The Kathmandu Valley Water Supply Improvement Project (Phase 2) is an active project in Nepal, with the project number 45339-002. It is supported by a grant and a loan. The funding sources include:

• Grant 0992-NEP from the Asian Development Fund for US$ 15.00 million.
• Grant 9246-NEP from the Japan Fund for Prosperous and Resilient Asia and the Pacific for US$ 3.00 million.
• Loan 4534-NEP from concessional ordinary capital resources lending for US$ 170.00 million. Additionally, Technical Assistance Special Fund contributes US$ 1.75 million.

The project is a continuation of an ongoing partnership between the Asian Development Bank (ADB) and the Government of Nepal to support the water and urban infrastructure services sector. The government has prioritized improving Kathmandu Valley's water security and has implemented infrastructure development and reform programs in phases since 2001, with ADB as the main development partner.

The project aims to ensure drinking water security in the Kathmandu Valley and provide access to safe, sustainable, resilient, and inclusive water supply services to 2 million people.

The project's scope includes:

• Constructing climate- and disaster-resilient urban water supply infrastructure.
• Strengthening systems to improve the efficiency, sustainability, and resilience of water supply services.
• Enhancing the capacity of urban water supply institutions and stakeholders.

Previous interventions, such as the Melamchi Water Supply Project, focused on enhancing service delivery to about 1 million people by:

• Building the Melamchi River water diversion system (MRWDS) for inter-basin transfer of 170 MLD of water using an intake and a 26-kilometer tunnel.
• Augmenting water treatment and clear water transmission facilities.
• Improving over 1,000 km of the water supply distribution network in the Kathmandu Valley's core area.

The geographical location for the current project is Kathmandu Valley.