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The proposed SSTA will support the processing of the Bagmati additional financing.

The BRBIP-AF aims to provide additional funds to (i) complete unfinished works under BRBIP output 2 and (ii) undertake additional works including (a) improving the environment of 4.2 km of riverbank in Kathmandu urban area, and (b) augmenting water availability in the upper Bagmati River basin during the dry season by 1,400 liters per second through the construction of the 8 million m3 water storage Nagmati dam upstream of the Kathmandu Valley and construction of four DEWATS. Riverbank environment improvement includes the construction of additional regulators and beautification of riverbanks through river training, landscaping, and restoration of cultural heritage buildings located along the bank of the river. The expected outcome will be to achieve the bathing standard at Pashupatinath Holy Temple on a perennial basis and improve water quality downstream of the temple.

The TA was requested by the Government of Nepal during the 2017 country programming mission to support the preparation of the Bagmati River Basin Improvement Project-

Additional Financing (BRBIP-AF). Consequently, the TA was included in the proposed country operations business plan (COBP), 20182020 for Nepal. The BRBIP-AF is listed in COBP, 20172019 for Nepal for Board consideration in 2018 (standby).

The need for additional financing was anticipated during the BRBIP project design. The feasibility studies and detailed designs for all BRBIP-AF civil works are financed under the ongoing BRBIP. The Nagmati dam feasibility study was completed in January 2017 and detailed designs and tender documents will be completed in August 2017. The river corridor beautification and decentralized wastewater treatment systems (DEWATS) feasibility studies were completed in May 2017 and detailed design and tender documents are expected to be finalized by September 2017. The TA is required to ensure that the BRBIP-AF meets ADB due diligence requirements and international standards for cultural heritages restoration works. The consultants will support the ADB project team in preparing loan documentation and help the executing agency in meeting project readiness criteria. The TA is required urgently as the feasibility studies for BRBIP-AF are completed and detailed designs are already ongoing. A small-scale technical assistance is sufficient as most of the additional financing project preparation costs are financed under BRBIP.