Nepal

GOAL 7: ENSURE ENVIRONMENTAL SUSTAINABILITY

TARGET 9: Integrate the principles of sustainable development into country policies and programmes and reverse loss of environmental resources

Sources:      a MFSC 1988 (From aerial survey in 1978). b MFSC 1994. c DNPWC 2005.

                                                                   d MOF 2003/2004 and WECS 2003/2004. e CBS 1996 and 2004. NA=not available.

FORESTS AND BIODIVERSITY

STATUS AND TRENDS

In Nepal, 29 percent of the total land area is covered by forest and 10.6 percent by shrubs (MFSC 1994). Since the shrubs have the potential to turn into forest areas, the total area under forests is 39.6 percent. The Forest Master Plan (1988) which was based on the 1978 data showed 42 percent (37 percent forest and 5 percent shrubs) of the total land covered by forest areas. The 1994 survey however, revealed that the country saw a decline in forest area, compared to that in 1978 (MFSC 1988).

Over the past few decades, community-based forest resource management (CBFRM) regimes whereby local and indigenous people are actively involved in forest, land, and water resource management have shown good results in maintaining forest cover and biodiversity richness, and experience with pioneering instruments such as participatory community-based forest management has been regionally acknowledged.

These participatory management regimes are intended to directly or indirectly address the overarching national goals of poverty reduction and sustainable development. For example, leasehold forestry regimes are believed to be in the front line in the alleviation of poverty and in restoring degraded land, while community forestry has also helped enhance forest quality and coverage. Over the years, the number of community forest user groups (CFUGs) involved in forest management has increased (Figure 7.1). Recently however, the trend has declined because the majority of the accessible forests in the hill and mountain areas have been handed over and the government has restricted the handover of large blocks of forest in the Terai. Several studies have indicated positive impacts of community forestry, such as an increase in biomass and plant abundance, and decrease in the number of open patches inside the forests.

FIGURE 7.1: Pattern of handing over of community forests to FUGs

Altogether, there are 19,961 CFUGS involved in managing community forests throughout the country. Similarly, 2378 leasehold forest groups are managing 9000 hectare of forestlands (DoF 2005 estimate). Among the NGOs, the FECOFUN has been playing a key role in forest management and development. Different community groups involved in community forestry, leasehold forestry, buffer zones management programmes, and collaborative forest management are managing about 30 percent of the country's total forest area and are moving towards self-reliance (MFSC 2005).

A watershed management programme is also contributing to an increase in agricultural productivity through water, soil, and forest conservation initiatives. Buffer zone management programmes have made explicit efforts to link local livelihood needs with conservation needs in and around protected areas through participatory measures to enhance people's economic opportunities and reduce pressure in core areas. The current challenge is to ensure the traditional rights of indigenous, poor, and socially disadvantaged groups over natural resources in the buffer zones and protected areas of Nepal.

Given the fragile physiography of the country and the fact that the majority of the people live in rural mountainous areas, the poverty-environment-health and vulnerability nexus is very strong. The different community management regimes described above have resulted in strengthened environmental governance and livelihood enhancement through benefit sharing incentives along with enhanced access to resources. Many rural families depend on ecotourism and on the trading of non-timber forest products (NTFPs). Medicinal and aromatic plants (MAPS) provide a source of income, medicines for primary health care, and revenue for the national treasury.

Biodiversity conservation contains area of critical importance for Nepal's environment, because, it possesses a large diversity of flora and fauna, at genetic, species, and ecosystems levels (MFSC 2002). This is due to the climatic diversity in the vertical world of the Himalayas.

The area under protection in order to maintain biological diversity has increased from 10,948 sq. km in 1990 to 28,585.7 sq. km in 2004. This comprises about 19.4 percent of the country's total area, and represents all ecological zones. The protected area system includes 9 national parks (36 percent of the total protected areas), 3 wildlife reserves, 3 conservation areas, 9 buffer zones, and one hunting reserve (MFSC 2002). Due to their outstanding ecosystem and landscapes, two of Nepal's National Parks are listed as World Natural Heritage sites. Similarly, four sites are designated as Ramsar sites.

