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Thumbnail Image: Tina Schoolmeester via GRID-Ar
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This case study is part of a series to highlight project components that have enabled GPRBA to successfully deploy results-based finance (RBF) approaches for the provision of basic services to low-income communities, with efficiency, transparency and accountability. This analysis focuses on the Nepal Output-Based Aid Solid Waste Management (SWM) project. The project's objective was to improve access to high-quality and financially sustainable SWM services in five selected secondary cities in Nepal.

Output-Based Aid for Solid Waste Management in Nepal (2.96 MB)
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Overview

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GPOBA supported the design and implementation of the $150 million Nepal Urban Governance and Infrastructure Project (NUGIP). The activity conducted an operational deep-dive assessment and addressed opportunities for establishing results-based approaches.

This TA would: 

1) diagnose at operational level the institutional and policy challenges to deliver solid waste management services;

2) propose service improvement plans

3) assess infrastructure investment needs for SWM, and

4) Identify opportunities for strengthening accountability in policy development and financing through results-based approaches.

In 2013, GPRBA developed a successful subsidy pilot program in Nepal that utilized performance-based grants to improve service delivery and financial sustainability in five municipalities. 

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This was a joint World Bank-IFC initiative to scale up off-grid household renewable energy access in rural Nepal.  The objectives of the initiative were:
  Recommend  technical assistance and  investment options for scaling up rural mini-/ micro-hydropower;
  Recommend options for scaling up renewable technologies (PV, biogas, biomass cook stoves, improved water mills), and the role of OBA/RBF instruments;
  Recommend opportunities for micro-finance institutions,  financial  intermediaries  and  the private sector;
  Outline the World Bank Group prospects for support  to  the  Government's  recent  National Rural  Renewable  Energy  Program  and  Central Renewable Energy Fund.

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Responding to the request of Government of Nepal, the Bank and GPOBA support the Government in preparing a municipal Solid Waste Management (SWM) OBA program within a broader SWM sector support.

The deliverables have been prepared as planned. This TA activity developed standard contractual arrangements for private SWM operators to participate in the 2nd batch of municipalities, whereas in the 1st  batch of municipalities, SWM operators were public. During the upcoming World Bank / GPOBA Midterm Review mission for the W3 SWM OBA Program planned for March 2016, the 2nd batch municipalities and private / NGOs operators from the SWM sector will discuss the implementation of these contractual arrangements.

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This TA will support the National Vigilance Center (NVC) which serves as the Government of Nepal’s IVA for civil works. The TA aims at improving NVC’s verification capabilities for the IDA Strengthening the National Rural Transport Program (SNRTP, $100 million). SNRTP will pay for the direct costs of technical audits. The TA will support technical training and accreditation in partnership with a Nepalese university and the Nepal Engineering Council (component A) as well as the implementation of three initial rounds of technical audits (component B). 

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In 2013, GPRBA has developed a successful pilot program in Nepal under Window 3 that utilized performance-based grants to improve service delivery and financial sustainability in five municipalities. It builds on the success of previous GPRBA support to Nepal’s MSW sector and seeks to expand the scope of the GPOBA model, taking a comprehensive end-to-end service delivery approach that will also address institutional barriers at the local level. 

This activity conducts a deep-dive assessment of municipal solid-waste (MSW) systems for urban local governments, including identifying opportunities for establishing results-based approaches in Nepal. The activity will support the Nepal Urban Governance and Infrastructure Project (NUGIP), a $150-million lending program. It builds on the success of previous GPRBA support to Nepal’s MSW subsector and seeks to expand the scope of the GPOBA model, taking a comprehensive end-to-end service delivery approach that will also address institutional barriers at the local level.

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By 2050, it is estimated that nearly half the world’s population will reside in cities. Bulging population in cities coupled with their rising income levels has led to an increase in the amount of waste generated by these urban centers. Cities and towns across the globe today face acute challenges in managing their waste in terms of its efficient collection, transportation and scientific disposal. Moreover, they need to comply with the prevalent environment standards and negate any adverse impact on general public health and environment.

City-level Assessment and Draft Service Improvement Plan for Solid Waste Management For Itahari Sub-Metropolitan City (5.87 MB)
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The project was implemented in five municipalities -- Dhankuta, Ghorahi, Lalitpur, Pokhara, and Tansen -- which met certain operating and maintenance requirements. The project aimed to build upon the municipalities’ existing systems and make them more sustainable, rather than developing new systems. The main central government counterparts included the Town Development Fund (TDF) and the Solid Waste Management Technical Support Centre (SWMTSC) within the Ministry of Urban Development (MoUD) which acted as the technical implementing partner.

Output-Based Aid for Municipal Solid Waste Management in Nepal (599.96 KB)
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This webinar will explore GPOBA’s Nepal Solid Waste project. With rapid urbanization, population growth, and new economic activity, municipal solid waste is increasing at alarming rates, and is expected to almost triple in low and lower middle income countries by 2025. At the same time, solid waste management (SWM) systems in most developing countries are underfunded and suffer from lack of planning. Improving SWM requires intervention all along the supply chain. GPOBA’s SWM project in Nepal was created to expand SWM services in five municipalities.