 23.19 Good 89 Chasandotol 16th Centurz 25.19 Good 90 Banjahititol 1 7th Centu rz 28.19 Fair % 91 Bhimsenthan 16th Centurz 11.20 ll'oor I {% 92 Bhimsenthan 16th Centurz 14.20 Good -~ ~~' 93 Maru 17th Centul}' 24.20 IP'oor 14th Centul}' 16.21 Fair ?:' '"' 94 lagan Nzazamaju 95 lagan 20th Centurz 17.21 Good ~ lil 96 Sundhara BS 1885 HM Lalit Tri~ura Sundari 5.22 Fair \h Ganabahal 18th Centu rz 7.22 Poor ill 97 hl 98 Sundhara BS 1901 Gen. Mathabir Singh Thaea 19.22 Poor 99 Thamel 13th Centurz 1.29 Poor 100 Kaeutdhara lainchihan 16th Centurz 2.29 Fair 101 Kaeutdhara Lainchowr 18th Centurz 3.29 Fair 102 Golkhueakha 19th Centurz Padmanarazan 4.29 Good 103 Lainchowr 18th Centu rz Ratnaman Dhobi 6.29 Poor 104 Lainchowr 19th Centurz lal Dhobi 7.29 Fair 105 lainchowr 18th Centul}' Mahila Dhobi 8.29Good 106 lainchowr 15th Centurz 9.29 fair 107 lainchowr 18th Centurz Hari Dhobi 11.29 fair 108 Dhobidhara 16th centul}' Buddhilal 1.31 IFair 109 Dhobidhara 16th Centurz Bhaktabahadur 2.31 Poor 110 Dhobidhara 19th Centu rz .6.31 Good 111 Dillibazar 16th Centurz 1.32 Poor 112 Dillibazar 19th Centurz 2.32 Good 113 Putalisadak 18th Centurz Buddhiman 3.32 Poor 114 Putalisadak Dillibazar 19th centu '}' 4.32 Poor 115 Putalisadak 19th Centul}' 5.32 Poor 116 Dhobidhara 17th centul}' 6.32 Fair 117 Gzaneswor 17th centurz 5.33 Good 118 Gzaneswor 14th Centul}' Ganganath Joshi 12.33 Fair For Patis and Sattals: See the same hn·entory. . 246 ;-,,, ANNEX: 3 MONUMENTS AND SITES: AS PER KATHMANDU VAllEY PROTECTIVES INVENTORY S.NO. CODE NAME lOCATION GRADE INVENTORY 1. K-1 lndrayani-Luti Ajima Vishnumati Khola B 2. K-2 Bhodikha Ganesh Dhobi Chaur c 3. K-3 Saraswati Chhetrapati 4. K-4 Bhagvati Chhetrapati c 5. K-5 Krishna Chhetrapati c 6. K-6 Sweta Ganesh Chhetrapati c 7. K-7 Ram Bahal Paknajol c 8. K-8 Shankasteswari Bhagwati Thamel c 9. K-9 Than Bahi Bhagwan Bahal Thamel A 10. K-10 Agan Chok Thamel c 11. K-11 Kamuru Kamakshya Devi Thamel c 12. K-12 Mana Kamana Thamel c 13. K-13 Dakshin Kali Thamel c 14. K-14 Kwa Bahal Kwabahal B 15. K-15 Bhagvati Mandir Bhagwati Bahal c 16. K-16 Chhusya Baha jyatha To! A 17. K-17 Musya Baha jyatha Bahal A 18. K-18 Chaitya Thanhiti c 19. K-19 Nriteswar Thanhiti c 20. K-20 Swan Chhapu Ganesh Chhetrapati c 21. K-21 Gswa Baha Kusumbiyalalashi c 22. K-22 jotiya Baha jhwa baha dune 23. K-23 Biswa Karma Tanlashi 24. K-24 Ganesh Tanlashi 25. K-25 Dhoka Baha Tyauda A 26. K-26 luti Muaru Agima Dio Chhen Tyauda 27. K-27 Gambaha Naghal c 28. K-28 Srigha Baha Naghal c 29. K-29 Srigha Chaitya Naghal A 30. K-30 Nagha Baha Naghal B 31. K-31 lkhanarayan Bangemudha B 32. K-32 Ganesh Ten gal c 33. K-33 Raktakali Tan gal c 34. K-34 Wasya dyo Bangemudha 35. K-35 Nhu Baha Bangemudha c 36. K-36 Ganesh Nhayakantala 37. K-37 Nrisihgh Nhayakantala 38. K-38 Ugratara Nhayakantala c 39. K-39 Cha Baha Nhayakantala c 40. K-40 jwalaMai Tyauda c 41. K-41 Kamaladi Ganesh Dyo Chhen Tyauda 42. K-42 Dhalasiko Baha Asan c 43. K-43 Haku Baha Asan B 44. K-44 Kwothu Baha Asan 45. K-45 Krisha Balkumari B 46. K-46 Bal Kumari Balkumari 47. K-47 Tach he Baha As an B 48. K-48 Okha Baha jarunchhen c 49. K-49 Asan Baha jarunchhen c 50. K-50 Annaeurna Asan A 51. K-51 Nara):'an Asan c 52. K-52 Ganesh Asan c 53. K-53 Daru Baha Bhotahiti c 54. K-54 Ganesh Bhotahiti 55. K-55 Ajima D):'o Chhen Bhotahiti c 56. K-56 Tekan Baha Asan-Kamalashi c 57. K-57 lunchun lubun Ajima D):'o Chhen Mahabaudha c 58. K-58 Maha Bu Kacha Baha Mahabaudha B 59. K-59 Maha Bu Baha Mahabaudha c 60. K-60 Ganesh Chikanata c 61. K-61 Ganesh Dugan Bahi c 62. K-62 Dugan Bahi Bhonsiko 63. K-63 Te Baha Te Baha c 64. K-64 Shankata Mandir Te Baha c 65. K-65 Bandhu Datta Maha Bihar Te Baha c 66. K-66 D):'ochhen Te Baha c 67. K-67 Chai!):'a Te Baha c 68. K-68 Sundhara Sundhara B 69. K-69 Bhimsen Stambha Sundhara c 70. K-70 Mahadve Mandir Dharahara c 71. K-71 Krishna Mandir Dharahara c 72. K-72 Taleju Dharahara c 73. K-73 Bha~ati Dharahara c 74. K-74 Ran a Mukteswar Purano Bhansar c 75. K-75 Gana Baha Gana Baha 76. K-76 Bhote Baha Central jail c 77. K-77 Jagannath Mandir Central jail c 78. K-78 Buddha Bari On de c 79. K-79 Naral:'an On de c 80. K-80 Kunsa Bahi H):'umata c 81. K-81 Tamu Baha H):'umata c 82. K-82 Tukan Baha H):'umata B 83. K-83 Naral:'an H}:'umata c 84. K-84 lhuga Baha jaisidewal c 85. K-85 jaisi Dewal jaisidewal B 86. K-86 Ram Chandra Mandir jaisidewal c 87. K-87 Kohiti Kacha Baha Kohiti 88. K-88 Kohiti Baha Kohiti c 89. K-89 Kohiti Kohiti c 90. K-90 Takhtta Ajimi D}:'o Chhen Kohiti c 91. K-91 Yo Baha Bhimsenthan 92. K-92 Bhimsen Mandir Bhimsenthan B ~"'~ 93. K-93 Bhind):'O Hiti Bhimsenthan c ,? '4 94. K-94. Bichhe Baha Bhimsenthan c % 95. K-95 Shiva Mandir Bhimsenthan c 96. K-96 Chwasea Baha Maru Tole c 97. K-97 Maru Hiti Maru Tole B 98. K-98 Santaneswar Mahadev Maru Tole c 99. K-99 Maru Bahi Maru Tole c 100. K-100 Chivakh}:'o Chait}:'a Kankeswari c 101. K-101 Kankeswari Kankeswari A 102. K-102 Mukum Bahi Dami Tole 103. K-103 Ganesh Yatkha c ', ,,, ' ':. ~ ,0,- . HERitAd~ CO~SE~VATibN.· 104. K-104 Dhansingh Baha Yatkha 105. K-105 Yatkha Baha Yatkha c 106. K-106 Tamu Baha TamugaGalli c 107. K-107 Tamu Baha TamugaGalli 108. K-108 Nrisingh Naradevi B 109. K-109 Krishna Naradevi c 110. K-110 Uma Maheswer Naradevi c 111. K-111 Nara Devi Naradevi B 112. K-112 AkhaChhen Naradevi c 113. K-113 Namsingh Dega Tamsi~a c 114. K-114 Naradevi D}'o Chhen N}'ata~acho c 115. K-115 Bhuluka Dega Yatkha B 116. K-116 Arkhu Bahi Yatkha c 117. K-117 Kanga Ajima D}'o Chhen Yatkha c 118. K-118 Somlingeswar Mahadev Yatkha c 119. K-119 Makhan Baha Makhan Tole c 120. K-120 ltum Baha Nani ltum Baha c 121. K-121 Baku Nani ltum Baha c 122. K-122 !tum Baha ltum Baha A 123. K-123 Tara Nani ltum Baha B 124. K-124 Saraswati Nani ltum Baha c 125. K-125 Lokeswar Kilagal c 126. K-126 Chanchal Ganesh Kilagal c 127. K-127 Mahadev Mandir Kilagal c 128. K-128 Naudeha Bhedasing c 129. K-129 Machhendra Nath jana Baha A 130. K-130 Jana Baha Kel Tole A 131 K-131 Lunchun Lun Bun Ajima Kel Tole B 132. K-132 Shiva Mandir !ndra Chok c 133. K-133 Mahadev Mandir lndra Chok c 134. K-134 Akash Bhairab lndra Chok B '1 135. K-135 Shiva Mandir Rakhi Bazar c 136. K-136 Moobaha Otu c 137. K-137 Nav Durga Otu c 138. K-138 Manjusri & Nriteswar Otu c 139. K-139 lamuda Ajima D}'o Chhen Otu c 140. K-140 Khun Baha Otu A 141. K-141 Chindhan Baha Otu c 142. K-142 Tadhan Baha Otu c 143. K-143 Sawal Baha Sawal c 144. K-144 Sawal Baha Sawal c 145. K-145 P}'ukha Baha P}'ukha c 146. K-146 Mahalakshmi Bhagwati Bishal Bazar c 147. K-147 Tunchhen Baha Makhan Galli c 148. K-148 Makhan Bahi Makhan Tole c 149. K-149 Tarani Devi Mandit Makhan Tole B 150. K-150 Kalika Mandir Makhan Tole 151. K-J51 Mahendreswar Mahadev Makhan Tole c 152. K-152 Pancha Mukhi Lakshmi Nara}'an Makhan Tole c 153. K-153 Mahadev Human Dhoka c 154. K-154 Kageswar Human Dhoka c 155. K-155 Mahadev Human Dhoka c t1 0 156. K-156 Mahadev Human Dhoka c .·olfi:GNQSTic REPORT 157. K-157 Taleju Bhawani Human Dhoka A 158. K-158 Budhanil Kantha Narayan Human Dhoka c 159. K-159 Mahadev Human Dhoka c 160. K-160 Dasai Ghar Human Dhoka c 161. K-161 Moo! Chok Human Dhoka A 162. K-162 Pancha Mukhi Human Human Dhoka B 163. K-163 Nasal Chok Human Dhoka c 164. K-164 Basantapur Bhawan Human Dhoka A 165. K-165 Kantipur Bhawan Human Dhoka B 166. K-166 Bhaktpur Bhawan Human Dhoka A 167. K-167 lalitpur Bhawan Human Dhoka A 168. K-168 Lohon Chok Human Dhoka B 169. K-169 Nrising Human Dhoka B 170. K-170 Aagan Mandir Human Dhoka B 171. K-171 Mohan Chok Human Dhoka A 172. K-172 Sundari Chok Human Dhoka A 173. K-173 Human Human Dhoka c 174. K-174 jagannath Human Dhoka 175. K-175 Gopi Nath Human Dhoka 176. K-176 Mahadev Human Dhoka 177. K-177 Kal Bhairab Human Dhoka 178. K-178 Lakshmi Narayan Human Dhoka c 179. K-179 Degu Talle Mandir Human Dhoka A 180. K-180 Sweta Bhairab Human Dhoka 181. K-181 Chasin Dega Human Dhoka IB 182. K-182 Saraswati Human Dhoka c 183. K-183 Krishna Human Dhoka c 184. K-184 Taga Can Maru Tole 185. K-185 layaku Bahi Maru Tole c 186. K-186 Nava Gogini Maru Tole B 187. K-187 Bhagvati Maru Tole A 188. K-188 Kumari Maru Tole A 189. K-189 Narayan Maru Tole B 190. K-190 Joshi Agan Maru Tole B 191. K-191 Laju Dega Maru Tole B 192. K-192 Garud Narayan Maru Tole B 193. K-193 Ashok Binyak Maru Tole B 194. K-194 Durga MaruTole c 195. K-195 Agan Dyo MaruTole c 196. K-196 Shiva Ling Maru Tole B 197. K-197 Kashtha Mandap Maru Tole A 198. K-198 Mahadev Maru Tole B 199. K-199 Silyan Sata MaruTole B 200. K-200 Dhansa Maru Tole A 201. K-201 Bimaleswar Mahadev MaruTole c 202. K-202 Naryan MaruTole B . I 203. 204. 205. K-203 K-204 K-205 Sikhonmu Baha Kumari Baha Kumari Dyo Chhen Maru Tole Basantapur Basantapur B A A I I ~ 206. K-206 Bania Baha Basantapur 207. K-207 Saraswati Basantapur 208. K-208 Aaagan Dega Basantapur 209. K-209 jho Chhen Baha jhoChhen 250 210. K-210 Na Bahi Na Bahi B 211. K-211 Na Bacha Na Bahi c 212. K-212 Watum Baha Jorganesh c 213. K-213 jorganesh Jorganesh c 214. K-214 Nriteswar Jorganesh c 215. K-215 Nhuchhen Baha jorganesh B 216. K-216 Twake Baha Om Baha c ~ 217. K-217 Guva Baha Om Baha R '~ 218. K-218 Mim Nani Om Baha c 219. K-219 Biswakarma Baha Om Baha c 220. K-220 Om Baha Om Baha c 221. K-221 Punchhen Baha Om Baha c 222. K-222 Ratna~ur Maha Bihar Ganchenani 223. K-223 Buddha Kanti Maha Bihar Ganchenani 224. K-224 Bhon Baha Om Baha c 225. K-225 Thana Baha Chikan Mugal c 226. K-226 Nara}:'an Chikan Mugal c 227. K-227 joreswar Chikan Mugal 228. K-228 Adko Nara}:'an Chikan Mugal B 229. K-229 Hari Shankar Chikan Mugal c 230. K-230 Bajra Jogini Chikan Mugal c 231. K-231 Nhu Baha Chikan Mugal c 232. K-232 lakhe Nani Maji~at c 233. K-233 Mikha Baha Manjeswari c 234. K-234 J}:'a Baha J}:'a Baha c 235. K-235 Manjesware Manjeswari B 236. K-236 Sho Baha Yangai-Manjeswari c 237. K-237 Yanga Hiti Yangal A 238. K-238 lku Baha Yangal B 239. K-239 Chaitan}:'a Maha Bihar J}:'a Baha 240. K-240 Khalachhen Baha lagan B 241. K-241 Jog Baha lagan 242. K-242 Wanta Baha lagan c 243. K-243 Lagan Baha lagan c 244. K-244 Machhendra Nath lagan c 245. K-245 Nha}:'akan Bahi Lagan c 246. K-246 Chwakan Bahi lagan c 247. K-247 Ta Baha lagan c 248. K-248 Yata Baha Go~hale c 249. K-249 Bhagwati Go~hale c 250. K-250 Na Baha Go~hale c 251 K-251 Pikha Baha Brahma Tol c 252. K-252 Bare Nani Musum Baha c 253. K-253 Bhala Nani Musum Baha c 254. K-254 Musum Baha Musum Baha c 255. K-255 Musum Baha Musum Baha c 256. K-256 Ohan Chakra Baha Musum Baha s c ,~~a~::t..Z<::;;...ts,,"','.·"'£::, .251 , , .CITY ,··,):~; ><::, ~~IAG~G,STIC REPORT · · ENDNOTES HMG, Dept. of HBPP, Kathmandu Valley - Preservation of Physical Environment and Cultural Heritage- A Protective Inventory, Volume I & II, 1975. 2 Jamieson, Walter, The Promotion of Culture and History in the APEC Region, APEC Seminar, Manila, June 2000. 3 Schafer, Paul D., Culture: Beacon of the Future, Twickenham, Adamentine Press Limited, 1988. 4 Although academic doubts for lack of 'authentic archeological evidence' (cf. Shrestha, C. B., et. el., The Historic Cities of Asia Kathmandu, 1986, CNAS, pp.8) have been expressed, nomenclature studies prove that Kirata settlements called Yambi, Jama, Lanjagvala, Gita etc. were located in the area prior to the founding of the Lichchhavi settlement of Daxinakoligrama (ref. Tiwari, S. R., The Pattern of Settlements in Kathmandu Valley in Ancient Nepal, unpublished dissertation, TU, 1995). 5 Now called Hadigaon, for details see Tiwari, S. R., The Brick and The Bull, Himal, 2000. 6 Also, Pant, N., Yangal Yambuvisayama Kehi Vichar, Issue. 62, Madan Puraskar Guthi, B.S. 2031. 7 The exclusion relate to later period readjustment of town boundaries. During the mid- Malla period, Kathmandu was possibly walled in (ref. Slusser, NM, Vol II, map 7) to enclose the dense settlement areas only. See also Oldfield, H.A., Sketches from Nepal, Cosmo, 1974, pp. 95. 8 Bajracharya, G., Hanumandhoka Rajadarabara, CNAS, B.S. 2033, pp.l5-l6. 9 Shrestha, C. B., et. el., The Historic Cities of Asia Kathmandu, 1986, CNAS, pp.31. 10 J aat is erroneously translated as caste often, but the true intent of jaat is a reference to family trade ('jaat' means 'born into it') and it was independent of religious faiths. 11 Pradhan, Bhuvanlal, "Indrachowldm Ghada" in Nepalko ltihash ra Samskritiko ek Pakshya, Royal Nepal Academy, 1998. pp. 131-137. 12 The Kirata area appears fully defined by the dyochhens ofKankeswori and ofSwetakali on the west and dyochhen of Bhadrakali in the east. 13 Given that Lichchhavis had imposed tax on animals for sacrifice (Malla-kara), go-yuddha festival might have involved bull sacrifice, which was usual prior to Aryan domination. Sacrificial animal was possibly changed to a he-buffalo later. Kathmandu used to have a gory buffalo sacrifice festival called Bhakk:ulai Ran go Dine, until it was discontinued about a hundred years ago by a royal order. 14 The annual day of the Gorakhanatha ofKasthamandapa falls on the concluding day of the Seto-Matsendranath festival and rituals provide a tenuous link. 15 The site now called Te-bahal was called Tedo-vihara in 1145 AD. This is the same area of Tvedya-gram (sic. Vidya-gram), where Lichchhavi king Sivadeva II had set up Sivadevesvora, a Saiva deity, by 695 AD. A large number of Lichchhavi Chaityas can be seen at Te-bahal till today. 16 Locke, J. Buddhist Monasteries of Nepal, Sahayogi, 1985. pp. 254. 17 Ikha Narayana ofBangemuda looks too far for Daxinakoligrama. 18 As per Locke, ibid. 19 HMG, Dept. of HBPP, Kathmandu Valley - Preservation of Physical Environment and Cultural Heritage- A Protective Inventory, Volume I & II, 1975. 20 Kathmandu Nagarko Inventry (In Nepali) 21 Taken out of Patros (calendars) of the past one hundred years from Madan Pustakalaya, Lalitpur. 22 Oldfield, H. A., Sketches from Nepal. 252 '.:"" ,, HERITAGE ,~QNSERVATION 23 NCSIP, Regulating Growth: Kathmandu Valley, Annex 5, pp. 13. 24 Ibid. pp. 10-12. Also see for details. 25 NCSIP, Amatya, S. in Regulating Growth: Kathmandu Valley, Culture and Heritage Annex 5, writes, "whether it has been endorsed by HMG is not known." 26 UNESCO, Pollaco, J.C., Development of Cultural Tourism, 1968. 27 Bundestelle Fur Entwicklungshilfe, Nepal Tourism Master Plan, 1972. 28 A large scale project prepared by Bundestelle Fur Entwicklungshilfe for Bhaktapur has been successfully completed. 29 UNDP, Kastarlak, B. I., 'Environmental and Tourism Development Planning of the Kathmandu Valley and other Major Urban Centers ofNepal', (phase I report), 1974. 30 Cultural transformation process should not be a problem of cultural conservation. If 'transformation' is happening, it might actually be positive to cultural conservation and development strategy. 31 Chapter 5, Priority Issues, Page 16-18. 32 UNESCO-HMG, Kathmandu Valley- the Preservation of Physical Environment and Cultural Heritage- a Protective Inventory. 33 Theravada and Tibetan Mahayana incursions are common in many 'Bajrayana' institutions. 34 Presentation by Mr. P.S. Joshi, CDS launch, July 9, Kathmandu. 35 Based on estimates ofKV Strategy Plan, 2020. 36 This section is largely based on the outcomes of the First CDS Stakeholder Workshop held on, 25th August, 2000. 37 UDLE, LUDIC: Urban Environmental Guidelines for Nepal, 1992, UDLE, Kathmandu. 38 HMG, Ministry of Works and Transport, Kathmandu Valley Town Development Planning Team. COMMUNITY DEVELOPMENT Shambhu Rai COMMUNITY DEVElOPMENT SPECIAliST UST Of ABBREVIATIONS CD Community Development CDS City Development Strategy CWIN Child Workers in Nepal Concerned Center DDC District Development Committee DH Department Head EC European Community FY Fiscal Year GIS Geographic Information Section GO Government Organization HH Households HMG/N His Majesty's Government of Nepal KMC Kathmandu Metropolitan City KVMP Kathmandu Valley Mapping Program KVRMP Kathmandu Valley Earthquake Risk Management Project INGO International Non-government Organization MIS Management Information Center MLD Ministry of Local Development MPLD Ministry of Panchayat and Local Development NA Not Available NSET Nepal Society for Earthquake Technology NGO Non-government Organization swcc Social Welfare Coordination Council SWD Social Welfare Department swoc Strengths, Weaknesses, Opportunities and Threats UNDP United Nations Development Program UNICEF United Nations Children's Fund VDC Village Development Committee WHO World Health Organization WOREC Women's Rehabilitation Center 256 TABLE OF CONTENTS List of Abbreviations 256 Table of Contents 257 List of Tables 258 8. COMMUNITY DEVELOPMENT 259 8. 1 Introduction 259 8.2 Community Development In Kathmandu 260 8.3 Objectives of City Development Strategy 261 8.3.1 Objectives of City Development Strategy for KMC 261 8.3.2 Methodology 261 8.3.3 Community Development in the Context of CDS 262 8.4 Pertaining Issues of CD In Kathmandu Valley 262 8.4.1 Population Growth 262 8.4.2 Centralized Opportunities 262 8.4.3 Income, Poverty and Unemployment 263 8.4.4 Education and Public Health 263 8.4.5 Urban Utilities and Services 263 8.4.6 Road and Transportation 264 8.4.7 Environment and Pollution 264 8.4.8 Women and Children 264 8.4.9 Social Security and Safety 265 8.5 Community Development in KMC 265 8.5.1 Social Welfare Department 266 8.6 Information and Communication Department 267 8.6.1 Media and FM Section 267 8.6.2 Information Section 267 8.6.3 GIS Section 267 8.7 Organizations Involved in CD Program 267 8.7.1 The Government 268 8.7.2 INGOs and NGOs 268 8.7.3 Private Sector 268 8.8 Plans and Policy Framework of the Government 269 8.8.1 The Ninth Five Year Plan (1998- 2002) 269 8.8.2 Local Self-governance Act (1999) 270 8.8.3 Work, Responsibility and Authority of the Municipality 270 8.8.4 Issues Related to the Policies and Plans 273 8.9 Swot Analysis of KMC 274 8.10 Vision, Mission And Objectives of CD Works 275 8.11 Framework Guidelines 275 8.11.1 Area and Scope for Intervention in CD Works 275 8.11.2 Networking with the Concerned Partner Organizations 276 8.11.3 Documentation 276 8.11.4 Structural Adjustment 276 8.11.5 Human and Financial Resources 276 8.12 Monitoring And Evaluation 276 8.13 Summary Conclusion 276 Annex- 1 Stakeholders' Map 279 Annex- 2 Persons Consulted 280 Bibliography 281 LIST OF TABLES Table I : Present Status of the NGOs and INGOs Affiliated With the Social Welfare Council. Table 2: Comparison of Some Selected Socio-economic Development Indicators for the Whole Nation and KMC (Planned for 9th Five Year Plan Period Within the Rarige of 20 Years Long-term Planning Perspectives) Table 3: Community Development - Issues and Implications .258 Community Development The interdependent characteristics of social organism automatically demand collective efforts from all individual members for their own survival and growth. In general the community is defined as the groupls ofpeople living in specific geographical condition by carrying out similar pattern of livelihood endeavors with frequent inter-actions among themselves. Community development initiatives could be stated as collective efforts of a certain group/s ofpeople to satisfY their needls. Communities being social entities also connote all spheres of human endeavors for their own survival and growth. Besides, life sustaining activities or fumllment of basic needs, it also encompasses the cultural and political dimensions of the social structure. Thus, the community development aspects cannot be dealt in total isolation ofother aspects, which concerns the people living within the given environment. 8. 1 INTRODUCTION into a more individualistic pattern. Most of the populace belonging to the new generation has adapted to a new . ommunities are categorized into two broad way of life by showing indifference towards the perspectives: the urban and the rural. Currently traditional community development approach especially the majority of the people tend to consider in comparison to their rural counterparts. However, such community development as an activity primarily indigenous or traditional community development focusing on the rural areas. However, the common practices can still be observed in various forms at the people fail to observe many of the complexity of the local level (guthis, clubs and various users' groups human endeavor that also takes place in the urban cities. formed at wards or tole). The very nature of the users If someone goes for an in-depth analysis, he/she could groups constrains them from undertaking any big feel the strong community development initiatives taking collective projects. place within the complex social structure of the metropolitan cities at various local levels. The urbanization process has been observed as a global phenomenon, which has continued to grow in a much For the past 50 years community development has drawn faster pace for the past few decades. This process has much attention within the development arena. For the brought much affluence to the city dwellers on the one survival and growth ofhumankind, the sense of community hand and at the same time it has also adversely affected and its development has been recognized as a great force. the socio-cultural pattern of the urban communities The growth in the size of population automatically gears residing within the Kathmandu valley. Humans being up the process of urbanization within any given rural society. the central focal point of development endeavor have The fast pace of scientific invention and extension of experienced and adapted to the changing environment modem technologies in the field of communication, which has brought both adverse and positive effects in transportation, industry and commerce has introduced many their living styles. new opportunities and comforts to the human life. This phenomenon has also brought deterioration in the social In the context of the given City Development Strategy structure and its value system. (CDS), an in depth assessment on the historical background of the community development aspect and Due to the competitive socio-economic nature of the its changing modalities in line with the external and urban dwellers, their life style has gradually transformed internal influences becomes necessary CITY DIAGNOSTIC REPORT 8.2 COMMUNITY DEVELOPMENT development approach to preserve the cultural and IN KATHMANDU religious monuments. Similarly, the Chhut Guthis, which were formed under the collective efforts of The Kirats ruled Kathmandu valley till the first century certain communities to initiate different types of AD.They were followed by the Lichhivis and Malia community development activities, hails as a great kings. The Lichhivi King, Guna Kamdev built achievement. Besides, Niji Guthis initiated by the then assimilated and restructured the various settlements of affluent and powerful elites have their own hallmark Kathmandu in the 11th century AD and established it as in the historical perspective of community his capital city. Since the medieval period, it has development. In spite of the deterioration in the remained as one of the main hubs of socio-cultural and traditional values and practices of the Guthis due to economic activities in the Himalayan region. Following the influences of the modern form of community the division of his kingdom among his three sons by development approach, they are still practiced within Yaksha Malia in 1482 AD the three primary cities of certain communities. The unspoiled continuity in the Kathmandu valley, i.e. Kathmandu, Bhaktapur and practice of the Shi Guthis (cremation of the dead body) Lalitpur came to be established as separate city-states. among ce1iain Newar and Jyapu communities ean be Kathmandu city became the capital city of Nepal in late noted as an example of the strong community l8'h century after the Gurkha King Prithivi Narayan Shah development activities among these traditional groups. conquered it ( 1769 AD), and united all the petty states of Nepal into one nation. The involvement of the early kings of the Shaha dynasty in the reformation of social welfare and community During the regime of the Lichhivi and Malia kings, development aspects is very low, as the period was Kathmandu valley prospered in its art and architecture, primarily directed towards the unification of modem Nepal. While tracing the social reform and community development activities, one encounters a certain degree of such activities initiated during the Rana regime (1846- 1950). Abolition of the Sati Pratha, witchcraft and slavery along with the establishment of libraries, schools and colleges, printing press, electricity and rope lines are a few examples of the activities undertaken to improve the socio-cultural aspects of the Nepalese people. However, the modern form of community development initiatives can be traced to the last phase of the Rana regime, where initiation was taken from the commoners to form social welfare groups like Charkha Pracharak Sanstha (1937) and Paropakar Ausadhalaya (1947) respectively. During the Panchayat era ( 1962- 1989), in spite culture and commerce. It flourished as a commercial of the promulgation of an organization establishment center as it lay along the trade route linking the northern act in 1959, very few social welfare organizations were high Tibetan (China) plateau and the southern Gangetic established under the direct supervision of the plain of India. Throughout, its long history it has been administrative body. It was recorded that till 1989 only observed that the populace of Kathmandu valley had 191 NGOs were registered in the country as a whole. been practicing community development in different The restoration of democracy in 1990 has been a forms for a long time. The establishment of different breakthrough in establishing various forms ofNGOs in forms of Guthis is a good indication of the measures the country, roughly estimated to exceed 15000 at taken to initiate and preserve various historical present. monuments and cultural heritage along with fulfillment of community requirements through collective efforts. At present, Kathmandu valley being the capital city still The Raj Guthis initiated under the patronage of the remains as the major administrative, business and ruling kings still has a remarkable form of community commercial center along with educational, health and 260 - ,'/ COMMUNITY DEVELOPMENT environment, socio-cultural and economic environment as well administrative functions is needed. The CDS is expected to provide an overall framework to guide and synchronize KMC's future actions, which will help KMC to make judicious use of its limited resources by investing in key priority sectors linked to the city's long term development strategy. One of the key underlying themes of the CDS process is the ownership and participation of stakeholders. As the lead organization, KMC is expected to take ownership of the CDS and ensure that all concerned stakeholders of the city. participate in the formulation of the development other opportunities. The opening and introduction of strategies. It is expected that the prime stakeholders' modern services of scientific technologies and facilities will identify a common vision for the city as well as during the last three decades, has brought tremendous the actions required to help the city proceed towards change in all spheres of urban life in Kathmandu valley. this vision. At the same time it is also expected that This has certainly created many opportunities for the city the strategies proposed in the CDS will be directed dwellers and other citizens ofNepal. The new modalities more, towards the doable projects which have a more in community development approach have been immediate effect. introduced in various forms. Introduction of new concepts and models to initiate community development activities through collective effort has been geared towards the 8.3.2 Methodology NGO sectors. Involvement of many international NGOs along with bilateral and multilateral agencies has provided While developing the CDS for KMC, the focus was further impetus to community development initiatives in directed to address three basic questions: what is the multi dimensional activities. Different users' groups and present situation of the city? What is the situation it committees have overtaken the community development aspires to achieve in the future? and what actions are activities by replacing the traditional roles ofGuthis. Both required to reach the desired future condition or goal? the public and private sectors have also come forward, as The first question primarily postulates the past, present a whole, to raise and protect their interests by placing and future development trends of the city. Based on the pressure on the government available documents an assessment was made of its strengths and we"aknesses and the opportunities and limitations. The second question deals with the 8.3 OBJECTIVES Of CITY structuring of a collective common vision for the city DEVELOPMENT STRATEGY while the third question deals with the strategy to bridge the gap between the current condition and the envisioned 8.3.1 Objectives of City future of the city. Development Strategy for KMC The methodology for the preparation of the CDS for The city development strategy (CDS) for KMC is KMC more or less attempts to follow the above sequence expected to enhance the city's livability, competitiveness, of analyzing the city's development trends, identifying bankability, govemance and management capacity. In a common vision and formulating the development the increasing global market economy, these factors are strategy for the city. Because of the limited time and considered as crucial indicators to measure the success resources the analysis of the city's urban sector will be and failure of the urbanization process. Hence, in based on the review of existing literatures, previous achieving the objectives of the CDS, an integrated studies and interviews with concerned stakeholders and approach by incorporating the smooth planning and experts. The city diagnosis is expected to identify the implementation process of various components to key issues as well as the opportunities and limitations improve the city's infrastructures, natural and built for future actions. 8.3.3 Community Development in should be taken as an integral part of the community the Context of CDS development approach. The central theme of all CDS activities is peoples' participation in all the development components. 8.4.1 Population Growth Therefore, the community development aspects need to be dealt within a holistic approach by incorporating Encompassing an area of about 667-sq. km., Kathmandu all sectors related to development, i. e., physical valley provides shelter to about 1.5 million people. The infrastructure and facilities, economic, environment population census of 1991 had shown that altogether and socio-cultural aspects of the city. In the context of I ,064,899 people resided in the bowl shaped Kathmandu the CDS for KMC, community development has been valley with an annual growth rate of 3.9 percent. Out of conceived as one of the prime sectors to be addressed the total population 56 percent were city dwellers by the CDS. Therefore, in the current study, community belonging to Kathmandu, Lalitpur and Bhaktapur. In 1991, development has been dealt in a much broader it was estimated that the permanent population size of perspective by assessing the overall concept and Katmandu metropolis city alone stood at 421, 258 with community development trends in the country as a an annual growth rate of 6 percent, which was one of the whole. Similarly, the effectiveness or limitations of past highest in the South-East Asia region. There were as well as present plans, regulations and agency altogether 82076 households within the 35 wards ofKMC. involvement has been analyzed within the same The average population density ofKMC was 84-persons/ context. The city's economy, infrastructure, per hectare. Besides this, it was estimated that there were transportation, institutions etc. have also been dealt about 50000 floating population in the city during daytime within the context of community development from neighboring cities. It has been projected that within perspectives. This has helped to accord equal the prevailing situation the population of Kathmandu recognition to all the different urban sectors ofthe city, valley will reach to 20 million and will be double by the which otherwise would probably have been dealt with, year 2020 AD and 2030 AD respectively. Introduction of in a more cursory manner. Thus, this study on the appropriated measures to check the growing population community development part of KMC should be has become one of the priority sectors for the KMC. considered as a crosscutting sector while dealing with other sectorial programs. 8.4.2 Centralized Opportunities 8.4 PERTAINING ISSUES OF CD The centralized system of the government and its IN KATHMANDU VALLEY administrative bodies within the capital city has further attracted more people and opportunities in the In the regime of free market economy the centralized Kathmandu valley. Presently, three District Development opportunities and democratic practices have brought Committees, five municipalities and 99 Village both affluence and freedom to Kathmandu city. To Development Committees are located within Kathmandu exploit these opportunities Kathmandu valley has had valley. Apart from these there are several ministries and an influx of permanent and temporary migrants to the more than 15 associated Departments under the city. To survive within the environment of modern Government ofNepal, which functions within the valley. culture, it has created competitiveness among the people ·by making them more individualistic and work oriented. With the opening of internal and international air and At the same time it has also brought some adverse effects surface transportation system, Kathmandu valley has on the overall social structure and environment of the transformed itself into a tourism destination for both valley. The materialistic and human relationship internal and external tourists. The centralized power approach has superceded the core value of collective structure has also attracted various organizations and efforts of the communities and deteriorated considerably, ventures in the capital city. Decentralized power structure the philosophy and principle of the community along with the relocation of economic opportunities to development process. As many of the issues pertaining alternative centers may mitigate further encroachment to the modem Kathmandu city can be identified as being in the valley and reduce the multidimensional man made different in nature, their overall impact on the people urban hazards. 8.4.3 Income, Poverty and periods, had estimated the average literacy rate Unemployment nationwide to be 48 percent. The total literacy rate for the urban population of Kathmandu valley in 1995-96 The recent publication of UNDP report on Human was 78 percent with 88 percent and 67.3 percent for Resource Development has identified that around 52 males and females respectively. The school enrollment percent of Nepalese household families fall under the of children for primary and secondary schools was 86.4 poverty line. The Ninth Five-Year Plan book ( 1998- and 86.8 percent respectively. 2002) has projected only 41 percent of households' families under poverty line. The aforementioned figures Fifteen government and 21 private hospitals along with clearly indicate the grim picture of poverty and the numerous polyclinics and nursing homes provide health number of increasing poor people in the country. For services and health related facilities to the public in KMC 35.6 percent of the total population has been Kathmandu where the hospital beds available were 197I marked under the poverty line. 1000 person. The expenditure on medical care stood at Rs. 455/ per household. In spite of the high number of Availability of many economic opportunities has health facilities available in the capital city, they are out brought affluence to the city dweller of Kathmandu of reach of a large segment of the people belonging to valley. The average family size was 5.07 persons/ the deprived communities. Many health hazards have households while the average per capita income of city sprung up due to the degradation of the environment dwellers exceeded the average Nepalese per capita and lack of food hygiene. income of US $ 210.00. In spite of the high level of per capita income the per capita expenditure of the city dwellers exceeded the level of income. As per the 8.4.5 Urban Utilities and Services Household Budget Survey carried out by the Nepal Rastra Bank in 1995 - 96, the urban citizens of The easy air and road transportation system for both Kathmandu valley spent most of their income on internal and external services along with new services and facilities, food and housing. opportunities of the 70s and 80s attracted more migrants to Kathmandu valley. This new phenomenon brought The available records on the employment situation affluence to the valley, however, the unplanned use of within the urban cities of Kathmandu valley shows that land and housing system also brought many problems above 50 percent are employed in different sectors. to the city. Shortage of drinking water, electricity, Besides, this another one fourth of the urban population congestion of roads, unmanaged sewerage system along are self-employed and there is less than one fifth of the with the solid waste management problem has become population who are unpaid family workers. KMC has hazardous both to human health and the environment. projected only 7.8 percent of its population under the unemployed category. Absorption oflabor force is 76.5 It has been estimated that 99 percent of the houses are percent in the tertiary, followed by 12 percent in the connected with electricity and 88 percent household has secondary and 1. 7 percent in the primary sectors respectively. 8.4.4 Education and Public Health Being the capital city of the country, Kathmandu has been provided educational and health facilities for a long period. The establishment ofTribhuvan University (the only university of Nepal till 1990) for acquiring higher education has also pulled considerable benefits to Kathmandu valley. Presently within KMC, it has been recorded that there are 23 colleges, 98 higher and 50 lower secondary schools along with 236 primary and 110 pre-primary schools. The National Planning Commission, at the end of the Eight Five-Year Plan CIT'(, DIAGNOSTIQ REPORT. access to telephone lines. Similarly, around 67 percent become a collective force in deteriorating the households are connected with the drinking water supply environment of the valley. It has been recorded that system and 42 percent households have access to the between the 80s and 90s there was a 200 percent increase sewage system. The city metropolitan office collects 75 in the establishment of brick kilns. This has resulted in percent of the solid waste generated in the Kathmandu the air pollution of the city exceeding the international valley (about 600-m3/ day). standard (prepared by WHO guidelines). It has been estimated that each year about 20,000 people including Similarly, the demand and supply along with the quality 5,000 children fall victim to bronchitis and asthma of drinking water shows a grim picture of the respectively, which is a loss of Rs. 200 millions in Kathmandu valley. The demand for drinking water in monitory terms. Similarly, due to high air pollution the the valley was estimated to reach 213 MLD (million liters visibility in Kathmandu valley has also dropped per day) while the current supply of NWSC estimated tremendously. In the 70s the visibility of Kathmandu to be 120 MLD during the wet season and only 80 MLD valley was 115 days during the months of November- during the dry season. February, which has now dropped to 20 days. A survey carried out to measure the quality of water 8.4.6 Road and Transportation system of Kathmandu valley shows that most of the water body in the valley has a high degree of coliform counts At present, Kathmandu valley has altogether 995 km (bacterial contamination), which is a health hazard to (401 km pitched and 594 km rough road) of road humans. The unplanned utilization of ground water has network, which is about 10 percent of the road available lead to a fast decrease in the ground water level, which for the whole country. In mid December 1999 the number is estimated at 2.5 m per year. of total vehicles was recorded at 243,017 and out of it 50 percent operated within the Kathmandu valley. The present trend in vehicle importation has been recorded 8.4.8 Women and Children as 13 percent/year, which almost chokes the available capacity of the roads. The dawn of the democracy system in Nepal (1990) has allowed various public forums, NGOs and civic societies to raise their voices demanding basic human, women and 8.4.7 Environment and Pollution children rights. In spite of much publicity and advertisement on those issues, there have been poor results The ever increasing trends in the population along with and responses from the mass as a majority of them show other infrastructure and services in Kathmandu valley indifference towards these issues. The government line has a negative effect on the total environmental system. ministries and departments have always tried to shift the Increase in the vehicle fleets and other industries; i.e., responsibilities to the NGOs and lNGOs sector. In the brick kilns, cement and plastic factories, hotels and absence of enough resources and other prevailing restaurants, nursing homes and street markets have difficulties, no serious research has been carried out so far on the pertinent social issues like gender, domestic violence, street children, child labor, drug addiction and the conditions of senior citizens. Various studies carried out by the NGO sector indicates that girl trafficking is one of the biggest women related issues inN epal. It has been estimated that there are around 200 thousand women and girls who have been trafficked and forced into prostitution in the Indian red-light districts. Among them 20 percent were under the age of 14 when they were sold. Similarly, it is also estimated that each year five to seven thousand girls are being trafficked to India from Nepal. The study carried out by UNICEF in 1997 has stated that though sex trade is illegal in 164 to a range of 500 - 800 in the valley. Similarly, a household survey report carried out by WOREC has also found that 70 percent households involve children as domestic servants and a greater proportion of them are victims of various forms of exploitations. 8.4.9 Social Security and Safety It has been observed that the introduction and availability of modern technologies in the urban areas not only automatically generates more opportunities, it will also affect the life of the city people in many ways. To cater for many of the services and goods to sustain the basic Nepal, it was found that more than 5,000 women needs, urbanites have to work harder than their rural prostitutes operated within the Kathmandu valley. The counterparts. People have to work under time pressure, opening of many new massage centers along with dance which disintegrates the social and family structure of restaurants within the very heart of the city has also come many people. A collapse in the socio-cultural norms and under severe criticism for promoting illegal sex trade in value system further leads to an increase in drug abuse, the valley. A majority of the city dwellers have developed alcoholism, divorce and vandalism. a tendency to accept these social changes as a part of the modem society and have shown indifference toward An article recently published in the Himal newsmagazine the issue. Most of the time it is regarded as the part of showed that within a span of 10 months in the FY 2055/ government's responsibility to control such 056, altogether 518 cases of vandalism were registered developments. in the valley. Similarly, the magazine had also reported that within the same time period 23 7 divorce cases were The situation analysis report 1996 on children and filed in the valley courts. Besides, these petty thefts and women of Nepal carried out by UNICEF has indicated crimes Kathmandu valley also faced the challenge of that there were about 28,000 street children living in the severe social disorder in the form of vehicular accidents, urban cities of Nepal. Kathmandu being the capital city murder, robbery and suicidal cases in increasing with relatively better opportunities have been facing numbers. Thus, in trying to improve the status of increasing, concentration of these street children. A "livability", the issue of public safety and security also study carried out by the CWIN ( 1996) revealed that the needs to be tackled on a priority basis. number of the street children, employed was only 1200 in the Kathmandu valley. The present estimation shows that the number of offthe street children has come down 8.5 COMMUNITY DEVElOPMENT IN KMC In spite of the increasing unfavorable conditions and challenges of city life, Kathmandu valley is still vibrant and is trying to preserve many of its socio- cultural norms and values. One can observe very distinctly that many forms of traditional and heritage pattern of community development initiatives are performed at various levels. Primarily, the local clubs, guthis, civic society, NGOs and INGOs along with users groups and committees are coming forward to carry out such activities. However, it has been observed that the lack of a systematic approach accentuated by problems of resource and coordination has constrained KMC from keeping proper records of these local events. ' ' ' , .,, ' CITY DIAGNOSTIC REPORT "'L\;_:-~:v:c Within its present organizational structure, KMC has public health, etc. Many activities related to CD, i. e., initiated the following community development activities environment, solid waste management, slums and under its Social Welfare Department: squatters, street children, women and children rights, equity (Gender), impartation of skills for income generating activities, etc are also being implemented 8.5.1 Social Welfare Department through local initiative. Under this broad section the involvement of many local users' groups, NGOs and Presently under the existing organizational structure of INGOs can be identified. The absence of systematic KMC, 12 departments function to carry out various recording and coordination among KMC, wards, users' community development activities (refer Annex- b. for groups, NGOs and INGOs can be observed as the main the organizational structure of KMC). The Social constraint. An awareness campaign on public health and Welfare Department, which was established in 1996, is operation of public health clinics in 17 ward committees primarily responsible for dealing with community in joint collaboration with the Public Health Department development activities. The multi dimensional aspects can be taken as another benchmark of CD activi1y. of the community development sector are further separated under different units like public health, public security, environment, communication and heritage, etc. 8.5.1.2 Education and Sports Section: Different sections are responsible for looking after these sectors. The Social Welfare Department operates its Kathmandu being the capital city of the country is also activities under three broad sections: the prime educational and sport center with well established facilities. The available record shows that KMC has a very low illiterate population (11.8%). The 8.5.1.1 Community Development Section: average school enrollment of children is 86.6% for the KMC. It could be observed that under the local initiatives KMC is involved in different types of CD activities and support from various NGOs and INGOs, many of through its various departments. Although the the ward committees 'Conduct their own adult literacy community development program has been one of the classes. Similarly, many NGO's working for children prime components under the SWD, very few CD and women groups have also initiated their own activities were being implemented under this particular educational programs at various levels and capacities. department. It could be observed that there was still KMC has also initiated 50 children education program ambiguity in the CD process and concepts within KMC. with the support of UNICEF. There is CD activities also being implemented under other departments, i. e., infrastructure development, Similarly, the Nepal Sports Council being the responsible preservation of heritage and culture, education and organization for promoting various sport events, the role of KMC remains as one of a facilitating partner organization. The establishment of many national sport associations and local clubs to organize and perform different sports within the vicinity of the metropolis has also reduced the direct involvement ofKMC in the arena of sports. 8.5.1.3 Disaster Management Section.~ Kathmandu valley situated in the lap of the Himalayan range is determined to lie in the active seismic zone. In the past, Nepal has experienced many destructive earthquakes. The seismic record of the region dating back to 1255 AD suggests that high rector scale earthquakes shake Nepal approximately at 75 years interval. Kathmandu valley has experienced heavy destruction from large-scale earthquakes in the past: 266 public awareness campaign through information dissemination and strengthen the work efficiency of KMC departments by improving its overall information system. 8.6.1 Media and FM Section: To disseminate vital information related on issues of public concern along with the regular activities of KMC is a prime requirement for initiating a good governance system. To accumulate support from the mass populace, subordinating sectors and stakeholders, transparent two-way communication 12:59, 1407; 1680, 1809, 1833, 1866 and 1934 AD. The becomes an integral part of institution development last earthquake, which shook Kathmandu valley in 1934, process. To achieve the aforementioned objectives, KMC alone, destroyed 20 percent and damaged 40 percent of has started its own Metro FM radio channel and the valley's building stock and took 4,296 lives. A study newsletter publication under the Media and FM Section. called the Kathmandu Valley Earthquake Risk Management Project (KVERMP) by the Nepal Society for Earthquake Technology - Nepal (NSET) and 8.6.2 Information Section: GeoHazard International has estimated that if an earthquake with a similar magnitude of 1934 takes place The Information Section primarily aims to upgrade its today, it will damage 60 percent of the total building management information system (MIS), which is the structure in Kathmandu valley. In spite of the constant basic foundation for initiating a systematic planning threat Kathmandu has not observed a significant natural process within KMC. Research and dissemination of disaster for many decades. Due to the lack of experience information through various communication media and of natural calamities or disasters many of the city establishment of Internet system are some of its dwellers, belonging primarily to the new generation, do prominent activities. not treat it as a burning issue. TI1e old structured houses with narrow Janes and unplanned 8.6.3 GIS Section: urban infrastructures could become a trap for mass destruction in any earthquake movement. The Disaster The Geographical Infonnation Section was created to Management Section has undertaken various activities as develop and update the physical resource maps of the a part of its disaster prevention and management course. metropolis. The Kathmandu Valley Mapping Progrannne Public awareness creation through training, workshops and (KVMP) was initiated in 1998 under the grant assistance publications along with initiating surveys for GIS mapping of European Community (EC). are some of the commendable efforts. However there is a need to conduct more courses on disaster prevention and management at the ward/ community level. 8.7 ORGANIZATIONS INVOLVED IN CD PROGRAM 8 . 6 INfORMATION AND As discussed earlier, the community development COMMUNICATION DEPARTMENT process, being an integral part ofthe larger social system, encompasses all activities of human endeavors. The Communication being one of the crucial parts of our forms of various service deliveries to sustain the social structure plays an important role for a healthy livelihood programs and progress of the mass populace growth of an organization. The information and are the prime concerns of many organizations. In a Communication Department, which was initiated in broader term such organizations could be placed into 1998 with three sections, primarily aims to improve the three categories. 8.7.1 The Government 8.7.2 INGOs and NGOs The prime concern of the government remains to During the Panchayat period, due to its closed political maintain political stability and prosperity of the country system, the social welfare and community development by providing necessary and basic services to its mass activities were limited. Local youths and intellectuals people. As discussed earlier, the history of social welfare were confined to initiating a few activities within the program in Nepal reveals that many such activities were boundary oflocal, cultural and sports' clubs and libraries. being provided through governmental initiations in After the dawn of democracy (1989), a lot of local different forms. The various fornis of Guthis initiated initiatives were observed to form local NGOs. To some under the ruling class can be identified as one of the extent this trend has been highly influenced by the global most popular and spatially distributed institution to phenomenon and the INGOs operating within the provide services to the public sector. Establishment of country. Many of the local initiatives, whether they are the Guthi Sasthan was initiated in 1964 by incorporating in the form of awareness raising campaigns or advocacy most of the Raj Guthis into one entity. of violation of human rights have been geared towards bringing together to pressurize the government. A sense During the era ofNepal's unification, activities for social of collective effort and voices has emerged at all levels, reforms and welfare were negligible. In spite of the which could be counted as a positive indicator for good dictatorial administrative structure of the Rana Regime, governance. The emergence of a strong civil society may it can be noted that many government entities were formed lead the country to exercise better democratic practices to initiate and deliver different social welfare schemes. in the coming days. Establishment ofKMC was also made during this period (190 1) to initiate town-cleaning activities in the core city Presently one can observe that there are many guthis, areas of the present municipality under the then Rana civil societies, users' groups and committees, NGOs and Prime Minister's directives of "Bhotahiti Sawal Jari." / INGOs, who are working on different subjects and levels in the metropolis. Self-renewal and revival of some At present, the line ministries and departments along traditional guthis and association to preserve their culture with many other social entities under the bureaucratic and heritage could be one step forward in the direction structure are responsible for delivering different services of social mobilization. Many of these orga,nizations are to the public. Besides these line ministries and operating on their own by initiating a few activities and departments, the government of Nepal has also covering limited areas. commissioned and established some prominent organizations to initiate various social welfare activities under the direct supervision and guidance of the 8.7.3 Private Sector bureaucratic structure (refer to Annex for the list of some prominent social welfare organizations). 1n the early 80s, The involvement of the private sector in the community by initiating the Ministry of Panchayat and Local development activities can be separated broadly into two Development (MPLD), the CD process was further geared towards Table 1 : Present Status of the NGOs and !NGOs Affiliated With the Social local administrative units (DDC and Welfare Council. VDCs ). To coordinate the activities S. No. Sector No. of NGO/INGO KTM based carried out by the international and 1 Community Development 4,646 1,501 national level NGOs operating 2 Child Welfare 202 95 within the country, the Social 3 Health Services 199 107 Welfare Coordination Council was 4 Handicapped & Disabled 125 52 established in 1977 under the 5 Women Service 841 242 6 Moral Development 210 84 Chairmanship of HM the Queen. 7 Environment 574 259 Presently the number of affiliated 8 Education development 82 39 NGOs and NGOs under the Social 9 HIV/ AIDS 36 24 Welfare Council is 8,821 and out of 10 Youth Activities 1,906 278 it more than 30 percent are Total: 8,821 2,681 Source: List of NGOs nnd 1:\'UOs affiliated with S\VC book registered in Kathmandu city alone. t 0 M M UNITY DEVE LO.PIVI,Efu;r categories. One is the involvement of individuals or 8.8.1 The Ninth Five Year Plan (1998 groups to initiate certain community development - 2002) activities on the basis of charity for the benefit of mass population. The second one is their involvement as mass The Ninth Five-Year Plan (1998- 2002) has provided service providers on a commercial basis. The opening many basic elements and guidelines to improve many of the free market economy has led many private of the components, which are related to community businesses, commercial groups and entrepreneurs to development aspects. Though, the guidelines were come up with new innovative ideas and projects to developed on broader perspectives, they primarily support the overall situation of the Kathmandu valley. provide strategic directions on a national level to attain The initiation of traffic island parks, market complexes, a sustainable development process. They fail to address management of solid waste, public transportation specific critical issues pertaining to KMC. However, services and vehicle parks can be cited as good examples those strategic directions provide ample guidelines to that are contributing to the community development develop appropriate strategic and annual plans by activities. Another good example can be observed on incorporating the priority sectors. the part of the local initiative, which is carried out at various ward levels with people's participation to Poverty eradication being the prime concern of the improve their physical facilities, services and public nation, the ninth plan has developed an integrated awareness campaigns. approach to reduce the poverty by 10 percent within the ninth plan period. Although, poverty was estimated to be 42 percent in the country as a whole, for Kathmandu 8 . 8 PLANS AND POLICY valley it was projected to be 35.6%. This figure also fRAMEWORK Of THE GOVERNMENT provides a gloomy picture of the urban people and their living conditions. For the past many years community development approach has been initiated at different levels by both the government and non- government sectors. Time and Table 2 : Comparison of Some Selected Socio-economic Development Indicators again the two sectors have for the Whole Nation and KMC (Planned for 9th five Year Plan Period Within the Range of 20 Years long-term Planning Perspectives). shown both cooperation and hostilities towards each other. S.No. Indicators * FY 2053 By 9th By 12th KMCat The prime concern and aim of I 054 Plan Plan ~resent the NGO sector is in Per Ca~ita Income Rs. 7,673 20,939 delivering basic services to 2 Poverty 42% 32% 10% 35.6% 3 Po~ulation Growth 2.38% 2.0% 1.5% 6% the deprived communities and 4 UnemiJioyment 4.9% 4% 3% 7.8% mm1m1zmg social 5 Semi-unem~loyment 47% 32% 10% NA exploitation. In actual sense 6 Average life ex~ectancy 56.1 yrs. 59.7 yrs. 68.7 yrs. 67 yrs. the roles and functions of an 7 Child mortalilJ' ('000) 74.7 61.5 34.4 NA NGO has been propounded to 8 Children mortality ( < 5 y_rs/ '000) 118 102.3 62.5 NA be that of a catalyst to bridge 9 Fertility rate 4.58% 4.20% 3.5% NA the development service 10 Mortality_ of Mothers (1 00,000 lB) 475 400 250 NA 11 Fl' acce!ltors 30.1% 36.6% 58.2% NA delivery mechanism. To 12 Primar:y_ School Children 70% 90% 100% 86% stream line both the 13 Higher Secondary School 45% 60% 100% NA government and NGO sectors 14 Literacy_ rate 40% 70% 100% 78% in the overall development 15 Available Drinking Water 61% 100% 100% 67HH initiatives, the government of 16 ElectricilJ' Facility_ 14% 20% 50% 99 HH Nepal has recognized them, in 17 Tele[!hone Service line ('000) 10 25 150 88 HH the Ninth Five-year Plan and 18 Districts with Road connection 56 66 75 all 19 Irrigation Facility for Agri. Land 60% 68% 95% NA Self- Governance Act, as 20 Available Roads (in km) 11,714 13,564 18,114 995 being development partners Somce: " Data collected from different sources, The ninth plan also deals with various aspects of human 8.8.3 Work, Responsibility and development indicators to improve the livelihood Authority of the Municipality conditions of all citizens. Reduction in population growth rate, illiteracy, child and mother's mortality rates, unemployment, fertility rates through health care and (A) Besides the implementation of the awareness activities are some of the priority sectors. The decisions taken up by theMunicipal Board ninth plan has also recognized the capacity building (Nagar Parisad), the municipality should process of the concerned development stakeholders by also implement the following works and outlining the NGOs and GOs collective approach and responsibilities on a compulsory basis: decentralization process to deal with the poverty alleviation projects. Following are some of the highlights (i) Relating to Finance: of the ninth five-year plan: I. To prepare annual budgets, plans and programmes of the Municipality and submit them to Municipal To reduce the present level of poverty (42%) by 10 Council. percent within the plan period the government has set 2. To keep the accounts of incomes and expenditures, priority to various livelihood programs. By promoting and the documents pertaining thereto in an updated various health and educational programs, the Plan aims manner. to gradually bring down the population growth rate to 1.5 3. To expend the money to execute the decisions of the percent by the year 2017. By improving the qualitative Municipality, subject to the limits of the approved educational, health and income generating activities it budget. has projected an increase in the following living standard 4. To raise taxes, charges and fees etc. approved by the indicators: Municipal Council. Within the set development indicators, KMC already (ii) Relating to Physical Development: qualifies for many of these indicators due to its comparative advantage of being the capital city and the 1. buildings and rest houses. prime economic center of the country. However, the heavy growth in its urbanization process has also brought (iii) Relating to Water Resources, forward inadequacy in many of the development services Environment and Sanitation: and facilities provided to the city dwellers. Many of the factors and issues as discussed in the earlier chapter have 1. To preserve rivers, streams, ponds, deep water, wells, put enormous pressure on the available resources and lakes stone water-taps etc. and utilize them properly. managerial capacity. To achieve the overall development 2. In the events of necessity to carry out irrigation plans objectives set by the 9th plan, thus, becomes the prime in the Municipality area, to make plans thereof and responsibility of all stakeholders. implement and cause to be implemented the same. 3. To control and prevent, or cause to be controlled and prevented the possible river cuttings, floods and 8.8.2 local Self-governance Act (1999) soil erosion in the Municipality area. 4. To assist, or cause to be assisted, in environment The Local Self-governance Act ( 1999) was protection acts by controlling water, air and nois~"" promulgated to ensure maximum participation of the pollution generated in the Municipality area. local people and local government body (VDC, DDC 5. To protect or cause to protected the forests, and Municipality) is sought at a maximum level. The vegetation and other natural resources within the Local Self-governance Act has empowered the local Municipality area. government. to initiate different types of development 6. To carry out or cause to be carried out sanitation activities, which are the prime concerns of the city programmes in the Municipality area. dwellers. Primarily, these activities have been directed 7. To carry out and manage or cause to be carried out to address and uplift the living conditions of the mass and managed the acts of collection, transportation populace: and disposal of garbage and solid wastes. COMMUNITY '"DEVE:f:OPME.NT> 8. To generate and distribute or cause to be generated 2. To arrange or cause to be arranged for bus parks and distributed electricity in the Municipality area. and parking places of rickshaws (three wheelers), horse-carts, trucks etc. within the Municipality area. (iv) Relating to Education and Sports 3. To prescribe the upper limit of push-carts, rickshaws, Development: horse-carts etc. in consideration df transport requirement of the Municipality and register and 1. To establish, operate and manage pre-primary provide number to them. schools with own sources in the Municipality area and give permission to establish the same. (vii) Relating to Health Services: 2. To extend support in the operation and management of schools being operated within the Municipality 1. To operate and manage, or cause to be operated and area and to make recommendations for the managed, municipal level hospitals, Ayurvedic establishment and dissolution of such schools. dispensaries and health centers. 