Wetlands have been recognised as one of the Nepal's most important ecosystems and are important in terms of their ecological, cultural, and economic value. Nepal contains different types of wetlands but the largest coverage is by river systems (53 percent) followed by paddy fields (43.6 percent) (MFSC 2002). These ecosystems harbour 25 percent of Nepal's biodiversity. About 172 species of the major wetland plants are listed (IUCN 1995). Out of 860 birds species found in Nepal, 193 are known to be dependent on the wetlands (Bhandari 1998). Globally significant wetland sites such as the Koshi Tappu Wildlife Reserve, Ghoda Ghodi Tal, Jagdishpur Reservoir, and Bish Hazari Tal are conserved and protected as per the specification of Ramsar sites.

Nepal has a high degree of agricultural biodiversity (crop and animal genetic resources) that is largely associated with the hills and mountains, where variation in factors such as topography, slope, aspect, and altitude allow for an enormous range of biological environment, climatic regimes, and varied ecosystems. For example, out of more than 500 species of plans that are edible, 200 are cultivated species (MFSC 2002).

SUPPORTIVE ENVIRONMENT

Nepal has a variety of enabling policies and the institutional environment to ensure environmental sustainability, which is supported by external development partners as well as NGOs. Furthermore, as explained above, various CBFRM regimes have made significant contributions to enhancing environmental sustainability as well as poverty reduction.

The Master Plan for the Forestry Sector (MPFS) provides a twenty-one-year policy and planning framework for the forestry sector. The Nepal Biodiversity Strategy (NBS 2002), reflects the national commitment to adopt a more cohesive, strategic, and comprehensive approach to conserving biodiversity and for the wise use of biological resources. Among the six priority programmes under the NBS are national forests, protected areas, wetlands, agro-biodiversity, rangelands, and mountain biodiversity. In line with the NBS vision, a landscape-based approach for biodiversity conservation is articulated in the PRSP (2002-2007) to ensure coherence between productive and protected landscapes. The SDAN (2003) provides a national vision for integrating the environment dimension in the overall national planning framework. Several regulatory and policy updates include the National Ecotourism Strategy (2004); the Buffer Zone Regulations and Guidelines - updated (2004); legislation drafted to permit the farming of common wildlife species, e.g. wild pigs, deer, and elephants (2004); the National Wetland Policy (2003); and the Herbs and NTFP Development Policy (2004).

Some specific outputs related to in-situ conservation achieved in the recent past are as follows:

      A National Register of plant species has been established in the Department of Plant Resources of MFSC.

      Biodiversity 'hot-spots' such as Badimalika, Phulchowki, Barandabhar and Tinjure-Milke-Jaljale forests with rich genetic resources are legally protected and managed or are recognised for conservation.

      A National Register of medicinal and aromatic plants (MAPS) was updated in 2004.

      A Central Biodiversity Information (database) and Monitoring Centre was established at the Department of National Parks and Wildlife Conservation.

Under the agro-biodiversity policy, in-situ and ex-situ conservation strategies are being adopted by the National Seed Board of Nepal, the Nepal Agricultural Research Council (NARC), and District Agriculture Offices (DAO). Furthermore, a national database and inventory for indigenous livestock has also been set up in NARC, along with a conservation action plan. MFSC, with support from development partners, has been preparing a Churia Area Programme Strategy (CAPS) which is expected to contribute to the conservation of the fragile Churia environment.

CHALLENGES

Despite the innovations on the policy and regulation front, which includes salient strategies such as the SDAN and the NBS (2002), progress in their implementation is poor as the mechanisms and capacities to translate these strategies into actions are lacking. Without a due assessment of institutional capacities and sectoral buy-in to translate policies into action, results will remain weak. Since achieving environment outcomes requires other non-environment related ministries to have the appropriate polices, capacities, and regulations in place, this sort of inter-sectoral mainstreaming is an aspect that requires stronger impetus.

