Investment Board Nepal (IBN) and Nepwaste will likely sign a project development agreement (PDA) for the management of solid waste in the Kathmandu Valley by the end of this week.

PDA negotiations between the two are at the final stages, said a reliable source at IBN. The only item remaining to be discussed is the site for the construction of a processing and refining centre.

Nepali-Finnish joint venture Nepwaste will be implementing Package Number 1 of the Kathmandu Valley Integrated Solid Waste Management Project which includes solid waste management of Kathmandu metropolis and neighbouring village councils.

According to the highly placed source at IBN, the project developer wants to build the processing and recycling unit at Teku while

IBN thinks that such facilities should be built on a landfill site. Both parties have agreed to have the landfill site at Banchare Danda in Nuwakot district.  

“The developer wants to build such units inside the Valley as it will mean less waste being transported to the landfill site thereby reducing operation costs,” said the source. “IBN, however, is concerned over the environmental impact of establishing such units in the heart of the city.”

Apart from this point, the two parties have agreed on the major issues to be included in the PDA.

The project developer has also agreed to manage the existing workforce of Kathmandu Metropolitan City, Lalitpur Sub-Metropolitan City and other private contractors engaged in solid waste management.

Before giving conditional approval to a detailed project report presented by Nepwaste, IBN had asked the project developer to come up with plans to integrate the existing workers of government bodies and private operators involved in solid waste management. The integration of the existing workforce is considered to be one of the key challenges in making the project successful as a large number of employees might disrupt the project if they lose their jobs.

Similarly, Nepwaste has agreed to segregate biodegradable and non-biodegradable wastes at the source after undertaking the project. The project developer has also said that the waste collection charge levied on households will not be increased from the current rate.

“The tariff will be fixed within a couple of days,” said the source.

Another condition put forth by IBN relates to right to ownership over valuables found in the trash. According to IBN, the government should have ownership to valuables found in the waste, and the developer has agreed to this condition. 

After the PDA is signed with Nepwaste, the board will start PDA negotiations with Clean Valley Company which will undertake waste management in Lalitpur, Kirtipur, Bhaktapur, Madhyapur Thimi and neighbouring VDCs under Package Numbers 2 and 3 of the project.