3. To assist in providing primary level education in 2. To open, operate and manage, or cause to operated mother tongue within the Municipality area. and managed, health posts and sub-health posts 4. To make arrangements for providing scholarships within the Municipality area. to the students of oppressed ethnic communities who 3. To formulate programmes relating to family are extremely backward on economic point of view. planning, mother and child welfare, extensive 5. To prepare and implement or cause to be vaccination, nutrition, population education and implemented programmes on Municipality level public health, and to implement or cause to be adult education and infonnal education. implemented the same. 6. To open, operate and manage or cause to be opened, 4. To arrange, or cause to be arranged, for prevention operated and managed libraries and reading halls in of epidemics and infectious diseases. the Municipality area. 5. To ban the public uses of such things and objects in 7. To prepare and implement or cause to be the Municipality area as are harmful to the public implemented, sport development programmes. health or remove the same. 8. To develop or cause to be developed sports by 6. To ban the sale, distribution and consumption of such constituting Municipality level sport development type of consumer goods which may cause adverse committee. effects on public health. (v) Relating to Culture: (viii) Relating to Social Welfare: 1. To prepare an inventory of the culturally and I. To arrange, or cause to be arranged, for cremation religiously important places within the Municipality of heirless dead person, and to make arrangements area and maintain, repair, protect and promote, or for orphanages for helpless people, orphans and cause to be maintained, repaired, protected and children bereaved of parents. promoted, them. 2. To carryout, or cause to be carried out, programmes 2. To protect, promote and use or cause to be protected, relating to the interests and welfare of the women promoted and used, archaeological objects, and children and acts relating to the control of languages, religion and culture within the immoral profession and trade. Municipality area. (ix) Relating to Industry and Tourism: (v~~ Relating to Works and Transport: 1. To act or cause to act as a motivator to the promotion 1. To prepare plans of unpitched and pitched roads, of cottage, small and medium industries in the bridges and culverts as needed within the Municipality Municipality area. area, except those roads which are under the 2. To protect, promote, expand and utilize or cause to responsibility and control of HMG/N, and construct, be protected, promoted, expanded and utilized, maintain and repair or cause to be constructed, natural, cultural and tourists heritage within the maintained and repaired, the same. Municipality area. (x) Miscellaneous: 26. To carry out such other functions as prescribed under the prevailing law. 1. To do plantation on either side of the roads and other necessary places in the Municipality area. (B) In addition to the functions, and duties 2. To determine and manage places for keeping pinfolds referred to in sub-section (A), the and animal slaughterhouse. Municipality may also perform the following 3. To protect barren and government unregistered optionalfunctions in the Municipality area:- (Ailani) land in the Municipality area. 4. To determine and manage crematoriums. 1. To make necessary arrangement for providing 5. To act for the development of trade and commerce. standard school education in the Municipality area. 6. To frame bylaws of the Municipality and submit it 2. To launch literacy programmes to eradicate illiteracy to the Municipal Council. from the Municipality area. 7. To carry out necessary functions on controlling of 3. To open and operate libraries and reading halls in natural calamities. various places within the Municipality area. 8. To maintain inventory of population and houses and 4. To control unplanned settlement within the land within the Municipality area. Municipality area. 9. To register birth, death and other personal events 5. To make the structure and development of the town pursuant to the prevailing law. well planned through the functions such as b:ruided 10. To maintain inventory of helpless, orphan, and land development and land use. disabled children within the Municipality area and 6. To arrange for the aged rest house and orphanages. arrange to keep them in appropriate place. 7. To arrange for the supply of electricity and 11. To secure public interest by killing rabid and strayed communications facilities. dogs and specify the places to bury dead animals 8. To arrange for recreational parks, playing grounds, and birds into. museums, zoos, parks etc in the Municipality area. 12. To have such trees cut and houses, walls etc. creating 9. In order to reduce unemployment, to collect the data hazardous results demolished. of unemployed persons and launch employment- 13. To up-date the block numbers of the houses in the generating programmes. Municipality area. 10. To launch programmes to control river pollution. 14. To arrange for animal slaughter houses. 11. To provide ambulance service to the municipality 15. To impound and auction strayed animals. area. 16. To arrange for lighting on the roads and alleys. 12. To arrange for dead body carriers in the Municipality 17. To grant approval to open cinema halls in the area. Municipality area. 13. To carry out preventive and relief works to lessen 18. To arrange or cause to be arranged for Haat bazaar, the loss of life and property caused from natural markets, fairs and exhibitions etc. calamity. 19. To operate and manage or cause to be operated and managed fire brigade. (C) Consumer groups and other NGOs 20. To confer the honor of distinguished person of the shall have to be encouraged for the town on any distinguished person. development and construction works to be 21. To carry out or cause to be carried out other acts done in the Municipality area and such relating to the development of the Municipality area. works shall have to be done through such 22. To render assistance for the development of groups or organizations as far as possible. cooperatives. 23. To evaluate the performance of the Secretary and forward it with recommendations to the authority. (D) The Municipalities shall exercise the 24. To encourage or cause to be encouraged to carry out powers conferred on it under this Act and cooperative, industrial and commercial activities Rules and Byelaws framed under this Act. generating income to the Municipality with the investment of private sector as well. The Local Self-governance Act has identified and 25. To formulate various programmes based on provided enormous authority and jurisdiction to the local cooperativeness and to carry out or cause to be government entities including the municipalities. Most carried out the same. of the specified activities stated under the jurisdiction 272 .,,t:6MM'i.JNITY , Q.EVEL.():~·~EN·~r" ·.;:; STRENGTHS EWEAKNESSES ,a 0 Visionary and Capable leadership 0 Political Bias among few members . 0 Good Team Spirit 0 lack of Systematic Planning Procedures 0 Young and Energetic Managers 0 Inadequate Exposure and Experiences 0 functional Departments D Inadequate Infrastructures 0 feeling of Ownership D limited Resources D Increased Rapport Building & Coordination D Indifference of the Mass people in CD I'' 0 Good Public and Private Supports 0 Inadequate Coordination and Support l:r 0 Initiation of innovative activities 0 inadequate Documentation/ Records 0 Good Support of the Donor Agencies 0 Increased Faith and Trust of the People 0 Revival of the CD Process OPPORTUNITIES THREATS/ CONSTRAINTS 0 Capital and Administrative City 0 Political Will of the Central Government 0 Vast Economical Opportunities D legal Status of the KMC 0 Historical and Cultural Center 0 Attitudes of the line Ministries 0 Politically Sound Atmosphere 0 Intra-Organizational Capacity 0 Potential Bankable Projects 0 Interest of funding Partner Agencies of the municipalities focus on physical facilities and the municipality still remains ambiguous. The most services, however, they are primarily aimed at improving ambiguous part is the ownership issue of the various the livability of the city dwellers and thus can be linked public properties and infrastructures, as there are many to community development works. The Local Self- concerned line ministries and departments, who are governance Act has also laid great importance to the role, responsible for managing and operating similar functions responsibilities and involvement of local users' groups thus resulting in an overlap. Lack of coordination among and NGOs in carrying out development works. The the municipalities, line ministries, departments and other unsuccessful experience of the development activities of stakeholders has created a complex and confusing the past decades to sustain themselves has been influential atmosphere to deal with many pertaining issues. It has in generating the concept of partnering with the local been stated that the existing situation is like a boat with commtmities, NGOs and INGOs to support CD initiatives. many people rowing at the same time with different strokes in different directions. Primarily the conflict is managed without proper solutions and by blaming each 8.8.4 issues Related to the Policies other. and Plans Municipalities come under great pressure to accomplish b. Political Will: the huge tasks lay down under their jurisdiction. The following are some of the pertaining issues and An unstable government with hidden undercurrent limitations; waves of political disputes among the ruling and opposition political parties has also been blamed for the malfunctioning of the Local Self-governance Act. The a. Legal Status of the Municipality: frequent changes and reshuffling of the cabinet ministers, delays in the decision making process with its long In spite of the provisions made under the Local Self- bureaucratic procedures along with some hidden agendas governance Act, in many instances, the legal status of are some of the critical phenomenon within the p:I;~~ent 213 •. CITY DIAGNOSTIC REPORT political environment of the country as a whole. The strengths and weaknesses along with the available much-politicized issue on the disposal of solid waste opportunities and threats, which further need a can he cited as a good example. systematic in-depth analysis. c. Limited Resources: Strengths: The existing elected constituency of KMC body is led The formidable task of generating financial resources by visionary and capable leaders with adequate team has been one of the prime issues in all the approach in the decision making process. A majo~ity of municipalities. The abolishment of octroi (Chungi the constituency has shown a great deal of maturity and Kar) imposed on the vehicles and materials has support inducing KMC to exercise many new innovative brought certain setbacks on the financial status and events. By restructuring its organizational set up KMC overall work performance of the municipalities has tried to streamline its major areas of operation in an including KMC. In spite of the provision made under appropriate way, which has been supported by many the Local Self-governance Act to impose and collect young, energetic and capable managers. For the past few various taxes from the public many of the years, KMC has shown a greater degree of concern municipalities are overwhelmed trying to accomplish towards the community development process and has plans and programs under the constraints of resources been able to muster public and private support to initiate (both financial and human resources). The some successful innovative projects and events. The trust indifference and resistance of city dwellers of KMC and public response has increased due to its good efforts to pay taxes can be blamed partly on their in rapport building and networking. Similarly, it has also inexperience and the habit of availing of free been able to spread out its networking with many government services. The adverse attitudes shown by collaborating donor agencies to collect ample support the mass public and their unwillingness to pay taxes to to finance some commendable projects. the government (Municipality) can be also blamed for the malfunctioning of the government in bringing about economic and development prosperity to the nation. Weaknesses: Inadequate experiences on systematic planning procedures to carry out its regular activities related to d. Organizational and Managerial development and construction works has been one of Capacity: the weakness within KMC. Most of the time the planning procedures were carried out at the central level. However, Catering for all the services laid down by the Local Self- a gradual shift can be observed at the ward level where governance Act needs not only huge financial resources, they are coming up with a planning process. They still it also demands for a larger and more complex lack the actual representation and ownership of the organizational set up along with appropriate managerial community people. Lack of proper documentation still capacity. Although, for the many past years KMC has constrains appropriate planning and projection. Lack of been implementing many of the activities (formulated strong sources to generate financial resources has largely within the Local Self-governance Act) under its carrying affected its operational activities. This has also capacities, it is highly constrained by intra-organizational constrained and limited its networking function. capacity. Opportunities: 8.9 SWOT ANALYSIS OF KMC As discussed earlier KMC being the capital city possesses enormous potential for economic growtr. The Under the present environment, SWOT (Strengths, historical and cultural aspects of the capital city are also Weaknesses, Opportunities and Constraints) analysis has capable of pulling more international tourists as well as become a prominent managerial tool to assess the the business sector. Furthermore with its neutral stand internal and external environment of an organization. on international and regional political issues it is at an The environmental scanning made at the surface level advantage to develop as a buffer zone to organize various within the KMC organization reveals many of the international conventions. COMMUNITY DEVELOPM Threats I Constraints: D "Well Planned city and housing for all."- Housing The decentralization process automatically demands & Urban Planning sub-group. shifting of power and authority to the lower segment. 0 Capable organization and manpower to manage the The political unwillingness of the central government service facilities and physical infrastructure of the and bureaucracy to devolve authority and responsibility city dwellers." - Institutional Dev. and Strategic has been observed as one of the prime hurdles to Planning sub-group. implement many of the activities in KMC, which were 0 "Capable local government." - Political specified by the Local Self-governance Act. The existing Commitment and Self-government sub-group. intra-organizational capacity of the KMC is also regarded D "Well managed, safe transportation and healthy as one of the threats for absorbing and adapting to the Kathmandu." -Physical Infrastructure sub-group. Local Self-governance Act. A consolidated vision for KMC could be constructed by accumulating all the spread out sectorial visions, 8.10 VISION, MISSION AND which comes much closer to "A healthy, lively and OBjECTiVES Of CD WORKS sustainable society." The first stakeholders' workshop of the Kathmandu City Development Strategy was held in Kathmandu on 25th 8.11 fRAMEWORK GUIDEUNES August, 2000. The prime objective of the workshop was to identify the most pressing issues affecting the overall On the basis of assessing the overall enviromnent and development of the city. Preparation of a collective vision outcome of the different studies and exercises, the based on the outcome of different sectors was also one following areas have been identified as the prime sectors of the objectives of the workshop. While dealing with to initiate and promote CD programs in KMC: the CD aspects, many pertaining issues surfaced in the open plenary session. The general observation made was that although the people's development was the primary 8.11 ,1 Area and Scope for objective of all development efforts, intentionally or Intervention in CD Works unintentionally CD was rarely accorded due importance. The concerned department under KMC is weak and the As community development aspects encompass each and mass public remains indifferent toward this sector. Some every segment of the human endeavor, they should be of the major issues highlighted were street children and closely linked with all development process. However, child labor, girl trafficking, empowerment of women, in many of the development sectors the direct employment and income generation, education, basic involvement of the community people is not necessary, health and family planning services along with raising but they need to have certain level of concerns in all awareness on disaster management (refer to Annex- c. matters. Communication being one of the strong tools for details). to bring about human behavioral changes, KMC should try to build a consensus on such concerns with its mass populace. By upgrading its Communication and D~fferent working sub-groups in the Information Department, KMC could disseminate its workshop had identified their own visions messages to the mass and specific communities alike. fo.r KMC, which are as follows: Many of the CD works at local level could be initiated by reviving the existing Guthis and users' groups. 0 "Cleanest and healthiest city m N epa!." - Similarly, the local NGOs and INGOs (including youth Enviromnent and Solid Waste clubs and private associations) would be good assets to initiate various CD works within the municipality area. Management sub-groupo Feeling of ownership is one of the prime components in 0 "Economically sound and managerially capable participatory development process to sustain the CD metropolis providing qualitative urban services and program, involvement of the concerned stakeholders facilities."- Financial Management sub-group. should be guaranteed at each and every event. Cl:p{ b~~NOSTIC. ;,''-·,·' REPORT 8.11.2 Networking with the be major activity under the Social Welfare Department. Concerned Partner Organizations Its support could also be vital for coordinating many of the major activities under different departments. A well- The respective departments constructed under KMC structured action plan for each department along with need to be mobilized to build up a close networking easy access to important events and their infommtion with many development partner organizations. will help to mobilize a collective effort to initiate and Networking should get high priority by developing a implement successful CD activities. close collaboration among the departments and KMC representatives (Ward members) as both intra- organizational components of KMC need to work 8.11.5 Human and financial collectively to achieve the overall goal of the KMC. By Resources developing strong linkages with GOs, NGOs, INGOs and private sectors, KMC could muster enough support Resources, being scarce commodities are regarded as to maximize its carrying capacities of various placing great constraints in any organizations. Efficient developmental activities. Collective and joint venture, utilization ofthe available resources also becomes one feeling of ownership, transparency and mutual trust are of the prime concerns of an organization. The Local some of the foundation components to sustain the Self-governance Act has laid huge responsibilities on development initiatives. the municipalities by expanding their working areas. To accomplish these responsibilities, they need a lot KMC could strengthen and mobilize its Communication of financial and human resources. However, on the part Department to play a lead role in establishing a community of CD, the involvement of many other stakeholders is forum to discuss social, economic and environmental a positive asset. Instead of direct involvement and issues and follow-up action. Such mass media can be duplication of job performance KMC could play a supplemented by forming listeners clubs at the ward levels catalytic role in initiating CD activities. Ward to make the impact more development oriented. Committees will have a greater role to play is such activities. 8.11.3 Documentation 8.12 MONITORING AND The process of planned change has been identified as EVAlUATION one of the appropriate managerial leadership tools to a successful development endeavor. Such a planning To carry out the monitoring and evaluation roles in CD process needs some basic input in the form of existing activities, KMC should develop appropriate indicators. information and data. KMC should take necessary steps Support of the concerned departments and Ward in formulating its information center to update the Committees will be vital in this respect. By involving records of available data. KMC could mobilize its ward various stakeholders (GOs, INGOs and NGOs) KMC committees to accomplish this formidable job with could develop collective action plans for CD programs support from the departments. along with appropriate indicators and division of job responsibilities. 8.11.4 Structural Adjustment Although, the collaboration with concerned stakeholders' is difficult and time consuming, it is one Basically, KMC can be identified as a pro-public oriented of the vital components to bring a collective effort for a organization where the successful implementation of the sustainable development process. All social entities CD activities demands a close collaboration and support operating to achieve certain specific goal and objectives from different stakeholders. KMC has formed different have to adapt to this principle. departments to initiate various CD activities, which are linked with many departments, therefore without having a close collaboration among the concerned departments 8.13 SUMMARY CONClUSION they will not be able to yield results at the expected level. To provide support, in initiating CD activities, to other Conununity Development processes being an integral departments along with Ward Committees there should part of society has a long historical background. The 276 ' ,· ,, .COMMUNITY VELOPME.NT well being of men should remain as the central issue of It has been closely observed that KMC has its own all developmental efforts. KMC has a long historical constraints and limitations along with many good CD tradition. Presently, the CD component has grown opportunities to spearhead its community development into a much larger sector by encompassing all activities. First of all KMC should identify its roles and development endeavors. CD also demands a collective responsibilities to enter into various community effort from all stakeholders. Many of the development development sectors. With its present structure and capacity, efforts carried out in the past decades have proved that KMC will certainly face constraints to achieve the development cannot be sustained without the overwhelming activities, which fall under the CD boundary. involvement of the local communities. By mobilizing the ward committees, KMC could obtain and develop a good resource pool of these partner The decentralization process and Local Self-governance organizations. Developing a strong networking and linkages Act ( 1990) has entrusted a great deal of roles and for resource mobilization and sharing information with responsibilities on the local government body. Collective local, private and public agencies involved in CD activities, effort of all stakeholders' is the prime key for the KMC could achieve tremendous success in developing a successful implementation of the Act. strong civic society within its vicinity. Note: The City Diagnostic Report for KMC has been developed separately into ten chapters. This specific report focuses primarily on the community development aspect, which has also a cross cutting role in other sectors and has to be dealt accordingly. citY DiAGNOSTIC REPORT Table 3: Community Development issues and Implications ISSUES IMPLICATIONS ACTORS Street Children and Unhealthy & unproductive society with UNICEF, CWIN, SWC and other INGO/NGO Child Labor insecure city life and damaged involved in the child focused programs international image Girl Trafficking HIVI AID epidemic UNICEF, UNDP, SWC, GOs, Bi- and multi-lateral organizations Ward Committees, NGO, JNGO (Maiti Nepal, WOREC, etc.) Empowem1ent of Unrealistic and Gender biased INGO, NGO, SWC, MCWSW, and donor agencies Women development process Employment and Anarchy, social unrest and lowered GOs, INGOs, NGOs, Private industries, business Income Generation economy entities and skill providers (CTEVT) Education Sports Unemployment leading to social unrest GOs, INGO, NGOs Parents, schools, Pvt. Forms a1 and anarchy industries Health Services Unproductive and unhealthy mass city MOH, UNICEF, INGO, NGO and Health Clinic dwellers (ward) Senior Home for Old Insecure and destitute life for Senior GOs, INGOs, NGOs, Ward Committees and other Age Citizens Citizens donor agencies. Social Security for the Unsecured city life GOs, INGOs, NGOs, Citizens Ward Committees, Police and concemed Depmiment: ofKMC People's Participation Sustainable development process will not be GOs, INGO, NGO, Ward Committee, User's groups, achieved Clubs, Guthis, and donor agencies Natural a11d Manmade Loss of lives and materials GOs, INGO, NGO, Ward Committee, Guthis, Club s, Disaster etc. "~ <',;~' '278 ANNEX: 1 Stakeholders' Map STAKEHOLDERS INTEREST IN KMC EXPECTATIONS POTENTIALS Department ofKMC 0 Well coordinated 0 Support and linkag~s among 0 Good and efficient service functional and various concerned delivery to the target groups by resourceful departments, partner minimum duplication of works departments within organizations, Ward 0 Good linkages and support for KMC to cater representatives and the resource mobilization maximum services to communities. 0 Capable and well functioning the communities 0 Availability of required Ward Committees and civic basic resources. societies (pro-active) to response 0 Formulation of to the community development comprehensive internal process. policies and plans for KMC 0 Delegation of more power and authority to the Ward Committees. Ward Committee 0 Well coordinated 0 Availability of required 0 Capacity building at the ward Members functional and basic resources and support level for. initiating resource resourceful Ward from the departments and mobilization and networking for Committees to cater stakeholders to initiate CD initiatives with minimal maximum services to sustainable community duplication of works the communities development programs at their respective wards. Social Welfare 0 Enough room to 0 By formulating its 0 Control of duplication work and Council (GO) establish close comprehensive policy and funding CD activities along with cooperation and action plan on CD, KMC easy access to monitor and coordination to initiate should support SWC in regularize documentation system various CD activities monitoring and regularizing 0 A collective and effective the NGOs and social groups mechanism to initiate urban CD by mobilizing its Ward program Committees NGO 0 Cooperation and 0 KMC should formulate its 0 Collective effort to address the assistance from KMC comprehensive policy and CD related issues (i.e. street and other stake holders: action plan for CD programs children, child labor, social 0 Initiation, 0 KMC should initiate close security and services, gender, coordination, coordination with prominent slums and squatters, etc). rehabilitation for street stakeholders for resource 0 Feeling of responsibility and children mobilization and cost accountability on CD issuesm by 0 Positive attitude sharing in a transparent way all towards the deprived 0 Involvement of Ward 0 Strengthened organizational conununities and Committees and capacities to deal with the gender sensitivity stakeholders in the community development process 0 Appropriate implementation of CD resettlement programs programs for the slums and squatters. Judge Panel Members 0 Integration of social 0 KMC should formulate its 0 More responsive and pro-active (Reviewers of CD mobilization process comprehensive policy and organizational settings to initiate Diagnosis Report) within KMC to create action plan for CD. effective and efficient connnunity awareness and active development programs. participation of civic societies. ANNEX- 2 People Consulted ~ Mr. Keshab Stapit, Mayor, KMC ~ Mr. Padma Sundar Joshi, Coordinator, KMC I CDS ~ Mrs. Hari Devi Ranjitkar, DH, SWD, KMC ~ Dr. Babu Ram Gautam, DH Health Department, KMC ~ Mr. Bishnu Singh Basnyet, DH, Security Department, KMC ~ Mr. Shankar Raj Kandel, DH, Communication & Information Department, KMC ~ Mr. Ganesh Dhoj GC, DH Legal & Litigation Department, KMC ~ Mr. Yogendra Kumar Shrestha, Chairperson, Ward No. 1, KMC ~ Ms. Tara Gautam, Elected Women Ward Member, Ward No. 2, KMC ~ Ms. Lajana Manandhar, Director, Lumanti ~ Mr. Shiva Hari Maharjan, Director, EDHAG ~ Dr. Shaket Bihari Thakur, Alliance for Social Mobilization ~ Prof. Santa Bahadur Gurung, Director, DEVA ~ Mr. Madhav Pradhan, Program Coordinator, CWIN BIBLIOGRAPHY 1. Baudhik Sanshar Sampadan Samuha, Directives on the Local Self-governance Act (Nepali), 2056. 2. CWIN, Far Away from Home, Survey study on child migrant workers in Kathmandu Valley. 3. KC Rajendra, Development Management ofNGO (Nepali), REDA, Kathmandu, July 1999. 4. KMC, Kathmandu Metropolitan City at a Glance. 5. KMC, First Stakeholders' Workshop Proceeding Report, CDS, August 2000 6. KMC, Kathmandu- Nepal, City Data Book, RETA 5846, City Profile: Kathmandu. 7. KMC, Mahanagar Bulletin, Volume 2 No. l, Aprill999 and Volume 2 No.3, July 2000. 8. KMC, Social Welfare Department, Brochure on Human Resource Information & Promotion Center. 9. KMC, Social Welfare Department, Brochure on Disaster Management Section. 10. Kamana Group of Publication, Sadhana Family Digests issues 36, 59, and 72. 11. Lumanti et all, The Water Supply and Sanitation Situation of Urban Poor in Kathmandu Valley, July 2000. 12. Nepal Heritage Society, Prepardness, Response and Recovery Strategy for Heritage and Cultural Sites in Kathmandu Valley 13. National Planning Commission, HMG/N, Ninth Plan (2054-2059) Ashar 2055. 14. N.Shrestha, Laws on Local Self-governance Act (Nepali), Pairabi Publication, Kathmandu, 2055. 15. NSET-Nepal and GeoHazards International, USA (GHI), The Kathmandu Valley -Earthquake Risk Management Action Plan, January 1999. 16. Social Welfare Council, List of Non-governmental Organizations Affiliated with Social Welfare Council, Volume- I and If, September 1999 and May 2000 Kathmandu. 17. Thapa Sabitri, Nepalma Samajsewa (Nepali), Sajha Prakashan, 1976. 18. Upreti NP et.all, An Outline History ofNepal, Ekta Books Distributors Pvt. Ltd., Kathmandu, 1994. ENVIRONMENT Surya Man Shakya ENVIRONMENT SPECIALIST : DIAGNOSTIC BE17:0RT UST OF ABBREVIATIONS AQG Air Quality Guidelines (WHO) B.S. Bikram Era CEDA Center for Economic Development and Administration CDS City Development Strategy CPC City Planning Commission DANIDA Danish International Development Agency DOR Department of Road DDC District Development Conm1ittee DOl Department of Industries DCSI Department of Cottage and Small Industries EPC Environment Protection Council EEC European Economic Commission EIA Environment Impact Assessment ENPHO Environment and Public Health Organization FNCCI Federation ofNepal Chamber of Commerce and Industries HMS Hydrology and Meteorological Services HMG His Majesty's Government HAN Hotel Association of Nepal KVDA Kathmandu Valley Development Authority KVDC Kathmandu Valley Development Council KVMP Kathmandu Valley Mapping Program KVVECP Kathmandu Valley Vehicular Emission Control Program KMC Kathmandu Metropolitan City LDO Local Development Officer MLD Ministry of Local Development MSW Municipal Solid Waste MOl Ministry oflndustry MOPE Ministry of Population and Environment MLD Ministry of Local Development MI Ministry of Industry NEPAP Nepal Environment Policy and Action Plan NESS Nepal Environmental and Scientific Services NWSC Nepal Water Supply Corporation NGO Non Government Organization NHS Nepal Heritage Society NBS Nepal Bureau of Standards NPC National Planning Commission NCS National Conservation Strategy RONAST Royal Nepal Academy of Science and Technology SWMRMC Solid Waste Management and Resource Mobilization Center SWMB Solid Waste Management Board SWMNC Solid Waste Management National Council SSNCC Social Services National Co-ordination Council TSP Total Suspended Particles TA Technical Assistance US AID United States Agency for International Development UNDP United Nations Development Program UNICEF United Nations Children Fund VDC Village Development Committee WB World Bank WHO World Health Organization 284. ENVI.RONMENT · TABlE OF CONTENTS List of Abbreviations 284 Table of Contents 285 List of Tables 286 List of Maps 286 9. ENVIRONMENT 287 9.1 Introduction 287 9.1.1 Katlunandu's Deteriorating Environment- The Background 287 9.1.2 CDS and Environmental Objectives 289 9.2 Environmental Status And linkages 290 9.2.1 Urbanization and Environment 290 9.2.2 Katlunandu Valley and KMC, as Environmentally One Single Unit 290 9.2.3 KMC's Emerging Environmental Problem- New Dimensions 291 9.2.4 Environmental Constraints to Growth 291 9.2.5 High Social Costs of Environmental Disruption 292 9.2.6 Impacts of Urbanization on Environment 292 9.3 Sectoral Situation Analysis 292 9.3.1 Solid Waste Management 293 9.3.2 Air Pollution 295 9.3.3 Industrial Pollution 302 9.3.4 Water Pollution 308 9.3.5 Noise Pollution 315 9.4 Anylysis of Policy and legislation 316 9.4.1 Relevant Policies 316 9.4.2 Sectoral Policies and Legislation 317 9.4.3 Existing Legislation and Their Enforcement 318 9.4.4 Concluding Remarks 319 9.5 Institutional Framework, Responsibilities 319 9.5.1 Parliamentary Committee 319 9.5.2 National Planning Commission 319 9.5.3 The Environment Protection Council (EPC) 320 9.5.4 Katlunandu Valley Development Council (KVDC) 320 9.5.5 Line Ministries 320 9.5.6 Local Governments 321 9.5.7 NGO Sector 322 9.5.8 Potential Groups (Stakeholder) 322 9.5.9 Institutional Capability at National Level 322 9.6. KMC As an institution in Environment Sector 323 9.7. Findings, Opportunities and Challenges 323 9.7.1 Findings 323 9.7.2 Opportunities 324 9.7.3 Challenges 324 ~85 9.8. Recommendations 324 9.8.1 Activities to be Addressed 324 9.8.2 Institutional Development 326 9.8.3 Mechanisms of Coordination 327 9.8.4 Justification 327 9.9 Overview 327 Bibliography 330 liST OF TABLES Table 1: Sources of Solid Wastes Table 2: Characterization of Kathmandu's Solid Waste Table 3: Ambient Air Quality in Various Areas of Kathmandu Valley Table 4: Liquid Fuel Consumption in Kathmandu Table 5: Fuelwood Consumption, Kathmandu Valley Table 6: Coal Consumption in the Brick and Cement Industries Table 7: Ratios Between PM, I 0 and TSP Table 8: Main Emission Sources in Kathmandu ( 1993) Table 9: Water Quality of Public Taps in Kathmandu Table 10: Fecal Coliform in the Water Sample of Kathmandu City Table 11: Chemical and Bacteriological Characteristics of Kathmandu City Ground Water Table 12: Water Quality Parameters of Different Treatment Plants and Reservoirs Table 13: Bacteria Levels in Kathmandu Drinking Water Table 14: Noise Levels in Different Sites in Kathmandu Table 15: Environmental - Issues and Implecations liST Of MAPS Map 1: Analysis of KMC's Challenges Map2: Major Air Pollution Areas Map3: Water Polluting Industries Map4: Major Extraction of Ground Water Map5: Existing Water Supply System 286 Environment The notable symptoms ofurbanization induced environmental problems ofKathmandu became perceptible following the political revolution ofthe 1950s. The preparation ofthe Master Plan for Kathmandu (1962) and the Tourism Master Plan (1972) which embodied provisions for basic infrastructure, sanitation improvement, waste disposal etc. testifY this fact. The vagaries of government policies spanning industrial development ofthe sixties, rural development ofthe seventies, and urban development as a support to regional development of the eighties, have all contributed to the evolution of an urbanization pattern, and resultant environmental problems in Nepal. 9:J. INTRODUCTION advantage, the economic and political dimensions of which are obvious. This agglomeration of activities has gained a momentum of its own, has provided an 9.1: .1 Kathmandu's Deteriorating alternative basis to strengthen the economic base of the Environment - The Background valley, and has accelerated the process of labour migration to the valley towns. It has also impinged on mong the multitude of factors contributing to the fragile environment of the valley and could also the increased momentum of urban growth in imperil tourism, another vital economic base of the valley are the inordinate concentration of valley towns. decision-making and development functions in the valley owing to its being the political and economic capital of What emerges quite clearly in the first instance is that N epa!. While in countries like India or Pakistan the the KMC cannot be considered only with reference to political capital and the financial capital remain more the Kathmandu Valley, and that its roles and functions or less as separate entities, both these roles have tended transcend the limits of the valley, encompassing the entire to reinforce each other in a single region, i.e., the country. The growth in population and changes in man- Katmandu Valley, in Nepal. As a result, Kathmandu land equations in the hill-region in general over the last Valley has become the focal point of public sector three decades, the gradual saturation of the Tarai as a employment in the country, besides being the major destination for land-hungry migrants, and the changes center of private sector employment catering to an in the social attributes of population (increased literacy increasing population, for whom proximity to the centers in particular), and the lack of the development of of decision-making and development functions is most alternative spatial locations providing avenues for off- vital. farm opportunities have all contributed to the growth of the Kathmandu urban region. The valley had historically sustained urbanization through an extremely productive agricultural base and Secondly, more than any other settlement system in sustainable management of natural resources. This base Nepal, the major concern in Kathmandu is not with has gradually been eroded by new developments. By respect to attracting off-land economic activities per se. virtue of being the center of political and economic The concern is more regarding the type of economic power, the valley offers locational advantages that no activities in juxtaposition to the environment. Because othe:r settlement system in N epa! can offer. It is the of the unique physical setting of the valley and unplanned singular pole in the hill region to spontaneously attract urban sprawl, there are serious constraints to the capital and skills. The rapid growth of the manufacturing provision of essential services like drinking water, sector in the valley owes exclusively to this locational sewerage and drainage while at the same time, the levels ~>Jit· co· 0?. • Analysis of KMC's Challenges Map 1 Concentration of all facilities within the kathmandu Valley Kathmandu Valley becoming favourable place for J~ .(3: ~ Inefficient transport by private sector Scattered & High demand of ·unplanned transportation valley wide service Air pollution of river, ground water, air and noise pollution are tending As a result of the CDS exercise for Kathmandu, it is to reach precarious levels. This is resulting in rapid expected that KMC will develop a long-term partnership degradation of the natural as well as built-environment, with the government and donor agencies for the effective jeopardizing the very basis upon which sustainable and sustainable implementation of the assistance growth and development depend. programs. Thirdly, while the functions and activities have The Kathmandu CDS exercise also gave due importance multiplied in the Kathmandu Valley over the years, there to "stakeholders' participatory approach" in the planning has been a conspicuous and relative decline in the process. The planning process and the development of institutional capacity to handle these functions. The various strategies was thus made transparent, and this build-up of the local, municipal and district capacity to report which is based on a consensus among the deal with problems arising from rapid urbanization have stakeholders at various levels serves as the best example been inhibited and hampered by political exigencies and of such transparency. The stakeholders meeting which pn~ssures exerted by the imperious presence of the were held on the 25'h August '2000, and 17'h January central authority. There is in effect, an "operational 200 I played an important role in identifying key issues vacuum", and the total lack of an institutionalized system and prioritization of problems. to visualize the future of the valley, and the means and mechanisms to move towards that vision. The diagnostic report for the CDS and the environmental analysis have been carried out under the assumption of The following chapters in this volume discuss the major such apolitical and institutional capacity that in the near eco-environmental issues in the Kathmandu Valley with future, KMC will assume its responsibilities as a fully focus on the KMC area. The analysis has focused on a operational local self-government. The decentralization synthesis of the major studies, evaluation and plan policies ofHMG will arrive at a viable mature state in programmes that have been undertaken for the the near future, and in such a situation, it is assumed Kathmandu in the past few years. Rather than focus on that the "Local Self-Govemance Act, 1999" will be the the details, only the problems and their varied dimensions key legislation which will enable KMC to implement have been examined. the plans and programs recommended in the final CDS. This diagnostic report on environment is an outcome of efforts of the various stakeholders, and concerted 9.1.2 CDS and Environmental discussions and deliberations on the subject. Objectives This report outlines many issues pertaining to Economic activities have made important demands on environmental problems of Kathmandu. These issues Kathmandu's environment, both built and natural. The cannot be dealt with simultaneously and will have to be World Bank's a~sistance in developing a CDS for done in stages. KMC will require substantial external Kathmandu has environment protection as one of the help to organize the needed programs, to develop its major objectives. The World Bank Guidelines on CDS institutional capacity, and to effectively change the Stresses four main themes and they are Livability, quality of life of kathmandu's residents. However, the Bankability, Competitiveness and Good Governance. most fundamental source of change must emerge from The principal aim of the environment component of CDS the collective efforts of the local people and their therefore, is to seek practical solutions at the local level communities. A long part of the valley-wide issues in for the above themes holding the following environment environment cannot be resolved without the active protection objectives: participation of the central government and the donor communities. Similarly, for many of the environmental (i) to analyze the acute environmental problems in problems in Kathmandu, fundamental changes in the KMC; conventional approaches are needed to decrease cost and (ii) to formulate an environment protection strategy increase effectiveness, such as public private and environment assistance program ;and participation programs. Much greater emphasis is needed (iii) to improve urban living conditions and quality of on decentralized solution, based upon active life by efficient utilization of available resources participation of local organizati.ons supported by in the environment sector. adequate institutional and financial support from other line agencies including private sector and funding it is important that carefully drawn development agencies. strategies are to be developed and bold environmental protection measures are to be initiated at the earliest possible. Kathmandu serves as the main engine of 9.2. ENVIRONMENTAL STATUS economic growth as well as the fulcrum of social, AND LINKAGES cultural, spiritual, scientific, political and administrative advancement. Failure to take effective measures to 9.2.1 Urbanization and Environment improve its environment now, will result in disastrous consequences. More over, effective management of The current pace of urbanization and real changes in Kathmandu's environment and holistic and balanced urban environment are areas of concern for KMC. KMC development of the valley as a unit can help in advancing is willing to urgently take effective intervention actions the national development objectives. to address the urbanization-induced environmental problems. However, there are many practical questions regarding the implementation of plans and programs 9.2.2 Kathmandu Valley and KMC, as developed in the past, including emerging ideas Environmentally One Single Unit concerning the protection of environment in cities like Kathmandu. The City Development Strategy being It is truism that Kathmandu's degrading enviromnent is formulated with the technical and financial assistance the result of many factors including the concentration of World Bank is an important initiative towards finding of opportunities in the valley. The neglect of natw·al and solutions in implementing plans and programs for the man-made environment in Kathmandu is immanent KMC. owing to rapid economic growth, which is not in tune with the growing demands for institutional infrastructure, The main objectives of the CDS Environmental study and other life-support systems. Kathmandu is are to identify the major components of sustainable overstressing on its economic goals without compatible development of KMC and the extent to which the investments on infrastructure and this is happening at existing and proposed development plans and policies the cost of environmental disruption to the extent of support or conflict with the progressive achievement of threatening all its potentials such as cultural assets and KMC's vision. tourism potentials. Kathmandu is a city of enormous potential and Due to its strategic location and high level of economic opportunities in the whole nation and its unique quality opportunities, economy and the environment are closely in itself is a threat to its sustainability. By virtue of its linked. The experience of the past 30 years of unique topographical setting and productive potential, development in Kathmandu has clearly shown that it is one of the biggest cities in Nepal that has witnessed neglect of the environment is detrimental to economic a long, uninterrupted and rather rich history of the fruition and efflorescence in the long run. In many evolution of urban development. The basis of urban respects, the future development potential of Kathmandu growth, till the first quarter of the present century was will be greatly facilitated if natural and built environment the entrepot function of the Kathmandu in particular and of the city and its surroundings are better managed. At valley towns in general. This basis had virtually ceased the same time, if resources and environmental quality to exist by the 1950s. Urbanization of the valley are allowed to deteriorate further, it will severely witnessed after 1950s, and the momentum it has picked constrain its development potential. Environmental up particularly since the 1970, is a result of inter-related problems such as air, water and soil pollution, solid waste factors that have transformed both the nature and the management, loss of greenery, lack of eff,ective basis of urban growth in the valley. It is this basis, and infrastructure etc. are the tangible and evident the imperatives created by this basis, that have to be characteristics of big cities in a developing nation. In diagnosed and addressed in dealing with urbanization the Kathmandu context, such occurrences are posing related issues in Kathmandu vis-a-vis the environmental seemingly insurmountable problems in the absence of implications and its impacts on its residents. futuristic strategies and plans. The state of the environment in Kathmandu has been a subject of In the context of environment of the Kathmandu discussion at all levels, yet efforts by the government metropolis in particnlm: and the entire valley in general, and other support agencies are considered inadequate. . ENVIRONNH::NT These problems are not confined to KMC alone, and in the task of accommodating the ever-growing hence underscores the need to treat the whole valley as population with low investment per capita and per unit one single environmental unit. area. The Central government reserves the right to exercise control over the KMC's administration, which has caused serious setbacks to its effective functioning. 9 . 2.3 KMC's Emerging Environmental For instance, the chief executive officer is appointed by P1roblem- New Dimensions the MLD and not by KMC due to which, the administrative machinery is more loyal to MLD rather The shape and character of the KMC's future than KMC. During exigencies which brought the KMC environmental problems will be different from the past and the MLD in conflicting terms, the administration experiences. Firstly, during the early years till the 1970s, has supported MLD rather than KMC. the process of urbanization and industrialization was in its infancy, the magnitude of the problems were well Thus, in discussing urbanization and environment in the wHhin control, and the concerned Ministries and context of KMC and the valley as a single unit, the Departments including the KMC, were able to keep pace situation may be summarized in the following terms: with the changing trends. The development activities in the later decades have caused considerable and (i) The existing environmental conditions and consistent escalation of environment-related problems, projected future presents a very dismal picture and for which technological solutions action plans must be massive interventions are needed to redeem the sought at the earliest lest Kathmandu and the KMC will situation. be compelled to bear the brunt of the most irredeemable (ii) The ambitious economic development plans for national crisis. The need for a gargantuan transport the city needs to be supplemented by the system to cater to the thousands of commuters everyday, simultaneous incorporation ofbold steps to protect serves as a good example in this context. All such the environment. essential services are no longer of local purport and (iii) Further development of economic activities in the substantially draws upon the nations resources. The valley will lead to further urbanization which calls pattern of living of Kathmandu's residents have led to for defined and stratified plans to annul adverse of air-noise pollution, traffic congestion and dearth of effects on the urban environment, cultural space. What is more important, the conflicts arising environment and natural environment. These between the traditional and emerging human possibilities have been dealt with in other chapters environment and the rapid changes in the basic urban on the development of CDS for the Kathmandu system have disrupted the ecological balance. Valley. It is clear from the past experience that the parallel 9.2.4 Environmental Constraints to growth of urbanization and commerce is inevitable, and Growth hence, the priority of the KMC will be to create a city where economic opportunities are abundant. The effect It has been a matter of serious debate among planners of such an emphasis on the shape and character of the and policy makers to define the pattern of future growth city's environment can be very serious and permanently of the Kathmandu City. However, it can be conclusively damaging if adequate attention is not paid to the city's said that Kathmandu's development cannot be modeled environmental concern. The search is, therefore, for a on the pattern of big metropolitan cities like Bombay, new pattern or system which can bring about a balance Delhi and such other cities of South Asia, for the chief between urbanization on the one hand and environment reason that both natural and financial resources of the on the other. valley and the nation at large, are limited. Unlimited expansion of Kathmandu may lead to serious resource- At present, the KMC is burdened with a number of population imbalance pertaining to land, air, water etc., serious constraints, including limited financial resources, as much as to exhaustion of resources. Water resources inadequate administration machinery, shortage of trained have already become precariously scarce necessitating manpower for development planning, and the need to its import from outside the valley. The Melamchi scheme produce immediate results and benefits. The process of has become the only alternative though it weighs heavily consolidation of different development facets within the on the nation's exchequer. It is most unbecoming that KMC is still underway, most of its time being invested Kathmandu has become not only Nepal but South Asia's out of promotion of misplaced and miscalculated economic functions. 9.2.6 Impacts of Urbanization on Environment The process of urbanization will continue to accelerate its pace, and reach its zenith sooner than expected, If the random proliferation of industrialization is not discouraged in the kathmandu Valley. The dual blow of urbanization and industrialization will severely affect the environment both man-made and natural. Irreversible damage will be inflicted upon its cultural assets which are the nation 's pride and subject of global concern and model city oflopsided planning and management, where speculation. the population-resource ratio has reached critical proportions. Hence, the financial limitations on the one Urbanization has also undermined and endangered the hand, and the need to conserve the environment of the natural resources of Kathmandu. Large-scale sand cities like Kathmandu should be amply reflected in a mining in the rivers of Kathmandu has led to a total balanced manner in the nation's development agenda. transformation of the physical contiguity of the rivers, leaving its ugly marks on the cultural landscape along the rivers. Juxtaposing the urbanization activities with 9.2.5 High Social Costs of environmental degradation in order to find pragmatic Environmental Disruption solutions, has never been attempted or accomplished so far. This must be embodied in the CDS repmt for The present system of Kathmandu's development plan is Kathamndu, in addition to sectoral issues such as solid primarily based on production, commerce, tourism and waste management, pollution of air, water, soil etc. The administrative functions. New functions are emerging in question of priority will arise. Will environment · the valley such as education, defense, security, health and protection for Kathmandu at all costs be important or export based industries. Instead of allowing all these to will commercialization and urbanization at a slightly cluster and suffocate in one limited core area, it is more lower level but with preservation of eco-systems be more exigent to look for alternative locations, in the overall important? Once again long-term social costs will have interest of the environment, as these are likely to strain to be brought into focus, and the KMC will have to make the existing infrastructure. The wrong location of a very critical choice to achieve the short-term needs industries, even in the middle of settlement areas, have and yet ensure KMC's long-term prosperity. led to high social costs incurred in addressing the adverse impacts. There has been no quantitative analysis of the social costs as this is absorbed in the total cost of social 9.3. SECTORAL SITUATION services, medical subsidies, environmental improvement, ANALYSIS conservation etc. While this process, to a certain degree can be ignored in some smaller cities, the case with The population growth, land use changes, and the economic Kathmandu, in terms of social costs and inadequate scenario must be seen in the context ofKMC's environment. resources cannot be ignored. The increasing loss of The basic infrastructure in the Katmandu are intrinsically cultural heritage assets and serious setbacks to the related to its environmental quality. While many of the Melamchi water supply scheme, just to mention a few, environmental problems faced by the valley have been are examples of the high cost that the city and the people contributed by inappropriate, inadequate and substandard are already paying. The tourism potential of the city should infrastructure, there is mounting pressure on the existing not suffer on account of environmental hazards stemming infrastructure and is likely to deteriorate further. 292 Table 1: Sources of Solid Wastes Source Typical facilities, activities or locations where waste Types of solid waste is enerated. Residential Family dwellings Food waste, paper, plastics, textiles, yard waste, glass, household hazard- ous waste Commercial Store, Restaurants, markets, office buildings, hotels, Paper, cardboard, plastics, food waste, printshops, service stations, autorepair shops, etc. glass, metal, hazardous waste, etc. Institutional Schools, hospitals, government centers As above in commercial Construction New construction sites, road renovation sites, etc. Concrete, dirt, etc. and demolition Industrial Construction, fabrication, light Industrial waste, scrap materials, etc manufacturing, etc. Municipal All of the above All ofthe above solid waste (Source. Surya 11. Shakyn) 9 . 3.1 Solid Waste Management and Resource Mobilization Center (SWMRMC), Ministry of Local Development of His Majesty's Government. 9.3.1.1 Background B.S. 1995 witnessed major changes in solid waste Historically, waste management in the Kathmandu management when a "Solid Waste Management National Valley dates back to B.S. 1958 corresponding to 1901 Council" was formed under the aegis of MLD and the AD, when the first "Safai Adda" (cleaning office) was role of SWMRMC diminished significantly after the established. With the changing times and increasing formation of this national council. urbanization, the proportion of solid wastes increased and so did its management problems. After a long period Table 2: Characterization of Kathmandu's Solid Waste of localized solid waste collection, disposal and traditional recycling experimentation, a modernized Compnent Year Percentage of Waste (By Weight) 1976 1 1981 2 1985 3 1988 4 1995 5 concept of solid waste management evolved in B.S.l960. Organic Material 67.6 58.2 67.5 57.8 52.2 Paper 6.5 19.3 6.0 6.0 6.0 The concept of organized solid waste management was Textile 6.5 5.3 2.7 2.0 5.0 initiated on the basis of a report prepared by the World Metal 4.9 3.4 2.2 0.4 4.8 Bank dated 11th December 1970 (Flinhoff Report), Glass 1.3 3.4 4.0 1.6 3.6 concerning refuse collection in the Kathmandu Valley. Plastic 0.3 3.6 2.6 2.0 5.4 Rubber/leather 0.0 0.0 0.0 0.4 2.3 Till then, besides street cleaning services, no proper refuse- Wood 2.7 1.6 0.0 0.5 4.4 disposal exercises had been envisaged or initiated. Wastes Bones 0.2 1.8 0.0 2.5 0.3 were thrown into the streets or collected in courtyards Batteries 0.0 0.0 0.0 0.1 0.6 known as Sagaal (fertilizer ponds). There was no Inert Materials 10.0 3.4 15.0 28.9 13.2 controlled landfill site and the entire refuse removed from (Source: IOIC) the streets were tipped at the nearby riverbank. Following the FlinhoffReport (1970), Prof. 0. Tabasaran in 9.3.1.2 Existing Situation 1976, studied the recommendations, of the Flinhoff report and prepared another report entitled "Reorganization of (a) Source, Types and Composition Waste Management in the Kathmandu Valley", revised and With a volume of about 460m 3/day and generation of specified for implementation of a definite project. On the o.45kg per person everyday, solid waste is being basis ofthis report, a waste management concept was outlined managed through the method of dumping in sanitary which represents the foundation for the project agreement landfill sites. Composting of solid waste is planned for of 29th June 1979 between the Nepalese and German the future and it is an encouraging step not only for governments. GTZ, having been awarded the contract by extending the life of the landfill sites but also for B!ViZ, initiated the first organized solid waste management minimizing the problems of leachate, surface water activities under the aegis of the Solid Waste Management pollution and olfactory pollution. ~"' - . '6!TY bt~X3f\tOSTIC .. REPORT-~- -~1;'< (b) Hazardous Waste Suspected in Municipal Waste landfill site for Kathmandu owing to the fact that the In recent year, concern over the disposal of industrially current landfill site at Gokarna is already closed. Efforts derived hazardous wastes has spread significantly. In for identifying and developing a new site in the past addition, there is a growing concern over the disposal few years have resulted in the consideration of many of hospital waste, which may contain serious hazardous sites. However, frequent disruptions in the proposed matter. This has further resulted in concern over the landfill sites d1,1e to obdurate resistance from the local municipal waste, which is a virtual confluence of residents has caused serious setbacks. industrial and hospital waste. What is unknown is the fate of hazardous matter found in municipal solid waste A few years ago, HMG in close collaboration with KMC (MSW) when products such as compost are produced initiated the process of identifying potentiallandfiH sites from MSW or when MSW is placed in landfills that are within Kathmandu Valley. In December 1998, the not properly designed. The long-term effects, if any, on Ministry of Local Development (MLD) formed a task public health and the environment from the presence of force to make a preliminary study of various sites, mainly these matter are yet to be ascertained and established. Ramkot and Syuchatar. The Government selected Syuchatar, based upon the recommendations of the task force report. This site is also facing problems of protests 9.3.1.4Major Problems by local residents. Lack of Sanitary Landfill Site: Other problems include, but not limited to are Choosing the correct location for a sanitary landfill in 0 Lack of Skilled manpower, Kathmandu has been a time consuming process. The 0 Lack of legislative provisions to implement the need has been long felt for the development of a new national policies on solid waste management, 9.3.1.3Response by Various Organizations (i) Sanitary landfill Site: MLD is in the process of finding a proper landfill site within or outside the Kathmandu valley. Previous efforts to find a site within the valley has not yet been successful. MLD has also initiated the process of privatizing the solid waste management. For this, a committee has been formed and the private companies are being shortlisted. (ii) Collection, Transportation KMC plays key role in collection, transportation, and recycling and final and Final Disposal disposal. KMC's efficiency in solid waste management is being hampered by lack of sanitary landfill site. (iii) Street Cleaning KMC is active in cleaning the streets, public places and other historical settlements. For effective management, KMC has devided the city area into 5 sectoral areas. These areas are classified as (i) City core area, (ii) City area, (iii) Western city area, (iv) Eastern city area and (v) Northern city area. Necessary manpower and resources are allocated in accordance with the needs of these sectoral areas. (iv) Sanitation Service The drainage/sewerage maintenance is being partially carried out by KMC. For this, KMC has four jet machine vehicles. KMC generates some revenue from iits services to private parties. (v) Septic Tank Cleaning Service KMC is engaged in cleaning the septic tanks from which substantial amount of revenue is generated. It is estimated that there are 34 thousand septic tanks in the valley. The collected waste is treated in Teku transfer station. Some private companies are also involved in this activity. (vi) Public Toilet Service: There are altogether 14 public toilet systems in KMC. The solid waste management department has contracted out 5 of them to private parties. From this alone, KMC earns Rs.1,34, 101/- per month. Remaining toilets are being run by ward offices. (vii) Manpower and Resource To manage the solid waste and other sanitation services, KMC employs 1300 Mobilization staff at different capacities. There are in total 56 units of machinery compris·· ing of tractors, tippers, road broomers, and water tanks. KMC has 12 contain- ers for waste collection, 10 units of suction and jet machines and 3 vehicles for monitoring activities. KMC spends Rs. 13.5 crores annually in this department out of which Rs. 7.5 crores are spent on management and Rs. 6 crores are spend on infrastructure and maintenance. -~94 EN VI Rdl\l'MENT'" A composting plant, which has been recommended as a necessity prerequisite for effective solid waste management on economic, technical and environmental grounds, can be established by KMC. The only task remaining is to fulfill the land requirement, which is approximately 200 ropanies. The pilot nature of the compost plant, as an integrated package for improved solid waste management, will have significant implications for future projects of this type in other municipalities, especially at Bhaktapur, Biratnagar, Birgunj, and so on. 9.3.2 Air Pollution Solid waste management is suffering due to lack of sanitary landfill site 9.3.2.1Background D Lack of institutional development, The physical setting of the valley which has been aptly D Lack of space for maintenance of equipment, tools likened to a structural trough surrounded by the and vehicles, Mahabharats, that approach 2,000-2,500m, betrays a lack D Lack of adequate number of transfer stations, of what might be termed "natural ventilation" and the D Generally depreciated and obsolete equipment phenomena of "temperature inversion" that traps whose efficiency is less than 60%. pollution particularly during the winter months. As a result, the capacity of the valley's air circulation to absorb 9.3.1. 