Further challenges include conflicting provisions between various policies and acts. For example, the Forestry Sector Policy (2000) mentions the Collaborative Forest Management Strategy for managing the forest block of the Terai and the Inner Terai. The Forest Act, on the other hand, contradictorily stipulates that all national forests can be handed over to the FUGs. Although the LSGA has provided ownership and authority over the forests in and around the local bodies, it contains conflicting provisions, with altogether 23 Acts including Forest, Environment, and National Park and Wildlife Conservation Acts.

Institutional bottlenecks such as centralised decision making, the duplication of responsibilities, fragmented responsibilities, and the lack of an integrated framework for coordination among responsible agencies are notable. Similarly, equity in benefits sharing and lack of inclusion in community management regimes of particularly deprived ethnic communities are other key challenges.

While the primary aim of community forestry in terms of maintenance of forest cover has been by and large achieved, there are second generation issues such as good governance, livelihood strengthening, and equity aspects which need to be strengthened. The Tenth Plan advocates on these issues, in terms of redirecting the focus of the community forestry programme and setting up mechanisms for fair and equitable benefit sharing of genetic resources. The current challenge of the area is to reorient attention to livelihood promotion, good governance, and sustainable forest management.

Similarly, policies related to national parks and conservation areas have to tackle commercial interests in protected areas and buffer zones. This underlines the belief that appropriate policies and robust institutions to include local participation are necessary to affect conservation outcomes. Furthermore, having a mechanism for trans-boundary partnership to encompass ecosystem management and species conservation has long-term significance.

Rapid demographic changes and weak land planning have resulted in habitat loss. Political instability and insurgency has affected programming and planning for conservation activities, while the lack of clear scientific data on the impact of the decade long conflict on natural resources makes future planning difficult. In the absence of locally-elected structures, and in the presence of fragmented institutions, maintaining the momentum of community-led regimes for resource management remains a challenge due to issues of security and access.

ENERGY

STATUS AND TRENDS

After the initial decline during the first half of the 1990s, energy use per unit of GDP has slightly increased in the past few years to about 30 TOE per million rupees and the commercial energy component has increased steadily to about 3.64 TOE per million rupees of GDP (MOF 2004). Around 40 percent of the population has access to electricity (CBS 2001) but the gap between urban access (87 percent) and rural access (27 percent) is very large (CBS 2004). Moreover, the Nepalese are the lowest per capita electricity users in South Asia (around 70 kilowatt-hours per year).

The energy consumption in Nepal is still dominated by traditional energy which makes up 87 percent of the total energy consumption in 2004. Moreover, fuel wood accounts for almost 90 percent of the total traditional energy of 7,397 TOE. Agricultural waste and dung are the other types of traditional fuel being used in Nepal. The use of commercial energy is also increasing rapidly, particularly petroleum products at 769 TOE, and electricity at 139 TOE (MOF 2004). The proportion of households using wood as their main source of cooking fuel has increased slightly from 67.8 percent in 1995 to 69.1 percent in 2003, whereas the proportion of people using cow dung and other resources such as straw as a source of fuel has decreased from 25.8 percent to 15.7 percent during the same period. While the proportion of people using liquid petroleum gas (LPG) saw a big jump from 0.99 percent in 1995 to 8.2 percent in 2004, the use of kerosene remains almost unchanged (CBS, 1996 and 2004).

There is an urgent need to change the energy consumption profile of Nepal, as the majority of the population still depends heavily on fuel wood. This represents a major challenge to environmental sustainability, because the fuel wood is mostly extracted from forests, causing deforestation, landslides, and erosion. The consumption of cleaner fuels, which stands at a very low level at present, needs to be increased substantially.