5 Conclusion and "blow away" pollutants released in the air is extremely limited. Solid waste management in the Kathmandu Valley involves four major activities and they are collection, Past three decades have seen a tremendous increase in transportation, recycling and permanent disposal. It is air pollution mainly caused by the rapid increase in germane at this juncture to make an accurate assessment population accompanied by rise in number of vehicles, ofthe Kathmandu Municipality's successes and failures number of registered kilns and air polluting industry like w[th respect to the landfill site at Gokarna. The the Himal Cement Plant. With the growth in the number achievements in terms of motivating and galvanising the of vehicles and industrial expansion, the consumption public and managing the Go kama Sanitary Landfill Site of coal and automotive fuel too has increased. despite serious deficiencies in certain politically sensitive areas, deserves to be lauded. This good reputation of The comprehensive and systematic baseline data on the Kathmandu and the Lalitpur municipalities, should ambient air quality is virtually absent for Kathmandu. be judiciously utilised as a radiant example of effective The past studies were confined only to record the highest and efficient management of sanitary landfill sites under pollution level on high traffic roadside, industrial state extreme adverse conditions. and residential areas of Kathmandu. Another weakness of these studies was the limitation of data on various air To achieve this objective, it is vital to acquire the needed pollution parameters, and extremely short-duration of landfill sites at the earliest. In this context, HMG in the study, which is not enough to assess the magnitude general and the MLD in particular, must be requested to and extent of air pollution of an entire year, and to obtain consider the following observations. information on seasonal variations. Hence, the lack of information makes it difficult to present an actual status Introduce a long-term recycling plant: of ambient air quality. However, the existing information MLD needs to provide for an effective site preparation, indicate that several pollutants frequently exceed the inJrastructure development, development of effective social, level which are considered safe for human health and political and legal tools and soliciting adequate funds. the perceived ambient air quality is presumed to be rather ,:,' ,' 29'5 h) .~· ·c:t~ Map2 O··. :q -< .. '0 5> Q z 0 C/) -1 0 ;:o m Legend -u - · - · - Valley Boundary 0 =-Road ~ ~River 411 Main Village --Major Air Pollution Site ¢; 0 2.5 5 7.5 10km Scale / {-::. ....._ \ KATHMANDU VALLEY I Major Air Pollution KATHMANDU CITY DEVELOPMENT STRATEGY . Source: ENVIRONMENT Table 3: Ambient Air Quality in Various Areas of Kathmandu Valley Particulate Area TSP(TotaiSuspended PM10 N0 2 S0 2 Particulate matter) 24 hr. 8 hr. 24 hr. 8 hr. 24 hr. 8 hr. 24 hr. 8 hr. average average average average average average average average Commercial Areas 1) Heavy Traffic Areas Singh Durbar 303 532 142 144 37 45 49 72 GPO Area 380 682 137 157 11 24 37 33 2) Medium Traffic Areas Ratnapark 187 300 67 74 32 27 18 19 lainchaur 228 367 103 100 19 25 17 38 Kalimati 391 734 135 154 19 35 77 71 Residential Area Maharajgunj 191 93 72 49 12 15 19 13 Naya Banesewor 200 50 113 31 13 14 25 62 jaya Bageswori 228 341 112 116 49 38 29 119 industrial Area Balaju 108 109 40 40 15 17 31 34 Himal Cement factory (surrounding) 430 - 166 - 38 - 57 - (Soun.:e. Urbmr, 1996) serious in Kathmandu Valley with significantly suspension of particles from dust and refuse on the roads. horrendous changes over the last decade. A substantial portion of the vehicle fleet is in poor condition, overloaded and produces large amounts of visible emissions. Road traffic is quite dense from the city center 9.3.2.2Situation Analysis to the ring road, about 3 kilometers from the center. Atmospheric visibility data from Kathmandu's Airport While agriculture is the primary mainstay of the people, analyzed onwards from 1970 show that there has been a substantial parts of the flat valley floor are used for brick very substantial decrease in the visibility in the Valley production. There are more than hundred brick since 1980. The number of days with good visibility production facilities in the Valley, many of them situated (greater than 8,000 meters) around noon has decreased in areas immediately south and east of Kathmandu City, in the months from more than 25 days per month in the within a radius of 5 to 10 kilometers from the city's 1970s to about 5 days per month in 1992/93. center. Coal and other energy sources are used to fire bricks in these industries, creating significant air A World Bank study on air pollution in Kathmandu Valley polluting emissions. (Urbair, 1996) show that particulate pollution is the most significant problem in Kathmandu Valley. Total TSP A cement plant is situated on the banks of the Bagmati emissions per year amounts to 16,500 tons. PM 10 emissions river, about 6 kilometers south of the Kathmandu City are 4,700 tons/year. The main sources of particulate center. The emissions from this plant affect the air quality pollution are the brick industry (25% PM 10.' 31%TSP); in its neighborhood and may contribute to overall air domestic fuel combustion (25% PM 10, 14%TSP); the Himal pollution in the city, especially when there are southerly CementPlant(17% PM10 , 36%TSP); vehicleexhaust(l2% winds during the monsoon season. Domestic emissions PM I0,3.5% TSP); and resuspension of the road dust (9% from cooking, heating, and refuse burning also PM 10.9% TSP). WHO air quality guidelines (AQG), for contribute to the pollution. TSP and PM10 are often substantially exceeded. There have been measured 24-hour TSP concentrations above 800 mg/ m3 , while the WHO, AQG is 150-230 mg/m 3 • 9.3.2.3 Fuel Consumption Road traffic is an important source of air pollution in Data are not available for every category of fuel Kathmandu because of exhaust emissions, and the re- consumed in the Kathmandu Valley. Motor diesel (HSD) 297 and kerosene (SKO) by volume are the most used liquid fuels in Nepal, followed by gasoline (MS) and fuel oil Table 5: Fuelwood consumption, Kathmandu Valley. (FO). Year 100 t!yr Year 100 t/yr 1983/84 35.9 1987/1888 21.2 The quality of liquid fuel is governed by established 1984/85 40.0 1986/1989 23.7 specifications. Maximum -allowed sulfur contents are : 1985/86 23.7 1989/1990 21[).0 4 percent in fuel oil, I percent in motor diesel, and 0.2 1986/87 29.3 {Source: Devkota, 1992) percent in 93-octane gasoline. Maximum lead content is 0.56 g/1 in 83-octane gasoline, and 0.80 g/1 in 93- octane gasoline. The actual contents of sulfur and lead Brick and cement industries use mainly coal. Table 6 are not known, and may be considerably less than the shows the available data on coal consumption. The maximum allowed. dominant coal consumer in the Valley is the Bull's trench kiln industry. Although data for past coal consumption in Fuel-wood consumption data for Kathmandu Valley is the Bull 's trench kilns are not available, coal consumption given in Table 5. Because of diminishing resources, fuel- has most likely increased substantially, especially since it wood consumption has declined by close to a factor of has almost completely replaced fuel-wood. 2 between 1983 and 1990. Increased use of kerosene and agricultural waste has replaced fuel-wood as the major domestic fuel. 9.3.2.4 Industrial Emissions Coal has replaced fuel-wood in the brick industry. In Industrial growth has been very strong in Kathmandu the early 1980s, fuel-wood and coal were almost equally Valley, especially in the last decade. In 1991/92, there used in the local brick industry. At present the ratio were approximately 2,200 industrial establishments with between coal and fuel-wood consumption is about 7 to more than I 0 employees as compared with I, 504 1(NESS, 1995). industries in 1986/87. Table 4: liquid fuel consumption (1 00 kl/yr) in Kathmandu. Years Gasoline Motor diesel Kerosene light diesel oil Aviation fuel Fuel oil LPG MS HSD SKO LDO FO 1975/75 10.5 30.8 32.2 9.4 11.2 1.8 0.6 1980/81 11.5 57.3 37.3 10.3 16.8 3.0 0.7 1985/86 20.4 80.4 62.2 8.3 23.2 15.8 2.6 1990/91 24.6 135.6 97.7 3.0 19.0 6.3 7.4 1992/93 28.3 156.9 131.1 0.3 28.1 20.3 Chan e (%) 1980-93 +146 +174 +247 +100 +67.3 +576 > ~~ (Source: Gautam, 1994). " ~ ~ Table 6: Coal consumption in the brick and cement industries, Kathmandu Valley (tons/yr) M ~ Bull's trench kilns Chinese (Hoffman) Kilns Hi mal Cement factory 1975/76 2,950 1970/71 3,300 1975/76 2,950 1980/81 1,690 6,400 1985/86 2,200 5,860 1990/91 2,440 7,980 1992/93 21,000 41,00 17,100 1993 43,800 1994 54,800 Sources NESS, ] 995 Devkota, 1992 Shrestha [md ?vtalla, 1993 298 ENVIRONMENT Brick and cement industries are the main industrial ENPHO measurements represents an estimated 24-hour polluters. The number of registered Bull's trench kilns average value of about 1, I 00 mg/m 3 . has increased markedly from 102 in 1984 to 305 in 1993. The rise in the number of smaller industries represents HMS measurements indicate an annual average an increase in the combustion of such fuels as fuel oil, concentration around 180 mg/m 3 at Babar Mahal, 15 HSD and agricultural refuse, as well as some process meters above ground level. This is more than twice the emission .The exact amount of increase in such industrial WHO AQG. At more exposed sites, such as heavily combustion and process emissions is not known. It is trafficked area and around the Himal Cement Factory, believed to have less significance for general air the annual average would be much higher. At KVVECP pollution than the brick and cement industries, but it stations, the WHO AQG values of 150-230 mg/m3 are has led to increased pollution exposure. exceeded by 70 percent for the lower limit, and by 50 percent for the higher limit. No measurements have been taken in the brick kiln areas. These measurements are 9.3.2.5 Road Vehicle Fleet pointers to a severe TSP pollution problem in the Kathmandu Valley, and in Kathmandu City in particular. (Details in Transportation Section) (b) PM 10 concentrations. PM 10 measurements taken 9.3.2.6 Air Pollution Measurement by NESS representing one-hour average samples during daytime at 9 sites, revealed values up to 2100 mg /m3 Non-scientific observations, especially in the dry season, with an average of 800 mg 1m3 • The ratios between indicate the following significant air pollution problems: measured PM 10 and TSP are given in Table 7. The ratio 0.70 is in the range typically found at sites that are not very high roadside air pollution, especially exposed to a high degree of re-suspension. The low PM 10 particles and odor, due to high emission from ratio for the sites (0.4-0.5) indicates that the re- vehicles of all types, and re-suspension of street suspension pollution is high. dust and litter; black smoke plumes from brick kilns; (c) S0 2 concentrations. Results from the KVVECP generally low visibility, especially before noon, measurements indicate that so2 concentration between and September-December 1993 were low. The Kalimati one large point source, the cement factory, has (traffic site) and the Jaya Bageshwori (residential) are highly visible particle emissions. exceptions where the so2 concentration was found to be 225 mg/m 3 • KVVECP measurements indicate that The air pollution concentrations have only recently been although so2 concentrations do not plague the directly measured. The shortness of measurement Kathmandu area, the point sources may create high local periods at each site limits the accuracy of the concentrations. No measurements have been made in measurements. It does, however, provide a picture of areas exposed to brick kiln emissions. the variation in space and time. In 1996, measurements were taken by the Environment and Public Health Table 7: Ratios between PM10 and TSP Organization (ENPH 0 ), (Karmacharya et a!., 1993 ), the KVVECP study (Devkota, 1993 ), the Hydrological and Based on Meteorological Services (HMS) (Shrestha, 1994 ),and Average Concentration Max. Concentration KWECP by NESS (1994). Traffic sites 0.39 0.34 Residential sites 0.48 0.48 (a) TSP concentrations Industrial sites 0.47 The ENPHO measurements showed a maximum of 555 Hi mal Cement site 0.39 mg/m 3 and an average of 308 mg/m 3 at 9 sites Tribhuvan University 0.70 representing Central Kathmandu City air. At 11 roadside (Background sites) ENPHO sites, the measurements showed a maximum TSP of Traffic sites 0.21 2,258 mg/m 3 and average of 1,397mg/m3 • These values General sites 0.29 are based on a 9-hour average and only one sample was Source: KVYECP, ENPHO. taken at each site. The 2,258 mg/m 3 maximum in the ""CITY . . . DIAGf\IOSTIC REPORT... (d) N0 2 concentrations. KVVECP measurements Valley. It contained TSP and PM 10 , which is presented indicate that N0 2 concentrations were generally low, in table 8. The inventory covers main source categories. and well below the 24-hour WHO AQG (150 mg/m 3). The emissions from roadyehicles are relatively reliable The Jaya Bageshwori site had elevated N0 2 and S02 and are based on fuel consumption, traffic activity, and concentrations pointing to a local source. emission factors. Emissions from industrial and commercial activities, other than brick combustion, are (e) Visibility. Observations point to a clear decline in based on figures and emission factors provided by visibility in Kathmandu Valley in the dry season Shrestha and Malia ( 1993). Emissions from Bull's trench (November-March). In the monsoon season, visibility brick kilns have been estimated by NESS (1995). appears to be unaffected. Visibility reduction is mainly Chinese kiln emissions are based on coal consumption caused by particles (aerosol) of the size range and on estimated emission factors. The Himal Cement comparable to the wavelength oflight, e.g. 0.2-0.5 m.m. factory too has added emission figures which are diameter. These are combustion aerosols and contains exceptionally high. (Bhattarai, 1993 ). hygroscopic particles, such as particles containing sulfate (S0 4 ), condensed organic compounds, etc. Thus, the morning fog in Kathmandu is caused by water vapor 9.3"2. 7Air Pollution Impacts absorbed in the hygroscopic aerosol. The damage caused by air pollution has many The relative humidity in Kathmandu Valley is on an ramifications: human health, physical material, vegetation average, over 70 percent throughout the day in the and crops, buildings and monuments, visibility reduction monsoon period (June-September). Even so, day-time and tourism. In theory, the extent of these damages can visibility is not reduced in these months, indicating that be assessed. In practice however, the absence of empirical the concentration of hygroscopic aerosol is rather low dose-effect relation makes this assessment difficult. in the monsoon season. Cost estimates of morbidity are more reliable than the During the winter months, the relative humidity falls estimates for mortality. These consist of foregone wages below 70 percent between 9:00 to 10:00 a.m .. However, and costs of medical treatment. The costs of morbidity visibility is reduced throughout the morning. It improves resulting from PM 10 were assessed specifically for gradually until 12:00 to 1:00 p.m. at which a typical Kathmandu Valley. Morbidity costs are valued at about urban aerosol absorbs water vapor gradually from a NRs 180 million, and total health damage at NRs 210 relative humidity of30-40 percent. Sulfate particles have million (with lost salary as the value of statistical life). a deliquescence point of 72 percent, which means that This valuation of damage approach to human health the relative humidity must approach 72 percent before tends to be underestimated, as suffering due to illness such particles grow substantially and cause visibility or premature death is not included. reduction. Therefore sulfate particles may be a part of the visibility-reducing aerosol. But other types of aerosol, An analysis of the marginal impacts of emission-increase e.g. organic aerosol, make substantial contributions. and reduction by source categories, showed that the heath impacts are mostly affected by developments in the (f) Total emissions. An emission inventory covering transport sector, while domestic sources and brick all source categories was worked out for Kathmandu manufacturing rank second in this respect. Table 8: Main Emissions Sources in Kathmandu (1993) It is difficult to value the damage to Kathmandu's cultural assets such as its temples and monuments. However, TSP PM 10 there is a good reason to believe that tourism has been Himal Cement 36% Brick industry 28% negatively affected by pollution. The annual revenue Brick industry 31% Domestic fuel 25% Domestic fuel combustion 14% Himal Cement 17% from tourism is US$ 60 million. If we assume a reduction Road resuseension 9% Vehicle exhaust 12% of 10 percent, and if the reduction in terms of its impact Vehicle exhaust 3.5% Road resuseension 9% on tourism is proportionally of the same magnitude, the Others 6.5% Others 9% total economic loss related to pollution can be estimated Source: Urbair, 1 996. at roughly Rupees 0.5 billion. ·ENVIRONMENT. 93.2.8 Response 9.3.2.9/nstitutions Involved There has been a growing public awareness concerning Presented below is a list of the institutions responsible air pollution problems. The various activities that have for air pollution control. been undertaken by various organizations are listed below. (i) Coordination •!• HMG/National Planning Commission (NPC) ·:· Environment Protection Council (EPC) Agency Program Impact Remarks H. M.G. Various policy directives and action Significant H.M.G's efforts in dealing with air programs such as Umbrella Legisla- pollution problems are considered sig- tion, formation ofEPC and MOPE etc. nificantly result oriented. EPC Vehicular Emission Control Pro- Significant Nepal's first environmental·standard in gram 1995-1997 the form of emission standard was implemented. The standard was 3% CO for petrol vehicles and 65% H.S.U. for diesel vehicles MOI Industrial emission standards, Significant Valley has been benefited from these industrial location policies, EIA policies. guidelines for industries. Dept. of Road extension and maintenance Less Road conditions are extremely poor and Road significant no extension works have been carried out for past many years. KMC Road widening and overhead Significant Successfully implemented road widen- bridges in core-areas ing project and overhead bridges construction in Tundikhel area. MOPE EIA implementation, displacement Significant Import of vehicles without meeting of Vikram Tempos, vehicle import emission standards have been com- policies, emission standards for pletely banned including 2 stroke vehicles etc. motorcycles NPC Various plans have been addressed To be seen 9th plan emphasises or pollution con- in 9'h plan trol measures, specially for Kathmandu valley Donors World Bank-Urbair (1996) Significant Most of the multilateral and bilateral USAID-Electric Vehicle Program agencies have shown high interest in air UNDP-Vehicle Emission Control pollution control program for Program(l995) Kathmandu Valley. DANIDA-Electric Vehicle Program and Cleaner Production Program for Industries (only notable programs are listed) Home - Vehicle inspections Significant Bold steps have been initiated in import Ministry - Enforcement of emission policies regarding cars and motorcycles. Standards Dept. of - Banning of imports of Significant Polluting and old vehicles are prevented Transporta- polluting vehicles form imports. tion 301 (ii) Monitoring •!• Department of Hydrology and Meteorology ·:· Royal Nepal Academy of Science & Technology (RONAST) ·!· HMG/Bureau of Standards (iii) Emissions Inventories ·:· Department of Hydrology and Meteorology ·:· Department of Transport Management ·:· Royal Nepal Academy of Science & Technology (RONAST), Naya Baneshwor, Kathmandu •!• Ministry of Population and Environment (iv) Legislation 9.3.3 Industrial Pollution ·:· HMG/Ministry of Law 9. 3. 3.1 Introduction (v) Enforcement •!• Department of Traffic Management Management of industrial environment in Kathmandu •!• Kathmandu Valley Traffic Police Valley deserves close attention not only because it has ·!· Ministry of Population and Environment been neglected so far, but also because of the fact that industries will continue to grow in the coming years. 9.3.2.10 Conclusion The small-scale industries such as carpets and garments will grow unhindered if not checked in time. The growth Despite some notable achievements in coping with air of these small industries however can be quite pollution problems, the overall progress has been slow. unpredictable as they depend upon many factors. For A number of constraints are responsible for this slow instance, there was a 300 percent growth of carpet progress, of which the most important are as follows: industry inside valley between the year 1987 and 1991. ·:· Lack of information and comprehensive data on The environmental problems stemming out of these existing air pollution problems and their effect on industries, irrespective of their sizes, will assume health and the ecosystem, unmanageable proportions as they proliferate over the ·:· Lack of environmental law and inadequate sectoral years. Till date, there are no guiding principles to monitor legislation for air pollution control including these industries in terms of their location, outputs and administrative procedures, effluent. There is no effective national environmental •!• Lack of perspective plan in order to manage air policy with an intrinsic doctrine for industrial pollution pollution problem, control which has resulted in a total dearth of pollution •!• Lack of trained manpower and facilities including control and monitoring mechanism. laboratory equipment to deal with air pollution problem, The problem now is one of striking a balance between •!• Lack of programmes to facilitate people's industrial development and natural and heritage participation, conservation. Unregulated growth of industries in a ·:· Lack of comprehensive land use policy and plan, haphazardly growing urban environment is likely to take •!• Lack of industrial emission standard and vehicular a heavy toll of the valley's natural and cultural assets. emission standard of pollutants other then CO, and As such, the rivers are highly polluted and urban growth smoke, has almost completely inundated the heritage 302 ~~~ ,',I Map3 _/' /'._ ., '~'"_/·,(.' ~-- . \ \.. ( \ Legend Carpet Industries s: ~ 0 Moderately Water Polluting Industries "'C w 0 Highly Water Polluting Industries 0 Less Water Polluting Industries ~ ft ... ""C' 0 1: ::::!". :l Cf(l ::::1 ~ c.. 0 1.25 2.5 3.75 Skm 1: riJ Scale ...... .., rs· riJ ,./-' :m z \ < ~- . ) 0 ;J.f z• -~· \.. .m ~- KATHMANDU VALLEY ~z -~ Water Polluting Industries KATHMANDU CITY DEVELOPMENT STRATEGY Source: ·- -- -·~' ·w· CITY D.lf:\GNO$TIC REPORT monuments. While industrial growth is not solely because of their economic dependence, the people are responsible for this pathetic state of affairs, it has severely left with no options but endure the burden and adverse impacted the urban housing and related services. The impacts since relocation or stringent control might time is drawing near when the overall environmental tantamount to closure or loss of job. deterioration and degradation in the valley will adversely affect tourism, which is one of the major economic (c) Magnitude ofIndustrial Pollution in Kathmandu activities in the valley. The issues are highly inter-related The magnitude of pollution in terms oflevel, pollutants, because the location of one industry attracts another, and areas of impact are difficult to assess mainly due to and the dumping of effluents by one industry encourages lack ofboth qualitative and quantitative data on emission another to follow suit. levels of individual industries. The future can be safeguarded only by coming to terms It has been observed that the effluent volume from most with the changing environmental reality, and striking a industries are not large but the concentration of pollutants reasonable balance between development and the are remarkably high. The pollution of Bansbari Khola valley's limited natural resources. The promotion of (river), Bishnumati and Bagmati rivers are notable economic and social objectives, and imposing examples of river water pollution from point source of regimentation to protect the environment, must be made industrial wastes. the bedrock of future imperatives. Air polluting industries include Chobhar Cement, Godavari Marble, Brick and Tile kilns. The effect of air pollution on 9.3.3.2 Existing Industrial Development human health can be seen from the prevalence of high Situations frequency of respiratory diseases among factory workers. (a) Concentrated Growth The detailed impacts of industrial noise pollution among Concentration of industries within a limited space with the factory workers are difficult to assess. However, limited natural resources is indeed a matter of grave concern. workers of garment, cement and metal craft industries The booming carpet industry in the small-scale sector, in have reported gradual impairment of hearing power. the Kathmandu Valley, has demonstrated a high degree export-orientation. Even Lalitpur and Bhaktapur are of Industries as point sources of pollution contribute lesser relevance as compared to Kathmandu where the significantly in the overall deterioration of environmental entire industry is concentrated. There is need to disperse quality inside the valley. A survey of some of the some of these small-scale industries to other parts of the industrial plants in the three major urban centers in country, so that pollution loads and premiums from these Kathmandu Valley shows the following major problems industries are shared by other regions too. This would ease associated with industrial pollution. the valley from the pressure of population growth and would also reduce the pressure on environmental resources. H. M.G. has not yet formulated "standards of Industries such as metal craft and wood craft, based on industrial discharges" which are important for skilled labor might be difficult to disperse to other areas, controlling point source of industrial pollution. but other industries which are resource based and are No effective zoning regulations and hence operating through imported raw material do not have to be industries can be located anywhere at the located in one particular place. Obviously the government convenience of the owners. will need to plan the support systems and transportation facilities needed for such industries in well stratified Due to these existing administrative and institutional industrial areas in other parts of the country. inadequacies, following problems are prevalent in industries. Such as: (b) Lack of Location Guidelines To date, there are no guidelines regarding location of Lack of waste treatment plants/devices in industries. One finds industries operating in the middle operation of high-density urban areas, tourist spots, commercial Inadequate management of drainage and dumping areas and even on prime agricultural land. Convenience facilities of the owner has become the single most important factor Inadequate provision of physical facilities to for location. It is therefore becoming apparent that control indoor/outdoor pollution .304 ENVIRONMENT Other findings: impacts of fuel-wood consumption inside the valley on Medium and large scale industries are dominantly air quality. Hence, the importance of analyzing energy the point source of pollution requirements and consumption within the framework of Most of the industries are found to be manufacturing specific socio-economic parameters which are valley types, followed by a few processing types. Therefore, specific in addition to the perspective from regional and higher chances of pollution by manufacturing national supply capacities become important. industries as these industries are relatively more liable to cause environmental pollution. High per-capita energy consumption inside Kathmandu Industries as point source of pollution is drawing Valley compared to other cities in the country is mostly from much more attention due to the fact that every body the industrial sector. The dominant pattern of economic can readily react to its ill effects. The various growth inside Kathmandu Valley is inter-linked with its problems of urban environment in Kathmandu, disproportionate consumption of energy and environmental such as unmanageable solid wastes, polluted river resources. In general, Kathmandu Valley's industries are systems unsuitable for aquatic life, and unhealthy dominantly resource based and not skill-based. air in the atmosphere has been evidently increasing with the industrial growth since the 1960s. The reason for linking industries with environmental 9.33,4 Major Issue pollution is to a great extent reasonably valid due to increased demand on transportation, energy and Carrying Capacity and Industrial Growth natural resources. Industrial sector, hence, is to Given the condition that Kathmandu will continue to be considered more seriously as this sector is the adopt a liberal policy towards industrial growth, the point source of pollution. increase in small and medium size manufacturing units, if not large-scale industries, will almost double in the 93.3.3 Effects of Industrial Growth next 20 years. The growth of these industries is a threat to normal life in the Valley and hence underscores the (a) Effects on the Natural Environment need to raise the following vital questions. Industrial development in the Kathmandu Valley is causing environmental degradation in the following How much can H.M.G. invest in infrastructure manner: development in the next twenty years? What are the solutions to the water supply needs Worsening water quality in Bagmati and its bearing in mind that Melamchi alone is the tributaries solution at present? Bad odors and degrading air quality Does KMC want to maintain the environmental Excessive mining of construction materials integrity of the capital city? If in the affirmative, Loss of agricultural land who sets the standards? Soil pollution from industrial and household What is the better option for Kathmandu's wastes etc. development, a mixed economy or prioritized Apart from these general issues, effects of industrial tourism economy? wastes on the natural environment of Kathmandu valley In a situation, where the existing basic facilities for are other concrete cases of pollution, which are normal urban life (by Nepalese standards) are not continuing as a result in the absence of proper adequately available, if population and industries environmental management and administration. continue to increase, the conditions of urban services and urban quality of life in Kathmandu are likely to (b) Energy Consumption deteriorate even further. The industrial development and environmental issue is much wider and deeper because, it involves the fundamental rearrangement of energy use patterns by 933.5 Realistic Approaches Towards Future industries. A better understanding of new technologies which are less polluting and are more energy efficient is (a) Environmental Management Long Term Perspective needed. Industrial growth will have to be examined in a Because of various reasons, including the presence of broader perspective based on various parameters which "agglomerate economies" and the absence of economic support the functioning of an industry. For example, the alternatives such as, tourism and agricultural potentials '~os which have not been fully considered, environmental To avoid such situation, land use regulations and legal concerns received very little attention in the past. The provisions should be introduced. interest was directed towards employment opportunities which Kathmandu could generate through unhindered (d) Pollution Control industrial expansion. As is evident today, the impact of The most urgent need in industrial management plan deteriorating environment has been mostly heaped on will be to identify existing industries with high pollution the poor and hence the need to manage the environment loads near the residential areas as the first step in for the benefit of the poor is crucial. pollution control process. Pragmatic and practicable pollution control measures need to be developed without The essential task is to relocate the industries outside requiring major treatment facilities. Major polluting Kathmandu in areas where they are most suited. This must industries inside Kathmandu have not received due be achieved because, Kathmandu Valley's development attention both in terms of socio-economic parameters must be brought into line with its ecological reality. and specific environmental parameters. The lack of socio-economic and environmental perspective runs (b) Improvement ofthe Industrial Infrastructure as through all the industries. Groundwork for Development in Relocating New Industries (e) Sectoral Responsibilities and Limitations ofKMC First of all, for future industrial development outside There remains a serious lack of collective efforts in Kathmandu, appropriate sites need to be identified for environmental administration although a lead agency in locating polluting and such other industries which are the form of MOPE exists. Individual agencies are likely to be detrimental in the environmental interest of responsible to a large extent for the management of the valley. After identifying such sites considering the industrial environment such as Nepal Water Supply long term environmental impacts, and availability of Corporation for assessing water demand and supply natural resources such as water, construction materials, potentials, MLD/KMC for solid and liquid waste land for future expansion etc., roads and drainage management, Department of Roads for assessing road facilities including other support systems need to be network etc. The National Planning Commission should developed. The cost of such initial development activities not only provide appropriate guidelines and formulate could be far less than the cost of remedial measures to government policies towards industrial development, it combat environmental problems and loss of natural should also be responsible for designating appropriate resources on account of industrial growth and resultant responsibility to appropriate sectoral agency with time- environmental degradation. In addition, creation and bound and result-oriented plans and programs. Once an improvement ofhydropower in such new industrial sites appropriate policy and legal framework has been could help in effective utilization of energy which at established to formalize the individual sectoral agency's present is heavily dependent on biofuels and fossilfuels. role and responsibility, a campaign should be launched to enhance awareness among the public, the municipality·· The advantages of relocation of industries are employees, local NGOs etc. If the sectoral agencies are tremendous, such as: unable to meet these targets, they should be made accountable for their failure, and necessary actions could Water needs can be improved inside Kathmandu; be taken forthwith. Population pressure will be reduced; Exploitation of natural resources could be As stated earlier, m the absence of collective redirected from Kathmandu's diminishing sources responsibility, mandated to manage the overall to fresh and under utilized sources; environmental problems of the valley, responses to Dispersion of pollution and profits to other areas environmental issues have remained undefined. The of the sub-region; actual cost for meeting the Industrial resource demands Quality of life and hence tourism could both have not yet been assessed. The municipalities are totally improve. incapable of specifYing even basic ordinances such as its own anti pollution requirements. (c) Land-Use Plans and Zoning Regulations In the absence of an effective land use regulation and In such a situation, lead govt. agencies such as MLD, necessary legal provisions, new industries will continue DOl, MOPE, etc., must come together and assess the to congregate in core areas and will remain unguided. industrial environment. Municipal authorities can only 306 ENVIRONrVl.!=NT lend their cooperation to other central government Shifting priority from industry to tourism makes much age:ncies in implementing their policies. Municipalities sense because, the tourist and cultural values extant in on their own are not equipped with manpower and Kathmandu today, which took several hundred years to financial resources to make significant contribution to develop, can never be replaced by industrial proper industrial management. development. The simple logic is, the cultural monuments of Kathmandu which have stood the ravages Since the sectoral agencies are expected to nurture and of time, cannot be replicated at any other place in their foster industrial management, they will need to create pristine grandeur and splendour. Comparatively, an entirely new system based on the aforementioned industrial establishments can be easily shifted to any observations. This new system will need to take into other location without incurring any kind of loss to the account many parameters for allowing new industries nation. The tourism potential of the city must be tapped to operate, such as: and enhanced properly to ensure better economic growth in the country. •:· Location and its intended use (based on recommended land-use categories by previous (h) Sustaining Over-Consumption by Industries studies on Kathmandu Valley, even if they are not Industrial management in the Kathmandu Valley requires legally binding at present) rationing of the limited natural resources. The forests Availability of natural resources such as water, and river water plays a significant role in bearing much land, construction material etc. of the ambient pollution loads. Hence, preservation of Amount of waste that are expected to be generated forests in surrounding hills in addition to reforestation and its management capabilities at present and efforts are expected to become very important. future possibilities. Consumption and availability of energy etc. Kathmandu Valley, with roughly ten percent of the country's population, consumes an incredible amount These parameters, including the socio-economic impacts of energy and resources compared to the other urban should be studied through an EIA process. centers. The valley's unplanned industrial growth has generated so much congestion, pollution and (f) EIA Procedures population density that the environmental condition The development ofEIA guidelines for establishing new is dismal in most of the core areas. Kathmandu's share industries in the country, being undertaken by MOPE, of resource consumption is evidenced from the provides an excellent institutional step in industrial number of vehicles plying inside the Valley compared management and pollution control, if implemented to the national average. Resources that could not be successfully. The problem of pollution being handled imported at reasonable cost are being extracted by the MOPE is likely to improve pollution control. The locally, and forest products are being brought from Department of Industry should actively support industrial outside the valley. Mining of stones and sand is pollution control through EIA procedures. rampant because the entire landscape is now dotted with buildings of all shapes and sizes. But the (g) Shifting Priority from Industry to Tourism prevailing situation both in terms of environmental Almost everybody knows the importance of tourism to management practices and investment requirements Kathmandu's economy. The gradual loss of tourist will not suffice in future for artificial compensation attractions which are equally evident is a matter of of natural resources. serilous national concern. But, under existing conditions of free industrial development and host of other support The water resources of the valley have suffered activities to run the industries, tourism development and tremendously in the past 20 years. It is likely that its future potentials have been totally rnarginalised. during the coming years, the situation will further Hence, Kathmandu is becoming more and more deteriorate and the valley will face severe water disorganized, filthy and polluted, and less tourism- shortages. The condition of other natural resources friendly. Industries and tourism cannot coexist in the such as air and soil which have otherwise been same place if the infrastructure is not reshaped in a perennial and permanent have suddenly become planned manner. Unless immediate remedial and effervescent. The need therefore is to adopt a holistic redemptive actions are taken, both the sector will environmental perspective in industrial development. eventually suffer. The current management challenges lie in the ;'CITY'·· DIAGNOSTIC REPORT ·~ <-:;:; regeneration of these resources through various cased the situation of chemical pollution is within measures which are feasible. acceptable limits except of heavier iron concentration in some reservoirs and treatment plants. Ground Water quality in stone spouts, dug wells and tube wells is also 9.3.3. 6 Conclusions poor with varying levels of bacterial contamination. Surface water is both chemically and biologically The following conclusions have been drawn from the polluted. Researches have proved that this is mainly due present situation which is characterised by industrial to raw sewage, industrial effluent and solid waste. growth and enviromnental degradation. (a) Large Scale Industries 9.3.4.2Existing Situation Kathmandu Valley is not suited for large-scale industrial establishments because - (a) Tap Water In case of tap waters, total coliform count in most of the Water supply is limited; samples is high, which indicates contamination at the Air circulation is not sufficient; distribution level. The studies carried out in three Limited carrying capacity of existing sections of Kathmandu city show that pollution levels infrastructure; vary with sources of water supply. The different levels Limited natural resources and space. of pollution levels are shown section-wise in Table -9. Hence Industrial management and development strategy (b) Stone Taps should be based on promoting small scale, high value Stone taps play a very important role vyhen there is scarcity added and non-polluting industries. Highly polluting in the piped water supply in Kathm~du City. It has been industries should be discouraged and gradually phased found that the average conductivity values of all stone taps out in the next 20 years. They must be located where are higher than permissible value of 400 ms/cm except in environmental costs are minimum and have less negative few isolated cases. The pH, hardness, chloride, iron content impact on local population. etc, are also not in conformity with WHO standards. (b) Medium Scale Industries The Nitrate iron concentration of most of the samples The industries which require larger space and which rely measured in the past have shown higher than permissible heavily on enviromnental resources and intend to expand values. The higher values in nitrate iron concentration further, should be discouraged, and ways to relocate them may be due to the excessive use of chemical fertilizers. outside the valley initiated. Leachate from solid wastes may also have increased the concentration of nitrate. A study made by ENPHO/ (c) Small Scale Industries DIS VI (1989-1990) on some stone taps of Kathmandu Small-scale non-polluting industries should be city also shows higher concentration of nitrate iron in encouraged inside the valley. Ideally suitable are cottage most of the stone taps. The total coliform count in most industries which are skill-based and labor-centric. of the stone taps are higher than the permissible value. Establishment of industrial zones to suit the environmental and urban characteristics of Kathmandu If a comparison is made between quality of water from is a major challenge. stone taps and piped water supply system, it will be found that both are polluted in terms of coliform count. If chemical parameters are compared, iron concentration 9.3.4 Water Pollution in the water from stone taps are not as high as in piped water, whereas concentration of nitrate iron is much more 9.3.4.1/ntroduction higher in the water from stone taps. The Status of Water pollution as available from studies (c) River and Groundwater Pollution done so far revealed the poor state of Kathmandu valley's This is the most serious environmental problem in enviromnent. The pollution of municipal piped water Kathmandu. The major causes of river and groundwater supply in terms of bacterial parameters is uniformly pollution are discharge of very large volumes of higher than WHO recommended standards. In some untreated domestic sewage and industrial effluent into 308 J::.NVIRONMENT Table 9: Water Quality of the Public Taps in Kathmandu City. SECTION 1 (Kalimati Area) PARAMETERS NO.OF MAXIMUM MINIMUM AVERAGE SAMPLES Mg/1 Mg/1 Mg/1 Chloride 39 89.9 2.5 6.86 Hardness 139 133.5 7.2 42.76 N-NH 3 125 32.6 <0.05 0.615 N-N0 2 125 0.48 0.01 00.06 N-N0 3 125 1.45 <0.10 0.38 P-P04 125 0.77 <0.10 0.15 Iron 71 4.8 <0.25 1.22 SECTION 2 (Baneshwor, Bagbazar Area) PARAMETERS NO. OF MAXIMUM MINIMUM AVERAGE SAMPLES Mg/1 Mg/1 Mg/1 Chloride 84 86 3.8 6.4 Hardness 84 32.6 3.9 22.64 N-NH3 84 1.96 <0.05 0.91 N-N0 2 84 0.62 <0.01 0.06 N-N0 3 84 1.22 <0.10 0.23 P-P04 70 1.16 <0.10 0.12 Iron 43 3.80 <0.25 1.63 SECTION 3 (Lazimpat Area) PARAMETERS NO.OF MAXIMUM MINIMUM AVERAGE SAMPLES Mg/1 Mg/1 Mg/1 Chloride 75 10.3 3.0 5.35 Hardness 75 4704 4.1 28.74 N-NH 3 75 1.66 <0.05 0.33 N-N02 75 0.25 <0.07 0.02 N-N0 3 75 0.86 <0.10 0.16 P-P0 4 75 0.59 <0.10 0.06 Iron 52 7.8 <0.25 1.01 Source: Bottino et al. 1991 Table 10: Fecal Coliform in the Water Samples of Kathmandu City No offecal coliform/1 00 mI. Percentage of Sam pies 0 50 1-10 13 11-100 23 >100 14 Sourceo J<;NPHO/DISIVI (199J.J992) 309. Table 11: Chemical and Bacteriological Characteristics of Kathmandu City Ground Water Composition WHO Standard Tube well Well Spout Well (Bhotahity) (Bhimsenthan) (Dallu) (Hyumat Tole) TemEerature OC 18 17 17 16 EH 6.5-8.5 7.2 7.4 6.8 7.5 DO,m!lL Not less than 6 4 5 4 3 BOD, max, m&l 5. 5 4 4 12 COD, max, m&l 30. 9 7 6.8 18.2 N-NH, max, m&L 1. 0.3 0.54 0.6 0.2 N-NO, m!ll 45. 53 56 55 50 P-PO, m&l 0.25 <0.1 <0.1 <0.1 <0.1 Cl, max, m~l 200. 900 720 680 Chromium, max, M!lk 0.05 Total coliform less than 10/1 00 mI. 0 20 460 4800 Fecal Coliform less than 10/100 mi. 0 15 75 460 Source: CEDA, 1990 the river systems; chemical and biological pollution of untreated sewage of Kathmandu and Patan, and untreated shallow ground water through septic tanks and industrial industrial effluents discharged directly into the Bagmati waste; variable meteorological conditions and reduced river. These processes contribute to the deterioration of "flow" of natural drainage systems during dry periods the self-purification capacity of the river. Clearly, the due to multiple use of river water. ecological balance of the Bagmati within the urban area and down stream has reached a breaking point. Studies show that water quality of rivers is good before these enter the dense urban areas. Bagmati remains Although quantitative information are not available, the highly polluted between Dhobi Khola and Chobhar. incidence of water borne diseases such as dysentery, Bhishmumati is highly polluted downstream of Balaju. diarrhoea and typhoid are reported to be high in Katlunandu The pollution levels of Manohara and Hanumante urban areas. Cholera outbreaks are reported each year and increase after the sewage from Bhaktapur and the the infant mortality rate is quite high. The high level of Bhaktapur Industrial Areas are added to them. Dhobi contamination of the reticulated water supply used by Khola and Tukucha are so highly polluted that the term almost 94 percent of Kathmandu population by sewage river or stream has become a misnomer. Domestic reflects the extremely critical health hazard situation. sewage and industrial effluents entering the river systems Studies on urban basic services made for MLD and remain completely untreated. As a result, there is a high UNICEF in selected wards indicate a total lack of physical concentration of organic, bacterial, chemical and nutrient envirorunent conducive to healthy living (resultirtg from components. The use of pesticides and which is on a problems of drainage, solid waste collection, and water steady rise could become a major problem in river and supply) in the densely populated core areas. groundwater pollution in the future. Although authoritative studies are lacking, the mushroom growth of carpet dyeing and washing is reported to be 9.3. 4.3 Response contributing both to ground and river water pollution as a result of toxic chemicals used in these processes. Compliance with drinking water quality standards, based on WHO guidelines, should provide assurance that the Extreme degradation of the aquatic biological community water supply is safe. However, it must be recognized due to pollution, most notably in the Bagmati river, is in that at present even adequate monitoring is not being the process. River flow and water quality, particularly after carried out by concerned authorities, let alone the Thapathali area, resembles that of an open sewer, and introducing standards. There are many potential bad odor emanating from it particularly during the summer situations - some of which can arise very quickly - that has reached unbearable levels. could cause a potentially hazardous situation to develop. As indicated earlier, the chief contributors to the Many potential problems can be prevented by destruction of the aquatic ecosystem of the Bagmati are safeguarding the integrity of the raw water source and ;no ~if Map4 ~ legend ~ "'C e Ground Water Extraction +> ~ ..e:. 0 .... m )< ,.... Pi l"l ..... i5' ::::1 S, C"l a I:: ::::1 Ql c.., 01234km ~ Seals ft ... m ~ ::0 0 z s: KATHMANDU VALlEY m ·z· Major Extraction of ....; Ground Water Jl KATHMANDU CITY DEVELOPMENT STRATEGY ;~ Source: ...... -,:;~ ... ·~:; ;:,~1TY.:•PIA9NOSTI0~;, 1R~P0RT 0 Table 12: Water Quality Parameters of Different Treatment Plants and Reservoirs of Kathmandu. T.P.1 T.P.2 T.P.3 T.P.4 T.P.5 T.P.26 T.P.7 Conductivity Average mS/cm 383 32 42 127 128 164 180 Minimum Value 205 26 30 33 32 132 132 Maximum Value 570 46 78 154 322 189 187 Hardness Average Mg Ca Co 3 147.9 6.0 8.3 38.5 44.6 36.3 33.4 Minimum Value 106.5 3.3 3.9 6.5 22.0 29.6 33.9 Maximum Value 204.3 9.9 16.0 50.0 144.0 45.9 54.0 Chloride AverageM~l 56.0 4.5 4.5 7.3 6.4 7.4 4 ., •' Minimum Value 3.1 3.0 2.5 4.9 3.1 4.1 2.8 'il Maximum Value 113.8 6.4 7.1 10.4 42.5 10.1 7.8 Nitrogen Nitrate AverageM~l 0.75 0.04 0.01 0.07 0.21 0.01 0.01 Minimum Value <0.10 <0.10 <0.10 <0.10 <0.10 <0.10 <0."10 Maximum Value 2.17 0.62 0.10 0.65 0.52 0.10 0.10 Introgen Nitrate AverageM~L 0.967 0.002 0.000 0.004 0.009 0.008 0.001 Minimum Value <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 1i Maximum Value 5.025 0.033 0.000 0.023 0.130 0.022 0.0111 H) v Nitrogen Ammonia ~ 1: AverageM~ 1.46 0.00 0.16 0.24 0.29 1.36 1.04 \1 %>:! Minimum Value Maximum Value <0.05 5.85 <0.05 0.00 <0.05 0.70 0.05 0.63 0.05 0.93 0.55 3.20 0.07 1.51 I :;m Iron AverageM~l 0.00 0.27 0.37 0.73 0.70 3.30 1.68 Minimum Value 0.25 <0.25 0.25 <0.25 <0.25 0.56 0.00 Maximum Value 0.00 1.50 1.42 1.60 1.62 8.10 2.76 Phosphorous As Orthophosphate AverageM~L 0.027 0.000 0.005 0.089 0.225 0.275 0.173 Minimum Value <0.10 <0.10 <0.10 <0.10 <0.10 <0.10 <0.10 Maximum Value 0.33 0.00 0.10 0.25 0.20 0.68 0.52 f:@ Total Coliforms Average or~100 ml 154 3 2 9 51 0.1 1 :1 Minimum Value 0 0 0 0 0 0 0 Maximum Value 1500 80 50 90 400 2 7 No. of Samples was between 20-25,except for iron, where no, of sample was in the range 10-15. Source: Bottino el.al. (1991). T.P.l Sundarighat Treatment plant T.P.2 Sundarijal Treatment Plant T.P.3 Mahankal Chour New Reservoir T.P.4 Maharajgunj Reservoir T.P.S Balaju Treatment Plant T.P.6 Mahankal Chour Old Reservoir T.P.7 Bansabari Reservoir .:it"tt~t:.y;;31~i.,¥.i&~~" ~'~l~ r I MapS legend ~ Mahankal Chaur DIDJ Bansbari and Bhajangal Bsalaju WJ Maharajganj - Saibu and Tahakhel IIIli Bode-Thimi and Bansbari ITITIIill Kirtipur ~ The Transmission Lines 3:: Ill D Reservoir "'0 -·-.""\ 1 Bansbari (Bhaktapur) IJ1 I 2 Katunje .. F'\"1 3 Bode 4 Mahankal Chaur ~- 5 Bansbari (Kathmandu) "' :l CfQ ~r\! 6 Maharajganj 7 Balaju - 8 Kirtipur ~ ...... 9 Bhajangal 1'1) 10 Saibu ... V'l 11 Tahakhel 1: "C "'0 ~ V'l '< "' 1'1) 3 $ I - 0 2 4 6 Bkm Scale KATHMANDU VALLEY Existing Water Supply System KATHMANDU CITY DEVELOPMENT STRATEGY Source: u ':;,,::>J-Yb:~, its watershed by proper maintenance and inspection of minimum recommended limits of water quality standards the treatment plant and distribution system, and by from NWSC. In order to define such limits, it is consumer education. KMC at present has virtually no necessary that KMC initiates an agreement with NWSC, role in quantity and quality of water supply in its considering the local, environmental, social, economic, municipality. It is essential that water suppliers and KMC and cultural conditions. should be made responsible for the following activities: The main reason for not promoting the adoption of a) Periodical reassessment of water supply to ensure standards for drinking-water quality is the inability of that conditions that could affect the quality of suppliers to implement the standards. In such a situation, water have not changed; feasible and simple standards, to begin with, can be b) Periodic maintenance initiated. Considerations of policy and convenience of c) Repairs and renewals of systems, the suppliers should never be allowed to endanger public d) Revenues collected are substantially reinvested in health, and the implementation of some respectable water supply systems. standards and regulations should be the top priority of KMC and suppliers alike. It certainly will require a fair A discussion of these important facts of water supply degree of commitment on the part of HMG to provide is outside the scope of CDS, but it must be noted suitable facilities and expertise as well as the appropriate here that KMC should be made an important legislative framework. collaborator in water supply improvement programs and cannot remain isolated from NWSC. Water is essential to enhance the quality of life in KMC, and satisfactory and sufficient supply must be made At present, there is acute deficiency of water supply in available to consumers. Every effort should be made to Kathmandu Valley, though there are enormous resource improve the quality of drinking-water. Protection of water potential of water outside the valley. Some of the ongoing supplies from contamination is the first line of defense. and proposed projects for quality improvement, reduction Secondly, contamination at the distribution system should of leakage and increase in supply, may solve the problem be prevented through immediate treatment. A potentially partially. The Melamchi water supply scheme is a major hazardous situation should be immediately corrected, solution and is in the process ofmobilizing fimding sources. specially in the distribution system. In the case of stone taps, some control measures or treatments Microbial contamination is another important issue and are necessary to be undertaken to preserve and protect the must never be compromised. The assessment of risks sources of these taps from pollution and extinction. associated with variations in microbial quality is difficult and controversial because of insufficient epidemiological The water quality of rivers in Kathmandu Valley is evidence, the number of factors involved, and the deplorable due to various reasons. In the present context, changing interrelationships between these factors. In one of the serious cause for the pollution of the river general terms, the greatest microbial risks are avoided water is due to the absence of proper collection and by continuos and consistent monitoring. Though disposal of domestic wastes and discharge of effluent Microbial risks can never be entirely eliminated, it can without treatment. Proper disposal sites have not been always be minimised. finalized in Kathmandu City yet. In order to avoid further deterioration of river water and aquatic life, solid waste The health risk factors due to toxic chemicals in drinking management will be a good beginning, followed by water has not yet been thoroughly studied. The fact that introduction of effluent management and enforcement chemical contaminants are not normally associated with ofbasic standards. acute and immediate effects, places them in a lower priority category than microbial contaminants, the effects of which are usually widespread. Therefore it can be 9.3. 4. 4 Conclusion reasonably argued that chemical standards for drinking water are of secondary consideration in juxtaposition to The primary aim of the KMC is safeguarding and severe bacterial contamination. protecting public health. Water supply plays an important role in realising this primary goal. It must be emphasized KMC can and should legitimately demand drinking- here that KMC should initiate the process of demanding water limits or standards from its suppliers. However, 314 ENVIRONMENT 9.3.5 Noise Pollution Table 13: Bacterial levels in Kathmandu Drinking Water locations Coliform Bacteria/ 100 ml Water 9.3. 5. I Introduction May/June july/Aug Nov/Feb Noise pollution in the Kathmandu City is reported to be Summer Rainy Winter on a steady rise. The major sources being vehicular WHO Standard < 1 Coliform per traffic, air traffic and industries that are inappropriately 100m! located (in school or residential areas). In areas such as As han 11 460 0 Balaju Park 0 Ratna Park, Bir Hospital, Thapathali and Teku, noise 0 0 Bhimsenthan 9 15 3 levels during heavy traffic hours exceed 100 dBA. Noise Bhimsenthan (Well) 20 15 () control measures neither exist nor are reinforcing Baneshwor Chowk 0 0 9 mechanisms in place. In the absence of regulatory Bag Bazaar 15 15 3 mechanisms and controls, noise pollution will remain Bhotahi!): 3 75 15 an environmental hazard in the Kathmandu Valley. Bhotahi!): tubewell 0 0 0 Chhetra~ati Chowk 15 20 0 Chikamugal 75 15 43 Dallu 150 240 9 9.3.5.2 Transport Noise Dallu (Seout) 75 460 43 Dharahara 3 3 0 Of all present sources, surface transportation is the most Dilli Bazaar 9 3 0 pervasive source of noise pollution and is likely to Ganabahal 20 75 15 become worse as the number of vehicles increase. Gzaneshwor 0 3 0 Among these vehicles, power tillers, buses, heavy trucks Gzaneshwor Well 15 43 0 HzumatTole 240 75 75 and three wheeler tempos are significant contributors to Hzumat Tole Well 460 4800 20 the high noise level in built-up areas of kathmandu. In Kamal Pokhari 15 15 0 addition, aged and poorly maintained automobiles have Kalimati 240 75 9 aggravated the noise problem. Table-14 shows the lainchaur 0 0 0 various noise levels at different sites in Kathmandu. On Maruhiti 15 15 0 the busiest roads around the city, noise levels sometimes Naradevi 20 240 9 exceed 100 dB A. (Shrestha and Shrestha, 1985; ,\Jaradevi well 240 460 3 i\laxal Chardhunga 15 9 0 Manandhar et. al.l987). Noise level in front of the Tri- Om Bahal 93 75 3 Chandra Campus, for instance, is twice the accepted lf>aknajole 15 9 9 standard (40-50 dB A ) for residential area. Thai hi!): 0 3 0 :rhahitz (well) 0 3 20 The excessive noise level is the result of inadequate :rri~ureshwor 93 75 3 mufflers being fitted to vehicles, the large number of 'vVotu 0 3 0 Source: CEDA 1990 noisy two-stroke vehicles and heavy traffic congestion in the city. There is no vehicle maintenance regulation in Nepal and older vehicles tend to produce more noise ·'Enforceable standards" are the key to its implementation. causing significant health hazard. The study of the Road Because NWSC, is severely limited in resources, both Transport Industry reflected that 38 percent of trucks human and fmancial, it is even more important to establish and 45 percent of buses plying on urban areas are older priorities, and this should be done by considering the than 15 years (KVVECD, 1993). All these have impact on health in each case. Many parameters will have aggravated noise pollution. to be considered while assessing water quality of KMC such as, source, treatment efficiency and reliability, and Aircraft produces very high level of noise, although protection of distribution network (e.g. corrosion control). variable and intermittent. Aircraft noise in the vicinity The costs associated with water quality surveillance and of the airport has not been measured and its impact on control must also be realistic. people's health has not been examined so far. 315 9.3.5.3/ndustrial Noise 9.3.5.5Efforts and Achievements The growth of industries inside the valley in general, Though there appears to be no specific policy regarding have resulted in considerable increase in noise pollution. noise pollution before the formulation of the Eighth plan Some studies carried out in the past reveal that the major ( 1992-1997), a number of general policies and strate:gies noise polluting industries include garment, steel covering environmental management could be workshop, saw mills etc. interpreted as relevant to noise pollution. They are: Different industrial machines and processes produce (a) to set national pollution standard (Seventh and varying levels of noise. Sporadic studies conducted in Eight Plan), some of the industries give some indication that indoor (b) to minimize the effects of environmental pollution noise pollution levels are fairly higher than outdoor while establishing, expanding and diversifying noise. In Textile, metal and saw mills, the workers are industry (Industrial Policy, 1992), directly exposed to the hazard of indoor noise pollution. (c) Zone industries to minimize the effect of industrial But in the factories like metal craft industries, besides pollution in urban areas (Industrial Promotion factory workers, the local people are also adversely Committee, 1989), affected due to indoor as well as outdoor noise pollution. (d) to minimize industrial noise through control The reluctance of workers in using earmuff as noise measures and standards (Industrial Policy, 1992) etc. control measure and the operation of machinery in high pitch further compound the problem of pollution. Specific concern with noise pollution was first articuilated Technically, noise reduction can be achieved at the in the Eighth plan ( 1992-97) with the following policies: source by technically modifying the machines and by introducing "damping device" (earplugs or muffs). The existing condition of noise pollution will be However, much quantitative works are still required to investigated and analyzed to prepare indicators, manage noise pollution and to control the occupational standards and guideline; hazards. Causes of noise pollution will be investigated through "on the spot observation" and management plan will be formulated to control 9.3.5.4 Community Noise pollution and Environment protection will be ensured in urban InN epal, there is very little information on the extent of areas enacting laws for prevention and control of disturbance from community or neighborhood noise. noise pollution. However, the recorded noise level (73-80 dBA) at the market area of Asan indicates that the noise level is high 9.4 ANYLYSIS Of POLICY AND exceeding the limit for community noise in residential LEGISlATION area. Acceptable level is regarded as 49-50 dBA for residential areas and 50-60 dB A for residential area near 9.4.1 Relevant Policies shops and factories. There are no regulations dealing with community noise pollution in Nepal. Several national policies address the issue ofKathmandu Valley's environmental pollution. However, these policy measures have yet to be Table 14: Noise level in Different Sites in Kathmandu. implemented adequately. S.N. locations Noise level(dBA) Year Remarks Some of the Kathmandu 1. Trichand Cam~us 80-90 1985 Educational area Valley specific and 2. Amrit Science Cam~us 75-85 1985 Educational & Residenteal area recent national policies 3. Ratna Park 72-91 1985 Bus ~ark & Market addressing 4. Bir Hos~ital 90-95 1985 Hos~ital area Teku 85-100 1985 Business locali!}: environmental pollution 5. 6. jochhen * 82-100 1985 Business locali!}: include the following: 7. lazim~at • 80-98 1987 Market & Residential area 8. Putalisadak * 82-98 1987 Residential area •:• Recently, on the 9. As han 73-80 1985 Market area occasion of UN Source: Shrcstha, C. B. & Shrestha, G.B. 1985;'"" manandlwr, M.S. et.al.,l987 Conference on Human Settlements (Habitat II), the (then) Ministry of central government incapable of providing land for a Housing and Physical Planning (now Ministry of much needed recycling plant?". This problem has been Physical Planning and works) prepared a draft perceptible in the Kathmandu Valley since past five action plan for managing Kathmandu's years. The participatory inputs of the individual, group, development. The proposed activities for the industrial units, NGOs, Social institutions are expected duration (1996-2000) enlists some issues such as: at the local level and they are supportive. However, in (i) Need for effective linkages of environmental the absence of a final site for recycling and disposal of policies; residual material, all the efforts are being aborted. (ii) Mitigation actions such as: a) air pollution monitoring system Solid Waste Management National Policy has been b) disposal practices of hazardous and infectious formulated specifYing the five major objectives: waste and c) prevention of pollution of surface and ground Make waste management simple and effective; water Minimize pollution and control effects of waste (iii) Institutional/regulatory framework related to on public health; •:• Mobilize waste as a resource; a) inadequate legislation Privatize waste management; b) institutional strengthening; and Raise public awareness and initiate participation. c) interventions for environmental improvement in Kathmandu Valley focusing on better water The policies enumerated are: management of the Bagmati river system, air ·:· Promote skill among local agencies in the quality management and industrial location policy. management of solid waste; Another development is the formation of a high level ·:· Initiate extensive awareness campaigns to avail Kathmandu Valley Development Council with 49 peoples' participation in cleaning activities; members, most of whom are ministers and secretaries ·:· Engage non-governmental and social organizations; from various ministries. The Council was formed to •!• Develop the concept of cleanliness based on coordinate development efforts in Kathmandu and appropriate technology that are applicable locally, work out integrated plans for the valley as a whole. promoting social ethics and considering economic ·:· Apart from these, the policy area coverage may aspect; be briefly stated as follows: Manage the site for fmal waste disposal considering I. reduction of population growth, (Industrial the nature and amount of the solid waste; relocation) Transform solid waste into resource through re- II. improve quality, coverage and delivery of urban use and treatment of the waste; water supply; (Melamchi scheme) Develop an economically self-contained III. Improving institutional arrangement, functional management system; coordination and entrusting responsibilities to •:• Continue privatization of solid waste at various local level decision makers; (Local Self stages; Governance Act, 1999) •!• Encourage self-reliance in cleaning activities; IV. provide legal measures to prevent and control air/ ·:· Initiate local agencies to implement cleaning water pollution; (EIA made mandatory for various activities in a prioritized manner and ; projects) ·:· Act effectively to minimize solid waste. V. integrate environmental consideration with development objective as well as economic The strategies to be adopted are: incentives to encourage environmentally benign I. Initiate people's participation activities. (9'h Plan,l997-2002) II. Develop simple but effective technology; III. Mobilize the waste as the resource; and 9.4.2 Sectoral Policies and legislation IV. Encourage privatization of solid waste management The National Council for solid waste management has 9..4.2.1Solid Waste Management been constituted under the Chairmanship of the Minister for Local Development, with representations from One of the main problems regarding the management relevant ministries a!fd agencies. The Joint Secretary of of solid waste in Katlnnandu is the question "why is the the MLD functions as member secretary of the Council. .;~lTY 1DIAGI)JPSTIC REPORT. Critical Appraisal 9.4.2.4Water Pollution •:• It is not clear whether the policy is focused on the management of domestic waste only or on The important policy and legislation regarding water domestic and hazardous waste emerging from pollution in Kathmandu are: hospitals, industries and such other sources. (i) National Conservation Strategy (NCS), Although the policy mentions public participation (ii) Nepal Environmental Policy and Action Plan and the involvement ofNGOs in managing waste, (NEPAP), the relevant modus operandi is not stated. (iii) Aquatic Animals Protection Act, 2017 (1960), The policy does not mention incentives for (iv) Solid Waste Management and Resource Mobilisation promoting recycling. Act, 2044 (1987), Regulation 2046 (1989), The policy calls for the formation of a new central (v) Pashupati Area Development Trust, 2044 (1987), agency with waste management functions but it (vi) Kathmandu Valley Development Authority Act, does not elaborate on the need to strengthen the 2045 (1988), municipalities, apart from manpower development. (vii) Nepal Water Supply Corporation Act, 2046 (1989), (viii) Water Resources Act, 2049 (1992), and 9.4.2.2Air Pollution: (ix) Industrial Enterprises Act, 2049 (1992), (x) Local Self Governance Act, 2000 The main sources ofair pollution in Kathmandu are vehicular The Pashupati Area Development Trust Act 2044-Sec.l4 emission and emissions from industries such as Himal provides for sewerage management through pollution control Cement and the brick Kilns. Except the vehicular emission measures and by managing water supply, watercourses and control regulation, there are very few legislative measures sewerage system etc. The Act is limited to the protection, to regulate pollution from sources other than vehicles. conservation and management of the environment of only a small part ofthe Bagmati River. Functional duplication with the municipal, NWSC, SWMRMC and KVDA 9.4.2.3/ndustrial Pollution responsibilities are major obstacles in the Act. The Industrial Policy, 1992 and Industrial Enterprises Act, 1992 list air pollution prone industries (such as 9.4.2.5 Noise Pollution cement, brick and stone crushing) as "industries affecting public health and environment" and require them to There is no specific legal and administrative mechanism obtain permission for their establishment, extension and to deal with noise pollution. However, the Civil Aviation diversification. Act 2015 (1958) contains provisions for the control of sound from aircrafts and the Explosives Act 2018 ( 1961 The National and Industrial Sector EIA Guideline, ) also provides for the control of noise from the use of which have been endorsed by HMG and are now explosives. There is no legislative provision to control being implemented, require EIAs for large cement or mitigate excessive noise from vehicles and industry and brick industries. and to limit noise at the sources (Joshi, 1991). The 64th meeting of the Industrial Promotion Board Due to the lack of clear-cut policy guidelines and on Jesth 29, 2046 (11 June 1989) categorized standards regarding noise pollution, no spedfic industries into two groups on the basis of the pollution programme has been implemented so far. created by them. Industries in category "A", which will not be allowed to be located in the Kathmandu Valley includes the cement industry. 9.4.3 Existing legislation and theirr Enforcement Although the above mentioned measures may be effective in preventing industries which cause significant 9.4.3.1 Environment Protection Act. 2056 (19'96) air pollution due to their location in Kathmandu, they do not address the need for abating the pollution caused Recognising the need for overall environmental by the existing industries. This requires effective protection legislation, the parliament has ratified an enforcement of emission standards and encouragement Environmental Protection Act, which .is an umbrella Act of waste minimisation practices. in the environment sector. •31~ 9.4.3.2 Motor Vehicle and Transport constitute a national Policy and regulatory M·anagement Act, 2049 (1993) framework, there is an immediate need to: Pursuant to Section 23 of the Act, HMG specified the a) provide a legislative basis for KMC 's following standards for diesel and petrol engine vehicles representation in EPC. on 1'' August 1994: b) strengthen municipal taxation and revenue generating powers to KMC; •!• Smoke emitted from diesel-engine vehicles should c) classify jurisdictions ofKMC over water supply, not exceed 65 HSU (Hartridge Smoke Unit) sewerage, roads, solid waste etc. in tune with its •!• Carbon monoxide emission form petrol-engine acceptance of full responsibilities of these areas vehicles should be limited to 3% of total volume. of activities; d) classify MLD's jurisdictions to avoid overlapping; e) initiate land use planning and zoning regulation by 9.4.3.3Solid Waste Management and KMC, in association with central govt. agencies. Resource Mobilisation Act, 2044 (1987) amended 2049 (1992) 9.5. INSTITUTIONAl FRAMEWORK, This Act is formulated primarily to manage the waste RESPONSIBILITIES generated in the cities, and to promote recycling of the waste. Ensuring public health safety and maintaining 9.5.1 Parliamentary Committee the city free of solid waste are the major objectives. The Lower House of Representatives have a Committee on Natural Resources and Environment 9.4.3.4 Industrial Enterprise Act, 1992 which looks after legislation pertaining to natural and Industrial Policy, 1992. resources and environment before it is submitted to the parliament. Both the policy and the Act emphasize the need to develop traditional cottage industries in Kathmandu. The environmental protection measures are discussed but 9.5.2 National Planning Commission detailed regulations have not yet been formulated. The National Planning Commission (NPC) formulates overall national policies, development plans and 9.4.3.5Nepal Water Supply Corporation strategies for environmental protection. A member of Act, 1989 the NPC has been given special charge of updating environmental policy and sectoral coordinated planning. This Act established the Nepal Water Supply Corporation (NWSC) as the legal authority, It plays an important role in achieving sectoral giving it enhanced powers to set and enforce coordination in development planning and in integrating water fees, prosecute illegal connections and environmental concerns into the development process. prevent misuse of drinking water within 12 towns In reviewing sector plans, it ensures that environmental including the KMC, which also falls within its impacts are assessed as part of the national plans. The jurisdiction. It assigns responsibility to the NPC Secretariat has a Population and Environment NWSC for providing urban water and sanitation, Division, headed by a joint Secretary, to provide the controlling water pollution and, empowers and necessary technical inputs and coordination. directs the NWSC to build and maintain urban sewerage systems. The NPC's role in coordinated consultations with various agencies in the sphere of legislative formulations, institutional updating, and mobilizing resources for 9.4.4 Concluding Remarks: implementation is crucial. Furthermore, its primary responsibility is to ensure sectoral programme Beyond the consolidation of the disparate and implementation, which are related to the regional and fragmented laws into a consolidated form which national development targets. 319 The Council for Kathmandu Valley Integrated Kathmandu Valley, to ensure healthy and productive Development has reposed the collaborative and relevant development at the national, regional, urban and village environment protection responsibilities to the NPC in levels through management procedures involving the following manner: existing agencies and beneficiaries. The Council is stewarded by the Right Hon'ble Prime Minister with a (i) Land use planning for the Kathmandu Valley; Member Secretary drawn from the MPPW, and is (ii) Avail essential institutional services to help in relocating represented by ministers, the NPC, Municipalities, the industrial establishments outside Kathmandu; District Development Committee and FNCCI. (iii) Work out appropriate incentives for relocation of industrial establishments from Kathmandu Valley; From the standpoint of infrastructure, this Council is (iv) Improvement and extension of essential services more potent and influential. It is expected to emerge as such as: a viable and competent institution, and obtains authority •!• Melamchi Drinking Water Programme through the mobilisation of legislative instruments as implementation; and demanded by diverse situations from time to time. •!• Construction of sewerage services for greater Kathmandu. 9.5.5 line Ministries 9.5.3 The Environment Protection Council (EPC) 9.5.5.1Ministry of Population and Environment (MOPE): Seventh Five Year Plan addressed the need for an institution which is competent to coordinate and lead the multi-sectoral As per HMG decision (November, 1995) MOPE has centres. The Environment Protection Council (EPC) was the primarily responsibility of: constituted in March 1995 and with the emergence of Formulating and implementing policies, plans and MOPE, the nature and scope of its responsibilities have programs; been recast into a high level policy enunciating body Preparing Acts, Regulations and Guidelines; mandated to execute policies. The EPC which has Conducting surveys, studies and research; representations from relevant ministries, the RONAST and Disseminating information and carrying out experts who are involved in environmental activities, is publicity; chaired by the Rt. Hon'ble Prime Minister, with the Monitoring and evaluating programs; Secretary of MOPE as its Member Secretary. The scope Developing human resources; and and nature of its responsibilities are enunciation of policies Acting as a national and international focal point and legislation covering areas such as: in the domain of population and environment. Population pressure The scope of work of the Ministry has been divided Haphazard settlement into two domains and they are Primary and Negative impacts of developmental activities Supportive functions. Primary functions are executed Environmental Planning/Legislation/EIA/ at the Ministry's own initiative with the co-operation Pollution control of other agencies as required. Supportive functions NGOs and coordinate linkages constitute cooperation and help to be extended to •!• Environmental information and other ministries and agencies in executing their •!• Capacity building programs and activities. The Secretariat of the EPC remains now with the Ministry of Population and Environment availing the developing facilities contained therein. 9.5.5.2 TheMinisbyofLocalDevelopment(AfLD) Its primary mandate is integrated rural development 9.5.4 Kathmandu Valley Development through local bodies at the district, municipal and village Council (KVDC) levels. Resource management, environmental concern, waste minimisation and pollution control are being The major objective of the KVDC is to make creative incorporated in the programmes and activities of the local contributions to the urbanisation process in the bodies through its coordinated mandate. ENVIRONI\JlENTh 7 · 9..5.5.3Ministry of Industry (MI) municipalities are loosely organized, generally along functional lines such as tax and revenue collection, The Ministry plays a pivotal role in the formulation building permits, planning and engineering, of pollution abatement policies and coordination. It sanitation, administration and accounts, litigation, and has a separate cell for "Environment and Technology inspection. Transfer" which looks after all the policy related works of industrial pollution control. The Department The major activities of the Municipalities include: street oflndustry (DOl) and the Department of Cottage and cleaning; waste management; maintenance of water Small Scale Industry (DCSI), have such supply pipes; clearing mud and blockages in sewer lines; environmental cells. approving septic tanks; minor surface drain construction; street lighting; city management; granting building The functions of these cells are: permits; and some other health and sanitation related (i) to enforce the discharge standards; activities. (ii) to critically examine EIA and IEE; (iii) to issue permit to the industries; and Under the local self-governance Act, 1999, the (iv) to monitor the discharges. responsibility assigned to the municipalities can be put in the following categories: The Nepal Bureau of Standards (NBS) is the technical arm of the pollution control mission. It is responsible •!• Protection of monuments and public places for standard setting, laboratory testing and examining/ ·:· Urban planning and development supervising the audit reports. NBS also has a separate ·:· Health and sanitation Environmental Analysis Cell. The DCSI district •!• Birth and death registration offices also act as a focal point to receive public ·:· Construction and transportation complaints locally. •!• Social welfare ·:· Drinking water and electricity The Kathmandu Valley Development Council has been •!• Environmental heath and improvement allocated responsibilities such as: ·:· Administrative and miscellaneous (a) Selection of appropriate sites for relocating The Kathmandu Valley Development Council has industries of the Kathmandu Valley and to work reposed the following responsibilities to the out required facilities as incentives to such municipalities: industrial establishment which are being relocated •!• Delineating the boundaries of rivers and water outside Kathmandu; ponds to thwart encroachment on public land; (b) Management of brick/tile factories existing in the ·:· Delimiting further fragmentation of the land valley; and holdings. While transacting land, the size of the (c) Regimenting the use of plastics and bottles. plot must be at least one-fourth of a ropani and construction in such a small plot should not exceed 9.5.6 local Governments 50 per cent of the area. 9. 5. 6.1 Village Development Committee 9.5.6.3District Development Committee (VDC) (DDC) There are scores of village development committees The Kathmandu DDC has 9 members, one each from surrounding KMC, which are the grassroots level local nine Ilakas (a political boundary within the District), govermnent bodies. headed by a Chairman, and a Vice Chairman who officiates in his absence. They are indirectly elected by the VDC leaders. The DDC Secretariat is headed by the 9.5.6.2The Municipality Local Development Officer (LDO), who is deployed by the MLD. The LDO executes local development The Municipalities of Kathmandu, Patan, Bhaktapur, activities and coordinate other local development bodies. Kirtipur and Thimi are the major areas of the valley's The DDC includes a Chief District Officer (CDO) who urban environmental concern. The valley is an appointee of the Home Ministry. 321 9.5.7 NGO Sector (a) Coordination and communication: The institutions, which are involved in governing, NGOs have been functioning in Nepal since the early planning, and servicing, operate at the national, regional, 1960s in the form of welfare associations such as Family district, municipal and village levels. The levels of Planning Committees, Nepal Red Cross Society etc. operation, organisational limitation, priorities and More coordinated activities of the NGOs started only concern, jurisdiction and authorities are variegated, after the constitution of the Social Service National mutually overlapping and contradictory. Therefore, there Coordination Council (SSNCC), and the subsequent is urgent need to stimulate and/or enforce the agencies promulgation of the Social Service National to integrate their efforts and commitments to work out a Coordination Council Act in 1977 by His Majesty the cohesive and pragmatic plan of action. King. The SSNCC consisted of six sub-committees, spanning Health Service, Handicapped Service, Child (b) Clarity in roles and responsibilities: Welfare, Community Service, Youth Activities, and The major role to be played by a particular agency, Women Service. All the social/voluntary organizations collaborative obligations of the other sectors as well as were to be registered in the council. the extent of responsibilities must be clearly defined. The problems that arise at the implementation level on A number of non-governmental organizations are account of the overlapping of jurisdiction and authority working as interest and pressure groups for enforcement between the concerned Ministries, cause severe setbacks of discharge standards and relocation of some industries and hindrances to the actual performances of the national from Kathmandu Valley. and local agencies. (c) Need for effective national policies: 9.5.8 Potential Groups (Stakeholder) There is need for Water Resource Conservation and Management Policy, Industrial Location Policy as well The different interest groups involved in the as Urban Industrial Development Strategy, to ensure environmental programme are mentioned below: proper urban management and population distribution, •!• The public at large, who provide input during plan planning of the industrial locations and devising formulation and subsequent implementation; meaningful measures for pollution control. Private sector project proponents; General government professional and (d) Framing of standards and codes: administrative staff who provide support through Standards, Codes and Guidelines are the basic requisites provision of information; for promoting urban management and pollution control. Department planners who play the major role in These serve as the basis for local regulation and screening and ensuring completion of each project procedures leading to enforcement. It has to keep pace component; with the emerging requirements of the management. ministry/NPC planners and MOPE coordinators who provide overall technical advice and make (e) Clarity and consolidation of various laws: resources available; Laws related to pollution control are fragmented and related to various agencies without designating any particular jurisdiction to the right and competent agency. 9.5.9 Institutional Capability at Simplicity and enforceability ought to be the cornerstone National level of any legal framework. The institutional orientation has been sectoral and the (f) Mobilisation of local concern: need for coordination has been felt for the past many Local and community involvement has been much years. However, conscious participation on the part of harped about since ages though practically it is yet to the actors from the various sectors to evolve collaborative materialise. Involving and motivating the local people, prescriptions for coordinated implementation is yet to inspiring them to realise their responsibilities needs to emerge. In the sphere of environment, the jurisdictional be encouraged. There is dire need to inform the public, role of related agencies and institutions are quite mobilise local concern and proactively support extensive. The specific objectives of developing community initiatives in developing the municipalities. institutional capacity are as stated below: It is an undeniable fact that services are best delivered • •·ENVIRONMENT by operational echelons that are close and responsive to Therefore, strengthening the institutional capabilities to the consumers. Furthermore, local governments are achieve the environmental standards is a key factor. The better suited to ensure equitable service delivery, and planners should not deviate from the following key equitable fee setting and enforcement. requirements: •:• Enhancing capabilities for framing administrative 9.6. KMC AS AN INSTITUTION procedures 11\J ENVIRONMENT SECTOR Resolving organisational conflicts Regulating a sound mechanism for linkages with (See Details in the Chapter on Institution) relevant agencies Building up essential technical and managerial One of the major issues that needs to be addressed is capabilities required for institutional functioning KMC 's institutional capability in environment in the context of pollution control management and planning. The following realities Urban and industrial management clearly emerge in this context: In the context of its Integrated Development approach, (i) The KMC is technically weak, and also suffers from the KMC needs to be provided with legislative support an inefficient organizational infrastructure and and functional validity to developing effective programs dearth of qualified manpower. It is not empowered and to implement them. to exercise autonomous discretion to settle the multitude of problems besetting it. Furthermore, the central level agencies are hardly encouraging about 9.7. FINDINGS, OPPORTUNITIES KMC role in fmding solutions to the environmental AND CHAllENGES problems of the Kathmandu Valley. (ii) While institutional development at the KMC level 9.7.1 Findings has been completely neglected, the capacity ofthe central level institutions such as, the Ministry of In recent years, KMC successfully garnered substantial Local Development, and the Department of public support for environmental improvement of Housing and Urban Development, has been Kathmandu. Several donor agencies and individuals are further extended and enhanced. Due to lack of willing to involve themselves in areas such as drinking appropriate legal and institutional changes needed water, pollution control, solid waste management, clean to create an effective urban planning system, the transportation etc. However, the following areas can planning process has remained ill-defined and have a marked impact on KMC's overall environmental often arbitrary, depriving the local people from improvement possibilities: participation in the planning process. •:• Solid waste management (iii) The municipal financial state of the KMC is ·:· Industrial pollution control extremely inadequate. This is partly due to lack of ·:· Infrastructure services institutional capacity, since KMC on its own, cannot Basic sanitation and cleanliness collect direct taxes; and partly due to lack oflinkage Water supply and sewerage between revenue collection and provision of Pollution of water, air and soil services. The capacity of KMC to make the most Cultural and Social enviromnent of available resources, therefore, remains seriously constrained. The need to check and reorient the Among these, the first stakeholders' meeting considered disproportionate growth in most of the KMC areas solid waste management to be the most promising and (irrespective of their diminutive sizes) requires the others were given subsequent priorities. The initial sustainable and consistent development of its findings suggest that the city's cleanliness and its physical, financial, and investment planning physical appearance is extremely important and should capability. Decentralized delegation of power and be KMC's utmost priority. Hence, solid waste responsibilities to the local governments should go management plays a key role in gaining support and hand in hand with enhancement of institutional confidence of the public. capacity for urban management and planning. 9.7.2 Opportunities: 9.8. RECOMMENDATIONS Strategic Planning Exercise 9.8.1 Activities to be Addressed The reports and action plans related to KMC's Keeping in view the environmental objectives of environmental management efforts prepared by KCDS, which is to enable KMC to deal with various consultants over the last five years indicate environmental programmes, the following broad that significant amount of work has been activities have been adopted. accomplished in the area of studying major issues and identifying potential projects for future (a) Planning, management, and control of urban implementation. Concrete programs at the field level pollution for environmental quality; have been delayed mainly due to shifting government (b) Environmental aspects: Land and water decisions. For example, KMC has prepared a detailed (c) Cultural and Natural Heritage plan of action for solid waste management. The plan (d) Identification and control of industrial pollutants of could not be implemented for sheer want of suitable broad valley-wide significance (KMC-lead agency) land. Through the CDS exercise, broad sector-wise (e) Educational, informational and research aspects. projects are being identified and planned, and KMC (f) Technical Assistance should now encourage the relevant governmental (g) Donor assistance and action programs agencies, donors and NGOs, to undertake important projects in close collaboration with the stakeholders. Accordingly, the recommendations of the first The CDS exercise will define the priorities and roles stakeholder meeting are also examined and the of KMC, based on the common consensus of the prioritized activities are listed below: stakeholders, and will thus specify the goal, objectives, outputs, indicators, activities, and priorities of all development related activities to be 9.8.1.1Pollution: (Planning, Management conducted by KMC within the valley. and Control) This group comprises Solid Waste Management, air, water, 9.7.3 Challenges noise and land pollution. In this group of environmental problems, most of the solutions lie with the administrative CDS Implementation and legislative power ofthe central government, and KMC can only individually act as a supporting agency. However, Probably the most important aspect of the CDS is to KMC can initiate various programs and functional activities ensure the implementation of major recommendations such as monitoring, dissemination of information, and by it. There are many instances in Nepal where plans providing support to national programs for identification are formulated but implementation suffers largely due and control of pollutants. to lack of adequate funds. The CDS recommendations should not only be technically excellent, but feasible Most of the action required in this group would involve and functional too. In order to ensure that the CDS is identification of manageable standards for persistent implemented, KMC will have to accord due priority to pollutants and adoption of national measures to limit the some of the more affordable projects. release of such pollutants into the environment, and would have to be initiated and sustained at the national level. The environmental problems as a process, are less influenced by the policies pursued, than by the combined There is also an urgent need to build up an inventory of effects of sectoral activities. Unless urban development information and to proceed systematically to fill gaps in policies are complemented by and harmonized with knowledge of both KMC and the central government. sectoral policies, KMC can have very little control over This, for the most part would call for the building up of the environmental problems. In Kathmandu, the technological capability of KMC and MOPE, KMC can environmental problem will remain contingent upon the also benefit from various studies being carried out by efforts of the central government. Hence, the central NGOs. The environment department of KMC plays a government has a major role to play in establishing the critical role in updating information and creating control mechanisms. awareness, not forgetting the need to develop projects. . ENVIRONM~NT A general lack of technological capability is a concomitant of municipalities, and to this extent much of the action in this field could and should be organised in collaboration with the private sector, NGOs and specialised institutions. Some actions, on the other hand, to cooperate with national programs and to attain the capability to prescribe control measures, and enforce, will depend on KMC's commitment and will therefore, lie at the KliAC level. 9.8.1.2Land: Being one of the Nation's most heavily populated cities, land is at a premium in KMC. Not only does steady increase in population mean less land per capita, but the accompanying pressure on infrastructure leads to further degradation of quality of life. In so far as land is concerned, a management policy of "appropriate location for appropriate function " has to be pursued. Land inventories have already begun in KMC (KVMP I EEC prcdect) and comprehensive land use within KJVIC is expected to result at the end of the project. To ensure continued productivity ofland resources, the application of" sound economic zoning" principal is important. Land ownership ofKMC should be improved by acquiring public land and securing them for public or other economic initiatives are being promoted. There are many other utilization. KMC will need to acquire as much land as initiatives being undertaken to clear the river systems possible within and outside the KMC's political boundary. which needs to be given more momentum and support. Land will be the key factor for the future growth ofKMC. If need be, KMC's boundaries should be expanded and it should accommodate the neighboring areas for future growth. 9.8.1.4Cultural and Natural Heritage: On the basis of the recommendations which emerged 9.8.1.3Water: from the first Stakeholder Meeting, KMC should take steps to protect and preserve its cultural and natural Surface water pollution is a serious problem inside the heritage, develop historical sites and recreational parks, valley. Exploitation of water and sand within the valley and conserve representative samples of its most will have to be stopped with the concurrence and important biological communities. In this respect, KMC cooperation of the DDCs. The sand in the rivers are fast should gain ownership of such areas and maintain diminishing and this is affecting the rivers. This problem effective conservation of such resources. deserves to be accorded the highest priority. Specific national action on the part of the Government 9.8.1.5 Industrial Pollution: has to be appreciated in recent times. Melamchi water supply is gaining support and is likely to materialize. Industrial population is an extremely important issue for Sand mining has been discouraged and private sector KMC. The perils of environmental pollution might turn 325 out unfavorable to the owners of Industries and might 9.8.1.8 Research: also affect the economic activities within the valley. KMC should initiate action oriented research projects Nevertheless, with the creation of a better and conducive which will assist in the decision-making. The water environment the tourism industry will defmitely improve. treatment initiatives in Bishmunati river serves as a good All these call for national and collective action on the example. Assistance should be sought from international part of the municipalities and the government. agencies, municipalities of developed countries and local scientists. Provision of resources can be solicited from Threats to and opportunities for developing the tourism interested and willing donors. industry must be identified. To compensate for the loss of employment and job opportunities due to decrease in 9.8.1.9 Technical Assistance: industrial enterprises, other economic activities such as The donor agencies should promote and finance health care, tourism, education etc., must be encouraged technical assistance programmes. Such assistance should be so structured in a manner that the development of The environmental concern should not be interpreted as internal capacity of KMC is not discouraged. A a move to damper the industrial sector. On the other comprehensive directory of the expertise available within hand, high value added and clean industries could be the country should be compiled. Likewise, a directory promoted. Only large and medium scale industries and of institutions willing to help KMC should also be pollution prone industries even if they are small, should prepared for exchange of technical expertise. be discouraged or relocated elsewhere. The costs and benefits of relocation of such industries in relation to other accruing benefits have to be closely examined. 9.8.1.10 Donor Assistance and Action Programs The principal objective suggested by the Nepal Environmental policy and Action plan (NEPAP) for International, regional, national and local financial industrial pollution in Kathmandu is "help to ensure that institutions should be requested to assist KMC in solving environmental pollution from industries do not have the environmental problems. KMC should also collaborate adverse effects on tourism ". with fmancing agencies to develop programs and projects based on the aforementioned recommendations. 9.8.1.6 Educational, Informational and As an immediate measure, the list of tentative projects Research Aspects. (City Assistance program) should be widely discussed with donor community and financial institutions. Public Education In view of the fact that the actions of individuals have a In addition, full support should be extended to KMC by significant impact on the environment, KMC should try HMO by synchronizing its plans and policies with the to promote a sense environmental ethos among the environmental programmes of KMC. people through the media, and through environmental education programmes at the ward levels (dealing with basic hygiene and sanitation), for creating public 9.8.2 lnstntutional Development awareness. The main bulk of the projects as well as the methods of 9.8.1. 7 Information: their implementation are contained within the charter KMC should set up an information centre in its city head of existing institutions (National and Local). However quarters. This centre, in addition to providing document upgrading and strengthening the measures and methods retrieval and referral services, should develop data banks is a continuous process. pertaining to every relevant discipline. This centre will cater to other agencies and donors regarding their queries Kathmandu's environmental problems are hampered by about the environmental activities ofKMC, and act as a the involvement of a large number of central government resource and information bank for the media and other agencies, and the highly centralised nature of the MLD 's agencies. With the help of the government and non- functioning. There is an acute dearth of skilled staff in governmental agencies, KMC should work to make this the KMC, and the gap between demand and supply is information centre functional and well equipped. ever widening. The institutional needs of CDS are not the creation of The recommended arrangement may be instituted not new government agencies, but the imperatives only for CDS activities but for every KMC activities. mentioned below: •!• Coordination between KMC and other supporting 9.8.4 justification government and non- government agencies, ·:· Evaluation of ministry plans within the context of It is truism to state that the KMC can play a key role in an overall CDS programs, specially plans of the environmental protection and improvement in the MOPE and MLD, KMC area. Environmental disruption is mainly caused •!• Liason with and management of private sector by callous citizens. Owing to lack of planning, the development activity in environment protection, economic benefits are being siphoned off from the KMC •:• Implementation of agreed and prioritised programs. area by vested interests. The beneficiaries of KMC's economic enterprises do not betray positive proclivities to invest for Kathmandu's environmental well-being. 9.8.3 Mechanisms of Coordination As stated earlier, environmental concerns are not 9.8.3.1Central Coordination Centre: intrinsically woven with economy, but have to be discerned and addressed by society. Additional income The: arrangement differs from existing machinery only is required to support KMC's conservation activities. in the establishment of: a KMC CDS coordination committee composed of 9.9 OVERVIEW senior officials of the KMC departments, CPC, deputy mayor, mayor, including invitees concerned The developmental targets of the KMC can be with environmental plans and programs, summarised as: a CDS coordination centre based in KMC. This •!• Consistent economic growth will be a conglomerate of skilled manpower Environmental improvement and protection. resources within Kathmandu valley, with particular representation from various stakeholders These two might seem contradictory at a glance. The such as HAN, NHS etc. The coordination centre eco-friendly economic alternatives and sustainable should be headed by a senior and highly motivated development initiatives enumerated in great detail in the KMC official, preferably from CPC, who is willing foregoing pages of this report, points to the logical to commit himself to the cause. confluence of these two important targets. Table 15: Environment- Issues and Implications ISSUES IMPLICATIONS ACTORS Wholeistic and balanced In the context of environment, KMC in particular and whole valley as a unit 0 Parliamentary Comm- development of valley as in general, it is important that extreme precautions development strategies ittee on Environment a single ecological unit. are to be developed and extremely bold environmental protection measures 0 MLD are to be initiated at the earliest possible. 0 MOPE 0 NPC 0 MPPW 0 MOTCA Environmental constraint Land, water and air are severe constraints to unlimited growth. The Valley 0 Cabinet to growth in the Valley. as a whole is a unique place in the world and hence, its development 0 (KMC+4)* needs to be sympathetic to national and global interests. 0 Relevant ministries. Minimizing the release of The growing pollution and the relatively dwindling protection measures is 0 All sectoral and pollutants. the crux of environmental problems evident in KMC. central govt. ag<:ncies Land Management With one of the Nation's most heavily populated cities, land is at a 0 MLD premium in KMC. Not only does steady increase in population means less 0 DDCS land per capita, but the accompanying pressure on limited infrastructure is 0 KMC the serious threat. 0 NPC 0 Cabinet 0 MLR Solid Waste Management MLD is in the process of finding a proper landfill site within or outside 0 Cabinet. MLD, the Kathmandu Valley. MLD has also initiated the process of privatizing MOPE, (KMC +4), the solid waste management. Parliamentary Composting /Recycling Promote composting and recycling for revenue generation. Committee Air Pollution Past three decades have seen a tremendous increase in air pollution mainly o NPC, EPC caused by the rapid increase in population accompanied by rise in number o HMG/Bureauof of vehicles, number of registered kilns and air polluting industry like standards, Dept of Himal Cement Plant. The implication of air pollution control on health Transport and tourism industry, therefore, is significantly high. Management,MOPE, Traffic Police, Ml, NEA. Industrial Pollution: o Positive impacts on the natural environment; o NPC, Parliamentary The environmental o Energy demand in valley will be improved; Committee, Ml, problems created by o Carrying capacity of infrastructure will be improved; MLD, DDCs, EPC, industries assumes 0 Overall improvement in valley's environment and economy MOPE. significance as their number increases. At the present, there is no system guiding or monitoring these industries in terms of their location, out puts and effluent. There is no effective industrial pollution and effluent standards. In its absence, there is no mechanism for implementation of pollution control or its monitoring. Water Pollution: The primary aim of the KMC is to protect the public health. Water supply o NPC, EPC, MOPE, The pollution of municipal plays an important role towards this primary goal. Every effort should be o DDCs, MPPW. piped supply in terms of made to achieve drinking-water quality standard as high as bacterial parameters is implementable. uniformly higher than WHO recommendations . ........~"'~"' ,,,.~~~"''· '''""'·""~"''· ,,,,,, ,, * KMC+4 implies four other valley municipalities, including Lalitpur, Kirtipur, Bhaktapur, Madhyapur Thimi. ISSUES IMPliCATIONS ACTORS The pollution of surface water is marked both by chemically and biologically and are mainly due to raw sewage, industrial effluent ar1d solid waste. Noise Pollution: Noise pollution is on a steady rise. Noise control measures neither exit nor D MOPE,MPPW, In KMC, there is very are getting priority in national agenda. Hence, it will remain an DOT, li1tle information on the environmental hazard. extent of disturbance from community or neighbourhood noise. However, the recorded noise level (73-80 dBA) at the market areas indicate that the noise level is high. Visual Pollution: The visual pollution ofKMC in the form ;:;fbill-boards, light pollution, ill D KMC maintained buildings are seriously hampering the tourism industry. D MLD D MOPE Cultural and Natural Economically and socially the backbone of Kathmandu's identity. D KMC, Reritage D Heritage Dept. D ML Public Education Serious lack of ethical values in KMC citizens although they are exposed D KMC,Media. to sanitation and hygiene. Information, Research, Information is the key to action oriented programs. D KMC. Technical Assistance etc. Donor Assistance KMC should seek donor assistance in priority areas of pollution control. D KMC. Institutional The institutional development needs of CDS are for an arrangement to D MLD Development: improve the overall capacity ofKMC. D KMC. Implementation ofpilot Confidence building D KMC,MLD project in certain limited D Other sectoral areas agencies. BIBLIOGRAPHY 1. Banskota, M. & Shakya, S.M. March, 1992. Industrial Growth in Kathmandu Valley- A process of transforming Tourism Paradise to a Thriving City of Slums (Paper read at INTERCEI, 92). 2. DHUD/MSUD-Project. April, 1990. Urban Infrastructure Services Delivery in Nepal (Kathmandu: Department of Housing and Urban Development). 3. DHUD/MSUD-Project. June, 1991. Infrastructure Assessment Summaries of Municipalities in Nepal (Kathmandu: Department of Housing and Urban Development). 4. DHUD/MSUD-Project. October, 1990. Review ofExisting Legislation Related to Major Urban Environmental Problems (Kathmandu: Department of Housing and Urban Development). 5. HMG, CBS, A Compendium on the Environ.,nental Statistics of Nepal, 1994. 6. HMG (DHUD)/HFK, PPK& CEMAT. 1991-92. Reports on "Kathmandu Valley Urban Development Plans & Programs"- ADB/DHUD Study Project (Kathmandu: Department of Housing and Urban Development). 7. HMG (LUDTC) UDLE (GTZ). June, 1992. Urban Environmental Guidelines for Nepal, (Pokhara: Urban Development Through Local Efforts and Local and Urban Development Training Center). 8. HMG/EPC. August, 1993. Nepal Environmental Policy and Action Plan (Kathmandu: Environment Protection Council). 9. HMG/MHPP. September, 1992. Human Settlements Sector Review and Programme Preparation (Kathmandu: Ministry of Housing and Physical Planning). 10. IUCN/NEPAL, NCS, 1991. 11. Mathema, M.B.; Joshi A. R.; Shrestha, S.L.; Shrestha, C.L. June, 1992. Environmental Problems of Urbanization and Industrialization- The Existing Situation and the Future Direction (Kathmandu). 12. MEIP/WB, Urbair, Oct, 1996. 13. MHPP/MLD/MSTP-Project. 1987-1989. Infrastructure Assessment Reports (Kathmandu) 14. MHPP/MLD/UDLE (GTZ). August, 1993. Municipal Organizational Development and Administration (MODA) Report - Lalitpur Municipality (Kathmandu: Urban Development Through Local Efforts). 15. NPC/IUCN. 1991. Source of Industrial Pollution in Nepal- A National Survey (Kathmandu: His Majesty's Government of Nepal, IUCN- The World Conservation Union). 16. NPC/IUCN. August, 1991. Environmental Pollution in Nepal- A Review of Studies (Kathmandu: His Majesty's Government of Nepal, IUCN- The World Conservation Union). 17. Shakya, S.M. et al, Sector Program Assistance Document, DANIDA. 18. Stanley/EAST/Mott Me Donald. April, 1994 Bagmati Basin Water Management Strategy and Investment Program- A study executed by the World Bank with assistance of Japanese Grant Fund Report (Kathmandu). 19. UDLE (GTZ). August, 1991. Future of Municipal Finance and the Octroi Discussion paper (Kathmandu: Urban Development Through Local Efforts). 20. UNICEF/MLD. 1990. Urban Basic Services, A Community Profile - Lalitpur Municipality (Kathmandu: UNICEF). 21. World Bank/UNDP. 1992. Environmental Management and Urban Vulnerability- Discussion papers (Washington: The World Bank). MU ICIPAL FINA CE Naresh P. Shrestha MUNICIPAl FINANCE SPECIAliST CITY DIAGNOSTIC . . REPORT UST OF ABBREVIATIONS ADB Asian Development Bank CAP City Assistance Program CAS Corporate Accounting System CBO Community Based Organization CDS City Development Strategy CEC Commission of European Communities CPC City Planning Commission DBMS Data Based Management System DDC District Development Committee DOR Department of Roads DOTM Department of Transport Management FNCCI Federation of Nepalese Chamber of Commerce & Industry GIS Geographic Information System HMG.'N His Majesty's Government of Nepal HRIPC Human Resource Information and Promotion Center INGO International Non-government Organization KCDS Kathmandu City Development Strategy KMC Kathmandu Metropolitan City KVMP Kathmandu Valley Mapping Program KVTDC Kathmandu Valley Town Development Committee LSGA Local Self Governance Act, 1999 MuAN Municipal Association of Nepal NASC Nepal Administrative Staff College. NEA Nepal Electricity Authority NGO Non-government Organization NTC Nepal Telecommunication Corporation NUSS Nepal Urban Sector Strategy NWSC Nepal Water Supply Corporation 4P Public Private Partnership Program PSP Private Sector Participation TUGI The Urban Governance Initiative UDLE Urban Development through Local Efforts UNDP United Nations Development Program VAT Value Added Tax VDC Village Development Committee WB World Bank TABLE OF CONTENTS List of Abbreviations 332 Table of Contents 333 List of Tables 334 List of Figures 334 10. MUNICIPAl fiNANCE 335 10.1 Introduction 335 10.1.1 Background 335 10 .1.2 Recent Initiatives 335 10.1.3 KCDS and Municipal Finance Element 336 10.2 Objectives 337 10.3 Existing Situation 338 10.3.1 Current Status of City Finance 338 10.3.2 Expenditure Planning/Budgeting 345 10.3.3 Private Sector Participation 349 10.3.4 Accounting 351 10.3.5 Review of Existing Legislation 364 10.4 Vision & Mission For KMC 364 10.4.1 Vision 364 10.4.2 Mission 365 10.5 Issues & Challenges 365 10.5.1 Resource Mobilization 365 10.5.2 Expenditure Planning/Budgeting 371 10.5.3 Private Sector Participation 372 10.5.4 Accoum ng 372 10.5.5 IdeJ.'"itJcation of Legislative Gaps 374 10.5.6 Strategic Challenges 376 10.6 Strategic Framework 3 76 10.6.1 Goals 376 10.6.2 Policy Objectives 376 10.6.3 Strategic Objectives 377 10.6.4 Strategies 378 10.6.5 Options Considered for Legislative Support 380 10.6.6 Justifications 380 10.6.7 Uncertainties and Risks Related to the CDS, with or without Municipal Finance Interventions 382 10.7 Tools For Development 382 10.7.1 KMC's Current Organization and Capacity 382 10.7.2 Result Management 383 10.7.3 Logical Framework Matrix for Municipal Finance Development 384 10.8 Conclusions 385 10.8.1 Summary of Findings & Recommendations 385 333 CITY PIAGNOSTlC .REPORT Annex :1 Kathmandu Metropolitan City MODA Proposed Organization Structure 389 Annex:2 Organization Structure (Previous) Kathmandu Metropolitan City Office 390 Annex: 3 Improved Organizational Structure Kathmandu Metropolitan City Office 391 Annex: 4 Vehicle Tax Rates 392 Annex: 5 Rate of Business (Professional) Tax 393 Annex: 6 Land Revenue or Land Tax and House-Land Tax 396 Annex: 7 Rate of the Integrated Property Tax 398 Annex:8 KMC Revenue (Detailed) Data 399 Annex:9 KMC Expenditures 414 Annex: 10 KMC Town Level Projects 444 Annex: 11 KMC Annual Budget 2057/58 445 Annex: 12 Budget Preparation Procudure: Showing Assistance from ADB and World Bank 45 7 Annex: 13 KMC Revenue Expenditures Projections 458 Annex: 14 Kathmandu Metropolitan City Information and Communication Strategy 460 Annex: 15 Targets for Improved Financial Management 461 Annex: 16 Revised Targets for Improved Financial Management 462 Annex: 17 Total Staff and Approved Positions in the KMC 464 Annex: 18 Total Staff and Approved Positions in the Finance Department ofKMC 464 Annex: 19 Total Staff and Approved Positions in the Revenue Department of KMC 464 Annex: 20 Total Account Staff and Approved Positions in Other Departments ofKMC 465 Annex: 21 (A) Stakeholder Analysis - Mounicipal Finance 466 Annex: 21 (B) Focused Group of Stakeholders for Municipal Finance 469 End Notes: 470 Bibliography 471 UST OF TABlES Table 1: Main Functions of the sections of Finance, Account and Audit Department of Kathmandu Municipality in 1993. Table 2: KMC Revenue Data Table 3: KMC Expenditure Data Table 4: List of 4P Projects Table 5: Municipal Finance - Issues and Implications UST OF FIGURES Figure 1: KMC Actual Revenue 1999-00 KMC Revenue Data Figure 2: Own Source Vs. Grants & Loans FY 2956/57 (1999/00) Figure 3: KMC Expenditures Figure 4: Financial Year 2053/54 Figure 5: Financial Year 2054/55 Figure 6: Financial Year 2055/56 Figure 7: Financial Year 2056/57 Figure 8: Bace Case Figure 9: Potential Figure 10: Financial Year 2057/58 Municipal Finance Historically, as far as KMC's municipalfinance is concerned, prior to B.S. 2027 (1970 AD),financialfunctions were carried out by the "Kosh Phant" (Fund Unit). The Koshadhachha (treasurer) used to be the head of this unit, under the direct supervision ofthe PradhanAdhikrit (Senior Executive) and there were no separate executives for accounting and taxation functions. During the Panchayat era, the senior executive as well as the organization was under the influence ofAnchaladhish Karyalaya (Office of the Zonal Commissioner). 10.1 INTRODUCTION Budgeting Section. Stores section was transferred to the Administration Department. 10.1.1 Background the year 2027 B.S., the Kosh Phant was split into 10.1.2 Recent Initiatives two sections: account section and tax section. The section was headed by the tax executive and was KMC's Institutional Strengthening Program started responsible for the collection of taxes and fees. On the from September 1999 with the technical assistance other hand, the account section was still headed by the from ADB. The goal of this program is "Improving treasurer. Later in the year 2041 B.S. (1984 AD), with the capabilities of Kathmandu Metropolitan City for the permission of the then Ministry of Panchayat and efficient, responsive and sustainable urban management Local Development, the title of the treasurer was in the Kathmandu Metropolitan Area." This program changed to "Account and Stores Executive." has four components: In the year 2050 B.S. (1993 AD), the KMC board •:• Organizational competence building approved and implemented the organizational structure •!• Improved financial management prepared by MODA (Municipal Organization •!• Improved operation and maintenance for solid Development and Administration) task force under waste management, and Organizational and Management Improvement Program •!• Private sector participation oflthe then Kathmandu Municipality. The organization Under the organizational competence building structure is illustrated in Annex 1 and accordingly, there component, theTA program made necessary adjustments were six departments and 32 sections. The Finance, in the organization structure and reduced the number of Account & Audit Departments came into existence as a dysfunctional sections and proposed a new structure single department responsible for municipal finance comprising 12 departments and 33 sections. The functions. There were five sections under this Municipal Council meeting of May 1, 2000 approved department as illustrated in Table 1: the proposed structure and is now functional. The new organization structure is illustrated in Annex 3. Again in 1997, the organizational structure ofKMC was modified in the changed context of decentralization and As per the new arrangement, the Revenue Section was the new status of the Metropolitan City. The number of upgraded to the new department. Now the revenue departments was increased from 6 to 11, and sections department has two sections: a) Revenue planning and from 32 to 43. The organization structure is illustrated monitoring section, and b) Tax & fees collection section. in Annex 2. The Finance, Account & Audit Department became the Finance Department with three sections: Similarly, the finance department also has two sections: Revenue Section, Audit Section and Account & a) Account and budgeting section, and b) Store section. Table 1: Main Functions of the sections of Finance, Account and Audit Department of Kathmandu Municipality in 1993. S# Sections Main Functions 1. Planning and Budgeting Section ·:· Financial Resource Analysis & Planning •!• Budget Formulation •!• Programming& Monitoring 2. Revenue Section •!• Direct & Other Tax Collection •!• indirect Tax Collection •!• Other Revenue Collection 3. Accounts Section •!• Regular Expenditure •!• Development Expenditure •!• Other Expenditure 4. Audit Section •!• Audit & Inspection •!• Property Assessment •!• Irregularities & Arrears Clearance 5. Stores Management Section •!• Internal Office Stores Management •!• Central Stores Management •!• Procurement Source: Report on Org:miz:lfiww/ :md J!:ma;jcment lmprmemcnt Progmm. 1\:ltfmwndu,lfunicip z (') tTl w ..... "" 't;..o.l ~ N ~' =i . :<. 0 Table 2 )> {i) :, KMC Revenue Data z··· .0 if~ (Nepalese Rupees) Q 1995/1996 1996/1997 1997/1998 AJ,.;. 2052/053 2053/054 2054/055 m "U Accounting Codes Budget Actual Percent Budget Actual Percent Budget Actual Percent 0. 90 04 00 TAX INCOME 14,433,000 8,512,836 58.98% 15,455,000 12,687,017 82.09% 92,775,000 17,246,363 18.59% i~ 91 00 00 INCOME FROM FEES 17,998,700 18,483,886 102.70% 20,242,560 15,244,516 75.31% 30,818,065 17,060,177 55.36% 92 00 00 INCOME FROM PROPERTY 3,411,823 3,496,480 102.48% 4,204.765 3,704,819 88.11% 4.704,765 3,900,972 82.92% 93 00 00 INCOME FROM ltNESTMENT 300,000 - 0.00% 300,000 - 0.00% 10,300,000 1,122,672 10.90% 84 00 00 SUNDRY 11'-.JCOME 6,134,000 6,755,626 110.13% 6,953,000 8,84 7,572 128.69% 37,667,000 4,283,456 11.37% OCTROI 293,100,000 247,813,603 84.55% 288,100,000 258,104,686 89.94% 380,300,000 318,260,415 81.54% I TOTAL OWN SOURCE REVENUE 335,377,523 285,062,431 85.00% 335,255,325 299,688,620 89.39% 566,564,830 361 ,87 4,056 63.87% 95 00 00 GRANTS Mm DOI~ATIONS 1 '115,000 135,000 12.11% 31,635,000 454,870 1.44% 260,650,000 280,000 D.11% 86 00 DO INCOME FROM RECEIPTS CONTRA.CT. - - - - - 97 DO 00 PRIOR YEAR II''JCOME FROM II'~VESTMEIH 1 ,500,000 552,202 36.81% 500,000 - 0.00% - 94 00 00 SUNDRY lhiOJiviE 10,286,000 7,538,'104 73.29% 26,681,000 14,899,491 55.84% 84,013,000 OCTROI 390,350,000 166,005,009 42.53% - - - I TOTAL OWN SOURCE REVENUE 488,380,830 207,440,626 42.48% 109,095,830 80,276,026 73.58% 340,440,610 95 00 00 GRANTS AND DO~JATIONS '139,400,000 34,437,596 24.70% 351' 177,985 229,234,744 65.28% 431 '029 ,390 96 00 00 11\JCOiviE FROtv1 RECEIPTS CONTR.Il.CT' - - - - - 97 00 00 PRIOR YE.I'\R INCOiv1E 2,500,000 '1,747,915 2,000,000 5,810,363 47,000,000 :s::: c 98 00 00 LIABILITIES WRITTEN BACK - - - - - Z: 60 00 00 LOANS 423,936,500 32,149,173 7.58% 247,813,000 14,700,000 5.93% - rs· 35 00 00 LAST YE.A.RS BALANCE 12,943,758 12,943,753 100 00% 3,996,122 4,007,185 10028% -- :g r "'T1 ' ' ' ' ' i GRAND TOTAL ---- _ _J,()~! ..161,088 288,719,068 27.05% 714,082,937 334,028,318 46.78% 818,470,000 Z: )> Z: 0 m w e ciT'r' DIAGNqs$rc REPORT-- Figure 1: KMC Actual Revenue 1999-00 KMC Revenue Data KMC Actual Revenue 1999-00 LAST YEARS' BALANCE 1% LOANS 4% TAX INCOME PRIOR YEAR INCOME 8% 2% INCOME FROM FEES 11% INCOME FROM PROPERTY 1% SUNDRY INCOME 4% GRANTS AND DONATIONS 69% Figure 2: Own Source Vs. Grants & Loans FY 2956/5 7 (1999/00) 300,000,000 250,000,000 Capital Expenditure 200,000,000 150,000,000 100,000,000 ~-~ Sundry Income Income from property rants & Donations 50,000,000 -- ------- --------------- Tax Income Own Source Grants & loans Tax Income 25,493,068 Income from Fees 36,221,356 Grants and Donations 229,234,744 Income from Property 3,662,111 Loans 14,700,000 Sundry Income 14,899,491 Total own Source Rev (NRs.) 80,276,026 MUNICIPA",FINANCE. 1 0.3.2 Expenditure Planning! b) Fixed assets such as vehicles and equipment etc. Budgeting are classified as regular expenditures, whereas these should be included in capital budget. The second most important area of municipal finance is expenditure planning /budgeting. It has been clearly The disadvantages of the previous classification are: mentioned in the Ninth Plan of the HMG/N, that the local governments will have the primary responsibility for urban 0 The concept of recurrent expenditures (as the development; and the municipalities will need to expand means to keep the organization and assets of their financial resource base and strengthen their urban KMC running) is not fully realized if operations management capabilities. In this context, there could be and maintenance are not considered as committed the question of how KMC is performing with designated recurrent expenditure, and functions of urban service delivery? What is the status of 0 The concept of adding to the asset value of KMC expenditure planning inside KMC and whether it is cannot be correctly considered, if new fixed assets controlled and regulated or not? Situation analysis is are not counted as capital investment. presented in the following paragraphs. 101.3.2.1 Past Trend 10.3.2.3 Process In the past, KMC budgets were prepared centrally and This starts with the then revenue section of the finance without much detailed consultation with all the department preparing estimates of the projected revenues department and sections, and tend to be unrealistic. Till for the fiscal year. These were based on whatever the last fiscal year, KMC used traditional method of information was available and taken into account policy budget preparation in conformity to the rules and initiatives to improve or extend collection. However regulations, and budget preparation was based on past, due to a lack of appropriate data the projections were current and next year's programs. The features of often: traditional budgeting were: 0 based on assumptions drawn from the experience (J The budget was prepared on the basis of the of previous years, and previous year's expenditures. 0 too optimistic in order to placate diverse and Previous year's programs continued into the competing political interests. current year. The major actors in the previous process were not There was a problem of budget management and Spending Departments but the Finance Department implementation. together with the Executive Officer and Budget (J It was not used as a practical management tool. Committee chaired by the political leader (Elected Summary of KMC expenditures for last eight-years representative). This approach shows that not only (budget vs actual) are illustrated in table 3 and details budget formulation but also its subsequent monitoring are presented in Annex 9. and control proceeded largely without any departmental involvement. 10.3.2.2 Budget The tendency to apply political judgements after the In the previous budgeting system, for the purpose of estimates have been substantially assembled leads to preparing and implementing the budget, KMC divided numerous and time consuming changes that might be expenditures into "regular" and "development". The avoided if these judgements were made first and fed into meaning of "regular and development budgets" is not the compilation process. Similarly, ward level the same as "recurrent and capital budgets". The two expenditures, which amount between 30 and 40% of classifications should not be seen as the same, nor should the total expenditure is based on an allocation formula the terms be mixed up. The essential differences are: - and not detailed in terms of specific spending proposals. a) Operations, repairs and maintenance are classified 103,2.4 Consequences as development expenditure under KMC's previous budgeting procedure, whereas these The principal problem is due to the delay in its approval: should be included in recurrent expenditures. the budget not being used for its intended purpose of 345 CITY. DIAdNOSTIC REPORT guiding expenditures in relation to projected revenues. 2. Training to junior engineers of Public Works Instead it became a retrospective record of expenditures Department and Urban Development Department that have been authorized as advances against draft for preparing Ward Level Local Area Plans. expenditure ceilings that would very likely be changed 3. Budget Formulation Procedure Manual prepared. 4 when the budget is fmally approved, but in any event 4. New Charts of Account prepared. have to match the actual expenditures incurred during 5. Formats for Expenditures Budgeting prepared. 5 the year. 6. Attendance by staff at all levels within KM C and from the wards for various training sessions on Most departments and wards prepare their budgets using the new budget procedure and how to complete the traditional approach whereby expenditure in the the form. previous fiscal year is taken as the yardstick and used to 7. A two-day workshop for the ward chairpersons determine allocations in the future. The result is that and department heads on the new budget too little attention is given to how the money will be procedure. spent, and of equal importance was it, or will it, be spent 8. Adoption of the suggestions made in working wisely. paper B6: Revenue Forecast for FY 2057/58. 9. Local Area Plan at three pilot wards prepared and In the report "Detailed Revenue and Expenditure incorporated into the new budget. Breakdown and Basic Financial Information of 58 Municipalities of Nepal (FY 1995/96 - 1998/99)" the After these activities, the KMC board under the comments regarding KMC were as follows: chairmanship of the Deputy Mayor formed a budget committee. The committee asked all the departments Expenditure Side and wards to complete the procedures as per training U The Overall performance in expenditure side was given and submit them back. Then with rigorous not good. exercise, the committee formulated the new budget and [J The percentage of current expenditure was too it was approved by the Municipal Council on August 6, high (64%). But the rule, which was on Local 2000. Governance, permitted only 25-40%. So the municipal corporation should consider limiting This budget could be termed as a mix of traditional line the cost. item budget and program budget and has tried to follow 0 The expenditure in social programs 32% showed the concept of decentralization. This budget also poor perfonnance. Municipal Corporation should acknowledged the plans and programs of respective give priority on social program. 3 wards and departments. In addition it also prioritized The above comments is the evidence of poor budgetary the ward level and town level projects. This budget also performance ofKMC. The management should take note brought forward the concept of balancing the budget of that and should take necessary corrective actions. (revenue and expenditure); and classified them into Recurrent Budget and Capital Budget, which was further 10.3.2.5 Current Status classified into ward level projects and town level projects. Annex 10 exhibits the budget system and Keeping in view the problems associated with previous Annex 11 exhibits the KMC budget for 2000/200 1. expenditure planning/budget procedure and the requirement ofKMC, ADB assisted KMC Institutional Earlier this year, when ADB TA started the new budget Strengthening TA helped formulating budget for the initiatives, Kathmandu City Development Strategy fiscal year 2057/58 (2000/0 1). The activities which have Program was also expected to begin in February-March, been completed are as follows: 2000. On the basis of this assumption, ADB TA envisaged cooperation from the KCDS program 1. Several rounds of brainstorming workshop and regarding development of vision for KMC and prepared discussion sessions with the department heads and a work plan, which is illustrated in annex 12. However, section chiefs. due to certain factors, KCDS was delayed for some time and it did not materialize. 346 "'. E I Table3 ~ KMC Expenditure Data (Nepalese Rupees) 1991/1992 1992/1993 1993/1994 199411995 Accounting Codes Actual 48/49 Budget 49/50 Actual 49/50 Percent Budget 50/51 Actual 50/51 Percent Budget 51/52 Actual 51/52 Percent 1-- . 