In Nepal, much emphasis has been placed on promoting alternative energy, especially since the early 1990s. With respect to ensuring environmental sustainability, the renewable energy initiatives have been contributing in three primary ways.

Firstly, renewable energy such as biogas and improved cooking stoves (ICS) reduces or reverses the forest depletion process. For example, it is estimated that ICS can reduce fuel wood consumption in the range of 25 percent to 40 percent (AEPC 2004). Secondly, the availability of power in the rural areas opens up a host of new income and employment opportunities through micro, small, and medium enterprises which divert or limit people who otherwise would have been expanding cultivation on marginal land or would continue selling fuel wood to earn their livelihoods. Thirdly, the renewable energies have been facilitating information and communication technologies.

Various types of renewable energy technologies have seen a steady expansion over the years. By the end of 2004, there were about 1500 pico- and micro-hydro electrification plants serving approximately 80,000 households; over 800 turbine mills, serving thousands of rural households (AEPC/CADEC 2004); more than 123,000 biogas plants installed in 66 districts with more than 860,000 beneficiaries (BSP Nepal 2005); over 150,000 ICS built with even growing demand; and approximately 2000 improved water mills installed. The trend from 2001 to 2004 in the use of these different technologies indicates a sharp rise in the number of installations of ICS, but a gentle decline in the others - micro-hydro plants, solar home systems, and biogas technology.

SUPPORTING ENVIRONMENT

The combination of grid-based and off-grid decentralised options, including both electricity and non-electricity technologies, has resulted in significantly enhanced access to modern sources of energy for rural people.

The breakthrough for the promotion of renewable energy came with the Electricity Act (1992) which created an environment conducive to community and private sector participation in hydropower development. The Ninth Plan (1997-2002) put emphasis on these new energy technologies, which was further enhanced by the 2001 Renewable Energy Subsidy Policy which introduced subsidies for the construction and rehabilitation of micro-hydropower, solar power, improved water mills, and biogas schemes. The Tenth Plan has given top priority to the renewal energy sub-sector. It has targeted to provide electricity to 12 percent of the rural population from the alternative energy sources.

Currently, a new Rural Energy Policy is being prepared. Its key objectives are the enhanced participation of communities and the private sector in rural energy development as well as the promotion of modern energy technologies in place of traditional biomass and fossil fuels.

Various multilateral and bilateral development agencies as well as NGOs have been supporting the government's efforts in this sector, with a particular emphasis on renewable energy sector in Nepal. Since 2000, under the leadership of the Alternative Energy Promotion Centre (AEPC) established under the Ministry of Environment, Science and Technology, various projects, programmes and fund/subsidy flow have been streamlined.

Ensuring sustainable development of renewable energy services

The key challenges in this area are as follows:

      Continuity in commitment by the government and external partners to the sector will determine the sustainability of the programmes, as the financial resources required for the installation of alternative energy systems have been identified to be in the range of 2.3 billion rupees per annum.

      policy and implementation gaps in the harmonisation of off- and on-grid rural electrification programmes;

      negative impact of the ongoing conflict on the new installation as well as the operation of installed systems in some cases; and

      constraint on high quality installation and repair and maintenance of renewable energy technologies by insufficient availability of skilled human resources.

CHALLENGES

Despite some notable achievements in providing access to modern energy services to Nepal's rural population, the sector still faces major challenges. On top of the problems such as leakage of electricity which is estimated to be more than 20 percent and loss of energy and poor cost recovery, the three key challenges to the energy sector in the country are the following.

Limited access to renewable energy services of the poor, and particularly in remote areas

Major challenges that have hindered access are:

     low affordability and lack of a financial support system for the poor - capital intensive technologies like biogas and solar PV have mainly reached the rural middle class;

     lack of access to information about benefits and policies;

     lack of adequate technical /managerial support; and

     lack of awareness among the general public about the negative health impacts of indoor air pollution and other environmental and social impacts of continued use of conventional energy.