70 00 00 Salanes & Benefits 18,021,920 27,979,308 15,911,640 56.87% 31,110,000 23,996,389 77.13% 27,976,341 25,935,079 92.70% 71 00 00 Operational Expenses 43,038,221 105,657,240 88,441,385 83.71% 119,045,000 96,541,740 81.10% 110,396,520 88,216,016 79.91% 80 00 00 0 & M of Infra & Services 22,987,288 176,356,692 132,700,797 75.25% 226,655,000 179,321 ,326 79.12% 257,044,824 126,756,603 49.31% 10 00 00 Capital Expenditure 2,924,598 55,350,000 15,186,232 27.44% 64,375,000 8,648,060 13.43% 49,600,000 12,381,268 24.96% I TOTAL EXPENDITURES 86,972,027 365,343,240 252,240,054 69.04% 441,185,000 308,507,515 69.93% 445,017,685 253,288,966 56.92% Table 3 KMC Expenditure Data (Nepalese Rupees) 1995/1996 199611997 1997/1998 Accounting Codes Budget 52/53 Actual 52/53 Percent Budget 53/54 Actual 53/54 Percent Budget 54/55 Actual 54/55 Percent ~-'-'=- 70 00 00 Salaries & Benefits 24,195,875 19,466,722 80.45% 79,077,999 66,573,574 84.19% 120,256,512 86,874,208 72.24% 71 00 00 Operational Expenses 122,487,600 109,413,551 89.33% 124,565,798 118,775,116 95.35% 205,207,488 161,867,643 78.88% 80 00 00 0 & M of Infra & Services 214,246,000 152,610,145 71.23% 199,852,000 91,736,697 45.90% 729,216,000 123,435,279 16.93% 10 00 00 Capital Expenditure 82,400,000 21,262,405 25.80% 170,196,000 37,052,821 21.77% 227,820,000 66,420,998 29.16% I TOTAL EXPENDITURES 443,329,475 302,752,823 68.29% 573,691,797 314,138,208 54.76% 1,282,500,000 438,598,128 34.20% :S:· c z 0 Table3 =o );>"· KMC Expenditure Data (Nepalese Rupees) ~""'"·' ., 1998/1999 1999/2000 2000/2001 z .)> Accounting Codes !Budget 55/56 Actual 55/56 Percent Budget 56/57 Actual 56/57 Percent Budget 57/58 z ~ 00 00 Salaries & Benefits 109614981 93919113 85.68% 134316500 114062390 84.92% 201690000 C) 71 00 00 Operational Expenses 237795262 83626865 35.17% 163965891 106704758 65.08% 199591000 m 80 00 00 0 & M of Infra & Services 545065535 66457580 12.19% 462458550 80563731 17.42% 435365000 10 00 00 Capital Expenditure 231588000 40719388 17.58% 114845000 23853757 20.77% 217370000 I TOTAL EXPENDITURES 1124063778 284722946 25.33% 875585941 325184636 37.14% 1054016000 w ""' "" MUNICIPAL'F{NANCE ,, 10.3.3 Private Sector Participation encourage the private sector to share all costs, benefits, risks and opportunities of joint projects. Another important area of municipal finance is the private sector participation. At present KMC recognized In the past KMC had organized various 4P seminars to the principles of private sector participation in the attract private sector investment in the municipal services provision of urban services. But KMC does not have and infrastructure. The budget of fiscal year 1998/99 concrete policy and procedures in black and white. It provided the provision of Private participation in the has created confusion to the private sector that wants to development activities of KMC?, which are listed in work with the city. Table No.4. Private sector involvement is changing the way 1 0.3.3.2 Current Status governments do business around the world. Development franchises for constructing infrastructure Critics take building of traffic islands with private sector are one result of this trend toward greater private participation in the process of beautification of the city involvement in producing government services. As an as a success story. Many other municipalities of Nepal extension of the services traditionally provided under are now trying to follow this example of Kathmandu. construction contracts, franchises grant private firms a But the story of private sector participation is different time-limited opportunity to finance, design, build, in the case of capital intensive projects. Although there operate, and collect revenue from infrastructure facilities. were 31 projects listed in the budget of fiscal year 1998/ At the end of franchise period, usually after 20 to 50 99 for private sector participation, only three projects years, the government acquires, free of charge, a facility materialized in a limited manner. What went wrong? that it otherwise would have had to finance and operate Why is the private sector reluctant to invest in the with scarce public resources. This approach to project provision of urban services? What does KMC need to delivery has revolutionized infrastructure procurement do to attract the Private Sector? Services ofPSP expert in the developing world and is spreading to industrialized was sought under the ADB TA to tackle these questions. countries. The activities which have been completed are as follows: Public-private partnerships are not a panacea for the (i) Current Capacity ofKMC in PSP Assessed government's inability to finance all the infrastructure KMC in cooperation with ADB TA established an and the increasingly mobile public demands. Only Executive Task Force and an Operational Working projects with the largest and most certain net revenues Group. Institutionalization is paramount for future sw~cessfully compete for the attention of investors. sustainability of PSP. Private sector participation cuts Development franchises are thus merely a supplement across various KMC functional areas and requires multi- to public financing ofless self-supporting facilities. By disciplinary focus to bring PSP transactions to the allowing the public sector to focus its resources on market. KMC has responded with timely creation of a developing otherwise un-financeable projects, public- 15 member Executive Task Force, of which 7 are from private partnerships help to fill the "infrastructure gap" the private sector and the remainder from KMC (the between what the treasury can afford and what the public mayor; KMC secretary; representatives from five needs. 6 political parties, and a KMC department head). The private sector members include representatives from the 1 0.3.3.1 Past Trend chamber of commerce, professional associations, an advocacy group for transparency and the media. KMC has limited resources for its functions, while the private sector is not empowered to make policy (ii) Policy Framework and PSP Guidelines dedsions. It is KMC's conviction, however, that if the Completed public and private sectors come together, amazing results Policy framework and PSP Guidelines have been are possible. A coordinated effort by these stakeholders, prepared and translated into Nepali as well. These beginning with a shared vision and joint commitment, documents will be the cornerstone of all the training would benefit the city to a degree impossible to attain events that are designed to strengthen KMC's individually. KMC has thus launched the Public Private institutional capacity in PSP development and will Partnership Program (4P) to create environment where eventually support the standard operating procedures for the private sector can work together with KMC and to PSP activities. These include: Table 4: List of 4P Projects The budget of the Fiscal year 98/99 provided the provision for private participation in development activities of Kathmandu Metropolitan City. The 31 projects to be conduced under private participation are as follows: 1. Culture House 2. Slaughter House 3. Public Toilets in each ward 4. Sports Complex 5. Multi Decker Parking 6. Tundikhel Car Park 7. Children Park 8. Mass Transit 9. New/Old Bus Park Management 10. Eastem Bus Park 11. Truck Park 12. Door to Door Garbage Collection 13. Safe!}' Tank Service 14. lchangu Drinking Water 15. District Police Office Hanumandhoka 16. Internet Online Service ~ 17. Public Tele~hone Booths 18. Tourist Bus Park/Telephone Booth ;~ 19. Bhugol Park 20. Bhishnumati Park 21. Advertisement Hoarding-Board Rules & Regulations 22. Tripureswor Temple Area 23. Auto Parking 24. Mechanical Section 25. Significant Sanitation Management 26. Incinerator for Solid Waste Management 27. Waste Water Treatment S~stem 28. Solid Waste Management 29. Sundhara/Dharahara 30. Kamal Pokhari Park 31. Bhuikhel Meditation Park Working Paper No. F-1: Draft PSP Policy Framework. (iii) PSP Transactions Several PSP Transactions are in various stages of Working Paper No. F-2: Draft Standard Operating implementation. Three transactions have been awarded. Procedure for Implementing PSP Projects. These include the bus terminal; slaughter house and vehicle tax collection. The night market lease contract Working Paper No. F-3: Draft Feasibility Guidelines for is in the process of being evaluated. Initial procurement PSP Policy Projects. preparation is being developed on the overhead bridge concession contract. Working Paper No. F-4: Draft Procurement Guidelines for PSP Projects. KMC is currently determining other prospective PSP transactions, such as: Working Paper No. F-5: Draft Contracting Guidelines for PSP Projects. solid waste service contract for primary and secondary transfer. Working Paper No. F-6: Draft Pre-feasibility Analysis service contract for maintenance and repair for for Vehicle Tax Collection Service Contract. vehicles of solid waste management. contract for the collection of advertisement tax. Traffic Island: An example of Public Private Partnership 350 MUNICIPAL FINANCE Solid waste door to door Collection : Private Sector Involvement 1 to the staff. Accordingly, accounting training program was organized by Kathmandu Urban Development In order to increase people's participation and deliver Project (KUDP) at Pokhara, for employees of several effective and efficient public services, KMC must municipalities including KMC. After this training disseminate reliable, timely, up-to-date and true program, a decision was made to use "The Manual On information to the public. Thus KMC must have strong Accounting System For Nepalese Municipal Bodies" and effective accounting system with the corporate prepared by udle/gtz, as the base for the system. settings, as the sub system of Management Information System. This system should be able to reflect the true The Municipal Council meeting of 1998 decided to adopt fiscal picture ofKMC; in the mean time it should provide the Corporate Accounting System in KMC. This system necessary data for policies, strategies and future will be guided by the fiscal rules as mentioned under development. Besides this, the accounting system also the "Local Self Governance Act, 1999." should be simple and transparent. With these objectives KMC decided to adopt Commercial Accounting System ln order to implement the Corporate Accounting System (CAS) from the first day of the fiscal year: 2057/2058 (CAS) in the full scale, it is important that it must be (2000/200 1). well understood by all concerned and all the doubts should be addressed properly. In this respect, the need 1 Background for further training to the core accounting group has been felt. Prior to July 16, 2000, the accounting system adopted by KMC was cash based government accounting system, (i) Need Assessment: which runs under historical cost concept. As a result, KMC made it clear in the beginning that --training that financial information for decision making and financial is undertaken without analysis of whether or not it is reporting were not available on time. needed is likely to be ineffective and a waste of money. In 1994, KMC entered into an agreement with Asian Various meetings and discussion sessions took place to Development Bank (ADB), regarding Improved discuss and analyze the above questions. After analyzing Resource Mobilization in Kathmandu. One of the loan the situation, it has been concluded that specialized covenants was to introduce CAS in KMC, but it could training programs should be continuously activated to not be introduced due to various factors, such as: no implement CAS trouble free and full scale; and these provision in the Act; lack of adequately trained and programs should be conducted in a phased manner. As quaJified employees; and lack of proper plans. As KMC a part of this plan it has been decided that in the first is committed to implement CAS, various training phase, an overview of CAS should be presented to the programs and necessary exercises have been carried out. core accounting group so they will be prepared mentally and physically. Accordingly, an action plan was Several meetings were held at KMC to prepare for the developtd to start the training from June 16, 1999 and implementation of the system and the training needed the training objectives were established. (ii) The Training Phase: coordinated with the formation of CAS Once the training need is identified and behavioral implementation unit on February 25, 2000. The objectives are prepared, the next step is to develop a implementation unit has been formed as a core group training program that will achieve those objectives. This that will lead the shadow accounting practices and is accomplished by selecting training methods and will assist in future training and development ofKMC developing training materials that convey the knowledge employees in the field of CAS. The implementation and skills identified in the behavioral objectives. team, under the guidance of above experts has achieved various targets set for CAS. Several (iii) Responsibility of Training orientation and training programs have been KMC discussed with various organizations like: Mr. A.B. conducted for the staff of the implementation unit in Kshatry & Co., Surmount Chartered Consultants and different aspects of CAS. They include: Nepal Administrative Staff College for conducting the training program. Finally the terms and conditions of the •!• principles of CAS, account coding, receipt and Nepal Administrative Staff College has been approved. 8 payment of cash and recording; bank reconciliation, payroll accounting; With the financial assistance from KUDP, in June 1999, purchase and stores procedures/management, a 2-week training program was organized at the Nepal fixed assets management, Administrative Staff College (NASC). An overview of transaction between fmance department and other CAS was presented to the 40 participants of KMC. departments/wards. Evaluation of this training program clearly indicated that, during the introduction stage, there should be a Similarly, training/orientation on different aspects of continuous support program focused on human resource CAS to other staff (internal audit, staff of Revenue development and day-to-day problem solving. department, accountants of different department/wards, ward secretaries) were also conducted. Standard forms In order to run the continuous support program, various and stationeries were prepared discussed/agreed and donor agencies have been approached, such as: Regional KMC ordered printing of those that are required for Urban Development Office (RUDOIUSAID) -- New the introduction of CAS. The budget for fiscal year Delhi, KUDP, UDLE and DANIDA. 2057/58 (2000/01) was prepared in line with CAS accounting heads. RUDO/USAID agreed to provide the necessary grant of US Dollar 7,274.00 (equivalent ofNRs. 5,0 1,890.00) for 10.3.4.2 Current Status the program and an agreement has been signed between USAID and KMC. With this assistance, KMC entered At present, a complete set of charts of accounts has been into an agreement with Nepal Administrative Staff College drawn up, and an Accounts Manual has been prepared. for conducting the continuous support program. The accounts under CAS are maintained following the Accordingly, NASC provided nine months services, and Double Entry Accounting System on accrual basis. In a consultant began work from November 1, 1999. theory, as a result, the actual picture of income and expenditure of a certain period is available in time for In the meantime, Asian Development Bank (ADB) fmancial reporting, that is to say, Financial Statements, assisted KMC Institutional Strengthening Program - i.e., Balance Sheet and Income Statement, for any certain Technical Assistance (TA) also commencing from 27 period can be prepared taking updated financial September 1999. This program is designed to address information. various issues related to the overall capacity building of KMC including financial management and resource The introduction of CAS could be attributed to the mobilization. TheTA consultants also organized various commitment of KMC as well as various initiatives on-the-job training to implement CAS as a part of supported by the ADB TA and RUDO/OSAID grant improved financial management. program. But still there exist threats and challenges in the implementation of CAS, which will be discussed (iv) Formation of CAS Implementation Unit under the problems. In order to speed up shadow accounting practices, the efforts of consultants from NASC and ADB TA are 35,2 I institutionai Analysis I Key Issue 1 : Resource Mobilization OPPORTUNITIES THREATS ACTIONS 01.1 The new Local Self Governance Tl.l Regulations of the Same Act have restricted the fmancial autonomy Municipalities should be allowed to make Act, 1999 has paved way for of the local governments by prescribing the tax rates. necessary revision in the existing tax rates resource mobilization (provision and user charges and implementation. for more tax and fees) Effective enforcement bylaws shall be passed from the municipal council. 0 1.2 Broader responsibilities. T 1.2 Because of the larger number of local governments the tax base has been narrowed or restricted and it reduced the collection E.! I potentiality. But the actual tax collected is much lower than the ~ ability to pay or the potentiality to pay. fJ 0 1.3 Kathmandu is a growing city and After the abolishment of Octroi, HMG itself is raising the local b Tl.3 I has revenue potential. development fee and distributing it to the municipalities and VDCs. However it is also a temporary arrangement and the government, at any time, could stop it. 01.4 T 1.4 Enforcement process mentioned in the Act is cumbersome and i~ involves several government agencies thus giving opportunities to the defaulters. ··~ ~~~ ·~l' c(; Key Issue 2 : Expenditure Planning/Budgeting ~ 0 OPPORTUNITIES THREATS I ACTIONS 5> G) ···z 0 0 2.1 The Act has provided broad and I T 2.1 There are chances of central government actions if the budget I Budget preparation process must begin on t:J) •··F specific framework for budget preparation process is not complete on prescribed time-frame. time and proper planning is essential. 0 preparation ·.AJ· 0 2.2 Several national and international T 2.2 There is no provision of coordinating with budget process of central m ll agencies already helped KMC in government. O·•· ;:u the budgeting process and still are -+ ready to assist. 0 2.3 Project identification and prioritization process began with KVMP initiatives Key Issue 3 : Private Sector Participation (PSP) OPPORTUNITIES THREATS ACTIONS 0 3.1 Central Government encouraged T3.1 Private sector (national companies) are still not willing to work with KMC ~: .. Develop private sector scanning and local governments for PSP. in case of Capital Intensive Projects (Infrastructure Finance) evaluation mechanism. ..:. Develop liberal policies, prepare feasible and profitable projects to encourage the Private Sector to come forward. 03.2 Foreign private sector companies T3.2 KMC still does not have the information about private sector's Strongly pursuing and lobbying with the are interested to work with KMC capacity and willingness to work. government for the availability of Landfill in various projects such as solid Site. waste management, operation of trolley bus, apartment building etc. 0 3.3 Mobilization of local resources T 3.3 Political instability and division among politicians is also a reason Infonnation dissemination to behind reluctance of private sector to work with KMC. concerned stakeholders. 03.4 Inflow of New Technology Tnansparent review system 03.5 Efficient management of Projects Awareness about "pay charges - receive services" $: 0 3.6 Less burden to KMC c 0 3.7 Monetary liquidity level is high Develop liberal policies, prepare feasible z 0 with the private sector at present and profitable projects to encourage the :g and now it is evident that they are Private Sector to come forward. r "11 ready to invest in profitable z projects. ::&> z 0 m w Vll "" Y.) \.n 0:0\ () ~ •0 5> G) Z> d '(/) -1 0 Key Issue 4: Accounting/Financial Reporting ::0 m "0 OPPORTUNITIES THREATS ACTIONS 0 ::0 -1 0 4.1 The new Local Self Governance Act, 1999 has provided freedom to adopt "cash based" government accounting system or "accrual" accounting system. 0 4.2 The Act also gave freedom to the municipalities to appoint external auditors for fiscal transparency. - .. .. ~ .. . Organizational Analysis Key Issue 1: Resource Mobilization (Strength and Weakness) STRENGTH WEAKNESS ACTION Sl.l New Revenue Department is Wl..l Unable to mobilize resources in accordance with provisions of existing Act. created keeping in mind the importance of revenue for the sustainable urban service delivery. ' Wl.2 Lack of proper utilization of available financial resources. : Wl.3 Lack of commitment on the part of politicians regdrding direct tax collection and weak organizational capacity ' Wl.4 Not able to demonstrate the benefits of tax payment or guarantee the proper utilization of collected f. revenue. (Lack of Transparency) ~ Wl.5 Not able to demonstrate the benefits of tax payment or guarantee the proper utilization of collected revenue. (Lack of Transparency) Wl.6 On one hand KMC lack qualified hwnan resources, who really understand the importance of tax and perform accordingly. On the other, elected representatives are also confused with it. W1.7 Administrative or political culture ofhonoring the taxpayer is not developed yet. Highest taxpayers should be Wl.8 Lack ofmarketing orientation in the collection of revenue, i.e., there are not any schemes or plans for tax payer's awarded annually to encourage awareness and tax payer's service and satisfaction. the taxpayers to pay the taxes. Wl.9 There is not enough space for offices under the revenue department and they are not organized properly. Wl.lO There is no computerized database system oftaxpayers. Wl.ll There is no monitoring and evaluation system. Top management and political representatives have not shown Develop resource mobilization any interest in it. program $: c Wl.l2 A system is not developed yet for assessment and collection ofintegrated Property Tax (IPT), House & Land z (5 Tax, and Rent Tax. Wl.l3 A comprehensive Address System and Property Register is not developed yet, which could be termed as the ~ r base for the revenue collection system. ::!:] Wl.l4 Enforcement ofbusiness tax is poor. . ·~ Wl.l5 Revenue Potential of all the taxes and fees are not explored yet. z Wl.16 Result Management mechanism is almost not existence. n·. ··m· Wl.l7 Pricing of the services are not done properly. The cost recovery approach is not followed to realize the cost of services. w ~ .l;,;n '"-{ ; "o"M% c.w· :><"· "'• ' ••• 0 . . . . ., ..... ·....•... '"''' ,·, '"'••'··•w .• • "·~-· ·-··· Y:J VI 00 () ~ Key issue 2: Expenditure Planning/Budgeting 0 STRENGTH WEAKNESS ACTI-ONS 5> G) z 0 {j) S2.1 New Budget Format developed, W2.1 Adequate planning for budget preparation is lacking. Create strong commitment on the part of -I adequate training given to the policy makers and employees. 0 concerned employees and budget for :::0 fiscal year: 2000/01 developed m -:o accordingly. 0 :::0 s 2.2 This budget could be termed as a mix W2.2 Lack of fiscal discipline in the implementation ofbudget. -1 of traditional line item budget and program budget and tried to follow the concept of decentralization. W2.3 Lack of variance analysis and taking appropriate actions. W2.4 Revenue figures estimated are extremely optimistic and there are no clear justifications. W2.5 Revenue Potentials are not explored fully. W2.6 Gaps in infra support (unable to procure heavy machinerJ and equipment Resources scan. forSWM). W2.7 0 & M Budget is not sufficient and consequently SWM equipment are not Proper estimation of 0 & M costs and maintained properly. budget accordingly. W2.8 Austerity measures are not adopted to control unproductive costs. W2.9 Long-tenn or periodic Capital Budget or investment plans are nonexistent. Key Issue 3: Private Sector Participation (PSP) STRENGTH WEAKNESS ACTION S3.1 Other municipalities of Nepal W2.l KMC board still has not approved the policy framework and Create strong commitment on the part of consider some PSP activities ofKMC guidelines. policy makers and employees. as success stories. s 3.2 PSP policy framework and guidelines W2.2 KMC do not have a specific unit or department to handle PSP transactions. Create a new unit responsible to deal PSP are ready. activities with qualified human resources. W2.3 There is no marketing budget allocated for PSP activities and there is no Allocate budget & draft a marketing plan. marketing plan as such. W2.4 Lack ofcommitment and capability to evaluate and analyze the cost, benefit Create a new unit responsible to deal PSP and sustainability of the projects. activities with qualified human resources. .s:•· c: ·.. 'Z 0 ~.. r·< ;:;:~ z ().;;;•; m wi\! VI' \C.( "'-1 §:;) ·o :::j ::<> 0. )>:" Key Issue 4: Accounting/Financial Reporting G) Z.:' 0' STRENGTH WEAKNESS ACTION {f) -4 0 s 4.1 Corporate Accounting System (CAS) W3.1 Although the Act provided autonomy to appoint external auditors, KMC Municipal Council meeting of July 24, 2000 ;o developed and impl@mented from FY has not appointed them yet. Books of accounts for the FY 2055/56 (1998/ had authorized the KMC board to select and ·m ::u 2057/58 (2000/01). 99) and 2056/57 (1999/00) remained unaudited. appoint the external auditor. Therefore, an 0 :::0 external auditor must be selected and ··. "-! appointed at earliest. S4.2 CAS implement team was formed, W3.2 Uncontrolled Advances: Detailed control system should be trained and the team is working to Timely book keeping ofexpenses are adversely affected by the delay in the developed with active participation from date. clearance of advances. This exhibits the weak budgetaty control system all elected representatives and department and incorrect expenditure statement. heads. S. 4.3 Training/orientation on different W3.3 KMC finance department can produce the monthly and other periodic CAS implementation unit must get support aspects of CAS to other staff such as: statements on time, only if all other concerned wards and departments from the CEO in this regard and those who staffs from Internal Audit Unit, submit monthly statements/returns on time. For the past three months of does not comply with submitting timely Revenue Department, Stores Section; this fiscal year it has been observed that the concerned wards and departments statements to the finance department Accountants from different have not submitted the monthly statements/returns on time creating a spiral should be dealt with prompt actions. departments and all wards. effect and ultimately the finance department has not been able to produce periodic financial statements on time. S4.4 Standard forms and stationeries were W3.4 Inadequate Human Resources: Adequate and qualified HR must be prepared discussed/agreed and used. At present KMC finance department and revenue departments are arranged for the timely and proper understaffed and it also affected the daily functions. For instance, general execution of all the functions including stores section under the finance department are functioning with only 4 municipal finance functions. persons and Account and Budget section of the same department has only one officer. In the context of CAS, where the work horizon has been expanded, inadequate HR will result inadequate w01ks. I Key Issue 4: Accounting/Financial Reporting STRENGTH WEAKNESS ACTION s 5.5 The budget for FY 2057/58 (2000/ W3.5 Result Management mechanism is almost nonexistent. As for other cases, Monitoring, Evaluation 01) was prepared in line with CAS and Control mechanism must be accounting heads. developed. s 5.6 Internal audit unit has been created W5.6 Although the internal audit unit has been created, qualified personnel are Internal audit unit must be strengthened to as an independent unit directly not assigned yet regular internal audit is not carried out. maintain fiscal discipline in the KMC. reporting to the CEO. W5.7 Elected representatives are also found passive regarding internal audit and internal control. W5.8 Authority not delegated from the CEO to other concerned executives: Evecy In the context of municipal finance, the CEO form, voucher, requisition are to be approved by the CEO and it is a time should delegate certain authorities to other consuming process affecting the productivity. executives and its accountability also should be fixed. In this way it will help reduce bureaucratic hurdles. •·:s: c: .·. z t5 ::0 )> r:' !! z .)> z. 0,; m'. w ~' :N· ····~ Key Issue 5: Human Resource Management for Municipal Finance: ;n STRENGTH WEAKNESS ACTION ;=I . -<' W 5.1.1 HR Plan is lacking and it is creating a chain reaction: No job analysis; No Develop a detailed HR plan 6 ;)> recruitment, selection and socialization system. Conduct Job Analysis G) Design Recruitment, selection and 5 socialization system \~ W 5.1.2 There have been instances of political appointment of employees and it Recruitment and Selection must be free 0 affected the productivity directly. For example, new CAS demand qualified from political or administrative ;o m and able accounts personnel in wards and departments. But most of the interference and it must focus on the -u· quality of Human Resources. 0 present personnel (ward secretary and assistant accountant) deputed in wards do not have accounting background and are reluctant to learn. ~ W 5.1.3 Dependency on nonpennanent employees: Most employees working in the finance and revenue departments and wards are of temporary nature. In one hand these employees feel unsecured and do not contribute with optimum level. On the other hand training opportunities are not provided to such employees on the ground that they are temporary ones. This affects the work output. W 5.1.4 Trained employees are transferred to other positions 5.2 Training and Development of HR STRENGTH WEAKNESS ACTION Proper training need identification and introduce awareness program W 5.2.1 Lack of trained and qualified H.R. W 5.2.2 Lack of motivation to participate in training program W 5.2.3 Management Development Programs are lacking W 5.2.4 Career development opportunities are lacking. I 5.3 Motivation and Maintenance of HR STRENGTH WEAKNESS ACTION S 5.3.1 Available HR are capable of crisis W 5.3 .1 Effective reward system (including salary, benefit and other facilities) is management lacking. W 5.3.2 Performance management system is very weak. Develop and implement proper performance appraisal system. W 5.3.3 Discipline problems exist. W 5.3.4 Effective grievance handling procedure is lacking. Introduce reward and compensation system. W 5.3.5 Health and safety issues are neglected. W 5.3.6 Employee morale is low. Job guarantee for best workers 44:hl{d::\#t:~:di:t4'.~:% :%%%-:$;, 02%:-&ittm s:: .. c ..· z Q .~ r ::!! ~· z C1 m w ~ 10.3.5 Review of Existing legislation A great deal of Judicial Power of Municipality is covered in Chapter 5 and it includes Sections l 0 l to ll 0. The constitution of The Kingdom of Nepal adopted in 1990 highlights the norms of local self-government in Following up on the judicial powers, Chapter 6 discusses Part IV on Directive Principles and Policies of the State. in detail about the Formulation of Plans of Municipality Article 25 on Directive Principles of the State in Clause and Process of Implementation. This chapter contains (4) states as follows: Sections 111 to 124. Chapter 7 incorporates the most important topic of "(4) It shall be the chief responsibility of the State Financial Provisions and includes Sections 125 to 135. to maintain conditions suitable to the enjoyment of the fruits of democracy through wider participa- Chapter 8 includes equally important topic of Taxes, tion of the people in the governance of the country Fees, Services Charges and Fares and includes Sections and by way of decentralization, and to promote 136 to 148. general welfare by making provisions for the pro- tection and promotion of human rights, by main- Chapter 9 deals the detailed Provisions relating to the taining tranquility and order in the society." Construction of Building. This Chapter consists of Sections 149 to 164. Unlike the previous Constitution, the present Authority of Municipality to Punish, and Recovery of Constitution of the Kingdom of Nepal does not speak Punishment and Fine are the two sections (165 & 166) about the local institutions including the Municipalities discussed under the Chapter 10. directly. 9 The final Chapter 11 of Part 3 ofLSGA contains sections (i) Local Self-Governance Act, 1999 167 to 169 and it discusses Complaint and Provisions pertaining thereto. Local institutions in Nepal are governed on the basis of Local Self-Governance Act 1999 (LSGA). Exploring Part 5 of LSGA deals with General Provisions relating through the Act reveals that this Act is prepared on the to Local body, which is common to the VDC, basis of principles of decentralization and self- municipality and DDC. Chapter I covers the Relation governance. This Act provided three tier local between HMO and Local Body. Administrative government structure, i.e., village development Organization and Employee related topics are discussed committees, municipalities and district development in the Chapter 2, and Chapter 3 incorporates committees. Part 2, 3 and 4 of the Act includes provisions miscellaneous issues. relating to VDCs, Municipalities and DDCs respectively. Since the legislation for municipalities is being reviewed, 10.4 VISION & MISSION FOR IOv\C the focus will be on the Part 3 of the LSGA only. 10.4.1 Vision Sections 72 to 75 of chapter 1 includes descriptions of Municipal Area, Ward Divisions and Ward committee. From the viewpoint of municipal finance, the vision outlined for KMC is as follows: Chapter 2 contains Sections 76 to 79 and describes Provisions relating to Municipal Council. Vision "A well planned, clean and healthy city with Chapter 3 deals with Provisions relating to Municipality adequate housing, good transportation and and it contains Sections 80 to 88. infrastructure services managed by a strong and li capable municipal government". Chapter 4 discusses Meetings and Working Procedures of ward committees, municipal council, municipality etc. and it covers sections 89 to 100. 10.4.2 Mission 5. Tax collection and payment, both systems are in initial stage of development. Local governments The statement suggested at the first stakeholder's have not been able to demonstrate the benefits of workshop could be considered as the KMC's mission the tax payment or guarantee the proper utilization statement in the context of municipal finance: of collected revenue. 6. Public confidence will rise only if the tax Mission collection capacity is effective, efficient and Financially strong, managerially efficient and capable met- reliable. In the absence of such elements or in a ropolitan to provide quality, effective, efficient and sus- doubtful environment taxpayers are reluctant to tainable urban services and facilities to its citizens. pay the taxes. 7. Tax collection is a technical job, which is not an easy task. The collection system consists of various stages and inputs, for which the capacities 10.5 ISSUES & CHAllENGES of local governments are in question. 8. Administrative or political culture of honoring the 10.5.1 Resource Mobilization taxpayer is not developed yet. 9. On one hand the local governments lack qualified The issues related to resource mobilization identified human resources that really understand the by the first stakeholders workshop are as follows: importance of tax and perform accordingly and, on the other, the local leadership is also confused with HJ.5.1.1 Issues it. 1. How to fulfill the resource gap? 10.5.1.2 Challenges: 2. Absence of conducive environment to mobilize resources. The above-mentioned issues regarding resource 3. Unable to mobilize resources in accordance with mobilization reflect the following critical challenges provisions of existing Act. forKMC: 4. Lack of proper utilization of available financial resources. (i) Fiscal Gap is Widening: Similarly, Local Government Finance Commission, in If past data of KMC is observed, it will be evident that a study paper, identified issues related with resource in the previous years the revenue collected were mobilization oflocal governments, which is very relevant matching the expenditure on employee's salaries and to the KMC situation as well, are mentioned below: other administrative expenses, debt payment, social services, ordinary capital and development activities or 1. Broader responsibilities, insufficient financial capital investment. But gradually the situation is resource and restricted financial autonomy. changing as illustrated in the figures. 2. Lack of commitment on the part of political leaders regarding direct tax collection and weak For example, in 1996-97 the total expenditure was 314 organizational capability. million, whereas the own source revenue accounted for 3. Local Self-Governance Act authorized the local 299.68 million and grants/loans stood 14.84 million governments to levy the taxes and service fees, rupees. So it could be said that the fiscal gap was but the regulations of same Act prescribed the minimum (figure 4). In the previous fiscal year tax rates that restricted the financial autonomy of 1999-00, the actual own source revenue was 80.27 the local governments despite their capacity and million rupees only, and grants/donations (local commitment. development fee received from MLD) was 229.23 4. Because of the larger number of local million rupees, whereas the total expenditures amounted governments the tax base has been narrowed or 325.18 million rupees and there was a resource gap of restricted and it reduced the collection about 16 million rupees (Figure 7). This figure clearly potentiality. On the other hand actual tax illustrates two impacts from the abolishment of octroi. collected is much lower than the ability to pay or The first is a sharp decline in the own source revenue potentiality to pay. position, and second, KMC financial situation is so @lTY DIAGNOSTIC RI:;PORT critical that the own source revenue is not even enough Now the vital question is: How will this gap be filled? to meet the salary and benefits obligations to KMC It is clear that in the absence of required resources, KMC employees. would not be able to invest in the required infrastructure and development works (or capital works) as well as For the current fiscal year, 2000/01, KMC estimated operation and maintenance of infrastructure and services. revenue as 818.4 7 million rupees and expenditures as Deficit financing without improvement in the resource 1054 million rupees causing resource gap of235 million mobilization initiatives at this stage could affect long rupees, which KMC intends to fulfill through Joan term functionality ofKMC. mobilization (figure 10). In the context of rising municipal responsibilities the Earlier this year, ADB assisted KMC Institutional rising expenditure needs are inevitable. The rising Strengthening Program forecasted revenue ofKMC for expenditure needs could be attributed to the effects of this fiscal year 2000/0 1. Accordingly, the own source rapid urbanization; and rising municipal responsibilities revenue is estimated to be 300 million rupees with are the results of effects of decentralization in the region. minimum "base" case and 480.23 million rupees with Increasing cost of municipal service provision and often maximum or "best" case. For the same year the static revenues are creating the growing gap between expenditures are expected to be 687.7 million rupees income and expenditure needs. Price of goods and (Figures 8 & 9). Even if the best case for revenue is services a city has to acquire, continues to increase, e.g., assumed, there will be a resource gap of 207.5 million the increasing human resources cost, operation & rupees. 11 maintenance costs and infrastructure investment costs. The gap between expenditure and revenue often widens So, in both cases, there exist a resource gap. The because user charges are inadequate and other revenue difference occurred in KMC's own forecast and ADB bases are inelastic, that is they do not increase in TA's forecast is mainly due to new programs added and proportion with growing expenditure needs. This much optimistic estimation made by the KMC. situation clearly calls for better resource mobilization FIGURE 4: FINANCIAL YEAR 2053/54 (1996/97) COMPARISON OF ACTUAL EXPENDITURES AND REVENUES MILLIONS 350 300 250 200 150 100 so 0 366 FIGURE 5: FINANCIAL YEAR 2054/55 (1997/98) COMPARISON OF ACTUAl EXPENDITURES AND REVENUES MIJ1.10NS Resource Gap 400 Grant and loan 350 300 250 200 - "----"-""--"---"----- 150 100 50 0 Source: KMC Budget Document FIGURE 6: FINANCIAl YEAR 2055/56 (1998/99) COMPARISON OF ACTUAl EXPENDITURES AND REVENUES MilliONS 300 Resource Gap Capital Expenditure 1-------"-------- Grant and loan 250 O&M of Infra & Services 200 Revenue Operational Expenses 150 100 50 0 TABLE 7: FINANCIAL YEAR 2056/57 (1999/00) COMPARISON OF ACTUAL EXPENDITURES AND REVENUES MILLIONS 350 Resource Gap 300 Capital Expenditure 250 Grant and loan O&M of Infra & Services 200 150 Operational Expenses 100 50 0 Source: KJ\IC Budget Docunwnt FIGURE 8 : BASE CASE COMPARISON OF PROJECTED EXPENDITURES AND REVENUES FOR FY 2057/58 MILLIONS 800 700 i ---~;:::::::=::.;----------- ·---U Capital Expenditure 600 Resource Gap 500 400 300 200 100 0 i'"', 368 FIGURE 9 : POTENTIAl COMPARISON OF PROJECTED EXPENDITURES AND REVENUES FOR FY 2057/58 MilliONS 700 ------~~---- ------ ------------- Capital Expenditure 600 500 400 --"---"--- -"" -~- -- 300 Operational Expenses -"-"----"----- --------""-"- ---, 200 100 Revenue -----" ----------j I I I 0 Source: Working Paper No. 136. ISI\J\!C, ADBTA .1185, June 2000. HGURE 10: FINANCIAl YEAR 2057/58 (2000/01) COMPARISON OF BUDGETED EXPENDITURES AND REVENUES MilliONS 1200 1000 Capital Expenditure ------ -{} Resource Gap JJ_... 800 O&M of Infra & Services 600 400 200 0 Source: KMC Budget 2057/58 (2000/01) for the sustainability of KMC. Having said this, it is 55 million rupees business tax, but again, three months now essential to analyze the problems related with have already passed and there is no immediate plan to collection mechanism. mobilize the collection teams. Again, the question is: How will that target be achieved? Therefore, the absence (ii) Lack of Comprehensive or Integrated Revenue of required database adversely affected the revenue Collection System collection system and ultimately the resource In order to collect all the taxes, fees and charges timely, mobilization initiatives. effectively and efficiently - the basic need is a comprehensive or integrated revenue collection system, (b) Automation which KMC is lacking. Such kind of system shall Similarly, KMC does not have adequate computer incorporate an up-to-date database and information of hardware and necessary software to support the system; taxpayers (including property survey and house office settings are primitive and taxpayers find it difficult numbering); trained, capable and motivated human to pay the tax. Office automation with corporate setting resources; proper equipment, software and physical is almost nonexisting. At present, the importance of settings, well defined marketing and communication newly formed Revenue Department is recognized by all, mechanism, and a result management mechanism. but the reality is that KMC has not been able to provide Result management here refers to the monitoring, proper office space for this department. evaluation and control mechanism. At present, KMC is lacking the complete system and it could be termed as At this stage all the major cities in the region are the constraint toward effective and efficient resource benefitting from the use of Information Technology. mobilization. There are scopes to increase computer applications to speed up procedures, reduce costs and improve accuracy. (a) Database KMC also has realized this fact and is trying to develop Not only for the Integrated Property Tax (IPT), but also GIS of the city, but such activities must be accelerated for other taxes and fees, KMC does not have proper with proper coordination with all internal departments database and information about taxpayers. The and external] ine agencies concerned. In this aspect also importance of database and information is always KMC policy is not clear. acknowledged by KMC, but has never tried to build it in time bound manner despite several recommendations (c) Marketing & Communication from various studies and experts. KMC must participate In addition, there should be a well-defined and take ownership in the process of creating and communication mechanism so that all the stakeholders maintaining required database and it should not be left related to this system are informed on time. At present, for donors to assist. At this stage, KMC do not have any KMC neither has any information about taxpayer's policy about building and updating crucial database, not willingness and ability to pay nor the views of different only for resource mobilization, but also for other stakeholders such as various organizations, elected purposes. representatives, and central government. Although KMC has its own FM radio station, it has not been Property survey, house numbering activities and exploited to the required level. The interaction between preparing a comprehensive database are prerequisites business community (and taxpayers) and KMC hardly for IPT and House & Land Tax. In this fiscal year KMC takes place. KMC communicates with the business estimated to collect revenue of 60 million rupees from community and the taxpayers only through the House and Land Tax and 2.5 million rupees from the publication of notices in daily newspaper. Business IPT. The first three months of the fiscal year have already community perceives it as one way communication and passed without any development in this regard. KMC opined that it is not enough. Consequently, on one hand, is collecting only the voluntary payment of house and taxpayers have no access to the developments inside land tax and nothing has been done regarding building KMC, and on the other, the image of KMC remains the required database. There is no clear understanding unfavorable among general public. There is a total lack either at the political level or at the administrative level of "marketing concept". as to how the target will be achieved. Similarly, last year, for the collection of business tax, collection teams Information and Communication Strategy ofKMC clearly were mobilized in all the wards and achievement was mentions about communication objectives, strategy and 142.43 percentY This year KMC estimated to collect expected outputs (see Annex 14), but to a large extent it '3:f6 ···.,.. MUNiCiPAL':FINANGc is not practiced in reality. This situation could also be (iv) Issue of Municipal Bond termed as a hindrance in effective resource mobilization. Prior to the promulgation ofLocal-SelfGovemance Act, 1999, the municipalities ofN epal were functioning under (d) Result Management the Municipality Act, 1991, which authorized the Another important part missing in KMC revenue municipalities to issue Municipal Bonds. Under Chapter collection system is result management. There is no 10 (Special Arrangements for Metropolitan City) Section clear internal policy about monitoring, evaluating, and 63.2 clearly mandated the metropolitan city to issue taking necessary follow-up and corrective actions in municipal bonds. Issue of Municipal Bond is a new relation to revenue administration. concept to the local authorities in Nepal. But the LSGA superceded the Municipality Act and has not given this (e) Lack of Enforcement authority to the municipalities. KMC officials view this In addition, there are problems of initiating action against as an obstacle in generating necessary funds for the city. tax defaulters because provision of the Regulations of the Act regarding enforcement right is ambiguous and (v) Lack of Cost Recovery Concept. the process is lengthy. Recovery of arrears and dues by As discussed earlier, revenue will continue to be seizure and remand of moveable properties as provided inadequate in relation to the growing responsibility for by LSGA cannot be enforced because of cumbersome operation and maintenance. IfKMC is to fulfil its wish process involving several central government agencies. to take over responsibility for urban services from the Although LSGA Chapter 10 provides for auction sale line agents, it must seek ways and means to recover this of property belonging to defaulters, this has never been cost from the beneficiaries. As matters stand, this has practiced. not been addressed and, as a result, operations and maintenance is often neglected and, in any event, is So it could be concluded that the lack of comprehensive beyond the financial resources of KMC. or integrated revenue collection system is an obstacle towards effective and efficient resource mobilization, The concept ofUser Pay in relation to municipal services creating a resource gap for infrastructure development is relatively new for the people of Kathmandu. No and urban service delivery. politician likes to raise taxes or charge fees and no citizen likes to pay them. At present, KMC does not have a (ii•V Poor Human Resource Management clear policy regarding cost recovery for the services it is Poor human resource management have also affected providing to its constituents. overall financial management of KMC. Inadequate number of qualified and motivated human resources has hindered the fiscal functions of all the departments and 10.5.2 Expenditure Planning/Budgeting wards. There is no human resource planning, resulting in lack ofjob analysis and proper procurement of human The two-day workshop organized by ADB TA for KMC resources. Training, development and career planning ward chairpersons and department heads, on March 6 are also neglected aspects. Furthermore, performance & 7, 2000, identified issues related to the Expenditure appraisals are not done resulting in motivation and Planning/Budgeting 13 which are as follows: discipline problems. 10.5.2.1 Issues As mentioned earlier in the issues, tax collection is a technical job and it demands highly motivated New budget should incorporate principles of professionals and other employees. At present, the fiscal decentralization. Revenue Department of KMC is understaffed (Annex Wards should be autonomous to prepare the 19) and the qualification of all present employees are budget, wards should collect business tax and all yet to be examined. records should be maintained there. While prioritizing the projects, the citizen Furthermore, it seems that managerial and administrative participation should be taken into account. qualifications of most of the elected representatives are Budget should not be traditional and it should also deficient at this stage. Therefore, poor human consist of local area plans. resource management could also be termed as a problem Appropriate planning about budget preparation in the resource mobilization initiatives of KMC. should be there with ample time. Budget should be formulated and passed by the (iii) Result Management Framework not Developed Municipal Council before the beginning of fiscal yet. year. As in the case of KMC revenue collection system, the Austerity measures should be adopted to control result management component has not been developed unproductive costs. yet for the expenditure planning/budgeting process. Lack of fiscal discipline in the implementation There is no clear internal policy about monitoring, of budget. evaluating, and taking necessary follow-up and Lack of political commitment in the budget corrective actions in relation to budget administration. Expenditure planning should guide fund Similarly control mechanism and accountability has also allocation. not been spelt out clearly. To sum up, Budget Long Term or Periodic Capital Budget and Performance Appraisal System, which is very important, Investment Plans are not prepared. is lacking at present. 5.2.2 Challenges 10.5.3 Private Sector Participation The above-mentioned issues regarding expenditure The first stakeholders workshop identified the following planning/budgeting reflects the following problems for issues related to the Private Sector Participation: KMC: 10.53.1 Issues (i) Budget Preparation Process not Completed on Time: l. Unable to promote investment for the Chapter 6 of Local Self-Governance Act, 1999, clearly development of the city. defined in detail about Formulation of Plans of 2. Lack of vision for long term investment planning. Municipality and Process of Implementation with time frames. In the past, KMC had not followed the time frame The following critical issues related with PSP are prescribed in the Act. KMC should adhere to the mentioned in the Interim Report of the ADB TA: provisions of the Act. 1. PSP Institutionalization the policy framework and (ii) Long-term or Periodic Capital Budget and other working papers should be passed by the Investment Plans are not Prepared KMC board. The capital budget is largely concerned with the creation 2. PSP Awareness and Dissemination to the Key oflong-term assets (roads, pipes, schools, water treatment Stakeholders: PSP policy, programs and impact plants etc.). The capital budget details the local should be communicated widely to KMC and its government's long-term capital improvement needs. stakeholders. A marketing strategy and public Governments commonly establish a uniform and relations campaign to promote PSP needs to be organized multi-year (5 year) capital investment plan envisaged. (CIP) to outline the public facilities, infrastructure, and 3. PSP HRD Training: The training events will be land purchases that the jurisdiction intends to implement crucial to the institutionalization ofPSP in KMC. during a multi-year period given the availability offunds. 14 Hence the availability of the targeted audience for each specific training activity is paramount Currently, KMC itself is preparing the budget for one to ensure success. Training events will have to year only, which means that the estimation of revenue be scheduled to assure maximum participation. 15 and expenditure is done for one year only. All long and medium term infrastructure plans of KMC have been 10.5.4 Accounting prepared by donor assisted projects. At present, KVMP is helping KMC by preparing integrated action plans. The first stakeholder's workshop identified the following KMC does not have necessary expertise and resources issues related to the financial management and at present. But from the viewpoint of CDS and its accounting system of KMC: implementation, KMC must have in-house capacity to formulate long-term investment plans. 10.5.4.1 Issues: progress on following targets needs to be improved, with Financial Management particular regard to: - Issues Valuation of fixed assets. 1. Lack of effective financial management system. Valuation of inventory held in various stores and 2. Lack of fiscal system that will make KMC consumption report. fmancially autonomous and accountable towards Reconciled balance of various bank accounts local people. including wards and departments. Loan and interest payable to ADB. Accounting Related Other unpaid liabilities .. Issues 1. Financial Statements are not completed in time. The management of KMC should be serious regarding 2. No timely auditing. late status of targets and all possible help and guidance 3. Audited financial statements are not available to should be provided to achieve it. If these targets are not the taxpayers and general public. met on time, the purpose of CAS will be defeated. ADB 4. Advances and irregularities are not settled on TA in its final interim report has published a revised time. target schedule (Annex 16), and KMC management must 5. Financial information is not available from the direct its efforts in attaining it. It is observed that Wards and Departments on time. whenever account related programs are prepared and 6. Information regarding Accounts receivable and the management asked to cooperate, they are engaged Accounts payable are not updated. with the problems of crisis management of solid waste disposal issues. It is true that the number one priority of KMC is solid waste management, but CAS issues should 10.5.4.2 Challenges: not be ignored, because financial accounting is the heart of financial management system and effective financial Although efforts have been put forward for the management is the lifeblood of any organization. implementation of CAS by various parties concerned, there are still many things to be done to achieve complete (ii) Continuous Support for Corporate Accounting success. As mentioned earlier, KMC must actively System (CAS) participate and own all the aspects of management On various occasions, KMC staff and officials expressed procedure in order to be effective to achieve its goals. that there should be a continuous support program After consultations, study and observation in relation to focused on human resource development and day-to- the implementation of CAS, the consultant felt that active day problem solving during the introduction stage of participation and feeling of ownership among KMC staff CAS. For the support of CAS, the contract period of were not satisfactory. Despite commitment from the consultant from the Nepal Administrative Staff College political leadership, people sti_ll doubt whether CAS will (NASC) has completed (August 2000). Similarly the be implemented successfully or not. The above- service term of finance consultant of ADB TA ended on mentioned issues regarding implementation of CAS also October 2000. After that period, there are chances that reflect the following critical problems for KMC: some problems may arise, which could affect the system. Or still, there could be some confusion among KMC (i) Late Status of Targets staff about the system or process. In such cases, there After the formation of CAS Implementation Unit, tnust be a finance expe1i from outside ofKMC to provide various targets for improved financial management is necessary services or for problem solving. Although set (Annex 15). Some of the targets that were set to be the services of finance expert may not be required on completed before July 16, 2000 (for the introduction of daily basis, he/she should be available at regular intervals CAS) were late as production of some statements could for necessary consultation and support. not be done within the required time frame. As a result the: status of some of the assets/liabilities will remain an (iii) Uncontrolled Advances unconfirmed element of CAS, and as a result the The practice of sanctioning advances to employees, Municipality Fund will also remain unconfirmed. elected members, wards, clubs, institutions and departments is prevalent at KMC at present. Sanctioning Targets regarding balance sheet items of KMC are also of advance after advance by the authorities without late, although work on them is continuing. Nevertheless, settling the accounts of advances previously sanctioned is also in existence. The increasing volume of accounting and reporting procedures and activities, outstanding advances of the KMC reveals this practice. resulting flaw in the internal control. This practice is to be completely checked by the authorities and provision of the rules and system relating (vi) Result Management Framework not Developedyet to sanctioning of advances to wards and departments be As in the case of previous areas of municipal finance, stopped and instead, alternative system be adopted, e.g., the result management component has not been department-wise budget. Delay in clearance of advances developed yet. There is no clear internal policy about will have direct adverse effect in timely booking of monitoring, evaluating, and taking necessary follow-up expenses and it will lead to incorrect expenditure and corrective actions in relation to CAS. statement as well as weak budgetary control system. (iv) Submission ofStatements/Returns from Wards 10.5.5 Identification of legislative Gaps !Departments Submission of monthly statements/returns from all wards There exists various gaps or oversight in the current and concerned departments to the Account and Budget legislation related to the municipal finance of local Section of Finance Department is a precondition for governments. Financial constraints at the national level production of monthly statements of KMC. Delay in have led to shortfalls of financing of municipal submission of statements/returns by any of the wards/ infrastructure development and the central government departments will delay in production of monthly adopted the policy of delegating powers to raise local statements ofKMC by the Account and Budget Section taxes. This fiscal year's budget ofNepal has emphasized of Finance Department. this policy. Local governments are allowed to raise various taxes and fees. However, proper administrative Directives in this relation have been issued to all wards, procedures for implementing these resources have departments and concerned units, but the Account and remained silent. The following gaps are visible: Budget Section still has not received required statements/ returns from most of the wards and departments. Few 10. 5. 5.1 Special Provision for wards have expressed that they need further training, Metropolitan City is not Defined: but others are delaying it for no reason. So far the KMC management has taken no action. The main drawback ofLSGA is that there is no special provision for metropolitan and sub-metropolitan cities. (v) Lack ofAuditing and Internal Control It has treated metropolitan and sub-metropolitan cities Financial auditing by external parties may be undertaken and other municipalities as equal. In reality, the to accomplish a variety of goals. The traditional object complexities, challenges and resource needs of KMC is to ensure compliance with the law, that funds are raised can not be compared with other ordinary municipalities. and expended in accordance with the authorizing ln order to govern a metropolitan city like Kathmandu, legislation and following required procedures. In there should be a separate Act. addition to compliance or legal audit, there may be the additional objective of reporting the financial condition In the previous Municipality Act, 1991, there was a separate and result of operations. Essentially it means that the chapter (Chapter 10) containing Special Arrangements for presentation of accounts fairly reflects KMC's financial Metropolitan City, which described additional flmction, operations and balances. Lastly, audits may examine for authorities and responsibilities of a metropolitan city. In fraud or speculation - a stealing of funds for personal the LSGA, this chapter has been deleted. So from this benefits. KMC books of accounts for the FY 2054/55 aspect LSGA could be termed as regressive. (1997/98), 2055/56 (1998/99) and 2057/58 (1999/00) remained unaudited and authentic report has not yet been 10.5.5.2 House and Land Tax: published and the above-mentioned objectives have not been fulfilled. Chapter 8, Section 136.1 ofLSGA had mentioned about the House and Land Tax. Accordingly, "The Similarly, the internal audit unit is also not strong enough Municipality may levy house and land tax, as prescribed, to enforce proper internal control measures. There is on each house and land within its jurisdiction on the confusion on the part of most employees regarding basis of the size, type, design, construction and structure :374. MUNICIPAL ~fNANCE 1 ;;,>: of the house and compound and area covered by the criteria and collection procedures are not mentioned and house, as approved by the municipal council." 16 it also caused confusions to the municipalities. But there is also a separate House and Land Tax Act 10.5.5.5 Business Tax 2019 (1962), which is still active and is not superceded by LSGA. Prior to the beginning of this fiscal year 2057I According to LSGA Chapter 8, Section 138, "The 58 (2000/0 1) central government tax offices collected Municipality may levy and collect business (enterprise) house and land tax on the basis of this Act. From the tax, as prescribed, on trade, profession or occupation first day of the current fiscal year, tax offices of the within its jurisdiction on the basis of capital investment central government have shifted the responsibility of and financial transactions. "18 collecting house and land tax to the municipalities. The Act clearly mentioned that business tax could be Now the municipalities are confused with this situation, levied on the basis of capital investment and financial wh~ther to collect the tax as per provisions of House & transactions, but the LSG Rule 142 of the same Act has Land Tax Act 2019 or LSGA? On one hand, the central contradicted this provision and restricted the financial government did not clarify the situation, and on the other, autonomy of the local governments by prescribing the KMC and other municipalities also have not presented tax rates. For example, in this rule, airline services are the matter to concerned line agencies. There should not categorized under service industry and maximum tax be any confusion in the context of collection of taxes prescribed is rupees seven hundred only (Annex 5). The and the matter should be cleared. At present, KMC is rate prescribed is very low and could not be justified in following the provisions of House & Land Tax Act. comparison to the investments or transactions of airline services. 10. 5.5.3 House Rent Tax 10. 5. 5. 6 Vehicle Tax There exists similar confusion in the house rent tax also. Chapter 8, Section 137, subsections 1 & 2 of LSGA As per LSGA, Chapter 8, Section 138, besides vehicle mentions about the Rent Tax. Local Self-Governance registration and annual vehicle tax, municipalities may Rules, 2056 ofLSGA that prescribes 2% rent tax on the levy occasional vehicle tax, as prescribed, on all kinds rentals of land, building, shed, etc. of vehicle entering into its area. In this case also, there is a separate House Rent Tax A Municipality may levy the temporary vehicle tax as Act, which is still active and is not superceded by LSGA. follows on the roads it has constructed or having been Central government tax offices collect 15% rent tax on handed over to it: · the basis of this Act. (a) Five to twenty rupees for a private or on-hire bus, Now the confusion on the part of municipalities are: a) truck and tractor, rent tax collection procedures are not prescribed clearly, (b) Five to ten rupees for the minibuses, b) is 2% rent tax mentioned in the rules of LSGA in (c) Five to twenty rupees for the private or on hire addition to 15% central government rent tax? Or will bus truck and tractor, the municipalities get 2% out of 15%? This is not clear (d) Up to five rupees for other vehicle; and KMC has not yet started to collect this tax, nor inquired with the concerned line agencies. Note: (1) No tax referred to in this clause shall be levied on 10. 5. 5.4 Commercial Video Tax a highway and sub-highway. (2) The amount of tax under this clause shall be ex- According to LSGA Chapter 8, Section 142, "The pended in repair and maintenance of the con- municipality may levy tax prescribed on the video, cerned roads. projector, cable etc. used by any person or organization No irregular vehicle tax shall be levied within the same for commercial purpose." Municipality on the vehicle in respect of which vehicle registration and annual vehicles tax have been levied LSG Rule 146 ofLSGAjust prescribed the rate of rupees pursuant to clause (1 ). I two hundred to five hundred per video, but again specific ii)") ~~~TIETIETIE______TIETIETIE~~~~TIE~,0~~~~~g~-E.So,~~ 375 In this way the provisions made in the Rules of the same the basis of this, strategic challenges related with each Act have downgraded the spirit of the Act. component could be outlined. 10.5.5. 7 Tourism Fee Challenge 1: Bridge the fiscal gap. Challenge 2: Develop and manage integrated revenue As per LSGA, Chapter 8, Section 145, Municipalities collection system. may impose service charges for making available the Challenge 3: Introduce cost recovery concept. facilities. Subsection 3 of this section also mentions Challenge 4: Prepare long-term or periodic capital about the collecting fee from tourist places and other budget and investment plans. sources, for making available such facilities. Challenge 5: Prepare balanced budget. Challenge 6: Attract private sector participation in the Here again the controversy regarding tourism charge is provision of municipal services that it is not prescribed in the rules and collection Challenge 7: Implement CAS effectively and procedure is silent. efficiently. Challenge 8: Improve auditing & internal control 10.5.5.8 Duplication of Work Due to Lack system. of Coordination Challenge 9: Acquire, Develop, Motivate and Maintain quality human resources for LSGA clearly assigned mandatory and optional municipal finance (and all other) functions to the municipalities. It also clearly mentioned activities. in chapter 6 in detail about planning, implementation ChallengelO: Develop effective result management and management ofvarious types of projects. But it is system for all components of municipal not mentioned anywhere about how such projects will finance. be coordinated with central government line agencies, resulting duplication of works. 10.6 STRATEGIC FRAMEWORK Many institutions are involved in provid- ing infrastructure and services and there 10.6.1 Goals are duplications and confusions with ad hoc investment decisions based on project by Setting broad goals for an organization based on the vision project approach. There is a lack of coor- and mission statement is a vital part of the planning dination among different actors and stake- process. In KMC's context, while developing the broad holders. Different actors run their pro- goals, the objectives of CDS also should be considered, grams on the same territory with their own interests. They focus on their own inter- besides vision and mission. In the light of strategic ests and the more important and difficult challenges and other analysis, following broad goals could parts of the development programs were be outlined for the municipal finance component: postponed referring these will be done by others. 19 Goal1 Bridge the Fiscal Gap !,~ .... ...... .........t Goal2 Prepare Balanced Budget {; For example one of the main development activity of Goal3 Involve Private Sector in the Provision of ! KMC is to build and maintain sewerage lines in the city Municipal Services & Infrastructure and KMC is supposed to receive fee for sewerage Goal4 Implement CAS Effectively and Efficiently maintenance. But the Nepal Water Supply Corporation collects sewerage maintenance fee, which is also Goal 5 Develop Human Resources involved in the con:'ltruction of storm water drains. 1 0.6.2 Policy Objectives 10.5.6 Strategic Challenges In order to meet above goals, the system of municipal So far, SWOT analysis, issues and challenges related to finance will need to be restructured in accordance with municipal finance component have been covered. On a number of basic policy principles: 376 10. 6.2.1 Principles for the Proposed representatives should be required to justify their Financial Framework: expenditure decisions and explain why and how the revenue necessary to sustain that expenditure is raised. (i) Revenue Adequacy and Certainty: The fiscal system should be designed to encourage KMC needs to have access to adequate sources of accountability. KMC budgeting and financial affairs revenue - either own sources or intergovernmental should be open to public scrutiny, and local residents transfer- to enable it to carry out the functions that have should have a greater voice in ratifying decisions about been assigned to it. KMC should come forward to fully how revenue is raised and spent. Community exploit these sources of revenue to meet the participation in budgeting should aim to incorporate developmental objectives. KMC should have reasonable those groups in the community, such as women, who certainty of revenue to allow for realistic planning. face particular constraints in participating. It should also include a capacity-building component to ensure that (ii) Sustainability: people understand the process of prioritization - why Financial sustainability requires that KMC ensure a resources are allocated to one set of things rather than balanced budget (income should cover expenditures). to another. Accounting and financial reporting Given revenue constraints, this involves ensuring that procedures should minimize opportunities for corruption services are provided at levels, which are affordable, and malpractice. and that KMC is able to recover the cost of service delivery. It is the responsibility of the political leaders (v) Equity & Redistribution: to ensure that they set realistic budgets. However, there KMC must treat its citizens equitably with regard to the is a need for subsidization to ensure that poor provision of services. In tum, the central government households, who are unable to pay even a proportion of must treat KMC equitably with regard to service costs, have access to basic services. intergovernmental transfers. (iiO Effective and Efficient Resource Use: (vi) Development and Investment: Economic resources are scarce and should be used in Meeting the basic needs in the context of existing issues the best possible way to reap the maximum benefit for related to the resource mobilization issues related to the local communities. However, there are no mechanisms resource mobilization service backlogs will require available to ensure that municipal decisions will indeed increased investment in municipal infrastructure. Public lead to an effective allocation of resources. It is therefore Private Partnerships such as leases and concessions, important that local residents provide the necessary Administrative Systems, provide a mechanism for checks and balances. They can do this by participating attracting private investment in municipal infrastructure. in the budgeting process to ensure that resources are being put to their best use. Efficiencies in public spending and resource allocation will ultimately increase 10.6.3 Strategic Objectives the access of the poor to basic services. Strategic objectives are statements that represent (iv) Accountability, Transparency and Good organizational commitments. Commitments that will Governance: be used to obtain the mission and goals. In relation to KMC should be held responsible and accountable to the hierarchy of goals and principles, the following local taxpayers for the use of public funds. Elected strategic objectives could be prescribed: GOAL STRATEGIC OBJECTIVES Goal 1 Bridge the fiscal gap 1.1 Develop and Implement Integrated Revenue Collection System by the end of2003. 1.2 Introduce Cost Recovery Concept. 1.3 Lobby for favorable legislative change. Goal 2 Prepare balanced budget 2.1 Develop Multi-year Financial Planning. 2.2 Evaluate the use of debt financing to leverage spending in the Capital Fund. Goal3 Involve private sector in the 3.1 Conduct feasibility studies of already identified city provision of municipal services & service and infrastructure areas; and make them (private infrastructure sector/NGOs) involved in the project. 3.2 Negotiate with HMG/N and obtain authority for bulk distribution of electricity. Goal4 Implement CAS effectively and 4.1 Improve present CAS. efficiently 4.2 Improve auditing & internal control system. 4.3 Establish a program to upgrade KMC's accounting and fmancial reporting to international standards. Goal 5 Develop Human Resources 5.1 Implement comprehensive HR Management and Human Relations Programs. 5.2 Improve necessary training & development. 5.3 Design performance appraisal system and compensation and benefit system. 5.4 Implement health and fitness programs. 10.6.4 Strategies KMC have option to consider following strategies to achieve strategic objectives: Goal]: Bridge the Fiscal Gap Strategic Objective: 1.1 Develop and Implement Integrated Revenue collection system by the end of 2003 Strategy 1.1.1 Develop a special project to design and implement the Integrated Revenue Collection System. Strategy 1.1.2 Identify the donor who will assist in the implementation of project. (Given the present financial situation of KMC, donor assistance is essential). Strategy 1.1.3 Maximize KMC staff involvement in the project to transfer the learning in practice and to have feeling of ownershi . Strategic Objective: 1.2 Introduce Cost Recovery Concept Strategy 1.2.1 Privatize the solid waste collection in all the wards in a phased manner. Strategy 1.2.2 Negotiate with NWSC in sharing the drainage service charge collected from Municipal system. Strategy 1.2.3 Analyze "Ability to Pay" and "Willingness to Pay" capacities. Strategic Objective: 1.3 Lobby for favorable legislative change. Strategy 1.3.1 Demand a separate Act for KMC, which will guarantee complete fiscal autonomy. Strategy 1.3.2 lobby for amending the existing Act. Strategy 1.3.3 Prepare, approve and implement internal by laws related to resource mobilization. Goal 2: Prepare Balanced Budget Strategic Objective: 2.1 Develop Multi-year financial Planning Strategy 2.1.1 Prepare operating and capital budgets with 5-year budget horizons. Strategy 2.1.2 Monitor and control budget expenditures to minimize the potential of expenditure overrun (revenue shortfalls). Strategy 2.1.3 Study revenue potentialities for realistic multi-yearfinancial planning and resource mobilization. Strategic Objective: 2.2 Evaluate the use of debt financing to leverage spending in the Capital Fund. Strategy 2.2.1 Analyze KMC's debt-carrying capacity. Strategy 2.2.2 Decide upon the measures to enhance credit Strategy 2.2.3 Use concessionalloan finance Goal3: Involve private sector in the provision of municipal services & infrastructure Strategic Objective: 3.1 Conduct feasibility studies of already identified city service and infrastructure projects; and involve the private sector/NGOs in the project. Strategy 3.1.1 Prioritize the projects and determine the cost of detailed feasibility studies. Strategy 3.1.2 Create a new unit with qualified human resources to deal with PSP activities. Strategy 3.1.3 Allocate marketing budget and develop a comprehensive marketing plan to "market" the results of easibility studies. Strategic Objective: 3.2 Negotiate with HMG/N and obtain authority for bulk distribution of electricity. Strategy 3.2.1 Assess private sector's capacity and willingness to work on this project. Strategy 3.2.2 Develop framework for bulk distribution of electricity with the private sector involvement. Strategy 3.2.3 Negotiate with HMG/N. Goal 4: Implement CAS Effectively and Efficiently Strategic Objective: 4.1 Improve present CAS. Strategy 4.1.1 Review existing CAS and identify areas to be improved. Strategy 4.1.2 Develop and implement procedures to control and settle outstanding advances. Strategy 4.1.3 Organize intensive education program on accounting process, practices and internal control to ail concerned including elected representatives. Strategic Objective: 4.2 Improve auditing & internal control system. Strategy 4.2.1 Organize and strengthen the internal audit unit with approved human resources. Strategy 4.2.2 Prepare internal audit and control bylaws. Conduct awareness campaign for KMC employees and elected re resentatives. 379 Strategic Objective: 4.3 Establish a program to upgrade KMC's accounting and financial reporting to international standards. Strategy 4.3.1 Design sustainable automation system for accounting and financial reporting, establishing linkage with proposed integrated revenue collection system. Strategy 4.3.2 Develop policy about periodic reporting and dissemination of financial reports. 10.6.5 Options considered for management of local finances. The most important is legislative support the requirement of public participation in the budget process to ensure transparency. If this is to be fully 10. 6. 5.1 Long-term Option: effective, it also will be important to require that municipalities provide complete and timely information (i) Demand a Separate Act for KMC on their finances to local citizens and the public in As already mentioned under the identification of gaps, general on a accounting basis. there should be a separate Act for Metropolitan Cities. LSGA tend to be more general, because it does not 10.6.5.2 Short-term Options: distinguish a Metropolitan City from other ordinary and remote municipalities. In order to be a true local Demanding a new Act will take a long time to government, the provisions mentioned in the LSGA and materialize. So, for the immediate remedy, the following its Rules are not enough. Again the spirit of LSGA is short-term options could be considered: restricted by its Rules and in such a situation controversies will mar the positive aspects of the Act. (i) Amend the Existing Act Therefore, a separate Act, which is free from The first short-term option would be to request Ministry controversies and contradictions; which gives true of Local Development for necessary amendment in the autonomy; which incorporates true spirit of existing LSGA and its Rules to correct the oversights. decentralization; which also calls for transparency, KMC in cooperation with other Sub-metropolitan Cities accountability and participation, is needed in the context and Municipalities, should strongly lobby for necessary of implementation of CDS. amendment in the existing Act and Rules. There are many important measures to encourage sound (ii) Add New Sections in the Existing Act management oflocal finances that should be adopted as KMC also should lobby for adding a separate section in part of new legislation governing local finances. In the the LSGA containing Special Arrangements for area of revenues, this should include the devolution of Metropolitan City, as it was available in the previous authority to municipal governments to administer and Act. This will give KMC various rights and duties collect local taxes and fees. The law also should address including the right to issue municipal bonds for existing deficiencies in the structure of local taxes and infrastructure financing. fees. For example, it should include automatic adjustments for inflation to the tax base. The law also Similarly another section should define the coordinating should provide greater authority and discretion to local role of KMC. In order to avoid duplication with the governments over non-tax revenues, especially in the central government programs, there should be a area of fees for services. mechanism of coordination which should be spelled out in the Act itself. With regard to budget management, the new legislation should include measures regarding the adoption of a balanced budget and of a multi-year capital budget. To 10.6.6 Justifications encourage prudent cash management, the new legislation should set limits on the use of short-term loans from Justification regarding options considered for legislative any source to fund operating expenses. support is self-explanatory. For the strategies considered, it has already been reflected during environmental and Finally, there are two important additional measures that organizational analysis, and issues and problem are necessary to encourage the prudent and efficient identification. But in the context of CDS implementation, 3ti0. justifications for strategies considered may be adequate to cover all types of expenditures. Since capital summarized as follows: projects and some infra O&M projects will not be completed in one year's budget period, KMC must Strategic Objective: 1.1 Develop and Implement prepare operating and capital budget for at least 5-year Integrated Revenue Collection System by the End of2003 budget horizon. In order to face the main challenge of how to fulfill the resource gap, one of the main areas of intervention in Similarly, monitoring and control mechanism must be Kl\1C's context is to create a strong system of revenue operational to gauge the upcoming risks. collection. Without a proper system, the activities will not lead to desired outcomes. Therefore there must be a Again, in order to prepare a balance budget KMC must strong system for effective collection of much needed study the revenue potentials, along with the expenditure resources. side. In the present situation where KMC is facing resource Strategic Objective: 2.2 Evaluate the Use of Debt constraints, KMC alone will not be able to develop the Financing to Leverage Spending in the Capital project, therefore assistance from external sources must Fund. be sought. A measure of an organization's financial strength is whether it can borrow from the capital markets without Developing a project to design a system is not enough. outside assistance. At this stage KMC should analyze Any system is relevant only when it is owned and the debt-carrying capacity. Various options should be implemented. From that viewpoint, the project and the considered in this area. system should be owned by KMC; and active involvement of the KMC staff is a basic requisite. Strategic Objective: 3.1 Conduct Feasibility Studies ofAlready Identified City Service and Infrastructure Strategic Objective: 1.2 Introduce Cost Recovery Projects; and Involve the Private Sector/NGOs in the Concept Project. The goal of bridging the fiscal gap could also be met In order to achieve the goal of private public partnership through strategic objective of introducing cost recovery in the provision of municipal services and infrastructure, concept. In this area, the important need of the hour is KMC should now go into action. This strategic objective to privatize the collection of solid waste management could be met through the strategies already outlined. services. Although it cannot be done at once, it must be done in different phases and KMC could have the Strategic Objective: 3.2 Negotiate with HMG/N and following benefits: Obtain Authority for Bulk Distribution ofElectricity. In the private-public partnership dimension, this strategic o More than fifty percent of the total work force of objective is very important to KMC. Obtaining authority KMC are cleaning staffs and ifthey could be laid for bulk distribution of electricity means a lot to KMC. off and transferred to private sector in different For effective resource mobilization, it could be an phases, KMC will have more time and resources effective tool KMC ever had. It is possible to have this to look into other critical issues. authority with private sector involvement and careful D KMC policy of public-private partnership will be strategy implementation. successful and will attract private sector to work withKMC. Strategic Objective: 4.1 Improve Present CAS Alternatively, KMC also should negotiate with NWSC Next broad goal is to implement CAS effectively and in recovering the drainage service charges, because efficiently to acquaint the true financial position and to KMC is building and maintaining the city drains. Such have fiscal transparency. It could be achieved by a negotiation can generate significant revenue for KMC. improving CAS, which calls for reviewing the present system and identifying the areas to be improved. Strategic Objective: 2.1 Develop Multi-year Similarly, if all concerned persons including elected Financial Planning representatives are not familiar with accounting Another dimension of the broad Goal 1 is related with requirements, procedures and control mechanism, then preparing balanced budget, which could be termed as there will be problems. Therefore, it is very essential to broad Goal 2. Resources available with KMC must be organize intensive education programs. Strategic Objective: 4.2 Improve Auditing & Internal members and 20 nominated members). Similarly, KMC Control System. board consists of all35-ward chairpersons, 2 nominated Without proper auditing (internal and external) and members, Mayor, Deputy Mayor and the executive internal control mechanism, fiscal discipline will be a officer deputed from the Ministry of Local Development. daydream; and true aad authentic fiscal statements will All the functions ofKMC are carried out through wards, not be available. Therefore, it is essential to improve departments, and sections. auditing and internal control system. Institutional Strengthening of KMC - ADB TA has Strategic Objective: 4.3 Establish a Program to already completed the following organizational Upgrade KMC's Accounting and Financial management activities under Institutional Strengthening: Reporting to International Standards. In order to improve reliability and image of KMC •!• Finalization of organizational structure accounting system, it is necessary to upgrade KMC's •!• Job position fixation accounting and financial reporting to international •!• Job description of all the wards, departments and standards. sections. But the program is finding it difficult to get results in 10.6.7 Uncertainties and Risks the implementation side. It shows that KMC lacks its Related to the CDS, With or Without own capacity to manage and take care of all the functions Municipal Finance Interventions assigned to them. The institutional and manpower capacities available at KMC shows that it can only In order to improve bankability, intervention in the manage a fraction of the tasks assign to them. In order municipal finance components is a must. Without such to have effective and efficient city management, there is interventions, the financial situation of KMC and a pressing need for capable and dynamic city managers. ultimately the city cannot be improved. At present, KMC But, again, the question is: Does KMC really have such is extremely weak fmancially. The generation of revenue kind of city managers, be it on the part of elected is poor and the funds are inadequate to meet the needs representatives or municipal staff including the executive of the urban areas. In such a situation, failure to apply officer sent by the MLD? The combination of unclear appropriate intervention will adversely affect entire vision and structure, limited capable human resources, KMC and its constituents. Therefore, the situation and weak financial management has disabled the without municipal finance interventions could not be majority of municipalities, including KMC to undertake imagined in the context of CDS implementation. any substantial development activities on their own. It is now evident that municipalities can no longer do The first condition for implementing CDS is that KMC "business as usual" with concentration to solve the must ssume ownership of the entire programs and problems of past. It must focus on the problems of activities. The top and middle level managers ofKMC present and future; and strategic management will prove must be willing and able to accept and bring desired to be an effective tool. changes. Annex 17, 18, 19 & 20 illustrate the total manpower available in the KMC Finance Department, Revenue 10.7 TOOLS FOR DEVELOPMENT Department and account related manpower in the rest of the departments respectively. The Finance Department -10.7.1 KMC's Current Organization is basically concentrating on the expenditure side, and Capacity whereas the Revenue Department is concerned with income side only. It is clearly evident from the data that At present, KMC's organization structure is huge, at present situation, all the departments and units under consisting of35 wards, 12 departments and 33 sections KMC, which has linkage;"with finance, are understaffed. employing 2,475 employees. KMC's current organization structure is illustrated in Annex 3. ADB TA has prepared job descriptions for the Metropolis Council, the supreme body ofKMC, consists department and its heads, but it is not sufficient. The of 197 council members (Mayor, Deputy Mayor, all35 roles mentioned in the job descriptions focus on current ward chairpersons plus 2 nominated members, 140 ward situation only, whereas they should also cover a broader perspective for the foreseeable future. For example, 0 Rewards while estimating human resources need for Revenue 0 job Evaluation Department, it did not take into account the human D Compensation/Benefits resources need for new house and land tax/integrated 0 Discipline property tax. But from the first day of this fiscal year, the central government shifted the property tax collection 4. Maintenance ofHuman Resources responsibilities to the municipalities and KMC was not D Safety and Health prepared for this. As a result, the Revenue Department 0 Employee/labor Relations felt tremendous pressure of shortage of human resources for the added responsibility. The above-mentioned human resource management functions, along with related issues should be identified Since Finance and Revenue Department constitute major and discussed thoroughly. On the basis of such area of the whole organization, proper job design and discussion and survey, required and doable policies proper job analysis is a must to focus on problems of should be formulated. Such policies must be present and future. The present trend show that the fiscal implemented strongly with proper monitoring and transactions of KMC is on the rise, in this context it evaluation, to solve the problems of today and tomorrow. could be suggested that Strategic Human Resource Management of entire KMC including finance and revenue department, should get number one priority. 10.7.2 Result Management This should be clearly spelled out. For instance, each element of human resource management functions as Another critical issue related to KMC's current mentioned below should be explored: organization and capacity is that there is a total lack of Result Management Mechanism for entire activities of 1. Acquisition of Hr1man Resources: KMC. As already discussed under each areas of D Human resource planning municipal finance, the problem of lack of result D job Analysis management mechanism is adversely affecting the 0 Recruitment: effectiveness of entire organization. In every sphere internal there is no system of looking back, stock taking and External applying corrective measures. Ad-hocism is prevalent, D Selection and, as a result, things are not get done in systematic 0 Employee socialization manner. For the effective implementation of CDS (or any other plans and programs), monitoring, evaluation, 2. Development ofHuman Resources feedback and taking necessary corrective actions could 0 Employeetraining be considered as an integral part of the process and D Management Development/leadership Development should not be left out for any reasons. From the strategic 0 Career Development management perspective, during implementation phase, control measures must be in place and they must be used 3. Motivation of Human Resources to achieve desired results. 0 job Design D Performance Evaluation 10.7.3 Logical Framework Matrix for Municipal Finance Development OBJECTIVES INDICATORS MEANS OF VERifiCATION ASSUMPTIONS The potential contribution of own The overall proportion of own source revenues in relation to Actual figures on a monthly and Local Development fee source of revenue is realized. total revenues (excluding grants and loans) is increased to 60% year end basis. remains constant. (as specified in the draft budget). The actual revenues collected from these taxes is equal or more Actual figures on a monthly and No external factor than the estimated amount shown in the draft final budget. year end basis. negates this target. The actual revenue collected from these taxes is equal or more Actual figures on a monthly and No external factor than the estimated amount shown in the draft final budget. year end basis. negates this target. Integrated revenue collection system designed and implemented. Data entry into billing system of All concerned staff and elected representatives have understood CAS. the justification and operational procedures for the activities specified and use them. Multi-year financial plan completed Plan document Accounting is managed in a more CAS is finalized and adopted by KMC by July 17, 2000. KMC Budget document. efficient and transparent manner. CAS is introduced and operated on Monthly income and expenditure statement prepared according Statement of Monthly Income & Commitrnentofi<11Cto sustainable basis using computer software. to CAS from August '00. Expenditure. implement CAS. Computer Use in CAS by July 17, 2000. Reports printed. II KMC management has fmancial information on assets, liabilities Financial statement (Balance Sheet) and net worth of KMC by December 2000. showing various assets, liabilities and KMC's reserve (net worth). Necessary organizational and staffmg Staff understand and operate CAS smoothly from July 17, 2000. arrangements and systems developed and in place to implement CAS. 15 Account staff of the departments, 3 5 ward secretaries and Training report. 35 ward accountants trained in CAS by Dec. 200 l. All required staff are in place and working according to new/ Minutes of Municipal council, revised job description by July 2000 Board meetings. Private Sector Participation PSP Unit established with appropriate human resources Minutes of Municipal Board meetings. Faeasibility Study of major PSP projects complete Feasibility Study Report I I I M!JNJCIPAL FINANCE 10.8 CONCLUSIONS 10.8.1.3 Private Sector Participation 10.8.1 Summary of findings & All required policy frameworks, guidelines and standard Recommendations operating procedures necessary to work with the private sector is complete at present and awaiting KMC board This city diagnostic report examines current status, issues approval. Similarly, an Executive Task Force and an and problems, and potentials for municipal finance Operational Working Group is functional now for reform in KMC. It also identifies current opportunities marketing tasks. It is now necessary to enhance KMC and constraints and recommended strategies for capability to analyze and evaluate various aspects of the int•~rvention. projects such as cost-benefit and sustainability, etc. With this development it is expected that PSP will be Also, the report looks at the factors that might contribute institutionalized in KMC and will attract the private to the success of the refonn, as well as those that could sector in various projects in the years to come. constrain the process over the next few years. The positive factors include the ongoing efforts by 10.8.1.4 Accounting representatives of central government officials and MPs to amend the legislation. Among the constraints are the Although there are scores of problems associated with cunent economic, political and social crisis prevalent implementation of Corporate Accounting System (CAS), in Nepal. it is expected that with the help of timely and appropriate interventions from the KMC management, these 10.8.1.1 Resource Mobilization problems could be solved in due course of time. In return, it will help KMC management make decisions IfKMC, as a local government, has to provide effective by providing true fiscal picture of KMC. and efficient municipal services to people, it must have a dependable source of income independent of outside Another possibility associated with CAS is that, ifKMC grants including those from central government. As goes for comprehensive revenue collection system, then other local governments, KMC is also forced to go for in the automation process CAS will be linked with the massive resource mobilization and there are no other comprehensive revenue collection system, which will choices. Hence, there is an urgent need for KMC to bring quality and productivity. strengthen its capability and competence to enhance revenue and mobilize resources as provisions of the Act. 10. 8.1. 5 Strategies 10.8.1.2 Expenditure Planning/Budgeting Finally, the report recommends municipal finance strategies that have four components. The first is a The lesson learned during formulation of current year's refonn agenda that describes the key areas of resource budget is "Timely intervention could bring desired mobilization. The second is a series of activities in the change". Now the challenge in front of KMC is to context of balancing the budget aspect for the CDS provide continuity to the process. It is expected that the implementation. The third is related with involving budget formulation process for the budget of fiscal year private sector in the provision of municipal services and 2001/02 will begin on time as prescribed in the Act. At infrastructure. And the fourth is concerned with present, Kathmandu Valley Mapping Program (KVMP) improvements in the internal accounting and reporting is preparing Integrated Action Plan (lAP) for KMC and process. it will be a great help in the ward level and town level Expenditure Planning/budgeting process. Based on the issues, problems and gaps, the following strategic challenges have been identified: If KMC can develop Budget Performance Appraisal System this year and apply it, then it could be assumed Challenge 1: Bridge the fiscal gap that KMC would move forward in the correct direction Challenge 2: Develop and manage integrated revenue in the years to come in relation to expenditure planning/ collection system. budgeting. It will have a positive spiral effect on the Challenge 3: Introduce cost recovery concept. KJ\1C financial management system. Challenge 4: Prepare long-term or periodic capital budget and investment plans 385 "PITY BIAGNOSTIC ' ' ,' ,', :~~,;<-~C-c, Challenge 5: Prepare balanced budget. Strategy 1.3.3 Prepare, approve and implement internal Challenge 6: Attrac~ private sector participation in the by laws related to resource mobilization. provision of municipal services Challenge 7: Implement CAS effectively and Goal2: Prepare Balanced Budget efficiently Challenge 8: Improve auditing & internal control Strategic Objectives 2.1 Develop Multi-year Financial system. Planning Challenge 9: Acquire, develop, motivate and maintain Strategy 2.1.1 Prepare operating and capital budgets quality human resources for municipal with 5-year budget horizons. finance (and all other) activities. Challenge10: Develop effective result management Strategy 2.1.2 Monitor and control budget expenditures system for all components of municipal to minimize the potential of expenditure finance. overrun (revenue shortfalls). Strategy 2.1.3 Study revenue potentialities for realistic With the help of these strategic challenges the following multi-year financial planning and broad goals, strategic objectives and resource mobilization. strategies are formulated: Strategic Objectives 2.2 Evaluate the use of debt financing to leverage spending in the Capital Fund Goal]: Bridge the Fiscal Gap Strategy 2.2.1 Analyze KMC's debt-carrying capacity. Strategic Objectives 1.1 Develop and Implement Strategy 2.2.2 Decide upon the measures to enhance Integrated Revenue Collection System by the end of credit. 2003 Strategy 2.2.3 Use concessionalloan finance. Strategy 1.1.1 Develop a special project to design and Goal 3 Involve Private Sector in the implement the Integrated Revenue Provision of Municipal Services & Collection System. Infrastructure Strategy 1.1.2 Identify the donor who will assist in the Strategic Objectives 3.1 Conduct feasibility studies of implementation of project. (Given the already identified city service and infrastructure areas; and present fmancial situation ofKMC, donor involve them (private sector/NGOs) in projects by 2003. assistance is essential). Strategy 3.1.1 Prioritize the projects and determine the Strategy 1.1.2 Maximize KMC staff involvement in the cost of detailed feasibility studies. project to transfer the learning in practice and to have feeling of ownership. Strategy 3.1.2 Create a new unit with qualified human resources to deal with PSP activities. Strategic Objectives 1.2 Introduce Cost Recovery Concept Strategy 3.1.3 Allocate marketing budget and develop Strategy 1.2.1 Privatize solid waste collection in all the a comprehensive marketing plan to wards in phased manner. "market" the results of feasibility studies. Strategy 1.2.2 Negotiate with NWSC in sharing the drainage service charge collected from Strategic Objectives 3.2 Negotiate with HMG/N and Municipal system. obtain authority for bulk distribution of electricity. Strategy 1.2.3 Analyze "Ability to Pay" and "Willingness to Pay" capacities. Strategy 3.2.1 Assess private sector's capacity and willingness to work on this project. Strategic Objective: 1.3 Lobby for favorable legislative change. Strategy 3.2.2 Develop framework for bulk distribution Strategy 1.3.1 Demaad a separate Act for KMC, which of electricity with the private sector will guarantee complete fiscal autonomy. involvement. Strategy 1.3.2 Lobby for amending the existing Act. ...MUNICIEALFINANCE Strategy 3.23 Negotiate with HMG/N. Strategy 4.3.1 Design sustainable automation system for accounting and financial reporting, Goal 4 Implement CAS Effectively and establishing linkage with proposed Efficiently integrated revenue collection system. St~rategic Objectives 4.1 Improve present CAS. Strategy 4.3.2 Develop policy about periodic reporting and dissemination of financial reports. Strategy 4.1.1 Review existing CAS and identify areas to be improved. GoalS Develop Human Resources. Strategy 4.1.2 Develop and implement procedures to Strategic Objectives 5.1 Implement comprehensive HR control and settle outstanding advances. Management and Human Relations Programs. Strategy 4.1.3 Organize intensive education program on Strategic Objectives 5.2Improve necessary training and accounting process, practices and internal development. control; to all concerned including elected representatives. Strategic Objectives 5.3 Design performance appraisal system, and compensation and benefit system. Strategic Objectives 4.2 Improve auditing & internal control system. Strategic Objectives 5.4 Implement health and fitness programs. Strategy 4.2.1 Organize and strengthen the internal audit unit with approved human resources. In addition, as a part of above reform measures, long- term and short-term options should be considered for Strategy 4.2.2 Prepare internal audit and control bylaws. legislative support. A separate Act should govern KMC, Conduct awareness campaign for KMC instead ofLSGA, and this will be very important in the employees and elected representatives. context of CDS implementation. Short-term options include amending and adding new sections in the Strategy 4.2.3 Design a system to facilitate appointment existing Act. of external auditor as provisions of the Act. Operational objectives and action plans will be formulated on the basis of above-mentioned hierarchy Strategic Objectives 4.3 Establish a program to of goals, strategic objectives and strategies. Important upgrade KMC's accounting and financial reporting to action plans will be presented in the city action plan. international standards. Table 5: Municipal finance - Issues and Implications iSSUES IMPliCATION ACTORS/DONORS Bridge the fiscal gap KMC cannot be sustained financially, if this issue KMC Board, donor agencies, Executive is not addressed. officer, finance & revenue department KMC Board, Private Sector, KMC Environment Dept., MLD Prepare balanced budget. KMC income should equal expenditures. A KMC Board, executive officer, wards & balanced budget is necessary to ensure that the departments, financial institutions, donor KMC stays solvent, (that is, that expenditure agencies, consultants does not exceed its revenues and reserves). Involve private sector and Following are the main reasons for delegating MLD, KMC Board, executive officer, private NGOs in the provision of responsibilities to private sector operations and sector, and consultants municipal services & NGOs in the provision of urban services: infrastructure 1. Reducing the cost of public services to consumers. 2. Relieving the financial and administrative burden on KMC 3. Satisfying unmet needs. 4. Increasing productivity and raising efficiency by promoting competition. Implement CAS In order to obtain true and accurate financial KMC Board, executive officer, Finance effectively and efficiently. picture of KMC, CAS must be implemented Department, Revenue Department, Wards, effectively and efficiently. CAS implementation unit, Local Consultants, other KMC departments, Internal Audit Unit. Develop Human I. Human Resources are the most valuable KMC Board, executive officer, Resources asset of any organization and key to the Administration Department, Wards, and success of that organization. other departments. 2. "If you dig very deeply into any problem, you will get people." - J. Watson Wilson 388 ANNEX 1 ADVISORY COUNCIL SUBJECT COMMITTEE ADVISORY COMMITTEE PROTOCOL AND LIAISON SECRETARIAT WARDOFFICES&NGO'S I I I COORDINATION I '---IIF===-----J.I_:D~E:.:_:P~U..:_TY;_:::::M~A:.:_Y~O:::_R_:;:'S_:;:S:.:;EC:::_R~E::_:T;.::A~R::,:IA~T_:I MUNICIPAL COMMISSIONER COMMISSIONER SECRETARIAT GENERAL ADMINISTRATION FINANCE AND ACCOUNT SOCIAL WELFARE AND URBAN DEVELOPMENT MUNICIPAL ENGINEERING DEPARTMENT DEPARTMENT PUBLIC SAFETY AND ENVIRONMENT DEPARTMENT DEPARTMENT DEPARTMENT Organization Structure (Previous) ANNEX 2 Kathmandu Metropolitan City Office I Advisory Board I ~i::~i ..GJ .2! )[:§;,.· .0.:· ;p Deputy Mayor m 'll 0 ;u ..71 ANNEX: 3 Improved Organizational Structure Kathmandu Metropolitan City Office '------,------'--iAccount Committee and other committees J Advisory Board Different Committees !Protocol & Mayors Secretariat I I jury !-'1ann1ng Commission )···· Urban Health Section ·•s:: c:·.. Food & ',z Drug Section Q ;g r- ::n z ,·')> Total DOlll...._,':,, FINANCE AI'INEX: 5 Rate of Business (Profession) Tax 1. Commercial Goods: Minimum Maximum (Rs.) (Rs.) (1) On .wholesale and retail business ofcigarette, liquo~; jewelry, video, cassette recorder and player. 750.00 (2) On the wholesale and retail business of construction materials, computer, electric goods, camera, television, radio, carpet, petroleum materials and the like. 500.00 5,000.00 On the wholesale of daily use, cotton fabric etc. 360.00 1,000.00 2. On Expert Consultation and other Professional Services: 360.00 3,000.00 (1) Doctors 360.00 3,000.00 (2) Kaviraj (Aurvedic doctors) 360.00 1,000.00 (3) Engineers 360.00 3,000.00 (4) legal Practitioners 360.00 3,000.00 (5) Auditors 360.00 3,000.00 (6) Dentists 360.00 3,000.00 (7) Researchers and Consultants 360.00 3,000.00 (8) Computer analysts and Programmers 360.00 3,000.00 (9) Insurance Agents 360.00 3,000.00 (1 0) Surveyors 360.00 3,000.00 (11) Translators 360.00 3,000.00 (12) Veterinary Doctors 360.00 3,000.00 (13) Share Brokers 360.00 3,000.00 (14) Goods Carrier and Companies 750.00 3,000.00 3. Construdion Business: Construction business with the head office located at the Municipality. 2,000.00 10,000.00 4. Produdion-oriented Industries: industrial business manufacturing goods by using or processing raw materials, semi-processed materials or waste materials or other materials. 2,000.00 10,000.00 5. Energy-oriented Industries: Industrial business producing energy from water resources, air, solar power, coals, natural oil, gas, bio-gas and other sources. 2,000.00 10,000.00 6. Agricultural and forest-oriented industries The industrial business based mainly on agricultural and forest products. 1,500.00 10,000.00 7. Minerallndustries: Industrial business excavating and processing minerals. 1,500.00 10,000.00 8. Tourism Industries: Tourist residence, motel, hotel, restaurant, resort, travel agency, skiing, gliding, water rafting, pony trekking, trekking, hot air ballooning, para sailing, golf-course, polo, horse-riding, etc. 10,000.00 50,000.00 9. Service Industries: Press, consultation service, film business, public transport business, photograph, laboratory, airline services, cold storage etc. 400.00 700.00 10. Construction Business: Road, bridge, rope-way, trolley bus, tunnel, flying bridges, and construction and operation of industrial, business and residential complex. 1,000.00 10,000.00 11. Communication Services: (1) Private sector postal business. 360.00 1,500.00 (2) Private sector telephone, fax services, photocopy, mobile phone, tSt>, STD, e-mail, internet, radio-paging. 360.00 1,500.00 (3) Courier services. 360.00 1,500.00 (4) Printing and publication. 360.00 3,000.00 12. Financial Services: (1) Commercial banks carrying on financial transactions excluding those under the full ownership of His Majesty's Government. 5,000.00 50,000.00 (2) Head office of a finance company carrying out financial transactions as well. 5,000.00 10,000.00 (3) Branch offices of finance companies. 1,000.00 3,000.00 (4) Insurance Companies. 5,000.00 10,000.00 (5) Foreign currency exchange. 1,000.00 3,000.00 (6) Securities transactions. 1,000.00 3,000.00 (7) Cooperative banks. 1,000.00 3,000.00 13. Health services: (1) Non-governmental hospital. 1,500.00 500.00 (2) Nursing home. 2,500.00 5,000.00 (3) Clinic and lab. 500.00 3,000.00 14. Education services: (1) Private sector school, campus, university 360.00 1,000.00 (2) Training and Research center 1,000.00 3,000.00 (3) Typing, computer and language training centers 1,000.00 3,000.00 (4) International non-governmental organization 2,500.00 5,000.00 15. Repairing and Maintenance services: (1) Heavy equipment, bus, truck, car, motorcycle, tempo, cycle repairing facilities. 360.00 3,000.00 (2) Radio, TV, watch, pressure, cooker, heater, telephone set, electric goods repairing center. 360.00 1,500.00 16. Other services: (1) Advertisement service. 360.00 1,500.00 (2) Foreign employment service. 1,000.00 5,000.00 (3) Native employment service. 360.00 1,500.00 (4) Secretarial service 1,000.00 5,000.00 (5) Housing company and real estate. 1,500.00 5,000.00 (6) Beauty parlour, hair dressing. dry cleaners, photo studio, tailoring etc. 360.00 1,500.00 (7) Painting service to prepare sign board. 360.00 1,500.00 (8) Animal slaughter house. 1,000.00 3,000.00 (9) Meat-sellers. 360.00 1,500.00 17. Other Business: (1) Park, picnic spot. 750.00 1,000.00 (2) Casino. 5,000.00 100,000.00 (3) Tour operator. 2,500.00 4,000.00 (4) Massage parlour. 1,000.00 3,000.00 18< Temporary Haat (weekly temporary market) Bazaar or Mobile shop: Notwithstanding anything contained elsewhere in this Annex, the following business tax may be levied on the following temporary Haat (weekly temporary market, bazaar or mobile shop). (1) Two rupees to twenty-five rupees on the mobile shop including Khuncha. (2) Two to twenty-five rupees on each quadrupeds. (3) One rupee to five rupees on each duck or chicken. (4) One rupee to three rupees on vegetables and fruits shop. (5) One rupee to ten rupees on others. 19 . An annual tax of Rs. 360.00 to Rs. 5,000.00 as per transactions and level of the service and business not included in the classification above. Source: Nepal: Urban Sedor Straleg}j Background Paper IV- Urban Finance. ANNEX: 6 land Revenue or land Tax and House-land Tax 1. House-Land Tax:- Price of House-land Rate of the Tax Up to the first one million rupees None Up to one million thereafter Rs. 300.00 lump sum Up to three million thereafter 0.05 per cent Up to five million thereafter 0.25 per cent Up to ten million thereafter 0.50 per cent For the remaining amount 1.50 per cent 2. Land Revenue:- (1) Mountain Region (a) land of the landowner holding the land with an area of the twenty llopani or less than that:- Classification Unit Per of land Ropani Rs. Grade I Grade II Grade Ill Grade IV GradeV (X) Sloppy Minimum 0.38 0.25 0.12 0.11 0.03 land Maximum 1.90 1.25 0.60 0.55 0.15 (y) Paddy Minimum 0.50 0.38 0.25 0.20 field Maximum 2050 1.90 1.25 1.00 (b) land of the landowner holding the land with an area of forty llopani or the less than that:- Classification Unit Per of Land Ropani Rs. Grade I Grade II Grade Ill Grade IV GradeV (X) Sloppy Minimum 0.44 0.37 0.28 0.20 0.13 land Maximum 2.20 1.85 1.40 1.00 0.65 (y) Paddy Minimum 0.62 0.40 0.37 0.25 field Maximum 3.10 2.00 1.85 1.25 (c) landowner holding the land with an area of forty llopani or more:- Classification Unit Per of Land Ropani Rs. Grade I Grade II Grade ill Grade IV GradeV (X) Sloppy Minimum 3.10 1.80 0.60 0.20 Land Maximum 15.50 9.00 3.00 1.00 (y) Paddy Minimum 4.40 3.10 1:80 field Maximum 22.00 15.50 9.00 3. For three districts of Kathmandu Valley:- (1) Land revenue at the rate of Rs. 25.60 in minimum and of Rs.125.00 in maximum shall be imposed and recovered on the land in the city areas of the three districts of the Kathmandu Valley (Kathmandu, lalitpur and Bhaktapur). (2) The rate of land revenue to be imposed on the lands of mountain areas of the three Districts of the Kathmandu Valley (Kathmandu, Lalitpur and Bhaktapur) shall be the same as in the case of the land in hilly areas. 4. Terai Region:- (!} With regard to the land ofthe landowners holding the land with an area ofone and halfBigaha or less than that:- Classification Unit (Per of land Ropani Rs.) Grade I Grade II Grade Ill Grade IV Grade V Paddy field/ Minimum 6.80 6.00 4.80 3.60 Sloppy land Maximum 34.00 30.00 24.00 18.00 (2) With regard to the land of the landowners holding the land with an area of three Bigaha or the less than that:- Classification Unit (Per of land Ropani Rs.) Grade I Grade II Grade Ill Grade IV Grade V Paddy field/ Minimum 8.50 6.80 5.00 4.00 Sloppy land Maximum 42.50 34.00 25.00 20.00 (3) With regard to the land of the landowners holding more than three Bigaha of land:- Classification Unit (Per of land Bigaha Rs.) Grade I Grade II Grade ill Grade IV Grade V Paddy field/ Minimum 70.00 62.00 50.00 30.00 Sloppy land Maximum 350.00 310.00 250.00 150.00 5. Land Tax:- Region/Unit Classified A B c D E F Unclassi fied (a) Kathmandu Valley Per Ropani Rs. 128.00 102.40 76.80 61.44 46.08 35.84 61.44 (b) Mountain Region Per Ropani Rs. 35.84 30.72 25.60 20.48 15.36 10.24 20.48 (c) Terai Region Per Kaththa 50.00 40.00 30.00 25.00 20.00 15.00 25.00 Note: (1) Five rupees for each plot of land of the landowner in the districts in the hilly region where land survey has not been completed, and the land Revenue Act, 2034 has not been enforced, on the basis of the previous plot. (2) The rate ofthe land revenue of the land, in the district which have been declared as tea and rubber plantation zone and in which tea and rubber plantation zone and in which tea and rubber farming is carried out and the land, occupied by private forest, shall be the minimum rate as per the type of the land concerned. (3) In cases where the total amount ofthe land revenue and land tax is less than two Rupees per annum, the minimum annual land revenue or land tax shall be set at two Rupees. (4 No land revenue shall be levied on the land on which land tax has been levied. (5) His Majesty's Government shall, on the recommendation of the concerned Municipality, determine the area where the land tax is to be levied. Source: Nepal: Urban Sedor Strategy, Background Paper IV- Urban Finance. 397 ANNEX: 7 Rate of the Integrated Property Tax Value of the Taxable Rate (Annual) Integrated Property Up to one million rupees From fifty to two hundred rupees From one million to two million rupees From two hundred to four hundred rupees From two million to three million rupees From four hundred to seven hundred fifty rupees From three million to five million rupees From seven hundred fifty to one thousand rupees Over five million rupees From ten thousand to one thousand five hundred rupees Source: Nepal: Urban Sector Strategy, Background Paper IV. Urban Finance. ANNEX: 8 1991/1992 1992/1993 1993/1994 1994/1995 1995/1996 2048/049 2049/050 2050/051 2051/052 2052/053 Accounting Codes Budget Heading Actual Budget Actual Budget Actual Budget Actual Budget r;, '9i:f <04.. QQi.fi.T~·INCOliiiE ;i ; il>; ; .3,195,247 I .. 4;663,2751 4,507,889 r. 14;757;37~ I .. 5j518,s811 .... 14i47o;A:Q'9¥. ,,;rif!l,siP,573 .!. 14,433;'0iPo'•l I 90 'bf/ 00. LAND REVENUEtf:jouse'& CAf.io'rAX ·.· 6,7()0,000 90 01 01 Land Revenue 90 01 02 House & Land Tax 6,200,000 6,200,000 90 01 03 90 01 04 '; .~o. ,o2; Yoo ,· 1· 90 02 01 90 02 02 -T 90 04 00 'YEHiq'l.l;:TAX . 2';519.975 . · 3;S67,025 3~394.3s:iii ; . 5il44'4,250 .4,132,742 ·s;ooo,ooo 3.S93,40f'; . ''1' 4,40a,ooo ·. 90 04 01 Bus, Truck, Lorry 748,000 1,023,020 808,675 479,800 650,000 90 04 02 Mini Truck 730,300 977,500 1,064,075 416,500 516,500 409,650 500,000 90 04 03 Mini Bus - other (Public) 1,200,000 1,412,798 1,400,000 1,491 ,610 1,500,000 90 04 04 Car- other (Public) 1,046,205 1,675,650 1,282,182 1,551,300 244,550 1,551,300 278,250 290,000 90 04 05 Jeep, Van -other (Public) 81,435 114,825 93,115 177,600 106,050 177,600 105,575 110,000 90 04 06 Tempo - other (Public) 7,650 36,412 15,300 22,400 225,000 90 04 07 Mini Bus - Private 199,420 254,100 279,720 498,000 260,170 498,000 388,670 400,000 90 04 08 Car - Private 462,615 844,450 675,292 844,450 1,047,272 1,030,600 707,906 725,000 90 04 09 Jeep, Van- Private 500 750 2,470 2,025 9,540 8,000 90 04 10 Tempo - Private 90 04 11 Scooter & Motor Cycle 90 04 12 Tractor and Power Tiller 90 04 13 Rickshaw & Cart ~,, 9'0. os~~~·oa::· . 'i;(Nr~'GAAi'EPi;P:~oPeRliYiiit~J(:2'0' 90 05 01 Integrated Property Tax 90 06 00 ENTERTA'i~MENT TAX 90 06 01 Cinema Hall 90 06 02 Video Hall 90 06 03 Cultural Exhibition Hall 90 06 04 Theatre, Music Concert 90 06 05 Circus, Magic, Acrobatic Show hi 90 ,()7 ''o6T' :Xj"COMMERCIAl.VIDE()SHOI/ItTAXi: :f·~t p.:; ••.•.. •.. I . ~ . J>.· . . ·· ·•·.· •·;. !.I . 11 .i''i1Z:~4t l'z, ,~z;:· ·~~ ... • . ·r. . I . ··t::i'~ek/1 ;!:'·,•· ,}f~;;; r •. il 90 07 01 Cable Operator 90 07 02 Video 90 07 03 Projector 1"9o. olt >orrt •t~IAoveR.u$QI(Nt~if~ >l > '~i ::~;.nrr %i2~~;o~$11l ;,~:~;: ;i;Z.1'2t!l"dP'l~' ·· ;>148,ssqk,, ..· .Mo.ooo I< 1s9;o44l' ' ·~2r~booTJ .;:;r. !:~2~.22sl '' · '1t&ts;Q~ol 90 08 01 Sign Board 70,554 5,000 135,060 400,000 176,244 250,000 902,621 1,000,000 ANNEX: 8 : <;' 1991/1992 1992/1993 1993/1994 1994/1995 1995/1996 2048/049 2049/050 2050/051 2051/052 2052/053 Accounting Codes Budget Heading Actual Budget Actual Budget Actual Budget Actual Budget ~. 90 08 02 Neon Boards 2,250 2,000 13,400 30,000 11,600 15,000 16,560 45,000 90 08 03 Hoarding Boards 221,295 5,000 400 10,000 1,200 5,000 10,045 500,000 ·~~·: 90 08 04 Banners & Posters I' '.!lo J.O : oo;;p: .;,., ·si.Jsal'>iE.ss. PRoFess faN r Ax· · · · ·. :: • 381,17:3 . 734,250 · ., 964,645 ···• >2;173{f2& • 1:197,0!15~~6; : ••.; ·1 ;soo;ooo · '"3,687;946" • · 6,18o';6l>o"' ··~ •.z 90 10 01 Trading Business 3,750 66,000 10,850 82,500 5,650 50,000 7,600 200,000 90 10 02 Professionals 6,000 52,000 5,300 81,250 6,800 20,000 2,100 200,000 ··~ 90 10 03 Construction Business 9,750 91,250 11,800 93,750 5,550 50,000 5,200 180,000 90 10 04 Manufacturing Industries Business 67,593 75,000 79,760 373,375 100,210 250,000 226,950 230,000 ~~0 90 10 05 Energy and Power Generating Business 27,000 61,000 48,500 103,750 1,700 75,000 148,000 1,000,000 :~ 90 10 06 Agro-Forestry Based Business 18,000 27,000 24,500 51,000 21,700 75,000 49,700 170,000 \J 90 10 07 Mining and Minerals Processing Business 54,500 100,000 68,400 187,500 81,000 300,000 134,450 150,000 0 90 10 08 Tourism Based Business 144,430 150,000 635,835 1,000,000 401,135 500,000 2,586,697 2,000,000 ·~ 90 10 09 Service Business 50,150 112,000 79,700 200,000 573,350 180,000 527,249 2,050,000 90 10 10 Property /Estate Leasing Business 90 10 11 Communication Business 90 10 12 Financial Service Business 90 10 13 Health Services Business 90 10 14 Educational and Training Business 90 10 15 Repair & Maintenance Service Business 90 10 16 Other Services 90 10 17 Other Business 90 10 18 Temporary Haat Bazar & Mobile Shops 90 10 19 Others I 91• oo 1oo !INCOME FROM FEES I • 7,2'77,1461•·· 7,594,ooo I 9,181,6531 11,881,60G I· 5,681,0841 12,925;000 I 22,469,5zol< 17,998,700 I 91 01 01 Vehicle Entrance Fee- Thankot 760,196 746,000 804,721 1,250,000 889,222 1,250,000 2,105,399 2,200,000 91 01 02 Old Bus Park 91 01 08 New Bus Park Fee 1,026,751 1,200,000 1,626,210 4,000,000 3,767,191 4,000,000 4,876,102 5,363,700 91 01 03 Parking Fee 500,000 500,000 300,000 91 01 04 Property Valuation Fee 27,785 30,000 8,233 10,000 57,161 75,000 69,137 100,000 91 01 05 Building Map Approval Fee 5,374,764 5,500,000 6,630,489 6,000,000 874,949 7,000,000 15,384,082 10,000,000 91 01 06 Shop at Public Land (Hyumata) 69,200 100,000 62,000 100,000 500 91 01 07 Buspark Terminal, Bhugol Park Toilet 18,450 18,000 50,000 92,061 34,800 35,000 92 .·oo·> oo. INCQME FROM PROPERTY 1,332,:3o8 · :.. 2,218,666 1;494,478 .1;681;753 !:3;221 ,518 3,411;82:3 92 01 ·. 00 INCOME FROM RENTAL 1,332,308 2,218,666 1,494,478 1,681,753 >3,221,518 .,3,411;823 92 01 01 Income from Rental- Bhugol Park 1st floor 108,000 334,000 540,000 324,000 782,744 816,018 92 01 02 Income from Rental- Bhugol Park Ground Fl• 498,832 853,000 569,101 512,191 1,023,600 682,921 682,921 92 01 03 Income from Rental - Bhugol Park Beneath S 251,389 189,000 153,234 241,333 226,000 241,333 241,333 92 01 04 Income from Rental - Hawker Shed near NEJ 95,109 96,666 68,875 115,999 105,608 115,999 82,649 110,199 ANNEX: 8 1991/1992 1992/1993 1993/1994 1994/1995 1995/1996 2048/049 2049/050 2050/051 2051/052 2052/053 Accounting Codes Budget Heading Actual Budget Actual Budget Actual Budget Actual Budget 92 01 05 Income from Rental -Old Buspark shops 287,968 696,000 148,668 835,200 401,021 1,200,000 1,324,371 1,451,352 92 01 06 Income from Rental -Overhead Bridge 92 01 07 Income from Rental -Sub-way 92 01 08 Income from Rental -Slaughter House 92 01 09 Income from Rental- Advertisement Spots 92 01 10 Income from Rental- Equipment 92 01 11 lncomefromRentai-Wardproperty 91,010 50,000 14,600 15,000 97,600 100,000 107,500 110,000 I'92 ;02' 00 I ltNCOMEFBOM FMSTUDIQ'; l 3:" I ·~,, J - 'l' > I ~.'~l·· - li ,;: -: L :· I 92 02 01 Income from Rental- Studio 92 02 02 Income from Program Sponsorship 92 02 03 Income from Advertisement 1• s3~t'oo' oo !INCOME FROM. illlvEsrMENT , , r .~ 1 - F - I: < 1· , ,, - 1 · U'4 - 1 : - 1 :;~:s: 3uo,ooo 1 93 00 01 Interest from Bank Deposit 300,000 93 00 01 Interest from Revolving Fund 93 00 02 Interest Income from Govt. Bonds 93 00 03 Dividend Income from Equity Investment 93 00 Gain on Sale of Investment SUNDRY INCOME ' 1,610,000 . 2,063,574 1,639;703 ... ''.: 6,134,000·: MIN.OR FEES ... 510,000 264,410. 917,633 ·.. .'> 1,;152,000· Application Fee 13,858 16,000 14,445 8,000 60,000 94 01 02 Registration & Other fee/charges 293,417 314,000 87,043 262,959 300,000 94 01 03 Environment & Sanitation Fee 50,000 94 01 04 Tender Document Fee 94 01 04 Tender Document Fee 64,110 65,000 42,230 65,000 45,900 65,000 18,700 25,000 c s: 94 01 05 Map Form Fee 94,475 105,000 108,205 350,000 412,410 450,000 618,200 600,000 :z 94 01 06 Certification Fee ~Q 94 01 07 Other Fee (Copy) 9,361 10,000 12,487 14,000 15,689 18,000 15,487 17,000 ""0· ~ 94 01 08 Other Form Fee 64,110 35,000 172,675 50,000 135,000 100,000 . ~·.. ., 94 01 09 Pet Animal (Dog) Registration 1 94 o:z J:lo 1 1 cliAR.m:s '< /,. 1 83,o5a 1 1o,ooo l 4,310 1 s;ooo 1 5,390.:! ; · >': < s;ooo 1 <; · 4.5S'o I 5,ooo I 94 02 01 Miscellaneous/Tourism Fee 79,026 i,.fl;:, 94 02 02 Wastage Disposal Charge <;,~. 94 02 03 Block Number Plate 4,030 10,000 4,310 8,000 5,390 8,000 4,580 5,000 94 02 04 Road Maintenance Charge 1.94"' 03 00 I roTHER- SALES } ,; I 334,!181 I 6oo,ooo I 0¢; 1,359,9851.. 5,600,000 r, 164,553 I L. s;'~90;ooo I 2'7,4,7341 . 12,975,000 I 94 03 01 Auction of Animals 334,681 600,000 1,350,985 600,000 164,553 300,000 195,698 250,000 94 03 02 Auction of Materials 94 03 03 Sale of Scraps 5,000,000 5,000,000 2,625,000 :::r:., 'o ANNEX: 8 N>'',' 1991/1992 1992/1993 1993/1994 1994/1995 1995/1996 :·0 2048/049 2049/050 2050/051 2051/052 2052/053 -;,;; Accounting Codes Budget Heading Actual Budget Actual Budget Actual Budget Actual Budget .-< 94 03 04 Sale of Trees 0 94 03 05 Sale of Compost 5> G) •• 94 03 06 Gain on Sale of Assets z 94 03 07 Recovery from Bus Terminal Telephone 79,036 100,000 @ 1 :(1) 1 '94 o4'' ' oo 1 'I FINEAN0 PENALT¥:', • ,,, , :i •:q 1,814,1651 49o,ooo 1 ;;:> 443,8691 s1s;M5l :iA~· •rssz.1.211 >s, 5o1.ooo 1 1;341,o2t.P>' 2,oo2,ooo 1 . -1. 94 04 01 Contractor Performance Penalty ··o' 94 04 02 Late Fee Penalty 64,663 85,000 364,899 513,615 319,805 400,000 1 ,345,147 1,500,000 94 04 03 Arbitration Fee 336 2,000 2,528 3,000 364 1,000 1,874 2,000 ';:d;. 94 04 04 Other Penalty q]J 94 04 05 Forfeiture of Deposit Payable 200,000 8,125 200,000 500,000 @ ;o 94 04 06 Miscellaneous/ Insurance claim received 1,749,166 403,000 76,442 100,000 223,833 -;··· :\OCTROI . ·.152,563,44'9' 232;6s5,ooo 204)30,065: ;:252,875,ooo 213)944,690 ~257,000,000 214,400,902 293, 100~000 1. Thankot Depot 144,008,802 220,000,000 184,312,074 230,000,000 195,135,193 230,000,000 196,162,603 250,000,000 2. Tribhubhan lnt'l Airport Depot 2,374,186 6,000,000 9,285,429 11,000,000 10,779,591 16,000,000 16,619,770 25,000,000 3. Banepa-Dhulikhel 78,502 80,000 720,512 800,000 1,412,690 1,800,000 541,204 2,400,000 4. Bidur 70,564 75,000 71,817 75,000 161,125 200,000 200,000 5. Janakpur Cigarette Factory 2,318,602 3,000,000 4,020,937 5,000,000 1,947,590 2,500,000 1,077,325 5,000,000 6. Nepal Oil Corporation 3,168,999 3,500,000 5,919,296 6,000,000 4,491,331 6,000,000 10,000,000 7. Miscellaneous 543,794 17,170 500,000 500,000 -,·-s; c' 'o< , /''··,,,,, ,,'. ''lTOTALlOWN ,, SOURCE REVENUE ',.: ' 167,139,383 24S,740,941: 221,577,659 : ... 290, 134;389 22~,466, 111 '294,574,599 251,.317,500 )335,377,523 ''.oojoo I GMNTSANo.ooNATIONS . '1;350,00Q': · 1.~15;M& 01 :~•;•()0 j j GRANTS FROJ\11. HMG · Joo,ooo 115,000 01 01 HMG -Administration 100,000 115,000 95 02 02 Local Dev. Fee (Tax) j'795 :03\~)·00 r . f. GfMNT-IN-AID(FORErGril):: . ;;.; I ' 1' : . - -I \ ·•· >:I ;,•·.. I 20,100,000 I :•;,2,sso:aa5l' 1,250,oool .. 251,2:osl ..• 1,000,000 I 95 03 01 ADB Grant 95 03 02 EU Grant 95 03 03 Grant from other international agencies 20,100,000 2,580,885 1,250,000 251,205 1,000,000 95 03 04 Grant from TUGI 95 03 05 Grant from ILO 95 03 06 Grant from World Bank (CDS) 95 03 07 Grant from RUDO/USAID 0 0 '·!1, ,, jji: • • " • ;jj " < •• •- I 95 04 00. I I GRANUN2AfO{NATIONAiS):;:' • 1': •~ • ;l I • i;.t;• ~;;;{l· • - :I I ·~> > - .;] >d u}.; '.- I 95 04 01 Grant from other organizations/municipalities ANNEX: 8 1991/1992 1992/1993 1993/1994 1994/1995 1995/1996 2048/049 2049/050 2050/051 2051/052 2052/053 Accounting Codes Budget Heading Actual Budget Actual Budget Actual Budget Actual Budget 95 04 02 Grant from national organizations 95 04 03 User's Group/People's participation 1 96 oo oo 1 .trNcolllisFROMRECEiercoNrAAcrs .. , :·;i~ 8. Rastriya Banijya Bank 3782 z () 9. UNICEF Grant A/C Balance 529,830 629,912 10. Grant AIC Balance m 36 01 01 Cash Balance ,_, ··-'. ·.~ GRANO TOTAL· \" '· J .j;;o,",,, ~. ANNEX: 8 1996/1997 1997/1998 1998/1999 ;() . •:::j 2053/054 2054/055 2055/056 Accounting Codes Budget Heading Actual Budget Actual Budget Actual Budget Actual ·~·· 1 r:.9o 04,. oo JTAX INCOME I 8,512,8361 , 15,455,ooo I: 12,BS7,onj si,775,ooo I 17,246,3631 53,4-0o,ooo .tb;329,5011 I 0 . ~:~. 90 .01 00 LAND REVENUE/HOUSE & LAND,JAX 2,500,000 3,5so,348 I ·· .z4,oo&,ooo ·z 90 01 01 Land Revenue 2,500,000 3,580,348 4,000,000 0 90 01 02 House & Land Tax 10,000,000 JJ) ·~ 90 01 03 Land Tax •o 90 01 04 Tax on Sale of House and Land 10,000,000 9.0 02 OCJ ••RE.tHTAX ;o 90 02 01 Property Rent Tax m -o 90 02 02 0 'so 04 4,774,957 5,660,00Q' 4,799,616 . ! 15,025,000 5,319,924 . 15,025,000 c "4,799,~21! ;o ioo VEHICLE TAX ~ 90 04 01 Bus, Truck, Lorry 689,520 850,000 716,650 3,000,000 528,820 3,000,000 614,000 90 04 02 Mini Truck 431,950 500,000 441,750 1,300,000 433,880 1,300,000 394,150 90 04 03 Mini Bus- other (Public) 1,852,420 2,000,000 1,901,124 4,500,000 2,228,548 4,500,000 90 04 04 Car - other (Public) 460,570 500,000 549,900 1,300,000 625.440 1,300,000 90 04 05 Jeep, Van - other (Public) 93,825 125,000 68,100 500,000 75,600 500,000 620,200 90 04 06 Tempo- other (Public) 10,675 25,000 20,400 100,000 13,150 100,000 259,660 90 04 07 Mini Bus- Private 303,030 450,000 271,150 500,000 327,800 500,000 90 04 08 Car - Private 923,587 1,200,000 823,717 3,800,000 1,066,921 3,800,000 90 04 09 Jeep, Van - Private 9,380 10,000 6,825 25,000 19,765 25,000 2,116,580 90 04 10 Tempo- Private 21,900 90 04 11 Scooter & Motor Cycle 703,844 90 04 12 Tractor and Power Tiller 61,600 90 04 13 Rickshaw & Cart 7,295 90. 05 00 ·INTEGRATED PROPERTY TAX 90 05 01 Integrated Property Tax 90 06 00 ENTERTAINMENT TAX 90 06 01 Cinema Hall 90 06 02 Video Hall 90 06 03 Cultural Exhibition Hall 90 06 04 Theatre, Music Concert 90 06 05 Circus, Magic, Acrobatic Show 1· 9o .o1 ·oo 1 • 1coMMERCIAL vtoeo sHow (TA.X · 1· • • l i1!f"5?'J • 1 ·· ·" I "~:• 1, ·· • ~>r:Jir • I 90 07 01 Cable Operator 90 07 02 Video 90 07 03 Projector 1 so .o8•0o•lt>IADVERTJseM'ENTTAX''::•'' I', 53s,94ol t;545;l 90 08 01 Sign Board 272,102 1,000,000 711,320 1,000,000 800,390 1,000,000 198,709 A 1\.11\.1 m:v. Q r1u ~~"1.L.ra. u 1996/1997 1997/1998 1998/1999 2053/054 2054/055 2055/056 Accounting Codes Budget Heading Actual Budget Actual Budget Actual Budget Actual 90 08 02 Neon Boards 15,770 45,000 47,453 250,000 77,720 2,500,000 7,600 90 08 03 Hoarding Boards 251,068 500,000 189,736 2,500,000 256,733 2,500,000 157,312 90 08 04 Banners & Posters 'c<90 '10 ••.oo. . E!IJSINESS PRO~ESSION TAX 1,562;948 > ''5,750,00()" '. 3;358,544 •.