Productive end use of renewable energy in rural areas

The key challenges include:

      small local market, viz. low purchasing power of local people to consume the goods produced using alternative energy;

      inadequate transportation facility for movement of goods;

      lack of access to information about the production technology to utilise local energy resources and market information;

      lack of adequate financial support systems; and

      lack of managerial, technical, and financial skills/ ex

TARGET 10: Halve, by 2015, the proportion of people without sustainable access to safe drinking water

Sources: a Nepal Family Health Survey 1991. b CBS 1996. c MoH, NDHS 2001. d CBS 2003/04.

               e Nepal State of Sanitation Report (Colombo Resolution 1990)

STATUS AND TRENDS

While the MDG target aims to increase "sustainable access to safe drinking water," this is difficult to assess, due to wide variations and definitions in water supply. The available data was derived from various surveys which used different criteria. If 'access to drinking water' is examined, Nepal has been making a rapid progress in this area, as presently 81 percent of the total population has access to improved water sources, compared to only 46 percent in 1990.

Given the importance of adequate water supply and sanitation, there has been significant progress in a relatively short space of time. During the Water Supply and Sanitation Decade (1981-1990), for example, the population with access to a protected water source rose to 36.7 percent. However, according to a recent survey, out of the 5000 water points in 22 hill districts, only 21 percent are functioning as designed, 56 percent require major repair, and 21 percent need complete rehabilitation (DWSS/WAN 2003). This suggests the dimension of the problems of the water supply system and warrants scrutiny.

Overall, sanitation coverage increased substantially from 6 percent in 1990. The NLSS 2003/ 04, the most recent survey data available, found that the percentage of households with access to toilets was 39 percent. With all the sectoral players participating, National Sanitation Week alone prompted the construction of 60,000 toilets within a short period (DWSS 2004).

However, it must be noted that significant disparities exist in access to water and sanitation, in spite of the rapid expansion of the last fifteen years. In Nepal, the richest quintile is 13 times more likely to have piped water in their homes than the poorest quintile (39 percent vs. 3 percent), and are nearly eight times more likely to have improved sanitation (79 percent vs. 10 percent) (UNICEF 2005, based on NLSS 2003/04). In addition, there is a considerable degree of geographical disparity, as shown in Map 7.1. It should also be noted that in Nepal, especially in urban areas, having access to improved water sources does not mean that water is always available in sufficient quantity, as many households do not receive a regular supply, particularly during the dry season (UNICEF 2005). The reliability and service level elements of water access need to be carefully assessed.

Over the years, the gap between the urban and rural areas has been narrowed in terms of access to water and sanitation coverage. For water supply, the rural coverage has been showing steady progress and reaching the Target is likely. On the other hand, progress in urban areas has stagnated, due to the rapid population increase in urban centres and the inability of the urban system to keep up with growing demand. For sanitation coverage, most households in urban areas have toilets, and progress has been on track. In rural areas, coverage is still low and accelerated efforts are needed to meet the MDG target.

As for water quality, the national standards for assessing water supply, including its safety and sustainability, have now been introduced. By these standards, 5 percent of the population currently has access to a high-quality water supply, 20 percent to a good quality water supply, with 75 percent relying on a basic-quality one (DWSS 1997). Nevertheless, many so-called 'safe' water sources may be contaminated through the seepage of wastewater around the outlet, contamination at the source, or contamination during transmission. According to a survey by the Department of Water Supply and Sewerage, 55 percent of tubewells in 20 Terai districts were microbiologically contaminated (DWSS 2002).