· ·so;ooo,ocio; 6;721,521 .7,375,ooo·· 1,444,855, 90 10 01 Trading Business 34,700 100,000 2,560 750,000 75,850 150,000 7,000 90 10 02 Professionals 4,100 10,000 21,280 250,000 33,300 50,000 5,200 90 10 03 Construction Business 13,800 20,000 9,760 250,000 40,000 50,000 3,200 90 10 04 Manufacturing Industries Business 139,075 250,000 376,715 1 ,750,000 420,110 450,000 174,850 90 10 05 EnergyandPowerGeneratingBusiness 138,000 1,000,000 57,000 3,750,000 129,500 150,000 64,000 90 10 06 Agro-Forestry Based Business 32,000 170,000 151,835 1 ,250,000 86,000 100,000 27,700 90 10 07 Mining and Minerals Processing Business 73,000 150,000 175,600 2,000,000 215,400 225,000 59,400 90 10 08 Tourism Based Business 651,473 2,000,000 1,862,234 21,250,000 4,824,961 5,000,000 723,045 90 10 09 Service Business 476,800 2,050,000 701,560 18,750,000 896,400 1,200,000 380,460 90 10 10 Property /Estate Leasing Business 90 10 11 Communication Business 90 10 12 Financial Service Business 90 10 13 Health Services Business 90 10 14 Educational and Training Business 90 10 15 Repair & Maintenance Service Business 90 10 16 Other Services 90 10 17 Other Business 90 10 18 Temporary Haat Bazar & Mobile Shops 90 10 19 Others :;;;: 1 91 .oo oo !INCOME 17Ro!Vi FEEs di 18,483,8861 u 20,242,560 I 15,244,5161 3o,818,os5l 17;o6o,1r1l 2S,s'lo,o65l 18,984,460 I c 91 01 01 Vehicle Entrance Fee- Thankot 2,087,390 2,200,000 2,011,705 10,000,000 2,715,640 10,000,000 2,976,750 z 91 01 02 Old Bus Park 5,000,000 112,237 Q 91 01 08 New Bus Park Fee 4,983,246 5,000,000 4,748,940 10,000,000 4,803,541 4,705,725 91 01 03 Parking Fee 300,000 300,000 1 ,543,334 3,000,000 3,301 ,994 ~ r 91 01 04 Property Valuation Fee 71,523 100,000 10,962 18,000 35,412 40,000 6,467 91 01 05 Building Map Approval Fee 11,104,937 12,500,000 8,469,939 10,000,000 7,764,573 10,000,000 7,320,895 i:·; 91 01 06 Shop at Public Land (Hyumata) 10,000 z· 91 01 07 Buspark Terminal, Bhugol Park Toilet 236,790 142,560 500,065 550,392 0 92 00 00 INCOME FROM PROPERTY •3,496,480 4,204,765 4,031,Ss1 ll1 ', ,c"j/ 92 01 00 INCOME FROM RENTAL ' 3,!96,480 4,204,7~ 4,031;351 92 01 01 Income from Rental - Bhugol Park 1st floor 816,018 816,018 816,018 816,018 840,658 816,018 816,018 92 01 02 Income from Rental - Bhugol Park Ground Fh 789,035 902,500 843,554 902,500 880,880 902,500 676,875 92 01 03 Income from Rental - Bhugol Park Beneath S 281,888 331,151 246,457 331,151 413,939 331,151 331,152 ,til 92 01 04 Income from Rental - Hawker Shed near NEt 110,090 219,960 54,990 219,960 54,990 219,960 329,940 · ·~· · · · J;> 0 ,, ANNEX: 8 0'1,,'> 1996/1997 1997/1998 1998/1999 2053/054 2054/055 2055/056 Accounting Codes Budget Heading Actual Budget Actual Budget Actual Budget Actual 92 01 05 Income from Rental- Old Buspark shops 1,499,449 1 ,935,136 1,743,800 1,935,136 1,710,000 1 ,935,136 1,877,366 92 01 06 Income from Rental -Overhead Bridge 2 )> 92 01 07 Income from Rental -Sub-way G) 92 01 08 Income from Rental - Slaughter House z 92 01 09 Income from Rental- Advertisement Spots 92 01 10 Income from Rental- Equipment §I· 92 01 11 Income from Rental -Ward property 500,000 505 100,000 01 I 92 : 02 00 r <: !INCOME FROM FM STlJOIO f> ' - I ::,pr ·- I ;_;: r ':'0 I -: I ' -·,' I < - ' I :;o' 92 02 01 Income from Rental - Studio m 92 02 02 Income from Program Sponsorship ..··~ 92 02 03 Income from Advertisement I, 93 'bo oo luiJCOME:'F='RoM INVESTMENT') ji; ':' - 1 t::. apo;ooo 1 ~' T' 1o,3oo,ooill ,., {122,6721 1,5oo,ooor,::., 552;2021 ~ 93 00 01 Interest from Bank Deposit 300,000 300,000 1,122,672 1,500,000 552,202 93 00 01 Interest from Revolving Fund 10,000,000 93 00 02 Interest Income from Govt. Bonds 93 00 03 Dividend Income from Equity Investment 93 00 04 Gain on Sale of Investment 94 oo ·oo' SUNDRY INCOME ••. 8,947,572 4;283,456 7,538,104~ 94 ~ MINOR FEES ···' 1,082,132 2,053,914 5,735,200, 94 01 01 Application Fee 57,395 94,812 47,043 94 01 02 Registration & Other fee/charges 155,779 1,064,111 1,200,000 1,212,990 94 01 03 Environment & Sanitation Fee 50,000 5,000,000 3,512,194 94 01 04 Tender Document Fee 1,000,000 1,000,000 01 04 Tender Document Fee 27,900 35,000 77,400 40,000 141,390 150,000 626,600 01 05 Map Form Fee 1,121,200 1,500,000 679,000 800,000 621,700 650,000 165,875 01 06 Certification Fee 94 01 07 Other Fee (Copy) 19,241 25,000 17,418 25,000 23,672 25,000 14,983 94 01 08 Other Form Fee 72,730 100,000 95,140 100,000 108,230 125,000 155,515 94 01 09 Pet Animal (Dog) Registration I 94. 02 00 F I CHARGES] ;:: ;,,: ' ; f l 25,SOO I 6,oool < '. . 14,6oo I J5;020,000 I ,s 31,700 r.:; / :r 35,000 l 9,0oo:l 94 02 01 Miscellaneous/Tourism Fee 10,000,000 94 02 02 Wastage Disposal Charge 5,000,000 94 02 03 Block Number Plate 25,800 6,000 14,600 20,000 31,700 35,000 9,000 94 02 04 Road Maintenance Charge L ,94 03 ·. oo,. ;[ .,i OTHER.'SPiLES '(; ,::~:;t ;;·~;. t 2;780)•42] . 360,000 p: '6,148,~if,1l 'Y?v> 20o;o.Ool1:}:; 227~738:1 ,300,000 I,'.,.', 385,630 I 94 03 01 Auction of Animals 194,804 250,000 53,333 100,000 95,579 150,000 250,474 94 03 02 Auction of Materials 94 03 03 Sale of Scraps 2,493,750 6,000,000 ANNEX: 8 1996/1997 1997/1998 1998/1999 2053/054 2054/055 2055/056 Accounting Codes Budget Heading Actual Budget Actual Budget Actual Budget Actual 94 03 04 Sale of Trees 94 03 05 Sale of Compost 94 03 06 Gain on Sale of Assets 94 03 07 Recovery from Bus TerminaiTelephone 92,188 110,000 95,178 100,000 132,159 150,000 135,156 I i\94 ;'04 \oo 95 02 02 Local Dev. Fee (Tax) 33,199,600 r:' I 95 03 · oo I I GRANT-IN-AID (FOREIGN) ·• I - I 31,5oo,ooo.l - I · 15s,ooo,ooo I · . 9o;d(lril•· • 139,1oo,ooo I 937,996' I ., 95 03 01 ADB Grant 20,000,000 z 95 03 02 EU Grant 90,000,000 100,000,000 ·7~ 95 03 03 Grant from other international agencies 31,500,000 66,000,000 90,000 19,100,000 937,996 '(), 95 03 04 Grant from TUG I m 95 03 05 Grant from ILO 95 03 06 Grant from World Bank (CDS) 95 03 07 Grant from RUDO/USAID :·•;&:;.. I 95 04 • oo 1· ·· I GRANT-IN-AID (NATIONAL) • 1 -, J - ·. 1 304,970 1 ''z'1o4,soo,ooo 1 , !~ d +' ,:: , •- ' 1· : · •· -' 1 ·o 95 04 01 Grant from other organizations/municipalities ·~ ~;· ANNEX: 8 o:i· 1996/1997 1997/1998 1998/1999 .Q 2053/054 2054/055 2055/056 Accounting Codes Budget Heading Actual Budget Actual Budget Actual Budget Actual ····~· 95 04 02 Grant from national organizations e< 95 04 03 User's Group/People's participation 304,970 104,500,000 ~· 1 ~6 ,oo ,•oo r I•Ncol~ou; FRoM RECEIPt¢oNrRAcrs t .1. .w ~ r . :~ ·~· 1 . ._ 1 : • 1 .•. " !;;. • 1 .gfi 96 00 01 Receipts from Contract 1 0 96 00 02 Receipts from Contract 2 (/) 96 00 03 Receipts from Contract 3 .:::! •. f) I 97 .:oo. ;00 I I PRIOR YEAR INCOME .•; • v> ,. 2,14t.?o.tl ;Y;SOo,'ooo I '•1,671;096 I . 300;000 I . 3,805,0G41·• / . 82,5oo,ooo I ..; 1}14~;9151 97 01 00 Loan/AdvanceRefund 2,141,301 500,000 1,671,096 300,000 3,805,054 2,500,000 1,747,915 ;;)J I . 98 i 00 oo.l . ru,a:sltinES WRITTEN BACK . ! .·. :< • >l . I • I . I ci I ;, . - .j· .···) ;. . I m \J 98 01 00 Liabilities Written Back 0 1 60 oo oo , , 1LOAN's r 4;1ss,327: 1 92,817.ooo 1 14,391;740 1 .3s7,ooo,ooo 1 40;148,3'27 p 423,93s,sool (32,149,1.731 ;o .., .. 60 01 00 ADB Loan 4,196,327 92,817,000 14,391,740 157,000,000 40,148,327 173,936,500 26,949,173 60 02 00 Loan from Local Banks 230,000,000 230,000,000 60 02 00 Town Development Fund 20,000,000 60 03 00 Loan from Deposit Accounts 5,200,000 · 35 00 00 jLAST YEAR'S BALANbE 39,64o,o7o ..'28,367,871 •• 28,397,919 47,885,170 . 45,423,686' 12,943,758 12,943:7;58 35 00 01 KMC Fund Balance 39,010,158 27,737,959 27,737,959 47,885,170 45,423,686 1. NRB A/C # 23 7,233,445 7,233,445 2. NRB A/C # 81 437,328 437,328 3. NRB AIC # 230 368,133 368,133 4. Himalayan Bank (Octroi) 4,861,519 4,861,519 5. Himalayan Bank (Parking Fee) 43,334 43,334 6. Nepal Bangladesh Bank 2001 C 7. Nepal Bangladesh Bank 1991 C 8. Rastriya Banijya Bank 3782 9. UNICEF Grant A/C Balance 629,912 629,912 629,912 10. Grant A/C Balance 30,048 36 01· 01 Cash Balance ·(;~N~ T~TJii/• ' . ~k1~s,1zs 488,575,19~ 34,<~-,6o4;34s ~,2e2:4oo,ooo 4s1;54'~,123 1,067,161,088· :,288,719,068 ANNEX: 8 1999/2000 2000/2001 2056/057 2057/058 Accounting Codes Budget Heading Budget Actual Budget I so o4 oo I TAX INCOME I !i3,4oi'J;oool 25,493;o6s p .146,051,ooo I 90 01 00 lLANO REVENUE/HOUSE<& lANO TAX I 25;000,000 I. 4;oi2,151 I ssJO:oo,ooo.l 90 01 01 Land Revenue 5,000,000 4,072,151 4,000,000 90 01 02 House & Land Tax 10,000,000 60,000,000 90 01 03 Land Tax 1,000,000 90 01 04 Tax on Sale of House and Land 10,000,000 90· 02 00 I RENTTAX .. .... I . ~···· +··· ; - l .... 2,soo,ooo I 90 02 01 Property Rent Tax 2,500,000 90 02 02 90 04 00 VEHICLE TAX 15,025,000 6,208,126 7,05'1,000 90 04 01 Bus, Truck, Lorry 3,000,000 666,500 90 04 02 Mini Truck 1,300,000 385,200 90 04 03 Mini Bus - other (Public) 90 04 04 Car- other (Public) 90 04 05 Jeep, Van -other (Public) 1,300,000 568,400 90 04 06 Tempo -other (Public) 500,000 184,770 90 04 07 Mini Bus - Private 90 04 08 Car- Private 90 04 09 Jeep, Van - Private 4,500,000 2,234,380 90 04 10 Tempo - Private 100,000 12,150 90 04 11 Scooter & Motor Cycle 3,800,000 2,076,661 90 04 12 Tractor and Power Tiller 500,000 57,100 90 04 13 Rickshaw & Cart 25,000 22,965 .s:: •. 90 05 00 !INTEGRATED PROPERTY TAX I " I " I 2,5oo,ooo I 90 05 01 Integrated Property Tax 2,500,000 j~l 90 06 00 I ENTERTAINI\IIENT TAX I _:___I . I · 4,ooo,ooo 1 )>··. ---- 90 06 01 Cinema Hall r- 90 06 02 Video Hall 'i'J 90 06 03 Cultural Exhibition Hall 90 06 04 Theatre, Music Concert 90 06 05 Circus, Magic, Acrobatic Show (') · · ~). I 90 07 00 I I COMMERCIAL VIDEO SHOW TAR'{ I " I - I " I m 90 07 01 Cable Operator 90 07 02 Video 90 07 03 Projector ;g,. I 90 08 00 I I ADVERTISEMENT TAX I 6,000,000 I . 3,797,9551 10,000,000 I 0 1.0 90 08 01 Sign Board 1 ,000,000 1,343,412 ;;}:!!: / ANNEX: 8 0,,;/ 1999/2000 2000/2001 2056/057 2057/058 Accounting Codes Budget Heading Budget Actual Budget 90 08 02 Neon Boards 2,500,000 2,223,973 90 08 03 Hoarding Boards 2,500,000 230,570 0 90 08 04 Banners & Posters .s;: _:G) 1 9o fa··· oo ·I< , sus1Ness PRor=_essloN TAX · · -.- ;,37s,ooo · 11;414;s3~• · ·. "~6Joo(l;ooo 1 ·z 90 10 01 Trading Business Q. 90 10 02 Professionals .;)~ 90 10 03 Construction Business _,,;:0 90 10 04 Manufacturing Industries Business ;:o 90 10 05 Energy and Power Generating Business _m ;.;''"0 90 10 06 Agro-Forestry Based Business 'Q 90 10 07 Mining and Minerals Processing Business };;::0 90 10 08 Tourism Based Business ,;;;"'-'! 90 10 09 Service Business 90 10 10 Property /Estate Leasing Business 90 10 11 Communication Business 90 10 12 Financial Service Business 90 10 13 Health Services Business 90 10 14 Educational and Training Business 90 10 15 Repair & Maintenance Service Business 90 10 16 Other Services 90 10 17 Other Business 90 10 18 Temporary Haat Bazar & Mobile Shops 90 10 19 Others I 91. 0() OQ,j,INCQME FROIY! ~~ES ' . ,; ; / ·.f:; .. 24;210,0651 . 36,221,356 I 98,7{,10,()1)0.1 91 01 01 Vehicle Entrance Fee- Thankot 3,500,000 4,212,850 4,000,000 91 01 02 Old Bus Park 200,000 1, i 77,835 1,300,000 91 01 08 New Bus Park Fee 5,000,000 6,057,375 5,100,000 91 01 03 Parking Fee 5,000,000 1,960,205 4,500,000 91 01 04 Property Valuation Fee 10,000 36,069 2,000,000 91 01 05 Building Map Approval Fee 10,000,000 22,218,150 80,000,000 91 01 06 Shop at Public Land (Hyumata) 411,100 1 ,500,000 91 01 07 Buspark Terminal, Bhugol Park Toilet 147,772 300,000 {"92:~;£or1, '~gl~:•of 00 1 1NCOME FROM RENTAL - - -" . -- 92 01 01 Income from Rental- Bhugol Park 1st floor 92 01 02 Income from Rental - Bhugol Park Ground Fl• 816,018 632,415 774,165 92 01 03 Income from Rental - Bhugol Park Beneath S 331,151 331,151 348,966 92 01 04 Income from Rental - Hawker Shed near NE,l 219,960 329,940 390,196 ANNEX: 8 1999/2000 2000/2001 2056/057 2057/058 Accounting Codes Budget Heading Budget Actual Budget 92 01 05 Income from Rental - Old Buspark shops 1,935,136 1,244,700 2,300,000 92 01 06 Income from Rental - Overhead Bridge 2,000,000 92 01 07 Income from Rental- Sub-way 92 01 08 Income from Rental - Slaughter House 3,500,000 92 01 09 Income from Rental - Advertisement Spots 500,000 92 01 10 Income from Rental - Equipment 200,000 92 01 11 Income from Rental -Ward property 100,000 7,200 192 02 oo !INCOME FRdM Filii sTumo 1 1 - 1 · - • w·· .r:0~.~l>iilP'o~·~ 92 02 01 Income from Rental- Studio 92 02 02 Income from Program Sponsorship 92 02 03 Income from Advertisement I 93 oo oo>JJ!\!coME'F~Olli!INVE$;i"illli?NT >; ••<• I • 5oo,ooo I - I - I 93 00 01 Interest from Bank Deposit 500,000 93 00 01 Interest from Revolving Fund 93 00 02 Interest Income from Govt. Bonds 93 00 03 Dividend Income from Equity Investment 93 00 04 Gain on Sale of Investment 94 00 00 SUNDRY INCOME . 14,899,49'1j' 94 01 .. 00 MINOR FEES .·.·. 13,051;976' 94 01 01 Application Fee 242,675 94 01 02 Registration & Other fee/charges 2,500,000 4,838,633 94 01 03 Environment & Sanitation Fee 5,000,000 4,924,858 94 01 04 Tender Document Fee 500,000 53,770 ~;) 01 04 Tender Document Fee c;\· 01 05 Map Form Fee 200,000 2,941,000 3,000,000 z 01 06 Certification Fee 1,020,000 22,026 25,000 0 :-o 94 01 07 Other Fee (Copy) 1,000 629 1,000 :·,.:l> '~:~ .... r/ 94 01 08 Other Form Fee 150,000 28,385 50,000 ;'~ 94 01 09 Pet Animal (Dog) Registration 500,000 z )> 1 94. ;:p2 oo 1 1cHARGEs 1 '16,o1o,ooo 1 4,7ooq:·, 5oi:f&si96o~l 94 02 01 Miscellaneous/Tourism Fee 10,000,000 50,000,000 94 02 02 Wastage Disposal Charge 5,000,000 94 02 03 Block Number Plate 10,000 4,700 5,000 94 02 04 Road Maintenance Charge 100,000 1 94 oa ou 1· 1 oTHER. sALes .. · ! •·,•· 4oo,ooo 1•: .2ss, 134 1 7s2;ooo I 94 03 01 Auction of Animals 250,000 161,464 150,000 ~·: 94 03 02 Auction of Materials 532,000 ~...ii. 94 03 03 Sale of Scraps 100,000 ' J;. ANNEX: 8 N '""" 1999/2000 2000/2001 2056/057 2057/058 Accounting Codes Budget Heading Budget Actual Budget 94 03 04 Sale of Trees 0 94 03 05 Sale of Compost ·o;;' 0 94 03 06 Gain on Sale of Assets 0 f''~.:, 94 03 07 Recovery from Bus Terminal Telephone 150,000 136,670 f . 94 04 00 . 1,800,000 1,544,61!1 0 I l FINE AND PENALTY I I I . 1,'700,000 I (/) 94 04 01 Contractor Performance Penalty 94 04 02 Late Fee Penalty ,ii~ 94 04 03 Arbitration Fee ::0 94 04 04 Other Penalty 1500000 1500244 1500000 m 94 04 05 Forfeiture of Deposit Payable 100,000 100,000 94 04 06 Miscellaneous/ Insurance claim received 200,000 44,437 100,000 {£ ;.'-I OCTROI 1. Thankot Depot 2. Tribhubhan lnt'l Airport Depot 3. Banepa-Dhulikhel 4. Bidur 5. Janakpur Cigarette Factory 6. Nepal Oil Corporation 7. Miscellaneous TOTAL OWN SOURCE REVENUE 109,095,830 80,276,026 340,440,610 95 00 00 GRANTS AND DONATIONS 351,177,985 229,234,744 431,029,390 95 01 00 GRANTS FROM HMG 206,988,544 221,047,837 250,400,000 95 01 01 HMG- Administration 400,000 4,620,000 400,000 95 02 02 Local Dev. Fee (Tax) 206,588,544 216,427,837 250,000,000 I 95 03 00 I I GRANT-fi\I~AID (FOREIGN) I 143,101,890 I 6;057,700 I 170;529,390 I 95 03 01 ADB Grant 20,000,000 20,000,000 95 03 02 EU Grant 100,000,000 130,000,000 95 03 03 Grant from other international agencies 19,100,000 3, 757,200 8, 750,000 95 03 04 Grant from TUG I 3,500,000 2,082,000 2,746,000 95 03 05 Grant from ILO 3,850,000 95 03 06 Grant from World Bank (CDS) 4,900,000 95 03 07 Grant from RUDO/USAID 501,890 218,500 283,390 I M 04 M I I GRl\1\!T-!N-A!D{!'!AT!ON.ii.L) I 1;087',55'! I 2;1~9,2071 . 10,100,00C:j 95 04 01 Grant from other organizations/municipalities 1,087,551 2,099,207 ANNEX: 8 1999/2000 2000/2001 2056/057 2057/058 Accounting Codes Budget Heading Budget Actual Budget 95 04 02 Grant from national organizations 30,000 100,000 95 04 03 User's Group/People's participation 10,000,000 I 96. 00 00 INCOME FROM RECEIPT· CONTRACTS I I ,. • l' . .. I ..I 96 00 01 Receipts from Contract 1 96 00 02 Receipts from Contract 2 96 00 03 Receipts from Contract 3 I 97 00 00 PRIOR YEAR INCOME I .'I I 2,000,000 I 5,810,363 I 47,000,000 I 97 01 00 Loan/Advance Refund 2,000,000 5,810,363 47,000,000 I 98 00 00 LIABILITIES WRITTEN BACK I I • I . I . I 98 01 00 Liabilities Written Back I 60 00 00 LOANS I I t 247,813,000 I 14,700,000 I - I 60 01 00 ADB Loan 17,813,000 60 02 00 Loan from Local Banks 230,000,000 10,000,000 60 02 00 Town Development Fund 60 03 00 Loan from Deposit Accounts 4,700,000 35 00 00 LASTYEAR!S BALANCE I 3,996,122 4,007,185 35 00 01 KMC Fund Balance 3,996,122 3,963,902 ::S: 1. NRB A/C # 23 c .z 2. NRB A/C # 81 (5 3. NRB A!C # 230 4. Himalayan Bank (Octroi) ~ r- 5. Himalayan Bank (Parking Fee) .11 6. Nepal Bangladesh Bank 2001 C •. ·:z 7. Nepal Bangladesh Bank 1991 C )> 8. Rastriya Banijya Bank 3782 z () 9. UNICEF Grant AIC Balance .m 10. Grant A!C Balance 36 01 01 Cash Balance 43,283 ··~·.··. w.··· GRAND TOTAL. n4,082,937 334,028,318 . 818,470,ooo ~···· ..;,.· ANNEX 9 ~ KMC Expenditures Accounting r - - - - - - : - - - - : - - - - - - - , Codes Budget 49/50 Actual 49/50 Budget 51/52 "1o OoifPO UOO,QPO .·.· 5oo;ooo: :t'!:iGi~i§.QO;OOCt 1 0 01 00 ILand Freehold 1 ,500,000 500,000 2,500,000 1 0 02 00 I Land Leasehold '11oa~•roil ·:tauitdins··· ···~·.·····! 18,5oo,ooo I 1 7,500,0'00 t;< < 11 01 00 I Building on Freehold Land 18,500,000 7,500,000 11 02 00 I Building on Leasehold Land (j) 11 03 00 IBuilding on custodian lands -1 "i 12 oo /00 !.Infrastructure anc:ICivil Work~ ,p,, 13 oo oo ! Olflte:.•.EI:juipme!'lt- Computers;X~;Y ··••• 14 oo oo Office Equipment- Others . ;;:1: · . t .~&;s~5 .:. z:sob,qgb·'· ,.~j 1s. oo .oo Furniture and Fittings .. ·•·······••• 296,493 . . . 1 ,550,000 . 1,520,913 ~:::~~ ,v~= ',~?~~, 'r.~~. .· '16 00 00 Vehjcles -"- •:2_ _.i ;· ' • ··. · 3,802,000. 29,ooo,ppo •·!•; · · 3,2so,596 s,aoo,ooo;;' . 3,443,904 ',i~ lZ .00 . 00 Plant and Equipment. .. • ' • 459,6oo•·..· 27,500,009 ... 12,634,227 s,ooo,oooJ:~·( · ' ·' 1900 oo capitar.work.~in-progress - I • .I ;- - l 19 11 00 Building 19 12 00 Infrastructure and Civil Works 19 12 01 Roads 19 12 02 Traffic Management 19 12 03 Street Lighting 19 12 04 Bus Parks 19 12 05 Bridges/ culverts 19 12 06 Drainage and sewerage 19 12 07 Water Supply 19 12 08 Public Toilet 19 18 ooJ.. others MIIP.4 P •. •:j. . .•. J .- · 1t~soo:ooo 1 ">1,3l15;:s39l · · 4o,soo,oqo 1 .• :.:: s;soo,ooo 1 19 18 01 MIIP 17,500,000 1,395,539 40,800,000 6,800,000 19 18 02 4 P Program 20 00 OQ .· Long Terrri Investment . •/'J ~cl· -T '~- ··~~ ' "fi d ';Yt ·~ ;. L 20 03 00 Equity Investment ••7001 00:· salaries: & Wages1 1s,oso;9931. . 13,s8s,1o8 1 · 8,229-;oos 1 , 13;soo-.ooo 1 • t,&0!\1~666d ' '9',024,1411:f·~~ i 8)'l75;02f.l 70 01 01 Elected Members 3,937,000 2,101,000 1,500,000 1,324,141 1,324,141 1,164,000 70 01 02 Permanent Staff 16,066,'993 9,748,108 6,128,009 12,000,000 6,185,525 7,700,000 7,611,021 70 01 03 Tenoirart Staff 70 01 04 Contract Staff 70 01 05 Monthly Wage Staff 70 01 06 Daily Wage Staff ANNEX 9 KMC Expenditures Actual 48/49 Actual 50/51 . __ . _. Providend Fund Contribution Z;:to 05 .00 H~~,;~~d ,Acting AUtlV<~i!'f:~'; 70 05 01 Department Head AHowances 70 05 02 Kayam Mukayam (Acting) Allowance ov~bl..Oe ·f!tif: ·•· I •v v• w IM.~~-1'~¥1 Allowance~:~-HAil:[l\ i Staff Medicdal Allownce • v vv v , Permanent Staff 70 08 02 Temporary Staff 70 08 03 Contract Staff 70 08 04 Monthly Wage Staff 70 08 05 Daily Wage Staff ,~, __ _. Diet for Security Staff 70.1 0• •· (J(J J Tiffin AlloWaqces 70 10 01 Permanent Staff 70 10 02 Temporary Staff 70 10 03 Contract Staff ,_ 70 10 04 Monthly Wage Staff 70 10 05 Daily Wage Staff Shift:~IIQWanc$5 -~~~ )TT • .&:i."···· ··~·-' ,j:;o, ...... ANNEX 9 !"' KMC Expenditures Codes Account Head Actual 48/49 Budget 49/50 Actual 49/50 Budget 50/51 Actual 50/51 Budget 51/52 Actual 51/52 :(1 70 14 01 Permanent Staff 70 14 02 Temporary Staff ·'~ 70 14 03 Contract Staff 1 0 7o'15 oo Retir~:nenfrelated Expenses , ·' ·. :, , · 1,717,0871 !' 1.o,ooo,ooo 1 5,343, 163• ~z; ;·. . ,.srooo;QoJtl. .... ~,939,529' 1 ·•:• · ·3,:tO'o,oobli , •• ;:3,368,181 1 $' 70 15 01 Gratuity 'G) 70 15 02 Pension 1,717,087 10,000,000 5,343,163 6,000,000 5,939,529 3,700,000 3,368,181 :z 70 15 03 Accumulated Leave Encashment 'f~ 70 15 04 Accumulated Medical Benefits ~ 71i01··.·· 00 Utilities :': ·' ·:·: ·1·:· 377,oso 1 4,100,0001··: 3,628,981 t ··:a;ooo,O'qf:l'i:'. :\.: .. :·2\MS,i:SZI 1,5oo,ooo I . ,· 1;131',2:!>3¥1 0 71 01 01 Electricity 377,060 4,100,000 3,628,981 3,000,000 2,318,782 1,500,000 1,131,263 71 01 02 Water ~fW', ::<,.:·, . -u. 71 02 oo Good~ 1;100,480 I 2,845,ooo I ·· 2,545,374 I 4,225,000 l ;;2 : . 4,189,898(] . .A,505;Qoo I 4,227,0571 ;:0 ;;e 71 02 01 Printings & Stationery 524,839 900,000 898,958 1,440,000 1,438,422 2,000,000 1,790,519 f;.;,_f 71 02 02 Publication of Journal 71 02 03 Newspaper, Periodicals and Boods pure 44,206 250,000 191,857 360,000 354,179 500,000 496,426 71 02 04 Small Assets 71 02 05 Office Supplies 528,943 1,680,000 1,453,683 2,400,000 2,396,626 2,000,000 1,940,051 71 02 06 Fuel-Heating, Cooking etc. 2,492 15,000 876 25,000 671 5,000 61 71 02 07 Medicine 71 03 00 Training and Services t :: . z,o10,475 1 . 3,570,2401 75t,740 1· .·:>.3;40Q,OO.Ojij> .: ;;;2~208,75p:j 2,95o,ooo 1 1,682,9191 71 03 01 HRD (Training Expenses) ·.·· 700,000 50,000 200,000 118,379 150,000 82,600 71 03 02 Study Tours 71 03 03 Research and Surveys 2,500 1,600,000 74,950 500,000 299,370 1,500,000 454,623 71 03 04 Meeting Fees 2,007,975 1,270,240 626,790 1,200,000 1,169,700 1,300,000 1 '145,696 71 03 05 Meeting Expenses 71 03 06 Audit Fees 71 03 07 Audit Expenses 71 03 08 Consultancy Fees - - - 500,000 - 71 03 09 Legal Fees 71 03 10 Other Professional Fee - - - 1,000,000 621,301 71 03 11 Memberships, Registration and Renewals 71 03 12 Rewards and Prizes 71 03 13 Staff Welfare 71 03 14 Laundry expernses 71 .o4. oo·Notifieation'B,< .P'ubnfny Jrf$·:~·· ~ tir: >'; •. ,, 439,8381 • \>· 'i:SO,OQO''I . 777,767IY'~:~i:' 2,37$,00().1 ... ·2;057,9131 · 3,2QO,OO,O. If ~" 2,784,~~~ 71 04 01 Administrative Notification 439,838 780,000 777,767 2,375,000 2,057,913 3,200,000 2,784,534 71 04 02 Publicity 71 04 03 Others 71'osn oo,; ;f{av~j' ~~d p(ir ~~~m · ; .' ..£; , i21;ss1 I . . 3;180;000 h' ·. . . 994,400 n i . : 2,ooo;ooo l . . ,: 'f<~ 46:5;4~~~.1 : :W:s§8;s2o I ; •\:%:~1~~1:'1 ANNEX 9 KMC Expenditures Codes Account Head Actual 48/49 Budget 49/50 Actual 49/50 Budget 50151 Actual 50/51 Budget 51/52 Actual 51/52 71 05 01 Travel Expenses 27,857 3,180,000 994,400 2,000,000 465,433 558,520 574,547 71 05 02 Daily Allowances 71 05 03 Other Expenses '71'06 OQ L;ocal Transpcirtatioi{ : :.· 13,5151 <2'5,000 l >''.';;:· 'l •. (" .'25,000 , .•••• . 2,9oo I 12,ooo I 11;4181 71 06 01 Local Transportation 13,515 25,000 ' - 25,000 2,900 12,000 11,418 71 06 02 Transport & Porter 71 07 00 Operation of Vehicles ••. ' 2,355,707' l 3,620,000 t ·, 3,315;9561 5;SS.O,OOO,d ' 5,5~8,769 J s,9oo,ooo I 5,484,939 ij 71 07 01 Annual Registration Fees 71 07 02 Insurance 71 07 03 Repairs and Maintence 839,090 1,420,000 1,195,022 2,600,000 2,570,180 2,300,000 1,972,765 71 07 04 Fuel 1,516,617 2,200,000 2,120,934 3,360,000 2,988,589 4,600,000 3,512,174 71 07 05 Oil & Lubricants 71 07 06 Repairs and Maintence- staff 71 07 07 Fuel -staff 71 07 08 Oil & Lubricants - staff 71 08 00 Commuriica.tions .: 7001 75,ooo 1 · •·. 2,1o5 1 .> 75,0001 20,333 1 · ·· .· 2,51o;ooo 1 1,945,9701 71 08 01 Postage & Courriers 700 75,000 2,106 75,000 20,333 10,000 9,727 71 08 02 Telephone & Fax 2,500,000 1,936,243 71 08 03 E-mail/Internet 71 08 04 Others 71 09 00 ~epairs and Maintenance 319,7081 35o,ooo 1 ··••· 317,o1o 1 575,ooo 1 .• 3oo;5os 1 .: 700,0\')0,j 618,12o 1 71 09 01 Own Buildings 71 09 02 Rented Buildings 71 09 03 Office Equipment- Computers 71 09 04 Office Equipment- others 25,663 50,000 25,876 75,000 73,667 100,000 81,080 ·<~r 71 09 05 Furniture and Fixtures 71 09 06 Others 294,045 300,000 291,134 500,000 226,842 600,000 537,040 z (5 .:'71 10 00 RentS'; R?yalti~s, Rates and Taxes 32,136 t 1,44o,ooo 1 '•856,1011/ 2,250;000 l ··. ;1;674,158L' 2;5o'O,ooo P•t · 1,844,131 1 71 10 01 Rent - Buildings 32,136 1,440,000 856,101 2,250,000 1,674,158 2,500,000 1 ,844,131 . ~... 71 10 02 Rent- Equipment 71 10 03 Rent - Others ::·r~X 71 10 04 Royalties ·z )> 71 10 05 Rates and Taxes z .. 71 10 06 License ;~~!f <71h 11 Od Fil'!ariclal E?(penses • • · ):•• . ' ; '29,372t ·, 50;ooo I ·, .• , 47,047 t .;:. / .• · 75,QOOJ ,. 62,345 L ··· 50;(1001' •: <•t18,240 1 I< 71 11 01 Bank Charges 29,372 50,000 47,047 75,000 62,345 50,000 18,240 71 11 02 Interest on Loans . :' ',(;:.; 71 11 03 Commitment Fees ..... ~';?if'' ··12 :.oo Opefation of Ptant & Equi'pm~rit ·· I:,.·:, :•·. ·~' . I; ',,, ':,' - I :·, . /:··:;<•! . k? 2£1so;ooo Vi~ .: 2. 1~6,<1:59 1 71 13 01 Business Tax Collection Expenses ·.6:t, (f) •• 1,122,511 1 ,499,102 .;.;i 71 13 02 Thankot Octroi Collection Expenses 970,115 1,200,000 1,500,000 2,160,000 2,146,459 .72 oo.: .•. oo C>t~er Expens~s 1 ..... ·:'1 ;.578,720.1 . 2,1oo,ooo 1 •·.•. 2,21s;:as1 I .: .. 8:&2s ..ooo;J:•Jt. : !1.422,756' L;t. . s,o4lKooo I?. .4,4~2:940 :j 0 72 01 01 Donations - Cultural, Heritage Trust ;;o 72 02 02 Donation Others 578,720 2,700,000 2,216,897 8,625,000 8,422,756 6,040,000 4,452,940 .m 1J 72 03 03 Seminars and Workshps Expenses 0 72 04 04 Prarticipation Fees & Expenses ::0 ..., 72 05 05 Fair. Exhibitions 72 06 06 Celebration .; . I . .. .. ,... ' ;- i 72 '07 00 lnsuta~ce ~. I . ; ...• - I - r· I . ;,;':c r· . I 72 07 01 Building 72 07 02 Infrastructure and Civil Works 72 07 03 Office Equipment - Computers 72 07 04 Office Equipment- Others 72 07 05 Fruniture and Fittings 72 07 07 Other Asset Insurance 72 08 00 Entertal!lment!Gu~i:lt Relation 474,651 1 t 2,31o,ooo 1 1,907,811 r 3,432;ooo •1 3;365,927' I '3,911,00().+ ;·· . i3,907,45t~.l 72 08 01 Civic Reception 204,005 1,800,000 1,590,375 2,400,000 2,334,618 3,911,000 3,907,451 72 08 02 Sister City Relation 72 08 03 Gifts 72 08 04 Refreshment 270,646 510,000 317,436 1,032,000 1,031,309 72 08 05 Other 72.09 00 Puja Expenses i 11,8oo I : 1oo,ooo I : 55,9001 1oo;ooo+ .• :64,soo I· . 20o,ooo I .·•.,. 154;soo I 72 09 01 Dashain/Tihar Puja expenses 11,800 100,000 55,900 100,000 64,900 200,000 154,900 72' 10 00 c;)tiler Misc;eUaneous E~penses · • n,ooo I 900,()00 l 582,090 I· · ;s7s;ooot •< 533,268 I· ·5oa,o00'; I ·. 488~8031 72 10 01 Other Miscellaneous Expenses 72,000 900,000 582,090 578,000 533,268 500,000 488,803 :;7.3;00' 00 Ot!Jer Charges .... .. , I - I - 1 .• ·.- , .. '-;; I ·•;.;. .·:. - Ak· t" •a 73 01 01 Provision for inventory Losses - 73 01 02 Provision for Doubtful Debts 73 01 03 Loss on Sale of Assets 73 01 04 Loss on Saie of Investments :.74 00 j 00 o:pr,eciatio~ ' ;; .> ~f''•'·' ·'':'::: !~ ...... j .....y;;:.;.... ;..: ....;,f. ;;;. ... ! ·::.. • · .,:.~;.I 'x • ;•.... • UJ .- J 74 01 00 Lease - hold Land ANNEX 9 KMC Expenditures Codes Account Head Actual 48/49 Budget 49/50 Actual 49/50 Budget 50/51 Actual 50/51 Budget 51/52 Actual 51/52 74 02 00 Building 74 03 00 Infrastructure and Civil Works 74 04 00 Office Equipment- Computers 74 05 00 Office Equipment - Others 74 06 00 Furniture and Fittings 74 07 00 Vehicles 74 08 00 Plant and Equipment :_ .;:'75 00 .00••. Refundpf.Reven·ue •· • ::;: '... I :": t34,224,087 J 78;412;ooo .I '69;3~9,6941 , 8o,85o,ooo I 63,7$5i~97J 12,2oo;ooo I. 56j742,325l 7501'00' Refund o(R~v.enue- For fheY~~r' 34,'131;8981 78,2S2,ooo I 69,186:726 l 8o,oop;ooo 1 63,486;4281: •• n,ooo:ooo 1 56,489;388 1 75 01 01 Land Revenue to DOC 62,800 4,000,000 3,898,350 5,000,000 2,647,687 1,000,000 930,000 75 01 02 Octroi to Other Municipalities 34,069,098 74,262,000 65,288,376 75,000,000 60,838,741 70,000,000 55,559,388 75 02 00 R~fu_hd of Revenue:~ er;ior Years ·.•·:· :, 92,1'891 :.·· ::1 5o,-ooo 1 :: >132,968 1 : 8so,ooo 1 . 309,569 1 -•·.· 1,200,000 1:: 252;9371 75 02 01 Land Revenue to DOC 75 02 02 Octroi to Other Municipalities 75 02 03 Other Income 92,189 150,000 132,968 850,000 309,569 1,200,000 252,937 76 00 00 PriorYears EJ{pl:mc!lt~re ji'' ';. --~. 1: ~ . . I .:?:·.: i- 1 ;> . • •. ,_ 1-:;::: .1:':.·-· ·: . ~"· I - I - 76 00 01 Infrastructure and Civil Works- Centre 76 00 02 Infrastructure and Civil Works - Wards 76 00 03 for services 76 00 04 for others 77 00 00 Old Advances Gt!)ared ::.-. ':1 ;•'> 1: ·: .-:.• J .·.· .- 1-•:· ·. ·- l·i\ -:· ·-:.1 :.;::v;: :. I 77 01 00 Expenditure from Old Advances 77 02 00 Old Advance cleared by Statement of Exp. 80 00 0.0 · lnfrastn.Jct~r~ 'and Civil Works 3,107/663! 15,8bo,ooo I. 3,520,0791 •:::; 15,2oo.oO'O I .. . 7,911,630 I / 3,911:)111 ,,. >3,471,360 I 80 01 00 Roads/foot path - - - 5,000,000 4,978,276 - 80 02 00 Traffic management - - - - 80 03 00 Street Lighting - - - 1,500,000 80 04 00 Bus Parks 2,751,472 6,600,000 1,511,406 4,000,000 2,339,898 2,500,000 2,360,249 80 05 00 Pavements 80 06 00 Bridges/culverts 80 07 00 Others 356,191 9,200,000 2,008,664 4,700,000 593,456 1,411,111 1,111,111 s'foo. oo Eti~.iro.~mental ~e.iliZic~. 1,oso,s57 H' .· 41}~61,692 P' 24,196,753 1 • -45,789.000 I 37,537;6191 • 45;o4o,713 H;;;i:;,:}7,7to;~ss•! 81 01 00 Drainage and Sewerage 81 02 00 River Control and Flood Protecton - 4,500,000 2,187,149 4,000,000 2,945,851 3,500,000 2,804,375 81 03 00 Water Supply - 5,000,000 722,652 3,000,000 1,523,453 - 81 04 00 Parks 102,622 5,500,000 438,732 2,500,000 1 '149,421 81 05 00 Public Toilet 449,382 3,000,000 87,362 81 06 00 Landfill/transfer station management. 81 07 00 Service subsidy expenses ~;.·· ANNEX 9 9'' KMC Expenditures Codes Account Head Actual 48/49 Budget 49/50 Actual 49/50 Budget 50/51 Actual 50/51 Budget 51152 Actual 51/52 0 81 08 00 Area/Street Cleaning Expenses - 22,386,692 19,995,651 26,280,000 23,203,694 30,000,000 24,986,458 ~ 765,207 10,000,000 8,715,200 11,540,713 9,929,956 ·~ 81 09 00 Wastage Collection Expenses 498,653 775,000 81 10 00 Community Mobilisation 0 82.00 oo .Area Develi>pment ~ ,. 1 · ..:·•·s . l ,·•::, I.:''':·· .... '•k~:j::'.' •' ~Pl ....;1"''" · . ':.; I. ·~· ,q 82 01 01 Parking Areas j~j . z· '' .. /~- 83 00 00 ~ocial $ervices 274,"1561 8,950,0001 2,669,6.16 1•: 2; .. 1;850,000J:i( ... 1,074.,'f33 y:, •.·•..!;%{soo;oQil 1 2,033,0'4~:·1 .0 83 01 00 Restoration of Temples - - - w :d 83 02 00 Restoration of Others 0 83 03 00 Crematorium 5,000,000 - 500,000 - - 83 04 00 Schools ~ m. 83 05 00 Health Centers ~ 83 06 00 Clinics 249,156 1,550,000 886,700 0 83 07 00 Hospitals ~ 83 08 00 Sports 25,000 1,650,000 1,628,445 650,000 640,958 2,500,000 2,033,042 83 09 00 Scholoarship - 750,000 154,471 700,000 433,175 83 10 00 Natural Calamity Relief 84 00 00 Trade and lndusttry - 1 - I - I 2,5oo,ooo L - I - I - I 84 01 00 Markets 2,500,000 - 84 02 00 Industrial Development 84 03 00 Shops 84 04 00 Others 85 00 00 Public Health ' 38,6751 11o,ooo I 42,786 I .... 1o.o,ooo I :59,1041 ·····•·· •· " ,I •· .·~.. I 85 01 01 Burial Services 85 01 02 Cows control Expenses 23,675 110,000 23,475 50,000 85 01 03 Dogs Control Expenses 15,000 60,000 19,311 50,000 59,104 86 00 00 Departments - J 11,5oo,ooo I 8,584,1671 14,8oo,ooo I · 13,708,896 I 11 ,ooo,ooo T 9,034,1981 '86 01 00 Other services of Social Welfare Dept - I - I - I ' - I - I - I -: I Community Development 86 01 01 Capacity Building Training New Projects 86 01 02 NGO Resource Data Preparation 86 01 03 Ward Level Project for Women 86 01 04 International Labor Organization (ILO) 86 01 05 Situational Analysis of Squatters Area 86 01 06 Data Collection of Elderly Citizens & Illiterate Women 86 01 07 Implementation of adult literacy Classes 86 01 08 Skill Development Training 86 01 09 Saving & Credit ~ra!nlng Disaster Management ANNEX 9 KMC Expenditures Codes Account Head Actual 48/49 Budget 49/50 Actual 49/50 Budget 50/51 Actual 50/51 Budget 51/52 Actual 51/52 86 01 10Community based disaster mgmt. Training 86 01 11Vulnerability Assesment Survey 86 01 12Public Awareness Campaign 86 01 13GIS Maping 86 01 14Publicity 86 01 15Publication of Education materials 86 01 16Observation of Earthquake Safety Day New Projects 86 01 17 Awareness on Disaster Prevention in Disaster Prone areas 86 01 18 Application of building code in coordination witk KMC & UDD 86 01 19 Establish Disaster Relief Fund 86 01 20 Formation of Disaster Rescue Team in Ward Level 86 01 21 School Level Awareness Program on Disaster Preparedness 86 01 22 Formation of First Aid Volunteers Group for Emergency 86 01 23 Establish of Student Disaster Preparedness Club Sports & Education 86 01 24 Inter-School Sports Competition 86 01 25 Inter-Ward Sports Competition 86 01 26 Formation of Ward Level Sports Deve. Committee 86 01 27 Workshop/Seminar on Sports Deve. within KMC 86 01 28 Campaign to enforce the Children of 6-10 yrs. to enroll in the School 86 01 29 Establish KMC scholarship to the underprivileged group children 86 01 30 Establish Children library in different Wards 86 01 31 Organize School level Quiz Contest 86 02 ·- 00 Other Services of Public Health Dept. Yl 3,500,000j 2,ooo,ooo 1 4,soo,ooo ..L --3,839,414 I<' '5;000,000 -I .3;775,414 J t: -·~-·· .. 86 02 01 National Vitamin "A" Programme ;~) 86 02 02 National Immunization day Prg. \0-' 86 02 03 Epidemic Control Programme ::0:• ::t> 86 02 04 Establishment of New UHC - 2,000,000 500,000 3,300,000 3,120,764 5,000,000 3,775,414 r 86 02 05 Food Adultration Control Prg. :!! 86 02 06 Medical Camp 1,500,000 1,500,000 1,500,000 718,650 z --)> 86 02 07 Awareness on Health Prevention 86 02 08 Nutrition Programme ;~;,, 86 02 09 Rebies & Stray Dog Control Prg. 86 02 10 Community Health Prg. At Ward 86 02 11 Urban Health Clinic Ward # ._.. ,. 86 03 00: Other services of Culture, Heritage an, I ·.. , I . I - I • r I'·. .. I . I ~ 86 03 01 Collection Booths N ;~,' cJl6 03 02 J: l - - l - I I ';, • :T . I m· r - -u 86 04 01 KMC Home Page o··' 86 04 02 Repair Maintenance of the Equipments ::0 -1 86 04 03 Live Programs 86 04 04 Photo Exhibition 2 nos, 86 04 05 Meet the Press Programme 3 nos, 86 04 06 Publication of Mahanagar Bulletin 86 04 07 Dev, & Preparation of City Profile of Kath, 86 0.5 00 Public Works Department . I 8,ooo,ooo 1 6,584,167 1 10,000,000 ,,;, 9,869,482 1 6,ooo,ooo 1 5,258,784'1 86 05 01 A. Ongoing Projects - 8,000,000 6,584,167 10,000,000 9,869,482 6,000,000 5,258,784 86 05 02 B. Committed Projects 86 05 03 C. Project Submitted for Approval (but no information received about it's decision yet) 86 05 04 New Projects 86 06 00 The Urb,an Governance Initiatives '·.;. -:I . .. I - I •"'"' I' :•< I '" ·." .- I 86 06 01 Monitoringof current quality of air, water, soil, etc 86 06 02 Development of KMC Website 86 06 03 Establishment of EGO clubs 86 06 04 Activities related to Community Mobilization 86 06 05 Institutional Strengthening with training and follow up 86 06 06 Dissemination 86 06 07 Contingency '86 07 00 Kath Vallery Map!ng Prograinm~ .,·''·····:/• I ... +··,.:. /. - I ·;::.;•': . . .. . I ~· ···I /. :dif,y,- I - 'XI 86 07 01 Services/Local Technical Assistance 86 07 02 Services/Evaluation 86 07 03 Services/Studies 86 07 04 Services Training 86 07 05 Supplies/Equipment ANNEX 9 KMC Expenditures Codes Account Head I Actual 48/49 Budget 49/50 Actual 49/50 Budget 50/51 Actual 50/51 Budget 51/52 Actual 51/52 86 07 06 Supplies/Inputs 86 07 07 Supplies!Transportation 86 07 08 Works/Projects 86 07 09 lnformation/Advertizements 86 07 10 Information/Public Relations 86 07 11 Information/Publications 86 07 12 Information/Reports 86 07 13 Operation/Salaries 86 07 14 Operation/Extra Support 86 07 15 Operation/Repair & Maintenance 86 07 16 Operation/Office Expenses 86 07 17 Utilities 86 07 18 Insurances 86 07 19 Contingency Fund 86 08 00 Urban Dev Department :-',,, ' . I I. - l - I - I - I - I - I 86 08 01 Urban Planning s:: 86 08 02 Traffic and Transportation Management c , .. ~. 86 08 03 Housing Development (') 86 09 00 City Devlopement Strategy I . I I ,, -- ,:I '-.'•, - - I - I - I - I 86 09 01 City Devlopement Strategy r- 86 10 00 ADBTA ' '' •f· - I - I - I - I I . I - I - I ·~ · !J. 86 10 01 ADBTA z )> 86 11 00 Town Development Fund Projects .I - I - I " I 25,6oo,ooo I, 662,6271 -... r :: , ·: ':c:'', r I :Z 86 11 01 Town Development Fund Projects 25,600,000 662,627 () ,,·m 86 12 00 Town Devlopement I 18,516,1371 ss,n5,ooo I 93,687,405 I 120,825,000 I 118,367,317 I· 194,593,000' I.;: 74,497,2141 86 12 01 Town Development (Town Level Project~ - 22,500,000 17,412,405 12,000,000 9,542,317 120,393,000 6,854,639 86 12 02 Town Development (Ward Level Project~ 18,516,137 76,275,000 76,275,000 108,825,000 108,825,000 74,200,000 67,642,575 cJ3_6__1_?' 03 Special Programs (Ward Level Projects) .to'- ,-~ ;:w Grand Total 86,972,027 365,343,240 252,240,054 441,185,000 308,507,515 445,017,685 253,288,966 ,J;l. EX 9 ~ KMC Experu:Jiiture§ Accounting 0 Codes Account Head Budget 52/53 Actual 52/53 Budget 53154 Actual 53/54 Budget 54/55 Actual 54/55 Budget 55/56 10 00 00 land 500,000! - I 1,000,000 l 295,000.1 1,ooo,ooo 1 sos;oM.I 4,ooo,ooo I ~ 10 01 00 Land Freehold 500,000 - 1,000,000 295,000 1,000,000 305,000 4,000,000 10 02 00 Land Leasehold . 0 ·;; 11 00 00 Building zz,5oo,ooo 1 2,688,9751 32,500,000 l 21,1881 s,ooo,ooo I 792,677 I 1o,ooo,ooo I G) 11 01 00 Building on Freehold Land 22,500,000 2,688,975 32,500,000 21 '188 5,000,000 792,677 10,000,000 z 0 11 02 00 Building on Leasehold Land (j) 11 03 00 Building on custodian lands -1 12 00 00 Infrastructure and Civil Works 0 13 00 00 Office Equipment- Computers· :::0 14 00 00 Office Equipment- Others 7,000,000 3,606,302 10,000,000 399,025 10,000,000 4,100,386 1,458,000 m IJ 15 00 00 furniture and Fittings 1,100,000 1,029,069 1,000,000 588,665 2,820,000 2,749,376 1,825,000 0 16 00 00 Vehicles 10,500,000 1,838,059 14,400,000 1,484,456 9,000,000 1,397,979 iO,OOO,OOO :;:o 17 00 00 Plant and Equipment -1 19 00 00 Capital Work-in-progress . I - I - 1 - I - I . I - I 19 11 00 Building 19 12 00 Infrastructure and Civil Works 19 12 01 Roads 19 12 02 Traffic Management 19 12 03 Street Lighting 19 12 04 Bus Parks 19 12 05 Bridges/ culverts 19 12 06 Drainage and sewerage 19 12 07 Water Supply 19 12 08 Public Toilet 19 18 00 Others MIIP, 4 P 4o,aoo,ooo I 12, 1oo,ooo I 1o9,996,ooo I 30,964,487 I 1ao,ooo,ooo 1 57,075,580 1 204,3os,ooo 1 19 18 01 MIIP 40,800,000 12,100,000 109,996,000 30,964,487 180,000,000 57,075,580 204,305,000 19 18 02 4 P Program 20 00 00 long Term Investment - I - I 1.aoo,ooo 1 3,Joo,ooo I 2o,ooo,ooo I - I . I 20 03 00 Equity Investment 1,300,000 3,300,000 20,000,000 10 01 00 Salaries & Wages 10,553,575 1 s,595,o6a I 59,540,799 1 so,ss1,aso 1 as, 116,512 I 64,904,268 1 74,aos,ooo I 70 01 01 Elected Members 1 '164,000 1 '164,000 1 '164,000 1 '1 05,500 1,214,000 1,203,500 1,224,000 70 01 02 Permanent Staff 9,389,575 8,43'1 ,068 58,376,799 49,461,850 84,902,512 63,700,768 73,584,000 70 01 03 Tenoirart Staff 70 01 04 Contract Staff 70 01 Ob Monthly VVage Staff 70 01 06 Daily Wage Staff I § AV!.i1\.11\.1 'IG I~ m:v L./''10\. o J' KMC Expenditures Codes Account Head Budget 52/53 Actual 52/53 Budget 53/54 Actual 53/54 Budget 54/55 Actual 54/55 Budget 55/56 70 01 07 Others 70 0~ 00 . Allowances and Benefits-Elected Men 3,092,300 'I'· > 2;039,298 I 2,4s7,2oo I 1;839,371 I 5,173,5oo I 2,532,950 I s,ooo,ooo I 70 02 01 Transportation Allowance 2,092,300 1,977,000 1,957,200 1,808,900 4,673,500 2,262,600 4,000,000 70 02 02 Telephone Allowance 70 02 03 Medical Expenses 1,000,000 62,298 500,000 30,471 500,000 270,350 1,000,000 70 02 04 Dress Expenses/Allowances 70 03 00 Uniform Sxpenses & Allowances 1,soo,ooo 1 1,108,5551 5,ooo,ooo 1 s,sso,11s I 7,5oo,ooo 1 5,685,1761 8,499,7331 70 03 01 Uniform Expenses & Allowances 1,500,000 1,108,555 5,000,000 3,680,119 7,500,000 5,685,176 8,499,733 70 04 00 Employer's Contribution to Provident - I - 1 >. 1 - I - I - I - I 70 04 01 Providend Fund Contribution ' 70 05 00 Head and Acting Allowance ·. ·. - I - I - I - I - I . .I - I 70 05 01 Department Head Allowances 70 05 02 Kayam Mukayam (Acting) Allowance 70 06 00 Overtime - I - I - I - I - I - I - I 70 06 01 Staff Over Time . 70 07 00 Medical Allowances 5o,ooo 1 33,335 1 5o,ooo 1 38,127 1 1oo,ooo 1 79,6941 1,3oa,ooo 1 70 07 01 Staff Medicdal Allownce 50,000 33,335 50,000 38,127 100,000 79,694 1,308,000 70 08 00 Dearness Allowances - I - I - I - I . I - I - I 70 08 01 Permanent Staff 70 08 02 Temporary Staff 70 08 03 Contract Staff 70 08 04 Monthly Wage Staff 70 08 05 Daily Wage Staff 70 09 00 metAno\Nances 2,1oo,ooo 1 1,961,501 1 2,soo,ooo 1 1,996,409 1 4,so4,ooo 1 2,551,859 1 2,153,248 1 ~ 70 09 01 Diet for Security Staff 2,700,000 1 ,961 ,501 2,500,000 1,996,409 4,804,000 2,551,859 2,153,248 c: 70 10 00 Tiffin Allowances. - I .· - I z - I - I - I - I - I 0 70 10 01 Permanent Staff 70 10 02 Temporary Staff :g 70 10 03 Contract Staff r -n 70 10 04 Monthly Wage Staff 70 10 05 Daily Wage Staff z )> 70 11 00 Night Shift Allowances - 1··. ,, c. - 'j·· l ....•,, . I - I - I - I z - 0 70 11 01 Night Overtime m .70 12 00 Other Allow~~ces . ·..,. ,.. 2,3oo,ooo 1 2,217,9731 2,s3o,ooo 1 2,726,0861 .· 7,462,soo 1 6,681,0051 s,a4s,ooo 1 70 12 01 Other Allowances 2,300,000 2,217,973 2,830,000 2,726,086 7,462,500 6,681,005 8,346,000 70 13 00 Staff Insurance 500,000.1 - l 1,ooo,ooo 1 242,3441 2,ooo,ooo 1 514,580 1 1,ooo,ooo 1 70 13 01 Group Insurance 500,000 - 1,000,000 242,344 2,000,000 514,580 1,000,000 N ""' .til 70 14 00 leinie Encashment - I - l - I - I - I - I - I '.f;:o N ANNEX 9 (j"\ KMC Expenditures Codes Account Head Budget 52/53 Actual 52/53 Budget 53/54 Actual 53/54 Budget 54/55 Actual 54/55 Budget 55/56 0 70 14 01 Permanent Staff 70 14 02 Temporary Staff ~ 70 14 03 Contract Staff 0 70 15 00 Retirement related Expenses 3,5oo,ooo 1 2,510,992 1 5,7oo,ooo 1 5,483,768 1 1,1oo,ooo 1 3,924,676 1 8,5oo,ooo. I )> 70 15 01 Gratuity 4,000,000 G) 70 15 02 Pension 3,500,000 2,510,992 5,700,000 5,483,768 7,100,000 3,924,676 4,500,000 z 70 15 03 Accumulated Leave Encashment 0 (j) 70 15 04 Accumulated Medical Benefits -1 71 01 00 Utilities 1,soo,ooo 1 980,0561 5oo,ooo 1 351,902 1 1,ooo,ooo 1 921,883 1 1,8oo,ooo 1 0 71 01 01 Electricity 1,600,000 980,056 500,000 351,902 1,000,000 921,883 1,800,000 :::.0 71 01 02 Water m ""0 71 02 00 Goods 5,2o5,ooo 1 3,968,796_1 4,85o,ooo 1 4,671,1831 8,45o,ooo 1 7,448,032 1 7,696,ooo 1 0 71 02 01 Printings & Stationery 2,850,000 1 ,838,404 1,900,000 1,776,720 2,850,000 2,617,374 3,740,000 :::.0 -1 71 02 02 Publication of Journal 71 02 03 Newspaper, Periodicals and Boods pure 550,000 521,275 400,000 399,631 600,000 595,073 835,000 71 02 04 Small Assets 71 02 05 Office Supplies 1,800,000 1,609,117 2,500,000 2,448,688 4,500,000 4,172,708 3,000,000 71 02 06 Fuel-Heating, Cooking etc. 5,000 - 50,000 46,144 500,000 62,877 121,000 71 02 07 Medicine 71 03 00 Training and Services 3,3so,2oo 1 1,551,338 1 8,143,soo 1 1,205,912 1 12, 1so,ooo 1 2,764,6931 7,978,999 I 71 03 01 HRD (Training Expenses) 200,000 124,500 200,000 534,633 5,000,000 762,798 3,330,000 71 03 02 Study Tours 71 03 03 Research and SuNeys 1,800,000 846,566 4,500,000 5,000,000 375,261 2,924,999 71 03 04 Meeting Fees 1,000,200 221,825 2,943,800 215,325 660,000 348,000 524,000 71 03 05 Meeting Expenses 360,000 358,447 500,000 455,954 1,500,000 1,278,634 1,200,000 71 03 06 Audit Fees 71 03 07 Audit Expenses 71 03 08 Consultancy Fees 71 03 09 Legal Fees 71 03 10 Other Professional Fee 71 03 11 Memberships, Registration and Renewal: 71 03 12 Rewards and Prizes 71 03 13 Staff Welfare 71 03 14 Laundry expernses 71 04 00 Notification & Publicity 2,2oo,ooo 1 2,037,0501 2,2oo,ooo 1 2,148,412 1 4,ooo,ooo 1 3,450,6921 2,ooo.ooo 1 71 04 01 Administrative Notification 2,200,000 2,037,050 2,200,000 2,148,412 4,000,000 3,450,692 2,000,000 71 04 02 Publicity. -~<---~~···=·"~ ··--·------··~ 71 04 03 Others 71 05 00 Travel and per diem . 9,5oo,ooo I 7,497,7231 -~0,0001 4,382,779 1 4,63o,ooo I 3,971,353 1 6,270,0QQ__I A Ch.. Bl:h.. 1fr""'-.f n f\I"'I"'I:A "::1 KMC Expenditures Codes Account Head Budget 52/53 Actual 52/53 Budget 53/54 Actual 53/54 Budget 54/55 Actual 54155 Budget 55/56 71 05 01 Travel Expenses 9,500,000 7,497,723 5,000,000 4,382,779 4,630,000 3,971,353 6,270,000 71 05 02 Daily Allowances 71 05 03 Other Expenses 71 06 00 local Transportation 15,ooo 1 8,57o I 15,ooo 1 1,750 1 · · 5o,ooo 1 12.115 I 300,000 J 71 06 01 Local Transportation 15,000 8,570 15,000 1,750 50,000 12,115 300,000 71 06 02 Transport & Porter :71 07 00 Operation of Vehicles 1o,ooo,ooo 1 8,566,8921 14,ooo,ooo 1 11,696,839 I 16,68o,ooo 1 6,344,8321 29,151,105J 71 07 01 Annual Registration Fees 71 07 02 Insurance 71 07 03 Repairs and Maintence 3,000,000 2,046,710 4,000,000 3,407,178 5,000,000 4,016,575 15,000,000 71 07 04 Fuel 7,000,000 6,520,182 10,000,000 8,289,661 11 ,680,000 2,328,257 14,151,105 71 07 05 Oil & Lubricants 71 07 06 Repairs and Maintence- staff 71 07 07 Fuel - staff 71 07 08 Oil & Lubricants - staff 71 08 00 Communications 2,546,4oo 1 1,263,616 1 1,91s,ooo 1 1,951 ,ooo 1 4,o5o,ooo 1 2,096,567 1 2,128,ooo 1 71 08 01 Postage & Courriers 14,000 12,899 15,000 13,032 50,000 39,961 271,000 71 08 02 Telephone & Fax 2,532,400 1,250,717 1,900,000 1,937,968 4,000,000 2,056,606 1,857,000 71 08 03 E-mail/Internet 71 08 04 Others 71 09 00 Repairs and Maintenance 35o,ooo 1 311,646 1 4oo,ooo 1 341,1171 1,ooo,ooo 1 587,798 1 8,93o,ooo 1 71 09 01 Own Buildings 71 09 02 Rented Buildings 71 09 03 Office Equipment- Computers 71 09 04 Office Equipment- others 150,000 145,059 200,000 217,908 500,000 154,902 250,000 :5: 71 09 05 Furniture and Fixtures c 71 09 06 Others 200,000 166,587 200,000 123,209 500,000 432,896 8,680,000 z () 71 10 00 Rents, Royalties, Rates and Taxes 5,936,ooo 1 4,014,415 1 6,933,ooo 1 7,so5,616 1 9,287,488 1 5,816,945 1 s,518,4oo 1 71 10 01 Rent- Buildings 5,936,000 4,014,415 6,933,000 7,505,616 9,287,488 5,816,945 5,518,400 ~ r 71 10 02 Rent- Equipment ., 71 10 03 Rent - Others z 71 10 04 Royalties }> 71 10 05 Rates and Taxes z 0 71 10 06 License m 71 11 00 Financial Expenses 25o,ooo 1 35,653 1 3oo,ooo 1 96,827 1 1,2oo.ooo 1 1,154,1131 18,2o7,ooo 1 71 11 01 Bank Charges 50,000 35,653 100,000 96,827 200,000 154,113 225,000 71 11 02 Interest on Loans 200,000 - 200,000 1,000,000 1,000,000 17,982,000 .j:o 71 11 03 Commitment Fees N '-1 71 12 Q()__ Operation of Plant & Equipment - I - I - I - I - I - I . I N ANNEX 9 00 "" KMC Expenditures Codes Account Head Budget 52/53 Actual 52/53 Budget 53/54 Actual 53/54 Budget 54/55 Actual 54/55 Budget 55/56 0 71 12 01 Annual Registration Fees 71 12 02 Insurance ~ 71 12 03 Repairs and Maintence 0 71 12 04 Fuel s; 71 12 05 Oil & Lubricants G) 71 13 00 Revenue MobiHsation Additional. ExpE 2,soo,ooo I 1,737,0541 1,soo,ooo 1 1,728,672 1 · 4,soo,ooo 1 4,378,9491 s,soo,ooo I z 0 71 13 01 Business Tax Collection Expenses 2,000 000 (f) 71 13 02 Thankot Octroi Collection Expenses 2,500,000 1,737,054 1,600,000 1,728,672 4,500,000 4,378,949 3,600,000 =! 0 72 00 00 Other Experi~es · ·1 ,9oo,ooo i 1,877,8121 2,5oo,ooo I 2,987,728.1 11,5oo,ooo I 5,690,4171 7,5oo,ooo 1 72 01 01 Donations -Cultural, Heritage Trust 980,209 4,000,000 2,598,877 2,500,000 ;o 72 02 02 Donation Others 1,900,000 1,877,812 2,500,000 2,007,519 7,500,000 3,091,540 5,000,000 m "U 72 03 03 Seminars and Workshps Expenses 0 72 04 04 Prarticipation Fees & Expenses :::0 -1 72 05 05 Fair. Exhibitions 72 06 06 Celebration 72 07 00 Insurance - I - I - I - I - I - I - I 72 07 01 Building 72 07 02 Infrastructure and Civil Works 72 07 03 Office Equipment - Computers 72 07 04 Office Equipment - Others 72 07 05 Fruniture and Fittings 72 07 07 Other Asset Insurance 72 08 00 Entertainment/Guest Relation 5,775,ooo I 5,700,791 I 3,8oo,ooo I 4,265,1821 4,ooo,ooo I 3,714,858 I 3,772,ooo I 72 08 01 Civic Reception 5,775,000 5,700,791 3,800,000 4,265,182 4,000,000 3,714,858 3,772,000 72 08 02 Sister City Relation 72 08 03 Gifts 72 08 04 Refreshment 72 08 05 Other 72.09 00 Puja Expenses . 1oo,ooo 1 82,soo 1 1oo,ooo 1 s5,soo 1 2oo,ooo 1 .141,4oo 1 2oo,ooo 1 72 09 01 Dashain!Tihar Puja expenses 100,000 82,600 100,000 95,600 200,000 141,400 200,000 72 10 00 Other Miscellaneous Expenses 5o,ooo 1 . I 5o,ooo 1 5,4oo 1 1,ooo,ooo I so,ooo 1 24s,ooo 1 72 10 01 Other Miscellaneous Expenses 50,000 - 50,000 5,400 1,000,000 50,000 245,000 73 00 00 Other Charges - I - I - I - I - I - I - I 73 01 01 Provision for inventory Losses 73 01 02 Provision for Doubtful Debts 73 01 03 Loss on Sale of Assets 73 01 04 Loss on Sale of Investments 74 00 00 Depreciation - l - j . I - I - I - I - I 74 01 00 Lease - hold Land (fl'l 7 hpeuu:!litiUires Codes Account Head Budget 52/53 Act!lal 52/53 Bmiget 53/54 Act!lal 53/54 Budget 54/55 Actual 54155 Budget 55/56 74 02 00 Building 74 03 00 Infrastructure and Civil Works 74 04 00 Office Equipment - Computers 74 05 00 Office Equipment - Others 74 06 00 Furniture and Fittings 74 07 00 Vehicles 74 08 00 Plant and Equipment 75 00; 00 Refund of Revenue 1.1,2oo,ooo 1 s9,779,539 1 72,258,998 l 75,339,197 I '· 101 ,500,0()() l 112,428,3091 .102,01)0,000l 75 01 i 00 Refund of Revenue· For theY ear . 7o,7oo,ooo I s9,aas,saa I .· 11 ,soo,ooo I 74,990,2691· 101,ooo,ooo I .112,372,1911 ·• 101,soo,ooo I 75 01 01 Land Revenue to DOC 700,000 674,535 1,500,000 137,181 1,000,000 700,000 1,500,000 75 01 02 Octroi to Other Municipalities 70,000,000 68,661,003 70,000,000 74,853,088 100,000,000 111 ,672,191 100,000,000 75 02 00 Refund of Ye . 81 00 00 Environmental Services .. . 4s,ooo,ooo 1 • 43,36s,sso 1 12,600,000 l s,sss,o43 1 :zos,ooo,ooo I 29,264,6571 65,500,000l z 81 01 00 Drainage and Sewerage 16,000,000 0 m 81 02 00 River Control and Flood Protecton 4,000,000 2,685,616 3,500,000 31,676 81 03 00 Water Supply 81 04 00 Parks 3,162,302 50,000,000 2,435,787 'I ,000,000 81 05 00 Public Toilet ,j:, 81 06 00 Landfill/transfer station management. 30,000,000 N l,l:) ' 81 07 00 Service subsidy expenses ,.f;:o. w ANNEX 9 0 KMC Expenditures Codes Account Head Budget 52/53 Actual 52/53 Budget 53/54 Actual 53/54 Budget 54/55 Actual 54/55 Budget 55156 () 81 08 00 Area/Street Cleaning Expenses :::j' 81 09 00 Wastage Collection Expenses 42,000,000 40,679,974 9,100,000 3,362,065 140,000,000 26,828,870 33,000,000 -< 81 10 00 Community Mobilisation 1,500,000 0 82 00 00 Area Development .. , ): - I - I - I - I - I - I - I G) 82 01 01 Parking Areas z , , 83 00 00 Social Services 2,600,000_I 2,490,670 I 5,ooo,ooo I 105,800 l - I - I< - I 0 (f) 83 01 00 Restoration of Temples -+ 83 02 00 Restoration of Others () 83 03 00 Crematorium :::0 83 04 00 Schools m 83 05 00 Health Centers -o 83 06 00 Clinics 0 83 07 00 Hospitals ~ 83 08 00 Sports 2,600,000 2,490,670 5,000,000 105,800 - - 83 09 00 Scholoarship 83 10 00 Natural Calamity Relief 84 00 00 Trade and lndusttry - I - I - 1 - I - I - T - q 84 01 00 Markets 84 02 00 Industrial Development 84 03 00 Shops 84 04 00 Others 85 00 00 Public Health ·- I - j - I - I - I - T - l 85 01 01 Burial Services 85 01 02 Cows control Expenses 85 01 03 Dogs Control Expenses 86 00 00 Departments 9,7oo,ooo 1 6,050,8861 13,3os,ooo 1 2,089,308 1 26s,soo,ooo 1 21,004,2421 57,182,985. I 86 01 00Other services of Social Welfare Dept - l - ) - I - l 111,5oo.,ooo 1 12,823,0.35 L 13,288,ooo I Community Development 86 01 01 Capacity Building Training New Projects 111 ,500,000 12,823,035 13,288,000 86 01 02 NGO Resource Data Preparation 86 01 03 Ward Level Project for Women 86 01 04 International Labor Organization (ILO) 86 01 05 Situational Analysis of Squatters Area 86 01 06 Data Collection of Elderly Citizens & lllitet 86 01 07 Implementation of adult literacy Classes 86 01 08 Skill Development Training 86 01 09 Saving & Credit Training Disaster Management ANNEX 9 KMC Expenditures Codes Account Head Budget 52153 Actual 52153 Budget 53/54 Actual 53/54 Budget 54/55 Actual 54/55 Budget 55/56 86 01 Community based disaster mgmt. Traini 10 86 01 11 Vulnerability Assesment Survey 86 01 Public Awareness Campaign 12 86 01 GIS Maping 13 86 01 Publicity 14 86 01 Publication of Education materials 15 86 01 Observation of Earthquake Safety Day 16 New Projects 86 01 17 Awareness on Disaster Prevention in Dis 86 01 18 Application of building code in coordinatic 86 01 19 Establish Disaster Relief Fund 86 01 20 Formation of Disaster Rescue Team in VI 86 01 21 School Level Awareness Program on Dis 86 01 22 Formation of First Aid Volunteers Group 1 86 01 23 Establish of Student Disaster PreparednE Sports & Education 86 01 24 Inter-School Sports Competition 86 01 25 Inter-Ward Sports Competition 86 01 26 Formation of Ward Level Sports Deve. C 86 01 27 Workshop/Seminar on Sports Deve. withi 86 01 28 Campaign to enforce the Children of 6-1 C 86 01 29 Establish KMC scholarship to the underp 86 01 30 Establish Children library in different War 86 01 31 Organize School level Quiz Contest 86 02. 00 Other Services of Public Health Dept. 4,7oo,ooo 1 3,172,499 1 8,3os,ooo 1 2,089,3081 .:.: . I . I $: - I c 86 02 01 National Vitamin "A" Programme z 86 02 02 National Immunization day Prg. 5 86 02 03 Epidemic Control Programme 86 02 04 Establishment of New UHC 3,200,000 1,672,499 8,306,000 2,089,308 .:g r- 86 02 05 Food Adultration Control Prg. ::!! 86 02 06 Medical Camp ,z 86 02 07 Awareness on Health Prevention <.-)> :.Z. 86 02 08 Nutrition Programme () 86 02 09 Rebies & Stray Dog Control Prg. m. .. 86 02 10 Community Health Prg. At Ward 86 02 11 Urban Health Clinic Ward # 1,500,000 1,500,000 86 03. 00 Other services of Culture, Heritage an ' . I ) . . I. . ,... . I . J · 40,ooo,ooo 1 5,.202,3931 13,854,ooo ·1 86 03 01 Collection Booths 40,000,000 5,202,393 13,854,000 w '0~c:,,, """ ~~03 02 Tourist Rest Room ~ ANNEX 9 N KMC Expenditures Codes Account Head Budget 52/53 Actual 52/53 Budget 53/54 Actual 53/54 Budget 54/55 Actual 54/55 Budget 55/56 '() 86 03 03 Heritage Clubs Trust Fund 86 03 04 Heritage Site cleanup Program ,·~-. 86 03 05 Cleaning Equipment 4 site 0 86 03 06 Eassy & Art Competition 5> 86 03 07 Motor fare & lunch expenses G) 86 03 08 Interaction Program z 86 03 09 Documentation Culture Heritage ····~··· 86 03 10 Promotion of Culture & Festival -4 86 03 11 Preparation of FM Program 0 86 03 12 FM Program Audio Materials :::0 ', 86 04 00 Information and Communication' Dept - I - l - I - I t15,ooo,ooo I ,2,978,814 T 24,640,9851 .m 115,000,000 .-u 86 04 01 KMC Home Page 2,978,814 24,640,985 0 86 04 02 Repair Maintenance of the Equipments 86 04 03 Live Programs ~ 86 04 04 Photo Exhibition 2 nos. 86 04 05 Meet the Press Programme 3 nos. 86 04 06 Publication of Mahanagar Bulletin 86 04 07 Dev. & Preparation of City Profile of Kath 86 05 00 Public Works Department s,ooo,ooo 1 2,878,3871 5,ooo,ooo 1 " I - I ..· - I - I 86 05 01 A. Ongoing Projects 5,000,000 2,878,387 5,000,000 86 05 02 B. Committed Projects 86 05 03 C. Project Submitted for Approval (but no information received about it's decision yet) 86 05 04 New Projects '~ ' c j 86 06 .00 The Urban Governance Initiatives I - l - I - l - I - I • 86 06 01 Monitoringof current quality of air, water, 86 06 02 Development of KMC Website 86 06 03 Establishment of ECO clubs 86 06 04 Activities related to Community Mobilizati 86 06 05 Institutional Strengthening with training a1 86 06 06 Dissemination 86 06 07 Contingency 86 07 00 Kath Vallery Maping Programme - q •. . I ,··,· - I ' - l - I - I -"9 86 07 01 Services/Local Technical Assistance 86 07 02 Services/Evaluation 86 07 03 Services/Studies 86 07 04 Services Training 86 07 05 Supplies/Equipment ANNEX 9 KMC Expenditures Codes Account Head I Budget 52/53 Actual 52/53 Budget 53/54 Actual 53/54 Budget 54!55 Actual 54/55 Budget 55/56 86 07 06 Supplies/Inputs I 86 07 07 Supplies/Transportation 86 07 08 Works/Projects 86 07 09 lnformation/Advertizements 86 07 10 Information/Public Relations 86 07 11 Information/Publications 86 07 12 Information/Reports 86 07 13 Operation/Salaries 86 07 14 Operation/Extra Support 86 07 15 Operation/Repair & Maintenance 86 07 16 Operation/Office Expenses 86 07 17 Utilities 86 07 18 Insurances 86 07 19 Contingency Fund 8608: 00 Urban' Dev Department I - I - I - I: '· •. "' I " I " I 5,4oo,ooo I 86 08 01 Urban Planning :s:· 86 08 02 Traffic and Transportation Management 5,400,000 c::: 86 08 03 Housing Development z 86 09 00 City Devlopement Strategy L - I - I '''"' I . '•c', .: 'I'·' - I " I ·.::<:·- I 86 09 01 City Devlopement Strategy ~ ·.· ... ..... I 86 86 10;00' ADBTA 10 01 ADBTA I - I - I " I .. - I . - I, . - I ii: ., 86 11 00 ToWn Development Fund Projects I I -/I - I - I - I - I - I 86 11 01 Town Development Fund Projects 86 12 00'• Town; Devlopement 152,946,ooo 1 · 99,228,966 1 161,596,ooo 1 • 79,985,9491 98,216,ooo 1: 64,853,874 I 384,631,550 I :m I 86 12 01 Town Development (Town Level Projech 37,750,000 8, 135,192 46,400,000 4,524,360 221,259,000 86 12 02 Town Development (Ward Level Project~ 115,196,000 91,093,774 115,196,000 75,461,589 98,216,000 64,853,874 163,372,550 ·~· · · 86 12 03 Special Programs (Ward Level Projects) w 302,752,823 1,124,063,778 W'' "" Grand Total 443,329,475 573,691 '797 314,138,208 1,282,500,000 438,598,128 ':..;;;.. ANNEX 9 ~;)' KMC Expenditures Accounting •.0 Codes Account Head Actual 55/56 Budget 56/57 Actual 56/57 Budget 57/58 T:.zj 1000 00 land' .... ·' ~.<' 80,~50)000 J ~ "' I ·,;z·> 11 01 00 Building on Freehold Land 23,500,000 80,850,000 a 11 02 00 Building on Leasehold L;.md 11 03 00 Building on custodian lands 5,000,000 ~ 12 00 00 Infrastructure and Civil Works 26,fl00,000 9 13 00 00 Office Equipment- Computers 2,04;0,000 ·;o. 14 00 00 Office E:quipment- Others 489;500 !),995.ooo m ""'0 15 00 00 Furniture and Fittings 506;988 1,525,000 169,029 ·.· 800,000 0 16 00 00 Vehicles 173;727 10,000,000 296,884 10,j:J54,000. • ~., 17 00 00 Plant and Equipment 11,9QO,OOO 2,112,219 32&2!:),000 "" 19 00 00 Capital Work-in-progress - J 20,400,000 J - I . 2o,oo2,00o I 19 11 00 Building 12,400,000 10,388,000 19 12 00 Infrastructure and Civil Works 4,000,000 - 19 12 01 Roads 1,000,000 - 3,214,000 19 12 02 Traffic Management 19 12 03 Street Lighting 19 12 04 Bus Parks 19 12 05 Bridges/ culverts 400,000 19 12 06 Drainage and sewerage 3,000,000 19 12 07 Water Supply 3,000,000 2,000,000 19 12 08 Public Toilet 1,000,000 19 18'00 Others MIIP, 4 P 39,549,173 1 38,52o,ooo I .21,o1o,ooo I .. I 19 18 01 MIIP 39,549,173 27,520,000 21,010,000 19 18 02 4 P Program 11,000,000 20 00 oo Long Term Investment . I - I - I . I 20 03 00 Equity Investment 70 01 00 Salaries' & Wages 72,406,145 1 85,509,500 ! 74,610,614j_ 12s,os9,ooo 1 70 01 01 Elected Members 1 '129,800 1,224,000 1,320,681 330,000 70 01 02 Permanent Staff 71,276,345 49,272,745 86,459,000 70 01 03 Tenoirart Staff 11 ,099,429 20,682,000 70 01 04 Contract Staff 2,336,194 1,633,000 70 01 05 Monthly Wage Staff 10,581,565 9,062,000 70 01 06 Daily Wage Staff I 5,886,000 11 lth ~!h. IE:I"'J d"'tl. f\1~ I~ rtA ":JJ KMC Expenditures Codes Account Head Actual 55/56 Budget 56/57 Actual 56/57 Budget 57/58 70 01 07 Others 84,285,500 1,007,000 70 02 00 Allowances and Benefits-Eiec~ed Men :!, 198,685 1 ·· 11;21s,oool 9,876,1411 19,79o,ooo I 70 02 01 Transportation Allowance 2,386,300 10,216,000 8,734,600 17,280,000 70 02 02 Telephone Allowance 222,000 309,000 70 02 03 Medical Expenses 812,385 1,000,000 919,547 1,201,000 70 02 04 Dress Expenses/Allowances 1,000,000 70 03 00 Uniform E::penses & Allowances 4,862,3441 8,000,000 l 3,798,412 1 ·. · 5,005,000j 7{) 03 01 Uniform Expenses & Allowances 4,862,344 8,000,000 3,798,412 5,005,000 . 70 04 bo Employer's Contribution to Provident ~·· .. I 9,142,000 1 - I - I 70 04 01 Providend Fund Contribution 9,142,000 70 05 00 Head and Acting Allowance - I - I - I 14;ooo 1 70 05 01 Department Head Allowances 14,000 70 05 02 Kayam Mukayam (Acting) Allowance }0 06 00 Overtime c I - I 4,392,961 1. · · . 16,!195,oo.o l 70 06 01 Staff Over Time 4,392,961 16,995,000 70 07 00 Medical Allowances 138,884J 1,ooo,ooo 1 161,748 1 1 ,00.0,000 _I 70 07 01 Staff Medicdal Allownce 138,884 1,000,000 161,748 1,000,000 70 08 00 Dearness Allowances - I - I ~ .•. I - J 70 08 01 Permanent Staff 70 08 02 Temporary Staff 70 08 03 Contract Staff 70 08 04 Monthly Wage Staff 70 08 05 Daily Wage Staff 1,681,365 1,545,0QOj ·~· 70 09 00 Diet Allowances 1,761,052j 2,33o,ooo I I. . 70 09 01 Diet for Security Staff 1, 761 ,052 2,330,000 1,681,365 1,545,000 c. z•. 70 10 00 Tiffin Allowances - I - l 14;781,338 I 1o,ns,ooo I 0 70 10 01 Permanent Staff 14,781,338 6,884,000 70 10 02 Temporary Staff 1,622,000 .··~ . r- 70 10 03 Contract Staff 267,000 70 10 04 Monthly Wage Staff 1,213,000 2!:. .·~ 70 10 05 Daily Wage Staff 740,000 ·'·);>~•. · Z•w• 70 11 00 Night Shift AUowamces - , ..... ··.•· .. ·. - I . l - l ..... ~··;~ 70 11 01 Night Overtime .· :'~- >' . 70.12 00 Othe~ Allowances 7,060,784.1 2o,161,ooo 1 +· I • < .•. ~14,oooj 70 12 01 Other Allowances 7,060,784 20,761,000 914,000 '~:i:'' , .· 70 13. 00 Staff lnsur~nce . .. 696,Q51 l 1,ooo,ooo 1 31},1l:l71 1,ooo,ooo 1 70 13 01 Group Insurance 696,051 1,000,000 317,107 1,000,000 70 14 00 Leave E~g~sllment •.. .- ! . I • f .. ·...•. P.?; . "•!•I ·~.·· ANNEX 9 ;_Q'j KMC Expenditures Codes Account Head Actual 55/56 Budget 56/57 Actual 56157 Budget 57/58 0 70 14 01 Permanent Staff 70 14 02 Temporary Staff .,~· 70 14 03 Contract Staff o-::· • 70 15 00 R~ti~emerlt related Expenses 3,795,1681< .. 4,500,000 l ; 4.;442,698 1 10,soo;oottl 70 15 01 Gratuity 2,250,000 2,248,634 5,000,000 :t~., ... ' ~/, 70 15 02 Pension 3,795,168 1,125,000 2,194,064 2,500,000 Z .·:.•0 70 15 03 Accumulated Leave Encashment 675,000 1,500,000 >(/) ., '-1 70 15 04 Accumulated Medical Benefits 450,000 1,500,000 . 7101 00 Utilities. ..........·· 1,741,426! 2,ooo,ooo I .: •1;496)396 I 4,741,ooo I ··o 71 01 01 Electricity 1,741,426 1,200,000 760,741 3,059,000 71 01 02 Water 800,000 735,655 1,682,000 ~· -u 71 02 00 Goods · : 4,586,730 1 8,580,000 , ..• 6,777,899 I 10,227,ooo I 0 •.. ·.···· 71 02 01 Printings & Stationery 2,095,074 3,920,000 2,695,907 3,358,000 71 02 02 Publication of Journal 1,207,000 ~ 71 02 03 Newspaper, Periodicals and Boods pure 808,869 1,220,000 824,791 1,086,000 71 02 04 Small Assets 1,000,000 71 02 05 Office Supplies 1,635,885 3,340,000 3,185,633 3,000,000 71 02 06 Fuel-Heating, Cooking etc. 46,902 100,000 71,568 100,000 71 02 07 Medicine 476,000 00 Training and.Services .. 71 03 ... 1,491,23o t .12,569,000 l 4,663;eoa J 20,640,000 l 71 03 01 HRD (Training Expenses) 241,516 3,300,000 1,140,928 1,500,000 71 03 02 Study Tours 500,000 71 03 03 Research and Surveys 277,075 2,925,000 34,427 2,500,000 71 03 04 Meeting Fees 212,550 2,344,000 878,000 4,030,000 71 03 05 Meeting Expenses 760,089 1,408,254 1,625,000 71 03 06 Audit Fees 200,000 71 03 07 Audit Expenses 85,000 71 03 08 Consultancy Fees 1,200,000 71 03 09 Legal Fees 150,000 71 03 10 Other Professional Fee 100,000 71 03 11 Memberships, Registration and Renewall 250,000 71 03 12 Rewards and Prizes 200,000 71 03 13 Staff Welfare 4,000,000 1,202,000 8,000,000 71 03 14 Laundry expernses 300,000 71 04 00 Notifie~tion &.P~biicity •.· 1,970,3251 9,757,ooo 1 2,442,8431 :i 3,850,000 l 71 04 01 Administrative Notification i ,970,325 2,500,000 2,196,277 2,000,000 71 04 02 Publicity 7,257,000 246,566 1,000,000 71 04 03 Others 850,000 • 71 05. 00 Travel arl~ per dierfi ·•· 3,394,1581 5,ooo;ooo 1 4,405,350 1 3,500,0001 AI\.11\.II:V 0 T"'l' ·•· 6,5oo;ooo. 1 5,058,512 1 ·• 5,216,ooo I 71 10 01 Rent- Buildings 4,973,124 6,500,000 5,058,512 3,270,000 ~ r 71 10 02 Rent - Equipment 1,840,000 Tl 71 10 03 Rent - Others 100,000 z .)> 71 10 04 Royalties .z 71 10 05 Rates and Taxes () 71 10 06 License 6,000 m .·. 71 11 00 Financial Expenses 210,6161 32,595,586! . 11,190,3761 30,263,ooo 1 71 11 01 Bank Charges 210,616 250,000 392,397 263,000 71 11 02 Interest on Loans 32,345,586 10,797,979 30,000,000 71 11 03 Commitment Fees t3. 'I· 71 • 12 00 Operation of Plant & Equipment - I 2,2oo;o0o 1 .· .····• .•· - I 32;275,ooo 1 ..(;;:, ANNEX 9 'w 00 KMC Expenditures Codes Account Head Actual 55/56 Budget 56/57 Actual 56/57 Budget 57/58 0 71 12 01 Annual Registration Fees 150,000 ::j 71 12 02 Insurance 500,000 900,000 -< 71 12 03 Repairs and Maintence 1,700,000 8,525,000 0 71 12 04 Fuel 20,000,000 )> 71 12 05 Oil & Lubricants 2,700,000 G) 71 13 00 Revenue Mobilisation Additional ExpE 2,926,630 1 1,200,000 l; 672,2871 1,200,000 l z 0 71 13 01 Business Tax Collection Expenses 1,200,000 672,287 1,200,000 (/) 71 13 02 Thankot Octroi Collection Expenses 2,926,630 - - - -i 72 oo• oo Other Expenses • 2,124,805 1 11 ,573,ooo 1 7,197,422 1 12,8oo,ooo 1 0 72 01 01 Donations - Cultural, Heritage Trust 573,700 4,125,000 2,623,530 4,250,000 :::0 72 02 02 Donation Others 1,551,105 5,125,000 2,687,620 4,250,000 m \] 72 03 03 Seminars and Workshps Expenses 2,323,000 1,886,272 3,000,000 0 72 04 04 Prarticipation Fees & Expenses 200,000 :::0 -i 72 05 05 Fair. Exhibitions 300,000 72 06 06 Celebration 800,000 72 07 00 Insurance - I - I - I 1o,ooo 1 72 07 01 Building 72 07 02 Infrastructure and Civil Works 72 07 03 Office Equipment- Computers 10,000 72 07 04 Office Equipment- Others 72 07 05 Fruniture and Fittings 72 07 07 Other Asset Insurance 72 08 00 EntertainmenUGuest Relation 2,41o,1o1 1 5,25o,ooo 1 3.449,369 1 5,9oo,ooo 1 72 08 01 Civic Reception 2,410,101 5,250,000 3,449,369 500,000 72 08 02 Sister City Relation 500,000 72 08 03 Gifts 300,000 72 08 04 Refreshment 4,500,000 72 08 05 Other 100,000 72 09 00 Puja Expenses 161,3oo 1 27o,ooo 1 2so,ooo 1 3oo,ooo 1 72 09 01 Dashain!Tihar Puja expenses 161,300 270,000 250,000 300,000 72 10 00 Other Miscellaneous Expenses - I 2,2oo,ooo 1 130,698 1 - I 72 10 01 Other Miscellaneous Expenses - 2,200,000 130,698 73 00 00 Other Charges - I - l . - I 1o,ooo 1 73 01 01 Provision for inventory Losses 10,000 73 01 02 Provision for Doubtful Debts 73 01 03 Loss on Sale of Assets 73 01 04 Loss on Sale of Investments 74 00 00 Depree iation - I - I - I 9,oo6,ooo 1 74 01 00 Lease - hold Land ANNEX 9 KMC Expenditures Codes Account Head Actual 55/56 Budget 56/57 Actual 56/57 Budget 57/58 74 02 00 Building 74 03 00 Infrastructure and Civil Works 74 04 00 Office Equipment - Computers 74 05 00 Office Equipment - Others 74 06 00 Furniture and Fittings 74 07 00 Vehicles 9,006,000 74 08 00 Plant and Equipment 75 00 00 f{eflind of. Revenue 40,096,967 1 10,995,305 1 4,380,329 1 9,42a,ooo 1 75 OJ 00 Refund of Revenue - For the Year. 40,066,so3 I .. - I ..- I .1,40o,ooo I 75 01 01 Land Revenue to DOC - 1,200,000 75 01 02 Octroi to Other Municipalities 40,066,603 200,000 75 02 00 Refund of Revenue- Prior Years 30,364 1 10,995,305 I 4,380,329 1 s,o2a,ooo I 75 02 01 Land Revenue to DDC 2,245,305 3,500,000 75 02 02 Octroi to Other Municipalities 8,750,000 4,380,329 4,328,000 75 02 03 Other Income 30,364 200,000 76 00 00 Prior Years Expene!iture 590,9351 30,000,000 J 27,679,899j 37,367 ;ooo J 76 00 01 Infrastructure and Civil Works -Centre 5,717,000 76 00 02 Infrastructure and Civil Works -Wards 30,000,000 27,679,899 25,000,000 76 00 03 for services 3,150,000 76 00 04 for others 590,935 3,500,000 77 00 00 bid Advances Cleared - I - I ' - I .• I 77 01 00 Expenditure from Old Advances ;~ 77 02 00 Old Advance cleared by Statement of Ex1 ' ,, ;, '' ~ 80 00 00 Infrastructure and Civil Works 1,866,325] 371,535,5501 33; 112,7921 74,050,000j ·~· 80 01 00 Roads/foot path 1,750,000 c ~·· 80 02 00 Traffic management 5,400,000 80 03 2,000,000 -~ 00 Street Lighting 1~ 80 04 00 Bus Parks 1,287,999 5,000,000 101,063 ~~ 80 05 00 Pavements 1,000,000 ,.r- . ~~ 80 06 00 Bridges/culverts 800,000 80 07 00 Others 578,326 361 '135,550 33,011,729 68,500,000 81 QQ 00 E;nvin;>.nmental Service11. . 31,554,7611 38,000,000 l 35,071,866 1 ~9.s7o,ooo 1 11 ~· 81 01 00 Drainage and Sewerage m 81 02 00 River Control and Flood Protecton 3,000,000 81 03 00 Water Supply 81 04 00 Parks - 3,500,000 4,000,000 81 05 00 Public Toilet 800,000 81 06 00 Landfill/transfer station management. 