Arsenic contamination, which occurs naturally in the groundwater of the Terai, has also been a growing concern in many Terai districts. A recent survey has indicated arsenic contamination even in the Kathmandu Valley. The National Arsenic Steering Committee reported that 15 percent of the 339,515 tube wells have arsenic levels above the WHO standard and 3 percent above the Nepal standard. Even by the Nepal standard, about 300,000 people are using arsenic-contaminated water. By WHO standards, the figure for the number using arsenic-contaminated water is as high as 1.5 million. If bacterial contamination were considered, the population using unsafe water would be far greater (UNICEF 2005). Thus, if the strict definition of access to safe drinking water were applied, Nepal's coverage could be considerably lower.

As for wastewater, thus far, most of the institutional arrangements over wastewater management have been focused in the Kathmandu Valley. The valley's wastewater management infrastructure consists of treatment plants, pump stations, collector mains, and interceptors. Due to inadequate management, most of these plants and equipment are either out of operation or are only partially operational. Four out of the five treatment plants in the valley are out of operation. As a consequence, raw sewage is being discharged directly into water courses polluting them, damaging the environment, and increasing the risk of the spread of disease.

Solid waste makes up 83 percent of the total waste generated in the country, of which agricultural waste is 11 percent and industrial waste 6 percent. Increasingly, solid waste and plastic litter are a visible environmental problem. Urban households generate the most solid waste in the country, at 0.48 kg per capita per day. In 1999, three million urban residents of 58 municipalities generated a total 426,486 tonnes of waste, out of which Kathmandu's share was 29 percent (HMG/ JICA 2004). Medical waste alone in the valley is generated at the rate of 1.7 kg per day per bed, out of which infectious waste is generated at a rate of up 0.48 kg per hospital bed per day. Thus, the valley's estimated 3905 hospital beds generate up to 1,312 kg of infectious waste per day. Most of this waste is either dumped as ordinary garbage or burned in ordinary kilns (ENPHO 2000).

SUPPORTIVE ENVIRONMENT

The aim of the National Water Plan (2002-2017) was to meet the increasing demand for drinking water and for sanitation. According to this plan, by 2017 the entire population will have access to a water supply, of which 27 percent will have medium- to high- quality water supply, while a full 100 percent will have access to sanitation facilities. The plan also addresses urban sewerage and wastewater treatment related to drinking water, as well as sanitation.

The revised Rural Water Supply and Sanitation National Policy 2004 clearly indicates that the government and local bodies will regulate, monitor, and facilitate the implementation of rural water and sanitation plans and programmes. The role of the line agencies is to provide policy guidance and technical back-up while NGOs will assist community user committees in formulating and implementing projects, managing funds, carrying out pilot schemes, and recommending policy and programme modifications.

The PRSP (2002-2007) sees the problem of final disposal as the major challenge in solid waste management, especially in the Kathmandu Valley. It also emphasises infrastructure development as the long-term solution. A major initiative, the Melamchi Water Supply Project, is aimed at meeting the medium-term needs for water supply of the Kathmandu Valley.

The lead agency in the water and sanitation sector is the Department of Water Supply and Sewerage (DWSS) under the Ministry of Physical Planning and Works. The Department directly executes large rural water supply schemes funded directly by the government and the Asian Development Bank (ADB) under the Fourth Rural Water Supply and Sanitation Project. They also execute urban schemes under the ADB-funded Small Town Water Supply Project. The World Bank also funds rural water supply projects through the Rural Water Supply and Sanitation Fund Development Board (RWSSFDB) and more recently it has been playing key role in providing water supply and sanitation services in the rural areas. The Ministries of Health, Education and Local Development are also involved in efforts complementing those of DWSS. Some initiatives include putting the subject of sanitation into secondary school courses and introducing environmental education at the primary level. Grants have also been provided to village development committees for drinking water and sanitation work, resulting in some promising local initiatives (Box 7.3).

DWSS is also the lead agency for sanitation. The National Committee for Sanitation Action (NCSA) coordinates the sanitation activities of the numerous agencies working in the sector, advises on policy and strategic issues, and plans and manages the activities under the National Sanitation Action Week. An example of the collaborative effort promoted by the NCSA to develop a strategy to accelerate latrine coverage is indicated in Box 7.4.

Various HMG/N organisations and institutions are involved in solid waste management (SWM) at the policy and organisational level. The Solid Waste Management and Resource Mobilisation Centre supports the Ministry of Local Development to: (a) develop appropriate legislation; (b) develop environmental guidelines; (c) deal with landfill site development issues; (d) provide financial support wherever appropriate in all aspects of solid waste management; (e) provide technical support to municipalities; (f) enhance the capabilities of municipalities; and (g) act as a link between the ministry and municipal bodies. Local bodies such as the municipalities assume the core operational responsibility of managing solid waste in their own jurisdictions.

CHALLENGES

The increasing demand for water for drinking, industry, and irrigation have outstripped the improvement rates in water supply and sanitation facilities. As a result, major towns and cities in the hills are facing acute shortages. The CBS study (2005) carried out in Kathmandu shows that 59 percent of the surveyed households do not have an adequate water supply from the piped water line, and on average, water is available only four days a week. In many cases, water quality deteriorated due to a lack of treatment plants and poor supply network. There are no proper sewerage networks in the rural areas or even in the municipalities except in core areas of the municipalities in the Kathmandu Valley. Existing as well as newly-emerging towns are likely to face a scarcity in drinking water and sanitation.

Ensuring water quality is also a major challenge in Nepal. As indicated earlier, because of source contamination, even piped drinking water is unsafe in many areas almost throughout the year. Nationally, 30 percent of the households reported incidences of diarrhoea, dysentery, jaundice, and typhoid or cholera. Among children under five years of age, the prevalence of diarrhoea was 20.4 (MoH/New ERA ORC MACRO 2002). Nearly 3 percent of the groundwater supply of drinking water in the Terai is contaminated with unacceptable levels of arsenic and some contamination has been found in groundwater in Kathmandu as well. Even if the water source is not contaminated, drinking water is often contaminated at the household level, for example because unclean con

tamers are used or water becomes contaminated during storage. Improving the management and treatment of drinking water at the household level is an appropriate option for the country.

Kathmandu lacks a planned wastewater management infrastructure. The CBS study (2005) also states that two-thirds of the households in the Kathmandu Valley have access to a sewage facility. Almost all domestic wastewater and industrial wastes are discharged directly into the Bagmati and Bishnumati rivers without treatment throughout the year. Essentially, the rivers are turned into open sewers during the dry season. Sewerage service coverage of these plants is limited, considering the population of Kathmandu, and its operation cost is high and difficult to sustain.

While experience with rural water supply indicates that community participation helps to make drinking water and sanitation initiatives cost effective, the situation in the urban areas has been almost the reverse. The water supply systems in the urban areas have not even been able to recover the costs. In addition, they suffer from both an inefficient distribution system and a high level of leakage.

Sanitation has always been a low priority programme area, never receiving the attention and resources to make any significant improvements, although there are indications this is changing. During the past two to three years the NCSA, under the leadership of DWSS, has been effective in raising awareness about the importance of sanitation and facilitating a collaborative effort among a large number of agencies. Promoting sanitation through schools is an emerging strategy that has the potential to significantly increase coverage. The major challenge is to convince the various agencies to adopt a common approach and allocate adequate resources to reach the MDG targets.

The MDG Needs Assessment Study has identified the intervention packages that would enable the fulfilment of the MDG. The study estimated a resource gap of Rs. 137.398 billion (US $1962.83 million) in investment from 2005 to 2015 for drinking water and sanitation. It is certain that drinking water will require the largest amount of resources. At the same time, the stress will have to be not only on increasing coverage but also on improving the quality of coverage. The solid waste management and sanitation sub-sector has not received adequate attention, in resources and institutional reforms, as it is overshadowed by the needs of water supply.____________________________________

¹¹"An improved water source" means piped water, tube wells, well, hand pump, borehole, dug wells or natural springs.