6,500,000 30,000,000 35,030,166 6,400,000 81 07 00 Service subsidy expenses 1,500,000 1,100,000 ••J:;. ANNEX 9 ~ KMC Expenditures Codes Account Head Actual 55/56 Budget 56/57 Actual 56/57 Budget 57/58 ~,,'~',,.: 81 08 00 Area/Street Cleaning Expenses 10,870,000 81 09 00 Wastage Collection Expenses 25,054,761 3,000,000 41,700 3,500,000 -<· 81 10 00 Community Mobilisation - ,' ,,,,,,, 82 oo• oo Are;:1 Development ' J'c 2,ooo,ooo 1 - J :.: I ·~,···· .·C) 82 01 01 Parking Areas 2,000,000 "Z , 83 00 00 Social Servicf.!s ·, - I· 16,513,ooo 1 2;8j6,738,j c' 47,082iOOO I d' 83 01 00 Restoration of Temples 14,750,000 U) +I 83 02 00 Restoration of Others 5,707,000 0 83 03 00 Crematorium 10,000,000 83 04 00 Schools 1,000,000 ;:o 83 05 00 Health Centers 500,000 m -o 83 06 00 Clinics 6,518,000 1 ,668,112 - 0 83 07 00 Hospitals 4,000,000 10,000,000 ;:o '' +I 83 08 00 Sports 2,750,000 988,646 4,250,000 83 09 00 Scholoarship 875,000 31,980 1,375,000 83 10 00 Natural Calamity Relief 1,370,000 128,000 500,000 84 00 00 Trade and lndusttry - l 1oo,ooo 1 - I > .~ I 84 01 00 Markets 84 02 00 Industrial Development 84 03 00 Shops 84 04 00 Others 100,000 85 00 00 Public Health - I 351,ooo 1 - I 867,ooo, 1 85 01 01 Burial Services 85 Oi 02 Gows control Expenses 351,000 367,000 85 01 03 Dogs Control Expenses 500,000 86 00 00 Departments 13,551,696 I 33,959,ooo 1 9,562,335 I a2,95o,ooo 1 86 01 00 Other services of Social Welfare Dept 2,192,979 I 14,7oo,ooo I 6,906,6241 7,625,000,1 Community Development 14,700,000 6,906,624 86 01 01 Capacity Building Training 200,000 New Projects 2,192,979 86 01 02 NGO Resource Data Preparation 86 01 03 Ward Level Project for Women 1,750,000 86 01 04 International Labor Organization (ILO) 3,850,000 86 01 05 Situational Analysis of Squatters Area 86 01 06 Data Collection of Elderly Citizens & lllite1 86 01 07 Implementation of adult literacy Classes 86 01 08 Skill Development Training 86 01 09 Saving & Credit Training Disaster Management ANNEX 9 KMC Expenditures Codes Account Head Actual 55/56 Budget 56/57 Actual 56/57 Budget 57/58 86 01 Community based disaster mgmt. Traini 10 150,000 86 01 Vulnerability Assesment Survey 11 86 01 12 Public Awareness Campaign 25,000 86 01 13 GIS Maping 86 01 Publicity 14 86 01 Publication of Education materials 15 50,000 86 01 16 Observation of Earthquake Safety Day 50,000 New Projects 86 01 17 Awareness on Disaster Prevention in Dis 350,000 86 01 18 Application of building code in coordinatic 200,000 86 01 19 Establish Disaster Relief Fund 86 01 20 Formation of Disaster Rescue Team in VI 250,000 86 01 21 School Level Awareness Program on Dis 86 01 22 Formation of First Aid Volunteers Group 1 86 01 23 Establish of Student Disaster Preparedne Sports & Education 86 01 24 Inter-School Sports Competition 500,000 86 01 25 Inter-Ward Sports Competition 86 01 26 Formation of Ward Level Sports Deve. G 86 01 27 Workshop/Seminar on Sports Deve. withi 86 01 28 Campaign to enforce the Children of 6-1C 86 01 29 Establish KMC scholarship to the underp 86 01 30 Establish Children library in different War 86 01 31 Organize School level Quiz Contest 250,000 86 02 00 Other Services of Public Health Dept. ·.. .. '• . .:<• 1 £ I - l - I i>i2,077;0POi·l c 86 02 01 National Vitamin "A" Programme 250,000 Z· 86 02 02 National Immunization day Prg. 277,000 0 86 02 03 Epidemic Control Programme 400,000 86 02 04 Establishment of New UHC 150,000 ~-· 86 02 05 Food Adultration Control Prg. 500,000 ., 86 02 06 Medical Camp 100,000 z )> 86 02 07 Awareness on Health Prevention 100,000 .Z 86 02 08 Nutrition Programme 0 86 02 09 Rebies & Stray Dog Control Prg. m 86 02 10 Community Health Prg. At Ward 300,000 86 02 11 Urban Health Clinic Ward # .... 8~/:d.s,. oo·;; Other services of Culture, Heritage an .•. '. )~ 2,28~;?781 1~;s2s;ooor>:. · 2,6?~;r11 1 · 2,232,0QO.j ··*- 86 03 01 Collection Booths 2,289,278 13,525,000 2,655,711 640,000 ~ 86 03 02 Tourist Rest Room 1,000,000 "" ANNEX 9 ~' KMC Expenditures ' ,,.,~ Codes Account Head Actual 55156 Budget 56/57 Actual 56/57 Budget 57/58 ··(J;. 86 03 03 Heritage Clubs Trust Fund 32,000 :;:j. 86 03 04 Heritage Site cleanup Program ·::< 86 03 05 Cleaning Equipment 4 site 86 03 06 Eassy & Art Competition 50,000 Q. )> 86 03 07 Motor fare & lunch expenses G) 86 03 08 Interaction Program 160,000 z 86 03 09 Documentation Culture Heritage 200,000 0 (/) 86 03 10 Promotion of Culture & Festival :±1 86 03 11 Preparation of FM Program 100,000 0 86 03 12 FM Program Audio Materials 50,000 :;u 86 04 00 Information and Communication Dept 9,069,4391 5,734,ooo 1 - I i,4J:IO,OOO I m 86 04 01 KMC Home Page 9,069,439 5,734,000 500,000 -o 0 86 04 02 Repair Maintenance of the Equipments 200,000 :;o 86 04 03 Live Programs 30,000 ~·:-~ 86 04 04 Photo Exhibition 2 nos. 100,000 86 04 05 Meet the Press Programme 3 nos. 150,000 86 04 06 Publication of Mahanagar Bulletin 300,000 86 04 07 Dev. & Preparation of City Profile of Kath 200,000 86 05 00 Public Works Department - I - I 68,336,ooo I 86 05 01 A. Ongoing Projects - " 2,063,000 86 05 02 B. Committed Projects 3,728,000 86 05 03 C. Project Submitted for Approval 18,445,000 (but no information received about it's decision yet) 86 05 04 New Projects 44,100,000 86 06 00 The Urban Governance Initiatives - I - I - I 1,a1s,ooo 1 86 06 01 Monitoringof current quality of air, water, 205,000 86 06 02 Development of KMC Website 137,000 86 06 03 Establishment of ECO clubs 274,000 86 06 04 Activities related to Community Mobilizati 410,000 86 06 05 Institutional Strengthening with training a1 342,000 86 06 06 Dissemination 303,000 86 06 07 Contingency 205,000 86 07 00 Kath Vallery Maplng Programme - l - I - I .134,795,ooo I 86 07 01 Services/Local Technical Assistance 5,250,000 86 07 02 Services/Evaluation 325,000 86 07 03 Services/Studies 4,500,000 86 07 04 Services Training 5,525,000 86 07 05 Supplies/Equipment 5,330,000 ANNEX 9 KMC !Expenditures Codes Account Head I Actual 55/56 Budget 56/57 Actual 56/57 Budget 57/58 86 07 06 Supplies/Inputs I 2,080,000 86 07 07 Supplies/Transportation 13,812,000 86 07 08 Works/Projects 80,925,000 86 07 09 lnformation/Advertizements 390,000 86 07 10 Information/Public Relations 1,365,000 86 07 11 Information/Publications 325,000 86 07 12 Information/Reports 487,000 86 07 13 Operation/Salaries 8,310,000 86 07 14 Operation/Extra Support 264,000 86 07 15 Operation/Repair & Maintenance 780,000 86 07 16 Operation/Office Expenses 4,217,000 86 07 17 Utilities 120,000 86 07 18 Insurances 790,000 86 07 19 Contingency Fund - 8608 00 Urban Dev Department i ,,. . l - I - l · .··1,2oo,ooo 1 86 08 01 Urban Planning 400,000 s: 86 08 02 Traffic and Transportation Management - 200,000 c z 86 08 03 Housing Development 600,000 86 09 do Clty.Devlopement Strategy · ··• .., I - I .. - l - I 4,9oo;ooo I )> 86 09 01 City Devlopement Strategy 4,900,000 r. ~· · 86 10 (JO ADB TA .'• ··v. - I · .. - I - I .2o,ooo,ooo 1 , 86 10 01 ADBTA 20,000,000 86 11 00 Town Development Fund Projects ...... ,... ·I·/ • ·•y;. $ I - I - I - I ·~ . 86 11 01 Town Development Fund Projects m .• 86 >12 00 Town Deviopemellt I 19,484,798.J - I - l 39', ns.ooo I 86 12 01 Town Development (Town Level Project! 904,969 86 12 02 Town Development (Ward Level Project! 18,579,829 22,000,000 86 12 03 Special Programs (Ward Level Projects) 17,175,000 ~.· '.(;>.~•· .. YJ, Grand Total 284,722,946 875,585,941 325,1 84,636 1,054,016,000 CITY DIAGNQSTIC, REPORT ANNEX: 10 KMC New Budget System HMG/Nepal Local Other Gants I I Development Fee II & Loans KMC Town Level Projects Recurrent Budget Capital Budget KMC Operational Establish!nent Cost Town Level Projects Loan Repayment ... Remaining Revenue Ward Level Capital -1---, Development Fund Town Level Operation and Maintenance Cost Ward Operation Cot -- 50 % -1er Revenue Tax Income Recurrent Budget Recurrent Budget 33% Operations Cost Fixed Assets and Ward .. . Operations Cost .. Level Progects 33% .... Ward Level Operation & Maintenance cost Users Contribution J Income User from fees Fees & Property 444 ANNEX: 11 Kathmandu Metropolitan City Summary of Budget for Fiscal Year 2057/58 (2000/01) Code no. Estimated Income & Expenditures Budget 90 04 00 Tax Income 146,051,000.00 91 00 00 Income From Fees 98,700,000.00 92 00 00 Income From Property 11,676,610.00 93 00 00 Income From Investment 94 00 00 Sundry Income 84,013,000.00 95 00 00 Grants & Donations 431,029,390.00 96 00 00 Income From Receipts Contracts 97 00 00 Prior Year Income 47,000,000.00 98 00 00 Liabilities Written Back Total I nco me 818,470,000.00 70 00 00 Salaries & Benefits 201,690,000.00 71 00 00 Operational Expenses 199,591,000.00 80 00 00 0 & M of Infra & Services 435,365,000.00 10 00 00 Ca]2ital Ex12enditure 217,370,000.00 Total Expenditures 1 ,054,016,000.00 BUDGET DEFICIT (235,546,000.00) Sources of financing 50 01 00 Long Term Loan 171,387,000.00 Other Assistance 59,343,000.00 230' 730,000.00 . 7~i!rfuz cuu · ·•' RENT TAX i1;:;> ; · .. .·; - .··· . ·.·····i,soo,ooo 90 02 01 Property Rent Tax 2,500,000 90 02 02 so .o4/~ilo ?,o§'r,ooo· 90 04 01 . VEHICL,E TAX Bus, Truck, Lorry 4,799,229 614,000 - 15;025,000 3,000,000 6,208,126 666,500 90 04 02 Mini Truck 394,150 1,300,000 385,200 90 04 03 Mini Bus - other (Public) 90 04 04 Car- other (Public) 90 04 05 Jeep, Van -other (Public) 620,200 1,300,000 568,400 90 04 06 Tempo- other (Public) 259,660 500,000 184,770 90 04 07 Mini Bus - Private 90 04 08 Car - Private 90 04 09 Jeep, Van - Private 2,116,580 4,500,000 2,234,380 90 04 10 Tempo- Private 21,900 100,000 12,150 90 04 11 Scooter & Motor Cycle 703,844 3,800,000 2,076,661 90 04 12 Tractor and Power Tiller 61,600 500,000 57,100 90 04 13 Rickshaw & Cart 7,295 25,000 22,965 90 05 oo JIIITEGRATEO PROPERTY TAX - .. - - .:,. . 2,500,000 90 05 01 Integrated Property Tax 2,500,000 90 i 06 .· J)O ENT!,:IUAINMENT TAX - - - .. 4,000,000 90 06 01 Cinema Hall 90 06 02 Video Hall 90 06 03 Cultural Exhibition Hall 90 06 04 Theatre, Music Concert 90 06 05 · "so.;;Jl7. DO I Circus, Magic, Acrobatic Show C.OMMER.CIAL VIDEO SHOW TAX ,.. - .... '·'· - .. 90 07 01 Cable Operator 90 07 02 Video 90 07 03 Projector 9CL o8 oo L ADVERTISEMENT TAX 363,621 6,000,000 3,797,955 'IO,ooo,ooo· 90 08 01 Sign Board 198,709 1,000,000 1,343,412 90 08 02 Neon Boards 7,600 2,500,000 2,223,973 90 08 03 Hoarding Boards 157,312 2,500,000 230,570 90 08 04 Banners & Posters ..90 10 oo 1 ·• .BUSINESS P~()f:ESSIQ~ tAx 1,444;855 .· 7,375,000 11,414,836 55,000,000 90 10 01 Trading Business 7,000 90 10 02 Professionals 5,200 90 10 03 Construction Business 3,200 90 10 04 Manufacturing Industries Business 174,850 90 10 05 Energy and Power Generating Business 64,000 90 10 06 Agro-Forestry Based Business 27,700 90 10 07 Mining and Minerals Processing Business 59,400 90 10 08 Tourism Based Business 723,045 90 10 09 Service Business 380,460 90 10 10 Property /Estate Leasing Business 90 10 11 Communication Business 90 "10 12 Financial Service Business MUNICIPAL FINANCE ANNEX: 11 KMC Annual Budget 2057/058 (2000/01) Actual Budgeted for Revenue Revenue for 56/57 199/00) 57158 2055/56 Account Head (98/99) Budgeted Actual (00/01) Codes 90 10 13 Health Services Business 90 10 14 Educational and Training Business 90 10 15 Repair & Maintenance Service Business 90 10 16 Other Services 90 10 17 Other Business 90 10 18 Temporary Haat Bazar & Mobile Shops 90 10 19 Others 9'1 00 00 IJNCOME FROM FEES 18,984,460 24,210,065 36,221,356 98,700,000 91 01 01 Vehicle Entrance Fee- Thankot 2,976,750 3,500,000 4,212,850 4,000,000 9"1 01 02 Old Bus Park 112,237 200,000 1 '177,835 1,300,000 9"1 01 08 New Bus Park Fee 4,705,725 5,000,000 6,057,375 5,100,000 9"1 01 03 Parking Fee 3,301,994 5,000,000 1,960,205 4,500,000 9"1 01 04 Property Valuation Fee 6,467 10,000 36,069 2,000,000 9"1 01 05 Building Map Approval Fee 7,320,895 10,000,000 22,218,150 80,000,000 9"1 01 06 Shop at Public Land (Hyumata) 10,000 411,100 1,500,000 9"1 01 07 Buspark Terminal, Bhugol Park Toilet 550,392 500,065 147,772 300,000 ,_ 00 a·~ 00 INCOME FROM PROPERTY 4,031,351 4,304,765 3,662,111 11,676,610 g;~ Of 00 INCOME FROM RENTAL 4,031,351 4,304,765 3,662,111 10,776,610 92 01 01 Income from Rental- Bhugol Park 1st floor 816,018 902,500 1,116,705 763,283 92 01 02 Income from Rental - Bhugol Park Ground Fl 676,875 816,018 632,415 774,165 92 01 03 Income from Rental - Bhugol Park Beneath ~ 331,152 331,151 331,151 348,966 92 01 04 Income from Rental - Hawker Shed near NE 329,940 219,960 329,940 390,196 92 01 05 Income from Rental - Old Buspark shops 1,877,366 1,935,136 1,244,700 2,300,000 92 01 06 Income from Rental - Overhead Bridge 2,000,000 9:2 01 07 Income from Rental - Sub-way - 92 01 08 Income from Rental - Slaughter House 3,500,000 9:~ 01 09 Income from Rental -Advertisement Spots 500,000 9') 01 10 Income from Rental - Equipment 200,000 9:~ 01 11 Income from Rental - Ward property - 100,000 7,200 - 9:1 02 00 I INCOME Ffl_OM FM STUDIO - - . 900,000 92 02 01 Income from Rental -Studio 92 02 02 Income from Program Sponsorship 92 02 03 Income from Advertisement 9:1 JlO 00 !INCOME FROM INVESTMENT 552,202 500,000 . - 9:l 00 01 Interest from Bank Deposit 552,202 500,000 9:l 00 01 Interest from Revolving Fund - 9:l 00 02 Interest Income from Govt. Bonds 9:l 00 03 Dividend Income from Equity Investment 9:l 00 04 Gain on Sale of Investment M 00 I 00 SUNDRY INCOME 7,538,104 26,681,000 14,899,491 84,013,000 94 01 00 MINOR FEES 5,735,200 9,471,000 13,051,976 31,426,000 94 01 01 Application Fee 47,043 100,000 242,675 250,000 94 01 02 Registration & Other fee/charges 1 ,212,990 2,500,000 4,838,633 5,000,000 94 01 03 Environment & Sanitation Fee 3,512,194 5,000,000 4,924,858 22,240,000 94 01 04 Tender Document Fee - 500,000 53,770 360,000 94 01 04 Tender Document Fee 626,600 94 01 05 Map Form Fee 165,875 200,000 2,941,000 3,000,000 94 01 06 Certification Fee 1,020,000 22,026 25,000 94 01 07 Other Fee (Copy) 14,983 1,000 629 1,000 94 01 08 Other Form Fee 155,515 150,000 28,385 50,000 94 01 09 Pet Animal (Dog) Registration 500,000 94 02 oo I CHARGES 9,000 15,010,000 4,700 50,105,000 94 02 01 Miscellaneous/Tourism Fee - 10,000,000 50,000,000 94 02 02 Wastage Disposal Charge - 5,000,000 94 02 03 Block Number Plate 9,000 10,000 4,700 5,000 94 02 04 Road Maintenance Charge 100,000 94. 03 oo I OTHER • SALES 385,630 400,000 298,134 782,000 94 03 01 Auction of Animals 250,474 250,000 161,464 150,000 94 03 02 Auction of Materials 532,000 447 CITY DiAGNOSTIC 'REPORT ANNEX: 11 KMC Annual Budget 2057/058 (2000/01) Actual Bu dg et•ed for Revenue Revenue for 56/57 (99100) 57/58 2055/56 Account Head (98/99) Budgeted Actual (00101) Codes 94 03 03 Sale of Scraps 100,000 94 03 04 Sale of Trees 0 94 03 05 Sale of Compost 0 94 03 06 Gain on Sale of Assets 0 94 03 07 Recovery from Bus Terminal Telephone 135,156 150,000 136,670 - 94 04 oo i FiNE AND PENALTY 1,408,274 1,800,000 1,544,681 1,700,000 94 04 01 Contractor Performance Penalty 94 04 02 Late Fee Penalty 1,207,055 94 04 03 Arbitration Fee 465 94 04 04 Other Penalty 1500000 1500244 1500000 94 04 05 Forfeiture of Deposit Payable - 100,000 100,000 94 04 06 Miscellaneous/ Insurance claim received 200,754 200,000 44,437 100,000 OCTROI -~'- _, 166,005,009 . . . ' £,y. 1. Thankot Depot 147,764,306 2. Tribhubhan lnt'l Airport Depot 16,123,630 3. Banepa-Dhulikhel 2,017,073 4. Bidur 100,000 5. Janakpur Cigarette Factory - 6. Nepal Oil Corporation - 7. Miscellaneous - ., .. -~ TOTAL OWN SOURCE REVENUE 207,440,626 109,095,830 80,276,026 34o,4"'o,61o · 95 .00 00 I GRANTS AND DONATIONS 34,437,596 I 351,177,985 229,234,744 4~1;0.'29,390 95 01 00 l GRANTS FROi\11 HMG 33,499,600 206,988,544 221,047,837 2S0~4@0";oao 95 01 01 HMG -Administration 300,000 400,000 4,620,000 400,000 95 02 02 Local Dev. Fee (Tax) 33,199,600 206,588,544 216,427,837 250,000,000 95 03 oo I GRANT-IN-AID (FOREIGN) 937,996 143,101,890 6,057',700 '170,5:~9,390 95 03 01 ADB Grant - 20,000,000 20,000,000 95 03 02 EU Grant - 100,000,000 130,000,000 95 03 03 Grant from other international agencies 937,996 19,100,000 3,757,200 8,750,000 95 03 04 Grant from TUG I 3,500,000 2,082,000 2,746,000 95 03 05 Grant from ILO 3,850,000 95 03 06 Grant from World Bank (CDS) 4,900,000 95 03 07 Grant from RUDO/USAID 501,890 218,500 283,390 95 04 oo I GRANT-IN-AID (NATIONAL) - 1,087,551 2, 129):!07 10,1'll!l,OOO 95 04 01 Grant from other organizations/municipalities 1,087,551 2,099,207 95 04 02 Grant from national organizations 30,000 100,000 95 04 03 User's Group/People's participation - 10,000,000 96 00 oo I INCOME FROM RECEIPT CONTRACTS - - - - 96 00 01 Receipts from Contract 1 96 00 02 Receipts from Contract 2 96 00 03 Receipts from Contract 3 97 00 oo 1 PRIOR YEAR INCOME 1,747,915 2,000,000 5,810,363 47,000,000 97 01 00 Loan/Advance Refund 1,747,915 2,000,000 5,810,363 47,000,000 ss 00 oo L LIABILITIES WRITTEN BACK . - - - 98 01 00 Liabilities Written Back 60 00 oo I lOANS 32,149,173 247,813,00(f 14,700,000 -- 60 01 00 ADB Loan 26,949,173 17,813,000 60 02 00 Loan from Local Banks . 230,000,000 10,000,000 60 02 00 Town Development Fund - 60 03 00 Loan from Deposit Accounts 5,200,000 4,700,000 35 00 00 I LAST YEAR'S BALANCE 12,943,758 3,996,122 4,007;185 I 35 00 01 KMC Fund Balance - 3,996,122 3,963,902 1. NRB A/C # 23 7,233,445 2. NRB A/C # 81 437,328 3. NRB A/C # 230 368,133 448 ANNEX: 11 KMC Annual Budget 2057/058 (2000/01) Actual Budgeted for Revenue Revenue for 56/57 (99/00) 57/58 2055/56 Account Head (98/99) Budgeted Codes Actual (00/01) 4. Himalayan Bank (Octroi) 4,861,519 5. Himalayan Bank (Parking Fee) 43,334 6. Nepal Bangladesh Bank 2001 C - 7. Nepal Bangladesh Bank 1991 C - 8. Rastriya Banijya Bank 3782 9. UNICEF Grant NC Balance 10. Grant NC Balance - 3() 01 01 Cash Balance 43,283 ··' .. 449. crrY DIAGNOSTIC REPORT ANNEX: 11 KMC Annual Budget 2057/058 (2000/01) Kathmandu Metropolitan City Statement of Estimated Expenditures for Fiscal Year 205 7/58 (2000/01) Actual Budgeted for Expenditures Expenditures for 56/57 (99/00) 57/58 Account Head 2055/56 (98/99) Budgeted Actual (00/01) Codes 10~00 00 land - 4,000,000 265,625 37 ,000;000 ! 10 01 00 Land Freehold - 4,000,000 265,625 37,000,000 10 02 00 Land Leasehold 11 00 00 Building '" - 28,500,000 - 80,850,000 11 01 00 Building on Freehold Land 23,500,000 80,850,000 11 02 00 Building on Leasehold Land 11 03 00 Building on custodian lands 5,000,000 12 00 ()() lofrastructure and Civil Works 26,900.000 1 13i00 00 Office Equipment- Computers " 2,040,000 I 14 00 00 Office Equipment- Others 489,500 5,995,0QQ I 15 00 00 furniture and Fittings 506,988 1,525,000 169,029 800,000 16 00 00 VehiCles ' 173,727 10,000,000 296,884 10,954;000 17 00 00 Plant and Equipment 11,900,000 2,112,219 32,829,000 ' ,19' 00 00 Capital Work-in-progress - 20,400,000 '' - 20,002,000 19 11 00 Building 12,400,000 10,388,000 19 12 00 Infrastructure and Civil Works 4,000,000 - 19 12 01 Roads 1,000,000 - 3,214,000 19 12 02 Traffic Management 19 12 03 Street Lighting 19 12 04 Bus Parks 19 12 05 Bridges/ culverts 400,000 19 12 06 Drainage and sewerage 3,000,000 19 12 07 Water Supply 3,000,000 2,000,000 19 12 08 Public Toilet 1,000,000 19 18, DO , Others MIIP, 4 P 39,549,173 38,520,000 21,010,000 - 19 18 01 MIIP 39,549,173 27,520,000 21,010,000 19 18 02 4 P Program 11,000,000 20 00 00 Long Term Investment .. - - - - 20 03 00 Equity Investment 70 01 00 Salaries & Wages ...... 72,406,145 85,509,500 74,610,614 125,059;000 70 01 01 Elected Members 1 '129,800 1,224,000 1,320,681 330,000 70 01 02 Permanent Staff 71,276,345 49,272,745 86,459,000 70 01 03 Tenoirart Staff 11,099,429 20,682,000 70 01 04 Contract Staff 2,336,194 1,633,000 70 01 05 Monthly Wage Staff 10,581,565 9,062,000 70 01 06 Daily Wage Staff 5,886,000 70 01 07 Others 84,285,500 1,007,000 7002 00 Allowances and; Benefits-Elected Men 3,198,685 11,2116,000 9,876,147 19,790,000 70 02 01 Transportation Allowance 2,386,300 10,216,000 8,734,600 17,280,000 70 02 02 Telephone Allowance 222,000 309,000 70 02 03 Medical Expenses 812,385 1,000,000 919,547 1,201,000 70 02 04 Dress Expenses/Allowances 1,000,000 70,03 00 Uniform Expenses & Allowances 4,862,344 8,000,000 3,798,412 5,005,000 70 03 01 Uniform Expenses & Allowances 4,862,344 8,000,000 3,798,412 5,005,000 70,04 00 Emptoyer;s Contribution to Provident . - - ' s,142;ooo 70 04 01 Providend Fund Contribution 9,142,000 70 05 00 Head and Acting Allowance - = - - 14,000 70 05 01 Department Head Allowances 14,000 70 05 02 Kayam Mukayam (Acting) Allowance 7006 .· 00 Overtime - i - I 4,392,961 16,995;000 70 06 01 Staff Over Time I I 4,392,961 16,995,000 450 MUNICIPAL FINANCE ANNEX: 11 KMC Annual Budget 2057/058 (2000/01) Actual Budgeted for Expenditures Expenditures for 56/57 (99/00) 57/58 Account Head 2055/56 (98/99) Budgeted Actual (00101) Codes .70 6'7. 00 . Medical Allowances 138,884 1,000,000 161,748 ,. 1,000,000 70 07 01 Staff Medicdal Allownce 70 08 00 70 De.!llmess Allowances 08 01 Permanent Staff 138,884 . 1,000,000 . .. 161,748 .. 1,000,000 . 70 08 02 Temporary Staff 70 08 03 Contract Staff 70 08 04 Monthly Wage Staff 70 08 05 Daily Wage Staff 7Q09' QO, Diet.Ailow!lln.ces 1,761,052 2,330,000 1,681,365 1,545,000 70 09 01 Diet for Security Staff 1,761,052 2,330,000 1,681,365 1,545,000 ... 70 10 bo Tiffin Allowance$.! - " 14,781,338 10,726,000 70 10 01 Permanent Staff 14,781,338 6,884,000 70 10 02 Temporary Staff 1,622,000 70 10 03 Contract Staff 267,000 70 10 04 Monthly Wage Staff 1,213,000 70 10 05 Daily Wage Staff 740,000 70 11 oo 1\llght Shift Allowances - . -. . 70 11 01 Night Overtime 70 12' 00 Other Allowances 7,060,784 20,76'1,000 . 914,000 70 12 01 Other Allowances 7,060,784 20,761,000 914,000 70 13 bO staff Insurance 696,051 1,000,000 317,107 1,000,000 70 13 01 Group Insurance 696,051 1,000,000 317,107 1,000,000 7b 14 00' Leave Encashment . - - . 70 14 01 Permanent Staff 70 14 02 Temporary Staff 70 14 03 Contract Staff 70 15 00 Retirement related Expenses 3,795,168 4,500,000 4,442,698 ' 10,500,000 70 15 01 Gratuity 2,250,000 2,248,634 5,000,000 70 15 02 Pension 3,795,168 1 '125,000 2,194,064 2,500,000 70 15 03 Accumulated Leave Encashment 675,000 1,500,000 70 15 04 Accumulated Medical Benefits 450,000 1,500,000 1,741,426 2,000,000 1;496,396 : ... 4;741,000 71.01 00 Utilities 71 01 01 Electricity 1,741,426 1,200,000 760,741 3,059,000 71 01 02 Water 800,000 735,655 ! 1,682,000 71.02 do Goods 4,586,730 8,580,000 6,777,899 10,227,000 71 02 01 Printings & Stationery 2,095,074 3,920,000 2,695,907 3,358,000 71 02 02 Publication of Journal 1,207,000 71 02 03 Newspaper, Periodicals and Boods pure 808,869 1,220,000 824,791 1,086,000 71 02 04 Small Assets 1,000,000 71 02 05 Office Supplies 1,635,885 3,340,000 3,185,633 3,000,000 71 02 06 Fuel-Heating, Cooking etc. 46,902 100,000 71,568 100,000 71 02 07 Medicine 476,000 ·7103 00 Training ancfServices 1,491,230 12,569,000 4,663,609 20,640,000 71 03 01 HRD (Training Expenses) 241,516 3,300,000 1,140,928 1,500,000 71 03 02 Study Tours 500,000 71 03 03 Research and Surveys 277,075 2,925,000 34,427 2,500,000 71 03 04 Meeting Fees 212,550 2,344,000 878,000 4,030,000 71 03 05 Meeting Expenses 760,089 1,408,254 1,625,000 71 03 06 Audit Fees 200,000 71 03 07 Audit Expenses 85,000 71 03 08 Consultancy Fees 1,200,000 71 03 09 Legal Fees 150,000 71 03 10 Other Professional Fee 100,000 71 03 11 Memberships, Registration and Renewals 250,000 71 03 12 Rewards and Prizes 200,000 71 03 13 Staff Welfare 4,000,000 1,202,000 8,000,000 71 03 14 laundry expernses 300,000 451 CITY DIAGNOSTIC REPORT ANNEX: 11 KMC Annual Budget 2057/058 (2000/01) = ~ Actual Budgeted for I I Expenditures Expenditures for 56/57 (99/00) 57/58 Account Head 2055/56 (98/99) Budgeted Actual (00/01) Codes 7:1 0.4. 00 Notification & Publicity 1,970,325 9,757,000 ···2,442,843 3,850,000 ' 71 04 01 Administrative Notification 1,970,325 2,500,000 2,196,277 2,000,000 71 04 02 Publicity 7,257,000 246,566 1,000,000 71 04 03 Others 850,000 71 (}~ 00 Trayei and per diem 3,394,158 5,000,000 4,405,350 3,500',()()0 : 71 05 01 Travel Expenses 3,394,158 5,000,000 2,273,614 1,5QQ,0QQ I 71 05 02 Daily Allowances 2,131,736 1,500,000 71 05 03 Other Expenses 500,000 , 11'roa: 'to ": l.j).t;i:ll Transportation .... 63,756 300,000 150,761 100i,OOO 71 06 01 Local Transportation 63,756 300,000 50,000 71 06 02 Transport & Porter 150,761 50,000 "V'' ,.. ' 7+.~7,,.oo·•·· Operation of Vehicles 14,938,253 15,651,000 21,844,616 6,660,000 71 07 01 Annual Registration Fees 30,000 71 07 02 Insurance 100,000 71 07 03 Repairs and Maintence 854,780 1,500,000 1,249,591 800,000 71 07 04 Fuel 14,083,473 14,151,000 20,595,025 3,500,000 71 07 05 Oil & Lubricants 1,000,000 71 07 06 Repairs and Maintence - staff 400,000 71 07 07 Fuel- staff 575,000 71 07 08 Oil & Lubricants - staff 255,000 .71 08 00 Cornmtinic~tions .. 1,568,277 4,525;000 ' 2,563,032 '·: 3;623,000 71 08 01 Postage & Courriers 33,350 50,000 30,479 108,000 71 08 02 Telephone & Fax 1,534,927 4,475,000 2,532,553 3,350,000 71 08 03 E-mail/Internet 115,000 71 08 04 Others 50,000 00, . Repaixs and Maintenanc~ I. 71. 09 378,232 : •,·2,800,000 2,351,360 2,475;000 71 09 01 Own Buildings 700,000 71 09 02 Rented Buildings 2,500,000 300,000 71 09 03 Office Equipment- Computers 550,000 71 09 04 Office Equipment - others 242,158 300,000 219,340 500,000 71 09 05 Furniture and Fixtures 217,157 400,000 71 09 06 Others 136,074 1,914,863 25,000 .7.1 10 00. Rerits, Royalties; Rates and.Taxes 4,973,124 6,5100,000 5,058,512 .. 5,216,000 71 10 01 Rent - Buildings 4,973,124 6,500,000 5,058,512 3,270,000 71 10 02 Rent - Equipment 1,840,000 71 10 03 Rent - Others 100,000 71 10 04 Royalties 71 10 05 Rates and Taxes 71 10 06 License 6,000 71 1i 00 Financial Expenses 210,616 32,595,586 11,190,376 30,263,00() 71 11 01 Bank Charges 210,616 250,000 392,397 263,000 71 11 02 Interest on Loans 32,345,586 10,797,979 30,000,000 71 11 03 Commitment Fees -rt. 12 oa . Operati~n of Planf& Equipment '" 2,200,000 "i • -. '": 32,2(5,000 71 12 01 Annual Registration Fees 150,000 71 12 02 Insurance 5,00,000 900,000 71 12 03 Repairs and Maintence 1,700,000 8,525,000 71 12 04 Fuel 20,000,000 71 12 05 Oil & Lubricants 2,700,000 71. 13 QO Revenue!Yiobil.isali.on ~dditi.onal ExpE 2,926,630 1,200,000 672,287 1,200,000 71 13 01 Business Tax Collection Expenses 1,200,000 672,287 1,200,000 71 13 02 Thankot Octroi Collection Expenses 2,926,630 - - - }.2 00 00' Other Expenses 2,124,805 11,573,000 7,197,422 . 12,800',000 72 01 01 Donations -Cultural, Heritage Trust 573,700 4,'125,000 2,623,530 4,250,000 72 02 02 Donation Others 1,551,105 5,'125,000 2,687,620 4,250,000 72 03 03 Seminars and Workshps Expenses 2,323,000 1,886,272 3,000,000 72 04 04 Prarticipation Fees & Expenses 200,000 MUNICIPAL FINANCE ANNEX: 11 KMC Annual Budget 2057/058 (2000/01) Actual Budgeted for E)(penditures E)(penditures for 56157 (99/00) 57/58 Account Head 2055/56 (98/99) Budgeted Actual (00/01) Codes 72 05 05 Fair. Exhibitions 300,000 72 06 06 Celebration 800,000 72 07 00 ln!>urance · - - - 10,000 72 07 01 Building 72 07 02 Infrastructure and Civil Works .72 07 03 Office Equipment- Computers 10,000 72 07 04 Office Equipment - Others 72 07 05 Fruniture and Fittings 72 07 07 Other Asset Insurance nos oo' Enterialrlment!Guest Relation 2,410,101 5,250,000 3,449,369 5,900,000 72 08 01 Civic Reception 2,410,101 5,250,000 3,449,369 500,000 72 08 02 Sister City Relation 500,000 72 08 03 Gifts 300,000 72 08 04 Refreshment 4,500,000 72 08 05 Other 100,000 72 09 .00 Puja Expenses 161,300 270,000 250,000 300,0()0 72 09 01 Dashainrrihar Puja expenses 161,300 270,000 250,000 300,000 72 10 00 OtherMiscellane.ous Expenses . 2,200,000 130,698 ' - 72 10 01 Other Miscellaneous Expenses - 2,200,000 130,698 73 00 od' OU!ew Charges . . .. 10,000 73 01 01 Provision for inventory Losses 10,000 73 01 02 Provision for Doubtful Debts 73 01 03 Loss on Sale of Assets 73 01 04 Loss on Sale of Investments 74 00 00 Depreciation - - ;· ,.•{ ·l'lf'IUU!d'U'lfl 74 01 00 Lease - hold Land 74 02 00 Building 74 03 00 Infrastructure and Civil Works 74 04 00 Office Equipment- Computers 74 05 00 Office Equipment- Others 74 06 00 Furniture and Fittings 74 07 00 Vehicles 9,006,000 74 08 00 Plant and Equipment 75 00 00' ~efund of Revenue 40,096,967 10,995,305 4,380,329 9,428,000 75 01 00 Reflin.d of Revenlle- For tile Year 40,066,603 - ·- 1,400,000 75 01 01 Land Revenue to DOC - 1,200,000 75 01 02 Octroi to Other Municipalities 40,066,603 200,000 75 02 00 of Ref!.i!'id Reveriue- Prior Years 30,364 10,995,305 4,380,329 8,028,000 75 02 01 Land Revenue to DOC 2,245,305 3,500,000 75 02 02 Octroi to Other Municipalities 8,750,000 4,380,329 4,328,000 75 02 03 Other Income 30,364 200,000 76 00 00 Prior Years Expenditure 590,935 30,000,000 27,679,899 37,367,000 76 00 01 Infrastructure and Civil Works - Centre 5,717,000 76 00 02 Infrastructure and Civil Works -Wards 30,000,000 27,679,899 25,000,000 76 00 03 for services 3,150,000 76 00 04 for others 590,935 3,500,000 77 00 00 Old Advances Cleared - - , -, . 77 01 00 Expenditure from Old Advances 77 02 00 Old Advance cleared by Statement of Exp. 80 00 00 Infrastructure and Civil Works 1,866,325 371,535,550 33,112,792 74,050,000 80 01 00 Roads/foot path 1,750,000 80 02 00 Traffic management 5,400,000 80 03 00 Street Lighting 2,000,000 80 04 00 Bus Parks 1,287,999 5,000,000 101,063 80 05 00 Pavements 1,000,000 80 06 00 Bridges/culverts 800,000 80 07 00 Others 578,326 361 '135,550 33,011,729 68,500,000 '453 'CITY DIAGNOSTIC ~EPORT ANNEX: 11 KMC Annual Budget 2057/058 (2000/01) Actual Budgeted for Expenditures Expenditures for 56/57 (99/00) 57/58 Account Head 2055/56 (98/99) Budgeted Actual (00/01) Codes 81 bo ob En\tironmental Services 31,554,761 38,0010,000 35,071,866 '' 29,670,000 81 01 00 Drainage and Sewerage 81 02 00 River Control and Flood Protecton 3,000,000: 81 03 00 Water Supply 81 04 00 Parks - 3,500,000 4,000,000 : 81 05 00 Public Toilet 800,000 ; 81 06 00 Landfill/transfer station management. 6,500,000 30,000,000 35,030,166 6,400,000 81 07 00 Service subsidy expenses 1,500,000 1 '1 00,000 81 08 00 Area/Street Cleaning Expenses 10,870,000 81 09 00 Wastage Collection Expenses 25,054,761 3,000,000 41,700 3,500,000 81 10 00 Community Mobilisation - 82 00 00 82 01 01 Area Delfelopment Parking Areas - 2,000,000 2,000,000 - - 83 00' DO Social Services - 11$,513,()00 2,816,738 47,082,000 83 01 00 Restoration of Temples 14,750,000 83 02 00 Restoration of Others 5,707,000 83 03 00 Crematorium 10,000,000 83 04 00 Schools 1,000,000 83 05 00 Health Centers 500,000 83 06 00 Clinics 6,518,000 1,668,112 - 83 07 00 Hospitals 4,000,000 10,000,000 83 08 00 Sports 2,750,000 988,646 4,250,000 83 09 00 Scholoarship 875,000 31,980 1,375,000 83 10 00 Natural Calamity Relief 1,3"10,000 128,000 500,000 84 00 00 Trade and lndusttry - 100,000 - ,;; . 84 01 00 Markets 84 02 00 Industrial Development 84 03 00 Shops 84 04 00 Others 100,000 85 00 00 Public Health . 351,000 - 867,000 85 01 01 Burial Services 85 01 02 Cows control Expenses 3:51,000 367,000 85 01 03 Dogs Control Expenses 500,000 86 00 00 Departments, ':' 13,551,69S 3$,959,000 9,562,335 ~2.950,000 86 OL, 00 Other services of Social Welfare Dept 2,192,979 14,7100,000 6,906,624 7,625',000 Community Development 14,700,000 6,906,624 86 01 01 Capacity Building Training 200,000 New Projects 2,192,979 86 01 02 NGO Resource Data Preparation 86 01 03 Ward Level Project for Women 1,750,000 86 01 04 International Labor Organization (ILO) 3,850,000 86 01 05 Situational Analysis of Squatters Area 86 01 06 Data Collection of Elderly Citizens & Illiterate Women 86 01 07 Implementation of adult literacy Classes 86 01 08 Skill Deveiopment Training 86 01 09 Saving & Credit Training Disaster Management 86 01 10 Community based disaster mgmt. Training 150,000 86 01 11 Vulnerability Assesment Survey 86 01 12 Public Awareness Campaign 25,000 86 01 13 GIS Maping 86 01 14 Publicity 86 01 15 Publication of Education materials 50,000 86 01 16 Observation of Earthquake Safety Day 50,000 New Projects 86 01 17 Awareness on Disaster Prevention in Disaster Prone areas 350,000 86 01 Hl Application of building code in coordination witk KMC & UDD 200,000 454 MUNICIPAL FINANCE ANNEX: 11 KMC Annual Budget 2057/058 (2000/01) Actual Budgeted for Expenditures Expenditures for 56157 (99/00) 57158 Account Head 2055/56 (98/99) Budgeted Actual (00/01) Codes 86 01 19 Establish Disaster Relief Fund 86 01 20 Formation of Disaster Rescue Team in Ward Level 250,000 86 01 21 School Level Awareness Program on Disaster Preparedness 86 01 22 Formation of First Aid Volunteers Group for Emergency 86 01 23 Establish of Student Disaster Preparedness Club Sports & Education 86 01 24 Inter-School Sports Competition 500,000 86 01 25 Inter-Ward Sports Competition 86 01 26 Formation of Ward Level Sports Deve. Committee 86 01 27 Workshop/Seminar on Sports Deve. within KMC 86 01 28 Campaign to enforce the Children of 6-10 yrs. to enroll in the School 86 01 29 Establish KMC scholarship to the underprivileged group children 86 01 30 Establish Children library in different Wards 86 01 31 Organize School level Quiz Contest 250,000 .. - .. ·_ 86•b2 oti Other Services of Public Health Dept. ·- I 2,077,000 86 02 01 National Vitamin "A" Programme 250,000 86 02 02 National Immunization day Prg. 277,000 86 02 03 Epidemic Control Programme 400,000 86 02 04 Establishment of New UHC 150,000 86 02 05 Food Adultration Control Prg. 500,000 86 02 06 Medical Camp 100;000 86 02 07 Awareness on Health Prevention 100,000 86 02 08 Nutrition Programme 86 02 09 Rebies & Stray Dog Control Prg. 86 02 10 Community Health Prg. At Ward 300,000 86 02 11 Urban Health Clinic Ward # 86 03 00 Other services of Culture, Heritage an 2,289,278 13,525,000 ,. 2,655,711 .·:· 2,232,00Q 86 03 0'1 Collection Booths 2,289,278 13,525,000 2,655,711 640,000 86 03 02 Tourist Rest Room 1,000,000 86 03 03 Heritage Clubs Trust Fund 32,000 86 03 04 Heritage Site cleanup Program 86 03 05 Cleaning Equipment 4 site 86 03 06 Eassy & Art Competition 50,000 86 03 07 Motor fare & lunch expenses 86 03 08 Interaction Program 160,000 86 03 09 Documentation Culture Heritage 200,000 86 03 10 Promotion of Culture & Festival 86 03 11 Preparation of FM Program 100,000 86 03 12 FM Program Audio Materials 50,000 8.6 04 00 !nformation.. and Communication Dept . 9,069,439 I····· 5,734,000 , .. .·.. 1,48o,OOO 86 04 01 KMC Home Page 9,069,439 5,734,000 500,000 86 04 02 Repair Maintenance of the Equipments 200,000 86 04 03 Live Programs 30,000 86 04 04 Photo Exhibition 2 nos. 100,000 86 04 05 Meet the Press Programme 3 nos. 150,000 86 04 06 Publication of Mahanagar Bulletin 300,000 86 04 07 Dev. & Preparation of City Profile of Kath. 200,000 ,86.05 00 Public Works Department - ... - . .. 68,336,000 86 05 01 A. Ongoing Projects 2,063,000 86 05 02 B. Committed Projects 3,728,000 86 05 03 C. Project Submitted for Approval 18,445,000 (but no information received about it's decision yet) 86 05 04 New Projects 44,100,000 86 06 .. oo The Urban Governance Initiatives - - .. ·.· 1,876,0!)0 86 06 01 Monitoringof current quality of air, water, soil, etc 205,000 86 06 02 Development of KMC Website 137,000 86 06 03 Establishment of EGO clubs 274,000 CITY DIAGNOSTIC · REPORT ANNEX: 11 KMC Annual Budget 205 7/058 (2000/01) Actual Budgeted for Expenditures Expenditures for 56/57 (99/00) 57158 Account Head 2055/56 (98/99) Budgeted Actual (00/01) Codes 86 06 04 Activities related to Community Mobilization 410,000 86 06 05 Institutional Strengthening with training and follow up 342,000 86 06 06 Dissemination 303,000 86 06 07 Contingency 205,000 '86 07 00 Ka:th Vallely Maping Programme - •.· - .. .,:, 134,795,000 86 07 01 Services/Local Technical Assistance 5,250,000 86 07 02 Services/Evaluation 325,000 86 07 03 Services/Studies 4,500,000 86 07 04 Services Training 5,525,000 86 07 05 Supplies/Equipment 5,330,000 86 07 06 Supplies/Inputs 2,080,000 86 07 07 Supplies/Transportation 13,812,000 86 07 08 Works/Projects 80,925,000 86 07 09 lnformation/Advertizements 390,000 86 07 10 Information/Public Relations 1,365,000 86 07 11 Information/Publications 325,000 86 07 12 Information/Reports 487,000 86 07 13 Operation/Salaries 8,310,000 86 07 14 Operation/Extra Support 264,000 86 07 15 Operation/Repair & Maintenance 780,000 86 07 16 Operation/Office Expenses 4,217,000 86 07 17 Utilities 120,000 86 07 18 Insurances 790,000 86 07 19 Contingency Fund - '86 08 OO··· Urban Dev Department c - I .- ,i. ······ 1,200,000 86 08 01 Urban Planning 400,000 86 08 02 Traffic and Transportation Management - 200,001) 86 08 03 Housing Development 600,001) :!)6 O!;l 00 City Devlopement Strategy .... .. ... - - . • 4,900,000 86 09 01 City Devlopement Strategy 4,900,000 -. - ... 86 10 00 ADB,TA - zo;ooo;ooo 86 10 01 ADBTA 20,000,000 ,86 11 00 Town Development Fu[ld Projects - - - .. ,, - 86 11 01 Town Development Fund Projects 86. 12 00 Town belllopEimeilt 19,484;798 " .•.... - . 39,175,()00 86 12 01 Town Development (Town Level Project~ 904,969 86 12 02 Town Development (Ward Level Project~ 18,579,829 22,000,000 86 12 03 Special Programs (Ward Level Projects) 17,175,000 l Grand Total I 284,722,946 875,585,941 325,184,636 1,054,016,000 .456 Annex 12 BUDGET PREPARATION PROCEDURE: SHOWING ASSISTANCE FROM ADB AND WORLD BANK Task Marga I Fagun I Chaitra I Baisak_ J .Jestha I Ashad I Shrawan Responsibility j Process I Approval Jan I February I - -March T April I May I June I July For Task Participants Revenue I I I 1 Analyses of previous revenues and expenditures Revenue dept. All depts C.E.O 2 Projection of own source revenues Revenue dept Wards C.E.O 3 Projection of grants, donations and loans Revenue dept HMG, donors, C.E.O I TDF and others 4 Determine ward and town level budgets Revenue and All depts and I Board Finance depts wards Expenditure Town Level 1 Discuss and agree development vision for KMC Urban Dev Dept I KMC staff I Council I Elected Reps HMG, NGOs CBOs and the people 2 Determine operational goals in line with vision [' I Urban Dev Dept I KMC staff I Board (Preparation of a simple urban development plan) Elected Reps HMG, NGOs CBOsand the people Urban Dev Dept I KMC Depts I Board ~~ I 1 Consultations at ward level I I Ward offices Kmc Depts I C.E.O. $:··· .· · ·~ with support from NGOs, CBOs c Urban Dev Dept ward residents Z" 2 Identification and prioritisation of ward level projects I I Ward offices Kmc Depts I C.E.O. 0 .• with support from NGOs, CBOs ;~~-/ Urban Dev Dept ward residents _, Consolidated Revenue and Expenditure I ~ 1 Prepare 5 year multi-sector investment programme I Finance & Urban KMC Depts I Board 'z ;!> Dev Depts Ward Offices z .C> 2 Identify priority projects for 1st year (annual dev budget) I Finance & Urban KMC Depts Board and I ·-·I;Tl Dev Depts Ward Offices Council I ' . 1 ---"---'---'---'--'-'---'-----"-- I . *I I Assistance ADB TA 3185 NEP World Bank CDS -.J Both \~' •"!' . ADB Technical Assistance 3185 -NEP ~ ¢:l ANNEX: 13 > z KMC Revenue Expenditures Projection z ,.,., X .. 0 ...,I, =1 w -< _ 1 : t _ _ _ 1992/1993 1993/1994 199411995 1995/1996 1996/1,997 1997/1998 1998/1999 1999/2ooo 1 Q ~-+- ·_=---+-=----+--- ___EXPEfi!DIT_I.I~[:~_ ~-~ Actual 49/50 Actual 50/51 I Actual 51/52 . Actual 52/53 1 Actual 53/54 Actual 54/55 • 1 Actual 55/56 Actual 56/57 )> t- I . ' I I I I -'G) 70 1 00 I 00 . Salanes & Benefits 15,911,640 · 23,996,389 1 25,935,079 · 19,466,722 66,573,574 86,874,208 93,919,113 114,062,390 1 1 z 71loo-J oo To;;;ation;;.IE:;;f;;~~;s-- - ~- r -8s,441,38~-96,541.74D 1 ___ s8,216,016 · , -118.775,11611r31.867,643l-- 83,626,86sl ___ 1o6,7o4,758- 1o9,413~551 0 -------;--- --,-·---~--- --·----·~------·--- ---- - - ---~--- ------- _j__ _ _ _ _ _ _ _ _ _ - ------- 1 ------~-- --------:----- · - - ! ---·--------.--------------------- ,CJ) __8Q [_Clo_+ O_(l_t-;Operat~~nd__Maintenan_c;~of_l_l1fra ____1E,700,_?!3_Z_L_1_79,_32U26\_126,756,603 152,610,145 ____§1,736,6921_ _!?_3,435,279 ~- 66,457,58Q_j. ~ _ 80,5_63,7_3_1__ ::l -~0 i 00 00 1 Capital Expenditure 15,186,232 · 8,648,060 I 12,381,268 37,052,821 : 66,420,998! 40,719,388 • 23,853,757 0 1 1 +~- TOTAL EXPENDITURES 252,240,054 1 308,507,515! 253,288,966 314,138,208 I 438,598,128, 284,722,946 325,184,636 ;u • 1 I m f- --I - - --- -- -- - -T -o 0 ! -+ -- --- ---- 1~--~- ~ ! -- - -- t --~ ~ ~----- REVENUE Actual 54/55 Actual 55/56 ·i Actual - --56/57 -- - - T- --- --~----- -~- 1 9+Q4_~ O_()_lJ-AX INCOME-=----=-=--~ __4_,5Q7,88~-~-=-5,51~,881 __ __ 8,51 0,57] _:_-s,512,836J _!?,687,01_~ -- 17_,246,363 1_(),_329,501+- - 25,493,0~ 91 ' 00 : O~NCOME FROM FEES 9,181 ,653 5,681 ,084 22,469,520 I 18,483,886 _'1§,24"',51§, _ _17,060, 177 j-~ _!Q,984,46()+ - 36,_2~356 92 3,704,819 I 3,900,972 I 4,031 ,351 . 3,662,111 = 3.221.J5_1_8 3,496,480 _l_ ___ 1_,_1~,672 .. -~- ~a~}~~~ 6 ~~:~t~~:tt~~T~ ~ ~·4:~8f-1.6_1l1_.75l I -=- =~552,2-0zj: -== =: 94 00 OQ]SUNDRY INCOME_~ _ __ +- _ _1,063,57i__f_ __1 .~9,7()]_ 2,714,987 6~755,626T 8,947,5~L __ 4,283,456 __2,_5~,_10~ __ _1_4,899,4~_1_ ____ ~13,~44,~_D j-- 214,400,902 247,813,603 ---------- 259,104,696 I 318,260,415 166,005,009 - -1-~ J_] _Q_ClBQI_ ·t -~_()_4,~,_0~1- --· -- --·- TOTAL OWN SOURCE REVENUE I 221,577,659 i 228,466,111 I 251,317,500 I 285,062,431 299,688,620 207,440,626 i 80,276,026 ~roo ~~:GRANT? ANDDQNA:rioN~-= = i-:: :__ -2go-,ooo_]::::_~ __?,6_f)J5,885 ___ 2~12_~§_ 1-:_ __ 135,000 -i .. ~=- 454,97_~~ =- 2 9(),000[= 34,43l,59~--229,234,744- 96 _. 00 . : 00 I INCOME FROM RECEIPTS CONT, . . - j . .. - . . - .. . - i . - 'I . - ! . . - . :~-~ %~--~T.:r~~~~~~~~~~~~~~ B~CK =-~ =-:=~ -: ~== =: +-=:-_2.1_0_B:~3Bj-= 2c!41~~Q1 -_--1,671,~9ti_=3~05,~~4_~=- 1,74l~~5~-=~ -5,810,~6~ . 6:Q:j 00-~0o :t¥oANS_____ ~- ---~ - -- - 1,500,000 ~- ---500,0-00 ---3,401 ,z33~-- 4~96,327 -14,391 ,i4o+- ~4o,14s:3vf -32,1 49,173+- 14,7oo,OOo- -,~ QO j I oo I ~ST_Y_EA~~CL-=: - ~~9-~~~1 _ 3s,6o6,1)91l- 39,64Q}l70 - _ 2sjo7,oi9f- 45423 o;,j - 12 943,7581= _4 007, 18Q 1 1 -~r I GRANo rorAL 367,2so,ss7 1 34s,s77,s67 1 292,684,897 331,175,129 i 344,604,345 451,541,123: 288,719,068 334,028,318 ANNEX: 13 KMC Revenue Expenditure§ Projection -- I ,- - --- - -- ---- - 2000/2001 I 200112002 I 2002/2003 I 2003/2004 I 2004/2005 I 2005/2006 ------1-- _I---j __ __gXPENDITURES_ _ Budgeted 57/58 I Estimate 58/59 Estimate 59/60 I Estimate 60/61 Estimate 61/62 j Estimate 62/63 _!_0 j _(l()__iOO~illariE)!; & B~nefits___ , __ 201 ,690,0~- __1_"7:3,_438,263 _ __1_(l3c716,379 I __ 213,99~,4~ 234,272,612 254,550,72~ 1 1. 71 00 i 00 I Operational Expenses 199,591,000. 160,216,728, 168,856,116 I 177,495,505 , 186,134,893 194,774,282 1 - ~~ .-~~ j~~ ~;~~;:~d~~:~-n~ce~~a __ ~~~~f~~~-= ~}H[~~f-~~~~~ ~!~~:F,~~~~~ -~}~~~~ . ' I TOTAL EXPENDITURES 1,054,016,000 680,592,843 I 738,190,316 I 795,787,790: 853,385,263' 910,982,737 ------- - ~- - --t -- ---I ----- -.-- ------ ---- , -- --- ---, _ -- --- ~-- 1 --- . - --· REVENUE BUI::Igeteds7is8E~ti~ate5st59-- - --- --~,- Esti~at~ 5S/60 j~E~tim~te 60/61-~-Est~-;:te ----- --------I-------- --- ---t!- ----- s1ts2 :Estimate 62/63 --- - Accounting Codes • I I 90. 04 TAX INCOME _j 146,051,000 I 79,745,213' 00,386~20 ~ - 101,027,426'1 111,668,533! 1_23_,309,639 _ 91~L oo IN_GOM~ FROM FEES ~=--- -98,7oo,ooo, -=(33,666,882[_-=_~j1,02_1jl_~8 -78,376,894~, ~~-s5,731,90Q-,-_ L 93,086,907 92 [__()()__ Q_D__INCOME FROM PROPE_FHY- .. _j_ -~76.§_1_()_+ ___ 8,154,-4_~ ! . 8,966,053 L __ - 9,777,13_16 10,_589, 178 I ___ 11,400,741 1 93 _()()_ D_O_IIN~_ME f'_ROM II'J_VEST~_I'JT __ j_ _ _:-___I 371,687 408,B0_5 • __ 445,9~ ___ ~B3,041 520,158 :;:;:: 94 I 00 ~SljNDRY_I_I'JCOME ~- 84,013_,0_()_0' 45,990,984 52,?36,837t' . _58,~B2,6B~j---64,72B,!)41 7oj~~~3j c OCTROI ' - I - - z . : : ---1 - ---- - - --~-------- Q __J=I TOTAL OWN SOURCE REVENUE. 340,440,610: 197,929,256 I 223,019,902 I 248,110,547: 273,201,193 I ~!:lll,~l:J1 ,838 I ~ I r ' I I . J:! j --~loo_f2o GRANTs_A~QgQNAlj{)Ns-~~ ~- -- 431-:D29.39o !___ _ ___ 3_24,78~,695~--. 3G5,9?_3,716,_ _4o7,1-64,I:371 448,3_55,7§8 J ·Z )> 96 I 00 00 . INCOME FROM RECEIPTS CONTR - 'I - - : - I - z () -j_b~_b]_~~~-f~~~~~~~~~l3~CK ___ -_jY,QOO,ooo,_ ~24,340,~9l- -~~~~,0~~-- -31,21~~~: .=~34,659,~76 ~-~~·~8,~3~j m _6() : 00 -~_()_0 ~LOAN_§_ _ ___ _ -· -1- _ t-- 23,169, 1§Q, __2§,3_36,655 j_~,5()_-4_.!19t 29,671 31,839,049 351oo 1 oo I LAST YEARS' BALANCE 1 1 1 I - : -- -1- --~ -~-- --- --- ---- --- -]-- ~- II : - --"- - - - - -~ .j;;. ··Vi 600,919,307 1 672,807,998+= 744,696,689 : 1..0 GRAND TOTAL 818,470,000 529,030,616 816,585,380 I ANNEX 14 Kathmandu Metropolitan City Information and Communication Strategy Goal: Efficiency & Empowerment through Information OBJECTIVE STRATEGY EXPECTED OUTPUTS Effective and 0 Publication of Newsletter 0 Timely accessibility of up-to date Efficient and Magazine in N epa!/ Information KMC's Activities in Local Information English/Nepal Bhasa development. Dissemination. Q MetroFM 0 Greater peoples participation in local Raise public 0 Audio-Visual Program development. Awareness Production 0 Epidemic and natural disaster preparedness Improve 0 Introducing Management 0 Up-to-date infonnation required for planners, Department Information System managers, decision-makers will be available at Efficiency through 0 Introducing Geographic anytime. Systematic Information System 0 Systematic flow of authentic Information Management of 0 Maximum utilization of available Resources. Information 0 Potential for working with the Integrated Information System 0 Efficient and effective planning and management of municipal's properties, services and other resources. Motivate young 0 Urban Reporting 0 Media support to KMC's activities Journalists for Training 0 Sound feed-back mechanism for planning Reporting on 0 Creative writing competition 0 Career development for young Journalists Urban issues on Urban issues 0 Fellowship program on Urban issues Provide 0 Regular press conference 0 Creates an Environment for Interaction information on Field Visits between KMC's authorities and media people regular activities of 0 Helps to propagate information on KMC's KMC to media activities through existing nodes. 0 Prevents miss-information. 0 First-hand experience Access to KMC 0 Introducing Intranet 0 Scholars and Researchers will have easy information System access to Information 0 Conduction Surveys and 0 Partner Agencies will be proviede dial-up Researches connecti-vity to access the the information 0 Ready information on tourist destinations through internet connectivity. Develop an Inter 0 Implementing Internet 0 Exchange information between national and municipalities and Intranet System international municipalities information 0 Publicity of investment opoportunities in System municipalities 0 Sharing of ideas and innov at lOlls MUNICIPAL FINANCE A~~NEX 15 Targets For Improved Financial Management TARGET WHO Will DO WHEN WILL IT IT? BE DONE? Corporate Account is running:- A : Balance sheet of KMC a) Fixed asset register is up-to-date Fixed Assets End of May b) Inventory ofCWJP is up-to-date Committee, Depts. I st week of March c) Statement of bond investment and other deposits is PWD, SWM, Wards End of Feb finalized Finance Dept. d) Statement of inventory of different stores finalized All Dept Finance Dept., End of May e) Advances settled and actual advances determined All other Dept, Mayor, End of May f) Statement of deposit made finalized Secretary g) Statements of prepayments finalized Finance Dept. End of Feb h) List of receivables finalized Finance & other Depts. End of May i) Bank balances reconciled and confirmed Finance & other Depts. j) Employees related liabilities confirmed Finance & other I st week of March k) Statement of borrowings and loans and interest payable Depts., wards End of May finalized Admin Dept. End of Apr I) Deposit refundable and retention money refundable Fin Dept. Fin Dept., End of May finalized KVMP m) List of payables to contractors, suppliers, various Finance Dept., PWD, 2nd week of March institutions, govt. offices etc., finalized UDD & other Depts lst week of March Finance & other Depts. End of May B : Income and Expenditure Statement a) Billing ofiPT and other taxes stared b) Depreciation policy finalized and monthly depreciation ( to be discussed ) To be determined calculated Fixed assets committee End of May c) Monthly Stores consumption report prepared Concerned stores End of May d) Board member honorarium and employees remuneration All Depts, wards·, is booked with in the concerned month Secretary, Mayor End of May e) New advances are timely settled All Depts heads, wards, t) All other expenditure are booked with in the concerned Secretary, Mayor End of May month All Depts, wards, g) Statement and returns are submitted by the departments Secretary, Mayor End of May and wards within the concerned month All Depts, wards, Secretary, Mayor End of May Budget system is Operationalised a) Obtain guidance and prior estimation of resources and Finance, Revenue & means from own revenue, HMG or other sources Other Depts., CPC, Mid of April b) Provide guidance on selection of projects and plans to Secretary, Mayor ward committees Finance, Revenue c) Ward committee submit their projects to KMC with Depts., CPC, Secretary End of Feb classification and priority Ward committees d) Budget is submitted to municipality for approval within Secretary end of Ashad e) Budget is submitted to municipal council for approval Mayor, Secretary End of June with in month of Shrawan f) At completion of each month budgeted income and Finance and Rev. Dept July-Municipal expenditure compared with actual and variance analysed council meeting House numbering unit Collection of local taxes in 3 pilot wards of Urban Dev. Dept. a) House numbering training House numbering unit January 2000 b) Establish unit in Urban Development Department House numbering unit January 2000 c) Collect tleld data Revenue Department January March 2000 d) Enter data into computerised database Tax Assessment Com March to June 2000 e) Prepare manuals for above Revenue Department Ongoing f) Determine rates for unified property tax (billing) Revenue Department June 2000 g) Start collection House numbering unit July 2000 and Ward Offices Collection of business and vehicle taxes Revenue Department Task ongoing Tax awareness campaigns and Ward Offices a) House numbering January 2000 b) Tax asse5sment and payment June 2000 461 ANNEX: 16 Revised Targets for Improved financial Management TARGET WHO WILL DO IT? WHEN Will IT PROGRESS (Up to the 31st of july 2000) REVISED TARGET BE DONE? :0 Corporate Account is running: :::j A : Balance sheet of KMC .';"{ a) Fixed asset register is up-to-date Fixed Assets Committee, Depts. End of May LATE: ON PROGRESS End of August 0 The valuation team is still working 5> G) b) Inventory of CWIP is up-to-date PWD, SWM, Wards End of Feb LATE: AUDIT AWAITED End of October PWD completed the listing, but as the audit has not been done, the a(/) -1 amount still appears as memoranda advance. Appointment of final 0 auditor is expected in the forthcoming Municipal Council meeting on 6th of August and audit may be completed by end of October ;o m c) Statement of bond investment and Finance Dept. End of Feb Not Applicable ·-~ other deposits is finalized .;;o -1 d) Statement of inventory of different All Dept End of May LATE: ON PROGRESS End of August stores finalized Inventory report (closing stock with values) receive from General Stores and Public Health Stores for the period up to Chatira.2056 The Mechanical Section is also working e) Advances settled and actual Finance Dept., All other EndofMay LATE: End of September advances determined Dept, Mayor, Secretary The Finance Dept has issued a letter to staff concerning the settlement of advances but not all staff have responded. No progress in the case of advances to wards, departments and others. f) Statement of deposit made finaiized Finance Dept. End of Feb COIVfPLETE: g) Statements of prepayments finalized Finance & other Depts. End of May LATE: ON PROGRESS End of August Insurance pre-payment has to be checked. h) List of receivables finalized Finance & other Depts. End of May LATE: End of August Rental data is complete but basic data regarding revenues is not available i) Bank balances reconciled and Finance & other Depts., End of May LATE: End of September confirmed wards Expenditure accounts is complete up to Chaitra 2056. Income account is complete up to Falgun 2056, but bank balance of wards are not confirmed. j) Employees related liabilities Admin Dept. End of May LATE: ON PROGRESS End of August confirn1ed Fin Dept. -. . . T" A'T'T' ,r-.,-.,.y-r.,-r.,,......I'IT"'o.--.r.n ~ c • I Fin Dept., KVMP I End of Feb ' y pay pay to ADB is not confirmed. I --- - - -- -~ T:\!J!r'!:T u;wr. \Alii i ,,.-,iT# ! \1\iil-H::I\..1 \i\/11 i IT VI VI~ U !LI 'l3 W'l/ U._L Ill U i flln i-n tho 1!1SI nf ft.,!., 'lllflllillll\ i 1:1!:\/il;:l=n ll'fldl..V IIUJL!I...P Tl\.ijl{"'i=T 111'11!.111l!."-JJR.. ~ I ir\.11'\.'-...JLI PJVJ 6 I'LP WW IiLII.. li!...J''-' !I Y ; Iii U't.'LP''.....U'tdi.....;IIJI j~Jlll., .4-VlUIVJ I i)l)f"'\{"'1)1!=~(;; \'LIP ll.V IUIII~ .._p M V~ BE DONE? I) Deposit refundable and retention Finance Dept., PWD, UDD End of Feb LATE: ON PROGRESS End of August money refundable finalized & other Depts Deposit refundable is complete, but retention money is awaited from PWD. m) List of payables to contractors, Finance & other Depts. End of May LATE: ON PROGRESS End of August suppliers, various institutions, govt. List of payable id under preparation by Stores and Other Departments. offices etc., finalized B : Income and Expenditure Statement a) Billing ofiPT and other taxes stared ( to be discussed ) To be determined b) Depreciation policy finalized and Fixed assets committee End of May LATE: ON PROGRESS End of September monthly depreciation calculated Delayed due to late completion of fixed assets register c) Monthly Stores consumption report Concerned stores End of May LATE: ON PROGRESS End of August prepared Report prepared up to the end ofChaitra (excluding the mechanical section) d) Board member honorarium and All Depts, wards, Secretary, End of May LATE: End of August employees remuneration is booked Mayor To be started with in the concerned month e) New advances are timely settled All Depts heads, wards, End of May LATE: End of August Secretary, Mayor To be started f) All other expenditure are booked All Depts, wards, Secretary, End of May LATE: ON PROGRESS End of August with in the concerned month Mayor Some Progress g) Statement and returns are submitted All Depts, wards, Secretary, End of May LATE: ON PROGRESS End of August by the departments and wards within Mayor To be started $; the concerned month c z Q .;g - r-• Source: Final Interim Report, PP 13-14, ISKMC, ADBTA 3185-NEP, July 27, 2000 , Z• )> z 0. m .!:>. .C"' w, ANNEX 17 Total Staff and Approved Positions in the KMC level Approved Existing Balance Officer level II 13 8 5 Officer level Ill 66 48 18 Office Assistant I 212 226 -14 Office Assistant II 298 281 17 Office Assistant Ill 97 146 -49 Office Assistant IV 0 15 -15 Peon or Equivalent (classless) 1480 1751 -271 Total 2,166 2,475 -309 Source: KMC Administration Dept. ANNEX 18 Total Staff and Approved Positions in the Finance Department of KMC level Approved Existing Balance Officer Level II 1 1 0 Officer level ill 5 3 2 Office Assistant I 10 9 1 Office Assistant II 7 4 3 Office Assistant Ill 0 0 0 Office Assistant IV 0 0 0 Peon or Eguivalent (classless) 6 4 2 Total 29 21 8 Source: K:\IC .\dministration Dept. ANNEX: 19 Total Staff and Approved Positions in the Revenue Department of KMC level Approved Existing Balance Officer Level II 1 1 0 Officer level Ill 7 4 3 Office Assistant I 25 10 15 Office Assistant II 31 11 20 Office Assistant Ill 0 4 -4 Office Assistant IV 0 0 0 Peon or Equivalent (classless) 9 9 0 Total 73 39 34 Sotirce: K!\IC Admini.strntion Dept. 464. MUNICIPAL FINANCE ANNEX: 20 Total Account Staff and Approved Positions in Other Departments of KMC S# Department level Proposed Existing Balance 1. Social Welfare Office Assistant 1 1 0 2. Culture & heritage Office Assistant 0 3. Urban Development Office Assistant 0 1 Office Assistant 0 4. Public Works Office Assistant 0 5. Environment Office Assistant 1 0 Office Assistant 3 3 0 6. Public Health Office Assistant 0 7. Audit Unit Officer level Ill 0 1 Office Assistant I 1 0 Office Assistant II 2 1 Total 14 10 4 Source: IU\fC Administration Dept. .I:>' ANNEX: 21 (a) > m' ~· z z 1""1"'1 Stakeholder Analysis - Municipal Finance X 'o ... ·~ N .....I. Stakeholder Communication Communication Importance Demands of Goals of Strengths of Weaknessess 0 from KMC from of stakeholder stakeholder stakeholder of stakeholder )> Stakeholder Stakeholder ~ - ' G.l z 1. TaxQayers 0 Notice, Tax Invoice Payment, complain, a) Ease in other related a) pay minimum tax Organized business willingness to {f) .. business * ** ** -1 community suggestions issues after paying and fees to avoid communities are ready pay is weaker taxes untoward to assist KMC in its than ability to 0. . professionals b) transparency situations. effort of revenue pay ;;o c) comfort in paying taxes b) pay tax and fees as collection. m d) prompt service imposed -a 0 c) avoid tax and fees ;o if possible -1 • vehicle owners Notice, Tax Invoice Payment, complain, * **** a) comfort in paying taxes pay minimum tax and owns KMC money, tend to forget suggestions b) prompt service fees to avoid untoward more tax and fees about paying situations. taxes • house and land Notice, Tax Invoice Payment, complain, * ** * * a) Ease in other related stay out of trouble willingness to owners suggestions issues after paying related to house and pay is weaker taxes land than ability to b) transparency pay c) comfort in paying taxes • service users and Notice, Tax Invoice Payment, complain, ***** adequate municipal services clean and healthy city general public suggestions prompt services 2. Investors .. Private Sector Notice, Invitation in Complain, suggestions, * ** * * Less competition make profit by a) Resources a) Excessive different forums, participation, meetings exploiting the b) Effective and profit meetings opportunity to invest in Efficient oriented the city's infrasturcture Management b) Reliability is and services Capability questionnable c) I I I I ANNEX: 21 (a) Stakeholder Communication Communication from importance Demands of Goals of Strengths of \1\ieaknessess from KMC Stakeholder of stakeholder stakeholder stakeholder of stakeholder Stakeholder . Bank & Financial Request for loan, Letters, meetings **** Less competition Earn interest through a) Resources loan sanctioning Institntions Meetings investment in the b) Effective and process might be infrasturcture of the Efficient tedious and time city Management taking. Capability ® Donors Request for Letters, meetings, visits Support to needy Test their idea Publicity e Development some ideas may **** assistancem investment not be meetings appropriate to local context. 3. Government • Ministry of Local Annual Reports, Legislation, directives, **** Timely reports a) Effective urban . New Act, rules & Intention is Development situational reports, meetings, local Employment management regulations doubtful (MLD) letters, meetings development fee advice b) Publicity Resources " . Authority I Liase with other " line agencies I 0 Ministry of Pop. Letters, meetings Reports, Environment Cooperation in enforcing Environment friendly Fund for *** • & Env. (MOPE) standards, meetings environment standards city environment I improvement I program c Ministry of Letters, meetings Reports, meetings s: c *** Physical Planning I z • Kathmandu Q Valley ::0 .)> Development r-. I II Council z )> 4. Partner Agencies z . NGOs Letters, meetings, Letters, meetings, . Resource~ e Social Service @ Resource . performance 0 *** m CBOs Invitation to suggestions Publicity Community generation through capacity is " 0 participate in " " not clear. INGOs Opportunity to work Upliftment their contacts functions " . Local people ® tendency I .. Support to needy mobilization toward more e Enhance image of resources and "" 'I "'·· --· ··--------·-··- - KMC -- _publici1L.__ ;~ ANNEX: 21 (a) ··Q:l Stakeholder Communication Communication Importance Demands of Goals of Strengths of Weaknessess 0 from KMC from of stakeholder stakeholder stakeholder of Stakeholder Stakeholder stakeholder ~ Bilateral/ Letters, meetings, Letters, meetings, Visits Support to needy " 0 • *** • );·· multilateral Proposals 8 Test their idea Resource and G) development Technology transfer z. agencies (/) .. 0 ::1 5. Political () reQresentatives local and national Letters, meetings, Letters, meetings, political benefits, publicity serve people Lead the community create obstacles ::0 • * ** m leaders Invitation to suggestions Complete participation to fulfill their \J participate in political goals 0 functions ::0 -:! 6. Other Letters, meetings, Letters, meetings * ** co-operation betterment of own municiQalities Invitation to municipality through participate in co-operation ofKMC functions 7. Urban QOOr and Meetings complain demonstration *** Pro-poor approach from Housing and other support to KMC disadvantaged/ KMC welfare schemes from activities vulnerable KMC g_rol!l! 8. KMC letters, instructions, letters, meetings, **** •!• Clear instructions ·:· Get promotion is crucial for can be emQio:~:ees job descriptions reports Money •!• Good salary, development ofKMC influenced ·=· benefits and lacks working development conditions opportunities •!• Enjoy Work (QWL) 9. Training & letters, meeting letters, meetings ** Profit or service could help HRD efforts DeveloQment ofKMC Institutions MUNICIPAlFINAf\tCE AI'JNEX 21 (B) focused Group of Stakeholders for Municipal finance S.# STAKEHOlDER ORGANIZATION PERSON(S) 1. Tax Pa ers Business Community Nepal Chamber of Commerce Mr. Surendra Bir Malakar, Vice President Mr. Gyanendra Tuladhar, Member Secretary Professionals Urban Finance Expert- Nepal Urban Mr. Pratap P. Pradhan, Sector Strategy Study Chartered Accountant Municipal Finance Expert- ADB TA Mr. Vinod C. Baral, ISKMC Chartered Accountant House & Land Owner Service Users 2. Investors Private Sector FNCCI, Urban Dev. Committee Mr. Harka Chhetry, Bank & Financial Institution Town Development Fund (TDF) Acting Director Karmachari Sanchaya Kosh Donors ADB Mr. K. R. Pandey 3. Government Ministry of Local Development Mr. Achhyut Koirala, Ministry of Local Development Under Secretary Local Government Mr. Sadhu Ram Sapkota, Finance Commission Under Secretary " Mr. Khem Raj Nepal, Ministry of Physical Planning Joint Secretary VAT Office Mr. Yadav Chapagain, Consultant Mr. Surya Bhakta Sangachhe Dr. Roop Khadaka, Tax Specialist 4. Partner Agencies NGOs/CBOs/INGOs NGO Federation Mr. Gauri Pradhan, President Bilateral/multi 1a teral Udle/gtz (fima component) Mr. Ram Chhetry, Chief development agencies US AID Ms. Sharada Jnawali, Program Specialist 5. Political representatives fromMuAN Mr. Surendra Pathak, Executive Secretary 6. Other municipalities Dhulikhel Municipality Mayor or (Mr. Ashok Byanju, Deputy Mayor) 7. Training and Nepal Administrative Staff College Dr. Surya P. Shrestha, Development institutions Senior Director of Studies Mr. Ramesh B. Shrestha, 4()9 CITY DIAGNOSTIC REPORT END NOTES: 1. Local Self-Governance Act, 2055 ( 1999), Part 3 -Chapter 4 - Section 96: Functions, Duties and Power of Municipality, His Majesty's Government, Ministry of Law and Justice, Law Books Management Board, 1999, pp 78-89. 2. The Ninth Plan (1998-2002), Section 8.2 and 8.4, HMO, National Planning Commission, 1998. 3. GTZ/UDLE, "Detailed Revenue and Expenditure Breakdown and Basic Financial Information of 58 Municipalities of Nepal (FY 1995/96- 1998/99)", HMO, Ministry of Local Development, Municipal Management Section, 2000, p. 165. 4. Institutional Strengthening of KMC, ADB TA 3185 NEP, Working Paper No. B4- New Budget Formulation Procedure, May 2000. 5. Institutional Strengthening of KMC, ADB TA 3185NEP, Working Paper No. B5- Formats for Expenditure Budgeting, May 2000. 6. Kopp, John Christopher "Private Capital for Public Works: Designing the Next Generation Franchise for Public-Private Partnerships in Transportation Infrastructure", Master's Thesis submitted to the Department of Civil Engineering, Northwestern University, May 1, 1997. Online, Internet, Available http://iti.acns.nwu.edu/clear/infr!kopp/index.html 7. Kathmandu Metropolitan City, Budget for Fiscal Year2055/56 (1998/99), KMC, 1998, p. 55. 8. Naresh P. Shrestha, KMC Corporate Accounting System, Status Report, Oct. 12, 1999, pp. 1-2. 9. R.M. Kapoor, Urban Governance in Bangladesh, India, Nepal & Sri Lanka, Regional workshop on Decentralization for Efficient Urban Management, RUDO/USAID, July 25-27, 1999, pp. 6-7, 10. Local Government Finance Commission, A Study of Tax Revenue, Grants, Revenue Sharing and Accounting System of Local bodies: Problems, Challenges and Area of Improvements, HMO, Ministry of Local Development, 2000. 11. Institutional Strengthening of KMC, ADB TA 3185NEP, Working Paper No. B6- Revenue Forecast for Financial Year 2057/58 (2000/01), June 2000. 12. Kathmandu Metropolitan City, Budget for Fiscal Year 2057/58 (2000/01), KMC, Aug 6, 2000, p. rev. 3. 13. Institutional Strengthening of KMC, ADB TA 3185NEP, Proceedings of Budget Formulation Workshop, March 2000, p. 19-20. 14. Michael Schaeffer, Municipal Budgeting, The World Bank, Washington D.C., April 2000, p 20. 15. Institutional Strengthening of KMC, ADB 1A 3185NEP, Final Interim Report, July 27, 2000, p. 34-35. 16. Local Self-Governance Act, 2055 ( 1999), Part 3 - Chapter 8 - Section 136.1: Land Revenue and House and Land Tax, His Majesty's Government, Ministry of Law and Justice, Law Books Management Board, 1999, p 113. 17. ibid., Section 142, p. 113. 18. ibid., Section 138, p. 113. 19. Dr. Jigbar Joshi, Investment Planning & Financing of Urban Infrastructure in Kathmandu Valley, Regional workshop on Financial Management of Urban Local Governments of Asia Pacific Region, Citynet, Aug 31-Sept 3, 1999, p 127. MUNICIPAL BIBLIOGRAPHY 1. Report on Organizational and Management Improvement Program, Kathmandu Municipality, August 1993. 2. Nepal Urban Sector Strategy, Background Paper IV, Urban Finance. 3. Shrestha, Naresh P., The Rising Nepal; Urban Management: Challenges Exists; March 26, 2000. 4. WS Atkins International Ltd. eta!, ADB TA 1905 NEP Improved Resource Mobilization for Kathmandu Metropolitan City- Final Report; May 1997. 5. Mathur. 0. P., Municipal Finances in Developing Economies of Asia; September 1999. 6. Kathmandu Metropolitan City, Budget Documents of Various Fiscal Years. 7. Institutional Strengthening ofKMC, ADB TA 3185NEP, Working Paper No. 82-Draft: Taxes and Taxation Performance, March 2000. 8. Kathmandu Urban Development Project, Project Management Unit, Consultancy Services, Kathmandu Metropolitan City, Formulation ofBudgets, October 1996. 9. White Paper on Local Government, Section G: Municipal Finance, Online, Internet, Available http://www. polity.org.za/govdocs/white_papers/ localgov/wp 7.htm 471. QffY .,I;JIAGN,OSTJG.. REPORT 472